Fed Chair Jerome Powell is in the hot seat today as he heads before Congress for his semiannual testimony on monetary policy. Inflation, which was once the elephant in the room, is set to become the most heated topic at the grilling following yesterday's data on rising costs across the American economy. The Consumer Price Index grew at its fastest clip since August 2008, climbing 5.4% year-over-year versus a forecast of 4.9%.

BlackRock’s assets under management swelled to a record $9.5tn in the second quarter, boosted by robust financial markets that spurred inflows into actively managed and exchange traded fund products. The world’s biggest asset manager reported a 32 per cent year-on-year rise in revenue in the three months to June to $4.8bn, beating a forecast of $4.6bn, boosted by strong organic growth and higher performance fees.  In a nod to inflation, BlackRock said it would from September raise base salaries by 8 per cent for all employees up to and including those at director level.

Senate Democrats have agreed to press ahead with legislation worth $3.5tn in new government spending without Republican support in a bid to enact Joe Biden’s economic agenda before next year’s midterm elections. The intraparty deal was sealed on Tuesday night after negotiations that involved both the most progressive lawmakers, including Bernie Sanders of Vermont, and moderate Democrats.