The White House announced on Tuesday that President Joe Biden might not visit Australia during his upcoming Asia trip due to the US debt ceiling crisis. John Kirby, the White House national security spokesperson, stated that while Biden would proceed with his planned departure for Japan, the subsequent stop in Australia was being reevaluated.
Kirby clarified that there had been no cancellation yet but acknowledged that it could happen as they assess the situation. He mentioned that Biden would still meet with Indian Prime Minister Narendra Modi and Australia’s Anthony Albanese at the G7 summit in Hiroshima, Japan.
Although Kirby did not confirm any details, AFP reported, citing anonymous sources familiar with Biden’s plans, that the president would curtail his trip this week. The report indicated that Biden would return to Washington on Sunday for crucial negotiations with Republicans to prevent a potentially disastrous debt default. The sources mentioned that scheduled visits to Australia and Papua New Guinea had been canceled, but Biden would still attend the upcoming G7 summit in Japan.
The US debt ceiling crisis prompted high-stakes talks between Biden and Republican leaders on Tuesday, aiming to avert a possible default. Treasury Secretary Janet Yellen had previously warned that the US could default on its debts as early as June 1. The Treasury has emphasized the “catastrophic” implications of running out of funds, which would impact the ability to pay government employees and potentially raise interest rates, affecting businesses and mortgage holders.
Yellen sent a letter to Republican House Speaker Kevin McCarthy, highlighting the urgency of raising or suspending the debt limit by early June, potentially even by June 1. Both Biden and McCarthy blamed each other for the lack of progress in the initial discussions held last week.
McCarthy expressed the need to find a solution and work together to address the challenge. Biden, on the other hand, accused the Republican Party of holding the economy hostage, emphasizing the catastrophic consequences of a debt default for both the US and the global community.
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