As the fiscal cliff deadlock continues in Washington, the Federal Reserve is expected to announce a new bond-buying plan to counteract tax increases if Congress can't reach a deal.

The plan, known as quantitative easing, would further reduce long-term interest rates and encourage companies and individuals to borrow.

Still, Fed Chairman Ben Bernanke warned it's doubtful the central bank could offset the shock should the nation go over the "broad fiscal cliff."

Meanwhile, President Obama still insists on taxing the rich, while House Speaker John Boehner, R-Ohio, insists the president identify his spending cuts.

Now a bipartisan group is suggesting they would cut the defense budget to avoid automatic tax hikes.

Eleven House Republicans and 11 Democrats argued military spending should reflect the nation's transition out of war.