America’s Missing Workers, Fed Hawks, Brazil Rate Hike: Eco Day

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

• The U.S. economy is in the midst of an historic comeback. But it’s happening with the lowest rate of labor force participation in more than four decades and a record number of unfilled jobs. It leaves economists, policymakers, and investors wondering: Where have all the workers gone?
• Money-market concerns that a weaker-than-expected economy might delay Federal Reserve policy tightening proved short-lived Wednesday, with hawkish comments from Vice Chairman Richard Clarida helping to cement best for an initial rate hike in early 2023
• Brazil’s central bank lifted its key rates by a full percentage point, its biggest hike since 2003, and promised another increase of the same magnitude in September as the country’s economic reopening and a severe drought raise market expectations that inflation will remain above target through next year
• Two senior Senate Democrats are proposing to end a prized tax break for the private-equity industry in a new bill that would go further than President Joe Biden’s plan and potentially raise quadruple the revenue
• Listings for single-family homes are getting scarcer in New York City’s suburbs, and that’s putting a dent in sales
• Canada’s largest business lobby group wants the nation’s political parties to focus on long-term growth issues as they get ready for elections as early as next month
• Toronto housing sales dropped for a fourth straight month, but a shortage of available properties kept prices near the highs they reached earlier this year
• The Bank of England said it plans to start unwinding quantitative easing when the key rate hits 0.5%. The U.K. central bank also raised its forecast for where inflation will peak

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