• Today, President Joe Biden will propose tightening “Buy American” rules, including a requirement that goods purchased with taxpayer funds have 75 percent American-made content by 2029 after initially rising to 60 percent from the current level of 55 percent. The proposal, which has a 60-day comment period, will also emphasize that the federal government should buy critical domestically produced goods and would require contractors to provide more data on the American-made content of the goods they purchase. (The Washington Post) 
• The President’s Working Group on Financial Markets, a group led by Treasury Secretary Janet Yellen, focused on Tether and the Facebook Inc.-backed Diem tokens in a recent meeting, according to people familiar with the matter, especially Tether’s claims that it holds large amounts of commercial paper that some participants worried could be similar to an unregulated money-market mutual fund. Yellen asked agency leaders to “act quickly” to make sure stablecoins have appropriate regulation, the Treasury Department said. (Bloomberg)
• An internal inquiry by Credit Suisse Group AG is expected to outline the bank’s failure to monitor tens of billions of dollars in exposure that grew related to Archegos Capital Management, people briefed on the report said. Credit Suisse could release the results of the inquiry as it reports earnings on Thursday. (Bloomberg) 
• Senate Majority Leader Chuck Schumer (D-N.Y.) said that he’s “hopeful” lawmakers can reach an infrastructure deal soon after last-minute holdups pushed the bipartisan group negotiating the deal past a Monday deadline. On one issue that held back lawmakers this week, funding for public transit, Republicans have recently made “an extraordinarily generous” offer, according to Sen. Susan Collins (R-Maine). (The Wall Street Journal) 

Voters’ Inflation Worries Emerge as an Economic Weak Spot for Biden

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Small Business Administration to revamp PPP forgiveness in bid to end historic program

Zachary Warmbrodt, Politico

The Small Business Administration this week will begin a push to accelerate the end of the nearly $1 trillion Paycheck Protection Program by making it easier for millions of employers to have emergency payroll loans forgiven. The SBA on Wednesday plans to outline a new initiative aimed at encouraging borrowers with loans of $150,000 or less — accounting for more than 90 percent of the pandemic-era program — to apply for loan forgiveness.

Workers’ Anxiety Grows as Covid Variant Casts a Shadow

Noam Scheiber, The New York Times

When Kelly Harris, a personal grocery shopper in Steubenville, Ohio, was vaccinated in March against Covid-19, it was a huge relief. “I felt the weight of the world off my shoulders,” she said. Her sense of relief has turned to dread. After most supermarkets eased masking requirements in May, mask wearing plummeted in her area. 

As Infections Rise, C.D.C. Urges Some Vaccinated Americans to Wear Masks Again

Apoorva Mandavilli, The New York Times

Revising a decision made just two months ago, the Centers for Disease Control and Prevention said on Tuesday that people vaccinated against the coronavirus should resume wearing masks in public indoor spaces in parts of the country where the virus is surging. C.D.C. officials also called for universal masking for teachers, staff, students and visitors in schools, regardless of vaccination status and community transmission of the virus. 

Late tax refunds, stimulus money and child tax credit payments frustrate families, and poor IRS communication isn’t helping

Michelle Singletary, The Washington Post

When you promise people something and they see others getting it while they do not, it can make them angry. This sums up the feelings of many struggling families who are still waiting for the IRS to send them their tax refunds, stimulus payments, or monthly installments of the advance child tax credit — or all three.

Will the Delta Variant Wreck the Recovery?

Neil Irwin, The New York Times

The good economic news, when it comes to the ascendant Delta variant of the coronavirus, is that it puts the economy at risk in only two ways. The bad news: They are supply and demand.

Fed Meeting Will Focus on Tapering Timeline

Nick Timiraos, The Wall Street Journal

Federal Reserve officials are set to resume deliberations Wednesday about how and when to begin paring their asset purchases amid an economic rebound clouded by supply-chain bottlenecks and rising Covid-19 cases. The central bank at the end of last year said it would continue to purchase $120 billion in Treasurys and mortgage-backed securities monthly until officials deemed they had achieved “substantial further progress” toward their goals of low unemployment and inflation reaching their 2% goal.

The I.M.F. warns of a lopsided economic recovery but retains its 6 percent global growth forecast.

Alan Rappeport, The New York Times

The International Monetary Fund warned on Tuesday that the gap between rich and poor countries was widening amid the pandemic, with low vaccination rates in emerging economies leading to a lopsided global recovery. The I.M.F. maintained its 2021 global growth forecast of 6 percent in its latest World Economic Outlook report, largely because advanced economies, including the United States, expect slightly faster growth than the global body previously forecast.

Jumping prices and the ghost of 2013’s market meltdown loom over the Fed.

Jeanna Smialek, The New York Times

Federal Reserve officials are gathering in Washington this week with monetary policy still set to emergency mode, even as the economy rebounds and inflation accelerates. Economists expect the central bank’s postmeeting statement at 2 p.m. Wednesday to leave policy unchanged, but investors will keenly watch a subsequent news conference with the Fed chair, Jerome H. Powell, for any hints at when — and how — officials might begin to pull back their economic support.

Durable-Goods Orders Advanced in June as U.S. Economy Continues to Grow

John McCormick, The Wall Street Journal

Orders for cars, appliances and other durable goods increased in June, signaling continued strength in the U.S. economy as manufacturers continue to deal with shortages in parts and labor and confront higher material costs. New orders for products meant to last at least three years increased 0.8% to a seasonally adjusted $257.6 billion in June as compared with May, the Commerce Department said Tuesday. Economists surveyed by The Wall Street Journal had estimated a 2% gain.

Wall Street’s Return to Manhattan Dims Suburban Office Dreams

Natalie Wong et al., Bloomberg

It was a tantalizing idea early in the pandemic: With New York skyscrapers emptied and bankers hunkered down in homes outside the city, a handful of finance firms decided to scout alternate office locations in areas like New Jersey, Stamford and Long Island. That interest has fizzled.

Deutsche Bank Posts Surge in Profit but Faces Headwinds

Patricia Kowsmann, The Wall Street Journal

Deutsche Bank AG’s results signaled that the bumper profits accruing to its investment bank may have peaked, exposing the deeper challenges the lender faces two years into a strategic makeover. The Frankfurt-based bank reported a drop in investment-banking revenue in the second quarter as booming client activity during the pandemic slowed down.

Barclays Profit Soars on Investment Banking

Simon Clark, The Wall Street Journal

Barclays BCS -0.21% PLC Wednesday said its net profit rose in the second quarter, driven by a strong performance in its investment bank. The London-based bank earned £2.11 billion, equivalent to $2.92 billion, in the three months to the end of June, up from £90 million in the same period last year.

Visa Card Spending Buoyed by Return of Travel, Crypto Frenzy, Stimulus Checks

Jennifer Surane, Bloomberg

Visa Inc. warned the frenzy in cryptocurrencies is beginning to moderate, a trend that may offset broader cross-border spending growth on the firm’s cards. Overseas spending — a key metric because such transactions are more lucrative — jumped 47% in Visa’s fiscal third quarter, topping analyst estimates.

Schumer, Warren call on Biden to extend student loan pause and wipe out $50K per borrower

Sylvan Lane, The Hill

Senate Majority Leader Charles Schumer (D-N.Y.), Sen. Elizabeth Warren (D-Mass.) and Rep. Ayanna Pressley (D-Mass.) on Tuesday called on President Biden to extend the pause on federal student loan payments and wipe out $50,000 per borrower. The trio held a press conference Tuesday at the Capitol to push Biden toward renewing and dramatically expanding relief for millions of Americans who owe the federal government more than $1.6 trillion in college debt.

Beijing’s threat to VIEs triggers Wall Street angst over China stocks

Tabby Kinder et al., Financial Times

Investors worry crackdown on structure used by education companies could spread to other sectors.

Hot Housing Market Lets Banks Sell Mortgage Risk

Julia-Ambra Verlaiine, The Wall Street Journal

A red-hot housing market is enabling banks to sell a new kind of bond that shares the risk of mortgage and loan defaults with institutional investors. Texas Capital Bank recently sold $275 million of securities to investors looking to cash in on the pandemic-fueled boom in home prices. 

The chairman of a House coronavirus subcommittee vows to investigate eviction practices by corporate landlords.

Matthew Goldstein, The New York Times

Just days before the federal moratorium on evictions is set to expire, lawmakers scrutinized the actions of corporate landlords that have filed tens of thousands of actions seeking the removal of tenants during the pandemic. Representative James E. Clyburn, the chairman of the House Select Subcommittee on the Coronavirus Crisis, said the hearing was the opening salvo of an investigation into what he called “unjustified eviction practices” by some large landlords.

Democrats press Biden to extend eviction ban

Katy O’Donnell and Kellie Mejdrich, Politico

The White House is facing increasing pressure from Democrats in Congress to extend the federal eviction ban before it expires this weekend amid persistent bottlenecks in the distribution of rental aid. House Financial Services Chair Maxine Waters (D-Calif.) said she is pushing the Biden administration to renew the moratorium beyond a Saturday deadline despite concerns that an extension would rest on shaky legal footing.

U.S. Home-Price Growth Rose to Record in May

Nicole Friedman, The Wall Street Journal

Home-price growth climbed to a new record in May, as low mortgage interest rates continued to drive robust homebuying demand. The S&P CoreLogic Case-Shiller National Home Price Index, which measures average home prices in major metropolitan areas across the nation, rose 16.6% in the year that ended in May, up from a 14.8% annual rate the prior month.

Warren urges Yellen to crack down on cryptocurrency

Kellie Mejdrich, Politico

Sen. Elizabeth Warren is pressing Treasury Secretary Janet Yellen to rally federal agencies to develop a “coordinated and cohesive regulatory strategy” on cryptocurrencies, which the Massachusetts Democrat says pose growing risks to the financial system. Warren told Yellen in a letter released Tuesday that she should tap the Financial Stability Oversight Council — a panel of top regulators that the Treasury secretary chairs — to “act with urgency.”

Binance CEO says he’s willing to step down as world’s biggest crypto exchange welcomes regulation

Ryan Browne, CNBC

The boss of cryptocurrency exchange Binance says he’s willing to step down from his role as the company seeks to become a regulated financial institution. Speaking at a virtual press conference Tuesday, Changpeng “CZ” Zhao said he had no immediate plans to quit his role but that the company does have a succession plan in place.

Mastercard Works With Startups to Ease Use of Cryptocurrencies

Jennifer Surane, Bloomberg

Mastercard Inc. is looking to make it easier for consumers to buy, spend and hold cryptocurrencies. Startups focused on crypto and digital assets will now be able to join Mastercard’s Start Path program, which gives fledgling companies access to the network’s executives and technology to help them grow, Mastercard said Tuesday in a statement.

What to Know About Robinhood’s IPO

Julia Carpenter and Bourree Lam, The Wall Street Journal

Robinhood Markets Inc.’s initial public offering is stirring interest among individual investors. The trading app, which now has 22.5 million funded accounts and fueled a number of meme stock rallies in the past year, is urging its own customers to invest.

Visa-backed payments firm Conductor readies U.S. IPO – sources

Carolina Mandl, Reuters

Brazilian payments firm Conductor has hired banks for an initial public offering in the United States that could come as early as this year, as Latin America’s financial sector is enlivened by the arrival of several newcomers, three sources familiar with the matter said. Conductor, which is backed by venture capital firm Riverwood Capital and payments processor Visa Inc (V.N), is a provider of technology for financial services. 

They Survived Covid. Now They Face Eviction.

Sema K. Sgaier and Aaron Dibner-Dunlap, The New York Times

Alongside the prospect of a new surge in coronavirus infections, another crisis is on the horizon: A nationwide wave of evictions threatens more than six million families that have fallen behind on rent. The true extent of the threat has been masked by a national moratorium on evictions.