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Welcome to Thursday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

  • Congressional Democrats are at odds over both the tax and spending sides of a bill to enact the bulk of President Joe Biden’s economic agenda
  • Federal Reserve Bank of San Francisco President Mary Daly said the pandemic will spur longer-term reforms of the Treasury market to ensure there’s sufficient liquidity in a future crisis and that people are aware of it
  • The Fed is going into battle with a plan ill-suited to the current environment, increasing the risks of a major monetary policy error, says Bill Dudley of Bloomberg Economics
  • Brazil’s economy chief said the government could seek a “waiver” to the country’s spending cap to fund its new social program, just hours after President Jair Bolsonaro said the extra spending would abide by the fiscal rule
  • Jens Weidmann’s decision to quit as Bundesbank president offers a unique opportunity to reshape the institution just as a generational shift takes hold in politics with the exit of Chancellor Angela Merkel
    • The European Central Bank will probably start laying the foundations next week for the big decisions to be made in December on asset purchases, according to Bloomberg Economics
  • U.K. government borrowing was significantly lower than forecast in the first half of the fiscal year but a surge in debt costs sent a warning to Chancellor of the Exchequer Rishi Sunak ahead of his budget next week
  • IMF says China has policy options to cushion economy’s slowdown
  • Strong gains in South Korea’s exports this month suggest global demand is holding up despite headwinds from supply chain snags and an energy crunch disrupting Chinese production
  • Finally, check out this week’s Stephanomics podcast: Why central bankers are in such a precarious spot in this chaotic pandemic recovery

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