Pelosi seeks response to market turmoil

WASHINGTON (Reuters) - House of Representatives Speaker Nancy Pelosi on Thursday urged President George W. Bush to take a "comprehensive and effective systemic response to ongoing market turmoil."

Pelosi, a Democrat, said in a letter to Bush that the worsening economy demands another bipartisan economic recovery effort, and that Congress will stand ready beyond the September 26 scheduled adjournment date to consider legislation.

On Thursday evening U.S. Treasury Secretary Henry Paulson, Federal Reserve Chairman Ben Bernanke, and U.S. Securities and Exchange Commission Chairman Christopher Cox were seen entering Pelosi's office for a meeting with Congressional leaders.

Reporters and photographers were briefly admitted to the start of the meeting that included top congressional Democrats and Republicans.

Pelosi said the United States was in the midst of a financial crisis. "We're here to work together on solutions to solve that crisis in a way that insulates taxpayers, consumers, main street."

The briefing comes amid speculation the Bush administration is looking at a Wall Street rescue package.

According to sources, Paulson has been considering establishing a federal agency to deal with broken mortgage debt instruments that are choking off new investments and threatening global markets.

Pelosi said in her letter to Bush that any economic recovery effort must address an infrastructure for economic growth, home heating assistance, extended unemployment insurance, food stamps and assistance to maintain critical health-care coverage.

(Reporting by Kevin Drawbaugh, Richard Cowan and Karey Wutkowski; Editing by Gary Hill)