The two sides have been negotiating a deal for weeks to increase the federal government’s borrowing limit, as Republicans also push for deep spending cuts.
Without a deal, the United States could face a default with catastrophic repercussions that could lead to a recession and job losses.
Biden told reporters that a deal is “very close and I’m optimistic.”
Republican Representative Patrick McHenry said he agreed with Biden’s comments, but warned negotiations were far from over.
The pair made their comments separately shortly after US Treasury Secretary Janet Yellen said the government would not be able to find the money to pay its bills by June 5. Yellen previously said that deadline could be June 1.
Negotiators are discussing a deal that would increase the two-year limit, but remain at odds over whether to tighten labor requirements for some poverty programs.
CNN reported that Republican House Speaker Kevin McCarthy left the Capitol on Friday after a conference call in which he told one of his top Republican aides that no deal had been reached.
Any deal must be approved by the Republican-controlled House of Representatives and the Democratic-led Senate before Biden signs it, a process that could take more than a week.
A US official said negotiators had reached an agreement in principle that would limit spending on several government programs next year.
According to unconfirmed US media, the formula of the agreement under discussion provides for the extension of the government’s borrowing power for a period of two years, which means that the current crisis will not reoccur before the presidential elections of 2024. .
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