U.S. Manufacturing Jobs, Fed Lending, Trudeau Tax Aid: Eco Day

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

  • Joe Biden began his presidency much as his predecessor did, promising to restore hope to a blue-collar middle class battered by decades of relentless job losses from automation and foreign competition. But the realities of trying to stoke U.S. manufacturing employment in the wake of an economic crisis are quickly endangering his plans
    • The first House committee has advanced its portion of the $1.9 trillion stimulus bill, with the Education and Labor Committee overnight giving its stamp of approval to a minimum wage increase coupled with funds for school reopenings and new Covid-related labor standards
    • Biden’s stimulus proposal would boost growth and ease hardship. But with enormous slack still in the economy, any suspension of the law of gravity keeping inflation pinned to the floor would be temporary
    • The Federal Reserve’s Main Street Lending Program, which was designed to provide emergency support to mid-size U.S. companies during the pandemic, lent out a total $17.5 billion -- or just 3% of its potential capacity
    • U.S. inflation data for January is due today and Fed Chair Jerome Powell is speaking in New York
  • Canada’s Prime Minister Justin Trudeau announced tax relief for beneficiaries of coronavirus-related income support, temporarily clearing a potential economic and political minefield for his government
  • Colombia plans to raise taxes and cut spending to reassure investors that the country is serious about getting its finances back on a sustainable path, deputy Finance Minister Juan Alberto Londono said
  • Mario Draghi’s yet-to-be fulfilled leadership of Italy’s next government is keeping people guessing about how much he will draw upon his prior career roles when in office
  • China’s producer prices gained for the first time in a year in January while core consumer prices posted the first decline in a more than a decade, highlighting the economy’s unbalanced recovery
  • Vladimir Putin’s hopes of getting his economy growing again quickly are likely to be dashed by Russia’s shrinking workforce

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