The US's major stock benchmarks lost ground when the markets closed yesterday evening (February 26th), after Barack Obama said the Congress can dodge the pressing issue of wide-reaching cuts if it can reach a compromise.
Speaking to the nation's governors, the president acknowledged that the impact of the imminent $85 billion (£56 billion) in cuts may not be felt immediately, but he also added that the uncertainty surrounding the issue is already affecting the economy.
"At some point we've got to do some governing and certainly what we can't do is keep careening from manufactured crisis to manufactured crisis," he stated.
The president is calling on Congress to pass revenue rises and some budget cuts to avoid the reductions, but the Republicans say they will not agree to a deal that includes a tax increase.
At close of play in New York last night, the Dow Jones fell by 1.5 per cent to an index value of 13784.1 points and the Nasdaq lost 1.4 per cent to 3116.2 points.
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