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Gov't Will Do 'What It Takes' for Economy: Paulson

Posted Mar 16, 08 4:55 PM CDT in Politics 

(Newser) – Treasury Secretary Henry Paulson vowed today to do “what it takes” to uphold a weak economy, the AP reports. “No one is debating the fact that this economy has slowed way down,” he said on the Sunday show circuit. "We feel it, we know it, the American people know it." He also backed the Federal Reserve move to fund Bear Stearns, calling it necessary to keep “disruption from spilling out into the real economy.”

Paulson is “convinced” that banks will “come out of this situation very strong," but officials are still scrambling: President Bush plans to meet financial gurus tomorrow and the Federal Reserve is mulling a new rate cut Tuesday. Some analysts predict a full percentage point reduction. On ABC, Nancy Pelosi blasted Bush for acting “too late," while on Fox Sen. Charles Schumer compared Bush’s "hands-off attitude" to Herbert Hoover’s.

Source Associated Press

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House Speaker Nancy Pelosi, D-Calif. speaks during a news conference on Capitol Hill in Washington in this Jan. 29, 2008 file photo. Pelosi says it would be damaging to the Democratic party for its leaders...   (AP Photo)
Treasury Secretary Henry Paulson gestures during a news conference at the National Press Club in Washington, Thursday March 13, 2008.   (AP Photo/Jose Luis Magana)
In this photo provided by FOX News, Treasury Secretary Henry Paulson appears on "Fox News Sunday" in Washington, Sunday, March 16, 2008.   (AP Photo/FOX News Sunday, Freddie Lee)
In this photo provided by ABC News, Treasury Secretary Henry Paulson appears on ABC's This Week with George Stephanopolous from Washington, Sunday, March 16, 2008.   (AP Photo/ABC News, Lauren Victoria Burke)
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