U.S. President George W. Bush embraces calls for an economic stimulus plan to help avert recession, White House spokesman Tony Fratto said Thursday.
"The president does believe that over the short term, to deal with the softening of the economy, that some boost is necessary," Fratto said.
That marked the first White House confirmation that Bush, confronting a deepening economic crises, supports government intervention, according to the Associated Press.
Refusing to disclose what the stimulus would look like, Fratto said that all options are being considered.
Fratto declined to say when the president could announce a package, or whether it would be before or after the State of the Union address later this month.
On Thursday, Federal Reserve Chairman Ben Bernanke also backed calls for a fiscal package to stimulate economy, but stressed that such a plan should be quickly implemented and temporary so that it will not complicate longer-term fiscal challenges.
"Any program should be explicitly temporary, both to avoid unwanted stimulus beyond the near-term horizon and, importantly, to preclude an increase in the federal government's structural budget deficit," he said in testimony to the House Budget Committee.
The Fed chief did not embrace any specific provisions or a specific plan but made clear his support for the general concept of an economic rescue package. It is likely that any such package would include tax rebates.
Due to a severe housing slump and a persistent credit crunch, odds of a recession have been increasing.
To bolster economic growth, the central bank has cut interest rates for consecutive three times by combined one percentage points and injected a huge amount of money into the banking system.
Source:Xinhua
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