What might Obama's legacy be after 4 more years?

As jubilant Democratscelebrated the re-election of Barack Obama at his Chicago victory party, talk quickly turned tohow theU.S. president's legacyhinges on hisnext four years in office and how compromise will be crucialin approaching issues ranging from avoiding another recession totaking the lead on climate change.

The struggling U.S.economy was the dominant election issue and chief on most voters' minds, according to exit polls. But Obama, in his victory speech early Wednesday, gavesome indications of where he wants his second termto head beyond the recovery.

Ina lofty address, he appealed for compromise with Republicans,sayinghe was willing to work with them to reduce the federal deficit and the countrys dependence on foreign oil, as well as reform the tax code and fix the immigration system.

The president also made a passing reference to the dangers of climate change, an issue that was barely mentioned in the campaign's earlier months until it roared back into the spotlight in the final dayswith superstorm Sandy's recent devastationof the coastlines of the U.S. northeast states.

"We want our children to live in an America that isn't burdened by debt, that isnt weakened by inequality, that isnt threatened by the destructive power of a warming planet," Obama said.

Speaking ahead of the president in his later-than-expected concession speech, defeated Republican nominee Mitt Romney made his own appeal for co-operation from both sides.

"At a time like this, we can't risk partisan bickering and political posturing," he said. "Our leaders have to reach across the aisle to do the people's work, and we citizens also have to rise to the occasion."

Butseveralvolunteers and supportersattending Obama'svictory bash said they now want the presidenttouse his new mandate to go further, such as tackling climate change head-on or finding a peaceful solution to the impasse with Iran on its nuclear program.

Breakthough on immigration?

With a broadermandate thanexpectedfrom Tuesdays win, Obama also has the chance to shape and leave a legacy not just for himself, but alsofor his party, through the elections connection with new constituencies that seem to be forming.

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One obvious group would be Latinos, who overwhelminglysupported Obama at voting booths.

Polls haveindicateda large majority of theLatino communityfavoursimmigration reform that would give some path toward permanent residency to the more than 12 million undocumented immigrants who already live and work in the United States.

Republicans, perhaps looking at how badlytheyfaredamong Hispanic voters in the presidential race this time around, couldbe willing toworktofind common ground, despite pastbipartisan attempts endingin failure and bitterrecriminations.

AttheObama celebration in Chicago, supporter Angie Vaca said shewantsthe president to make immigration reformhis top priorityto help people "who love this country and live in fear of being pulled away from their dream."

"Were tired of waiting," Vaca, 30, a nurse and U.S.-born Latina, told CBCNews.ca.

Congress still gridlocked?

Despite theconciliatorywords from the two candidates, when the dust settled, Republicans stillretained control of the House of Representatives, andthe Democrats will hold on to the majority in the Senate.

That leaves the structure of the partisan gridlock in Congress that plagued the last two years of Obamas first term essentially intact, meaning he may again find himself limited in what he can accomplish when the new members take office in January.

"I'm not optimistic for a lot of healing coming out of this election," Roger Simon, chief political columnist of Politico, told CBC News on Tuesday before the results came in.

In Simons eyes,the U.S.has entered a deep period of hyper-partisanship that has created a paralysis in Congress that shows no signs of dissipating.

"Congress is a place where hope goes to die," Simon said bluntly.

Fiscal cliff, Iran loom as challenges

Even before Obamas second term technically begins in January, hefaces immediate short-term challenges, including high unemployment, slow growth and the countrys latest "fiscal cliff" of a budget crisis this time, a set of already legislated federal spending cuts totalling $600 billion US with higher taxes caused by the expiration of tax cuts brought in by Obamas predecessor, George W. Bush, coming down the pipe during the month.

If no budget deal is reached by the end of the year, world markets could panic as they did in previous U.S. fiscal showdowns, further threatening the countrys economic recovery and possibly triggering another global economic crisis.

Also looming is the threat of a nuclear-armed Iran and Israel pressing Obama for a so-called"red line," or thresholdthat would determine when both the United Statesand Israel would takemilitary action against Iran's nuclear enrichment sites.