Obama: Raise debt ceiling or risk global recession

CHICAGO (AP) — Failure by Congress to raise the U.S. debt limit "could plunge the world economy back into recession," President Barack Obama declared today, and he acknowledged that he must compromise on spending with Republicans who control the House to avoid such a crisis.

"I think he's absolutely right that it's not going to happen without some spending cuts," the president told The Associated Press in an interview in his hometown, agreeing with House Speaker John Boehner's assessment.

Obama urged swift action, saying he doesn't want the United States to get close to a deadline that would destabilize financial markets. He said he was confident Congress ultimately would raise the limit.

"We always have. We will do it again," said Obama, who voted against raising the debt limit as a freshman senator from Illinois.