The Marriner S. Eccles Federal Reserve building stands in Washington, D.C. (Photographer: Andrew Harrer/Bloomberg)

Fed Keeps Raising, Parched Australia, U.S.-China Strain: Eco Day

(Bloomberg) -- Welcome to Thursday, Asia. Here’s the latest news from Bloomberg Economics:

  • The Federal Reserve raised rates and cemented expectations for another hike this year; Jerome Powell sees a U.S. economy capable of humming along without support. Carl Riccadonna reckons the FOMC is looking to overshoot to ensure a soft landing
  • Meanwhile, President Trump is “not happy” with the Fed’s decision
  • Parched Australia. In the world’s driest inhabited continent, enduring a devastating drought that arrived mid-winter, private action to prepare for climate change comes in stark contrast with government paralysis
  • As the U.S.-China trade war heats up, military tensions are also rising
  • Global leaders and top executives pledged their commitment to free trade, offering a rebuke to Trump’s protectionism. Meantime, Trump announced he has reached an agreement with Japan to open trade talks
  • Chinese non-financial corporate debt is rising again as a percentage of GDP following a year and a half of deleveraging from its mid-2016 record
  • French President Emmanuel Macron said he’d welcome Britain back should its voters decide in a second referendum to stay in the EU
  • New Zealand held rates at a record low and signaled a preparedness to cut if economic growth fails to gather pace. Subdued manufacturing and inflation data probably won’t be enough to throw Singapore off its policy tightening course
  • The IMF will step up lending to Argentina to $57.1 billion after the country slid into recession and as it struggles to stem a currency rout
  • Deja vu in India. A sharp slide in the rupee, rising oil prices and a widening current-account deficit are throwbacks to 2013 amid the "taper tantrum." Yet the situation today isn’t nearly as grim

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