Overseas Headlines – January 05, 2021

United States:

Fed’s Evans Favors Aiming for 2.5% Inflation in Bid for 2% Goal

“Federal Reserve Bank of Chicago President Charles Evans said the U.S. central bank shouldn’t be shy about letting inflation run, as it has promised, above its 2% target in order to make up for years of undershooting that goal. “If we try to fine-tune a very modest inflation overshoot of only a 10th or two, we run a very large risk of failing to achieve our 2% averaging goal within any reasonable amount of time,” Evans said Monday during a virtual presentation to the annual meeting of the American Economics Association.”



U.K. Heads for Deeper Double Dip Recession With Third Lockdown

“Britain is headed for a sharper double-dip recession after Prime Minister Boris Johnson plunged the nation back into a lockdown with no clear end. Economists said the action, announced Monday to prevent the health service from being overwhelmed by surging coronavirus infections, all but certainly means the U.K. economy will shrink in the first quarter. That will delay the recovery from the worst downturn in three centuries, which analysts say already was unlikely before 2023.”



Hong Kong Faces an Uneven Recovery in 2021

“Recession-hit Hong Kong is facing a long and bumpy road to recovery after closing out yet another tumultuous year in 2020. Just like the beginning of last year, optimism is high that the city’s economy will soon start turning the corner. Back then, analysts were predicting a rebound after months of pro-democracy protests in 2019 weighed on the economy, expectations that were quickly dashed with the outbreak of the coronavirus pandemic.”



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