Powell's Puzzle, Draghi's Awkward Meeting, Aussie Wages: Eco Day

(Bloomberg) -- Welcome to Wednesday, Europe. Here’s news from Bloomberg Economics to help get your day started:

  • Five Fed mysteries. Jerome Powell’s press conference could shed light on topics from a red-hot labor market to EM turmoil. Carl Riccadonna says a hike is baked in and all eyes are on signals for future policy
  • Size & scope. U.S. inflation accelerated to the fastest pace in more than six years, while the budget deficit blew out to the widest since the depths of the global recession
  • Host absent. Mario Draghi is holding what might be the most awkward European Central Bank policy meeting in his tenure
  • Mirroring Fed. The People’s Bank of China will raise borrowing costs in the open market if the U.S. Federal Reserve decides to increase rates this week, according to a Bloomberg survey
  • Data supports hike. Inflation picked up in India for a second straight month, giving ammunition to the central bank to further tighten monetary policy
  • Lingering puzzle. Australia’s central bank chief Philip Lowe said any policy tightening is still some way off as the nation’s -- and world’s -- wage puzzle remains unsolved

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