Good day. Hoping to stoke economic growth, governments are trying to raise vaccination rates to ease worries of consumers about Covid-19 infection so they spend more on travel, dining out and other activities that involve proximity to others. Also, reducing case counts would mean fewer government shutdowns of ports, factories and other operations critical to global supply chains. That disruption, along with labor shortages and demand driven by monetary and fiscal stimulus, may persist for some time, adding to global inflation concerns. The Fed is expected to give its latest view on inflation, along with other economic matters, this week during its policy meeting.

Now on to today's news and analysis.

Top News

Vaccinations Boost the Global Economy, but May Not Cure It Alone

The global recovery is slowing as Covid-19 resurges, spurring governments to try to raise vaccination rates in hopes of fueling stronger economic growth.

However, it isn't clear that higher vaccination rates alone will do the trick. In Europe, growth has surged as rates have climbed this year. But in the U.S., economic activity slowed notably through the summer as the Delta variant of the virus spread, despite rising inoculation rates.

Fedspeak Cheat Sheet: What Officials Said Before September Meeting

Federal Reserve officials have been teeing up a pullback in their bond-buying stimulus in the weeks since their July FOMC meeting. Here is a roundup of recent comments from Fed officials ahead of September's policy meeting.

Derby's Take: More Rate Rises Seen Creeping Into Fed's Dot Plot

By Michael S. Derby

Economists expect the Federal Reserve's so-called dot plot chart to show a more hawkish monetary policy outlook when the central bank releases it this week, compared with the Fed's last round of forecasts in June. Read more.

U.S. Economy

Democrats Press Ahead With Debt-Limit Vote Amid Standoff With GOP

A battle over raising the U.S. borrowing limit is expected to ratchet up, with Democrats moving ahead with a vote in the face of GOP opposition, raising doubts about whether Congress will act before the government runs out of cash.

What the Infrastructure Bill Would Help Fix First

Officials across the U.S. are gearing up for a potential cash infusion from the infrastructure bill, planning to speed up repairs of bridges, fix battered rural roads and overhaul a key distribution route for hot dogs and rice cakes.

Rust Belt City's Pitch for a Hot Housing Market: Free Homes

Houses are more expensive than ever, but the mayor of Monessen, Pa., a town on a curve of the Monongahela River, is giving them away for free, as many are in disrepair and have accrued thousands of dollars in back taxes.

Key Developments Around the World

Covid-19 Lockdowns in Asia Deepen Commodity Supply-Chain Pain

The recent surge in Covid-19 cases in Southeast Asia has throttled ports and locked down plantations and processors, sparking extended disruptions of raw materials such as palm oil, coffee and tin.

China's Bid to Join Trade Group Puts Members in an Awkward Spot

A decade ago, it was a trade club led by the U.S. seeking to limit the influence of China's economic model. Now Washington is out of the Trans-Pacific Partnership and Beijing wants in -- as the group's biggest member.

Economic Meltdown Leaves Afghans Scrambling to Survive

While many Afghans watch anxiously to see how the Taliban will govern, opponents and supporters alike agree Afghanistan faces an economic crisis threatening to unspool whatever gains remain of U.S.-funded nation-building.

Financial Regulation Roundup

U.S. to Target Crypto Ransomware Payments With Sanctions

The Biden administration is preparing an array of actions, including sanctions, to make it harder for hackers to use digital currency to profit from ransomware attacks, according to people familiar with the matter.

Democrats Seek Backup Plan on Taxing Capital Gains

Entrenched opposition from some Democrats to a White House plan to tax unrealized capital gains at death has pushed the party to look for alternative methods of collecting additional taxes from wealthy Americans' appreciating assets.

Hong Kong Considers Allowing SPAC Listings

Hong Kong is considering whether to allow listings of blank-check companies, potentially opening the doors to a wave of Chinese-focused deals involving special-purpose acquisition companies.

Kyrgyzstan Blocked From London Gold Trading Over Missing Bars

The organization that oversees London's gold trading has blocked metal mined in Kyrgyzstan from entering the city's market, dealing a blow to the central Asian nation's bullion-dependent economy.

Forward Guidance

Tuesday (all times ET)

Time N/A: U.S. Federal Reserve begins two-day policy meeting; National Bank of Hungary releases policy statement; Bank Indonesia releases policy statement; Central Bank of Nigeria releases policy statement

3:05 a.m.: European Central Bank's de Guindos speaks at virtual Financial Times conference on strengthening Europe's financial sector

3:30 a.m.: Riksbank releases interest-rate decision and monetary policy report

8:30 a.m.: U.S. Commerce Department releases August housing starts

12:15 p.m.: European Central Bank's Enria speaks virtually at Spanish Banking Association conference

Wednesday

Time N/A: Central Bank of Brazil releases policy statement; Bank of Japan releases policy statement

6:30 a.m.: European Central Bank's Enria speaks via webcast at Financials CEO Conference organized by BofA Securities

10 a.m.: National Association of Realtors releases August U.S. existing-home sales

2 p.m.: U.S. Federal Reserve releases policy statement and economic projections

2:30 p.m.: Fed's Powell holds virtual press conference

Commentary

Inflation Is All Over the Place

In the short term, inflation will probably calm down as supply chains and travel return to normal, but there is a decent chance that it takes much longer than the Federal Reserve hopes, James Mackintosh writes.

Another Trade War, Another Stalemate?

It is a risky time to launch a trade war, as supply chains are snarled, shipping costs are through the roof and the Delta variant is ravaging economies, but the world just might get one anyway, Nathaniel Taplin writes.

Basis Points

U.S. companies have sold more than $786 billion of junk-rated bonds and loans so far in 2021, according to S&P Global Market Intelligence's S&P. That tops the previous high for a full year in data going back to 2008.

Natural-gas prices have surged, prompting worries about winter shortages and forecasts for the most expensive fuel since frackers flooded the market more than a decade ago.

U.S. consumer sentiment remained broadly unchanged in early September, staying at subdued levels after August's big drop triggered by rising Covid-19 cases due to the spread of the Delta variant, with the preliminary estimate of the University of Michigan's index of consumer sentiment at 71.0, compared with 70.3 last month. (Dow Jones Newswires)

Italy is making Covid-19 health passes mandatory for all workers in the private and public sectors, in one of the toughest vaccine-promoting measures adopted by any major Western country. (DJN)

Economic activity in Mexico likely slipped 0.2% in August after a 1% increase in July, statistics institute Inegi said, noting services were likely flat while industrial production likely decreased by 0.5%. (DJN)

Peru will see GDP growth of 3.4% in 2022, down from a previously projected 4.5%, as private investments are seen dropping off as companies hold off on projects amid political uncertainty, the country's central bank said. (DJN)

(END) Dow Jones Newswires

September 20, 2021 09:11 ET (13:11 GMT)

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