Fed Support, Tax Cut Impact, Shrinking Cash Cushions: Eco Day

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

  • Federal Reserve Chair Jerome Powell and his colleagues, facing an economy slowing as the Covid-19 outbreak worsens, are considering whether to alter their asset purchase program to provide more support
  • Tax cuts for rich people breed inequality without providing much of a boon to anyone else, according to a study that could add to the case for the wealthy to bear more of the cost of the pandemic
  • Americans’ cash cushions have been declining for months, most acutely among low-income households, underscoring the already-precarious financial situation of millions
  • Fannie Mae and Freddie Mac plunged Tuesday after Treasury Secretary Steven Mnuchin said he’s all but ruled out letting them exit U.S. control before he steps down
  • Bank of Canada Governor Tiff Macklem warned the nation’s economy could temporarily shrink again amid a second wave of virus cases
  • Some risks aren’t going away any time soon for emerging markets, irrespective of the overwhelming view among investors and strategists that 2021 will be a year of continued recovery

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