A top debt ceiling negotiator for House Speaker Kevin McCarthy said on Friday that negotiations with the White House were to continue at the weekend after earlier claiming it was time to “press pause” on talks.
The announcement came hours after Mr McCarthy's lead negotiator and President Joe Biden's representatives halted talks, rattling financial markets as the deadline to avoid default ticked closer.
“We'll be back in the room tonight,” Mr McCarthy said in an interview with Fox Business, while the White House did not issue comment to news organisations.
Earlier on Friday, Congressman Garret Graves, who was chosen by Mr McCarthy to lead the talks, emerged from an hour-long session and told reporters that discussions were “not productive” and “just unreasonable”.
President Joe Biden's administration is racing to strike a deal with Republicans led by Mr McCarthy as the nation careens towards a potentially catastrophic debt default if the government fails to increase the borrowing limit to keep paying the nation's bills.
Negotiators met for a third day behind closed doors at the Capitol with hopes of settling on an agreement this weekend before possible House votes next week.
“We've got to get movement from the White House and we don't have any movement yet,” Mr McCarthy told reporters during the pause in talks.
“We can't be spending more money next year. We have to spend less than the year before.”
A White House official said: “There are real differences between the parties on budget issues and talks will be difficult.
“The President’s team is working hard towards a reasonable bipartisan solution that can pass the House and the Senate.”
US stocks closed the week on a soft note after news of the stalled negotiations.
They face a deadline as soon as June 1, when the Treasury Department has said it will run out of cash to pay the government's incurred debt. A default would probably lead to global economic uncertainty.
Republicans want steep spending cuts that Mr Biden has so far refused to accept. Any deal would need the support of both Republicans and Democrats to find approval in the divided Congress and be passed into law.
Senate Republican leader Mitch McConnell tweeted that it was “past time” for the White House to get serious about negotiating a deal to raise the nation's borrowing limit
“Time is of the essence,” Mr McConnell said on Twitter.
Agencies contributed to this report
