The Fed, the minutes of the ECB and all the looks at China’s inflation are Reuters

(Reuters) – Minutes of the US Fed and ECB meetings in June, plus recent Chinese inflation data – here’s a quick rundown of next week’s major economic events and issues that Reuters offices will look into.

UNITED STATES OF AMERICA

The week after the U.S. payroll report is one of the lightest of the month in terms of economic reports, and next week is no exception.

That said, only one tent per week and an anti-market note appear: the minutes of the June meeting of the Federal Reserve, when officials discussed how to end the purchase of crisis bonds, and interest rate hikes were closer than ever on the horizon. think.

From June 16 to 17, the Federal Open Market Commission on Wednesday at 2 p.m., Eastern Time (1800 GMT) readings will shed light on the depth of the distribution among 18 policymakers as they approach a critical turning point in monetary policy. the largest economy in the world – and one that is growing now -. Four signs of what to look for.

Inflation: When inflation exceeds 2% of the Fed, to what extent is this tolerance tolerated among officials?

Employment: Will some politicians push for the theory that COVID is not a direct return to previous levels of employment, raising questions about the goal of “maximum employment”?

Taper vouchers: The taper discussion is fully underway. Among the questions is the value of $ 80 billion a month backed by the Treasury and $ 40 billion backed by mortgage-backed values.

Interest rates: Does the discussion go earlier? FOMC member projections led to an average expectation of 2023 to 2024 at the June meeting and a large minority of members surrounded 2022 for the first rise.

EUROPE

In Europe, concerns about the impact of new crown virus variants on summer tourism (key in southern economies like Portugal, Greece, Italy and Spain) will continue to be a concern next week as hotel bookings fall far short of pre-pandemic levels.

On Tuesday, the UK’s fiscal budget, the Office of Budgetary Responsibility, publishes an annual report on the risks to public finances this year from the damage caused by COVID-19, climate change and the effects of higher interest rates on debt service. costs.

The European Central Bank released the account of its June policy meeting on Thursday. ECB monitors will also be vigilant in the coming weeks in the face of news coming from a series of detailed meetings with their strategic vision planned.

The bank wants to renew its inflation target (currently close to but not above 2%), but sources said there are significant differences between senior political leaders. The goal is to do the review by September.

ASIA

In Asia, on Tuesday the Australian central bank is likely to break its cash rate record and take a “flexible” view of the bond-buying program. Economic results exceed expectations but new COVID outbreaks across the country and the slow spread of vaccines add some risk to the outlook. Already, analysts expect the RBA to be one of the slowest central banks in the developed world to stop the resurgence of the crisis.

The Malaysian central bank will hold its policy meeting on Thursday, with no unexpected changes. There will be plans to regain focus.

Finally, China will release new inflation data on Friday. A key one would be the cost of raw materials, which has risen as a result of high commodity prices and whether these increases are passed on to the consumer.