Kathmandu: President Joe Biden and top Republican Kevin McCarthy are due to meet at the White House on Monday for talks on lifting the US debt ceiling.
The pair spoke on the phone on Sunday as the president was travelling back from the G7 summit in Japan, BBC reported.
The two sides remain at odds over budget cuts demanded by the Republicans as a condition for raising the ceiling.
The debt ceiling is a spending limit set by Congress which determines how much money the government can borrow.
Failure to raise it beyond the current cap of roughly $31.4tn (£25.2tn) by June could result in the US defaulting on its debt.
That would mean the government could not borrow any more money or pay all of its bills. It would also threaten to wreak havoc on the global economy, affecting prices and mortgage rates in other countries.
The president cancelled foreign visits that were due to follow the three-day summit in Hiroshima, in order to deal with the impasse over the federal debt.
The impasses has rattled financial markets. On Friday, the Dow ended down 0.3%, the S&P 500 dipped 0.1% and the Nasdaq slipped 0.2%.
In exchange for support for raising the debt ceiling, Republicans are demanding budget cuts to the tune of $4.5tn (£3.61tn) which include scuppering several of Mr Biden’s legislative priorities. They are also seeking increased spending on the military and border security.
(News Source: BBC)