Republican US House Speaker Kevin McCarthy and Democratic Senate Majority Leader Chuck Schumer have previously spoken of positive signs at a meeting with Biden at the White House. McCarthy even said that a deal is still possible this week – but the two sides are still far apart.

Yellen warned of non-payment

In light of the change in travel plans, Biden has invited Australian Prime Minister Anthony Albanese for an official state visit at a later date, the White House said on Tuesday. The government said it had also contacted the office of the Prime Minister of Papua New Guinea, James Marape, to notify them of the change. Biden wants to leave for Japan today.

US Treasury Secretary Janet Yellen recently warned that a potential default by the world’s largest economy could occur as early as June 1. This could trigger a global financial crisis and a severe economic downturn. The US would then no longer be able to pay most of its bills – millions of people could lose their jobs as a result. In 2011, the majority of Republicans in Congress held off on raising the debt ceiling. At that time, the US credit rating was downgraded for the first time in history.

G7 meeting on the war between Ukraine and China

However, Biden will attend the G7 meeting of the top industrialized nations in Hiroshima, Japan, as planned. Apart from the US, the G7 countries also include Germany, France, Italy, the UK, Japan and Canada, as well as representatives of the European Union. Heads of state and government gather for the summit from Friday to Sunday (19-21 May). Apart from Russia’s war of aggression in Ukraine and global economic issues, China’s role must also be discussed.

Afterward, Biden had actually planned visits to the island nations of Papua New Guinea and Australia. In Sydney on May 24, he is supposed to attend a meeting of the so-called Quad Alliance along with the heads of government of Japan, India and Australia. Following Biden’s announcement, Australian Prime Minister Albanese canceled the meeting.