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US President Joe Biden is set to meet House Speaker Kevin McCarthy on Monday ( May 22) regarding debt ceiling talks after they spoke on the phone while the former was on his way home after attending the G7 summit in Hiroshima, Japan. 

Speaking to reporters after the call, McCarthy sounded 'upbeat' and said he was more hopeful about reaching a decision. 

"Our teams are talking today and we're setting (sic) to have a meeting tomorrow. That's better than it was earlier. So, yes."

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“I think we can solve some of these problems if he understands what we’re looking at.” The speaker added, “But I’ve been very clear to him from the very beginning. We have to spend less money than we spent last year.”

White House officials also confirmed the meeting but offered no specific time or place for it, according to a Reuters report. 

With the deadline to raise the debt ceiling (June 1) precariously close, the talks between the Democrats and the Republicans had seemingly come to an impasse. The frustration was palpable as Biden, prior to leaving Japan, termed the demands of GOP lawmakers as 'unacceptable'. 

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ALSO READ | US debt ceiling: Biden to ring McCarthy from Air Force One to restart negotiations

"Much of what they've already proposed is simply, quite frankly, unacceptable. It's time for Republicans to accept that there is no bipartisan deal to be made solely, solely on their partisan terms. They have to move as well," Biden told a news conference in Hiroshima

The Republicans have rejected the Biden administration's proposal to raise the debt ceiling, which otherwise used to be a routine affair. They have been demanding that the White House announce budget cuts if it wants support for the measure. 

Meanwhile, Democrat lawmakers such as Tina Smith, Elizabeth Warren, Ed Markey and Bernie Sanders have advised Biden to use his authority under the 14th Amendment of the Constitution to continue paying the US government’s bills, even if the ceiling is not raised. 

WATCH | What is the US debt ceiling & what happens if it isn’t raised?

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What is the debt limit?

A debt limit is the amount of money that the US government can borrow to meet its financial obligations such as social security, military salaries and Medicare benefits payments. 

Congress earlier this year extended the statutory debt limit to $31.4 trillion. However, the weak economic fundamentals and overflowing expenditures mean that the US will be breaching the limit. Consequently, Congress has been engaged in a fierce tussle to raise the limit.

ALSO READ | EXPLAINED: What's US debt ceiling & why is it such a big deal? 

If congressional lawmakers cannot make a decision quickly, the world's largest economy could risk defaulting on its debt.

(With inputs from agencies)

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