Weekly Market & Economic News Recap (Week of May 15, 2023)
Treasury Secretary Janet Yellen again said the U.S. could become unable to pay its bills on time as soon as June 1 if Congress doesn’t first raise the debt limit. (Wall Street Journal, May 15,2023, https://www.wsj.com/articles/yellen-says-treasury-still-expects-u-s-could-default-as-soon-as-june-1-fc5e543e?mod=economy_more_pos12)
World leaders warily watch U.S. debt-limit standoff. Political fight in Washington looms over meetings of Western allies in Japan. (Wall Street Journal, May 15,2023, https://www.wsj.com/articles/world-leaders-warily-watch-u-s-debt-limit-standoff-f37db623?mod=economy_more_pos13)
Americans boosted their retail spending in April for the first time in three months, a sign of consumers’ continued resilience despite high inflation and rising interest rates. (Wall Street Journal, May 16, 2023, https://www.wsj.com/articles/us-economy-retail-sales-april-2023-6cc8601e?mod=economy_more_pos8)
China’s recovery loses steam, signaling trouble for global economy. Country’s youth unemployment hits record high as new economic data falls short of expectations. (Wall Street Journal, May 16, 2023, https://www.wsj.com/articles/chinas-youth-unemployment-tops-20-amid-signs-of-stalling-recovery-cea320ef?mod=economy_more_pos9)
Sales of previously owned homes fell in April from the prior month and prices declined from a year earlier by the most in more than 11 years. U.S. existing home sales, which make up most of the housing market, fell 3.4% in April from the prior month. (Wall Street Journal, May 18, 2023, https://www.wsj.com/articles/home-prices-posted-largest-annual-drop-in-more-than-11-years-in-april-613f2d58?mod=economy_more_pos3)
Rebound in treasury yields fueled by resilient growth, inflation. Yield on 10-year Treasury note climbs to highest since March, hovering near 3.7%. (Wall Street Journal, May 19, 2023, https://www.wsj.com/articles/rebound-in-treasury-yields-fueled-by-resilient-growth-inflation-38f5221e?mod=markets_major_pos13)
Federal Reserve Chair Jerome Powell suggested he was open to holding interest rates steady at the central bank’s meeting next month, saying that the current banking stress could mean rates may not need to rise as high as otherwise to slow the economy. (Wall Street Journal, May 19, 2023, https://www.wsj.com/articles/a-new-normal-for-rates-not-so-fast-says-new-fed-research-6add6097?mod=economy_lead_pos2)
Stocks fall to end week after debt-ceiling talks pause. Fed Chair Powell says a slowdown in bank lending could cool the economy. (Wall Street Journal, May 19, 2023, https://www.wsj.com/articles/global-stocks-markets-dow-news-05-19-2023-818f3e97)
Negotiators halt debt-ceiling talks with no breakthrough in sight. White House, Republicans hope to reach deal centered on spending cuts, work requirements. (Wall Street Journal, May 20, 2023, https://www.wsj.com/articles/were-not-there-negotiators-pause-debt-ceiling-talks-aee1807a?mod=economy_more_pos1)
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