Bush Considers New Measures to Help Economy

June 6, 2008— -- WASHINGTON (AP) -- President Bush is considering new measures to help stimulate the battered economy, the White House said Friday.

White House counselor Ed Gillespie said aides to Bush are constantly looking at options for new economic proposals.

"There's a short window for the president here when it comes to new policy. We understand that," Gillespie said. "So I guess what I'm saying is, don't rule it out."

Gillespie spoke before a Bush speech on the economy, timed around the ceremonial swearing-in of the president's new housing secretary, Steven Preston.

The government's $168 billion stimulus package, passed in February, began getting tax rebate checks to people last month and helped to energize shoppers. "We're beginning to see signs that the stimulus may be working," Bush said at the Department of Housing and Urban Development.

But analysts believe consumers still are anxious, and a weakening job market could make people feel less inclined to spend. This, and talk that the economy already has fallen into its first recession since 2001, has led to questions about whether a second stimulus might be warranted.

The first one provided rebate checks for individuals and extra tax breaks for businesses. The White House has insisted it needed to wait to see the full effects of the existing stimulus before discussing any new steps.

The president did not unveil any new proposals during his speech, nor even hint whether he believes any are necessary.

Earlier Friday, a government report showed that the nation's unemployment rate jumped to 5.5 percent last month, the biggest monthly rise since 1986 and another sign of a deeply troubled economy. Dwindling job opportunities are combined with continuing hardship in the housing, credit and financial sectors.

Preston, formerly the head of the Small Business Administration, is to be Bush's point man on the slumping housing market and subprime lending crisis. He is likely to be the administration's lead negotiator as Congress and the White House work on legislation to allow the Federal Housing Administration to insure up to $300 billion in refinanced mortgages, including many in which the mortgages exceed the value of their homes.