Bush optimistic economy will regain strength

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NEW YORK, Mar 15 (Reuters): President George W Bush, seeking to bolster faith in the economy amid fears of a recession, acknowledged yesterday the United States was going through hard times but said growth would resume over the long run because economic fundamentals were sound.
"These are tough times," Bush told the nonpartisan Economic Club of New York. "The economy shed more than 80,000 jobs in two months. Prices are up at the gas pump and in the supermarket. Housing values are down. Hard-working Americans are concerned."
But Bush said there were also bright signs with the economy, including low unemployment at 4.8 per cent, higher wages and productivity and exports at an all-time high.
"In the long run I am confident that our economy will continue to grow because the foundation is solid," Bush told about 500 people at the club, a group of top business executives, bankers and economists.
The president's remarks were part of an administration drive to talk up the economy. Bush's visit to the US financial capital also included meetings with the editorial board of The Wall Street Journal and the cable business channel CNBC.
On the CNBC television channel's "Kudlow & Company," Bush again said believes in a strong dollar but said it was inevitable that "economies go up and down." The dollar dropped to a 12 ½-year low of 98.90 Japanese yen last Thursday.
"I'm confident in the long-term strength of the dollar," Bush said in a transcript released by CNBC in advance of the broadcast of the interview.
The trip to New York came amid reports of further slippage in consumer confidence and word that the Federal Reserve and JPMorgan Chase had agreed to provide emergency funding to Bear Stearns because of a credit crunch at the major US investment bank.
Bush said the Fed chairman and Treasury secretary were on top of the fast-moving events and "will take appropriate steps to promote stability in our markets."
With oil prices at record highs, the mortgage market on the verge of meltdown and the spectre of recession looming, Bush has been scrambling to halt the slide in the economy, once seen as a relatively safe part of his presidential legacy.