Powell’s Message, Inflation Surge, Policy Divergence: Eco Day
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Welcome to Thursday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:
- Federal Reserve Chair Jerome Powell reinforced his message that the U.S. central bank would keep inflation in check
- Federal Reserve Bank of Cleveland President Loretta Mester said she is “very open” to scaling back the Fed’s asset purchases at a faster pace so it can raise interest rates a couple of times next year if needed
- President Joe Biden said his administration’s work has begun to alleviate supply-chain disruptions and that higher inflation is a “natural byproduct” of the global economy’s recovery from the pandemic
- Biden is considering Atlanta Fed President Raphael Bostic and Duke University law professor Sarah Bloom Raskin to be the Fed’s top banking regulator
- Banxico’s nominee Victoria Rodriguez Ceja defended her track-record and experience to lead the Mexican central bank after opposition senators questioned her competence for the job
- Meanwhile, the Banxico raised its growth forecast for next year and kept its inflation prediction far above target
- Inflation in the OECD area surged in October to its highest rate in almost a quarter of a century
- Monetary policies in the U.S. and China are set to take diverging paths in 2022, according to Bloomberg Economics
- In the U.K., the emergence of the omicron variant may add enough uncertainty to the outlook to delay a widely-anticipated interest rate rise this month
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