Time is running out for President Biden and Congress to reach a deal to raise the debt ceiling before the country defaults on its loans. Republicans are insisting on a series of future spending cuts while Democrats refuse.

Despite the ongoing stalemate, Robert Steven Kaplan, former president and CEO of the Federal Reserve Bank of Dallas, said on Greater Boston that a default is very unlikely.

"We're not going to default, neither side wants to default and we aren't going to default," Kaplan said.

Defaulting on an interest payment would undermine the United States' ability get financing, and could therefore be costly in the future. Kaplan said a deal might come down to the last minute, with some public services could shut down temporarily and employees could be furloughed.

Kaplan said raising the debt ceiling is a "game of chicken," and noted that the country needs more spending discipline to have a healthier economic future.

Watch: Fmr. Dallas Fed CEO calls loan default unlikely, argues Congress should focus on lowering deficit