The US debt ceiling deadline looms, and bipartisan talks failed to yield much progress. The two sides remain far apart in terms of resolving the potential crisis. Treasury Secretary Janet Yellen has warned the federal government could default as soon as 1 June, and that this could undermine the US and global economy.
There is plenty to focus on this week, with some key macro data coming out (US CPI), the US debt ceiling in focus (Biden-Congress talks), and the Bank of England decision (Thursday). In addition, the concerns around the US regional banks will no doubt remain a driver for markets.
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