Economists surveyed by Bloomberg predict that Fed officials will accelerate the pace of contraction in bond purchases this week and signal a 2022 interest rate hike, staged a historic policy change in the face of the strongest inflation since the 1980s. More than half of the respondents expect that the quarterly forecast released by the Fed after the two-day policy meeting on Wednesday will show that the median forecast of 18 officials is to raise interest rates twice next year. This is a change from their September forecast. At that time, policymakers were evenly divided on the forecast of the first interest rate hike in 2022 or 2023. Bloomberg's survey of 49 economists was conducted on December 3-8.

The latest consumer survey by the Federal Reserve Bank of New York shows that US consumers’ inflation expectations for the next year have risen to a new high of 6%. The survey also showed that three-year inflation expectations fell for the first time since June, reaching 4%, mainly driven by the expectations of respondents without a college degree. However, both the short-term and the long-term, the level of uncertainty about inflation is rising, and both have reached record highs. This result highlights the unpredictability of the recent surge in inflation that has surprised the Fed and most economists. The Fed may announce at an upcoming policy meeting that it will accelerate the pace of underweight bond acquisitions.

The Bank of Canada will maintain an inflation target of 2% for the next five years, but allow a small excess of the target to support sustainable employment maximization. In a statement issued jointly with the Canadian government on Monday, the Bank of Canada added a new requirement that if necessary, officials will use a control range of 1%-3% to "continue" to support employment levels, but at the same time emphasize the inflation target. As the first priority.

Majority leader Chuck Schumer said that the Senate will vote on legislation to raise the government's debt ceiling to avoid default risks, but did not say how much. The Senate requires a simple majority to pass, which will then be passed to the House of Representatives for a vote. The Democratic leader of the House of Representatives has promised to act quickly. "The Senate will take action tomorrow to prevent defaults," Schumer said in a speech in the Senate on Monday. Democrats said they hope to raise the debt ceiling in order to extend the US debt authorization beyond the 2022 midterm elections.

White House spokesperson Jen Psaki said that President Joe Biden hopes to announce his nominees for other positions in the Fed soon, but also said that there is no specific date for the announcement. "Of course, this is something we hope to be able to do as soon as possible, and we hope it can be done before the president and everyone are on holiday to reunite with their families."

As Bitcoin continued its downward trend from its all-time high to its fifth week, a closely watched price level fell below Monday. The largest cryptocurrency fell 8.4% to US$45,773 during the New York session on Monday, breaking below the 200-day moving average (currently around US$46,720). The Bloomberg Galaxy Cryptocurrency Index fell as much as 6.3%, to its lowest point since early October; some trendy cryptocurrencies such as Solana, Cardano and Polkadot fell even more.

The Organization of the Petroleum Exporting Countries (OPEC) sharply raised its forecast for global oil demand in the first quarter, because although this year's demand recovery was delayed to some extent by the new coronavirus variant Omicron, the overall risk of the virus is still limited . According to the monthly report of the organization's research department, OPEC raised its forecast for average daily consumption in the first quarter by 1.1 million barrels, which is equivalent to the annual demand growth in the usual years before the outbreak. "As the world becomes more capable of responding to Covid-19 and its related challenges, the impact of the new Omicron variants is expected to be mild and short-lived," the report said.

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