White House and Capitol Hill negotiators make progress on a deal to avoid defaulting on the national debt.
The deal so far: Contours of a debt ceiling deal have been largely worked out, including discretionary spending and defense spending, with sticking points on work requirements and permitting.
* The deal being negotiated would raise the government’s borrowing limit for two years and put two-year caps on federal spending.
Deadline pressure: Treasury Secretary Janet Yellen warned Congress has until about June 1 to raise or suspend the debt limit.
* House Speaker Kevin McCarthy vowed to give members 72 hours to review the text before putting it to a floor vote, with the Senate voting on the measure if passed by the House.
Potential consequences: Economists agree that an actual default could result in a recession, affecting financial markets, interest rates, government workers, Social Security recipients, and making it difficult for businesses and citizens to borrow money.
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