Washington's logjam over the government shutdown, and its wrangling over raising the national debt limit, have already slowed economic growth, many economists say. But threat of a debt default is grave enough to coax lawmakers to resolve differences, they hope.
The economy added 195,000 jobs in June, a strong showing that beat analysts' expectations. Steady job growth is good news, but it means that higher interest rates and an easing of Federal Reserve bond buying could come sooner rather than later, putting investors on edge.
Signs of any economic duress from the 'sequester' are few and far between four months in. But the $85 billion in federal spending cuts slated for this fiscal year are likely to be felt as summer deepens.
The economy should continue to add jobs despite the sequester. The jobs report shows the housing recovery bolstering employment. Homeowner optimism is likely to improve, too.