Debt ceiling talks between US President Joe Biden and top policymakers on Tuesday have given new hope.
The two sides are actually still far from an agreement to raise the debt ceiling, according to Republican House Speaker Kevin McCarthy.
The impasse has forced President Joe Biden to cut short his trip to Asia, canceling a trip to Australia.
Even so, McCarthy said there was a possibility for an agreement to be reached by the end of this week.
This indirectly gives new hope to the US that the country can avoid a 'default' that could affect the global financial market.
Following the roughly one-hour discussion, Biden said there was still work to be done, but they had made progress to ensure the US did not default.
Biden, however, was disappointed that the Republican party did not consider his proposal to increase income.
Tax increases on the wealthy and corporations to help the government pay for benefits to other Americans are a key part of Biden's 2024 budget.
In addition to President Biden and McCarthy, several senior Democrats were also involved in the negotiations, including Vice President Kamala Harris, Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries.
