For the President, A Matter of Principle

The president has also highlighted the $152 billion economic stimulus package that will provide payments to most U.S. households beginning in May, and an administration-backed program aimed at helping strapped homeowners.

Bush and his aides have been cool to several of the most ambitious Democratic proposals, including a measure offered by Rep. Barney Frank (Mass.) and Sen. Christopher J. Dodd (Conn.) that would allow the Federal Housing Administration to renegotiate distressed mortgages and would provide insurance for as much as $300 billion in new mortgages.

For many conservatives, "there's some relief that he hasn't been more activist than he could have been," said William W. Beach, a senior fellow in economics at the Heritage Foundation. "The president has done a nice job of holding back."

White House spokesman Tony Fratto said Bush is determined to proceed carefully to "make sure you're not doing harm" by inserting the government too heavily into the financial and housing markets.

Fratto also disputed suggestions from Democrats this week that the White House is restraining Paulson, a former chairman of Goldman Sachs, from taking more aggressive action.

"The president appointed Chairman Bernanke, Secretary Paulson and others, and these are people that we support, and they are part of the federal response," Fratto said. "We don't need to take credit for what the Fed does, but we are pleased they are taking good and creative steps."

Douglas Holtz-Eakin, an economic adviser to the McCain campaign, said Bush is appropriately allowing Bernanke, Paulson and other financial experts to take the lead in crafting the government's market strategies.

"If any president does their job right, the key is you set the policy agenda and you put in place the right people to carry that agenda out," Holtz-Eakin said. "You have the entire regulatory apparatus, and you populate it with people who share your philosophy."

Staff researcher Julie Tate contributed to this report.