U.S. Inflection Point, Digital Dollar, Inflation Math: Eco Day

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

  • Fed Chair Jerome Powell said the U.S. economy is at an “inflection point” with stronger growth and hiring ahead thanks to rising vaccinations and powerful policy support, but Covid-19 remains a threat
    • Take a look at Bloomberg Economics’ high-frequency dashboard for more on the U.S. economy
    • Powell also said the central bank is involved in a large-scale research and development project on the digital dollar, and that questions of whether adopting such a currency would provide a public benefit have yet to be resolved. Meanwhile, the Biden administration is stepping up scrutiny of China’s plans for a digital yuan
  • No economic question is being debated more hotly right now than whether the U.S. will see a sharp rise in inflation. But the answer for the next few months is simple: Yes
  • Top Biden administration officials will hear today from companies vying with each other for a sharply constrained global supply of semiconductors, as the White House tries to figure out how to relieve a shortage that’s idled automakers worldwide
  • A wealth tax is a bad way to pay off pandemic debts and probably would become permanent if introduced, Nobel Prize-winning economist Angus Deaton said
  • Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers
    • Ship congestion outside the busiest U.S. gateway for trade with Asia persisted over the past week as imports surged through March, usually one of the slower months of the year for container volumes
  • Finally, here’s what to be on the lookout for in the world economy this week

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