U.S. President Barack Obama is expected to make a statement on the U.S. economy Friday, as a January 1 “fiscal cliff” looms that would institute automatic deep spending cuts and tax hikes.

The president is expected to urge members of Congress to arrive at a budget plan before the deadline. Experts fear the cuts could send the economy back into recession.

President Obama, who won reelection this week, has supported tax increases for Americans making more than $250,000 a year. Many Republicans fiercely oppose tax increases for anyone. But Republican Speaker of the House John Boehner said Wednesday he is open to some form of new government revenues, as long as they include changes to programs such as Social Security and Medicare.

Democratic Senate Majority Leader Harry Reid says no one will be “messing with Social Security” as part of any compromise.

President Obama defeated Republican Mitt Romney Tuesday to win a second four-year term.