the longterm fiscal policy of the us is about to be set by looming shortterm deadlines at best this is likely to mean the ambitious spending plans of the biden administration will be downsized it could lead to a shutdown of the federal government by week’s end and in the worst case the default of the us government on its debt obligations in october on the latter treasury secretary janet yellen said in a letter tuesday to house speaker nancy pelosi d calif the federal government will run out of flexibility