November 21st, 2011
07:09 PM ET
WASHINGTON (CNN) - President Barack Obama and congressional leaders traded blame Monday for the failure of the congressional "super committee" to forge a deficit reduction deal, but they also called for Congress to work out an agreement before painful automatic budget cuts take place in 2013.
Earlier, the co-chairs of the bipartisan special joint committee said in a statement that "after months of hard work and intense deliberations, we have come to the conclusion today that it will not be possible to make any bipartisan agreement available to the public before the committee's deadline."
Markets dropped as news spread of the panel's expected failure. The Dow Jones Industrial Average fell 248 points Monday, with a minor recovery after being down more than 300 points earlier in the afternoon.
Initial reaction had Democrats and Republicans blaming each other for the inability of the bipartisan committee to negotiate at least $1.2 trillion in deficit reduction measures.
Obama said Republicans in Congress rejected what he called a balanced approach to deficit reduction that included tax increases on the wealthy.
"Despite the broad agreement that exists for such an approach, there are still to many Republicans in Congress that have refused to listen to the voices of reason and compromise that are coming from outside of Washington," Obama told reporters after the super committee announced its failure.
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