Federal Reserve Chairman Jerome Powell said the recent price increases in the economy were higher than expected, but reiterated that they were likely to weaken. "A significant portion of the inflation overshoot, or perhaps all of it, comes from categories directly affected by the economic reopening, such as used cars and trucks," he said on Tuesday in response to questions from the House novel coronavirus Special Committee on crisis. "these are things that we expect to stop rising and eventually start to fall." Stocks climbed after Powell's speech, 10-year Treasury yields fell and the dollar fell. 

John Williams, president of the Federal Reserve Bank of New York, said the Fed has just begun to debate its plan to scale back its bond purchases, which is still a long way from the discussion of raising interest rates. "that's a long way off," Williams said in an interview with Bloomberg TV Michael McKee and Jonathan Ferro on Tuesday about raising interest rates. "right now, seriously, I think the focus is on minus codes." Williams's Federal Open Market Committee, (FOMC), is currently discussing when to start scaling back the bond-buying program implemented at the time of last year's outbreak.

Bitcoin fluctuated sharply, falling below $30,000 for the first time since January and wiping out this year's gains before regaining intraday losses. Bitcoin rose slightly to $32900 at the end of trading in New York on Tuesday, after falling as much as 12%. Bitcoin, which trades 24 hours a day, continued to move wildly and fell slightly again in early Asian trading on Wednesday. Bitcoin has fallen more than 50 per cent since hitting a high of nearly $65000 in mid-April. After tripling last year, the price of Bitcoin was around $29000 at the beginning of this year. 

There is still no consensus among ECB policy makers on a new inflation strategy, Reuters reported, citing unnamed sources. There are still some differences on the definition and realization of price stability. There is a general agreement within the central bank that since inflation has been below 2 per cent for most of the past decade, the central bank can tolerate inflation exceeding this new target, a source told Reuters. Policymakers have not yet reached a conclusion on how to convey this message and how much inflation will be tolerated and how long it should be expressed.

Russia is considering proposing to increase production at the OPEC+ meeting next week because it believes there is a shortage of supply in the market, according to officials familiar with the matter. Moscow expects the current global oil supply to fall short of demand in the medium term, according to two officials, who spoke on condition of anonymity. Another official said Russia was still thinking about the final position it would take when it met with other OPEC+ members on July 1. The International Energy Agency ((IEA)) earlier this month urged the Organization of Petroleum Exporting countries ((OPEC)) and its allies to start idle capacity to ensure adequate supply in the market in the event of a rapid recovery in demand. 

British and EU officials are increasingly optimistic that they can avoid a post-Brexit trade war and that the two sides will reach an agreement on the inspection of goods entering Northern Ireland. The British government has asked the European Union to extend the grace period and temporarily suspend the sale of chilled meat and fresh sausages from other parts of the UK to Northern Ireland. No agreement has been reached and European officials want to know how the British government will use the grace period after June 30, and EU diplomats will discuss the next steps at Wednesday's meeting, according to people familiar with the matter.

If Deutsche Bank does not slow its lending to highly indebted customers, it will face higher capital requirements from regulators, constraining CEO Christian Sewing's efforts to boost performance growth and profitability. After months of behind-the-scenes discussions, the ECB has informed Deutsche Bank that more equity may be needed to cope with the risks posed by leveraged loans, according to people familiar with the matter. The ECB will set capital requirements for 2022 by the end of the year, and Deutsche is expected to avoid higher barriers if Deutsche reduces these risks before then, according to people familiar with the matter. 

U. S. second-hand home sales fell for the fourth consecutive month in May, as rising house prices and scarcity of inventory put pressure on buyers. Sales of second-hand homes fell 0.9 per cent to 5.8 million units at an annualised rate in May from a month earlier, according to the National Association of Realtors. Economists surveyed by Bloomberg had a median estimate of 5.73 million sets. Sales of second-hand homes continue to cool from multi-year highs as rising house prices increasingly offset lower borrowing costs. Strong demand and limited supply of second-hand housing have pushed up the listing price of real estate, causing some buyers to stay on the sidelines.

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