Democrats seek talks with Bush on economy

By Doug Palmer

WASHINGTON (Reuters) - Democratic congressional leaders on Friday urged President George W. Bush to begin talks on ways to boost the U.S. economy which may be teetering on the brink of a recession.

The White House said it had already begun consultations on Capitol Hill.

"We look forward to working together to develop a sound plan that injects demand into the economy, restores consumer confidence and purchasing power and addresses the severe strain felt by millions of our fellow Americans," House of Representatives Speaker Nancy Pelosi and Senate Majority Leader Harry Reid said in a letter to Bush.

They asked to meet as soon as possible with Bush, who is due to return from a trip to the Middle East on January 16.

Prominent Republican and Democratic economists have urged Congress to supplement expected Federal Reserve interest rate cuts with a "timely, targeted and temporary" package of fiscal stimulus, Reid and Pelosi said.

"We want to work with you and the Republican leadership of the Congress to immediately develop a legislative plan based upon these principles so it can be passed and implemented into law without delay," they said.

Bush, who has said he is weighing whether to offer a stimulus package, had already directed his advisors to consult with lawmakers and had planned to meet with members of Congress when he returned, White House spokesman Tony Fratto said.

"Should he consider (a stimulus package) necessary, the president intends to work with the bipartisan congressional leadership to enact a package as soon as possible," he said.

"He has asked his economic advisors to prepare options to consider upon his return, at which point he also plans to meet with the bipartisan leadership," Fratto added.

Bush said he is considering proposing a fiscal package in his State of the Union address to Congress on January 28 but probably won't make a decision until closer to that date.

These developments came as worries over the fragile condition of the economy have grown into a major issue in the 2008 presidential election campaign.

High oil prices, housing market problems and tight credit conditions have led to predictions of a possible recession.

Democratic presidential contender Hillary Clinton on Friday proposed $70 billion in emergency spending to help the poor and the middle class weather an economic downturn.

A joint U.S. Senate and House of Representatives panel said on Friday that it will hear next Wednesday from former Treasury Secretary Lawrence Summers and possibly other experts on ways to stimulate the economy.

(Additional reporting by Caren Bohan and Donna Smith, editing by Alan Elsner)