Political Standoff: Trump, Debt Ceiling & Impending Shutdown

Republicans in the U.S. Congress are searching for a solution after President-elect Trump rejected a deal to prevent a government shutdown, insisting on removing the debt ceiling. A failure to pass a new agreement would lead to a shutdown affecting federal operations and millions of workers.

On Thursday, Republicans in Congress struggled to chart a path forward following President-elect Donald Trump's dismissal of a bipartisan agreement aimed at averting a partial government shutdown. Trump's insistence on abolishing the nation's debt ceiling is central to the impasse.

If a deal is not enacted by Saturday, the U.S. government faces a partial shutdown that would disrupt funding for critical services such as air travel and law enforcement, potentially delaying paychecks for over 2 million federal employees. Despite ongoing operations for services like Social Security, uncertainty looms large.

Previous confrontations over the debt ceiling have alarmed financial markets globally due to the potential risk of a U.S. government default, sparking fears of economic repercussions. The current suspension of the debt ceiling will expire on January 1, with Congressional attention likely hammering out solutions in the coming months.

(With inputs from agencies.)