By Merle D. Kellerhals, Jr.
Staff Writer

Washington -- President Bush and Federal Reserve Chairman Ben Bernanke have emphasized to world economic markets that the U.S. economy remains fundamentally resilient and concerns about a slowdown in growth could be ameliorated by a short-term stimulus package.

"[The U.S. economy] has a strong labor force, excellent productivity and technology, and a deep and liquid financial market that is in the process of repairing itself.  So I think we need to keep in mind also that the economy does have inherent strengths and that those will certainly surface over a period of time," Bernanke said during testimony before the U.S. House Budget Committee January 17.  Periodically during the year, Bernanke testifies before Congress on the current economic outlook and future trends.

Coinciding with Bernanke's remarks about the continuing strength of the U.S. economy, President Bush announced January 18 that he is asking Congress for a short-term economic stimulus package to help avoid a slowdown in the economy and to help reassure world markets he is prepared to act swiftly.

"Our economy has a solid foundation, but there are areas of real concern.  The economy is still creating jobs, though at a reduced pace.  Consumer spending is still growing, but the housing market is declining.  Business investment and [trade] exports are still rising, but the cost of imported oil has increased," Bush said in a televised White House address.

The proposed $140 billion stimulus package Bush is seeking amounts to about 1 percent of the gross domestic product, and it temporarily will be offering rapid business and consumer incentives, but not long-term tax increases.  Bernanke told Congress that he also supports a short-term stimulus package, but he warned that it should not carry any long-term impact that could hamper growth later or worsen the U.S. federal deficit.

The U.S. economy has been buffeted by a housing crisis, credit crunch and surge in oil prices.  And since last summer, Bernanke said in testimony, financial markets in the United States and in a number of other industrialized countries have been "under considerable strain."

Treasury Secretary Henry Paulson, who will lead the effort before Congress for the stimulus package, told NBC News that "the long-term fundamentals of our economy are strong," but "[w]e believe the economy is going to continue to grow slowly here."

Paulson said "this is not an emergency."  The president is very focused on taking actions quickly that will give a boost to the economy as soon as possible this year, he said.

The U.S. economy grew at about 5 percent in the third quarter, Paulson said, though the signals are mixed now and there is some slowing of the growth rate.

Bush spoke with congressional leaders by conference call January 17, and all agreed to a short-term stimulus package that can be ready for his signature within a week to 10 days.  The White House said in a fact sheet that "a growth package can help ensure that consumption and investment is sufficient to protect the health of the broader economy."

A fact sheet on the president’s stimulus plan is available on the White House Web site. The full text of Bernanke’s statement to the House Budget Committee, as prepared for delivery, is available on the committee Web site.