Deadlines loom for Egypt's Morsy

One deadline looms Tuesday for Egyptian President Mohamed Morsy, and another hangs over his head for Wednesday.

Opposition protesters are threatening to march Tuesday evening on Cairo's presidential palace if Morsy does not step down by then.

And Wednesday evening marks the expiration of a 48-hour deadline imposed by the Egypt's military to "meet the demands of the people" or face a restoration of order by the army.

But the army stopped short of saying that it was suggesting a coup.

The ultimatum was meant to push all factions toward a national consensus; the armed forces aren't looking to be part of the political or ruling circles, a spokesman, Col. Ahmed Ali, said Monday in a written statement.

Photos: Protests in Egypt

Is Morsy on the brink?

Military announcement excites protesters

While insisting they want no direct role in national politics, the generals appeared instead to be pressuring Egypt's first freely elected president to restructure his government.

The steps could include reducing the influence of the Muslim Brotherhood in his Cabinet and calling early presidential and parliamentary elections, a source close to highly placed members of Egypt's leadership told CNN.

Leaders meet as thousands demonstrate

Morsy's Facebook page and Twitter account said Tuesday that he and Prime Minister Hisham Qandil had met earlier in the day with Defense Minister Abdel-Fatah El-Sisi and that a statement would be issued.

Demonstrations continued Tuesday in Cairo's Tahrir Square, where thousands of protesters had massed, cheering as Apache helicopters buzzed the crowd.

Canada said Tuesday it was closing its embassy in Cairo until further notice "for security reasons."

On Tuesday, the Obama administration urged Morsy to call early elections and warned the Egyptian military that it risks losing U.S. aid if it carries out a military coup amid the political crisis, senior administration officials told CNN.

But the officials did not say Morsy should step down immediately.

"We are saying to him, 'Figure out a way to go for new elections,' " a senior official said. "That may be the only way that this confrontation can be resolved."

The officials said nothing in the Egyptian Constitution gives Morsy the authority to call for new elections, but said that may be the only way to end the crisis.

Officials have also warned the Egyptian military that a coup would trigger U.S. legislation that calls for cutting off all U.S. aid.

On Monday, Obama encouraged Morsy in a telephone call to ensure that his government represents all Egyptians, "including the many Egyptians demonstrating."

Morsy's government has insisted that its decisions are legitimate, because it was democratically elected.