Barack Obama is cutting short his Christmas break in Hawaii to return to Washington for last-ditch budget negotiations to try to avert the large tax rises and spending cuts that kick in on January 1.
Talks between the White House and Congress have been stalled since Friday in the wake of a Republican rebellion against its leadership in the House of Representatives last week and a subsequently scaled back offer from Mr Obama.
Mr Obama is due back in Washington this morning, along with members of the Senate. The Republican House leadership has yet to recall its members, meaning any possible deal will go down to the wire.
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