Republican senator John McCain told BBC's Newsnight that the arrest of Mohamed Morsi had been a "coup", and US aid should be withdrawn as a result.
He said: "The law is very clear that if there is a coup that aid is cut off and we decided not to do that.
"It's a great tragedy and the United States is basically an observer."
Although President Obama has cancelled as planned joint military exercise in Egypt, he has given no indication that the US will cut its £830 million ($1.3 billion) in aid to Egypt.
Rasha Abdel Wahab gives her take on what life is like in Egypt as supporters of the ousted president clash with security forces.
The military crackdown of Muslim Brotherhood supporters in Cairo has thrown Egypt into deadly disarray with no sign of a political solution.
The Interior Minister's claim that minimum force was used in the Cairo crackdown is ridiculous. The tactic was more akin to scorched earth.