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Fed’s Continuity, Supply Chains Gone Wrong, Inflation: Eco Day

Fed’s Continuity, Supply Chains Gone Wrong, Inflation: Eco Day

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

  • President Joe Biden gave the Fed’s autonomy a boost by renominating Republican Jerome Powell as chair
    • Powell’s renomination means policy continuity and analysts see an increased likelihood of the Fed announcing an acceleration of the taper pace in December
    • Powell faces a plethora of politically tricky economic problems with little precedent in the Fed’s 107-year history
    • Lael Brainard, picked to be vice chair of the Fed, gives Biden a jobs ally alongside inflation hawks
  • These choke points are keeping the global supply chain stuck
  • ECB officials urged an end to emergency stimulus, highlighting inflation risks while insisting recovery can weather new pandemic restrictions
  • Inflation shocks are spreading pain around the world, but nowhere is it as bad as in Latin America
    • Mexico’s inflation is expected to reach 7% in December
    • Paraguay’s central bank lifted its key interest rate to 4% as it seeks to combat inflation spillover to the broader economy
  • Chile’s bonds jumped as the first round of presidential elections halted a two-year shift among voters to the political left
  • The number of Canadians searching for work surged last month -- just as pandemic-related support programs were wound down

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