Powell Inflation Bump, China Deal Struggle, IMF Reserve: Eco Day

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

  • Fed Chairman Jerome Powell said prices would rise this year as the pandemic recedes and Americans are able to go out and spend, but he played down the risk that this would spur unwanted inflation
  • China is well behind on the two-year targets set in its trade deal with the U.S., having purchased only about a third of goods
  • The IMF is considering creating up to $650 billion in additional reserve assets to help developing economies cope with the pandemic
  • The recent increases in Covid-19 cases and deaths represent “truly worrying trends,” said WHO chief Tedros Adhanom Ghebreyesus
  • Dallas Fed chief Robert Kaplan said he is among policy makers estimating that interest rates will have to rise next year
  • Thailand will likely keep its key interest rate at an all-time low
  • The Bank of Canada provided the greatest guidance yet on how it plans to slow bond purchases. Female economists in Canada express less satisfaction in their field of work than do their male peers
  • With virus restrictions less impactful than originally feared, Germany’s economy is likely to shrink just 1.5% in 1Q followed by 2.7% growth in 2Q, Bloomberg Economics says in its research wrap
  • The velocity of the U.S. economy’s post-pandemic rebound hinges on more than just an increasingly capable consumer, and business spending appears poised to deliver its own boost
  • With President Recep Tayyip Erdogan’s sacking of his third central bank governor in less than two years, Turkey’s leader demonstrated yet again his determination to fight modern economic conventions

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