Biden, facing debt ceiling debate, could skip Australia part of Asia trip

But the meeting ended on an upbeat and unexpected note as McCarthy seemed optimistic coming out of the meeting with Biden and other congressional leaders.

McCarthy told reporters Biden is trying to reach a debt ceiling deal by June 1 to lift the threat of economic calamity.

"I did think this one was a little more productive... We've got a short timeframe here to try to find out how we could come to an agreement," McCarthy told reporters, saying the less-than-an-hour session had set the stage for future conversations.

Republican Congressman Garrett Graves will meet with White House counsellor to President Biden, Steve Ricchetti, and Office of Management and Budget Director, Shalanda Young, as part of efforts to break an impasse on the debt ceiling, McCarthy said.

Biden and McCarthy sat down in the Oval Office with Senate Majority Leader Chuck Schumer, House Democratic Leader Hakeem Jeffries and Senate Republican Leader Mitch McConnell.

The president leaves on Wednesday for a three-day G7 summit in Japan, but a source said Biden decided on Tuesday to skip a stop to Papua New Guinea and Australia afterwards.

Ahead of the Oval Office meeting, Biden and McCarthy's aides have discussed the requirements for two key programs that provide food and cash aid to families, in the past week's negotiations over raising the government's $31.4 trillion debt ceiling to avoid an economically catastrophic default.

Expanding the work requirements has been a key demand of Republicans, who are also pushing for spending cuts in exchange for their votes to raise the debt limit.

Biden and McCarthy have little time to strike a deal. On Monday, the Treasury Department reiterated its warning that it could run short of money to pay all its bills as soon as June 1, triggering a default that economists say would be likely to spark a sharp economic downturn.

McCarthy on Tuesday told reporters that his party, which controls the chamber by a 222-213 margin, would only agree to a deal that cuts spending.

Both parties agree on the need for urgent action.

Quad meeting in Sydney cancelled after Biden postponement

Australian Prime Minister Anthony Albanese said on Wednesday the Quad meeting of the leaders of Australia, Japan, India and the United States would not go ahead in Sydney next week after speaking with US President Joe Biden overnight.

Biden postponed his plans to travel to Australia and Papua New Guinea on Tuesday due to an unfolding crisis over the US debt ceiling, prompting the cancellation of the Sydney meeting.

Albanese indicated that the four leaders would meet at the G7 Summit to be held in Japan later this month.

Biden had planned to attend a meeting of the four so-called Quad nations - the United States, Japan, Australia and India. The group was formed with a mind toward countering China's rising influence in the Indo-Pacific region.

Reuters