Obama on the US economy

US President Barack Obama said modest differences over a $900bn (£631bn) package to revive the US economy should not delay its swift passage. Mr Obama said he expected a "difficult next few days" as the Senate wrangles over the bill but he added: "We can put America back to work and start digging ourselves out of this deep hole we're in." Senate Republican leader Mitch McConnell said the package could be trimmed and should be aimed initially at easing record house repossessions, which have largely been blamed for the deepening recession. Republicans also suggested it should include a provision that would drive mortgage rates as low as 4 per cent, arguing that this could both entice buyers into the lifeless housing market and lower borrowing cost for existing homeowners. Mr McConnell denounced proposed "buy American" restrictions that would require iron, steel and manufactured goods used in infrastructure projects - like building roads and bridges - to be produced in the US. I don't think we ought to use a measure that is supposed to be 'timely, temporary and targeted' to set off trade wars," he said. Many Republicans and some Democrats have complained that some provisions in the bill, like $50 million (£35m) to promote the arts, would not stimulate the economy and are little more than a liberal wish list. Some of the items, such as $75 million (£52) for smoking prevention schemes, have been dropped. White House press secretary Robert Gibbs said the remaining items that have drawn criticism amount to less than 1 per cent of the entire package. "Mr Obama is satisfied that we have the basis of a proposal that will save or create three million to four million jobs and that the American people can be confident about," said Mr Gibbs.

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ITN | February 3, 2009

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