Stimulus Boost, Canada Rate, U.S. Tax Code’s Race Bias: Eco Day

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

  • The House is poised to send the $1.9 trillion Covid-19 relief plan to President Joe Biden for his signature, providing an economic boost that will last long after $1,400 stimulus checks start arriving in Americans’ accounts this month.
    • Biden’s soon-to-be-unveiled longer-term economic stimulus package is set for far tougher obstacles in Congress than the pandemic-relief bill that’s on the verge of squeaking through
  • The Bank of Canada could soon start pulling back stimulus, with the first clues on its next moves coming as early as today
  • Mexico has run one of the world’s most austere budgets through the Covid-19 crisis, declining to borrow extra money as the economy slumped. The stimulus that prevented an even deeper recession, and is set to drive a rebound this year, is coming from the U.S. instead
  • The rate the Federal Reserve targets to control monetary policy is defying the skeptics by holding firmly above zero, prompting a rethink from those who thought the central bank might need to step in and tinker with the front end
  • Generations of White lawmakers have optimized the tax code for White Americans. The result? Black Americans end up paying more than White Americans with the same incomes

  • After a strong pickup in February, most major advanced economies made a lackluster start to March, according to Bloomberg Economics gauges
  • European Central Bank officials are taking a leaf from former President Mario Draghi’s playbook as they ask if recent market moves amount to “unwarranted tightening” that requires action
  • Friction at the U.K. border is rising again following Brexit as shipping companies rejected more cargoes due to cross the English Channel from France
  • China’s producer prices rose at the fastest pace in more than two years in February, while inflation strengthened, with consumer price declines slowing and producer price gains accelerating

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