WASHINGTON, Nov. 29 (Xinhua) -- U.S. President Barack Obama announced Monday a two-year pay freeze for federal employees, in an effort to respond to Republicans political pressure and growing budget concerns.
The freeze applies to all U.S. federal employees--including civilian employees of the Defense Department, and will not impact step increases or bonuses for federal workers.
But Obama warned that to reduce too much budget may drag the economic recovery.
"We can't afford to take any steps that might derail our recovery," Obama said at the White House.
Obama said the freeze will save 2 billion dollars for the remainder of fiscal year 2011, 28 billion dollars over the next five years, and more than 60 billion over the next 10 years.
U.S. federal deficit recorded 1.42 trillion dollars in fiscal year 2009, and 1.29 trillion dollars in 2010.
Obama has already frozen the salaries of top White House officials and top political appointees, But freezing the salaries of all civilian workers is a much bolder step
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