Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Connect with us

Hi, what are you looking for?

slide 3 of 2
THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Breaking News

Breaking News

US debt dispute overshadows G7 finance chiefs’ summit

The logo of the G7 Finance Ministers and Central Bank Governors' meeting is displayed at Niigata station, ahead of the meeting, in Niigata, Japan, May 10, 2023. REUTERS/Issei Kato
The logo of the G7 Finance Ministers and Central Bank Governors' meeting is displayed at Niigat... The logo of the G7 Finance Ministers and Central Bank Governors' meeting is displayed at Niigata station, ahead of the meeting, in Niigata, Japan, May 10, 2023. REUTERS/Issei Kato
The logo of the G7 Finance Ministers and Central Bank Governors' meeting is displayed at Niigata station, ahead of the meeting, in Niigata, Japan, May 10, 2023. REUTERS/Issei Kato
The logo of the G7 Finance Ministers and Central Bank Governors' meeting is displayed at Niigat... The logo of the G7 Finance Ministers and Central Bank Governors' meeting is displayed at Niigata station, ahead of the meeting, in Niigata, Japan, May 10, 2023. REUTERS/Issei Kato

Listen to the article now

Starting on Thursday, an impasse over extending the U.S. debt ceiling dominated a G7 finance chiefs conference, intensifying U.S. recession worries as central banks seek a gentle landing for the global economy.

President Joe Biden urged Republican legislators on Wednesday to boost the government’s borrowing ceiling from $31.4 trillion or face a recession in the world’s largest economy.

After three U.S. regional banks failed, Treasury Secretary Janet Yellen was due to answer questions with her G7 counterparts in Niigata, Japan, on how Washington plans to calm financial markets.

A default would jeopardize our epidemic recovery progress. On Thursday in Niigata, Yellen warned it would cause a worldwide recession.

Japan, this year’s G7 chair and the world’s largest U.S. debt holder, is concerned about the debt problem.

On Tuesday, Japan’s senior financial diplomat, Masato Kanda, said the G7 finance chiefs might debate the U.S. debt ceiling but not include it in a joint statement on Saturday.

“The G7 won’t be able to solve what is a purely domestic and political U.S. problem, though the group could reaffirm its resolve to cooperate in stabilizing markets in the worst-case scenario,” said Nomura Research Institute analyst Takahide Kiuchi.

Washington alone must fix this. When things go wrong, other nations pay.”

G7 finance ministers and central bankers will likely discuss global economic threats, including rising inflation and the consequences of aggressive U.S. and European interest rate rises.

Yellen said the global economy was in a “better place than many had predicted six months ago,” with inflation reducing in several G7 nations, including the U.S.

However, China’s second-largest economy has exhibited symptoms of weakening as the Federal Reserve’s quick rate rises to weigh on the U.S.

On Thursday, statistics revealed that China’s consumer prices climbed at the weakest pace in more than two years in April, while factory gate deflation intensified, shattering authorities’ expectations that a demand resurgence would boost the global economy.

The G7 finance meeting will also discuss strengthening the global financial system, preventing Russia from circumventing sanctions over its invasion of Ukraine, and diversifying supply chains away from China through partnerships with low- and middle-income nations.

Past U.S. debt ceiling disputes have concluded with a last-minute deal to prevent a default. The first U.S. credit rating drop occurred in 2011. Veterans say political divisions make the current situation scarier.

The G7 finance leaders were “committed to addressing the tensions stemming from the current challenges on our fiscal deficits, debt and growth.”


Comment Template

You May Also Like

Business

Cricut Unveils New Crafting Machines: Faster, Cheaper, and More Accurate On February 27, 2025, Cricut, the beloved brand known for its innovative crafting machines,...

Business

**Excerpt:** Apple has unveiled a suite of new child safety features aimed at giving parents greater control over their kids’ app usage. Announced on...

Business

**Excerpt from "The Evolution of Legacy Media: Why It’s Not Dead Yet"** In a world dominated by digital platforms and instant news, Evan Leatherwood,...

Business

**Excerpt:** On February 27, 2025, newly confirmed FBI Director Kash Patel unveiled a groundbreaking proposal: a partnership between the FBI and the Ultimate Fighting...

Notice: The Biznob uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our Cookie Policy.

Ok