U.S. Supply Chains, Anti-China Bill, Mental Health Test: Eco Day

Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.

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

  • President Joe Biden released a multi-pronged strategy to secure critical supply chains in products ranging from medicines to microchips, and is also weighing a potential trade probe that could result in U.S. tariffs on certain magnet imports, officials said

    • White House advisers are counting on Biden’s personal touch with Congress -- including chummy calls with lawmakers -- to win over skeptics in both parties
  • The U.S. Senate is nearing the finish line for a package of legislation totaling well over $200 billion that’s designed to strengthen U.S. competitiveness against a rising China, with a vote as early as Tuesday
  • More U.S. small businesses than at any time since the 1980s said in May they raised prices, stoking inflationary concerns as surging materials costs and rising wages drive up costs

    • Though free from U.S. taxes, almost a dozen states regard PPP loans as taxable income or bar deductions related to them -- or both
  • A surge in mortgage borrowing is pushing consumer debt loads higher in Canada despite falling credit card use, as households plow more money into their homes while spending less on everything else
  • European Central Bank policy makers have all the evidence they need to keep in place their ultra-loose monetary stimulus when they meet on Thursday, thanks in part to their opposite numbers at the Federal Reserve
    • Bloomberg Economics expects the Fed to begin tapering in early 2022, following an early-warning signal in the second half of this year, potentially at the Jackson Hole Economic Symposium in August
  • Governments are falling short in most areas where they could tackle mental health difficulties that sharply increased in the Covid-19 pandemic and already place a huge burden on economies around the world, the OECD said

©2021 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.