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| Version 1 | Version 2 |
|---|---|
| Bush reassures over economic woes | Bush reassures over economic woes |
| (about 2 hours later) | |
| President George Bush has attempted to restore confidence in the US economy, amid the deepening financial crisis. | President George Bush has attempted to restore confidence in the US economy, amid the deepening financial crisis. |
| Speaking at the Economic Club of New York the President acknowledged that growth had slowed but said that the economy is basically sound. | Speaking at the Economic Club of New York the President acknowledged that growth had slowed but said that the economy is basically sound. |
| He said the economy was "obviously going through a tough time." | He said the economy was "obviously going through a tough time." |
| Meanwhile, Ben Bernanke, the head of the US central bank pledged to do everything possible to help struggling home owners hit by the credit crisis. | |
| He said that the Fed "is strongly committed to fully employing our authority, expertsie, and resources to help alleviate their distress." | |
| The Fed has already cut interest rates sharply to ease teh credit crunch, and is expected to make a further reduction when it meets next week. | |
| Housing problems | |
| The US housing market is in freefall, with prices dropping and repossessions rising. | |
| The remarks came shortly after one of Wall Street's leading investment banks, Bear Stearns, said it needed emergency funding due to the credit crisis. | |
| The President said that the Bear Stearns situation was changing fast, but the US Federal Reserve and the US Treasury had the situation in hand. | The President said that the Bear Stearns situation was changing fast, but the US Federal Reserve and the US Treasury had the situation in hand. |
| He also admitted that the credit crisis is having a knock-on effect to the broader economy by making banks less able to lend money. | He also admitted that the credit crisis is having a knock-on effect to the broader economy by making banks less able to lend money. |
| "Hard working Americans are concerned about their families and their bills, " the President said. | "Hard working Americans are concerned about their families and their bills, " the President said. |
| Consumer confidence slips | Consumer confidence slips |
| That was supported by the latest report on US consumer confidence from the University of Michigan. | That was supported by the latest report on US consumer confidence from the University of Michigan. |
| Its index of confidence slipped in early March compared to February to near record lows. | Its index of confidence slipped in early March compared to February to near record lows. |
| "There was nearly unanimous agreement among consumers that the economy was now in recession," said Richard Curtin, director of the survey. | "There was nearly unanimous agreement among consumers that the economy was now in recession," said Richard Curtin, director of the survey. |
| President Bush said that tax rebates agreed with Congress would start taking effect later this year, which should help boost the economy. | President Bush said that tax rebates agreed with Congress would start taking effect later this year, which should help boost the economy. |
| A survey of economists by Reuters also suggested that a majority are now predicting that the US economy had moved into recession. |