The President has never wavered from offering to engage in good faith negotiations with Congress. He has pissed his own Party off numerous times by negotiating for incremental change, rather than standing firm for Democratic Party ideals.
That said, he would be an idiot to feign "negotiation" with the Looney Toons© House Republicans who have been cowed by a small minority of radical extremists within their Party to offer nothing but extortion. He should just stand back and allow these fools to self-destruct.