The CBO's report on Friday held out hope for more negotiating time, saying the Treasury can 'probably' finance government operations through at least the end of July if available cash and extraordinary borrowing measures can last through June 15, when quarterly estimated tax payments are due. 'If policymakers fail to resolve the debt ceiling crisis, these dismal views over the economy will exacerbate the dire economic consequences of default,' she said in a statement. Joanne Hsu, director of the Surveys of Consumers, pointed to the looming possibility of a government default as a factor weighing on sentiment. That's a worry, because strong spending by consumers has been one of pillars keeping an already slowing economy from sliding into a recession with sharp job losses. Sentiment among US consumers is tumbling, according to a preliminary survey by the University of Michigan on Friday. It's not just Wall Street that's concerned. On Friday, the Dow Jones Industrial Average closed slightly down on the session, after losing 414 points, or 1.23 percent, over the course of the week. The looming default deadline has already sent jitters through financial markets. Republican House Speaker Kevin McCarthy said there had not yet been 'enough progress for the leaders to get back together.' Staff-level talks are expected to continue through the weekend. Negotiations between White House officials and the staffs of congressional Republicans and Democrats are continuing, but a Friday debt limit meeting between President Joe Biden and top lawmakers was postponed until next week. While Democrats have called for a unencumbered increase to the debt limit, Republicans are demanding sharp spending cuts for the coming fiscal year before they agree to raise the limit on the Treasury's borrowing ability. Likewise, Treasury Secretary Janet Yellen has estimated a potential default around June 1, underscoring the urgency of resolving a bitter standoff between Republicans and Democrats over raising the nation's $31.4 trillion statutory borrowing cap. The United States faces a 'significant risk' of defaulting on payment obligations within the first two weeks of June without a debt ceiling increase, the Congressional Budget Office said on Friday. JPMorgan Chase CEO Jamie Dimon has said the bank is convening weekly meetings to discuss the implications of a potential US default, which he called 'potentially catastrophic'
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