Fed’s Bind, Defenders Against Socialism, Canada Budget: Eco Day

(Bloomberg) -- Follow the latest global economic news and analysis @economics.

Welcome to Tuesday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:

  • Federal Reserve officials say they’re willing to tolerate an overshoot of their inflation goal. If the opposite happens, the plan is less clear
    • In Bloomberg Economics’ view, the Fed isn’t done raising rates. As investors catch up to that reality, emerging markets could face renewed pressure from capital outflows. Here’s a look at who’s the most vulnerable
  • The Trump administration lambasted socialism and the Democrats’ Medicare for All proposal while extolling the benefits of capitalism and its own tax cuts in the annual “Economic Report of the President”
  • Canada’s next budget will look very familiar, with Justin Trudeau set to spend much of a revenue windfall and continued red ink in his government’s books
  • The U.K. labor market remained in robust health in the three months through January, despite a Brexit-induced slowdown in the overall economy.
    • That jobs data is becoming a challenge for the Bank of England’s more dovish outlook, according to Bloomberg Economics
  • Investor confidence in Germany’s growth outlook improved for a fifth straight month as global risks subsided
    • Still, the government’s independent council of economic advisers slashed its forecast for this year
  • Norway and Switzerland both hold rate decisions this week. Norway is set to raise interest rates, while Switzerland is predicted to hold
  • Finally, the latest OECD study shows that the people of the world’s richest economies are anxious about everything from money and taxes, to healthcare to pensions -- and they’ve little faith in their governments to do anything about it

©2019 Bloomberg L.P.