U.S. Job Woes, Powell in Jackson Hole, WTO Revamp: Eco Day

Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help take you through to the weekend.

  • Federal Reserve Chairman Jerome Powell will deliver a speech at next week’s annual Jackson Hole symposium on the central bank’s long-awaited monetary policy framework review, which has focused on a new inflation strategy
  • The U.S Internal Revenue Service projects that lower levels of employment in the U.S. could persist for years
    • Bloomberg Economics estimates as many as 18 million parents in the U.S. could put job seeking on hold, creating a stumbling block for the labor market recovery
  • America’s top trade official, Robert Lighthizer, laid out his vision for overhauling the World Trade Organization, which is confronting the most challenging period in its 25-year existence with a looming leadership void and the virtual paralysis of its core functions
    • A stuttering recovery in global trade could hinge on whether the electronics industry rebound survives through U.S. bans on Chinese technology and a waning of the home-office equipment splurge
  • Canada announced that it will extend the emergency income support for another four weeks, beef up an employment insurance plan and introduce new programs in an effort to keep stimulus flowing into the economy
  • Argentina’s economy continued to show early signs of recovery in June after a strict Covid-19 lockdown brought commerce to a dramatic halt
  • The European Union and U.K. raised serious doubts about the chances of striking a deal on their future relationship after a testy week of negotiations that saw little progress
  • The euro-area economy unexpectedly lost momentum this month after a resurgence of coronavirus cases forced new restrictions
  • U.K. government debt passed 2 trillion pounds ($2.6 trillion) for the first time, a milestone that will stoke the debate over how Chancellor of the Exchequer Rishi Sunak should finance his unprecedented support for the pandemic-ravaged economy

©2020 Bloomberg L.P.

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