The US government has reached a last-minute compromise to limit the worst of the damage from the so-called ‘fiscal cliff' - a package of automatic spending cuts and tax hikes that was due to kick in on January 1.

Bill Isaac, senior managing director of FTI Consulting, said the compromise over the fiscal cliff sent a signal that the government was not ready to impose fiscal discipline. "Unless and until they take steps in this direction, I am convinced the US economy will not enjoy meaningful