Inflation Thumbs-Up, Trade Talks, Stimulus Hints: Eco Day

(Bloomberg) -- Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start your Wednesday:

• The $20 trillion U.S. Treasury market is giving the Federal Reserve a thumbs-up for its efforts to revive inflation after the coronavirus pandemic threatened to inflict a damaging bout of deflation on the U.S. economy

  • The Fed releases minutes to its July 28-29 FOMC meeting today -- here’s what to expect
• President Donald Trump said he called off last weekend’s trade talks with China, raising questions about the future of a trade deal that is now the most stable point in an increasingly tense relationship
• Democratic and Republican leaders are hinting that they are looking for a path toward reviving stalled negotiations on the next round of pandemic relief for the U.S. economy, even as both sides remain far from any deal.
• Chile’s economy minister said the country has left behind the worst of its recession, as activity starts to recover from its largest contraction on record in the second quarter
• Canada’s Justin Trudeau named Chrystia Freeland as the new finance minister, suspended all parliamentary business, and promised to return next month with an “ambitious” new spending plan to help drive the recovery
• U.K. inflation accelerated to the fastest in four months in July, an unexpected jump that’s unlikely to last or persuade the Bank of England to ease off the stimulus pedal.
• A Bloomberg Economics analysis finds Asia leading other emerging economies in getting back to pre-virus norms, while Latin America is struggling to contain the pandemic.

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