"We have to act. We have to act now," the president told CBS News' Katie Couric.
"Now that doesn't mean that the package can't improved and that's what I said to the leadership last night," he continued. "Let's improve it. Let's make this a package that is big enough for the moment."
The president also faced down fallout over the withdrawal of two of his choices for key government positions, including Health and Human Services pick Tom Daschle, for tax-related reasons.
Watch Couric's interview of Obama and CBS Evening News reporting on Daschle and more below: