A deal to raise the U.S. Federal government's $31.4 trillion debt ceiling can be reached by a June 5 deadline, the top congressional Republican Kevin McCarthy said on Saturday.

"I feel closer to a deal now than I did a long time ago because I see progress, but this is not easy in any shape or form," McCarthy said.

Asked whether a deal can be reached by June 5, when the Treasury Department says the government would run short of funds to pay all its bills without congressional action, McCarthy said "yes".