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U.K. Consumption, Fed Policy Tightening, China Pressure: Eco Day

U.K. Consumption, Fed Policy Tightening, China Pressure: Eco Day

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

  • U.K. retail sales jumped in December as consumers splashed out on Christmas items including clothes and jewelry, defying a surge in coronavirus infections
  • Euro-zone monetary policy may be among the world’s most dovish, but the currency bloc is far ahead of the U.S. in phasing out pandemic stimulus
  • Fed Chair Jerome Powell said the central bank will prevent higher inflation from becoming entrenched while cautioning that the post-pandemic economy might look different than the previous expansion
    • JPMorgan CEO Jamie Dimon said the Fed may be able to control inflation without jarring the economy too heavily
    • The Fed will again turn attention to balance-sheet normalization at upcoming meetings -- and this time will be different, according to Bloomberg Economics
    • Inflation expectations among U.S. consumers held at a record high of 6% for the coming year in the latest consumer survey of the Federal Reserve Bank of New York
  • Hong Kong’s omicron outbreak is dealing a double whammy to businesses
  • Australian household spending jumped in November as a combination of the easing of virus lockdowns and pre-Christmas purchases boosted outlays
  • China will accelerate investment and boost consumption to help stabilize economic growth amid renewed downward pressures
  • China is rolling out its digital yuan to athletes and spectators ahead of the Beijing Winter Olympics
  • The IMF appointed Pierre-Olivier Gourinchas to succeed Gita Gopinath

©2022 Bloomberg L.P.

With assistance from Bloomberg