Posted by on May 27, 2023 5:48 am
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Progress and a later deadline, but no debt deal

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Business & Economy

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The Big Story 

Progress and a later deadline, but no debt deal

The White House and House GOP negotiators may be making progress toward a deal to avert a devastating default on the national debt. 

© Tierney L. Cross / The Hill

Both sides are reportedly eyeing a two-year increase in the debt ceiling with spending caps for the same time.

 

That would push the threat of default beyond the 2024 election and give Republicans spending cuts to tout as a victory in negotiations.

 

The draft plan that could lift the debt limit by up to $4 trillion, according to some House Republicans, far more than the $1.5 trillion proposed in the House GOP debt limit increase bill.

 

And negotiators may have a little bit more time to pull something together.

 

Treasury Secretary Janet Yellen told lawmakers in a Friday letter that the U.S. was on track to run out of cash by June 5. 

 

Yellen’s new deadline is the firmest the Treasury secretary has given, but a few days later than the initially feared X-date of June 1. 

 

Negotiators may need those precious few days to overcome remaining obstacles to a deal.

 

GOP hardliners in the House are fuming over the emerging outline of the deal, insisting it doesn’t go far enough to curb spending.

Republican negotiators are trying to tamp down on leaks and reaffirm the importance of tighter work requirements on social programs to an eventual deal.

Welcome to The Hill’s Business & Economy newsletter, we’re Aris Folley and Sylvan Lane — covering the intersection of Wall Street and Pennsylvania Avenue.

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Essential Reads 

Key business and economic news with implications this week and beyond:

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The Hill Virtual Event 

The Economic Snapshot: CEO Summit, May 31, 2-3 p.m. ET

The post-pandemic economy has repeatedly defied expectations. Inflation is cooling, but risks of a recession and a debt ceiling showdown loom. The Hill will gather chief executives to dissect how companies are faring amid the economic uncertainty: United Airlines CEO Scott Kirby, National Restaurant Association president and CEO Michelle Korsmo, National Retail Federation president and CEO Matthew Shay and Altana AI co-founder and CEO Evan Smith will join.

The Ticker 

Upcoming news themes and events we’re watching:

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The Conference Board releases its closely watched consumer confidence index next Tuesday at 10 pm ET.
The Federal Reserve’s new Beige Book will be released next Wednesday at 2 pm ET.

In Other News 

Branch out with more stories from the day:

A fifth House Democrat on Friday called for Sen. Dianne Feinstein (D-Calif.) to resign her seat after her return to Washington following a prolonged absence due to shingles. 

Good to Know 

Business and economic news we’ve flagged from other outlets:

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Stocks rally Friday on hopes for a debt ceiling deal, Nasdaq notches fifth straight week of wins (CNBC)

Americans to spend $1.6 billion less on gas this Memorial Day weekend (CNN)

Kids could fill labor shortages, even in bars, if these lawmakers succeed (The Associated Press)

What Others are Reading 

Top stories on The Hill right now:

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What People Think 

Opinions related to business and economic issues submitted to The Hill:

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You’re all caught up. See you next week! 

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