Congressional leaders emerged Friday from the White House saying their initial meeting on the “fiscal cliff” with President Obama had been a “constructive” first step.
The lawmakers offered no details on their discussions to avert major tax hikes and spending cuts that could cripple the economy in January, but Republican leaders signaled a flexibility on higher taxes while Democrats said they could agree to spending cuts.
In a signal to financial markets that have fallen precipitously since Obama’s election last week, Speaker John Boehner (R-Ohio), House Minority Leader Nancy Pelosi (D-Calif.), Senate Majority Leader Harry Reid (D-Nev.) and Senate Minority Leader Mitch McConnell (R-Ky.) expressed confidence they would reach a deal.
The four all also appeared outside the White House after the meeting as a group to telegraph their seriousness and unity to the markets and the public.
“We all know something has to be done … we feel very comfortable with each other and this isn't something we're going to wait until the last day of December to get it done,” Reid (D-Nev.) said. “We have a plan. We're going to move forward on it.”
Boehner said the parties had developed the "cornerstones of being able to work something out."
"It is going to be incumbent for my colleagues to show the American people that we're serious about cutting spending and solving our fiscal dilemma," Boehner said. "I believe that we can do this and avert the fiscal cliff that right in front of us today."
As the leaders spoke, major stock indexes jumped — a sign investors were encouraged by what they were hearing.
Reid said leaders and aides would work throughout the Thanksgiving recess and meet again with the president when lawmakers return from their break.
Congress leaves for the recess on Friday, and is scheduled to return the week of Nov. 26.
For more on Obama's fiscal meeting with congressional leaders, click here.
