US President Joe Biden said he still believes the US will be able to avoid a default, Bloomberg reports, citing a statement by the US president in Hiroshima, Japan.

"I still think we can avoid the default and do something decent," Biden said. The US president also believes that even the tension in the national debt negotiations will not lead to a default, and Republicans and Democrats will be able to reach an agreement.

The Treasury Department warns Congress in letters that as early as June 1, the United States will likely not be able to fully meet its obligations if lawmakers do not authorize a debt ceiling hike by then.