Federal Reserve Chairman Ben Bernanke weighed in as well. He said, "Clearly, the fiscal cliff is having effects on the economy," the uncertainty affecting consumer and business confidence and leading businesses to cut back on investment.
There is increasing concern about a Dec. 31 deadline to stop the expiration of Bush-era tax cuts and the start of across-the-board spending cuts that are the result of Washington's failure to complete a deficit-reduction deal last year. Even if an agreement can be reached, the halting pace of negotiations is jeopardizing chances that it could be written into proper legislative form and passed through both House and Senate before the new Congress convenes on Jan. 3.
Both sides accuse the other of slow-walking the talks. Democrats say Boehner is unwilling to crack on the key issue of raising tax rates on family income over $250,000 because he's afraid of a revolt on his right flank and from younger, ambitious members of his leadership team.
"I do have an increasing concern that the speaker ... is trying to string this out until January 3rd because that's when he would be re-elected as speaker," Rep. Chris Van Hollen of Maryland, ranking Democrat on the House Budget Committee, told The Associated Press. "And I think he's nervous that if he can't get a majority of his House Republican members to support a reasonable agreement that that could put his speakership election in jeopardy. And so that might cause him to try and string these talks."
Many conservatives say they would oppose a deficit-cutting package negotiated by Boehner that included higher tax rates.
"I'll say no, because the focus has got to be on economic growth," said Rep. Jim Jordan, R-Ohio. "The simple fact is raising taxes is not going to grow our economy."