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US Encouraged by Egyptian President's Talks with Judiciary

AFP/Getty Images(WASHINGTON) -- The State Department said there were indications Monday that Egypt was working to resolve its current crisis stemming from President Mohammed Morsi's decision last week to assume sweeping powers that led to riots throughout the country.

Among other things, Secretary of State Hillary Clinton held talks with Egyptian Foreign Minister Mohamed Kamel Amr to get an update on Morsi's promise that his decree would only be temporary.

In Washington, State Department spokeswoman Victoria Nuland told reporters, "Our understanding from the Egyptian side is that there are now discussions ongoing among a number of the stakeholders, that President Morsi is conducting consultations with various groups including with the judiciary."

Morsi angered many Egyptians by claiming that his decision was impervious to judicial review and furthered complaints by various factions in the country that they were being routinely ignored by the Islamist-dominated assembly.

After his meeting with the Supreme Court Judicial Council on Monday, Morsi said his powers are "temporary" and limited only to "sovereignty-related issues."

Meanwhile, what's also at stake is financial assistance from foreign countries.  Nuland said that how Morsi deals with the controversy could affect a potential $1 billion debt relief package from Washington and a prospective $4.8 billion loan from the International Monetary Fund.

Copyright 2012 ABC News Radio

ABC News Radio