Business & Economy

Business & Economy

The Big Story 

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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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.

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In Other News 

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Fifth House Democrat calls on Feinstein to resign

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. 

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