Obama, meanwhile, sent Wall Street a blunt warning that it should be very worried about a political crisis that has paralyzed the federal government and could yet trigger a US debt default.
The president met for more than an hour with Republican House Speaker John Boehner, Senate minority leader Mitch McConnell, Senate Democratic leader Harry Reid and House Democratic boss Nancy Pelosi.
But there was no sign that the talks made headway in ending a dispute that has sent hundreds of thousands of federal workers home, shuttered museums and national parks and threatens to dampen already sluggish economic growth.
"The president reiterated one more time that he will not negotiate," Boehner said, emerging into a warm Washington night after the West Wing talks.
Obama said earlier in an interview with CNBC that he would not negotiate on budget matters until Republicans had passed a short term bill to fund the government and acted to raise the $16.7 trillion US debt ceiling - a move that must happen within weeks or Washington could default on its obligations for the first time.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
Democrats have repeatedly blocked Republican House funding bills that seek to dismantle or delay Obama's signature health care reform bill.
Reid emerged from the talks complaining at Boehner's attitude, and vowing never to allow Republicans to overturn the health care law. "We are locked in tight on Obamacare," Reid said.
Obama earlier said he was "exasperated" by the budget impasse in Congress, in an interview apparently designed to pressure Republicans by targeting the financial community. Obama was asked whether Washington was simply gripped by just the latest in a series of political and fiscal crises which reliably get solved at the last minute.
"This time's different. I think they (investors) should be concerned," Obama said.
"When you have a situation in which a faction is willing potentially to default on US government obligations, then we are in trouble."
Some signs of incremental movement did emerge after the meeting, with Democrats pledging to appoint negotiators to thrash out a long-term budget - provided that the Republicans agree to an immediate six-week federal spending measure with no anti-Obamacare provisions.
