Treasury secretary calls for swift action

WASHINGTON, Jan. 22 (UPI) -- U.S. Treasury Secretary Henry M. Paulson said Tuesday economic intervention should be swift, robust, broad-based and temporary.

The administration has not lost sight of its goal of establishing permanent tax cuts, balancing the budget or taking care of problems with Social Security and Medicare, Paulson said in a speech before the U.S. Chamber of Commerce. As market indicators point to a recession, however, a stimulation package, "must reach a large number of citizens," he said.

The speech was shy on specifics. Paulson said the housing sector undergoing a correction, high energy prices and "turmoil" in the banking industry are nudging the economy downward.

He called for "aggressive action," to prevent foreclosures that could be avoided and indicated talks with legislatures on both sides of the aisle are moving an economic stimulation package forward. "These positive discussions have revealed broad agreement on the need to quickly enact a temporary plan that boosts our economy this year," he said.

On Friday, President George W. Bush proposed a recovery package of $150 billion.

Before the stock markets opened on Tuesday, the Federal Reserve pinched in with a 3/4 point cut in key interest rates.