US President Joe Biden’s much-anticipated trip to Australia has been cancelled as economic pressure builds at home.

Mr Biden announced he needed to stay within the US as the country reaches its debt ceiling limit, dramatically impacting how much they can borrow to stave off financial disaster.

Nine News US correspondent Jonathan Kearsley told Millsy and Karl on 6PR Breakfast the President has made his apologies, but will now attempt to negotiate with the Senate to increase borrowing ability.

“If a deal is not reached, America’s government could default – essentially the government would not be able to pay bills, and that could plunge the US into a recession which would have repercussions right across the Western economy,” Mr Kearsley said.

Press PLAY to hear more about Biden’s change of plans and the economic drama

Image: Getty/Anna Moneymaker