"I'm optimistic there will be no short-term arrangement whatsoever," Reid said. "I'm also confident that reasonable people from both parties should be able to reach an agreement. I believe we should give them time to do so."
But the price for winning a long-term deal may be the exclusion of higher taxes from the process of lowering deficits to meet the $2.4 trillion, 10-year target established by both parties.
Negotiators told National Journal that progress was made on the toughest remaining issue -- a so-called trigger to ensure spending cuts of up to $2.4 trillion would, in fact, be instituted by a special committee established by the the debt-ceiling bills in the House and Senate.
Reid said it was necessary to delay the scheduled early-morning vote to give negotiators more time. Congressional sources said there were slender hopes that a deal could be struck before Asian stock markets open starting at 5 p.m.
Following the movement of the vote to later Sunday, Reid adjourned the Senate.
Reid's surprise appearance gave a bright glow to a day defined by clamp-jawed partisanship and pitched parliamentary battles on the House and Senate floor. There were even accusations of bad faith, misleading press conferences and seemingly false hopes of progress. Reid's announcement sliced through the day-long tension and suggested a path forward -- probably not without a few more bumps -- was now visible to the legislative titans who had been at each other's throats for most of the past 48 hours.
Earlier on Saturday, Reid summoned senators to the floor, where he excoriated Senate Minority Leader Mitch McConnell, R-Ky., and House Speaker John Boehner, R-Ohio, for offering what Reid said was an overly rosy picture of the state of negotiations with the White House. Using blunt language, he accused Republicans of refusing to compromise the face of an Aug. 2 default.
Fresh from a a 90-minute White House meeting with President Obama, Vice President Joe Biden and House Minority Leader Nancy Pelosi, Reid described the situation this way: "The Speaker and Republican Leader should know that merely saying you have an agreement in front of television cameras doesn't make it so."
That was a reference to a press conference, held after a mid-day House vote, in which Boehner and McConnell confidently predicted the nation would avoid default, that negotiations had resumed and that differences would be resolved in short order.
"We are now fully engaged, the speaker and I, with the one person in America out of 307 million people can sign a bill into law," McConnell had said.
From the Senate floor with McConnell mere feet away, Reid alleged that his GOP counterpart was deliberately trying to create the impression of progress when, in reality, very little existed. "While the Republican Leader is holding meaningless press conferences, his members are reaching out to me and other members," Reid said. "They're coming forward with thoughtful ideas to try to move the process forward."