Although market participants predict that the Fed will not change its monetary policy after the two-day meeting on Wednesday ends, there are growing calls for policymakers to immediately start to reduce the price, especially as the use of the Fed’s reverse repurchase tool continues to rise. 

US consumer confidence rose for the sixth consecutive month in July, reaching a new high since the outbreak. Americans have become more optimistic about business activities and employment conditions. The Consumer Confidence Index of the World Association of Large Companies released on Tuesday rose to 129.1 from 128.9 in June. Economists surveyed by Bloomberg estimated the median value to be 123.9. Inflation expectations have fallen slightly, but are still at a high level, and the shopping boom has improved.

Due to a large increase in commercial aircraft orders, durable goods orders in the United States increased in June, but the increase was lower than expected; the increase in May was also revised upwards. According to data released by the US Department of Commerce on Tuesday, durable goods orders increased by 0.8% month-on-month in June; the increase in May was revised up to 3.2%. Durable goods orders excluding transportation equipment rose 0.3% in June.

U.S. housing prices once again hit their biggest increase in more than 30 years. According to an announcement issued on Tuesday, nationwide, the S&P CoreLogic Case-Schiller house price index rose 16.6% year-on-year in May, higher than the 14.8% increase in April, and it was the 12th consecutive month that house prices have accelerated. House prices in May set the largest increase since the data was compiled in 1988, setting a new historical record set in April. The lack of available housing options on the market and low interest rates have stimulated house price increases.

The International Monetary Fund continues to predict that global economic growth will rebound the most in 40 years, but adjusted its regional growth forecast, stating that the inequality of vaccine supply will further widen the recovery gap between developed and developing economies. In its latest World Economic Outlook released on Tuesday, the IMF stated that after a 3.2% decline last year, the global economy is expected to grow by 6% in 2021, which is consistent with its April forecast. However, the growth forecast for emerging markets has been revised down from 6.7% to 6.3%, and the growth forecast for advanced economies has been raised from 5.1% to 5.6%.

Pablo Hernandez de Cos, a member of the European Central Bank Management Committee, said that when transitioning to other asset purchases after the new crown crisis, the ECB should consider retaining some of the flexibility in the emergency bond purchase plan. In a written response to Bloomberg’s questions on Tuesday, the governor of the Bank of Spain stated that the “main lesson learned” from the plan is that shifting purchasing preferences to areas most needed in the economy can significantly improve purchasing effectiveness and efficiency.

Apple warned that revenue growth may slow down and the supply of parts and components is becoming increasingly tight, which dampened the investor excitement that has just aroused the record revenue in the third fiscal quarter. Apple's stock price fell 2.9% in after-hours trading. Apple said on a conference call on Tuesday that tight parts supply will affect iPhone and iPad sales in the current quarter. The slowdown in demand for service businesses will also drive a slowdown in revenue. Apple did not provide a fourth-quarter revenue forecast, continuing the practice since the outbreak of the new crown epidemic last year.

Google’s revenue grew strongly in the last quarter, highlighting its position as the world’s most powerful advertising engine. The Internet giant borrowed from the uneven economic recovery after the epidemic to cater to home users who spend more time on screens and consumers who venture out to shop and travel.

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