Pentagon facing fiscal shadow despite end of shutdown - Hagel

WASHINGTON (Reuters) - U.S. Defense Secretary Chuck Hagel said on Thursday the Pentagon is still labouring under the shadow of budget uncertainty despite a deal by Congress that reopened the federal government and let some 7,000 furloughed defense employees return to their jobs.

Hagel urged lawmakers working to craft a government funding bill by mid-January to show the flexibility needed to reach a long-term spending agreement. He warned that further fiscal uncertainty would undermine U.S. national security and erode America's standing in the world.