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

  • Policy hawks at the Federal Reserve are setting their sights on scaling back the U.S. central bank’s massive intervention in the mortgage market as home prices soar. But the Fed leadership doesn’t sound convinced by arguments in favor of a hasty exit strategy
    • Here’s a look at the mysterious moves in bond markets amid the Fed’s discussion on reducing asset purchases
  • U.S. senators negotiating a $579 billion infrastructure package are aiming to finish negotiations early this week
    • Democrats who control Congress are expressing confidence they can raise the federal debt limit in time to avoid a default this year
  • Only 6% of economists surveyed expect U.S. labor shortages to abate by the end of the year
  • China lashed out at U.S. policies in a tense start to high-level talks in Tianjin, declaring the relationship between the world’s two largest economies to be a “stalemate”
  • Britain’s biggest financial institutions are on track to meet the Bank of England’s deadline to be ready for negative interest rates, giving authorities another tool to aid the economy if needed
  • China’s economy continued its stable pace of recovery in July, though there were some signs of weakness as property sales slumped, small business confidence slipped and the stock market fell
  • Finally, here’s what’s to look out for in the world economy this week

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