President Joe Biden and Republican leader Kevin McCarthy engaged in a productive phone conversation, marking a notable shift in the stalled talks concerning the US debt ceiling.

McCarthy described the call with Biden, who had just returned from the G7 summit in Japan, as fruitful, and the two agreed to meet on Monday to further discuss the matter.

However, disagreements persist between the two parties regarding Republican demands for budget cuts as a prerequisite for raising the debt ceiling.

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Failing to reach an agreement by June would risk a US default on its debt, leading to financial turmoil and higher interest rates.

Biden expressed his willingness to compromise on spending cuts but emphasized that Republicans must also make concessions.

While significant differences remain, the positive tone of the conversation offers hope for potential breakthroughs in the negotiations.