Overseas Headlines – January 20, 2021

United States:

The Economy in Charts as Biden Takes Helm of Uneven Recovery

“Joe Biden assumes the helm of the world’s largest economy and faces an uneven recovery — steady in some areas like housing and manufacturing but rough in others, most notably the job market. In the week prior to his inauguration Wednesday as the 46th U.S. president, Biden vowed to push for more aid once in the White House, unveiling an initial economic recovery plan with a $1.9 trillion price tag.”



150 Billion Reasons Why the U.K. Recovery May Surprise

“The combination of curbs on everyday life that limited the opportunities to spend and the U.K. government’s unprecedented income-protection scheme sent the savings rate skyrocketing to the highest level on record in second-quarter 2020 and kept it elevated in the third. What households do with those savings varies, yet what’s striking is that the vast majority were placed in deposit accounts and, as a result, the stock of deposits has risen by almost 150 billion pounds ($205 billion) since the end of 2019. That should mean the economy rebounds quickly once enough people are vaccinated and restrictions lifted, according to research by Bloomberg Economics.”



Asian Central Banks Start Year Juggling Politics, Policy Reviews

“Central banks across Asia are starting the year juggling policy reviews and political pressure to do more to support their economies. Bank of Japan Governor Haruhiko Kuroda has promised to release a policy review in March that he emphasized isn’t intended to backpedal from massive monetary easing, but rather to make it “more effective and sustainable.” The Reserve Bank of India is reviewing its inflation-targeting mechanism, with some in Prime Minister Narendra Modi’s government seeking to widen the band from the current 2%-6% range.”



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