Associated Press: “Administration officials have downplayed the risk of simultaneously slashing taxes and boosting spending, arguing that the result will be faster growth that will then shrink the debt. But the higher deficits would come just as the Federal Reserve is on course to continue — and perhaps accelerate — the pace of its short-term rate hikes. The Fed’s rate increases will likely lead, in time, to higher borrowing rates for consumers and businesses and likely slow economic growth.”

“The market’s plunge over the past week was initially ignited by fears of higher inflation and interest rates. But investors have also had to consider a new threat: A two-year government funding deal that would add about $300 billion to budget deficits from higher spending. The Fed might have to respond by raising rates more aggressively to counter the stimulative effect of the spending increases.”

“The reason I’m here tonight is to put people on the spot. I want people to feel uncomfortable. I want them to have to answer people at home who said, ‘How come you were against President Obama’s deficits and then how come you’re for Republican deficits?'”

— Sen. Rand Paul (R-KY), quoted by the New York Times.

“The House of Representatives approved a major budget deal early Friday morning, ending a brief government shutdown overnight and sending the measure to the President for his signature,” CNN reports.

“The House vote was 240-186. The GOP-controlled chamber needed help from House Democrats to clear the bill. The Senate approved the measure earlier on Friday morning.”

“A government shutdown will begin at midnight. The Senate has recessed until 12:01 a.m. without passing a spending bill,” the Washington Post reports.

“The Senate planned to vote early Friday morning on a spending bill that would pour billions of dollars into the military and domestic programs while keeping the government operating.”

“The fate of the bill was uncertain in the House, where conservatives balked at adding billions to the nation’s debt and liberals demanded action on protecting young undocumented immigrants from deportation.”

“The federal government on Thursday night slid toward at least a brief shutdown as a single Republican senator, Rand Paul of Kentucky, held off a vote on a far-reaching budget deal that would stave it off,” the New York Times reports.

“Angered at the huge spending increases at the center of the deal, Mr. Paul delayed the vote for hours with a demand to hold a vote on an amendment.”

Washington Post: White House tells agencies to prepare for shutdown as budget bill stalls.