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Obama back for fiscal talks

Obama back for fiscal talks
The US House of Representatives is being recalled on Sunday for a special working session ahead of Monday’s ‘fiscal cliff’.

Barack Obama has also cut short his holiday and has arrived at the White House, while the Senate is also back in session in Washington.

If no deal is reached before Monday, a series of tax rises and spending cuts will automatically come into effect which some analysts believe could push the US back into recession.

Democrat Senate leader Harry Reid has given a gloomy assessment of Congress’ chances of agreeing a deal by Monday and accused his Republican counterpart in the House of Representatives, John Boehner, of delaying a vote on a Senate-backed bill to protect his re-election chances.

US Treasury Secretary Tim Geithner said he will begin using "extraordinary measures" to avoid breaching borrowing limits. In a letter to Congress, Mr Geithner said changes to the Treasury's practices could raise $200bn, giving the department around two months before the limits were breached.

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