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

  • Europe’s giant job-saving experiment -- 19 months of supporting laborers who couldn’t work during the pandemic -- appears to be paying off, and is revitalizing a debate about whether the approach was better than the U.S. model of allowing job losses and offering expanded unemployment aid
  • The Bank of England reinforced its option for a rate hike this year, with Governor Andrew Bailey saying that the key interest rate would become the tool of tightening policy to tame inflation, even before the current bond-buying program expires if necessary
  • Several Federal Reserve officials have reiterated the message on tapering asset purchases soon while urging patience on liftoff in interest rates. Separately on Monday, Fed chief Jerome Powell told Congress that supply bottlenecks have been longer lasting than anticipated, and that he expects inflation pressures to remain high in coming months before easing
  • Two Fed officials have announced plans to step down, in the wake of embarrassing revelations of stock trading last year, removing a couple of the central bank’s more hawkish regional chiefs
  • China’s energy crisis is the latest shock to global supply chains as factories in the world’s biggest exporter are forced to conserve energy by limiting production
  • The U.K. officially put the military on standby to help deliver supplies to gasoline stations in an effort to stem a widening crisis that’s engulfed Boris Johnson’s government
  • India’s rapid post-lockdown economic rebound is moderating, a dashboard from Bloomberg Economics shows. The country is steadily progressing in curbing Covid outbreaks and boosting vaccinations, but pent-up demand is set to fade
  • Russian farm country’s hot summer followed by a rainy autumn could mean for the central bank that interest rates need to go higher and stay there longer

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