May 31, 2023
United States:
Why Yellen Doesn’t Lose Sleep Over US Borrowing That Alarms Most Americans
Whether they favor debt-limit brinkmanship or not, most Americans are alarmed by the level of US government borrowing. Treasury Secretary Janet Yellen isn’t one of them.
Outstanding debt held by the public stood at $23.9 trillion as of the end of 2022. That’s 97% of gross domestic product, using the measure most popular among economists — roughly triple what it was 20 years earlier, and forecast to keep climbing. It’s a figure at the heart of the debt-ceiling fight now inching toward resolution.
Europe:
German Inflation Slows Significantly as ECB Hikes Near End
Germany joined its major euro-zone peers in reporting a steep slowdown in inflation — underscoring arguments by some European Central Bank officials that interest-rate increases are coming to an end.
Consumer prices in the region’s largest economy rose 6.3% from a year ago in May, the Federal Statistics Office said Wednesday. That’s down from 7.6% in April and below the 6.7% median estimate in a Bloomberg survey.
Asia:
China Manufacturing Slump Heightens Risk of ‘Downward Spiral’
China’s economic recovery weakened in May, raising fresh fears about the growth outlook and prompting calls for more central bank action to counter the downturn.
Manufacturing activity contracted at a worse pace than in April, while services expansion eased, official data showed Wednesday, suggesting the post-Covid rebound had lost momentum. Investors sold off everything from Chinese shares and the yuan to copper and iron ore.
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