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The Fed chief also flagged that after a year of aggressive rate increases, officials can afford to make “careful assessments” of the impact of rate hikes on the economic outlook, a stance that was viewed as dovish by markets. interest rates might not need to rise as much given the tighter credit conditions from the banking crisis. On Friday, reports that debt ceiling negotiations had reached an impasse rattled markets even as Federal Reserve Chairman Jerome Powell said U.S. “While for much of last week the headlines were that a deal is within reach, the breakdown in talks from Republican negotiators on Friday has many thinking that we could be pushed right to the June deadline before we see an agreement.” “In the art of brinkmanship, it feels that to get a deal we must see greater market volatility,” said Chris Weston, head of research at Pepperstone.

South Korea (.KS11) bucked the sluggish trend, gaining 0.6%.

Japan’s Nikkei (.N225) was also mostly unchanged and Australia’s resources-heavy shares (.AXJO) slipped 0.2%. MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was last flat, struggling for direction. In early trade on Monday, S&P 500 futures lost 0.1% while Nasdaq futures were flat. President Joe Biden and House Republican Speaker Kevin McCarthy will meet to discuss the debt ceiling on Monday, less than two weeks before the June 1 deadline after which Treasury expects the federal government will struggle to pay its debts.Ī failure to lift the debt ceiling would trigger a default, sparking chaos in financial markets and a spike in interest rates. debt ceiling negotiations approached crunch time after stalling last week, while lingering banking fears and fresh geopolitical worries capped sentiment.

SYDNEY, May 22 – Asian stocks and Wall Street futures slipped on Monday as U.S. G7 vows to cut China trade reliance, Beijing bars Micron.Powell less hawkish than feared Yellen warns more bank mergers.

US debt ceiling talks to resume after hitting a jam on Friday.S&P 500 futures down 0.1%, Japan’s Nikkei flat.