US Secretary of State Hillary Clinton personally praised the leading role played by Egyptian President Mohammed Morsi in brokering a ceasefire between Israel and Hamas.
A day after his diplomatic triumph Morsi issued a decree, which will hand more yet more powers to the presidency.
In a televised address Morsi’s spokesperson said the president will rule by decree, which cannot be challenged, until a new parliament is installed.
He also granted more time for the assembly working on a new constitution to finish its work.
In another move Morsi sacked Egypt’s chief prosecutor in order to appease those demanding the re-trail of officials allegedly involved in violence against protesters during the Arab Spring.
Prosecutor Abdel Maguid Mohammed acquitted a number of senior state officials, sparking fury.
Morsi tried to remove him in October, but failed after judges protested.
The decree opens the way for a raft of re-trials including that of former President Hosni Mubarak.