President Barack Obama formally ordered broad cuts in US government spending after he and congressional Republicans failed to reach a deal to avert automatic reductions that could dampen economic growth and curb military readiness. As the United States staggered into another fiscal crisis, the White House predicted that the spending cuts triggered by the inability of Obama and lawmakers to forge a broader deficit-reduction agreement would be 'deeply destructive' to the nation's economic and national security. Speaking to journalists in Washington,after his meeting with Republican and Democratic congressional leaders, Prsident Obama said many middle-class families will have their lives disrupted in significant ways. Late on Friday, Obama signed an order that put in effect the across-the-board government spending cuts known as 'sequestration.' Government agencies will now begin to hack a total of 85 billion dollar from their budgets between today and Oct. 1. Half of the cuts will fall on the Pentagon.
News On AIR | March 2, 2013 11:27 AM
Obama orders broad cuts in US govt spending