Wednesday morning news: May 17, 2023

Debt limit » Possible progress toward a debt ceiling deal in Washington.

After a White House meeting Tuesday, House Speaker Kevin McCarthy told reporters:

KEVIN MCCARTHY: Appoint someone from the president’s team who can work with the speaker’s team to see if we can come to an agreement. That is what the decision was that was made in this meeting. So the structure of how we negotiate has improved. So it now gives us a better opportunity.

He said a deal is possible by the end of week, but said the two sides are still far apart. Still, it was the first sign of progress since top level talks between the two sides began.

President Biden remarked:

BIDEN: There was an overwhelming consensus I think in today’s meeting with the Congressional leaders that defaulting on the debt is simply not an option.

Democrats object to a Republicans’ proposal to reduce overspending while raising the debt ceiling.

The Treasury Dept. says the two sides have until early June at the latest to reach a deal to avoid defaulting on US debts.

AI hearing » On Capitol Hill, the head of the artificial intelligence company that makes ChatGPT was in the hot seat Tuesday. OpenAi CEO Sam Altman told senators that the government should step in and help limit the risks of AI.

SAM ALTMAN: We understand that people are anxious about how it could change the way we live. We are too. But we believe that we can and must work together to identify and manage the potential downsides so that we can all enjoy the tremendous upsides.

Altman proposed forming a U.S. or a global agency that would license the most powerful AI systems and have the authority to “take that license away and ensure compliance with safety standards.”

Democratic Sen. Richard Blumenthal voiced some concerns about the new technology.

BLUMENTHAL: We have seen how algorithmic biases can perpetuate discrimination and prejudice, and how the lack of transparency can undermine public trust.

Lawmakers said they’re also worried about the potential for AI to unpend jobs, among other things.

Banking hearing » In a separate hearing, lawmakers grilled top former executives from two banks that failed this year.

The former CEO of Silicon Valley Bank, Greg Becker, told members of the Senate Banking Committee:

GREG BECKER: We took risk management seriously and worked closely with and were responsive to the various regulators who oversaw SVB.

But Republican Sen. Tim Scott fired back:

TIM SCOTT: It’s hard to believe that comment as it relates to the uniqueness of your bank. Your bank had about 90% of its deposits uninsured.

Signature Bank’s former Chairman Scott Shay said his bank was reasonably sound financially, blaming the failure on unprecedented outside forces.

Federal regulators have suggested mismanagement was to blame.

Retail » Americans spent slightly more money with retailers last month than in March. WORLD’s Josh Schumacher has more.

JOSH SCHUMACHER: The Commerce Department reports that sales rose 0.4% in April, including online shopping and dining out, buoyed by a solid job market.

Sales at car and auto parts dealers rose 0.4%. Business at gas stations fell 0.8% despite an uptick in prices at the pump.

But retail sales data from the U.S. are not adjusted for inflation unlike many other government reports. And all indications are that shoppers are struggling to keep up with inflation.

For WORLD, I’m Josh Schumacher.

Ukraine » The Ukrainian military said Tuesday that it shot 18 Russian rockets including six hypersonic missiles Russia has touted as impossible to shoot down.

Ukraine says none of the missiles made it through.

But the Russian defense ministry spokesperson, heard here, claimed a missile destroyed a U.S.-made Patriot missile defense system.

Meantime, European leaders will meet today in Iceland to discuss alleged human rights violations during Russia’s invasion of Ukraine.

NM shooter » Police have identified the 18-year-old man who shot and killed three people and injured six others in a New Mexico neighborhood on Monday as a high school student named Beau Wilson.

Farmington Deputy Police Chief Kyle Dowdy:

KYLE DOWDY - We have come across some indication that potentially he had some mental health issues, and that's through interviews with involved parties in his life.

Dowdy says the shooter marched up and down a neighborhood shooting randomly at people, houses, and cars.

Police responded to emergency calls and killed him within minutes.

I'm Kent Covington.

Straight ahead: Durham report. Plus, one mom’s story of clean water and sharing the gospel.

This is The World and Everything in It.

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