The underlying story here is that the economy is slowing down faster than they expected. By November we may be in a full blown recession.
President expresses hope tax rebates will boost weaker economy
WASHINGTON - President Bush says the economic-stimulus tax rebates will begin going out Monday and will help people cope with lofty energy and food prices, as well as giving the economy a jolt.
“This money is going to help Americans offset the high prices we’re seeing at the gas pump, at the grocery store, and will also give our economy a boost to help us pull out of this economic slowdown,” Bush said Friday in brief remarks at the White House.
“It’s obvious our economy is in a slowdown,” Bush said.
Earlier this week, the president denied the nation was in a recession, instead saying, “We are in a slowdown.” But many economists believe the economy may already be in a recession.
A trio of crises — housing, credit and financial — has threatened to plunge the economy deep into recession.
The economy grew at an anemic 0.6 percent in the final three months of last year and is believed to have gotten even weaker in the first three months of this year. The government will report on the first quarter’s performance next week. A growing number of analysts believe the economy is shrinking now.