Hungary’s Pivot, Fed’s Push Back, Korea’s Debt Pile: Eco Day

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

  • Hungary is moving closer to the European Union’s first major increase in interest rates this year, with policy makers poised to flag the start of a monetary-tightening cycle next month
  • Federal Reserve officials pushed back against the threat that a spike in price pressures will prove lasting as the U.S. economy reopens
  • U.S. Senator Elizabeth Warren is proposing to nearly triple the Internal Revenue Service’s budget to help identify wealthy individuals who are cheating on their taxes
  • Meantime Senate Republicans are planning to make a new overture to President Joe Biden on infrastructure spending, and said they’ll continue trying this week to strike a bipartisan deal after rejecting the White House’s latest counteroffer of $1.7 trillion as too costly
  • Bank of England policy makers pushed back against concerns that the U.K.’s rapid economic rebound from the pandemic will lead to a damaging wave of inflation
  • BOE Governor Andrew Bailey set out further concerns about digital currencies, saying there’s a danger of “getting carried away” with financial innovation
  • Asia’s surging coronavirus infections and slow pace of vaccinations is testing the limits of what central banks can do to further support what had been the world’s stand out economic recovery
  • South Korea’s consumer confidence strengthened to a high of almost three years in May, fueling optimism that the economy is on track for a strong recovery from the pandemic slump
  • The nation’s household credit growth moderated last quarter for the first time since the pandemic began, although the level reached a record high amid low interest rates
  • Singapore stuck to its economic growth forecast for this year, seeing past the impact of restrictions imposed to stem an uptick in Covid-19 cases while flagging that the global course of the pandemic remains a key risk

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