Powell’s Rival, Canada’s Rebound, Euro-Area Inflation: Eco Day

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

• President Joe Biden’s choice of who will lead the Federal Reserve may come down to a debate about regulating Wall Street. Progressive Democrats have lambasted Jerome Powell for easing regulations on big banks while some have praised Fed Governor Lael Brainard -- widely seen as the leading rival for the top spot -- for opposing those efforts
• Raghuram Rajan, one of the leading global critics of the Fed’s 2013 “taper tantrum” episode, is now worried that the central bank could fall behind the curve as it gradually removes Covid-era monetary stimulus
  • Fidelity Investments’ Jurrien Timmer meanwhile warned that Fed policymakers only have “a very small window to taper”
• The delta variant has shown more signs of restraining consumer vigor, according to Bloomberg Economics high frequency indicators
• It’s GDP day in Canada -- here’s what to expect 
• Chile is forecast to accelerate the pace of interest rate increases as the economy runs hot and inflation soars while the government continues to pour on fiscal stimulus
• Mexico’s public debt chief, who designs the country’s bond issuances, is stepping down as Finance Minister Rogelio Ramirez de la O rearranges his team after taking over the job
• Euro-area inflation jumped to the highest in a decade in August, testing policy makers’ insistence that a post-crisis spike in cost pressures should prove temporary
• The engine of the German economy is turning into a brake in the face of a global supply crunch, threatening to derail the nation’s recovery

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