A standoff over raising the US debt ceiling overshadowed a meeting of Group of Seven (G7) finance leaders, heightening US recession fears as central banks seek a soft landing for the global economy. President Joe Biden recently urged Republican lawmakers to move quickly to raise the limit on the government’s permitted borrowing from the current US$31.4 trillion or risk throwing the world’s biggest economy into recession.
Treasury Secretary Janet Yellen was expected to face questions from her G7 counterparts, meeting in the Japanese city of Niigata, on how Washington intends to prevent turbulence in financial markets, which have been jittery after the recent failure of several US banks. The US debt crisis is a significant issue for Japan, which is this year’s G7 chair and the world’s biggest holder of US debt.
Japan’s top financial diplomat,…
