President Joe Biden and House Speaker Kevin McCarthy will meet on Monday to discuss the debt ceiling, following a “productive” phone call as the President headed back to Washington following the G7 meet, the two sides reportedly said on Sunday.

What Happened: Biden had spoken with McCarthy on Sunday about raising the U.S. debt limit. Before leaving Japan, the President said in a briefing that his administration is willing to cut spending as well as raise revenue.

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“Much of what they’ve already proposed is simply, quite frankly, unacceptable,” Biden told a news conference in Hiroshima, according to a Reuters report. “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.”

McCarthy's Take: The House Speaker, speaking to reporters at the U.S. Capitol after the phone call, said there were positive discussions on the resolution and that staff-level talks were set to resume later on Sunday, reported Reuters.

However, he also raised a question about America's debt on Twitter. "I literally asked the president: “What is the number? How much debt must America have before you say, ‘let’s stop borrowing from China?" McCarthy said in his tweet.

I literally asked the president: "What is the number? How much debt must America have before you say, 'let's stop borrowing from China?'" pic.twitter.com/nAd1wMtDOw
— Kevin McCarthy (@SpeakerMcCarthy) May 21, 2023

After Sunday’s call, McCarthy said while there was no final deal yet, there was an understanding to get negotiators on both sides back together before the two leaders met: “There’s no agreement. We’re still apart.”

Financial markets are beginning to get jittery as the inconclusive talks drag closer to the X-date in early June when the Treasury Department is expected to run out of cash. It is noteworthy that on Friday, the U.S. was forced to pay record-high interest rates in a recent debt offer, the report added.

The iShares 1-3 Year Treasury Bond ETF (NASDAQ:SHY) closed 0.07% lower on Friday while the Vanguard Short-Term Treasury Index Fund ETF (NASDAQ:VGSH) closed 0.05% lower, according to Benzinga Pro.

Debt Ceiling Crisis: Biden, McCarthy Set To Meet On Monday