Shutdown: Obama Slams Republican 'Extortion'
President Barack Obama has said he is willing to hold budget talks with the Republicans but not under the threat of "economic chaos".
It comes as he and House Speaker John Boehner increase the pressure on each other to make concessions in their deadlock over the partial government shutdown and federal debt limit.
Mr Obama said he would negotiate on budget issues only if Republicans agree to re-open the federal government and raise the debt limit with no conditions.
And he accused his political opponents of 'extortion'.
He said: "I'm not going to do it (negotiate) until the more extreme parts of the Republican Party stop forcing John Boehner to issue threats about our economy.
"We can't make extortion routine as part of our democracy."
Republicans are demanding talks on deficit reduction and Mr Obama's 2010 health care law as the price for increasing federal borrowing and returning civil servants to work.
The US government has been partially shut since October 1 because of Congress' failure to pass a normally routine temporary spending bill.
Mr Obama also wants Congress to extend the government's borrowing authority - a routine matter in previous administrations.
The US leader warned that if it fails to do so by October 17, America will not be able to pay its bills.
Amid the tough talk, though, were indications that both sides might be open to a short-term extension of the $16.7trn (£10.39trn) borrowing limit and a temporary end to the shutdown, giving them more time to resolve their disputes.
Mr Boehner, the top House Republican, said he was not drawing "lines in the sand."
He sidestepped a question about whether he would raise the debt limit and fund government for short periods by saying, "I'm not going to get into a whole lot of speculation."
Hours later, Mr Obama used a White House news conference to say he "absolutely" would negotiate with Republicans on "every item in the budget" if Congress first sent him short-term measures halting the shutdown and the extending the debt limit.
"There's a crack there," Mr Boehner said, although he cautioned against optimism.
"What the president said today was if there's unconditional surrender by Republicans, he'll sit down and talk to us," Mr Boehner said. "That's not the way our government works."
The US stock market fell again on Tuesday, with the Dow Jones industrial average dropping nearly 160 points, or 1.1%.
The International Monetary Fund trimmed its global and US growth forecasts for 2014, warning that failure to renew the debt limit would raise interest rates and potentially push the American economy back into recession.
In the Senate, Democrats introduced a bill on Tuesday to raise the government's borrowing authority by enough to last through 2014.
A Democrat aide said they were hopeful they could get the 60 votes needed to overcome procedural hurdles in the 100-member Senate and pass the debt ceiling bill with no strings attached, even though the measure includes no deficit reduction.
But Republican Senator John McCain, who some Democrats had hoped might support getting the "clean" debt ceiling bill to a vote, declined to back it when asked by reporters.
"The answer to this is negotiations," said Mr McCain.
In the House, Republican leaders unveiled a proposal for a 20-member committee to make recommendations on a debt limit increase and look at ways to rein in the country's deficits, but Democrats rejected the idea.