Wall Street urges action on fiscal cliff

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The group warned that if no deal emerges on the fiscal cliff — the combination of expiring tax cuts and automatic spending cuts set to take effect at the beginning of the year — the U.S. could face another downgrade to its credit rating, and its economy could be pushed back into another recession.

The group called on Washington to strike a deal as soon as possible to avert the cliff. But at the same time, they said that avoiding it is not enough — policymakers also need to craft a credible deal that addresses the nation's fiscal challenges. If Washington merely kicks the can down the road on the cliff and does not come up with a way to bring down the nation's debt and deficits, it risks losing its "moral authority as a global leader," the group warned.

However, it steered clear of making any specific recommendations on what such a compromise should look like, as the two parties are entrenched over how to handle tax rates and spending cuts.