Fed Rate Rise, Yellen Debt Appeal, Hyperinflation Worry: Eco Day

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

• Fed Chair Jerome Powell said he could begin scaling back asset purchases in November and complete the process by mid-2022, after officials revealed a growing inclination to raise rates next year
• The FOMC delivered a widely expected taper signal. It’s the shift in the dot plot that’s more noteworthy, Bloomberg Economics says
• Treasury Secretary Janet Yellen urged Wall Street leaders to press Republicans to support raising or suspending the debt ceiling
  • Jerome Powell said the Fed doesn’t possess the ability to shield markets or the U.S. economy from the debt fallout
• Clients of UBS Group are wondering whether central banks’ massive stimulus could trigger hyperinflation, according to a list of their top economic concerns
• China’s rapidly growing military influence and unilateral changing of the status quo could present a risk to Japan, Prime Minister Yoshihide Suga told Bloomberg ahead of the first Quad summit
• The Philippine central bank is expected to continue holding its key interest rate steady
• The ECB will discuss boosting its regular asset purchases once the pandemic-era emergency stimulus comes to an end, Governing Council member Madis Muller said
  • A failure to introduce policies to mitigate climate change could significantly lower Europe’s economic output by the end of the century, the ECB warned
• Norway is poised to raise rates in the first such post-pandemic tightening among nations with the world’s 10 most-traded currencies
• Britain’s economic difficulties are multiplying: from inflation to an energy crisis
• Brazil raised its benchmark interest rate by a full percentage point and pledged another hike of the same magnitude
• President Joe Biden’s sweeping plans to expand social programs and fight climate change risk being whittled down by Democrats’ disputes
• Jerome Powell said the Fed hasn’t made a decision about a central bank digital currency but “will be issuing a discussion paper soon”
• South African President Cyril Ramaphosa asked the UN to prioritize reparations for communities whose ancestors were sold into slavery
• Moves to deploy fleets of electric air taxis in some of the world’s biggest cities are gathering steam with two of the sector’s pacesetters unveiling a raft of orders

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