Obama aide urges stimulus haste

Washington – The two chambers of Congress must move fast to craft a compromise financial stimulus package, says one of US President Barack Obama’s top advisors.“The president feels that… we need a major programme enacted very quickly that will create three to four million jobs,” Larry Summers told ABC TV.

Mr Summers is head of the White House’s national economic council.

The president says his plan, which may come to $900bn (£612bn), is “absolutely necessary” for reviving the US economy.

‘Closure’ needed

On Saturday the Senate discussed a pared-down version of the original $900bn plan, and is now expected to vote on the bill early next week.

If the Senate passes its version of the bill, it must then be reconciled with the House of Representatives version already passed, before both houses vote on the reconciled version to send to President Obama to sign.

Speaking on ABC’s This Week programme, Mr Summers said “the most important thing is that people come together and create the three to four million jobs”.

“There’s 90% overlap. We’ve got to get to closure on the last 10%,” he said.

“There are certainly good ideas in both versions and we’ll have to draw from those ideas in creating an ultimate vehicle.”

The House and Senate measures are largely similar, but there are some differences over how to expand federal medical assistance programme Medicaid, and over certain tax issues.

‘Forthright’

US lawmakers will have to synthesise the best of the two bills, and have a finished version ready by the president’s deadline of 16 February.

“There are respects in which both bills can surely be improved,” said Mr Summers.

The former Treasury secretary added that a “large, forthright” approach was needed, with more support for education state and local governments to ward off a potentially downward spiral.

New US employment figures were released on Friday showing that nearly 600,000 jobs were lost in January, pushing the unemployment rate to 7.6% – its highest in 17 years.

Source: BBC Business