Before Obama met Republicans, he huddled with top Senate Democrats.
Asked whether he would negotiate with Republicans to open the government, Senate Majority leader Harry Reid replied “not going to happen” and indicated Obama shared his view.
Earlier, Treasury Secretary Jacob Lew warned that a US default would cause economic chaos.
“If Congress fails to meet its responsibility, it could be deeply damaging to the financial markets, the ongoing economic recovery, and the jobs and savings of millions of Americans,” Lew told the Senate Finance Committee.
Other countries were closely watching the unfolding crisis, fearful of reverberations in their economies.
Gang Yi, deputy governor of China’s Central Bank warned that Washington should have the “wisdom” to overcome the gridlock as soon as possible.
“The market doesn’t like uncertainty and we watch that drama very closely,” he said, speaking in a CNN-hosted panel discussion on the sidelines of the IMF/World Bank annual meetings in Washington.
China is the largest foreign holder of US government debt.
IMF chief Christine Lagarde said a six to eight week temporary debt limit extension would be welcome but “much longer would be a lot better” for the world economy.
Haruhiko Kuroda, governor of the Bank of Japan, said in New York meanwhile that he did not expect a US debt default.
Obama has said he is willing to talk to Republicans on a long-term budget deal and other fiscal issues, but only when government is reopened and the debt ceiling is lifted.
Republican lawmakers said reaction in their caucus to House Speaker John Boehner’s plan was mixed.
“What the speaker is trying to do is just to get this man to sit down and talk to us,” Congressman Lou Barletta told AFP, referring to Obama.
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