Bush Attempts to Allay Fears About the Economy

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'We Will Come Through This Challenge'

In a news conference on Tuesday, President Bush says that he is certain that steps his administration has taken will help turn things around and that the country will shake off this economic slowdown.

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"People say, 'Aww, man, you're running out of time, nothing is going to happen,' " Bush said. ". . . What can we get done? We can get good housing legislation done. We can get good energy legislation done. We can get trade bills done. I mean, there's plenty of time to get action with the United States Congress, and they need to move quickly."

At the same time, Bush rejected Democratic demands to tap emergency oil reserves and suggested that he was not inclined to consider a second stimulus package during his term. Bush said lawmakers should wait to assess the impact of the $168 billion stimulus package passed in February, which included checks of up to $600 per person that are still being distributed.

House Speaker Nancy Pelosi (D-Calif.) and other Democrats said yesterday that they planned to move forward with a second stimulus package that would include spending for roads, expanded unemployment benefits, home-heating assistance for low-income families and aid for states struggling with budget deficits. Rep. Roy Blunt (R-Mo.) responded that "the best way to stimulate our economy would be to take meaningful steps to reduce the price at the pump."

Bush and other Republicans argue that one way to lower gas prices is to open up most of the coastal United States to offshore oil drilling. Bush lifted a presidential ban on such drilling Monday, but Congress would have to remove its own ban for exploration to proceed.

"I readily concede that, you know, it's not going to produce a barrel of oil tomorrow, but it is going to change the psychology that demand will constantly outstrip supply," Bush said of his proposal.

One reporter asked Bush whether he recalled a February news conference when the president said he was not aware that gas prices were predicted to exceed $4 a gallon.

"Aware of it now," Bush responded.