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US House Speaker Kevin McCarthy, US Vice President Kamala Harris, US President Joe Biden, and Senate Majority Leader Chuck Schumer on Tuesday, May 16, 2023.
Photographer: Yuri Gripas/AbacaDebt ceiling talks set to intensify, JPMorgan expects a Fed cut by September, and Wall Street banks scale back China plans. — Liza Tetley
Talks between President Joe Biden and House Speaker Kevin McCarthy over the debt ceiling -- launched before Biden’s departure for a shortened trip over to Asia for the G7 meetings -- are set to intensify as negotiators seek a framework agreement to review upon the President’s return. They struck a cautiously optimistic tone on Tuesday during a meeting, after which Biden said “there was an overwhelming consensus…that defaulting on the debt is simply not an option.” The president said he’d be calling to check in on the status of talks during his time abroad.