US debt standoff overshadows G7 finance leaders' meeting

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A standoff over raising the US debt ceiling overshadowed a meeting of G7 finance leaders set to begin on Thursday, heightening US recession fears as central banks seek a soft landing for the global economy

piled pressure on Republican lawmakers on Wednesday to move quickly to raise the limit on the government's permitted borrowing from the current $31.4 trillion or risk throwing the world's biggest economy into recession.

The U.S. debt crisis is a headache for Japan, which is this year's G7 chair and the world's biggest holder of U.S. debt.the G7 finance leaders might discuss the U.S. debt ceiling but likely would not explicitly mention it in a joint statement at the end of the meeting on Saturday. As rapid rate hikes by the Federal Reserve weigh on the U.S. economy, recent data has shown signs of weakness in China, the world's second-largest economy.rose at the slowest pace in more than two years in April, while factory gate deflation deepened, data showed on Thursday, dashing policymakers' hopes that a rebound in the country's demand would underpin global growth.

 

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