Clinton, in an interview with MSNBC's "Morning Joe" anchors, said in response to a question about President Barack Obama's willingness to work with Republicans, that both sides would be able to reach a budget deal.
"I'll make you a prediction," Clinton said. "We'll have a very interesting post-election lame duck session of Congress. They will avoid the fiscal cliff and they'll do it in a way that will produce a budget agreement, either in this lame duck session, or in the first couple of months of next year."
Clinton also defended Obama on recent foreign policy flare-ups in the Middle East and North Africa after Obama's opponent Mitt Romney criticized Obama for referring to the death of the American ambassador in Libya and the potential for Iran to go nuclear as "bumps in the road."
In Libya, Clinton pointed to civilian protests against the militia groups thought to be responsible for Ambassador Chris Stevens's death.
"They like the fact that we aggressively supported them in their desire to replace the Gadhafi regime and decades of control and repression in a move to a more democratic system," Clinton said.
Both Obama and Romney spoke at the Clinton Global Initiative as world leaders gathered in New York for the United Nations General Assembly.