Powell Testimony, Brazil Central Bank Chief, U.S. Farms: Eco Day

(Bloomberg) -- Welcome to Tuesday, Americas. Here’s the latest news and analysis from Bloomberg Economics to get your day started:

  • Federal Reserve Chairman Jerome Powell will probably gloss over an emerging division among policy makers about what it will take for them to resume raising interest rates when he speaks to lawmakers on Tuesday
    • Fed Chairman Richard Clarida said that when rates on shorter-dated bonds move above rates on longer-dated bonds, it can be a signal that an economic slowdown is coming
    • Powell’s predecessor, Janet Yellen, says the U.S. economy “is doing well” and President Donald Trump doesn’t understand the central bank
  • Roberto Campos Neto’s Senate confirmation hearing should finally reveal what the nominee for the central bank’s presidency thinks about interest rates, inflation, and Brazil’s stockpile of international reserves
  • Trump’s attack on the World Trade Organization has U.S. farmers worried that the president’s ‘America first’ foreign policy approach will hamstring efforts to defend their interests
  • The European Central Bank’s current policy is sufficient to respond to a limited adjustment in the economic outlook, according to Executive Board candidate Philip Lane
    • Here’s some counterintuitive advice for the ECB on how to respond to the euro area’s slowdown: raise interest rates
  • The Bank of England stepped up its defenses against a disruptive Brexit, offering lenders extra liquidity provisions over the period covering the U.K.’s withdrawal
  • It’s rate decision day in Hungary, here’s what to expect

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