The White House and Republicans in Congress are in a standoff over the debt limit, which is the maximum amount of money Congress allows the federal government to borrow to cover its bills. If the limit is not raised or suspended, it could result in the first-ever U.S. default. Treasury Secretary Janet Yellen has warned that the U.S. could run out of money to pay its obligations as soon as June 1 if Congress doesn't address the matter. A default on sovereign debt would wreak havoc on the economy and roil markets around the world. If the U.S. were to default, the gross domestic product would drop 4 percent, and more than 7 million workers would lose their jobs, according to projections. The White House has remained steadfast that it is Congress's responsibility to raise the debt ceiling without conditions, while Republicans are refusing to lift the debt ceiling unless it is paired with spending cuts. Leaders from both parties will have to continue discussions in order to reach a compromise before the projected June 1st deadline.