Prepare for Tax Hikes, Powell’s Dilemma, BOJ Review: Eco Day

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

• President Joe Biden is planning the first major federal tax hike since 1993 to help pay for his long-term economic program. Elsewhere, his administration has reached out to North Korea’s government in order to revive diplomatic efforts around the country’s nuclear program
• Fed Chair Jerome Powell could find himself in a tough spot this week, having to defend his ultra-easy monetary policy outlook amid a quickening economic recovery. Meanwhile, the bond market is about to get a serious reality check
• The Bank of Japan’s policy review to shore up its stimulus for the longer term is set to land this week as rising bond yields cause angst for central bankers around the world
• The Philippines’ renewed surge in coronavirus infections will have limited impact on the economy as authorities opt for localized lockdowns and as vaccinations pick up
• Manufacturing in New York expanded in March by the most since November 2018 as a growing number of factories in the state reported paying more for materials and charging higher prices
• Bond purchases under the ECB’s pandemic program stayed muted through the middle of last week, before the Governing Council agreed to step up buying to counter rising bond yields
• The Bank of Russia is considering moving faster than previously signaled to tighten monetary policy and may bring its key interest rate up by 125 basis points or more before the end of the year
• The more education you have, the more likely you are to have a job. This relationship holds true across the U.S. labor market, with one notable exception

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