Fed Trades, U.S. Debt Limit, House Price Watch: Eco Day

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Welcome to Tuesday, Americas. Here’s the latest from Bloomberg Economics to help you start your day: 

• The Federal Reserve is coming under greater scrutiny from inside and outside its walls following revelations about market trading by senior officials
• President Joe Biden warned that the U.S. government is at risk of breaching the legal limit on its debt in two weeks, blaming Senate Republican Leader Mitch McConnell for what he described as a “meteor” headed for the economy
  • Treasury Secretary Janet Yellen said she opposes a $1 trillion coin to cope with the debt ceiling, saying it’s a “gimmick”
• Toronto home sales posted their first increase in six months as the end-of-summer holidays finally brought buyers some new supply, though it still wasn’t enough to alleviate a historically tight market or keep prices from continuing their upward march
  • Manhattan apartment sales surged to a record in the third quarter as buyers grabbed what they could while inventory remains high
• The euro-area economy is entering a more difficult phase of its recovery: A series of international supply shocks are lifting inflation, which could weigh on real spending and stymie industry, according to Bloomberg Economics
  • ECB Governing Council member Robert Holzmann is clinging to the hope inflation spike will fade, while Francois Villeroy De Galhau says policy makers need to be “vigilant, but not feverish”
• Japanese Finance Minister Shunichi Suzuki said the nation’s incoming government will seek a new type of capitalism that helps tackle wealth inequality, but on questions around the sales tax, debt and the central bank he sounded like the official he replaced a day earlier
• Afghanistan’s fragile economy is collapsing as cash disappears

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