DELTA PUMPS ECONOMY’S BRAKES — Via Morning Consult's August Economic Outlook report out this a.m.: “The spread of the Delta variant slowed economic activity in July, and added uncertainty to the longer-term outlook for recovery. … Fewer adults were willing and able to work in July, and a smaller share of a shrinking labor force had a job. “Consumer confidence is at its lowest level since March 9, 2021. The decrease, largely driven by worsening expectations of future business conditions, is the sharpest 3-week decline since November 2020.” Via Brad McMillan, chief investment officer at Commonwealth Financial Network on Friday’s jobs report : “[The] outlook looks likely to be too optimistic. The major reason is the sudden resurgence of the pandemic, with the Delta variant taking case growth to five times the level at the end of June. “Beyond the rising medical risks, the job market also faces the question of whether the labor shortage is starting to get better. Medical risks make workers less likely to move back into the labor force, which is a headwind. But there were expectations that the expiration of federal supplemental employment benefits would start to force workers back, which would be an offsetting factor.” DEBT LIMIT LOOMS — Our Caitlin Emma and Jennifer Scholtes: “Democrats are likely to pass up their best chance to avoid a standoff over the debt limit without GOP votes, a move that will thrust Congress into risky territory this fall as the threat of economic ruin approaches. “There will be no language on raising or suspending the debt ceiling in the budget measure Senate Democrats expect to unveil within days to advance a $3.5 trillion spate of liberal spending plans without Republican buy-in, according to a Democratic aide close to budget talks. SEE YOU IN SEPTEMBER — “Instead, the party is looking to a short-term funding bill designed to avert a government shutdown at the end of September as the next opportunity for debt limit action, one top lawmaker said — an approach that would require Republican support.” VACCINE MANDATES SPLIT CORPORATE AMERICA — WSJ’s Chip Cutter, Sarah Nassauer and Bob Tita: “Business leaders broadly agree they need to get more workers vaccinated to keep the U.S. economy humming in the face of the fast-spreading Delta variant. "But they’re split over how best to do that. Some are dangling bigger bonuses or other incentives to cajole employees into getting the Covid-19 vaccine. Others have started requiring workers get the shot. … In recent days, companies from … Walmart … to Microsoft ... have imposed vaccine mandates mostly on white-collar workers returning to offices. Meatpacker Tyson Foods Inc. on Tuesday took a harder line, saying all its workers must get the vaccine by Nov. 1." VIRUS INFECTIONS TOP 200 MILLION — NYT’s Marc Santora and Isabella Kwai: “The known total of global coronavirus infections surpassed 200 million on Wednesday , according to the Center for Systems Science and Engineering at Johns Hopkins University, a daunting figure that also fails to capture how far the virus has embedded itself within humanity. ... “A surge in case numbers has in most cases been followed by a crush of people crowding emergency rooms and, several weeks later, a rise in fatalities. The official tally stands at more than 614,000 deaths in the United States. More than 550,000 in Brazil. More than 425,000 in India.” CRYPTO TAX CHANGES SPUR WH-DEM SENATOR CLASH — Our Kellie Mejdrich, Victoria Guida and Brian Faler: “A bipartisan group of lawmakers are on a collision course with the Biden administration over a push to make last-minute changes to cryptocurrency tax provisions buried in the infrastructure bill before the Senate. “Finance Committee Chairman Ron Wyden (D-Ore.), senior tax writer Pat Toomey (R-Pa.) and Sen. Cynthia Lummis (R-Wyo.) want to narrow who would be subject to new tax reporting requirements that are intended to improve tax compliance among those trading digital currencies. Echoing concerns from the cryptocurrency industry, they say the legislation’s definition of who counts as a ‘broker’ — and therefore subject to the new rules — is overly broad, and will sweep in too many unintended targets. They want to amend the legislation to specifically exclude people like software developers.” Update from Victoria: “The Joint Committee on Taxation found as a result of the amendment, revenue for the $550 billon bill would be reduced by $5.17 billion, according to a person familiar with the estimate. A small fraction of a large bill, to be sure, but source said it would still be ‘a big revenue hole in the bill.’” | 
