Federal Reserve Chairman Jerome Powell said that the supply bottleneck lasted longer than expected, and he expected inflation to remain high in the next few months before slowing down. "These effects are greater than expected and last longer, but will weaken, and the inflation rate is expected to fall back to our longer-term 2% target," Powell said in a testimony prepared for Tuesday's Senate Banking Committee hearing. "As the reopening continues, constraints such as supply bottlenecks and recruitment difficulties may once again prove to be more serious and longer-lasting than expected, posing an upward risk to inflation."

Fed officials reinforced the message released by the policy meeting last week: may soon begin to shrink the scale of bond purchases, but the economy still has a way to go before it is suitable to raise interest rates. Federal Reserve Governor Lael Brainard said in a speech to the National Association of Business Economics on Monday that labor market conditions may "soon" constitute a reason for underweight. Brainard added: “Any decision to slow down asset purchases should not be seen as a signal about the timing of the first interest rate hike.”

European Central Bank President Christina Lagarde stated in the European Parliament that the inflation rate this fall is expected to rise further from the 3% reached in August, but "we continue to believe that this rise is largely temporary." The impact of measures including rising oil prices and the end of the German VAT rate reduction "should disappear in the next year" raw material shortages may be longer than expected, and rising inflation may also lead to higher than expected wage demand.

The governor of the Bank of England Bailey strengthened the hint to raise interest rates as early as this year and warned that monetary policy has limitations in balancing several forces in the economy in different directions. Bailey said in a speech on Monday that even if the current bond purchase plan is not yet due, the central bank will use the benchmark interest rate as a tool to respond to inflation and tighten monetary policy. However, he added that taking premature action may disrupt the UK's still nascent economic recovery. Faced with soaring consumer prices, the Bank of England is trying to maintain its credibility in fighting inflation.

Senate Republicans blocked a bill that would suspend the debt ceiling until December 2022 and allow the government to continue to function until September 30, forcing Democrats to develop a new strategy to address these two impending and Deadline for severe economic consequences. The senators of the two parties basically voted by party and got a result of 48-50. In other words, the number of support votes is far from the 60 votes required to advance the bill passed by the House of Representatives.

Commercial equipment orders received by US manufacturers increased in August, leading to six months of strong growth in capital goods investment that helped drive economic growth. According to data released by the US Department of Commerce on Monday, core capital goods orders excluding aircraft and defense supplies rose 0.5% in August, after a 0.3% increase in the previous month. Overall durable goods orders rose 1.8% month-on-month in August, reflecting an increase in commercial aircraft orders.

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