Talks between the White House and the House Republicans were continuing as of Friday afternoon. While there have been reports of progress, no deal has been struck.

The outlines of a deal have been discussed for a while and include some sort of budget cap for the next fiscal year, permitting reform for energy projects, and clawing back to the Treasury unspent Covid program funding. Furthermore, Republicans seem likely to insist on some strengthening of work requirements for some food and social programs. Most importantly, the White House is likely to insist that the deal extends the debt ceiling for two years until after the 2024 elections. 

On Friday, Treasury Secretary Janet Yellen formally notified Speaker McCarthy that the so-called X-date is likely to arrive on June 5. However, with the massive cash flows of the US Government it is hard to be precise or certain about the date.

The negotiators all agree that a deal could come together at just about any point in the next few days.  While a lot has been written about Congress going home for the Memorial Day break and the time constraints in moving legislation through the process, that can all be overcome to avoid default.

As I and others have expected, the conservative Freedom Caucus is already compla...

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