{"id":68132,"date":"2023-05-22T08:49:30","date_gmt":"2023-05-22T12:49:30","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=68132"},"modified":"2023-05-22T08:49:30","modified_gmt":"2023-05-22T12:49:30","slug":"coffee-with-greta-debt-ceiling-drama","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/05\/22\/coffee-with-greta-debt-ceiling-drama\/","title":{"rendered":"Coffee With Greta: Debt Ceiling Drama"},"content":{"rendered":"

DJIA Futures: <\/b>+37 (+0.1%)<\/span><\/p>\n

SPX Futures: <\/b>+4 (+0.1%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+5 (+0.04%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are flat as traders remain on edge over debt ceiling negotiations.\u00a0<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Debt Ceiling Talks To Continue<\/span><\/h2>\n

President Biden and House Speaker Kevin McCarthy are set to meet at the White House today to resume negotiations for a debt ceiling deal.\u00a0<\/span><\/p>\n

The meeting comes after McCarthy said he had a \u201cproductive\u201d phone call with Biden on Sunday.\u00a0<\/span><\/p>\n

Staff reportedly restarted talks Sunday evening.\u00a0<\/span><\/p>\n

Republicans are demanding spending cuts in exchange for a debt limit increase.\u00a0<\/span><\/p>\n

But Biden said, \u201cIt\u2019s time for Republicans to accept that there is no bipartisan deal to be made solely, solely, on their partisan terms.\u201d<\/span><\/p>\n

Treasury Secretary Janet Yellen reaffirmed the June 1 deadline to come to an agreement.\u00a0<\/span><\/p>\n

She said, \u201cThere can be no acceptable outcomes if the debt ceiling isn\u2019t raised, regardless of what decisions we make.<\/span><\/p>\n

Fed\u2019s Kashkari: June Pause Doesn\u2019t Mean Rate Hikes Are Over<\/span><\/h2>\n

Minneapolis Fed President Neel Kashkari is cautioning Americans against reading too much into a pause at the next Fed meeting.\u00a0<\/span><\/p>\n

Kashkari told <\/span>CNBC<\/span><\/a> this morning that he\u2019s open to a pause in June but that would not indicate the Fed is done hiking rates.\u00a0<\/span><\/p>\n

He said, \u201cIf we did, if we were to skip in June, that does not mean we\u2019re done with our tightening cycle. It means to me we\u2019re getting more information.\u201d<\/span><\/p>\n

CME Group\u2019s <\/span>FedWatch<\/span><\/a> Tool shows 82.5% of traders expecting no rate hike on June 14.<\/span><\/p>\n

But Kashkari threw cold water on the market\u2019s expectations of cuts later this year.\u00a0<\/span><\/p>\n

He said, \u201cDo we then start raising again in July? Potentially, and so that\u2019s the most important thing to me is that we\u2019re not taking it off the table.\u201d<\/span><\/p>\n

The Fed has vowed to remain data-dependent for future rate decisions after the last 25bps hike in May.<\/span><\/p>\n

PacWest Sells Off Construction Loans<\/span><\/h2>\n

PacWest Bancorp <\/b>(PACW) shares are jumping 8.4% ahead of the open after the regional bank announced it has agreed to sell some real estate construction loans to <\/span>Kennedy-Wilson Holdings <\/b>(KW).<\/span><\/p>\n

KW shares are also up 2.9% in premarket trade.<\/span><\/p>\n

PacWest sold 74 loans with an outstanding balance of $2.6 billion to Kennedy-Wilson.\u00a0<\/span><\/p>\n

The bank also plans to sell six more construction loans with a total balance of $363 million to the company.\u00a0<\/span><\/p>\n

The transaction between PacWest and Kennedy-Wilson is expected to close in multiple deals during this current quarter and early Q3.<\/span><\/p>\n

JPMorgan Hikes Key Revenue Target\u00a0<\/span><\/h2>\n

JPMorgan Chase <\/b>(JPM) shares are up 0.4% ahead of the opening bell after the bank hiked its full-year revenue target.\u00a0<\/span><\/p>\n

Slides for an investor presentation today show the largest bank in the U.S. now expects to generate $84 billion in net interest income this year.<\/span><\/p>\n

That\u2019s an increase of $3 billion from the guidance given in its Q1 earnings report, which was already an increase of $7 billion from the previous outlook.<\/span><\/p>\n

The higher forecast comes after JPMorgan\u2019s takeover of First Republic Bank from regulators.\u00a0<\/span><\/p>\n

But the bank did warn \u201csources of uncertainty\u201d around deposits and the economy could impact its outlook.\u00a0<\/span><\/p>\n

CEO Jamie Dimon is expected to speak in a Q&A session during today\u2019s investor event.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

DJIA Futures: +37 (+0.1%) SPX Futures: +4 (+0.1%) NASDAQ Futures: +5 (+0.04%) Good morning friends! Futures are flat as traders remain on edge over debt ceiling negotiations.\u00a0 Let\u2019s get right to it! Debt Ceiling Talks To Continue President Biden and House Speaker Kevin McCarthy are set to meet at the White House today to resume negotiations for a debt ceiling deal.\u00a0 The meeting comes after McCarthy said he had a \u201cproductive\u201d phone call with Biden on Sunday.\u00a0 Staff reportedly restarted talks Sunday evening.\u00a0 Republicans are demanding spending cuts in exchange for a debt limit increase.\u00a0 But Biden said, \u201cIt\u2019s time for Republicans to accept that there is no bipartisan deal to be made solely, solely, on their partisan terms.\u201d Treasury Secretary Janet Yellen reaffirmed the June 1 deadline to come to an agreement.\u00a0 She said, \u201cThere can be no acceptable outcomes if the debt ceiling isn\u2019t raised, regardless of what decisions we make. Fed\u2019s Kashkari: June Pause Doesn\u2019t Mean Rate Hikes Are Over Minneapolis Fed President Neel Kashkari is cautioning Americans against reading too much into a pause at the next Fed meeting.\u00a0 Kashkari told CNBC this morning that he\u2019s open to a pause in June but that would not indicate the Fed is done hiking rates.\u00a0 He said, \u201cIf we did, if we were to skip in June, that does not mean we\u2019re done with our tightening cycle. It means to me we\u2019re getting more information.\u201d CME Group\u2019s FedWatch Tool shows 82.5% of traders expecting no rate hike on June 14. But Kashkari threw cold water on the market\u2019s expectations of cuts later this year.\u00a0 He said, \u201cDo we then start raising again in July? Potentially, and so that\u2019s the most important thing to me is that we\u2019re not taking it off the table.\u201d The Fed has vowed to remain data-dependent for future rate decisions after the last 25bps hike in May. PacWest Sells Off Construction Loans PacWest Bancorp (PACW) shares are jumping 8.4% ahead of the open after the regional bank announced it has agreed to sell some real estate construction loans to Kennedy-Wilson Holdings (KW). KW shares are also up 2.9% in premarket trade. PacWest sold 74 loans with an outstanding balance of $2.6 billion to Kennedy-Wilson.\u00a0 The bank also plans to sell six more construction loans with a total balance of $363 million to the company.\u00a0 The transaction between PacWest and Kennedy-Wilson is expected to close in multiple deals during this current quarter and early Q3. JPMorgan Hikes Key Revenue Target\u00a0 JPMorgan Chase (JPM) shares are up 0.4% ahead of the opening bell after the bank hiked its full-year revenue target.\u00a0 Slides for an investor presentation today show the largest bank in the U.S. now expects to generate $84 billion in net interest income this year. That\u2019s an increase of $3 billion from the guidance given in its Q1 earnings report, which was already an increase of $7 billion from the previous outlook. The higher forecast comes after JPMorgan\u2019s takeover of First Republic Bank from regulators.\u00a0 But the bank did warn \u201csources of uncertainty\u201d around deposits and the economy could impact its outlook.\u00a0 CEO Jamie Dimon is expected to speak in a Q&A session during today\u2019s investor event.\u00a0<\/p>\n","protected":false},"author":41,"featured_media":68133,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-68132","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/68132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=68132"}],"version-history":[{"count":1,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/68132\/revisions"}],"predecessor-version":[{"id":68136,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/68132\/revisions\/68136"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/68133"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=68132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=68132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=68132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}