Obama, congressional leaders fail to reach deal on sequester

On Friday, President Barack Obama admitted that deep federal budget cuts had already arrived with no possible solution on sight. He warned that this outcome would be harmful to the economy but at the same time said about his inability to stop it.

A last attempt to persuade the congressional leaders at a meeting in the White House remained fruitless. Obama was adamant on his position to increased taxes while the Republicans kept their standing with continuous refusal. The impasse condition made the way for $85 billion in this fiscal year’s cuts and total $1.2 trillion over the coming decade.

The reductions to which Obama ordered on Friday are likely to stay in place for the coming future. Speculation was there about a possible adjustment later this month when lawmakers would have to risk a shutdown in case of their failure to reach an agreement on a new deal.

However, Obama assured that he would avoid a shutdown even if he had to turn off the sequester for that.

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