US President Joe Biden to cut short G7 trip for debt ceiling talks

After emergency talks at the White House, Republican congressional leaders have begun to sound hopeful that a deal to raise the US debt ceiling is within reach.

But House of Representatives Speaker Kevin McCarthy told reporters the two sides are still far apart.

The standoff has forced President Joe Biden to cut short a foreign trip.

Without a deal, the US could enter a calamitous default on its $31.4tr (£25tr) debt as soon as 1 June.

Mr Biden said Tuesday's hour-long Oval Office meeting was "good, productive", sounding upbeat about the prospects of an agreement.

Mr McCarthy told reporters he believed a deal was possible by the end of this week.

He told reporters a Biden-appointed representative would negotiate directly with his staff, which he said was a sign that "the structure of how we negotiate has improved".