U.S. Wealth Gaps, Yellen on Inflation, Sold-Out Ships: Eco Day

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

  • President Joe Biden’s promise to start narrowing income and wealth gaps underpins every part of his economic program, from almost $4 trillion in spending plans to the biggest tax increase in a generation
    • Biden’s vision of remaking the federal government’s role in the U.S. economy is now in the hands of Congress, where both parties see a higher chance of at least some compromise than for the administration’s pandemic-relief bill
    • The administration’s economic plan is unlikely to create inflation pressure because the boost to demand will be spread over a decade, said Treasury Secretary Janet Yellen
  • Warren Buffett delivered a clear verdict on the state of the U.S. economy as it emerges from the pandemic: red hot
    • High-frequency indicators point to the U.S. economy ramping up. Jobless claims continued to trend lower, consumer sentiment has strengthened and spending has accelerated
  • Companies are hiring and unemployment is falling across most advanced economies on hopes that vaccines will eventually contain the Coronavirus. But not every job is coming back
  • Container shipping rates are heading higher again, driven to new heights by unrelenting consumer demand and company restocking from Europe to the U.S. that are exhausting the world economy’s capacity to move goods across oceans
  • Europe’s economy is finally turning the corner from its worst crisis in the postwar period after a devastating double-dip recession
    • Euro-area manufacturers are battling unprecedented delays in securing raw materials and parts, leading to a record build-up of uncompleted orders and rising prices
  • Finally, here’s what’s to look out for in the world economy this week

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