Global Courant 2023-05-17 01:00:10
WASHINGTON — President Joe Biden will cut short a visit to Asia as the push to strike a deal to raise the country’s borrowing limit becomes more urgent, according to a source familiar with the president’s plans.
The White House had emphasized how Biden’s presence at a Group of Seven major industrial nations summit in Japan this week would reinforce optimism that the US is able to resolve its differences at home. The president then planned to travel to Australia for a “Quad” rally on May 24, with China’s provocative actions in the region expected to take center stage in meetings with the leaders of Australia, India and Japan.
But with a deal still out of reach and looming the threat of the country’s first-ever bankruptcy, Biden will return to Washington early to continue negotiations.
Biden will also skip a visit to Papua New Guinea, where he planned to stop on his way to Sydney to discuss regional security and economic and climate support.
“President Biden has decided to return to the United States on Sunday, immediately following the completion of the G7, to ensure that Congress takes action by the deadline to avoid a default,” said a well-known source.
Biden will meet with congressional leaders on Tuesday afternoon and depart for Hiroshima on Wednesday.
Failing an agreement threatens the possibility of default on the $31.4 trillion national debt, a catastrophic outcome for the US economy. Treasury Secretary Janet Yellen had warned this could arrive as early as June 1 and repeated the warning on Monday.
Biden, Senate Majority Leader Chuck Schumer, DN.Y., and House Minority Leader Hakeem Jeffries, DN.Y., have said they will only pass a bill to increase the no-strings borrowing limit. McCarthy maintains his position that cuts must be agreed to raise the ceiling. The two sides have identified potential areas of agreement, with Biden looking to open the door to work requirements this weekend.
After meeting with congressional leaders last week, Biden said he was “confident” the country could avoid bankruptcy, but warned he would stay in town to continue working on a deal if necessary.
A meeting scheduled for last Friday has been postponed. Personnel negotiators met over the weekend and into Monday before the president and four congressional leaders reconvened.
As negotiations drag on, the White House has highlighted the role of Biden’s journey in rallying US allies on global economic and security issues and his approach to China.
Work to counter Russia’s war in Ukraine and provocative actions by China in the South China Sea and Taiwan Strait were expected to be front and center during the president’s visits in Asia.
Biden had scheduled a meeting with industrialized nations in Hiroshima, Japan, followed by a “Quad” meeting in Sydney with Japanese Prime Minister Kishida Fumio, Indian Prime Minister Narendra Modi and Australian Prime Minister Anthony Albanese.
Biden declined to say last week when he believed a deal should be reached, telling reporters that “some negotiations happen at the last second.”
