Odds of Shutdown and Debt Default Rise

Politico: “If Senate Republicans hold the line next week [making good on their filibuster threat] and in the run-up to October’s potential default date, it would leave just two options: A strategic reversal by Democrats or a default. What’s more, Republicans’ debt ceiling tactics add to Democrats’ pileup of complications as they struggle to pass Biden’s jobs and families plan…”

“Neither side is showing any sign of backing down, and they’re both predicting someone will cave as the possibility of default becomes a reality. Democrats are betting that as the deadline gets closer, Republicans will begin to feel pressure from the business community and the necessary 10 will sign on to a debt suspension. Meanwhile, Republicans are assuming Democrats will eventually go it on their own, not wanting to be blamed for a debt default while they control Washington.”

Punchbowl News: “Funding for federal agencies runs out on Sept. 30. While we don’t believe there’ll be a shutdown, neither side has been willing to back down yet, so it’s a distinct possibility at this point. There’s more time to deal with the debt limit, although not too much more. Treasury Secretary Janet Yellen has warned that the federal government will run out of the ability to obtain new loans sometime in October.”

The Hill: GOP warns McConnell won’t blink on debt cliff.