The unexpected rise in US wages has given financial markets a new reason to worry about inflation. With the gradual unsealing of the economy after the epidemic, consumer prices in the United States have risen rapidly. Inflation data to be released on Thursday are expected to show that prices rose a further 0.4 per cent in may, surpassing the 4.2 per cent year-on-year high set in April, the highest in more than a decade. Many policy makers and economists believe that the price surge is temporary, in part because they did not expect wage increases to be so high. New capital growth for low-income people has been relatively stagnant over the years.

Demand for a key Fed repo tool used to control short-term interest rates soared to more than $500 billion for the first time as a flood of cash in the market was looking for a way out. Fifty-nine participating institutions deposited a total of $502.9 billion with the Fed through overnight reverse repos on Wednesday, surpassing the previous record high of $497.4 billion set on Tuesday, according to data from the New York Fed.

President Joe Biden will lift the Trump-era ban on Chinese apps TikTok and Wechat on Wednesday and will censor applications from foreign rivals that may pose a risk to sensitive data from Americans, senior administration officials said. In the executive order, Biden will instruct Commerce Secretary Gina Raimondo to assess and block procedures that pose a security risk. The executive order will replace former President Trump's order aimed specifically at Chinese companies such as TikTok parent company Byte Jump and Wechat developer Tencent.

U.S. president Joe Biden and EU leaders will take a big step towards repairing their damaged relations next week, and they will launch an alliance to restrain China. According to the draft conclusions seen by Bloomberg before the June 15 meeting, leaders at the US-EU summit will commit themselves to reforming the World Trade Organization to stamp out wrongdoing by countries seeking to take advantage of existing rules.

With the end of direct negotiations between US President Joe Biden and the Republican chief negotiator, hopes of a bipartisan agreement on the largest infrastructure package in decades have been dealt a blow, increasing the likelihood that Democrats will press ahead with a multi-trillion-dollar package on their own.

Andy Haldane, chief economist of the Bank of England, said the inflation risk means this is the most dangerous moment for monetary policy in decades. In an article for New Statesman, Haldane wrote that in recent months, there has been a "decisive shift in the balance of inflation." for more and more companies and economists, the rapid rebound in spending and inflation is now a reasonable core scenario, he said, with the rapid change in risk, "it is now a dangerous time, not only for central bankers, but also for the economy as a whole."

Iran says it is prepared to increase oil production, although negotiations with world powers on how to lift sanctions have so far failed to reach an agreement. Parties to the EU-led 2015 nuclear deal are in Vienna trying to fully revive the iconic deal that former US President Donald Trump withdrew three years ago. The talks are aimed at relaxing U. S. sanctions on Iran's economy while curtailing a significant expansion of its nuclear activities.

A survey conducted by (WGC) of the World Gold Council shows that about 1/5 of central banks plan to increase their gold reserves in the coming year. WGC said on Wednesday that 21 per cent of the 56 institutions surveyed said they planned to increase their gold holdings, a slight increase from the previous year. The vast majority intend to remain unchanged and have no plans to reduce their holdings. Gold is more popular among emerging market central banks, with nearly 1/3 saying it will increase its allocation, compared with 4 per cent in advanced economies. None of the institutions said they planned to invest in cryptocurrencies.

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