Macro Briefing: 8 May 2023

* “Economic chaos” awaits if Congress doesn’t raise debt ceiling
* Time is running short for Biden-McCarthy debt-ceiling talks
* China increases its gold reserves for a sixth straight month
* US payrolls rose more than expected in April
* US economic activity appears to be stabilizing at slow growth pace:

The Federal Reserve last week raised interest rates again in the wake of three bank failures, which highlights stronger headwinds for the economy, some economists advise. But Louis Navellier, chief investment officer at Navellier & Associates, offers a different view: “What it really says is that the economy is not in trouble, can easily handle slightly higher rates, and that the regional banking indigestion of the higher rates is not a reason to stop the fight to slow inflation,” he writes in a note to clients.