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New negotiators aim to break US debt ceiling deadlock

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The White House and congressional Republicans have appointed a new set of negotiators, injecting fresh hope into talks to raise the US debt limit.

"Now we have a format, a structure," House of Representatives Speaker Kevin McCarthy told reporters, saying a deal was "possible" by the end of the week.

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

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

Mr Biden departs later on Wednesday for Japan, where he will attend a Group of Seven (G7) summit, but he will return to Washington on Sunday, foregoing planned visits to Australia and Papua New Guinea.

Reaching the debt ceiling would mean the US government is unable to borrow any more money. This means it would no longer be able to pay the salaries of federal and military employees. Social Security cheques - payments that millions of pensioners in the US rely on - would also be suspended.

 

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