Obama hails US budget deal

Barack Obama has hailed a deal to avoid a "fiscal cliff" of stark tax hikes and spending cuts. The US House of Representatives backed the bill by 257 votes to 167.

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Republican Senator: Obama 'has won' in fiscal cliff talks

President Barack Obama has been seeking a compromise with Republicans Credit: Reuters

Republican Senator Lindsey Graham said that chances for a small "fiscal cliff" deal in the next 48 hours were "exceedingly good" and that President Barack Obama had won.

"I think people don't want to go over the cliff if we can avoid it," Graham told Fox News today.

"This deal won't affect the debt situation, it will be a political victory for the president and I hope we'll have the courage of our convictions when it comes time to raise the debt ceiling to fight for what we believe as Republicans, but hats off to the president, he won."

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