Congressional leaders say a deal could come within next few days.
High-level talks were held at the White House Thursday as lawmakers try to reach a deal on raising the nation's $14.3 trillion debt ceiling.
While there was some progress, there is still no agreement.
The president said Republicans and Democrats will work through the weekend.
"Everybody acknowledged there's going to be pain involved politically on all sides, but our biggest obligation is to make sure that we're doing the right thing by the American people," Mr. Obama said after the talks.
Before the meeting House Speaker John Boehner once again said raising taxes is not an option, but for the first time he opened the door to roll backs on some tax credits and closing tax loopholes.
"We believe that comprehensive tax reform both on the corporate side and the personal side would make America more competitive, help create jobs in our country and is something that is under discussion," Boehner said.
There are reports the president may be open to Medicare, Medicaid and Social Security reform, a move that put him in the hot seat with progressive Democrats.
Boehner is working to shore up emerging splits in his party over tax reform and new members who want a balanced budget amendment.
Meanwhile, President Obama says the ongoing talks are just that...until a deal is done.
"I want to emphasize that nothing is agreed to until everything's agreed to, and the parties are still far apart on a wide range of issues," he said.
The president is hoping by working through the weekend Democrats and Republicans can find ways to reach a deal.
He will meet with House and Senate leaders again this Sunday.