'Beginning of a dance' on debt?
On the partial government shutdown, Daley said: "Washington does nothing without a deadline."
Without a settlement, Treasury Secretary Jack Lew has said the first-ever U.S.default on making its debt payments could occur as soon as next Thursday. President Barack Obama and House Republicans will meet at the White House on Thursday in an attempt to break the standoff over the debt ceiling.
(Read more: Why stocks seem to be signaling a debt deal ...)
"All of this is moving and part of a negotiation. It's a beginning of a dance and at some point they have to get it done," said Daley, who also served as Commerce Secretary under Bill Clinton.
With the shutdown in its 10th day, Daley said: "We saw with the shutdown under President Clinton. The longer the shutdown goes on—the first week, 10 days people kind of deal with it—but it begins to build and people begin to get really ticked off."
He said the stock market is showing concern, and internationally "people are laughing at us. And after they stop laughing, they [also] get a little nervous."
—By CNBC's Matthew J. Belvedere. Follow him on Twitter