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Economy, Federal Deficit.
Congressional leaders of both parties will meet with the president in an effort to reach a deal to avoid across-the-board tax increases and spending cuts that could push the economy into recession.
Flush with re-election vigor, President Barack Obama on Friday will provide his first public comments on the upcoming negotiations with Congress on how to deal with pending tax hikes and spending cuts that create the so-called fiscal cliff facing the economy at the end of the year.
The federal deficit will hit $1.3 trillion for fiscal 2011, the third consecutive year of record shortfalls and an emerging campaign theme for GOP attacks on President Obama and congressional Democrats. The deficits of the last three years are at levels unseen since World War II and stem from the "long shadow" cast on the economy by the financial crisis and recession, the Congressional Budget Office said Wednesday.
The hard-won, last-minute agreement to raise the debt ceiling and cut the deficit gets low ratings from Americans, who by more than 2-1 predict it will make the nation's fragile economy worse rather than better.
As the nation stood Friday on the edge of a historic default and markets sank amid grim economic news and the legislative chaos, President Obama called on both Democrats and Republicans to abandon their favored debt-ceiling plans and come together to find a last-minute deal.
On a chilly evening in February, a commuter train bound for Worcester, Mass., broke down outside Boston, transforming passengers' usual 80-minute commute into a four-hour nightmare.
The outlines of President Obama’s reelection strategy are becoming more distinct. He’ll bet that the faltering recovery has enough momentum to sell, particularly to college-educated suburban independents. He’ll find a way to cut a deal with Republicans on deficits that doesn’t completely derail the recovery.
President Barack Obama, two years into a presidency that increased spending to prime a weak economy, is turning his attention to the nation's crushing debt and trying to counter a Republican anti-deficit plan with a framework of his own that tackles politically sensitive health care programs while also increasing taxes....
The Pentagon, trying to free up cash in the face of a yawning U.S. deficit, unveiled a series of cost-cutting measures on Wednesday that will shed thousands of jobs and shut down an entire military command.