Obama arriving at the White House, 27 December 2012
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Time running out for US politicians to reach a fiscal deal

The US appears to be heading over the "fiscal cliff", with prospects dim for a deal to avoid tax rises and spending cuts, the Senate majority leader says.

Speaking on the Senate floor, Democrat Harry Reid said there did not seem to be enough time to craft a deal before Monday night's end-of-year deadline.

The president and Senate are back at work, with the House called back for Sunday - one day before the deadline.

Analysts say heading over the "cliff" could tip the US into recession.

Mike Wooldridge reports.

  • 28 Dec 2012
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