U.S. Stimulus, World Cash Cushion, Toronto House Prices: Eco Day

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

  • President Joe Biden’s imperative of swiftly passing his $1.9 trillion pandemic-relief program faces one of its final hurdles: settling disputes among Senate Democrats over how to ensure aid gets to those who truly need it
    • At least one important slice of the package -- the nearly $200 billion being earmarked to state governments -- goes beyond a rescue and is almost certain to further stimulate an economy that is already beginning to rapidly recover
  • Consumers in the world’s largest economies amassed $2.9 trillion in extra savings during Covid-related lockdowns, a vast cash hoard that creates the potential for a powerful recovery from the pandemic recession
  • Justin Trudeau was more committed to borrowing his way out of the Covid-19 crisis last year than almost any other leader in the developed world. That cushioned the blow of the pandemic, but raises some hard questions about what Canada got for all that spending
    • The average price of a home sold in Toronto breached C$1 million for the first time in February, with gains accelerating in the suburbs around Canada’s largest city
  • Chile’s constitutional rewrite will make room for several more decades of steady rules, ensuring social peace and investor interest in what has historically been one of Latin America’s most stable economies, according to the nation’s finance minister
  • Bloomberg Economics’ model suggests the main driver for bond market volatility is expectations of a more robust U.S. recovery
    • A string of poorly-received bond auctions in the past week is driving home a message -- the Treasuries-led global rout is leaving investors scarred and governments staring at higher borrowing costs
    • European Central Bank policy makers see no need for drastic action to combat rising bond yields, believing the risk to the economy is manageable with verbal interventions and the flexibility of their bond-buying program, according to officials familiar with internal discussions
  • Here’s a guide to China’s biggest political meeting of 2021
  • It’s U.K. budget day -- follow our TOPLive blog

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