US President George W Bush predicts the ailing US economy will emerge from its current challenges stronger than ever.
Speaking in the White House overnight, President Bush acknowledged the dual pressures of declining house values and high gasoline prices have created difficulties for many American families.
President Bush however remains confident his administration has the ability to address these concerns, citing the “right decision” taken by the US Treasury in providing safeguards to mortgage agencies Fannie Mae and Freddie Mac.
“I think the system basically is sound, I truly do. And I understand there's a lot of nervousness. But the economy is growing, productivity is high, trade is up, people are working,” the President says.
“It's not as good as we'd like, but... to the extent that we find weakness, we'll move.
“I'm not an economist, but I do believe that we're growing. I can remember this press conference here where people yelling ‘recession this, recession that’ as if you're economists.
“I'm an optimist. I believe there's a lot of positive things for our economy.”
Federal Reserve chairman Ben Bernanke painted a far more serious picture on the current concerns in a speech to the US Sentate yesterday, warning the economy continues to face “numerous difficulties”.
“Growth is projected to pick up gradually over the next two years as residential construction bottoms out and begins a slow recovery and as credit conditions gradually improve,” Bernanke says.
“However, FOMC (Federal Open Market Committee) participants indicated that considerable uncertainty surrounded their outlook for economic growth and viewed the risks to their forecasts as skewed to the downside.”IFAonline
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