U.S. President George W. Bush speaks during a press conference at the White House in Washington on February 28, 2008. Bush spoke on FISA legislation, the ailing economy and Iraq. (UPI Photo/Kevin Dietsch)

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 (NYSE:FRE) and Fannie Mae (NYSE:FNM) 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."