Powell’s Message, Supply Pain, South Korean Inflation: Eco Day

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

• Federal Reserve Chair Jerome Powell reinforced his message that the U.S. central bank would keep inflation in check and said for the second time in two days that officials should consider speeding up how quickly they withdraw policy support
  • Federal Reserve Bank of Cleveland President Loretta Mester said she is “very open” to scaling back the Fed’s asset purchases at a faster pace so it can raise interest rates a couple of times next year if needed
  • President Joe Biden is considering Atlanta Fed President Raphael Bostic and Duke University law professor Sarah Bloom Raskin to be the Fed’s top banking regulator
• Meantime, Biden said his administration’s work has begun to alleviate supply-chain disruptions, although the record volume of cargo moving through the U.S.’s busiest port complex is likely to continue
• Bloomberg Economics takes a look at how monetary policies in the U.S. and China are set to diverge in 2022
• South Korea’s inflation accelerated to the fastest pace since 2011, reinforcing concerns that strong price pressures will persist and bolstering the case for the central bank to raise interest rates further
• Latest labor data readings in Australia suggest RBA Governor Philip Lowe’s desire to lift wages growth to above 3% remains a distant prospect
• Turkey’s President Recep Tayyip Erdogan abruptly replaced his finance minister amid deepening rifts in the administration over aggressive interest-rate cuts that have undermined the currency and fueled inflation
• Banxico’s nominee Victoria Rodriguez Ceja defended her track-record and experience to lead the Mexican central bank after opposition senators questioned her competence for the job
• Finally, check out this week’s Stephanomics podcast and hear about how inflation poses a growing risk for central banks

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