US Treasury Secretary Janet Yellen has said failure to avoid a US government debt default would undermine Washington's ability to provide international leadership and defend US national security.
Speaking in Japan at a meeting of G7 finance officials, Yellen has long warned a default could cause an "economic and financial catastrophe".
She added that a default "would spark a global downturn" and "would also risk undermining US global economic leadership and raise questions about our ability to defend our national security interests".
President Joe Biden and Republican congressmen made little progress in a meeting earlier this week in Washington that kicked off negotiations on the topic.
Republican aides and White House staff planned to begin budget discussions in its wake, with another meeting set for Friday between Biden and congressional leaders.
Asked by reporters if there were a long-term fix to the recurring debt-ceiling issue, Yellen suggested it would be better for the US legislature to permanently do away with setting a cap on government borrowing that is independent of its own budget decisions.