U.S. President Barack Obama and congressional leaders were due to meet on Friday (December 28) to make a last-ditch attempt to steer the American economy away from the "fiscal cliff" that could prompt a sharp spike in the tax collector's bill, a jump in the cost of consumer goods, and a reduction in the paychecks of most workers.

Obama was due to confer with House Speaker John Boehner and Senate Minority Leader Mitch McConnell on the Republican side, and House Minority Leader Nancy Pelosi and Senate Majority Leader Harry Reid on the Senate side.

Both sides need to compromise in order to formulate a deal that can persuade their opponents to budge from long-standing political positions. But both sides, and in particular the Republicans, face a revolt within their own party if too much ground is given. Last week, Boehner withdrew his 'Plan B' compromise offer from consideration in the House chamber when it became clear he could not muster support from the most ardently conservative backbenchers.

-Reuters