Economy in Trouble: Bush

Struggling economy requires a $150 billion plug, Speaker says

(AP) - House Speaker Nancy Pelosi says a second economic stimulus plan is needed now because of the faltering economy, and she puts the price at $150 billion. President Bush, however, has promised a veto. The House passed a $61 billion economic aid proposal last month before lawmakers left Capitol Hill ahead of the election, but a similar plan failed to pass the Senate. More»

Fast, temporary stimulus would buoy flagging economy, Fed chief tells Congress

(NEWSER) - The country needs a federal stimulus package ASAP, Federal Reserve Chairman Ben Bernanke told the House Budget Committee today, advocating immediate legislation designed “so its effects on aggregate spending are felt as much as possible within the next 12 months.” But he said the package should be “explicitly temporary,” to avoid unwanted long-term stimulus and an undue deficit bulge, CNNMoney reports. More»

Former Fed chief takes heat on Capitol Hill

(NEWSER) - Alan Greenspan is taking more heat on Capitol Hill today as a three-day series of hearings begins on the economic meltdown. “What we tried to do was the best we could with the data that we had,” the former Fed chief told the Financial Crisis Inquiry Commission. “Did we make mistakes? Of course we made mistakes." But he defended the central bank's efforts and said it was "quite active in pursuing consumer protections for mortgage borrowers," reports Bloomberg . More»

(AP) - The economy is finally beginning to show signs of stabilizing in some parts of the US, bolstering hopes of a broader-based recovery this year. A Federal Reserve snapshot of economic conditions issued today finds that most of the Fed's 12 regions indicated either that "the pace of decline has moderated" or "that activity has begun to stabilize, albeit at a low level." The improved assessment raises hope that the recession, which started in December 2007, is drawing to a close. More»

Economy picking up, but not enough that inflation is a worry

(AP) - The Federal Reserve says the recession is easing, but that the economy likely will remain weak and keep a lid on inflation. Against this backdrop, the Fed held a key bank lending rate at a record low of between 0% and 0.25%, and pledged again to keep it there for "an extended period" to help brace activity going forward. More»