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Fed’s Reluctance, New Stimulus Stalemate, IMF Loans: Eco Day

Fed’s Reluctance, New Stimulus Stalemate, IMF Loans: Eco Day

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

  • U.S. central bankers are reluctant to fire the next bullet in their policy arsenal, despite uncertain progress in Washington on more fiscal stimulus that they say is vital to support the economic recovery
  • President Donald Trump’s attempt to jolt negotiations on a new economic stimulus plan has left talks at a familiar stalemate with Republicans and well as Democrats balking at his latest offer
  • International negotiations on new tax rules for the digital age will fail to conclude this year, raising the risk of a transatlantic trade conflict and a proliferation of contentious national levies on global tech giants
  • The guardians of the global economy will gather this week under the cloud of the worst recession since the Great Depression, and a recovery dependent on scientists finding a coronavirus vaccine -- read our full week ahead here
    • The world economy pushes into the fourth quarter with hopes for a rapid recovery from the virus shock effectively gone, according to the latest Bloomberg Economics forecast
  • The vast majority of International Monetary Fund loans extended during the Covid-19 pandemic have suggested or demanded spending cuts that would worsen poverty and inequality, charity group Oxfam says
  • The 2020 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded to Paul R. Milgrom and Robert B. Wilson “for improvements to auction theory and inventions of new auction formats”
  • The Bank of Japan’s escalating presence in almost every corner of the nation’s financial markets threatens to further distort activity and complicate any future pulling back from stimulus

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