Congress on Edge as Double-Barreled Economic Threat Looms

Congress is facing a double-barreled economic threat as the stability of the banking system and the stalemate over raising the debt limit are causing financial anxiety. Republicans and Democrats disagree on how recent bank closures should impact the debt limit stalemate, with Republicans insisting on deep spending cuts before raising the debt ceiling, while Democrats argue that the last thing the economy needs is the specter of a default from a failure to raise the debt limit. The two parties drew different lessons from the 2008 and 2011 economic crises, leading to a clash over increasing the debt limit, with scant progress made toward finding a resolution that could avoid undermining the economy.