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Bush Is Open To Stimulus

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The Associated Press

Published: October 21, 2008

WASHINGTON - Momentum is building for a fresh dose of economic stimulants to boost the country out of the doldrums - perhaps by putting more money in Americans' pockets. The White House said Monday that President Bush was open to some sort of action after Federal Reserve Chairman Ben Bernanke warned the slump could drag on without the extra bracing tonic.

On Wall Street, stocks bolted higher, with the Dow Jones industrials rising 413 points. There also were some new signs that credit conditions were thawing a bit.

"I have heard that people's attitudes are beginning to change from a period of intense concerns - I would call it near panic - to being more relaxed," Bush said.

If an agreement can't be worked out, the effort probably would be taken up by the next Congress and the next president. Democrat Barack Obama has strongly advocated more government stimulus, while Republican John McCain is keeping his options open.

As part of that package, Democrats want to resurrect a $61 billion House-passed measure that included about $37 billion in public works spending, $6 billion to extend jobless benefits, $15 billion to help states to pay their Medicaid bills and $3 billion in food stamp assistance for the poor.

"With the economy likely to be weak for several quarters, and with some risk of a protracted slowdown, consideration of a fiscal package by the Congress at this juncture seems appropriate," Bernanke told the House Budget Committee. It marked the first time he endorsed the need for another round of stimulus.

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