The Day at a Glance | April 12 2021

The Top

*Chair of the FED Jerome Powell assured that the growth outlook for the US economy has improved.

*European authorities expect the distribution of the region`s recovery fund to start in the summer.

*The European Union imposed tariffs on aluminum imports from China (19%-49%) in order to protect local producers.

Economic environment

Chair of the Federal Reserve Jerome Powell assured that the US economy is at an inflection point, where job creation and growth could start to accelerate thanks to vaccine programs as well as the FED and fiscal authorities` efforts to boost an economic recovery. “The outlook has brightened substantially”, assured Powell in an interview with `60 minutes` on CBS. Despite the optimistic tone regarding the economy`s future, Powell warned that there are still risks of a new wave of COVID-19. He reiterated that it`s highly unlikely that the FED will increase interest rates this year and that he first expects to see an important number of citizens returning to the labor market before considering the start of a normalized monetary stance. Powell`s time as head of the FED will end in February 2022, which is why the monetary normalization process will occur with the following Chair, who will be chosen by President Biden.