Fed Concerns, Food Inflation Intensifies, BOJ Pressure: Eco Day

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

  • Fed officials say the U.S. economy continues to be disrupted by the pandemic with one regional central bank chief dismissing the threat that inflation could get out of hand
  • There are signs that the food inflation that’s gripped the world over the past year, raising prices of everything from shredded cheese to peanut butter, is about to get worse
  • A three-decade high for Japan’s soaring stocks is adding to pressure on the central bank to tweak its buying of exchange-traded funds
  • Bitcoin blew through another milestone, surging past $50,000 for the first time as the blistering rally in the largest cryptocurrency continues to captivate investors worldwide
  • European governments must find the right moment to wean the economy off unprecedented crisis support so they don’t harm growth in the long run, financial supervisors warned
  • Here’ a wrap of analysis by Bloomberg Economics on everything from the global chip shortage to a double-dip recession in France
  • The U.S. recovery from a virus-induced economic downturn requires continued support and there’s a risk of financial instability from commercial real estate, Kansas City Fed chief Esther George said
  • The House is aiming to vote Feb. 26 on President Joe Biden’s $1.9 trillion stimulus plan. Meantime, a proposal to gradually raise the U.S. minimum wage to $15 by 2025 has triggered a fierce lobbying battle on Capitol Hill
  • Switzerland’s wealth tax offers a rare real-world example of how a levy on assets can work
  • The reflation trade is gaining momentum, with the yield on the benchmark 10-year Treasury note climbed to the highest since the end of last February
  • The Earth’s poles are warming faster than anywhere on the planet. While the consequences of that aren’t completely understood, it’s becoming apparent that many of the world’s extreme weather events owe the Arctic at least some of the credit

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