AP News, January 17th, 2008
Top House leaders discussed plans for tax rebates, breaks for business and additional food stamp and unemployment insurance benefits as President Bush and Federal Reserve Chairman Ben Bernanke voiced support for steps to avert a recession.
"Putting money into the hands of households and firms that would spend it in the near term" is a priority, Bernanke told a House committee.
Bush scheduled a speech for Friday to lay out his criteria for the program.
Bernanke, testifying before the House Budget Committee, said such a plan should be aimed at quickly getting cash into the hands of people, especially those with low and moderate incomes. Bush wasn't going to spell out any specifics in his remarks, but instead demand that any package be effective and temporary, said White House press secretary Dana Perino.
Perino said that Bush and congressional leaders from both parties consulted via conference call Thursday for about 30 minutes about their plans to work together on growth measures.
In the Capitol, House Speaker Nancy Pelosi has talked of a package totaling $100 billion or more.
The rush to swing behind a stimulus plan underscored the political imperative of responding to a growing concern about the possibility of recession.
Bernanke declined to endorse any particular approach in Capitol Hill appearance, but did say that he preferred one that would act quickly, and not have a long-term adverse impact on the deficit.
"The design and implementation of the fiscal program are critically important," he said.
He spoke as senior aides to House Democrats and Republicans reviewed an emerging plan that included tax rebates for individuals, breaks for businesses and more money to help food stamp recipients and the unemployed. Additional aid to help states complete construction projects was also among the proposals under consideration, according to officials familiar with the discussions. They spoke on condition of anonymity, saying they did not want to pre-empt an eventual announcement.
Additional details were not immediately available.
At the White House, Perino said that Bush wasn't going to spell out any specifics in his remarks, but instead demand that any package be effective, simple and temporary. She also said he planned to describe other criteria and philosophical parameters for such a deal.
Perino said that Bush and congressional leaders from both parties consulted via conference call Thursday for about 30 minutes about their plans to work together on growth measures. The conversation showed both parties to be in agreement that they need to do something, that they need to cooperate and that it needs to happen quickly, she said.
The White House had said earlier Thursday that Bush concluded "some boost is necessary" to address the weakening economy. Previously, the White House had said the president was only considering only a short-term boost. Perino said Bush was convinced by the daily economic briefings he received while away on a Mideast trip, and she said that he won't necessarily wait until his State of the Union address at the end of the month to announce specifics.
White House deputy press secretary Tony Fratto said earlier that he saw "no obstacle" to a speedy agreement with Congress.
The statements by the White House Thursday marked the first time that it has confirmed that Bush supports government intervention to ward off a recession. Bush talked on a telephone conference call with Pelosi, House Republican leader John Boehner and other House leaders.
"There is reason to be hopeful when the president recognizes there is a problem in the country," Pelosi said after the conversation.
Boehner said he was encouraged by the talks thus far.
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AP Special Correspondent David Espo contributed to this story.
