U.S. Budget, Small Firms Jobs Debate, Canada Recovery: Eco Day

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

  • President Joe Biden’s budget, which is set to be released today, will increase federal spending to $6 trillion in the coming fiscal year, rising to $8.2 trillion by 2031, according to documents cited by the New York Times
    • While the document is mostly aspirational, it will give a clear picture of the president’s ambitions to boost the size and scope of the federal government. The budget sees unemployment holding below 4% for most of the next decade, and inflation remaining stable
    • Biden’s push for the first major federal tax hike since 1993 rests on the shoulders of Richard Neal, the House Ways and Means chairman
  • As the U.S. government’s sprawling Paycheck Protection Program officially wraps up, economists are debating how many jobs it saved
  • Secretary of Commerce Gina Raimondo said administration spending plans are focused on boosting U.S. competitiveness with China
    • An influential Chinese trade blog says U.S. trade talks are off to a good start and calls for more communication
  • U.S. Treasury Secretary Janet Yellen said above-normal inflation is likely to persist through the end of the year before fading, a longer period than officials had previously indicated
    • Yellen is among G-7 finance ministers and central bankers holding a virtual meeting today ahead of their face-to-face gathering in London next week
  • Evanston, Illinois, has begun a 10-year, $10 million reparations program to pay down its debt to Black residents, starting with housing
  • The Canadian Finance Minister Chrystia Freedland is drawing on lessons from her journalism career to repair the pandemic’s economic damage
  • Economists and investors increasingly expect the European Central Bank to extend the elevated pace of its emergency bond-buying at its next meeting, despite a likely economic rebound
  • The Bank of Japan will consider climate change in its monetary policy discussions, Governor Haruhiko Kuroda said
  • Gold stored at the Bank of England has been selling for unusually high premiums recently, signaling that central banks may be back in the market buying

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