Pelosi urges Bush to back second stimulus

Speaker Nancy Pelosi (D-Calif.) is urging President Bush to work with Democrats in Congress on a second economic stimulus package. 

In a statement released by her office, Pelosi said the growing financial crisis should convince Bush and Republicans in Congress to drop their opposition to another stimulus.

{mosads}“Once again, the New Direction Congress calls on President Bush to work with us to pass an economic recovery and job creation stimulus plan,” Pelosi said.

“While Senate Republicans blocked our plan, the growing evidence of the spreading harm of the current economic crisis on Americans should persuade the president and those Members of Congress who have opposed our efforts of the need for immediate, bipartisan action,” Pelosi said.

The House approved a second stimulus before Congress recessed last week, but the package failed to clear the Senate. Pelosi’s urging comes as Democratic presidential candidate Barack Obama is also calling for a stimulus.

The Speaker said Wednesday that she may bring the House back after the November 4 election to work on a second stimulus package. If Obama defeats Republican John McCain for the presidency and Democrats gain seats in the House and Senate, a scenario that polls are now predicting, it might be more difficult for Republicans in the Senate to block a stimulus.

The stock market has plunged over the last two weeks, but markets opened up on Thursday. The Dow Jones was up 135 points at 9:45 a.m.

According to the Associated Press, Pelosi told reporters in Denver that a $150 billion stimulus plan was needed to jumpstart an economy that many now predict is in the midst of a recession.

“We may have to go back into session before the next Congress,” Pelosi said, according to the Associated Press.

In her statement, Pelosi praised the Federal Reserve’s decision to cut interest rates by a half-point in coordination with European Central Banks.

She said the move was a critical response, but that much more needed to be done.

“The Federal Reserve's half-point interest rate cut, announced in coordination with European central banks, is a critical response to the economic downturn and comes on the heels of an economic rescue package passed into law last week designed to help bring stability to the financial markets,” Pelosi stated. “But much more must be done ­ urgently ­ to boost our economy, create jobs, and bring relief to American families affected by the faltering economy.”