Warren openly opposes Powell’s second term as Fed chief; Powell urges increase US debt limit

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Good day. Senator Elizabeth Warren on Tuesday became the first Democratic senator to publicly oppose a second term for Federal Reserve Chairman Jerome Powell, criticizing him during a Senate Banking Committee hearing for weakening banking regulations which, according to her, left the US financial system more at risk of a 2008-style financial crisis. She said that efforts to ease financial regulations “make you a dangerous man at the head of the Federal Reserve.” Meanwhile, Powell urged lawmakers to raise the federal debt limit without delay, noting that they should not expect the Fed to be able to fully compensate for the financial damage that could result from failure to do so. increase or suspension of the borrowing limit.

Now let’s move on to today’s news and analysis.

Top news

Warren says she will vote against Powell’s second term of the Fed

Senator Elizabeth Warren (D., Mass.) Said on Tuesday that she would oppose a second term for Federal Reserve Chairman Jerome Powell if President Biden appointed the central bank chief, underlining the division within the party on his candidacy.

Ms Warren told Mr Powell at a congressional hearing that his efforts to ease financial regulations imposed after the 2008 financial crisis “make you a dangerous man to run the Federal Reserve.”

American economy

US economy poised to pick up speed after delta slowdown

The Delta variant of Covid-19 appeared to temper economic growth this summer, but economists expect the recovery from the pandemic to accelerate as the virus’s toll diminishes.

Consumer confidence continues to slide on Covid-19, inflation worries

Home price growth hit a record in July

The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas, rose 19.7% in the year ending July, the rate highest annual price growth since the index began in 1987.

Yellen says Treasury could run out of cash reserves by October 18

Treasury Secretary Janet Yellen told Congress the Treasury would not be able to pay all government bills if lawmakers did not increase the federal borrowing limit, citing limited resources that would quickly run out .

Federal Reserve Chairman Jerome Powell also urged lawmakers to raise the debt limit, saying that a crisis management manual that Fed officials developed during a similar stalemate in 2013, which Some analysts say could guide the central bank’s response this fall if the federal government cannot pay all of its bills, should not lead lawmakers to conclude that the Fed could fully compensate for a financial catastrophe.

Republicans block Democrats’ latest efforts to advance debt ceiling bill

Debt ceiling deadlock distorts short-term treasury market

Progressives split over support for Thursday’s House infrastructure vote

The debt ceiling: what you need to know

Key developments around the world

With Germany sidelined, EU must wait for big challenges

As the largest member of the European Union, Germany inevitably helps shape the bloc’s plans, and in the coming months the EU must decide to ease fiscal rules for members, a change that could affect its economic trajectory.

Bank of Thailand keeps rate unchanged at record high

The Bank of Thailand said its board of directors voted unanimously to keep its overnight repurchase rate unchanged at 0.5%. Daily Covid-19 infections in the country peaked in August and have declined in recent weeks.

OPEC predicts a winner in the global energy transition: OPEC

The Organization of the Petroleum Exporting Countries foresees an unlikely winner in a context of energy abandonment of hydrocarbons: the members of the cartel, because the world demand for oil will increase steadily over the next two decades.

US, Europeans discuss technology, trade and China in Pittsburgh

A high-level business and technology meeting scheduled for Wednesday in Pittsburgh aims to iron out feuds between the United States and the European Union, even as political disagreements over China threaten to put further strain on relations.

Overview of financial regulation

Bank mergers could reach their highest level since the financial crisis

Banks announced more than $ 54 billion in deals until the end of September, putting mergers and acquisitions in the industry into their biggest year since 2008, when some big banks had to sell off to avoid collapse.

SEC appoints Dan Berkovitz as general counsel

The SEC hired a former aide to President Gary Gensler as its best lawyer. Dan Berkovitz, who is stepping down as Commissioner of the Commodity Futures Trading Commission, will join the SEC as General Counsel on November 1.

Forward-looking indications

Wednesday (every hour ET)

Time N / A: Bank of Thailand issues policy statement

8:00 am: the meeting of President of the European Central Bank of Guindos on the pandemic and the sectors of activity of the countries during the virtual forum of the ECB on the central bank

10:30 a.m .: Lane from the European Central Bank chairs a panel on monetary policy, employment and inequality at the ECB’s virtual central bank forum

11:45 am: Fed’s Powell and European Central Bank’s Lagarde speak at policy panel at ECB virtual central bank forum

1 p.m .: San Francisco Fed’s Daly speaks at UCLA Anderson Forecast virtual event

5 p.m .: New York Fed Williams moderates discussion with Tala CEO Shivani Siroya during Economic Club of New York webinar

Thursday

04h00: Panetta from the European Central Bank delivers the opening speech of the Euro Cyber ​​Resilience Board meeting for pan-European financial infrastructures

8:30 am: US Department of Commerce releases third estimate of second quarter GDP; Czech National Bank publishes monetary policy decision

10 a.m .: New York Fed’s Williams delivers keynote address at New York Fed webinar on implications of Fed actions in response to pandemic

11 a.m .: Atlanta Fed Bostics Speaks Virtually on Economic Mobility at Georgia Tech Library Scholars Event Network

11:30 a.m .: Philadelphia Fed Harker speaks virtually at the Official Forum of Monetary and Financial Institutions event

12:30 p.m .: Evans of the Chicago Fed talks virtually about the economy and monetary policy at the Bendheim Center for Finance event

12:45 p.m .: New York Fed’s Williams delivers closing remarks for New York Fed webinar on implications of Fed actions in response to pandemic

1:05 p.m .: St. Louis Fed’s Bullard speaks virtually at the launch of the book “The Future of Building Wealth”

2 p.m .: Bank of Mexico issues policy statement

2:30 p.m .: San Francisco Fed’s Daly speaks virtually at Idaho Women and Leadership conference

7:50 p.m .: the Bank of Japan publishes a September Tankan survey on the business climate; Bank of Japan issues summary of views at September 21-22 meeting

Remark

What if inflation is here to stay?

If structural changes turn out to be the main cause of the current rise in inflation, Americans shouldn’t expect the consequences – higher prices in stores – to be “transient,” writes William A. Galston.

Base points

A shortfall in global energy supplies spilled into crude markets on Tuesday, pushing oil prices to their highest levels in three years.

Goldman Sachs lowered its growth forecast for China, citing the country’s energy crisis, now expecting zero growth in gross domestic product in the third quarter. (Barrons.com)

German consumer sentiment is expected to strengthen in October, reaching its highest level in a year and a half, according to market research group GfK, whose forward-looking consumer sentiment index predicts that household confidence will drop below 1.1 point in September to 0.3. point next month. Economists polled by the Wall Street Journal expect a drop to minus 1.9 points. (Dow Jones Newswires)

The French consumer confidence index rose to 102 in September from 99 in August, suggesting that households do not share business leaders’ fear of supply constraints which are crushing demand and of a new increase in Covid-19 cases, Pantheon Macroeconomics said. (DJN)

Sweden’s retail sales in August were better than expected, increasing 0.7% on the month and 6.6% on the year as both durable and non-durable goods sales rose, Nordea said. Retail sales are below the very high level seen before the summer, but still remain at a strong and high level, he added. (DJN)

Switzerland’s Federal Finance Administration has lowered the country’s planned capital market funding for 2021, due to the expected decline in funding needs related to the Covid-19 pandemic. Swiss bond issues now stand at 8 billion Swiss francs ($ 8.64 billion) at face value this year, down 2 billion francs from March 30 estimates. (DJN)

Ecuador’s business-friendly government calls on Washington to sign a free trade agreement to stem rising immigration to the United States. United States (DJN)

 

(END) Dow Jones Newswires

September 29, 2021 09:07 ET (13:07 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.


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