Powell’s Stimulus Pivot, IMF’s Omicron Warning, British Rate Bets: Eco Day

(Bloomberg) -- Welcome to Monday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help you start the week.

• Jerome Powell’s pivot toward a quicker withdrawal of stimulus paves the way for a more agile Fed in 2022
  • Powell’s small shift in language had major consequences
  • U.S. job growth registered its smallest gain this year while the unemployment rate fell by more than forecast to 4.2%
  • The winds of inflation in the U.S. strengthened further in November, keeping up tightening pressure on the Fed
  • With the November jobs report confirming the Fed’s assessment of a tight labor market, two factors could derail what is, according to Bloomberg Economics, a likely announcement for a faster taper at the Dec. 15 meeting
• The IMF sees “downside risks” to the global rebound it forecast and is concerned that new coronavirus variants may hinder the recovery
  • Uncertainty surrounding the omicron variant is making some Bank of Japan officials see increased risk in ending or scaling back a Covid funding program
• The BoEs leading hawk said there could be advantages from waiting for more data on how omicron will impact the economy before raising rates, prompting investors to slash bets on a December hike
• Australia’s central bank is likely to highlight the interval between building economic momentum and faster price gains, as well as renewed virus risks, in its final meeting of the year
• Goldman Sachs economists cut their forecasts for the U.S. economy
• Vietnam’s central bank bought about $25 billion worth of U.S. dollars over the past two years, according to a deputy governor
• China’s influence in Asia receded in the second year of the pandemic

©2021 Bloomberg L.P.