Obama: 'Deficit is too high and investment too low'

US President Barack Obama acknowledged the new "fiscal cliff" law as one step in the broader effort to strengthen the US economy and increase opportunity.

He said: "The fact is the deficit is still too high and we are still investing too little in the things that we need for the economy to grow as fast as it should."

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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.