Most Fed officials believe that this year can start to slow down bond purchases, because the economy has achieved its inflation target and the job market is closer to reaching the so-called "further substantive progress" standard. The minutes of the July 27-28 meeting released by the Federal Open Market Committee showed that "Some participants commented that economic and financial conditions are expected to support debt reduction in the next few months, but others believe that it will slow down early next year. The pace of debt purchases may be more appropriate." The minutes of the meeting also showed that most attendees “judged that it might be appropriate to start reducing the pace of asset purchases this year”.

Due to the abundant funds in the U.S. dollar, the use of one of the Fed's major policy tools hit a record high on Wednesday. Eighty-two participants used the Fed's overnight reverse repurchase tool to reach an unprecedented level of $1.116 trillion. Through reverse repurchase overnight, counterparties such as money market funds can deposit their cash in the Federal Reserve. Fed data shows that the above scale exceeds the historical high of 1.087 trillion U.S. dollars set on August 12.

The World Trade Organization (WTO) said that global merchandise trade may be about to slow down-although it is at a record high level, due to regional imbalances and the slowdown in economic activity caused by the new crown epidemic, the prospects for trade will be clouded. According to a statement posted on its website by the Geneva-based WTO on Wednesday, its Merchandise Trade Weather Index rose to 110.4 in March, the highest level ever recorded in 2016. The agency said that although this indicator is still higher than the long-term average, but the growth rate is slowing down, "may indicate that the upward trend of trade is peaking."

According to a paper by the Peterson Institute for International Economics, the global transition to a carbon-neutral economy will lead to economic chaos similar to the energy crisis of the 1970s. Jean Pisani-Ferry, an economist at the Washington-based think tank, pointed out that even if the efforts to cut emissions significantly are digestible in the long run, the direct impact of the hard adjustments required may be related to the impact of oil price shocks. The periods of economic downturn and out-of-control inflation are similar.

The number of new housing starts in the United States fell more than expected in July, and building permits increased, highlighting that continued shortages of materials and workers continue to curb construction industry activity. According to government data released on Wednesday, housing starts fell by 7% last month to a three-month low of 1.53 million units per year. However, building permits increased by 2.6% in July.

“CME Group denies all rumors that it is discussing the acquisition of Cboe Global Markets,” the company said in a statement. "The company did not have any discussions with Cboe," CME Group said. "Although the company usually does not comment on rumors or speculation, today's inaccurate information needs to be corrected."

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