Word that Majority Leader Harry Reid, D-Nev., and Republican leader Mitch McConnell of Kentucky were at work on the fallback plan came as Obama and congressional leaders met for a fifth straight day in debt-crisis talks at the White House.
McConnell pronounced the session a good one and said, "We're going to continue to discuss a way forward over the next couple of days and see what happens."
A White House official said congressional leaders would consult with their rank-and-file members on the spending cuts and tax increases proposed by one side or the other so far, and negotiators would probably meet during the weekend.
Obama was slated to hold a presss conference Friday to address the status of negotiations at 11 a.m. ET.
The day's events were shadowed by warnings from Federal Reserve Chairman Ben Bernanke and JPMorgan Chase CEO Jaime Dimon. Speaking separately, the two men admonished bickering lawmakers that failure to avoid an unprecedented default could have a devastating effect on an already anemic U.S. economy. READ FULL STORY
