Fed Chairman Jerome Powell said that after announcing the reduction in debt purchases, officials may remain patient in raising interest rates, but if the inflation situation develops to the point where action is required, the Fed will not back down. He said at a press conference on Wednesday, "We think we can be patient, and if we need to respond, we don't hesitate." Earlier, the Federal Open Market Committee (FOMC) announced that it would reduce the size of monthly asset purchases by $15 billion starting in November.

The quarterly bond issuance plan announced by the U.S. Treasury Department on Wednesday showed that longer-term bond issuance declined for the first time in more than five years. This reflects that as the pandemic relief expenditures ebb, the US government's borrowing needs have also decreased. The U.S. Treasury Department said in a statement on Wednesday that it will sell $120 billion in long-term bonds at an auction next week. This is about $6 billion less than the record issuance in the past three so-called quarterly refinancings.

According to the latest refinancing announcement released on Wednesday, the U.S. Treasury Department stated that there is no need to issue floating-rate notes linked to a secured overnight financing rate (SOFR) to meet its borrowing needs. The Ministry of Finance stated that the current issuance scale and model is “very likely” to provide excessive borrowing capacity. “If such products are reconsidered in the future, the Ministry of Finance will provide sufficient notice to market participants”.

OPEC+ is about to usher in a political showdown with U.S. President Joe Biden. Saudi Arabia and its allies must decide whether to follow U.S. demands to produce more oil. If the organization rejects this request, it may head head-on with the White House, which is worried that inflation caused by high energy prices may derail its economic agenda. If you succumb to pressure to produce more oil, although it may please Saudi Arabia's closest allies, it will also sacrifice the hard-won crude oil price rebound. "Look at oil prices," Biden told reporters at a press conference at the United Nations Climate Change Conference in Glasgow on Tuesday. The high fuel cost is because "Russia or OPEC countries refuse to produce more oil."

The expansion of service providers in the United States reached a record level in October, boosted by strong demand and increased business activities. Data released on Wednesday showed that the Institute of Supply Management (ISM) service industry index rose to 66.7 from 61.9 in September, exceeding all economists’ expectations. New orders and business activity indicators have also risen to the highest levels since statistics were available in 1997, indicating that as the new crown epidemic eased, the economy further accumulated momentum in the beginning of the fourth quarter.

European Central Bank President Christina Lagarde once again tried to weaken the market's bet on a 2022 interest rate hike. Her statement last week failed to convince investors. “In our forward guidance on interest rates, we clearly stated that three conditions must be met before interest rate hikes can begin,” Lagarde said in a speech in Lisbon on Wednesday. "Although the inflation rate has soared recently, the medium-term inflation outlook is still limited, so the probability of meeting these three conditions next year is very low."

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