Fed Chief Bleak on Economic Outlook
By STEVEN R. WEISMAN
NYT
WASHINGTON — A sense of economic gloom gripped Washington on Tuesday as President Bush urged Americans not to lose faith, the Federal Reserve chairman offered a mostly bleak assessment of the difficulties ahead for the economy, and the administration’s latest effort to help the housing sector faced tough questioning in Congress.
Despite widespread concern about losses suffered by Fannie Mae and Freddie Mac, the two giant housing finance companies, the Bush administration’s call for quick passage of legislation to authorize the use of government funds to save them ran into heavy fire, especially among some Republicans concerned about taxpayer liability.
The opposition threatened to slow down the rescue plan, especially if lawmakers insist on making major changes to the package, which would allow the Bush administration to use the United States Treasury to help Fannie and Freddie by lending them money and buying their stock.
The latest trouble in the financial markets, rising energy prices and spreading joblessness were also sowing new discord among lawmakers, with Democrats calling for, and Republicans resisting, a new round of spending programs and tax cuts to stimulate the economy.
A day after reports of losses by regional banks, causing some depositors to pull their money out, Mr. Bush held an unscheduled news conference at which he felt compelled to remind Americans that their deposits were insured up to $100,000.
(Continued here.)
NYT
WASHINGTON — A sense of economic gloom gripped Washington on Tuesday as President Bush urged Americans not to lose faith, the Federal Reserve chairman offered a mostly bleak assessment of the difficulties ahead for the economy, and the administration’s latest effort to help the housing sector faced tough questioning in Congress.
Despite widespread concern about losses suffered by Fannie Mae and Freddie Mac, the two giant housing finance companies, the Bush administration’s call for quick passage of legislation to authorize the use of government funds to save them ran into heavy fire, especially among some Republicans concerned about taxpayer liability.
The opposition threatened to slow down the rescue plan, especially if lawmakers insist on making major changes to the package, which would allow the Bush administration to use the United States Treasury to help Fannie and Freddie by lending them money and buying their stock.
The latest trouble in the financial markets, rising energy prices and spreading joblessness were also sowing new discord among lawmakers, with Democrats calling for, and Republicans resisting, a new round of spending programs and tax cuts to stimulate the economy.
A day after reports of losses by regional banks, causing some depositors to pull their money out, Mr. Bush held an unscheduled news conference at which he felt compelled to remind Americans that their deposits were insured up to $100,000.
(Continued here.)
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