UK interest rates need to stay higher for longer to beat inflation, says IMF

US Fed will also have to raise rates more aggressively than forecast, says Washington-based body

Interest rates in the UK will need to stay higher for longer than previously forecast in order to tackle stubbornly high inflation, the International Monetary Fund has warned.

The IMF’s regular update on the state of the global economy singled out the US Federal Reserve and the Bank of England as two central banks that will need to raise official borrowing costs more aggressively than it assumed only three months ago.

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Biden signs debt ceiling bill after months-long standoff, avoiding default

Kevin McCarthy, the House speaker, secured a number of cuts on federal spending, with the borrowing limit suspended until 2025

Joe Biden signed a bill on Saturday to suspend the US debt ceiling, ending a months-long standoff with the Republican House speaker, Kevin McCarthy, and averting a federal default that could have upended the world economy.

Economists warned that a default could have caused the US unemployment rate to double while significantly damaging gross domestic product.

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Biden praises passage of debt ceiling bill in Oval Office address ahead of signing it

President described how ‘no one got everything they wanted, but the American people got what they needed’ during brief speech

Joe Biden celebrated Congress’s approval of a debt-ceiling suspension in a speech delivered from the Oval Office on Friday night, a day after the Senate passed the compromise bill brokered by the president and the Republican House speaker, Kevin McCarthy.

Biden described the bill’s enactment as “essential to the progress we’ve made over the last few years” in “keeping full faith and credit of the United States of America and passing a budget that continues to grow our economy and reflects our values as a nation”.

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Joe Biden gives first Oval Office address ahead of signing debt ceiling deal – as it happened

‘We averted an economic crisis and economic collapse,’ says president in address to the nation about deal, but will not sign bill before Saturday

Here’s more on how the debt ceiling crisis will impact the US’s credit rating, from the Guardian’s Joan E Greve.

The US is not yet out of the woods on a potential credit downgrade, even though Joe Biden is scheduled to sign the debt ceiling bill tonight to avert a federal default.

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Joe Biden hails ‘big win’ as bipartisan debt ceiling bill reaches his desk

Compromise package to suspend debt ceiling passed US Senate late on Thursday with 63 votes to 36

The bipartisan bill to solve the US debt ceiling crisis just days before a catastrophic and unprecedented default was on its way to Joe Biden’s desk on Friday as the US president prepared to address the nation and hailed “a big win for our economy and the American people”.

The compromise package negotiated between Biden and the House speaker, Kevin McCarthy, passed the US Senate late on Thursday.

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US House to hold final vote on raising debt ceiling ahead of default deadline

Vote expected to be held at 8:30pm ET and if passed would move next to the Senate for quick approval to protect US from default

The House is set to hold its final vote on raising the debt ceiling Wednesday, as leaders of both parties expressed confidence they will soon clear a major legislative hurdle with just days left before the US is expected to default.

Arriving at the Capitol Wednesday morning, the House Republican speaker, Kevin McCarthy, told reporters that he felt “good” about the upcoming vote, expected to be held at 8:30pm that day. Asked for his message to House Republicans, McCarthy encouraged them to support the bill, describing it as “the first step to change the way we spend money”.

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House begins vote on debt ceiling bill amid resistance – live

Moderate Republicans have touted the historic cuts while Democrats present the deal as a crucial compromise

Mike Pence is expected to launch his 2024 presidential bid within the next two weeks, The Messenger reports.

In a screenshot of an email sent by former Arizona Republican gubernatorial candidate Kari Lake to delegates of the Georgia Republican Party, Lake wrote:

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Biden and McCarthy hold debt ceiling talks amid signs a deal is close

Default deadline pushed to 5 June as work requirements for food aid recipients reportedly emerge as final sticking point

President Joe Biden and top congressional Republican Kevin McCarthy held a phone conversation on Saturday evening, according to a person familiar with their plans, amid signs that a deal in the ongoing debt ceiling negotiations was close to being struck.

McCarthy said earlier on Saturday that he was making “progress” in negotiations on raising the federal government’s debt ceiling, as the nation faced risk of default in little more than a week.

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Nvidia gains $185bn in value after predicting AI-driven boom in chip demand

Shares in US tech firm jump by 25% in early trading as quarterly revenue forecast excites investors

The value of the US tech company Nvidia has soared by a quarter after it predicted a boom in demand for its computer chips to meet the needs of artificial intelligence products such as ChatGPT.

Nvidia’s share price rose by 25% in early trading on the back of the announcement, and gave it a market valuation of more than $940bn (£760bn) after stock markets opened on Wall Street on Thursday, up from $755bn on Wednesday evening.

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Ron DeSantis attacks Covid measures, media and praises Musk-led Twitter during campaign launch – follow live

Florida governor announces candidacy for the Republican nomination

With the executive and legislative branches locked in a standoff over raising the debt ceiling, let’s check on the third branch of government: the judiciary. The Guardian’s Martin Pengelly reports that supreme court chief justice John Roberts gave a speech in which he vowed that the court would maintain the highest ethical standards, despite allegations of improper ties between some justices and parties with interests in their cases:

The chief justice of the US supreme court, John Roberts, said he and the other justices were working to hold themselves to the “highest standards” of ethical conduct.

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US lawmakers blame each other for debt ceiling standoff: ‘They are not negotiating’

Democrats and Republicans continue to trade pointed remarks, underscoring that agreement is not in reach to avoid default

Lawmakers exchanged sharp criticism about who was to blame for the protracted standoff over the debt ceiling on Wednesday.

As the country nears its deadline to avoid a federal default, talks between Joe Biden and the House speaker, Kevin McCarthy, continued on Wednesday, as negotiators met again to hash out the details of a potential deal. But both parties simultaneously trade pointed remarks, underscoring that an agreement is not yet in reach.

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US debt ceiling talks ‘productive’ as Biden and McCarthy to meet 10 days from deadline

A Sunday night phone call between the president and Republican House speaker was reported to have struck a more positive tone

US president Joe Biden and House Republican speaker Kevin McCarthy have held a “productive” phone call on the continued impasse over the debt ceiling and promised to meet on Monday after Biden returned to Washington.

McCarthy, speaking to reporters after the call, said there were positive discussions on solving the crisis and that staff-level talks were set to resume later on Sunday.

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FBI investigation into Trump-Russia collusion relied on shaky intelligence, says John Durham report – live updates

Special counsel also concludes no charges should be brought against the FBI

The Guardian’s Alexandra Villarreal has more on just how Joe Biden is trying to discourage migrants, and why advocacy groups say in this area, he’s not that different from Donald Trump:

Last week, the Biden administration toughened its stance against migration at the US-Mexico border through a new federal regulation that severely restricts access to asylum. This “Circumvention of Lawful Pathways” rule effectively replaces the Title 42 public health order, which Donald Trump introduced ostensibly to stem Covid-19 but has functioned increasingly as an immigration enforcement tool, allowing border officials to quickly expel migrants without the chance to request asylum in the US. Title 42 ended on 11 May.

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Trading in PacWest shares suspended amid fears of new US banking crisis

Banks seek to calm markets as investors fear repeat of First Republic and SVB failures

[NEW]Trading in shares of the California-lender PacWest have been suspended after plummeting 42% amid wider fears about the health of the US’s regional bank sector.

PacWest had sought to calm markets on Wednesday and said it was in talks with several potential investors after its shares plummeted by as much as 60%. But the sell-off continued on Thursday and affected other regional banks.

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Time running out for US financial firms to bid for ailing bank First Republic

Deadline of Sunday set for companies such as JPMorgan Chase to table offer for California bank whose shares have plummeted

US regulators are racing to secure the sale of California bank First Republic, which is on course to become the third American lender to fail this year, a sequence of collapses that has drawn uncomfortable parallels with the 2008 global financial crisis.

Half a dozen US banks are in the running to take over stricken First Republic, according to reports over the weekend, with leading bidders including JPMorgan Chase, Citizens Financial and PNC Financial Services.

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Silicon Valley Bank: Federal Reserve admits it failed to act forcefully enough

Report identifies Fed failures before bank collapse but also blames bad management, weakened regulations and lax supervision

The Federal Reserve failed to “take forceful enough action” ahead of the collapse of Silicon Valley Bank last month, the Fed said on Friday in a hard-hitting report that blamed extremely poor bank management, weakened regulations and lax government supervision for the failure.

Silicon Valley Bank’s collapse triggered an ongoing banking crisis for mid-sized US banks. On Friday, trading in another mid-sized bank – First Republic – was briefly halted after its share price fell 48%. The bank revealed on Monday that it had lost $100bn in deposits during last month’s banking crisis.

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Senate asks supreme court chief justice to testify on ethics amid Clarence Thomas revelations – as it happened

The Democratic chair of the Senate judiciary committee has asked chief justice John Roberts to testify on 2 May about the court’s ethics, following revelations of undisclosed links between a Republican megadonor and conservative justice Clarence Thomas.

In a letter to Roberts, judiciary committee chair Richard Durbin did not mention those reports about Thomas specifically, but noted that since he last addressed the court’s ethics in 2011 “there has been a steady stream of revelations regarding Justices falling short of the ethical standards expected of other federal judges and, indeed, of public servants generally. These problems were already apparent back in 2011, and the Court’s decade-long failure to address them has contributed to a crisis of public confidence. The status quo is no longer tenable.”

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Elizabeth Warren says Fed chair ‘failed’ and calls for inquiry into bank collapse

Progressive Democrat launches offensive on politicians on the left and the right who supported Trump-era deregulation of US banks

Political fall-out in the US from the collapse of Silicon Valley Bank continued on Sunday when leftwing Senator Elizabeth Warren hit the morning talk shows and repeatedly called for an independent investigation into US bank failures and strongly criticised Federal Reserve finance officials.

The progressive Democrat from Massachusetts, who has positioned herself as a consumer protection advocate and trenchant critic of the US banking system, told CBS’s Face the Nation that she did not have faith in San Francisco Federal Reserve president Mary Daly or Fed chairman Jerome Powell.

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Credit Suisse shares continue to fall despite efforts to calm nerves

Lifelines handed to Swiss bank and US regional bank First Republic fail to ease investor concerns

Credit Suisse shares came under renewed pressure on Friday, despite fresh attempts by central banks and politicians to calm fears about a crisis in the global banking industry sparked by the collapse of two US banks this week.

Shares in Credit Suisse, Switzerland’s second largest bank, fell 8% on Friday despite securing a £45bn emergency loan from the Swiss National Bank just days earlier to shore up its liquidity after a week of panic.

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Cash-strapped banks have borrowed $300bn from the Fed this past week

The central bank has lent about half as much as it provided during the 2008 crisis as banks rush to shore up their financials

Cash-short banks have borrowed about $300bn from the Federal Reserve in the past week, the central bank announced on Thursday.

Nearly half the money – $143bn – went to holding companies for two major banks that failed over the past week, Silicon Valley Bank and Signature Bank, triggering widespread alarm in financial markets. The Fed did not identify the banks that received the other half of the funding or say how many of them did so.

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