Fed Decision Day, Brazil to Hike Rates, Debt Ceiling: Eco Day

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

• The Federal Reserve is expected to signal scaling back asset purchases later this year, with scrutiny also on forecasts that could reveal growing internal pressure to raise interest rates in 2022
  • The decision, which includes updated projections for interest rates, is at 2:00 p.m. local time and will be followed by a press conference with Powell 30 minutes later
  • Powell’s task of convincing investors that the time might be coming to start withdrawing stimulus is made more difficult by the myriad risks facing the global economy
  • Here’s what Bloomberg Economics is watching for today
• Brazil’s central bank will likely lift its benchmark interest rate by a full percentage point for the second straight meeting, as policy makers pledge aggressive action to tame above-target inflation expectations
• The Democrat-controlled House approved a bill to keep the federal government funded past Sept. 30 and to suspend the debt ceiling for a year
  • Republican opposition in the Senate means the move is sure to fail when it reaches that chamber
• U.S. mortgage lenders initiated 69% more foreclosures in August than the prior month, after the expiration of a federal measure that prevented borrowers from losing their homes during the pandemic
• Mexico’s government is considering using the $7 billion of international reserves it bought from the central bank this month for purposes other than prepaying debt of the nation’s oil giant Pemex, according to three people with knowledge of the matter
• How the child care crisis became a global economic fiasco

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