Tapering Ways Off, Japan Budget Boost, ‘Sinister U.S.’: Eco Day

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

  • Fed Chair Jerome Powell said it was still too soon to scale back the central bank’s aggressive support for the U.S. economy, while acknowledging that inflation has risen faster than expected
  • Japan needs another extra budget of up to $270 billion to support economic growth, says an adviser to Prime Minister Yoshihide Suga
  • China accused the U.S. of waging a “sinister” campaign to halt its rise, as the Biden administration moved to counter Beijing’s growing global trade influence. Treasury Secretary Janet Yellen and her staff have no plans to resurrect the regular U.S.-China economic dialogue
  • Just recently, Australia’s virtually Covid-free status made it the envy of the world. Then the delta variant flipped the script. Meantime, services are taking the biggest hit from Taiwan’s Covid outbreak
  • The U.S.’s biggest business organizations in areas from food to fashion asked the nation’s trade chief to refrain from resorting to tariffs as a remedy in its trade disputes with Vietnam
  • The Bank of Canada took another big step to rein in emergency levels of stimulus, once again tapering its bond purchases
  • ECB Executive Board member Isabel Schnabel suggested inflation might be closer to meeting the bank’s goal than some anticipate. The institution also took a major step toward a digital euro
  • Could a more rapid recovery turn transitory into persistent inflation, prodding central banks into earlier action? Dan Hanson explores
  • Chile became the latest emerging market to raise interest rates
  • Prime Minister Boris Johnson will set out his vision for improving living standards in Britain
  • The EU rolled out an ambitious climate plan to transform every corner of its economy, and braced for years of tough negotiations

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