When Fed policy makers last week indicated they expected to start raising rates in 2023-earlier than they had earlier projected-markets had a bit of a fit. What had become of the Fed's plan to look through transitory inflation, or its bid to see just how low unemployment could go?
Why There Is No 'Taper Tantrum' This Time Around
The taper tantrum has become taper tranquility.
When Federal Reserve officials started talking about pulling back on the central bank's easy-money policies back in 2013, anxious investors sent markets into a tizzy. Yields on Treasury bonds rose, emerging-markets stocks tumbled, junk bond prices fell and stock volatility jumped, all in what came to be known as a market "taper tantrum" that preoccupied the Fed for months and played a role in delaying its plans.
Infrastructure Talks Focus on How to Pay for Bipartisan Package
WASHINGTON-Lawmakers and the White House searched for ways to finance a roughly $1 trillion infrastructure proposal without raising the gas tax or placing fees on electric vehicles, debating how much new revenue the Internal Revenue Service could generate with enhanced enforcement efforts.
The infrastructure proposal, which includes $579 billion in spending above expected federal levels and would total $973 billion over five years, has won the backing of 11 Republican senators and 10 members of the Senate Democratic caucus. A group of 10 of the lawmakers met repeatedly Tuesday with top White House officials as the group aimed to prepare a plan for public release, with talks set to continue.
Delta Covid-19 Variant Could Be Dominant in U.S. in Two to Three Weeks, Study Says
The highly transmissible Delta variant of the Covid-19 virus is spreading so rapidly in the U.S. that it could become the dominant strain in the next two to three weeks, researchers said, adding urgency to the nationwide vaccination drive.
The Delta strain, which first emerged in India in late 2020 and is also known as B.1.617.2, will probably make up 50% of Covid-19 infections in the U.S. by early to mid-July, said William Lee, vice president of science at population genomics company Helix and an author of the new analysis.
France's Macron Pushes Controls on Religion to Pressure Mosques
PARIS-President Emmanuel Macron is redrawing the line that separates religion and state, in a battle to force Islamic organizations into the mold of French secularism.
In recent months, his administration has ousted the leadership of a mosque after temporarily closing it and poring over its finances. Another mosque gave up millions in subsidies after the government pressured local officials over the funding. A dozen other mosques have faced orders to close temporarily for safety or fire-code violations.
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Expected Major Events for Wednesday
06:00/NOR: Apr POSTPONED: Labour force survey SA, incl unemployment
07:15/FRA: Jun France Flash PMI
07:30/GER: Jun Germany Flash PMI
08:00/EU: Jun Eurozone Flash PMI
08:30/UK: Mar Card Spending statistics
08:30/UK: Jun Flash UK PMI
09:00/MLT: May RPI
10:00/IRL: 1Q Labour Force Survey
10:00/IRL: May Monthly Unemployment
12:30/CZE: Czech interest rate decision
All times in GMT. Powered by Kantar Media and Dow Jones.
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This article is a text version of a Wall Street Journal newsletter published earlier today.
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