In a deal approved just before 2am EST on New Year’s day, members of Congress have reached a deal with United States President Barack Obama to delay the imminent spending cuts and avoid much of the $600 billion in tax hikes for the next two months. The plan will be voted upon by the House of Representatives later today. If approved, the agreement will include revenue increases and spending cuts and tax hikes for those earning above $400,000 for an individual or $450,000 per couple. Analysts expect that such a plan would slow the country’s economic recovery without halting it entirely as the fiscal cliff was expected to do. Skeptics are worried that President Obama hasn’t shown sufficient interest in cutting government spending in a way that will have a meaningful impact on the country’s economic situation.
A new poll indicates that a large percentage of Americans have negative sentiments towards the country’s economy and its ability to rectify the situation. 68 percent of Americans view the economy negatively, a number close to the 64 percent of Americans who have a downbeat feeling towards the nation’s government. Such sentiments were reflected at the stores this holiday season, where spending was down as consumers braced themselves for tough times ahead. That being said, the job market remained steady in recent weeks, averaging about 151,000 jobs a month in November 2012, up from 147,000 jobs created in November 2011. The US stock market bounced after Obama addressed the nation, but quickly erased some of its gains. The market will be closed today for the New Year.