The reason is that the US risks entering a fiscal crisis if the country’s debt ceiling is not raised, and the negotiations on the issue with the Republicans will enter a new critical phase in the coming days.
As early as Tuesday, Biden and the Republican Speaker of the House of Representatives, Kevin McCarthy, will hold a meeting and there negotiate how the debt ceiling can be raised – so that the government does not run out of money.
The US Treasury Department has warned of “catastrophic” consequences if the US could not pay its bills, which would, among other things, make the country unable to pay salaries to public employees and likely trigger a rise in interest rates – which would also shake financial markets around the world.
The intention was that after the meeting with the rich men’s club G7 in Hiroshima, Biden would go on to Papua New Guinea and Australia.