President Bush was grilled today on the current state of economic affairs, during which he was asked if any further federal aid packages were in the works. Bush did not commit to anything solid, but agreed with the idea of a second wave of artificial stimulus in order to boost the economic conditions.
Bush was essentially backing the proposition of Fed Chair Ben Bernanke; to alleviate the economic situation with another dose of “fiscal aid”. What is unclear at this point, is whether the notion will materialize, and what exactly Bush and Bernanke are talking about.
This is a bit unfortunate, as the Bush administration has been continuously resisting the demands of Democrats to offer a second wave of stimulus checks to taxpayers. This resistance has been one saving grace on the part of the administration, that no seems threatened.
If the Fed does release another round of checks, that’s just one more blow to our already hurt economy. Bush has been frequently denying the release of additional checks, but he may offer some alternative source of “economic relief”. Either way, if any significant action is done by the federal government in the name of economic stimulation, it simply can’t be good news.