Any deal would have to be approved by the Republican-controlled House of Representatives and the Democratic-dominated Senate before Biden can sign it into law, a process that could take more than a week.
“It’s very close (a deal) and I’m optimistic,” Biden told reporters at the White House. “I am hopeful that tonight (Friday) we will know if we will be able to reach an agreement,” she said.
The Democratic president added that he expects a resolution of the crisis “before the 12 clock.”
The two sides have reached a tentative agreement that would limit spending on many government programs next year, according to an official. But social protection programs remain a stumbling block.
A government official briefed on the talks said they could easily drag on into the weekend.
If Congress fails to raise the debt ceiling next week, it could trigger a default that would rock financial markets and plunge the United States into a deep recession.
“We know it’s crunch time,” McCarthy told reporters on Capitol Hill on Friday. “We’re not just trying to get a deal, we’re trying to get something that’s worthy of the American people, that’s going to change the trajectory.”
Wall Street’s main indexes rose as investors waited for progress in negotiations.
Even if they manage to reach an agreement, the leaders of both parties will have to work hard to muster enough votes for passage in Congress.
The Republican right wing has insisted that any deal must include sharp spending cuts, while Democrats are resisting new work requirements for benefit programs.
