Economy slowing, not receding, Bush says

WASHINGTON, Feb. 28 (UPI) -- U.S. President George Bush reiterated Thursday his belief the country is in an economic slowdown, not headed for a recession.

During a news conference in Washington, Bush pointed to the recently passed economic stimulus package as a demonstration to U.S. citizens that Washington can address a souring economy in a bipartisan manner. The package includes tax rebate checks, child credits, business tax breaks and housing-related measures.

"(Its) purpose is to encourage consumers," Bush said, "by giving them money to help them deal with the adverse effects of a decline in housing values."

He urged Congress to pass a legislative package that would update the Federal Housing Administration, the Freddie Mac and Fannie Mae lending programs "to help the economy weather difficult times in the housing market."

Bush pushed back the idea the economy was in a recession.

"I don't think we're headed to recession," Bush said, "but we are in a slowdown."