WASHINGTON (AP) - President Barack Obama has told congressional leaders that the time to act on averting the fiscal cliff is now.

Obama met with House and Senate leaders for an hour earlier this afternoon at the White House. Later at a press briefing, he called the meeting "good and constructive" and said he's modestly optimistic that an agreement can be reached.

Obama warned that the patience of Americans has already worn thin and that Washington needs to act. He also warned that the U.S. and global economies could be negatively impacted.

He's said Senate Majority Leader Harry Reid and GOP Senate leader Mitch McConnell are attempting to work out an agreement.

Obama also wants a vote on his proposal to prevent tax hikes on the middle-class and extend unemployment benefits to about 2 million Americans who are out of work.

Copyright © 2012 Associated Press

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WASHINGTON (AP) - The White House says President Barack Obama plans to make a statement following a meeting with congressional leaders on the fiscal cliff.

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By JIM KUHNHENN
WASHINGTON (AP) - A person familiar with the details says President Barack Obama is not making a new `fiscal cliff' offer at his high-stakes meeting with congressional leaders at the White House.

Obama instead is spelling out again a plan he says can pass the House and Senate, said the source, who spoke on condition of anonymity because he was unauthorized to speak publicly about the private meeting.

Obama wants a bill to halt looming tax increases on all families making $250,000 a year or less and would extend unemployment insurance to many people about to lose it. His proposal would also cover other issues as the Jan. 1 deadline nears.

If he does not get a counter proposal that can pass both chambers, Obama will press for a straight up-or-down vote on his idea, the source said.

Copyright © 2012 Associated Press

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Stocks drop as hope for a budget deal slips away

NEW YORK (AP) - Stocks are dropping again on Wall Street as investors lose hope that Washington will meet a self-imposed deadline for reaching a budget deal by year-end.

The five-day losing streak for the Dow Jones industrial average was the longest since July.

The Dow lost 158 points to close at 12,938 Friday.

The Standard & Poor 500 index fell 15 points to 1,402 and the Nasdaq dropped 25 points to 2,960.

The market was down all day. The losses accelerated in the final 20 minutes of trading as reports circulated that President Barack Obama would not make a new budget proposal in a meeting with congressional leaders.

Two stocks fell for every one that rose on the New York Stock Exchange. Volume was lower than the recent average at 2.4 billion shares.

Copyright © 2012 Associated Press

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WASHINGTON (AP) - When congressional leaders gather at the White House this afternoon, they'll be hearing a limited proposal from President Barack Obama aimed at avoiding the tax increases and deep spending cuts that are slated to take effect next week.

Lawmakers and White House officials are holding out a slim hope for a deal, but it's not clear whether congressional passage of legislation that both sides can accept is even possible.

Today's meeting -- the first since mid-November -- is expected to center on which income thresholds would face higher tax rates. There will likely be talk about extending unemployment insurance, and preventing a cut in Medicare payments to doctors.

Despite early talk of a grand bargain that would reduce deficits by more than $2 trillion, the expectations now are far less ambitious.

Republicans and Democrats say any agreement will likely include an extension of middle-class tax cuts with increased rates at upper incomes. The deal would likely put off the scheduled spending cuts.

Copyright © 2012 Associated Press