US debt ceiling: Republicans hopeful of deal to avert default

After emergency talks at the White House, US President Joe Biden and Republican congressional leaders are sounding 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 fiscal impasse has forced President Biden to cut short a foreign trip to Asia.

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

The White House said on Tuesday that Mr Biden is "optimistic" an agreement can be reached. read more