Debt Ceiling Negotiations Continue
Negotiations on the debt ceiling continued during the week. On the investor side, concerns that the US Treasury will default on its obligations and stop paying its obligations in June have diminished. On Thursday, markets welcomed comments from House Speaker Kevin McCarthy, who said he hopes to have debt-limit raising legislation in the House next week. Although talks appeared to be deadlocked on Friday morning, overall there is optimism that a favorable resolution will be reached and the US is not expected to default for the first time in its history.
In the middle of the negotiations, Biden went to Japan for the G7 summit. He plans to return to American soil on Sunday to continue negotiations, thus shortening his tour, since visits to Papua New Guinea and Australia were previously scheduled. According to the press, the White House reportedly informed the president that the negotiations are advancing.