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☆ The GOP proposal to raise the debt ceiling would force Americans on Social Security and Medicare to wait longer to receive help and make college more expensive, the White House says
▼ + stars: | 2023-05-16 | by ( Ayelet Sheffey | Juliana Kaplan | ) www.businessinsider.com time to read: +5 min

That would include worse customer service times for Americans receiving Medicare and Social Security. That could mean people waiting for disability benefits through Social Security might face wait times of at least two months longer, and those seeking help through Social Security and Medicare offices could experience worse customer servicer. "House Republicans can do this math as well as anyone. "If House Republicans choose not to cut funding for military, veterans' medical care, and border security, then their cuts to everything else must get even deeper." As Yellen warned McCarthy in her Monday letter, failure to raise the debt ceiling on time would be catastrophic for Americans.

☆ US stocks fall ahead of renewed debt ceiling talks in Washington
▼ + stars: | 2023-05-16 | by ( Matthew Fox | ) www.businessinsider.com time to read: +2 min

US stocks dropped on Tuesday as the debt ceiling deadline quickly approaches with no deal yet to be had. President Joe Biden and House Speaker Kevin McCarthy were scheduled to continue their negotiations on Tuesday. Treasury Secretary Janet Yellen warned that "time is running out" on a debt ceiling agreement. Treasury Secretary Janet Yellen warned that "time is running out" and that the debt ceiling showdown is already impacting Americans. "We are already seeing the impacts of brinksmanship: investors have become more reluctant to hold government debt that matures in early June."

☆ CNBC Daily Open: Markets are playing a waiting game
▼ + stars: | 2023-05-16 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

This report is from today's CNBC Daily Open, our new international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. President Joe Biden, likewise, expressed optimism that a deal with Republicans to raise or suspend the debt ceiling could be reached. Biden will meet congressional leaders today to continue talks about the debt ceiling. Subscribe here to get this report sent directly to your inbox each morning before markets open.

☆ US economy 'hangs in the balance' as debt limit impasse drag on, Yellen says
▼ + stars: | 2023-05-16 | by ( Andrea Shalal | ) www.reuters.com time to read: +3 min

WASHINGTON, May 16 (Reuters) - The standoff over the federal debt limit is already having dire consequences for the U.S. economy, driving borrowing costs higher and adding to the country's debt burden, U.S. Treasury Secretary Janet Yellen is expected to say in prepared remarks on Tuesday. "The U.S. economy hangs in the balance. Congress should address the debt limit as soon as possible." Yellen said the 2011 crisis - when lawmakers raised the debt limit shortly before the government had to stop making payments - showed the serious repercussions of not acting sooner. Investors had already become more reluctant to hold government debt that matures in early June, and the deadlock was increasing the overall debt burden, she said.

☆ Live Updates: Biden, Congressional Leaders to Meet on Debt Limit
▼ + stars: | 2023-05-16 | by ( Zolan Kanno-Youngs | Catie Edmondson | ) www.nytimes.com time to read: +7 min

President Biden and his allies said the White House and congressional teams had productive talks in recent days. The government reached the $31.4 trillion debt limit on Jan. 19, and the Treasury Department has been using accounting maneuvers to keep paying its bills. The president is scheduled to depart for Japan on Wednesday to attend the Group of 7 meeting, heightening the sense of urgency to make progress on the debt limit. While Mr. McCarthy played down progress, Mr. Biden and his allies said the White House and congressional teams had productive talks in recent days. “SNAP already has work requirements,” said Senator John Fetterman, Democrat of Pennsylvania, referring to the Supplemental Nutrition Assistance Program.

☆ CNBC Daily Open: Investors are playing a waiting game
▼ + stars: | 2023-05-16 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. President Joe Biden, likewise, expressed optimism that a deal with Republicans to raise or suspend the debt ceiling could be reached. The S&P 500 added 0.3%, the Dow Jones Industrial Average gained 0.14% to snap a five-day losing streak and the Nasdaq Composite rose 0.66%. Biden will meet congressional leaders today to continue talks about the debt ceiling. Subscribe here to get this report sent directly to your inbox each morning before markets open.

☆ US stocks trade lower as debt ceiling showdown outweighs strength in mega-cap tech
▼ + stars: | 2023-05-16 | by ( Matthew Fox | ) www.businessinsider.com time to read: +2 min

US stocks dropped on Tuesday as the debt ceiling deadline quickly approaches with no deal yet to be had. President Joe Biden and House Speaker Kevin McCarthy were scheduled to continue their negotiations. Treasury Secretary Janet Yellen warned that "time is running out" on a debt ceiling agreement. download the app Email address By clicking ‘Sign up’, you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy PolicyUS stocks traded lower on Tuesday as investor stress about the ongoing debt ceiling showdown outweighed the strength seen in mega-cap tech stocks. Meanwhile, Treasury Secretary Janet Yellen warned that "time is running out" and that the debt ceiling showdown is already impacting Americans.

☆ Yellen to meet with Jamie Dimon and other bank CEOs on Thursday as debt ceiling crisis looms
▼ + stars: | 2023-05-16 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

New York CNN —With time running out to reach a deal on the debt ceiling, Treasury Secretary Janet Yellen plans to meet with bank CEOs on Thursday afternoon in Washington, sources tell CNN. JPMorgan Chase CEO Jamie Dimon and Citigroup CEO Jane Fraser plan to attend the Yellen meeting, which will very likely include a focus on the debt ceiling as well as the banking crisis, people familiar with the matter told CNN. As the White House and Republican leaders struggle to reach a deal on the debt ceiling, Yellen has stepped up her warnings about the economic stakes. The debt ceiling is not necessarily the focus of the meeting, which will also include regional bank CEOs at a time when that industry is in turmoil. Yellen is also likely not the only figure from Washington who will speak before the bank CEOs this week.

☆ Yellen warns of broken markets, disrupted services as she ramps up debt ceiling pressure
▼ + stars: | 2023-05-16 | by ( Emma Kinery | ) www.cnbc.com time to read: +3 min

Janet Yellen, US Treasury secretary, during a news conference at the Treasury Department in Washington, DC, US, on Tuesday, April 11, 2023. "A default would crack open the foundations upon which our financial system is built," Yellen warned in prepared remarks. Yellen also warned that a debt ceiling breach could affect essential government services. Lifting the debt ceiling is necessary for the government to cover spending commitments already approved by Congress and the president and prevent default. "A default could cause widespread suffering as Americans lose the income that they need to get by," Yellen said.

The S&P Regional Banking Index fell approximately 25% during the quarter as a run on deposits sank Silicon Valley Bank and Signature Bank in March, both of which were at the time the largest banking failures since the Great Financial Crisis. The S&P Regional Banking index is now down 36% for the year to date. Famed "Big Short" investor Michael Burry's Scion Asset Management, meanwhile, added a number of new positions in regional banks, including stakes in First Republic, PacWest (PACW.O) and Western Alliance Bancorp (WAL.N). Shares of regional banks have remained volatile in recent weeks, with some investors wary of more tumult to come in the sector. London-based Marshall Wace sold 51,300 shares of First Republic in the first quarter, closing its position in the bank.

[1/2] The United States Department of the Treasury is seen in Washington, D.C., U.S., August 30, 2020. In her second letter to Congress in two weeks, Treasury Secretary Janet Yellen confirmed that the agency will be unlikely to meet all U.S. government payment obligations by early June, triggering the first-ever U.S. default. The debt ceiling could become binding by June 1, she said. She said she will provide an additional update to Congress next week as more information becomes available. The non-partisan Congressional Budget Office last week said the United States faces a "significant risk" of defaulting on payment obligations within the first two weeks of June without a debt ceiling hike, with payment operations uncertain throughout May.

☆ In the Market: Why US regional banks are doomed to a doom loop
▼ + stars: | 2023-05-15 | by ( Paritosh Bansal | ) www.reuters.com time to read: +4 min

REUTERS/Brian SnyderMay 15 (Reuters) - Banking regulators have been pushed by market volatility in recent weeks into doing things that they haven't really wanted to do, like letting the largest U.S. bank get even bigger. Take the case of the Federal Deposit Insurance Corp (FDIC), one of the main banking regulators. These banks provide credit to vast sections of the U.S. economy, and deposit flight has forced them to pull back on lending. They have provided banks with lifelines that give them enough cash to meet deposit withdrawals, for example. Treasury Secretary Janet Yellen said on Saturday that nearly all banks had access to sufficient liquidity but pressure on earnings may lead to some midsize bank deals.

☆ China's rising clout spotlighted at finance chief meetings before G7 summit
▼ + stars: | 2023-05-15 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +4 min

China is among the biggest markets for most G7 countries, particularly for export-reliant economies such as Japan and Germany. In a joint statement on Saturday, the G7 finance chiefs stressed the urgency of addressing debt vulnerabilities in low- and middle-income countries, mentioning Zambia, Ethiopia, Ghana and Sri Lanka. "There were talks about coercion" at the G7 finance leaders' meeting, the Japanese finance ministry official said. The G7 summit will most likely have a special session on China to debate Beijing's "economic coercion" against other countries, according to a Reuters report. "No matter how the G7 want to fence in the Global South, it's not easy," said Atsushi Takeda, chief economist at the Itochu Economic Research Institute.

☆ Stock futures are little changed as traders await Tuesday debt ceiling negotiations: Live updates
▼ + stars: | 2023-05-15 | by ( Brian Evans | ) www.cnbc.com time to read: +3 min

Traders work on the floor of the New York Stock Exchange during morning trading on April 10, 2023 in New York City. Futures tied to the S&P 500 slipped 0.05%, while Nasdaq 100 futures inched lower by 0.08%. Investors are anxiously awaiting progress on a deal to raise the debt ceiling before June 1, which is the earliest date the Treasury Department has said the U.S. could default on its debt obligations. Biden has so far maintained that raising the debt ceiling is non-negotiable. McCarthy, however, has pushed for talks to broker a deal to raise the debt ceiling be tied to spending cuts.

☆ Yellen Reiterates That the U.S. Could Run Out of Cash by June 1
▼ + stars: | 2023-05-15 | by ( Alan Rappeport | ) www.nytimes.com time to read: +1 min

Treasury Secretary Janet L. Yellen reiterated on Monday that the United States could run out of money to pay its bills by June 1 if Congress does not raise or suspend the debt limit, adding to the pressure on President Biden and congressional leaders as they race to reach an agreement to avert a default. The projection comes a day before Mr. Biden is scheduled to meet with Speaker Kevin McCarthy and other top lawmakers at the White House after a weekend of staff-level negotiations. The Treasury Department previously warned that the so-called X-date could come as soon as June 1, at which point the federal government could face the possibility that it would default on its debt. In a letter to lawmakers, Ms. Yellen cautioned that the actual date that the federal government could run out of cash “could be a number of days or weeks later than these estimates.” She urged Congress to act quickly to prevent a default. “We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States,” Ms. Yellen said.

☆ Kevin McCarthy says he is still 'far apart' on a debt ceiling solution with Biden, warning they need a deal by the end of this week to avoid an economic catastrophe
▼ + stars: | 2023-05-15 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Kevin McCarthy said on Monday he thinks he is "far apart" on a debt ceiling solution with Biden. McCarthy said he thinks a deal needs to be reached by this weekend to avoid a default. McCarthy doesn't feel the same, telling reporters on Monday that he thinks both sides are "far apart" from reaching a deal. Biden and McCarthy are expected to meet again on Tuesday to move forward with discussions on a debt ceiling solution. "Default should be avoided, period," GOP Sen. Cynthia Lummis told Axios, adding that Biden and McCarthy "are going to have to negotiate through this."

☆ US may default on debt as soon as June 1, Yellen reaffirms
▼ + stars: | 2023-05-15 | by ( Tami Luhby | ) edition.cnn.com time to read: +2 min

CNN —It’s still likely that the US could default on its obligations early next month – possibly as soon as June 1 – if Congress doesn’t act, Treasury Secretary Janet Yellen reiterated Monday. Still, the actual date could be a number of days or weeks later, depending on how much revenue the federal government collects and how much it has to pay out in coming weeks, Yellen said. Yellen’s missive comes two weeks after she first warned that the so-called X-date, when the US would default, could come as soon as June 1. Yellen once again urged Congress to act as soon as possible, noting that Treasury’s borrowing costs have increased substantially for securities maturing in early June. “We have learned from past debt limit impasses that waiting until the last minute to suspend or increase the debt limit can cause serious harm to business and consumer confidence, raise short-term borrowing costs for taxpayers, and negatively impact the credit rating of the United States,” she wrote.

☆ Stock Market Today: S&P 500 Wavers With Debt Ceiling in Focus
▼ + stars: | 2023-05-15 | by ( ) www.wsj.com time to read: +1 min

U.S. stocks were wavering Monday as investors monitored debt-ceiling negotiations, coming off two consecutive losing weeks for the S&P 500. Treasury Secretary Janet Yellen said over the weekend that negotiations over raising the debt ceiling were making progress and could result in a deal. The major U.S. stock indexes were mixed. Turkey’s benchmark stock index fell after results from its election suggested President Recep Tayyip Erdogan had performed better than expected, but not enough to avoid a runoff vote. Other overseas stock indexes mostly gained.

☆ Fears of a US debt default are mounting as the deadline to lift the borrowing limit looms. Here's what Elon Musk, Paul Krugman and Jamie Dimon have warned.
▼ + stars: | 2023-05-14 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +5 min

Fears of a US debt default are mounting as a deadline to raise the government's borrowing limit draws near. Investors anxiety over the risk of a US debt default is mounting rapidly as a months-long political deadlock over the government's borrowing limit continues. Here's what six prominent figures have said about the ongoing political standoff over the debt ceiling. "You might ask how we're supposed to enforce a debt ceiling if the government can play games with the definition of debt. He said he doesn't expect the US to experience a debt default, but the deadline to reach a deal is soon approaching.

☆ Yellen hopeful of a solution to 'more difficult' debt ceiling showdown
▼ + stars: | 2023-05-13 | by ( Andrea Shalal | ) www.reuters.com time to read: +3 min

President Joe Biden, a Democrat, insists Congress has a constitutional duty to raise the limit without conditions to fund previously approved spending. POLARISATIONYellen said the first major standoff over the debt ceiling since 2011 reflected continuing U.S. polarisation after the presidency of Donald Trump. "Maybe this time is more difficult, but I'm hopeful that...we will find a solution." Despite the debt ceiling fight, Yellen said she remained convinced that the Biden administration had re-established U.S. leadership in the world and other G7 leaders were grateful they had turned "the dial 180 degrees relative to the Trump administration". "We should be talking about raising the debt ceiling.

While the communique made no mention of the U.S. debt ceiling stalemate, it figured constantly in discussions. "We need to remain vigilant and stay agile and flexible in our macroeconomic policy amid heightened uncertainty about the global economic outlook," they added in the communique after the meeting. G7 central bank chiefs vowed to combat "elevated" inflation and ensure expectations on future price moves remained well-anchored, a sign many of them will not let their guard down against stubbornly high inflation. CHINA AND SUPPLY CHAINSSeeking to reassure investors after recent U.S. bank failures, the G7 finance chiefs retained an April assessment that the global financial system was "resilient". In the communique, the finance leaders set a year-end deadline for launching a new scheme to diversify global supply chains.

☆ Exclusive: G7 summit statement to target China's 'economic coercion'
▼ + stars: | 2023-05-13 | by ( Trevor Hunnicutt | ) www.reuters.com time to read: +5 min

The main G7 statement is set to include "a section specific to China" with a list of concerns that include "economic coercion and other behavior that we have seen specifically from the [People's Republic of China]," the official said on Friday. A separate "economic security statement will speak more to tools" used to counter coercive efforts from any countries responsible, including planning and coordination, the person said. The joint statement issued by all the G7 leaders every year is intended to signal that the powerful countries are aligned on a range of political and economic issues. CHINA TESTS G7 ALLIANCEThe G7 meeting will be a test of how much the members, all rich democracies, can agree on a common approach to China, the world's second largest economy. Traveling for the G7 finance meeting in Japan, U.S. Treasury Secretary Janet Yellen said on Thursday that China had clearly used economic coercion with Australia and Lithuania.

☆ Social Security, Medicare, federal salaries: What payments may be delayed in debt ceiling standoff
▼ + stars: | 2023-05-13 | by ( Greg Iacurci | ) www.cnbc.com time to read: +6 min

Among the ramifications of a debt ceiling standoff, any payment issued by the federal government — like Social Security, Medicare, tax refunds, military paychecks and ample others — may be delayed. Alex Wong | Getty Images News | Getty ImagesThe U.S. is in this situation due to a political standoff tied to the debt ceiling, also known as the debt limit. Congress periodically raises or temporarily suspends the debt ceiling to avoid the other scenario: a default on the national debt and other federal payments. Here's the current problem: The country hit the debt ceiling — currently $31.4 trillion — in January. Federal Reserve officials alluded to the likelihood of prioritizing bondholders in a 2011 meeting that followed an earlier debt ceiling episode.

☆ Yellen expects US regulators to be open to mergers among midsize banks
▼ + stars: | 2023-05-13 | by ( Andrea Shalal | ) www.reuters.com time to read: +2 min

... Read moreNIIGATA, Japan, May 13 (Reuters) - The current banking environment and pressures on earnings of some U.S. regional banks may lead to some concentration in the sector, and regulators will likely be open to such mergers, Treasury Secretary Janet Yellen said on Saturday. Yellen told Reuters she was not seeing evidence of pressure on smaller community banks, which had a large percentage of insured deposits. She expressed confidence that nearly all banks had access to sufficient liquidity to guard against unexpected deposit outflows from uninsured depositors. However, she said a certain degree of consolidation in the regional and midsize banking sector could occur. Yellen noted that pressure on a bank's stock could unsettle uninsured depositors.

☆ JD Vance defends Trump's comments that Republicans should let the US default, saying the former president was giving 'political advice' and doing 'fundamentally the right thing'
▼ + stars: | 2023-05-12 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Sen. JD Vance defended Trump's comments to Axios, saying he was just giving "political advice." "I say to the Republicans out there, congressmen and senators, if they don't give you massive cuts you are going to have to do a default," Trump said. Sen. JD Vance argued that Trump was just trying to help his party. Vance told Axios that "what the president is doing is really giving political advice ... not financial advice." GOP Sen. Josh Hawley, for example, told Axios that he disagreed with Trump's comments and that "there is no world in which [a default] happens."

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