Overseas Headlines – July 7, 2021

United States:

Fed Minutes of June FOMC Under Scrutiny for Taper-Timing Hints

“The record of the Federal Reserve’s meeting last month, which surprised investors with a hawkish pivot, will be scrutinized on Wednesday for any hints on when the central bank will pare back its support for the economy. The Fed delivered a double-whammy at the June gathering after its quarterly economic forecasts showed officials expect two rate hikes in 2023 and Chair Jerome Powell announced the central bank was getting the taper debate into gear.”



Euro-Area Outlook Raised by EU With Warning on Inflation

“European Union officials markedly raised their outlook for the euro-area economy and said there’s a higher risk of inflation taking hold as loosening virus restrictions allow demand to snap back. The European Commission increased its growth forecast for the currency bloc to 4.8% from 4.3% previously, while predicting better performance in 2022 too. The economy already did better than initially projected in the first quarter, and recent data suggests a strong rebound in private consumption is already under way, it said.”



Japan Expected to Deliver at Least $180 Billion in New Stimulus

“Japanese Prime Minister Yoshihide Suga is likely to unveil another economic stimulus package worth at least $180 billion within the next few months, according to a Bloomberg survey. All but one of 18 surveyed economists said the announcement would come before national elections that must be held by early fall. The median forecast was for a package of between 20 trillion yen and 30 trillion yen.”



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