Bush: Energy, Health Costs A Worry

Economy Is Strong, Says President, After Texas Strategy Session

(AP)  President Bush voiced concern Tuesday over rising energy and health care costs, suggesting they were clouds over an otherwise sunny U.S. economy.

"The economy of the United States is strong and the foundation for sustained growth is in place," Mr. Bush declared, flanked by members of his domestic policy team after a strategy session on his Texas ranch.

Mr. Bush sidestepped a question on interest rate increases by the Federal Reserve, saying "I trust the judgment of Chairman Alan Greenspan." He spoke ahead of a meeting in Washington at which Fed officials were expected to raise short-term interest rates for the tenth time in a row.

"In terms of the effect interest rates will have on our economy, we're more concerned about energy prices and health care prices," Mr. Bush said.

"Those are the two areas that we see as having a greater effect on ... on the future of economic growth," he said.

"And that's why the energy bill's an important start. That's why we've laid out initiatives that we think will help American families and small businesses deal with the rising cost of health care."

Mr. Bush opened the brief news conference with a statement congratulating the Discovery shuttle team, which successfully landed earlier in the day after a 14-day mission in space.

"It was a great achievement," the president said. "It was an important step for NASA as it regains the confidence of the American people and begins to transition to the new mission we've set out for NASA."

Mr. Bush promoted his own policies, including an energy bill he signed the day before in New Mexico that contained millions of dollars of incentives for more energy production.