(Bloomberg) -- Welcome to Wednesday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

  • The Fed is inching toward the start of a long road to normalizing its relationship with the rest of Washington and Wall Street, a task seen as a knife-edge balancing act
  • China’s economy is stabilizing from its record expansion in the first quarter, with analysts watching closely for signs of a more meaningful pickup in consumer spending
  • Asia’s emerging economies have accumulated their highest level of foreign-exchange reserves since 2014, offering a powerful buffer against market volatility if the Fed changes course
  • China’s air force sent 28 aircraft close to Taiwan, the largest sortie this year, further ratcheting up military pressure on Taipei
  • The yen stands to lose on two fronts against the dollar, writes Bloomberg Economics’ Yuki Masujima
  • An onslaught of economic reports added to evidence of a U.S. recovery in full swing, yet one showed growing pains
  • Britain’s decision to extend the last remaining Covid-19 lockdown rules another month will cause barely a ripple in the pace of economic growth this year but puts thousands of jobs at risk
  • No central banker in the world is taking on inflation this year like Brazil’s Roberto Campos Neto
  • The U.S. and the EU agree to extend a tariff truce for five years, parking a dispute over aircraft subsidies given to Airbus and Boeing
  • On his first overseas trip as president, Joe Biden’s plans for a coalition that can stand up to Beijing are starting to come into focus

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