Savior-Villain Fed, Global Factory Slump, Trade Truce: Eco Day

(Bloomberg) --

Happy Monday, Americas. Here's the latest news and analysis from Bloomberg Economics to help get your day and week started:

• The Federal Reserve, believed to have killed some past economic expansions, is being relied upon to save the record-long current one
  • Vice Chairman Richard Clarida said many U.S. central bankers see a stronger case for easier monetary policy relative to just two months ago
• Markets celebrated a weekend thawing of Trump-Xi relations, but that hasn't won over economists, and probably won't reverse bets on a Fed interest-rate cut
  • Morgan Stanley even lowered its growth forecast for the global economy, and global manufacturing took yet another knock
  • The European Central Bank could be headed for its first-ever female president as European Union leaders haggle over top policy positions
    • Finnish central bank Governor Olli Rehn doubled down on his push for the ECB to review its monetary-policy strategy
    • Bloomberg Economics expects the ECB to ease monetary policy again
    • But Riksbank Governor Stefan Ingves is likely to ignore the growing momentum for easing emanating from Frankfurt and Washington, for now
    • Russians are doing with less as the government squirrels away $100 billion in a rainy-day fund

    To contact the reporter on this story: Zoe Schneeweiss in London at zschneeweiss@bloomberg.net

    To contact the editor responsible for this story: Fergal O'Brien at fobrien@bloomberg.net

    ©2019 Bloomberg L.P.

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