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President Trump told a group of reporters in the Oval Office that he would not use the debt ceiling as a negotiating tool, even referring to the government spending limit as "sacred."

Earlier Friday, it was reported that House Speaker Nancy Pelosi had rejected the Trump administration's latest debt ceiling proposal, which included a request for the Democrats to select $150 billion in spending cuts from a list of $574 billion in saving opportunities. 

On Thursday, Treasury Secretary Steve Mnuchin told CNBC that he doesn't think that the market should be concerned about the negotiations because "we won't do anything that puts the U.S. government at risk in terms of our issue of defaulting."

The debt ceiling is the statutory limit on the amount of money the U.S. government is authorized to borrow to meet its legal obligations. In modern history, Barak Obama raised the debt ceiling three times during his eight-year term, while George W. Bush increased it seven times and Ronald Reagan raising it 17 times during their terms. 

The threat of not raising the debt ceiling had been used as a political football in recent years as a way for Congress to negotiate with the White House. Congress has the final authority to vote to raise the U.S. debt limit. 

Earlier in the day, Trump published a tweet asserting that the Federal Reserve was hurting U.S. competitiveness by keeping interest rates and making it more expensive to borrow.