Trade Resolution, Racial Job Gaps, Steeper Rate Path: Eco Day

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

• Inflation is jeopardizing the Federal Reserve’s goal for inclusive employment
  • One-year U.S. inflation expectations surged to a record high in November, highlighting for Bloomberg Economics why the Fed will probably signal a steeper path of rate rises in 2022 at this week’s meeting
• The U.S. made an offer to Japan aimed at resolving disputes tariffs imposed on Japanese steel and aluminum in 2018 under former President Donald Trump, people familiar with the situation said
• President Joe Biden’s top labor lawyer says she wants more injunctions against bosses and that many gig workers are misclassified as independent contractors
• Chile’s central bank will likely raise its key interest rate by 125 basis points for the second straight meeting as robust consumer demand fuels price increases and drives inflation forecasts further above target
• The U.K.’s hot jobs market means the Bank of England can’t delay increasing interest rates for long, Bloomberg Economics says
• Hungary will probably end its quantitative-easing program on Tuesday, raise interest rates and sharply increase its inflation forecast in a precursor to pushing borrowing costs even higher next year
• China should cut rates and boost infrastructure investment to ensure the economy grows by at least 5% in 2022, according to an influential local think-tank
  • China’s new rules on food imports will take effect Jan. 1, despite appeals from trading partners including the U.S. and Europe to delay the rollout

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