Powell’s Fed Message, Inflation Threat, BOJ Flexibility: Eco Day

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

  • Jerome Powell has a goal that is bigger than the bond market’s near term inflation concern
    • American restaurants and salons are set for a big hiring boom as the economy reopens and warmer weather supports services demand
    • Nobel Laureate economist Paul Krugman rejected the threat of inflation getting out of control -- like it did in the 1970s -- as a result of President Joe Biden’s $1.9 trillion pandemic-relief bill
  • The world’s longest-lasting negative-rate regime is getting a revamp as Denmark’s central bank will switch from operating one negative interest rate to three by the end of this week
  • U.K. government borrowing totaled 19.1 billion pounds ($26.6 billion) in February, reflecting the cost of supporting the economy through a third lockdown to fight the coronavirus
    • Households are more confident than at any time since the pandemic began, buoyed by the rapid rollout of vaccinations and government plans to unwind coronavirus restrictions
  • The Bank of Japan unveiled a set of carefully crafted policy tweaks aimed at giving itself more flexibility to keep up its long quest to revive inflation
  • Russia’s central bank delivered a surprise rate hike, joining emerging market peers Brazil and Turkey

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