WASHINGTON (Reuters) - President George W. Bush said on Monday the U.S. economy was working through "tough times," and credited Congress with making some progress on a new law aimed at helping the troubled housing market.
By Jeremy Pelofsky
WASHINGTON (Reuters) - President George W. Bush said on Monday the U.S. economy was working through "tough times," and credited Congress with making some progress on a new law aimed at helping the troubled housing market.
"Laws shouldn't bail out lenders, laws shouldn't help speculators, the government ought to be helping credit-worthy people stay in their homes," Bush said after a briefing from Treasury Secretary Henry Paulson on the housing legislation and economy.
"One way we can do that, and Congress is making progress on this, is the reform of Fannie Mae and Freddie Mac," Bush said. "That reform will come with a strong independent regulator."
!ADVERTISEMENT!Leaders of the Senate Banking Committee last week reached a deal on a broad housing rescue plan that includes Fannie Mae and Freddie Mac, the government-sponsored enterprises that are the top two housing finance companies, supporting a $300 billion federal mortgage insurance fund.
"Our fellow citizens have got to know that these major players in the mortgage markets, if reformed properly by Congress, will really help stabilize the markets and make it easier for people to stay in their homes," Bush said.
The Senate Banking Committee is due to consider the compromise legislation on Tuesday. White House spokesman Scott Stanzel said White House officials had not yet seen the details of the plan by Democratic Sen. Christopher Dodd of Connecticut and Republican Sen. Richard Shelby of Alabama.
"The bill ... is in committee and it has a long ways to go," Stanzel said. "So we'll keep an eye on it."
Bush also said Paulson assured him that rebate checks were going out to millions of taxpayers in an attempt to ward off a recession amid soaring prices at the gasoline pumps and for goods on grocery store shelves.
"We're working through tough times," Bush said. "He did assure me that refund checks are heading out, people getting that money, and that's good. It should help our economy and more importantly help people pay their bills."
Despite calls for a second economic stimulus package by Democrats who control Congress, the White House spokesman expressed skepticism. Stanzel questioned what components it would include and whether the first one had kicked in yet.
"The idea of a second stimulus has become this sort of catchall phrase for adding a lot of additional government spending or doing things, you know, that Democratic leaders in Congress may have wanted to do previously but ... now would want to sort of put under the umbrella of a stimulus package," Stanzel said.
However, he did not rule out a package and said the president would look at ideas the Congress put forward.
"The president has said let's see the impact that this stimulus package can and will have on the economy before we have a discussion about a second stimulus package," he said. "But certainly the devil is in the details."
(Additional reporting by David Alexander; editing by Mohammad Zargham)
