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☆ These companies are winners in the debt ceiling deal
▼ + stars: | 2023-05-30 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

New York CNN —The debt ceiling deal in Washington did not set off a celebration in the stock market. The Sierra Club called on Congress to reject the deal and pass a clean bill to raise the debt ceiling. Wall Street is also betting lending company SoFi will cash in from the debt ceiling deal because it calls for borrowers to start paying back federal student loans at the end of the summer. IRS funding cuts, defense spending intactMeanwhile, the debt ceiling deal would shift a total of $20 billion in IRS funding from fiscal 2024 and fiscal 2025 to be used in non-defense areas. The defense industry is also emerging largely unscathed from the debt ceiling battle, unlike in 2011 when Washington agreed to significant defense spending cuts.

☆ Oil prices sink below $70 on debt ceiling jitters, Russia-Saudi tensions
▼ + stars: | 2023-05-30 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

New York CNN —US oil prices dropped below $70 a barrel Tuesday on concerns about whether the debt ceiling deal will make it through Congress and on reports of tensions between Saudi Arabia and Russia ahead of a key OPEC+ meeting. The selloff marks one of the worst days of the year for the oil market and could help keep a lid on pump prices. “It’s not a layup that the debt deal is going to get done. Treasury Secretary Janet Yellen has warned the government will not have enough funds to meet all of the nation’s obligations if Congress does not address the debt ceiling by June 5. Meanwhile, there are new questions about the relationship between OPEC leader Saudi Arabia and Russia ahead of this weekend’s meeting of oil producers in Vienna.

☆ Premarket stocks: How crypto is dealing with debt ceiling turmoil
▼ + stars: | 2023-05-30 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

Here’s what’s in the debt ceiling dealPresident Biden and Republican House Speaker McCarthy put their long weekend to good use, coming to an agreement to raise the debt ceiling in the hope of avoiding a self imposed default on US government debt. If Congress doesn’t raise the debt ceiling by June 5, Treasury Secretary Janet Yellen warns the government will not have enough funds to pay all of the nation’s obligations in full and on time. The debt ceiling bill does that, rescinding $1.4 billion in IRS funding. Corporate America celebrates debt ceiling dealIt appears that US industry is pleased with the debt ceiling deal, and would like Congress to pass it quickly. Leading business groups praised Biden and McCarthy for forging a bipartisan agreement over the weekend, reports my colleague Matt Egan.

☆ 31 billionaires are worth more than the US Treasury has in cash
▼ + stars: | 2023-05-29 | by ( Matt Egan | ) edition.cnn.com time to read: 1 min

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☆ Corporate America celebrates debt ceiling deal and urges Congress to quickly pass legislation
▼ + stars: | 2023-05-29 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

New York CNN —Leading business groups are praising President Joe Biden and House Speaker Kevin McCarthy for forging a bipartisan agreement to raise the debt ceiling, and they are calling for Congress to pass the legislation before the government suffers a devastating default. “With the US at risk of defaulting in less than 10 days, there is no time to spare. The gravity of this moment cannot be overstated,” said Clark, who added the Chamber will consider this a “key vote” for lawmakers. The National Association of Manufacturers, the largest manufacturing trade group in the nation, congratulated Biden, McCarthy and their lawmakers for reaching an agreement. Party leaders in Washington are working furiously Monday to convince holdouts to back the compromise legislation that would avert default.

☆ Why does Wall Street expect a rate hike in June?
▼ + stars: | 2023-05-28 | by ( Krystal Hur | ) edition.cnn.com time to read: +4 min

CNN —Wall Street expects the Federal Reserve to raise interest rates in June. Not only that, it finally believes the central bank when it says it likely won’t cut rates this year. Futures traders expected a roughly 66% chance of a quarter point rate hike in June as of Friday afternoon, according to the CME FedWatch Tool. That’s a drastic about-face from even earlier this month, when Wall Street expected the central bank to slash rates multiple times this year starting as early as this summer. “If it comes in hotter than expected, it almost locks a rate hike in” for June, said Heppenstall.

☆ Americans to spend $1.6 billion less on gas this Memorial Day weekend
▼ + stars: | 2023-05-26 | by ( Matt Egan | ) edition.cnn.com time to read: +3 min

Drivers across the country will be greeted by gas prices much cheaper than a year ago. That’s up from wintertime lows — but down by more than $1 from the year-ago average of $4.60, which was also the national average on the Friday before last Memorial Day. So, today’s gas prices are not cheap historically. The central factor is that oil prices, which are the main driver of retail gas prices, are down. For now, gas prices are much lower than a year ago, contributing to easing inflation across the economy.

☆ JPMorgan is cutting about 500 jobs
▼ + stars: | 2023-05-26 | by ( Matt Egan | ) edition.cnn.com time to read: 1 min

☆ Americans’ outlook on retirement darkens to an 11-year low
▼ + stars: | 2023-05-24 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

Just 43% of nonretired adults think they will have enough money to live comfortably when they retire, according to Gallup. The percentage of adults expecting to live comfortably in retirement is down by five percentage points over the past year and ten percentage points since 2021. A record-low 19% of lower-income adults expect to live comfortably, according to Gallup, which began tracking these measures in 2002. 36% of middle-income adults expect to retire comfortablyYounger Americans are more optimistic about their retirement outlook, with 54% of those aged 18 to 29 saying they expect to have enough money to live comfortably. Those awaiting retirement expect to be forced to rely more on 401(k), IRA and other retirement savings accounts.

Persons: Gallup, Mohamed Younis, ”, Younis, Joe Biden, George W, Bush Organizations: CNN, Gallup, “, Social Security, University of Michigan, —

☆ Analysis: Why we may need a stock market plunge to solve the debt ceiling crisis
▼ + stars: | 2023-05-22 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

They know how it ends: with politicians waiting until the last minute before giving in and finally raising the debt ceiling before disaster strikes. On Friday, it looked like the White House and Republicans were getting closer to a deal on the debt ceiling before talks unexpectedly broke down. In 2011, the most serious near-default in American history, markets experienced volatility in the days and weeks before Washington reached a last-minute deal to raise the debt ceiling. None of this is to say markets are completely ignoring the debt ceiling drama today. The debt ceiling is a manufactured crisis that officials could have dealt with months ago.

☆ US Chamber of Commerce argues invoking 14th Amendment would be as ‘economically calamitous’ as a default
▼ + stars: | 2023-05-19 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

Bernie Sanders, Elizabeth Warren and other progressives to urge the White House to use the 14th Amendment to avoid a disastrous default. Bradley argued that invoking the 14th Amendment would send Treasury rates spiking, lifting the cost of borrowing for families and businesses. Experts have warned that invoking the 14th Amendment would likely spark a constitutional crisis and Treasury Secretary Janet Yellen recently cast doubt on the idea. US markets turned negative on Friday on news that debt ceiling negotiations between the White House and House Republicans have hit a snag. “If the rhetoric is dark next week, markets will start to react.

☆ Janet Yellen told bank CEOs more mergers may be necessary, sources say
▼ + stars: | 2023-05-19 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

New York CNN —During Thursday’s meeting with the CEOs of large banks, Treasury Secretary Janet Yellen told executives that more bank mergers may be necessary as the industry continues to navigate through a crisis, two people familiar with the matter told CNN. However, sources tell CNN that bank mergers were discussed during Yellen’s meeting with bank CEOs. Yellen echoed remarks from US regulators who have said there may be bank mergers in the current environment, one person familiar with the matter said. Yet earlier this month, regulators allowed JPMorgan Chase, the nation’s largest bank, to buy most of First Republic, the second-largest bank to fail in US history. Michael Hsu, acting comptroller of the currency, told lawmakers earlier this week that his agency would be willing to quickly consider bank mergers.

☆ Yellen warns bank CEOs of ‘severe’ economic consequences if debt ceiling isn’t addressed
▼ + stars: | 2023-05-18 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

The meeting, which took place in Washington and included JPMorgan Chase CEO Jamie Dimon and Citigroup CEO Jane Fraser, focused in part on the risks on the debt ceiling. Beyond the debt ceiling, Yellen and the Wall Street CEOs discussed the ongoing banking crisis. Yellen also met with mid-size bank CEOsIn addition to huddling with big bank CEOs, Yellen met in Washington on Thursday with executives from mid-size banks, a person familiar with the matter told CNN. Both the debt ceiling and the banking stress came up during Yellen’s meeting with the Mid-Size Bank Coalition of America, an industry trade group, the source said. During the meeting, which took place at the Treasury Department, mid-size bank CEOs expressed acute concern about how the debt ceiling standoff will impact their institutions, the source told CNN.

☆ Bank CEOs to huddle with Schumer on the debt ceilin
▼ + stars: | 2023-05-17 | by ( Matt Egan | ) edition.cnn.com time to read: +1 min

During Wednesday’s meeting, Schumer plans to raise the threat of default with the bank leaders, one of the sources told CNN. After leaving a Tuesday meeting at the White House with congressional leaders, Schumer said, “Default is disaster. Given that the trade group’s board includes regional bank CEOs, other issues including the banking crisis are likely to be discussed during Wednesday’s meeting. In addition to Schumer, bank CEOs are expected to meet with other lawmakers and officials. The meetings come as the White House and congressional Republicans struggle to reach a compromise on how to avoid the debt ceiling and avoid what economists warn would be a disastrous debt default.

☆ 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.

☆ Biden administration to buy 3 million barrels of oil to begin replenishing emergency oil stockpile
▼ + stars: | 2023-05-15 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

New York CNN —The Biden administration announced plans on Monday to buy 3 million barrels of crude oil, marking the start of a years-long process aimed at replenishing America’s depleted emergency oil stockpile. Faced with spiking gas prices, President Joe Biden has aggressively drained the SPR, the world’s largest supply of emergency crude oil. The SPR held about 638 million barrels of oil when Biden took office in January 2021, according to the US Energy Information Administration. Today, it is down to 362 million barrels — the lowest level since October 1983. Before announcing plans to purchase oil, the Energy Department moved to cancel 140 million barrels in congressionally mandated sales scheduled for the next several fiscal years.

☆ Gas is almost $1 cheaper than a year ago
▼ + stars: | 2023-05-15 | by ( Matt Egan | ) edition.cnn.com time to read: +3 min

But gas prices are miles away from last summer’s nightmare. At this point last year, gas prices were racing toward $5 a gallon, angering Americans, alarming central bankers and threatening the entire economy. Gas is not cheapTo be sure, gas prices are not nearly as cheap as back in 2020 when the national average crashed below $2 a gallon. Looking ahead, gas prices will probably remain far away from last summer’s peak. “If we return to economic prosperity, we’re going to return to the same gas price explosion as last year.”

☆ Premarket stocks: What happens if the debt ceiling and banking crisis collide?
▼ + stars: | 2023-05-15 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —President Joe Biden said over the weekend that debt ceiling negotiations were moving along and that talks between the White House and House Speaker Kevin McCarthy would resume on Tuesday. It may become more difficult to access credit, further exacerbating the challenges individuals and companies are already facing because of the banking crisis. Before the Bell: What do the ongoing debt ceiling negotiations mean to small and medium businesses? Do you think bank executives and members of the business community can put pressure on Congress and the White House to come to a deal? The White House has estimated more than 8 million jobs would get wiped out if there is a protracted default.

If confirmed, Kugler, a Colombian-American, would be the first Latino to serve on the Fed board, marking the latest effort by Biden to improve the central bank’s diversity. Kugler, who is currently on leave from Georgetown University, previously worked in the Obama administration as the Labor Department’s chief economist. Getty Images/AlamyJefferson, who joined the Fed as a governor a year ago, has been tapped by Biden to the influential role of vice chair, serving as the No. He joined the Fed board in May 2022, after winning broad bipartisan support during his congressional confirmation process. He taught economics at Swarthmore College, Columbia University and the University of Virginia, and served as a high-ranking administrator at Davidson College.

New York CNN —Dan and Tanya Snyder agreed to sell the Washington Commanders franchise to a group led by Josh Harris on Friday, according to a statement from from the team and the investment group. The group also includes NBA legend Magic Johnson as well as Mitchell Rales, the billionaire co-founder of conglomerate Danaher. Harris’ ownership groups include Johnson and billionaire Mitch Rales, Harris’ longtime sports business partner. Snyder first purchased the team, which was then known as the Washington Redskins, for a reported $750 million in 1999. The only franchises from other sports worth more than that $5.6 billion estimated value are the New York Yankees and New York Knicks.

☆ ‘Every family should be concerned’ about debt ceiling, consumer watchdog warns
▼ + stars: | 2023-05-12 | by ( Matt Egan | ) edition.cnn.com time to read: +5 min

Every family should be concerned,” Rohit Chopra, director of the Consumer Financial Protection Bureau, told CNN in an interview on Thursday. If Congress fails to address the debt ceiling, the federal government could run out of money as soon as June 1, according to Treasury Secretary Janet Yellen. “A lot of things we assume are part of our financial fabric would get ripped away,” Chopra told CNN. The debt ceiling is very likely to be a focus next week when Yellen is scheduled to meet with leading bank CEOs in Washington at a trade association meeting. Moody’s Analytics on Wednesday increased its probability of a breach of the debt ceiling to 10%, up from 5% previously.

In that instance, S&P Global Ratings credit rating agency downgraded the government from AAA to AA+ credit rating. The federal government maintains a perfect credit rating from Fitch and Moody’s, but that could change as the stalemate drags on. Investors care about stability and predictability, so a credit rating downgrade would send a chill down Wall Street’s spine. The broadest economic impact of a US debt default would be a recession that would encompass the global economy, including sharp job losses. And the housing market would not be spared by the “economic calamity” of a US government default, as Yellen once described it.

☆ These states will be hit the hardest if the US debt ceiling standoff isn’t resolved
▼ + stars: | 2023-05-10 | by ( Matt Egan | ) edition.cnn.com time to read: +3 min

While most states would be “hit hard” by a debt limit breach, the economic pain would vary from state to state, according to projections released on Wednesday by Moody’s. Florida, Ohio and Pennsylvania would also likely lose hundreds of thousands of jobs apiece if there is a breach of the debt ceiling lasting several months, Moody’s found. In the event of a prolonged breach of the debt ceiling, Moody’s estimates some large states would each lose hundreds of thousands of jobs. ‘A real threat’In its report, Moody’s assigns a 10% probability to a breach of the debt ceiling, up from 5% previously. “What once seemed unimaginable now seems a real threat,” Moody’s Analytics chief economist Mark Zandi wrote in the report.

☆ The Fed would look ‘silly’ if it declares victory over inflation now, warns billionaire investor David Rubenstein
▼ + stars: | 2023-05-10 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

“It’s premature to have rate cuts this summer,” Rubenstein, the co-founder and co-chairman of The Carlyle Group, told CNN on Monday. The Fed will look silly if it declares victory at 4%,” said Rubenstein. But Wednesday’s inflation report is expected to show consumer prices are still rising at more than twice the Fed’s target. Despite pessimism on Wall Street and Main Street, Rubenstein said the US economy is “doing okay.”“This has been the most predicted recession in the history of recession predictions. “You could see the credit rating go down and interest rates go up,” said Rubenstein.

☆ Premarket stocks: Wall Street is strangely calm about the debt ceiling. That could change this month
▼ + stars: | 2023-05-10 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —Dire warnings about the economic chaos and catastrophe that will ensue if the US debt ceiling isn’t lifted soon abound. The debt ceiling crisis of 2011 caused Standard and Poor’s to downgrade US debt for the first time in history. Schwenkler says to expect “a lot more volatility” if debt ceiling issues don’t appear resolved by the last week of the month. By contrast, recovery from a debt-default crisis would likely start the day Congress, belatedly, suspended the debt ceiling,” he added. “A misstep over the debt ceiling would subject businesses and consumers to an economic shockwave,” he added.

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