Although economists are increasingly confident the economy can bypass a recession, consumers' six-month outlook has fallen to the lowest it's been since May.
In a letter to lawmakers today, Janet Yellen says the Treasury Department's "best estimate" is that its extraordinary accounting measures will no longer be able to satisfy all the government's obligations by early June.
With inflation heading downward, the debate is now shifting to what happens after this fight is over— and the risks of getting it wrong are high, both economically and politically.