Sydney/Washington/Beijing - Asian shares slid on Monday and Wall Street futures made slight gains amid worries the U.S. Federal Reserve would this week underline its commitment to fighting inflation with whatever measures was required.

The euro showed little reaction after French President Emmanuel Macron lost control of the National Assembly in legislative elections on Sunday, a major setback that could throw the country into political deadlock.

Indian shares changed little on Monday, with gains in consumer stocks offset by losses in metals, while global prices of copper and crude oil declined.

China stays put with rates
China stood firm on its benchmark lending rates for corporate and household loans, as expected, on Monday, with global central banks' rate increases making it tough for Beijing to stimulate a weak domestic economy by lowering rates.

Markets widely believe that Chinese policymakers are wary of risks that the yuan will depreciate, and capital outflows will be triggered if they embark on further monetary easing to underpin a COVID-19-hit economy at a time when other major economies are tightening their rates policies.

The one-year loan prime rate (LPR) was kept at 3.70%, and the five-year LPR was unchanged at 4.45%.

US looks to pause federal gas tax
President Joe Biden's administration is reviewing the removal of some tariffs on China and a possible pause on federal gas tax as the United States struggles to tackle soaring gasoline prices and inflation, two top officials said on Sunday.

U.S. Treasury Secretary Janet Yellen said some tariffs on China inherited from the administration of former President Donald Trump served "no strategic purpose" and added that Biden was considering removing them as a way to bring down inflation.

U.S. Treasury Secretary Janet Yellen, speaking to ABC News, said the administration was reviewing its China tariff policy but did not cite specifics and declined to say when there may be a decision.

US officials reiterated Biden's stance that a recession was "not inevitable", with the treasury secretary saying that labor market and consumer spending remained strong. Mester also said she was not predicting a recession despite slowing growth.

Yellen, however, described inflation as being "unacceptably high" and added that she expected the economy to slow.
-Reuters