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MEXICO CITY (Reuters) - U.S. President Joe Biden’s $1.9 trillion stimulus package will help boost Mexico’s economy and exports but will also create financial market challenges in emerging economies, said Alejandro Diaz de Leon, the governor of Mexico’s central bank.
FILE PHOTO: Mexico s Central Bank Governor Alejandro Diaz de Leon Carrillo speaks during the presentation of the national financial inclusion policy, in the Interactive Museum of Economics (MIDE) in Mexico City, Mexico March 11, 2020. REUTERS/Luisa Gonzalez
The Bank of Mexico’s five-member board will analyze at its next monetary policy meeting the impact of a recent spike in U.S. Treasury bond yields, Diaz de Leon told Reuters in an interview.
U.S. President Joe Biden remains committed to his campaign pledge that no one earning less than $400,000 should see an increase in their taxes, White House Press Secretary Jen Psaki said on Monday.
Federal Reserve policymakers are expected this week to forecast that the U.S. economy will grow in 2021 at the fastest rate in decades, with unemployment falling and inflation rising, as the COVID-19 vaccination campaign gathers pace and a $1.9 trillion relief package washes.
A surge in bond yields, fears about rising inflation and a jump-forward in interest rate expectations will be top of mind for investors at this week's Federal Reserve policy meeting.