Infrastructure Boost, Fed Testimony, Cuban Doctors: Eco Day

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

• The Trump administration is preparing a nearly $1 trillion infrastructure proposal as part of its push to spur the U.S. economy back to life, according to people familiar with the plan. The preliminary version focuses on providing money for traditional infrastructure work, like roads and bridges, but would also set aside funds for 5G wireless infrastructure and rural broadband
• Jerome Powell’s dramatic bid to insert the Federal Reserve into protecting private companies from the fallout of the coronavirus is finally underway, but the central bank is nervous about managing the long-term risk
  • Powell testifies before Congress from 10 a.m. today
• Colombia is ditching its fiscal deficit targets until 2022 as it grapples with the deepest slump in its history. Meanwhile, Cuba is exporting doctors to virus-ravaged nations to make up for lost tourism revenue and pay for essentials
• Some of Argentina’s largest creditors presented a new debt proposal to the government over the weekend as the two sides edge closer to a $65 billion restructuring deal, according to people familiar with the matter
• In the U.K., jobless claims more than doubled to almost 3 million during the virus lockdown, adding urgency to the Bank of England and government’s efforts to cushion the blow
  • Bloomberg Economics sees a significant risk of a second wave of redundancies between August and October as the U.K. government’s furlough program is wound down
• Households and financial markets don’t always have the same understanding of how inflation will evolve. Who’s right will matter hugely for the European Central Bank as it plans its next move to cope with the deepest downturn in decades
• The Bank of Japan increased its lending support aimed at struggling companies while leaving its main monetary policy settings untouched

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