President Obama, saying the government was already "starting to move" on a federal shutdown, came out of another high-stakes evening meeting Thursday with congressional leaders without a budget deal that could keep the government running.

"I'm not prepared yet to express wild optimism, but I think we are further along today than we were yesterday," Obama said in the White House briefing room after the meeting with House Speaker John Boehner and Senate Majority Leader Harry Reid.

Yet with a shutdown possible as early as midnight at the end of Friday, Obama said he is pressing Democrats and Republicans to reach an agreement by Friday morning...