President-elect Barack Obama, flanked by Budget Director-designate Peter Orszag, left, and Deputy Budget Director-designate Rob Nabors, speaks to reporters after a meeting with his top economic advisers at his transition office in Washington on Tuesday.
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By The Associated Press
Published: January 06, 2009 8:09 AM
Updated: January 06, 2009 11:34 AM
WASHINGTON — U.S. president-elect Barack Obama declared the U.S. economy was “bad and getting worse” Monday as he began crisis talks with congressional leaders on emergency action.
He predicted lawmakers would approve hundreds of billions of dollars in new spending and tax cuts within two weeks of his taking office.
“The economy is very sick,” Obama said before meeting with Senate Democratic Leader Harry Reid.
“The situation is getting worse. ...
“We have to act and act now to break the momentum of this recession.”
Obama, whose inauguration is two weeks from Tuesday on Jan. 20, said he expected quick approval of rescue legislation by the new U.S. Congress.
“I expect to be able to sign a bill shortly after taking office,” he said. Pressed on the timing, he said, “By the end of January or the first of February.”
Obama’s proposal to stimulate the economy includes tax cuts of up to US$300 billion, including $500 tax cuts for most workers and $1,000 for couples, as well as more than $100 billion for businesses, an Obama transition official said.
The total value of the tax cuts would be significantly higher than had been signalled earlier.
New federal spending, also aimed at boosting the moribund economy, could push the overall package to the range of $800 billion or so.
