Debt ceiling battle continues – Republicans believe in ‘deal’

But the negotiations are still far from a success, notes McCarthy after he and a group of other top politicians deliberated with Biden in the Oval Room of the White House.

Joe Biden also spoke out and declared that he was “optimistic” after Tuesday’s conversation.

Appoints special negotiators

Biden is cutting short his planned trip to Asia this week because of the debt ceiling negotiations. The US president travels to Japan on Wednesday to attend the G7 summit – but then returns home to the US.

The intention was that after the meeting with the G7 in Hiroshima, Biden would go on to Papua New Guinea and Australia.

– He is very disappointed with the actions of some members of Congress, said Australian Prime Minister Anthony Albanese to ABC News after a telephone conversation with Biden.

The visit would be the first visit by a US president to the country in nearly a decade.

According to several media, Biden has decided to appoint ministers in his government who will manage the direct negotiations with the Republicans on the debt ceiling.

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 enter a new critical phase in the coming days.

“Disastrous consequences”

Vice President Kamala Harris and Senate Democratic Leader Chuck Schumer, as well as Republican Senate Leader Mitch McConnell, also attended the brief meeting that began in the Oval Office.

The meeting is the second in a row and last time McCarthy was much more pessimistic.

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.

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