Obama Directs Lawmakers to Work Out Stopgap Fiscal Deal
Obama's appearance before reporters late Friday came amid sharply increased pessimism that a deal can be achieved, and after most members of
On Thursday, The Republican Speaker of the
Player cannot play this media
But he failed to gain enough Republican support for his proposal to raise tax rates on annual incomes above
The president said he had just spoken with Boehner by telephone, and also met with Senate Democratic Majority Leader
"In the next few days, I have asked leaders of
Saying "nobody gets 100 percent of what they want," Obama said once interim legislation is achieved and passed by the
"The challenge that we have got right now is that the American people are a lot more sensible, and a lot more thoughtful, and much more willing to compromise and give and sacrifice and act responsibly than their elected representatives are," said the president.
What is the U.S. Fiscal Cliff?
An agreement intended to force politicians to compromise and make deals.
Without a deal by
Tax hikes also would go into effect.
The combination would reduce economic activity, and could boost unemployment and push the nation back into recession.
Earlier, Boehner put the responsibility for averting the fiscal cliff back to
"So, unless the president and
Reid urged Boehner to allow a House vote on
"To blame us for that travesty that took place over there,
Analysts warn of severe impacts on the U.S. economy and on global confidence in
"It does not do a country, especially a big, powerful country like the U.S., any good to look clownish in the eyes of the world, and we are looking clownish," said Blinder.
"If our economy goes into a recession, especially a serious recession, a deep recession, that is going to hit imports from the rest of the world and that is what they care about, and of course to the extent that it messes up financial markets, that has a contagion effect," he said.