Scott Horsley

Treasury Secretary Janet Yellen says unless lawmakers raise the debt ceiling by June 5, the government won't have enough money to pay all of its bills.

House Republicans and the White House are racing to clinch a debt deal, with just days before the U.S. could run out of money to pay its bills.

Did spending by President Biden and the Democrats rack up the country's debt? Is a default the same as a government shutdown? Here are answers to things people often get wrong about the debt ceiling.

If you're confused about the debt ceiling battle being waged in Washington right now, you're not alone. There are a lot of misconceptions about what's behind the drama and what's at stake. We'll separate fact from fiction.

The Treasury Department is not set up to pay some of its bills and not others. But it may be forced into that situation, if Congress doesn't raise the debt ceiling soon.

Unless Congress acts to raise the federal debt limit, the U.S. government could run short of cash to pay its bills as early as June 1. Seniors, veterans, government workers and others would suffer.

Unless Congress and the White House reach a deal to raise the debt ceiling, real people could suffer, from service members to Social Security recipients to would-be homebuyers.

The IRS is working to develop its own free electronic tax-filing system in a potential challenge to commercial products such as TurboTax. The agency plans a pilot test of the program next year.

Backstopping the deposits at two failed banks cost the government billions. The FDIC has a plan to recover that money through a special charge, most of which would be paid by the U.S.'s biggest banks.

Annual inflation fell to 4.9% in April — the lowest it's been in two years — but prices are still climbing. A spike in used car prices contributed to last month's jump in the cost-of-living index.

Consumer prices in April were 4.9% higher than a year ago, according to the Labor Department. Prices rose 0.4% between March and April.

The Labor Department reports Wednesday on consumer prices for April. Inflation has cooled from a four-decade high last summer, but prices are still climbing too fast for comfort.

Research shows Black Americans are audited more often as other taxpayers. Analysts say the IRS' practice is unfair and produces less money for the government than a more equitable system would.

U.S. employers added 253,000 jobs in April — more than forecasters were expecting. The unemployment rate dipped to 3.4%, matching the lowest level in more than half a century.

The U.S. job market may be getting a second wind. Employers added 253,000 jobs in April, a modest uptick from the month before. The unemployment rate dipped to 3.4%.

The jobs figure is significantly higher than most forecasters expected. But the outlook for the labor market remains uncertain due to banking turmoil and rising interest rates.

The Federal Reserve raised interest rates by a quarter percentage point Wednesday in an effort to curb persistent inflation. It was the tenth rate hike in 14 months, and possibly the last for a while.

The Fed is expected to raise interest rates Wednesday for the tenth time in 14 months. While inflation is still well above the Fed's target, forecasters think this could be the last hike for a while.

Treasury Secretary Janet Yellen warned lawmakers that unless the debt ceiling is raised soon, the federal government may not have enough money to pay its bills as early as June 1.

The Federal Reserve and the FDIC reported on lessons learned from March's bank failures, including lapses in government oversight and ideas on how to prevent similar meltdowns going forward.