WASHINGTON: Republicans and Democrats in Congress failed to make any significant progress toward a deal on Saturday even as a threatened default by the treasury crept uncomfortably closer and a partial government shutdown neared the end of its second week.

Lawmakers in both parties said they were watching for the reaction to the political uncertainty by the financial markets when they reopen after the weekend.

There are two issues at play: the US government has been partially shut since October 1 because of Congress’ failure to pass a normally routine temporary spending bill. Separately, Obama wants Congress to extend the government’s borrowing authority _ another matter that usually had been routine.

The focus of efforts to end the government shutdown and prevent a US default shifted to the Senate on Saturday, where Senate leaders were in bipartisan talks aimed at resolving the twin stalemates.

“We haven’t done anything yet” by way of compromise, Senate majority leader Harry Reid said, although he and other Democrats said repeatedly there was reason for optimism.

Across the Capitol, a member of the hardcore conservative tea party caucus, Republican Rep. John Fleming, said there was “definitely a chance that we’re going to go past the deadline” of Thursday that treasury secretary Jacob Lew has set for Congress to raise the $16.7 trillion debt limit.

Amid meetings in Washington of world finance officials, the International Monetary Fund’s policy committee said the US needs to take “urgent action” to address the impasse.

World Bank president Jim Yong Kim stressed the urgency for Washington policymakers to reach agreement on raising the debt ceiling before the Thursday deadline set by Lew, saying the economic fallout of failing to act could include increased interest rates, slower global economic growth and falling business confidence. Such an outcome, he said, would have a “disastrous impact” on poor nations.

President Barack Obama met with Senate Democratic leaders at the White House after accusing Republicans of practicing the politics of extortion. “Manufacturing crises to extract massive concessions isn’t how our democracy works, and we have to stop it,” Obama said in his weekly radio and Internet address.

Ironically, though, House Republicans who triggered the shutdown with tea party-driven demands to eradicate Obama’s health law conceded that they had temporarily been reduced to virtual bystander status.