Barack Obama
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Barack Obama: 'Budget cuts already having effect'

US President Barack Obama has said uncertainty surrounding deep budget cuts due to take effect on Friday is already having a negative effect on the US economy.

Speaking at a shipyard in the state of Virginia, the president said that, if Congress did not act, the cuts would hurt the nation's ability to respond to military threats and hit the basic services Americans rely on.

Some Republican congressman have criticised Mr Obama, saying he has exaggerated the expected consequences of the measures.

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