Treasury Secretary Janet Yellen has warned that the USA could default on it debts on June 1st if Congress does not act. President Biden and Speaker Kevin McCarthy have been waiting for the other to flinch over the debt ceiling. Speaker McCarthy said there would be no change to the debt ceiling without discussion about reducing spending and his brinkmanship may have paid off. (No pun intended) After saying he would not negotiate over the debt, President Biden has called for a meeting with Congressional leaders next week, which may signal his willingness to haggle. 

In other economic news, the Silicon Valley Bank collapse has been bumped down to “third biggest in US history” with the seizure and sale of First Republic Bank. First Republic attracted “high net-worth customers with preferential rates on mortgages and loans”.

Meanwhile, Pac West has recovered from its wobble. After signaling the bank was considering a sale, shares saw a dramatic drop, but rallied by the end of the week. “Turmoil has engulfed regional banks since early March amid concern that big unrealized losses on bond investments might push some of them to the brink.”

Half of American households have no retirement savings. (USA Facts)