Tense negotiations are expected this summer over how and when to raise the nation's debt limit to prevent the United States from defaulting on its obligations. With a first House vote all but certain to fail, the White House is negotiating with House Republicans to try to find a solution while the Treasury Department shuffles money among accounts to prevent default. Budget expert Isabel Sawhill says success is imperative, since default would have dire consequences for the domestic economy and the nation's reputation in internal markets.
On June 1, Sawhill took questions on the nation's debt limit in a live web chat moderated by POLITICO.
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