published May 31, 2018 6:54:11 PM, by Michael Heath
(Bloomberg) —

Happy Friday, Asia. Here’s news from Bloomberg Economics to help get your day started:

America’s closest allies plan to slap billions of dollars in tit-for-tat tariffs on U.S. goods after the Trump administration announced it’s imposing steel and aluminum duties on them. Global finance chiefs are sure to give Treasury Secretary Steven Mnuchin an earful at the G-7 U.S. firms’ struggles to find employees suggest payroll gains will cool from this year’s monthly average of 200,000 While inflation is back at the Fed’s 2 percent target, the factors driving it suggest the return may prove temporary. Carl Riccadonna echoes that, saying until wages strengthen, 2 percent remains a mirage Fed Governor Lael Brainard says a strong fiscal boost at a time of low unemployment suggests a gradual pace of rate increases is appropriate Japan may surrender a key tool for curbing social spending as aging pushes up health, pension and eldercare costs Euro area inflation hit the fastest pace in more than year, while a Scandinavia-based hedge fund run by former central bankers has just cut its bet on the timing of the ECB’s rate increase

To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net Chris Bourke

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