Fed Exit Strategy, PBOC Liquidity, Covid Economic Tail: Eco Day

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

  • The Fed will likely scale back its bond purchases before considering raising interest rates, Chairman Jerome Powell said
  • As jitters grow about tighter cash supply in China, investors may get a glimpse of the central bank’s stance on liquidity conditions. Here’s what to watch for in China’s unprecedented GDP growth report
  • Australia will likely find Covid-19 has a lingering effect on the economy and the sheer scale of stimulus means it will probably be a couple of years before it’s clear how much has changed
  • Bond veteran Greg Wilensky’s inflation skepticism epitomizes cooling enthusiasm for bets linked to a rapid recovery and higher prices. Indeed Fed officials are just as worried about too cold inflation
  • The ECB could end its pandemic emergency program within less than a year, Francois Villeroy de Galhau said. Public consultations on a digital euro have revealed that privacy is valued above all else
  • Joe Biden’s stimulus will lift Xi Jinping’s GDP, Bloomberg Economics shows in this wrap of its latest research
  • The Fed sees supply-chain issues growing even as the economic outlook improves, the Beige Book shows. JPMorgan Chase & Co. and Wells Fargo & Co. are pointing to fresh trouble in their loan business
  • Saudi Arabia is celebrating one of the biggest foreign-investment windfalls in its history after netting more than $12 billion
  • Some of the biggest industrial companies in Japan are working on a project that could trigger a wave of investment into one of the most controversial forms of carbon capture: methanation

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