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

  • In negotiating a slimmed-down, front-loaded version of his Build Back Better agenda, President Joe Biden could end up worse off on two fronts: The 10-year program will likely be less economically transformative than he once hoped, while still running the risk of stoking inflation in the shorter term
  • Investors are stepping up bets that the world’s key central banks will raise interest rates sooner than they’d planned, and faster than they’d like
  • The most important message from the latest U.S. jobs report was that workers are not coming back into the labor market as quickly as most forecasters and policy makers had expected, according to Bloomberg Economics
  • Treasury Secretary Janet Yellen on Thursday led a panel of top federal regulators in judging climate change to be an “emerging threat” to the nation’s financial stability
  • U.S. Senator Bob Menendez and ten other Democrats asked Federal Reserve Chairman Jerome Powell to prioritize diverse candidates to fill vacant presidencies at the system’s Boston and Dallas banks
  • Brazilian President Jair Bolsonaro plunged his administration into crisis as he forged ahead with a controversial spending plan that triggered a rout in financial markets and the resignation of key members of his economic team
  • The European Central Bank will supercharge its regular bond-buying program before pandemic purchases run out in March, according to economists surveyed by Bloomberg
    • Euro-area businesses are reporting a sharp slowdown in activity caused by an aggravating global supply squeeze that’s also producing record inflation
  • The Bank of England will likely defy investors’ expectations of a sudden interest-rate increase next month because it rarely shifts policy in such dramatic fashion, according to three former senior officials

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