(Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.
Welcome to Monday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:
- The chatter in U.S. financial markets is all about the Federal Reserve’s yet-to-be-announced reduction of its bond purchases. That’s obscuring something important: the already-under-way cutback of the federal government’s budgetary support -- which is likely to have a much bigger impact on economic growth next year
- The fate of President Joe Biden’s economic agenda rests largely on Speaker Nancy Pelosi navigating deep Democratic rifts and the minefield of promises she’s made to keep the party’s moderate and progressive wings moving toward her goal
- Treasury Secretary Janet Yellen renewed her call for Congress to raise or suspend the U.S. debt ceiling, saying the government will otherwise run out of money to pay its bills sometime in October
- While the House is due to vote on the issue this week, Senate Minority Leader Mitch McConnell has so far rejected appeals to support the measure
- The precise date when the U.S. runs out of money is not knowable in advance due to volatility of cash flow
- Developing nations are facing more difficult choices than advanced economies in dealing with debt burdens that exploded during the Covid-19 pandemic, according to a new paper co-authored by Carmen Reinhart and Kenneth Rogoff
- Finally, here’s what’s to look out for in the world economy this week
©2021 Bloomberg L.P.