White House economists on Wednesday warned of “severe damage” to the U.S. economy in the event of a debt default and detailed potential job losses and stunted economic growth if lawmakers engage in “brinkmanship” before ultimately reaching a deal to meet the government's financial obligations.
A new report from the Council of Economic Advisers evaluated three potential scenarios as the Treasury Department said that without congressional action, it will run out of tools as soon as June 1 to avoid a default.
