Obama warns of recession if debt ceiling not raised (AFP)

OTTAWA – Canada welcomed Washington’s last-minute deal on the fiscal cliff on Wednesday, but warned that significant risks remained and urged more action to put the U.S. fiscal situation on a sustainable path. “Canada welcomes the agreement reached between the (U.S. President Barack Obama) and the Congress that protects the U.S. economy in the short term,” Finance Minister Jim Flaherty said in a statement.

LONDON — The United States could lose its top credit rating for the second time if there’s a delay in raising the country’s debt ceiling, Fitch Ratings warned Tuesday.

WASHINGTON – On the brink of a second term, President Barack Obama invoked Martin Luther King Jr.’s commitment to service Saturday as inauguration-goers flocked to the capital city for a distinctly American celebration including an oath-taking as old as the republic, a splashy parade and partying enough to last four years. “I think we’re on the cusp of some really great things,” Vice President Joe Biden predicted for a country still recovering from a deep recession.

The US president was speaking after the House of Representatives passed a Senate-backed bill by 257 votes to 167. It raises taxes for the wealthy and delays spending cuts for two months. There had been intense pressure for the vote to be passed before financial markets reopened on Wednesday. In Tuesday night’s house vote, 172 Democrats and 85 Republicans voted in favour of the bill. A majority of Republicans, 151 in total, voted no, along with 16 Democrats.

AFP - President Barack Obama warned the United States risked plunging back into

AFP - President Barack Obama warned the United States risked plunging back into