President George W. Bush on Thursday sought to assure nervous Americans that the economy is holding up well despite worries about a recession.“I say the fundamentals of our nation's economy are strong,” Bush said at a White House news conference. Inflation is down, markets are steady, unemployment is relatively low, exports are up, and corporate profits seem to be healthy, he said.The president was asked about concerns by some economists that the housing slump and higher mortgage costs could lead to a recession despite action earlier this week by the Federal Reserve to cut short-term interest rates by a half-percentage point.“There is no question that there is some unsettling times in the housing market and credits associated with the housing market,” Bush acknowledged, but he said he did not see that spreading to the broader economy.Bush said he was optimistic on the economy, but suggested he would be nervous if he thought Congress would raise taxes. “We're not going to raise taxes,” he stated.Bush also urged Congress not to embrace protectionist practices and instead pass four pending free-trade deals with Peru, Colombia, Panama, and South Korea.“I am concerned about protectionism … because if the United States loses its confidence when it comes to trading, it will make it less likely our economy will grow,” the president said. “I believe these free-trade agreements will be an interesting test of protectionism.” “We've got four trade agreements that we've negotiated that we want to get passed,” Bush said. “There's going to be some crucial votes coming up here pretty soon in the Congress, and we'll work hard to get all four trade agreements through.”Bush warned that if the deals are not approved by Congress, “it is a sign that the protectionists are beginning to … be on the ascendancy here in Washington, and that would be a mistake.”The Senate Finance Committee is scheduled to take the first step toward expected congressional approval o the Peru free-trade agreement later on Thursday, followed by a House of Representatives committee next week.However, the deals with Colombia and South Korea are controversial, and the decision of Panama's National Assembly to elect as its leader a lawmaker wanted in the 1992 killing of a U.S. soldier has added uncertainty to approval of that pact.
