The US Treasury Secretary began a visit to China yesterday that is likely to last until Sunday. The expectation is that these meetings will lead to an easing of tensions between the world’s two largest economies given that, in Janet Yellen’s own words: “A disengagement of the world’s two largest economies would be destabilising for the global economy”. Today she also met with Premier Li Qiang. On the other hand,...

The appointment of the day will be in the United States, where Biden will take office as the country's 40th President. Donald Trump will not attend the simple inauguration ceremony.The health and economic crises are Biden's main challenges for the current legislature, including the approval of a $1.9 trillion stimulus plan. Just yesterday Janet Yellen, who will serve as Treasury Secretary in the Biden Administration, defended that stimulus plan in her speech at the Senate. "We must act big," she said.

The trend in inflation is confusing those in charge of monetary policy. After a significant uptick in the last part of 2017, it has really stagnated, in stark contrast with the growing dynamism of the economy.

In her last press conference as Fed Chair, Janet Yellen showed no visible signs of emotion or resentfulness, taking her wholly unjustified dismissal with notable fortitude and good spirits. For all her weaknesses, both observers and markets will miss her unbiased attitude, conscientious dedication and economic mastery.

BBVA Research (Boyd Nash-Stacey/Nathaniel Karp) | The FOMC is poised to undergo a nontrivial change in leadership and composition with four new regional Fed members rotating into voting roles and with a potential change in leadership.

Investors and observers have hailed the Fed's decision to trim its balance sheet from October onwards as a turning point in the drive to normalise monetary policy. But a decline of $10 billion per month in the hefty portfolio the Fed has accumulated in recent years will hardly have any visible effect on the bond market.