Kaplan’s 2022 Hike, Europe Booms, Canada Mandate Tweaks: Eco Day

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

  • The U.S. economy will likely meet the threshold for tapering its asset purchases sooner than people think, said Dallas Fed President Robert Kaplan, who has penciled in an interest-rate increase next year
  • Europe’s private-sector economy is booming, accompanied by mounting inflation pressures as virus restrictions loosen. Italian premier Mario Draghi insisted euro-area fiscal rules can’t return to pre-pandemic status, throwing down a gauntlet to Germany
  • Bank of Canada Governor Tiff Macklem is in the final stages of a mandate review that could see him request more authority from Prime Minister Justin Trudeau’s government to run the economy hot
  • Saudi Arabia’s Energy Minister said the OPEC+ alliance has a role in “taming and containing” inflationary pressures, just hours after Brent crude surged back above $75 a barrel
  • The Philippines is expected to keep its benchmark interest rate on hold to support a fragile economic recovery as inflation steadies
  • Janet Yellen said Treasury may exhaust emergency measures to avoid breaching the U.S. debt limit as soon as August unless Congress acts to avert a potential “catastrophic” default
  • A shift toward tighter monetary policy is quickly taking shape across Latin America, with Chile signaling a rate rise as soon as July
  • It’s now cheaper to build and operate new wind or solar plants in nearly half the world than to run an existing coal or gas-fired plant

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