US debt ceiling set to rise to $A47 trillion

US President Joe Biden and Republican congressional leaders say they are hopeful that a deal to raise the US debt ceiling is within reach.

US President Joe Biden and top congressional Republican Kevin McCarthy edged closer to a deal to avoid a looming US debt default as the threat of an economic nightmare prompted Biden to cut short an Asia trip.

"There is still work to do," Biden later at a White House event honouring Jewish Americans. "We're on a path forward to make sure America does not default on its debt."

Republicans have refused to vote to lift the debt ceiling past its $US31.3 trillion ($A47 trillion) limit unless Biden and his Democrats agree to spending cuts in the federal budget.

The US government may default on some debts as early as June 1 unless Congress votes to lift the debt ceiling, and economists fear the country will slide into a recession.

Biden is "optimistic that there is a path to a responsible, bipartisan budget agreement if both sides negotiate in good faith and recognise that neither side will get everything it wants," the White House said.

The uncertainty around the debt ceiling prompted Biden to skip stops in Papua New Guinea and Australia after he attends a Group of Seven summit of the world's richest countries in Hiroshima, Japan.