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This Article is From Feb 01, 2022

Fed Signals, Europe Inflation Woes, RBA’s QE Exit: Eco Day

Fed Signals, Europe Inflation Woes, RBA’s QE Exit: Eco Day

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

  • Federal Reserve officials said they want to avoid unnecessarily disrupting the U.S. economy as they prepare to start raising interest rates
    • Markets may be wrong to think Jerome Powell's hawkish comments signal an admission by the Fed it's behind the curve -- and that might be exactly what Powell wanted, Bloomberg Economics writes
    • U.S. rent inflation may add to the impetus at the Federal Reserve for higher interest rates, though the inflation cure could backfire
  • Americans across income groups succeeded in recouping earnings lost to Covid-19 in 2021, though gains for the poorest may be short-lived
  • Argentina's tentative agreement with the International Monetary Fund suffered an early setback Monday when the ruling coalition's leader in the lower house resigned in protest over the deal announced by the government last week
  • European markets are awash in hawkish enthusiasm, as traders bet on the fastest pace of policy tightening in more than a decade

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