He wants the country's 14.3-trillion-dollar debt ceiling to be raised but Republicans are pushing for deeper spending cuts and oppose any tax hikes.
The US government will run out of money by August 2nd if no agreement is struck. Obama says he'll veto any short-term deal that will require to the cap to be increased next year.
Ratings agencies Moody's and Standard & Poor's say they may review the United States' triple A credit rating if there is no deal and bills go unpaid.
Federal Reserve Chairman Ben Bernanke warned yesterday that a US debt default provoke a major economic crisis.
Investors fear it would hamper any already fragile US economy, driving up interest rates and increasing the risk of a second recession.
SOURCE: Euronews
