Fed Rate Debate, China Dodges FX Tag, Rustbelt Braces: Eco Day

(Bloomberg) -- Welcome to Thursday, Asia. Here’s the latest news from Bloomberg Economics:

• Fed officials stepped deeper into a debate over how high to push interest rates, as a majority favored an eventual and temporary move above the neutral level. Carl Riccadonna explains why it made sense for policy makers to remove “accommodative” from the official statement
• The U.S. Treasury Department stopped short of declaring China a currency manipulator, averting an escalation of tensions
• China’s factory heartland is bracing for the big tariff hit after weathering early skirmishes
• The Bank of England’s No. 2 warned the pound could see a “big fall” if the U.K. crashes out of the EU in a disruptive Brexit. The U.K.’s post-Brexit access to $1.7 trillion in public projects relies on the good will of its European neighbors -- too bad Moldova holds a grudge
• The European Commission is "very likely" to reject Italy’s 2019 budget plan as it’s not compatible with the bloc’s rules. Bundesbank President Jens Weidmann said he shares the skepticism
• Here’s the decision-day guide for South Korea’s monetary policy meeting

To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Chris Bourke

©2018 Bloomberg L.P.