Federal Reserve Chairman Jerome Powell said that it may start to reduce the scale of asset purchases as early as November and complete the process by mid-2022. Fed officials have previously revealed that they are increasingly inclined to start raising interest rates in 2022. Powell said at a press conference after the end of the Fed's policy meeting on Wednesday that the reduction "may be announced at the next meeting at the earliest."

Fed Chairman Jerome Powell stated that if Congress cannot raise the debt ceiling in the next few weeks, leading to a default on government debt, the Fed will not be able to protect financial markets or the U.S. economy from severe shocks. "It is very important to raise the debt ceiling in a timely manner so that the United States can pay due payments," Powell said at a press conference after the Fed's policy meeting.

U.S. President Joe Biden’s huge plan to expand spending on social projects and address climate change may be curtailed due to differences within the Democratic Party. At the same time, the United States may also encounter the risk of a government shutdown and potential default in the next few weeks. With the Democrats in control of Congress and the White House at the same time, the economic consequences of any of the above situations will have a political impact on Biden's party in next year's midterm elections.

Republican leaders in the House of Representatives are wooing against to thwart the cross-party infrastructure bill passed by the Senate. Republican party whip Steve Scalise told Republican lawmakers in an email that the bill is "inseparable from the extremist and socialist 3.5 trillion dollar bill of revenue and expenditure."

The Central Bank of Brazil raised the benchmark interest rate by a whole percentage point and promised to raise it again by the same amount at the October meeting to control inflation that is soaring to 10%. The Central Bank of Brazil decided to raise the Selic interest rate to 6.25% on Wednesday, in line with the expectations of 35 of the 39 economists surveyed by Bloomberg. The other four are expected to raise interest rates even more.

New York crude oil futures rose by 2% at one time, and a US government report showed that domestic crude oil inventories fell to the lowest level since October 2018, indicating that market supply is rapidly tightening. According to the U.S. EIA report, domestic crude oil inventories fell for the seventh consecutive week last week, to about 414 million barrels. Distillate stocks also fell, while gasoline stocks rose slightly.

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