White House talks up US economy

The White House said today the US economy was growing solidly and held out hope that legislation cracking down on corporate fraud…

The White House said today the US economy was growing solidly and held out hope that legislation cracking down on corporate fraud would help "boost confidence" in the US stock market.

"When you take a look at the data - the hard cold facts about the economy - impartial economists will all tell you, even partisan economists will tell you, the economy is growing, the economy is growing solidly, fundamentals are strong," said White House spokesman Mr Ari Fleischer.

Mr Fleischer made the comments just before congressional negotiators reached agreement on legislation boosting oversight of the accounting industry and increasing penalties for corporate executives convicted of fraud.

The legislation, which could win final congressional approval later this week, has taken on new urgency as US stock markets have tumbled.

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Republicans fear continued market turmoil will undermine President Bush's popularity and hurt them at the polls in the November congressional election.

"There are other issues that are at play, and one of things that the president thinks would be the most constructive to boost confidence is for Congress to finish action on the legislation dealing with corporate accounting, and get it sent to him and do so this week so it can be signed quickly into law," Mr Fleischer said.

"The president looks forward to signing a strong bill," he added.