Fed’s Inflation Debate, 10% Growth, China Trade Trouble: Eco Day

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

  • Fed Chair Jerome Powell said inflation had picked up but should move back toward the 2% target once supply imbalances resolve. Meantime, a number of his colleagues reckon the U.S. central bank’s policy outlook needs to be more attuned to inflation risks
  • The U.S. is on pace to hit second-quarter GDP growth of 10%, Bloomberg Economics’s high-frequency indicators suggest
  • China’s imports of American goods slowed again in May, putting targets agreed with the U.S. in a 2020 trade deal further out of reach
  • Inflation has caught America’s attention and the Fed is reaching for Lego to explain why some price rises will probably prove temporary
  • Hong Kong’s economy is poised to expand by the most in a decade following two years of contraction, writes Eric Zhu
  • Indonesia has few easy options to bolster its economy amid a virus resurgence, efforts to rein in debt and the Fed turning hawkish
  • Jerome Powell is under pressure to square the Fed’s inflation concerns with the goal of broad and inclusive gains in the job market
  • Meantime, ECB chief Christine Lagarde said that accelerating U.S. inflation will have only a limited impact in the euro area
  • The BOJ bought exchange-traded funds for the first time in two months after local stock benchmarks suffered significant losses
  • India’s No. 2 province will form an advisory panel that will tap Nobel laureate Esther Duflo and former central bank chief Raghuram Rajan
  • Five years on from the knife-edge Brexit referendum, the U.K. remains deeply divided over leaving the EU. Meantime, the U.K. formally started negotiations to join a trans-Pacific trading bloc

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