U.S. President George W. Bush said Thursday that he is optimistic about the U.S. economy provided Congress is not going to raise taxes.
"I'm optimistic about our economy. I would be pessimistic, however, if the Congress has its way and raises taxes," Bush told at a press conference in the White House.
Asked whether there is an increasing risk of recession, Bush said the fundamentals of the U.S. economy remain strong despite some "unsettling times" in the housing market.
"The fundamentals of our nation's economy are strong," he said. "Inflation is down. Job markets are steady and strong. The national unemployment rate is 4.6 percent. Corporate profits appear to be strong. Exports are up."
"There is no question that there is some unsettling times in the housing market and credits associated with the housing market, " Bush said, referring to the ongoing crisis in the subprime market which leads to a credit crunch and threatens the U.S. and global economy.
He warned that the U.S. economy would suffer if the Congress manages to adopt bills designed to raise taxes.
"I think taking money out the hands of investors and consumers and small-business owners would weakened the economy," said Bush, who has long believed that private investors outperform the government in the efficiency of investment.
The president dodged a question about whether the United States was nearing a recession, saying that "you need to talk to an economist."
Some economists suggest the housing slump could lead to a recession even in spite of action earlier this week by the Federal Reserve to cut short-term interest rates by a half-percentage point.
Bush's remarks came amid growing concerns that the subprime meltdown triggered by a slump in the housing market would eventually lead to a recession despite repeated interventions by the Federal Reserve, including a bigger-than-expected one half- percentage point cut in short-term interest rates on Tuesday.
Some economists suggest the housing slump could lead to a recession even in spite of action earlier this week by the Federal Reserve to cut short-term interest rates by a half-percentage point.
Source: Xinhua
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