THE U.S. EXPECTED AN ECONOMIC TAKEOFF, BUT GOT A SLOWDOWN INSTEAD — WSJ's Eric Morath and Theo Francis: "The U.S. economy is facing a slowdown in September, rather than the takeoff once hoped for. Earlier this summer, many economists saw the week of Labor Day as the moment when the economic recovery would kick into high gear. Their expectation was that widespread vaccination would ease labor shortages. "Schools and offices would reopen, which would mean a comeback for local businesses reliant on office workers. Travel would rebound. Stevie Nicks would be back on tour. Instead, the rise of Covid's Delta variant has the nation tapping the brakes." INFLATION IS POPPING FROM SYDNEY TO SAN FRANCISCO — NYT's Jeanna Smialek: "Price gains are shooting higher across many advanced economies as consumer demand, shortages and other pandemic-related factors combine to fuel a burst of inflation. The spike has become a source of annoyance among consumers and worry among policymakers who are concerned that rapid price gains might last. It is one of the main factors central bankers are looking at as they decide when — and how quickly — to return monetary policy to normal. "Most policymakers believe that today's rapid inflation will fade. That expectation may be reinforced by the fact that many economies are experiencing a price pop in tandem, even though they used vastly different policies to cushion the blow of pandemic lockdowns." WHITE HOUSE: STATES TO DECIDE WHETHER TO EXTEND JOBLESS BENEFITS — Reuters' Trevor Hunnicutt and Nandita Bose: "Local officials who want to extend enhanced unemployment benefits can do so, the White House said on Tuesday, a day after the administration and U.S. Congress allowed a program to lapse which had boosted payments during the Covid-19 pandemic. Programs providing up to $300 extra a week to millions of people who lost their jobs during the pandemic ended on Monday as the U.S. celebrated Labor Day. "Benefits were also available for people who normally do not qualify for state unemployment money, with checks going to those without jobs for an extended period of time and to 'gig workers' who perform on-demand services, including as drivers, delivering groceries or providing childcare. Those people will be cut off entirely." JOBS REPORT LIKELY DERAILS CASE FOR SEPTEMBER FED TAPER — WSJ's Nick Timiraos: "The slowdown in job growth in August is likely to spoil the case for the Federal Reserve to start reversing its easy-money policies at its next policy meeting, but steady hiring could still lead officials to begin reducing their bond purchases later this year. "At their most recent meeting on July 27-28, Fed officials indicated they were on track to begin scaling back their easy-money policies later this year. A strong July employment report in the days that followed led some reserve bank presidents to call for the Fed to reduce, or taper, its $120 billion in monthly bond purchases at its meeting this month." FIVE CHALLENGES THE FED CHIEF MAY FACE IN THE NEXT FOUR YEARS — Reuters' Ann Saphir and Jonnelle Marte: "U.S. President Joe Biden's coming decision of whether to reappoint Federal Reserve Chair Jerome Powell after his term expires in February or hand the reins to somebody else will arrive at a critical juncture for the central bank. Progressive Democrats want the Fed to take on a more expansive role in the economy, by beefing up efforts to bolster employment, heading off climate risk and addressing inequality. "Conservatives want it to stick to its monetary policy lane, pay more attention to tamping down inflation and reduce its footprint in financial markets and on the oversight front. Whoever the Democratic president picks, the next Fed chief will need to tackle major questions about monetary policy and the nature of money." DEALS SPREE PUT BANKS ON TRACK FOR BUSIEST-EVER YEAR — WSJ's Peter Rudegeair and David Benoit: "Takeovers are taking over. Companies world-wide embarked on an unprecedented deal spree this year, emerging from the depths of the pandemic looking to bulk up and address the vulnerabilities it exposed. Simultaneously, buyout firms and blank-check companies have been deploying hundreds of billions of dollars at a feverish pace. "In the first eight months of 2021, companies have announced mergers and acquisitions worth more than $1.8 trillion in the U.S. and more than $3.6 trillion globally, according to data provider Dealogic. Both figures are the highest at this point in a year since at least 1995, when Dealogic started keeping records. Deals are on track to surpass their record set in 2015." TRANSITIONS — Raffi Williams has joined Edelman as a VP on the financial comms team, focused on real estate and REITs. He previously was acting comms director at the Federal Housing Finance Agency, and is a HUD, RNC and Steve Scalise alum. … Heidi Shierholz has been tapped as the new president of the Economic Policy Institute. She currently is senior economist and director of policy at EPI. … Lila Nieves-Lee is now senior director for U.S. government engagement at Visa. She most recently was at Autos Drive America and is a Hill alum. … Erica Riordan is joining the American Gaming Association as director of government relations. She most recently was at Atlas Crossing, and is a Dina Titus alum. | 
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