• Democrats on the House Financial Services Committee are circulating a proposal that would bar large technology companies such as Facebook Inc. from behaving like financial institutions or issuing digital currencies, according to a copy of the draft legislation. While the legislation, which proposes a $1 million daily fine for rule violations, would likely face Republican opposition, it’s part of a growing chorus of opposition against Facebook’s proposed digital currency Libra. (Reuters)

• President Donald Trump has said he is considering firing Commerce Secretary Wilbur Ross after losing a Supreme Court battle to include a citizenship question on the census, according to multiple people familiar with the conversations. Trump has previously criticized Ross over failed trade negotiations, but their long personal history has kept Ross’ job safe. (CNBC)

• Acting International Monetary Fund chief David Lipton said it “makes sense for monetary policy in the major central banks to remain accommodative,” as U.S. and European monetary policy leaders prepare to meet in France this week. Both the Federal Reserve and the European Central Bank have signaled they might lower interest rates. (Financial Times)

China’s Economic Growth Hits 27-Year Low as Trade War Stings
Keith Bradsher, The New York Times

China’s growth fell to its slowest pace in nearly three decades, officials said on Monday, as a resurgence of trade tensions with the United States and lingering financial problems take an increasing toll on one of the world’s most vital economic engines. Chinese officials said the economy grew 6.2 percent between April and June compared with a year earlier. 

Two Economists Fuel Democratic Debate Over How Far Left to Go
Jacob M. Schlesinger, The Wall Street Journal

For decades, William Darity Jr. and Darrick Hamilton toiled in obscurity. They criticized mainstream economists and politicians for failing to address racial inequality, and touted more radical remedies of their own.

Central Banks Are Tossing Grenades Rather Than Firing Bazookas
Enda Curran, Bloomberg

Central bankers readying to fight another economic downturn are tossing hand grenades rather than firing bazookas. Federal Reserve Chairman Jerome Powell and European Central Bank President Mario Draghi stand ready alongside many of their counterparts to cut interest rates to bolster the weakest growth in a decade and lackluster inflation. 

Trump’s currency war rhetoric persists as Powell prepares to act
Eva Szalay, Financial Times

Donald Trump’s focus on the strong dollar is likely to persist — despite the US Federal Reserve’s hints that it is set to cut rates in a bid to mitigate the currency’s economic impact. In minutes of their latest meeting, published last week, Fed policymakers signalled that rate cuts were likely to offset the greenback’s appreciation.

This Could Be a Rare Time When It’s Smart to Fight the Fed
Conrad De Aenlle, The New York Times

Stocks have set new highs, because so many on Wall Street are following age-old advice: Don’t fight the Fed. Traders who bet on these things have been expecting up to one full percentage point of Federal Reserve interest rate cuts in the next year, starting with either a quarter- or half-point move this month, after ever more emphatic hints that looser monetary policy is imminent. 

Stocks Rise in Busy Week of Earnings, Fed Speakers: Markets Wrap
Laura Curtis, Bloomberg

U.S. equity futures climbed alongside stocks in Europe and Asia at the start of a busy week for Federal Reserve speakers, corporate earnings and economic data. Treasuries held steady with gold, while the dollar edged lower.

As Banks Report Earnings, Fed Looks to Take Away the Punch Bowl
Telis Demos, The Wall Street Journal

What goes up must come down. Rising interest rates have boosted bank earnings for several years, but those days are over.

JPMorgan’s new chief financial officer to make debut before investors
Laura Noonan, Financial Times

When JPMorgan Chase’s new finance boss Jenn Piepszak makes her quarterly earnings debut this week, investors in the biggest US bank will be watching for more than just the usual guidance on dealing with low interest rates. Tuesday’s results will be the first time JPMorgan Kremlinologists can assess Ms Piepszak and her rapport with the bank’s long-serving boss Jamie Dimon since she was named chief financial officer in April.

U.K. Banks Expand Influence as Financial-Crime Rules Reformed
Franz Wild, Bloomberg

A raft of global banks including HSBC Holdings Plc and Morgan Stanley were among those added to a U.K. task force that aims to set strategy for fighting financial crimes in the country, giving the industry more influence over its own regulation. While details were scant, the task force promised in a statement Friday to improve the use of data to bust fraudsters and money launderers, reform reporting of suspicious transactions and establish a new regime for crypto-assets. 

Agencies release update on capital proposal for CRE assets
Hannah Lang, American Banker

The federal banking regulators issued a new proposal Friday asking for further public comment on changing the definition of a “high volatility commercial real estate exposure.” The agencies initially including HVCRE assets among a series of capital-related changes for small banks in a September proposal.

US bundled equity commissions fall by nearly half in decade
Siobhan Riding, Financial Times

US fund managers have cut the amount they pay to brokers in bundled commissions covering both research provision and trading activity, reflecting the global spread of the EU’s Mifid II transparency rules. American fund houses have traditionally paid for equity research with “soft dollars”, meaning that instead of being charged an explicit fee, they receive research in exchange for placing trades with a broker.

Financial Services Committee passes bills to reform credit reporting
Hannah Lang, American Banker

The House Financial Services Committee advanced bills late Thursday to reform the credit bureaus and allow consumers greater access to their credit reports. The legislation all passed the committee along party lines.

Former Freddie Mac CEO Plans to Keep Hand in Housing Finance
Andrew Ackerman, The Wall Street Journal

Freddie Mac faced an uncertain future and heavy turnover when Donald Layton joined the mortgage-finance company seven years ago as its chief executive. Mr. Layton stepped down at the end of June. While Freddie and its larger cousin, Fannie Mae , still operate under federal control through a legal process known as conservatorship, their fortunes have rebounded along with the recovered U.S. housing sector.

Wave of Hispanic Buyers Boosts U.S. Housing Market
Laura Kusisto and Ben Eisen, The Wall Street Journal

Hispanics are experiencing the largest homeownership gains of any ethnic group in the U.S., a turnaround for the population hardest hit by the housing bust that could help buoy the market for years. The homeownership rate for Hispanics has increased more during the past several years than any race or ethnic group, including whites.

Treasury wrestles with how to measure success in Opportunity Zones
Brian Faler, Politico 

Opportunity Zones have been hailed as a boon for the poor, and lambasted as a boondoggle for the rich, but how would anyone know for sure? Thanks to a snafu in Congress, there are no requirements that people participating in the potentially lucrative economic development program detail what they are doing, where they are doing it and why they are doing it.

How a Tax Loophole Is Helping Silicon Valley Workers Save Millions
Paul Sullivan, The New York Times

When Kay Luo joined LinkedIn in 2006, she received a grant of shares with a value of 12 cents each. The company went public in 2011 at $45 a share.

2020 Democrats push tax hike on wealthy investors
Naomi Jagoda, The Hill

Democratic presidential candidates are calling for increasing taxes on capital gains, a move they argue would make the tax code more fair and help to reduce income inequality. Many of the candidates have suggested they might raise tax rates on investment gains and end breaks that allow people to minimize their capital gains tax bills.

Facebook’s Crypto Proposal Unites Trump and Democrats in Disdain
Robert Schmidt et al., Bloomberg

It’s long seemed that nothing could unite President Donald Trump and Democrats on Capitol Hill. Then Facebook Inc. decided to create a cryptocurrency.

Mike Pence: Congress must pass the U.S.-Mexico-Canada Agreement
Mike Pence, The Washington Post

Last month, the government of Mexico ratified the U.S.-Mexico-Canada Agreement. The very next day, Canadian Prime Minister Justin Trudeau met with President Trump at the White House, where he reaffirmed his government’s commitment to passing the USMCA as soon as possible.

The future of work in America: People and places, today and tomorrow
McKinsey & Co.
The US labor market looks markedly different today than it did two decades ago. It has been reshaped by dramatic events like the Great Recession but also by a quieter ongoing evolution in the mix and location of jobs.