Geithner: US could fall off fiscal cliff

US Treasury Secretary Timothy Geithner has sounded a warning over the very real possibility of the US government failing to reach a deal on the fiscal cliff.

According to the Telegraph, Geithner refused to rule out a stalemate over the ongoing fiscal cliff issue that has prompted rising market uncertainty over the past year. The 'fiscal cliff' refers to the $600bn of automatic spending cuts and tax rises which are set to expire at the end of the year, threatening to plunge the world's largest economy back into recession. Both the White House and the Republicans have strongly opposed views on the issue and appear to be hardening their resolve in recent weeks since the re-election of President Barrack Obama. Although the Republicans have ...