President Barack Obama and top lawmakers have held crisis talks to avert a disastrous US debt default, which could send shockwaves through the fragile global economy.
After a 50-minute summit at the White House, House Speaker John Boehner told fellow Republicans on a conference call that he hoped for a deal with Democrats within 24 hours, a participant said on condition of anonymity.
Such a breakthrough could reassure jittery world markets that cash-strapped Washington will be able to pay its bills after an 2 August deadline.
The speaker said the hard-fought negotiations centred on a two-step process to cut $3-4 trillion in spending over ten years as part of a deal to raise the $14.3 trillion US debt limit, the official added.
The White House had no immediate comment.
Washington hit its debt ceiling on 16 May but has used spending and accounting adjustments, as well as higher-than-expected tax receipts, to pay its bills and continue operating up to a fast-approaching 2 August deadline.
Finance and business leaders have warned failure to raise the US debt ceiling by then would send shockwaves through the world economy, while Mr Obama has predicted a default would trigger economic 'armageddon'.
'Congress should refrain from playing reckless political games with our economy. Instead, it should be responsible and do its job, avoiding default and cutting the deficit,' Obama spokesman Jay Carney said after the talks.
The president told lawmakers he would not accept a short-term extension, according to Mr Carney, who said in a statement that the White House, its Democratic allies and Republican foes would be in touch 'throughout the day'.
Republicans have called for spending cuts over 10 years at least equal to the dollar amount of any debt limit increase while vowing to reject Mr Obama's call for raising taxes on the rich and wealthy corporations.
Democrats have pledged to defend cherished social safety net programmes funded by the government, which the president has targeted for cuts and said the most well-off Americans must shoulder a greater burden.
