Good morning. Here’s what you need to know:
1. The Wall Street Journal reports: “Credit rating agencies moved closer to an unprecedented downgrade of the U.S. government’s debt amid deteriorating talks in Washington, with President Barack Obama abruptly walking out of a key meeting Wednesday with Republicans seeking a deal to raise the federal borrowing limit.”
2. Standard & Poor’s privately has told US lawmakers that it might cut the U.S. credit rating if the government fails to make any of its expected payments even if it makes all its debt payments, people familiar with the matter said.
3. As noted above, yesterday’s meeting at the White House on raising the debt ceiling and lowering the deficit went nowhere and ended with President Obama “abruptly” leaving the room. “Debt Talks Blow Up” is the headline above the Politico story.
4. Federal Reserve Chairman Ben Bernanke yesterday warned of a “huge financial calamity” if President Obama and the Republicans cannot agree on a budget deal that allows the federal debt ceiling to be increased.
5. Senate Minority Leader Mitch McConnell (R-KY) yesterday warned that the Republican Party “brand” would be “destroyed” if Congress allows the US government to default. This view was sharply contested by House Majority Leader Eric Cantor.
6. Voters seem comfortable with a mix of spending cuts and tax increases to reduce the federal deficit, according to a new Gallup Poll. Voters oppose raising the debt ceiling.
7. The Federal Reserve is prepared to take new action if the recovery falters, Chairman Ben Bernanke said yesterday, raising the possibility of QE3. Markets reacted favourably.
8. The Washington Post reports: “A new International Monetary Fund assessment of Greece paints a tough picture of the nation’s ability to carry out a recently approved economic program, casting further doubt on the ultimate success of Europe’s $160 billion bailout of the country.“
9. Three remotely detonated bombs killed 17 people and injured 131 others in Mumbai, India yesterday. Investigators are frantically searching for leads.
NOW WATCH: Briefing videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.