Politics

Economy Eclipsing Everything Else As Senate Returns

January 22, 2008 / 12:15 PM EST / The Politico

While some lawmakers are trying to talk about security in Iraq or foreign intelligence surveillance laws, the economy and the imploding financial markets are threatening to overtake just about every issue on Capitol Hill as the Senate returns after a month-long break.

This morning Congressional Budget Office Director Peter Orszag is testifying before the Senate Finance Committee about the effects of an economic stimulus. Senate leaders have already taken to the floor to discuss the possibilities of an economic stimulus package. Treasury Secretary Henry Paulson is meeting with the top four congressional leaders around noon, followed by a high stakes bipartisan meeting with President Bush later this afternoon.

The Federal Reserve has cut interest rates by three quarters of a point, but the Dow Jones Industrials average was still down 150 points in morning trading. Bush on Tuesday morning signaled that his $150 billion economic stimulus package may need to be even larger.

What's emerging in Washington is a rare moment when the president, Democratic leaders, the 2008 White House hopefuls and GOP congressional leaders all seem to be focused on the same issue. Now, the devil is in the details about what they will actually do about it.

Sen. Mitch McConnell (R-Ky.), the Senate minority leader, summed up the moment in his opening remarks to the Senate this morning.

"On the economy, Republicans are encouraged by recent talk on the other side of a willingness to work with us on an economic growth package," McConnell said. "Now it’s time to prove this is more than just talk. We need to move ahead with a plan that stimulates the economy right away."

Senate Majority Leader Harry Reid (D-Nev.), also gave a nod to the apparent bipartisanship prevailing on Capitol Hill.

"We can no longer turn to the old playbook of political posturing," Reid said. "... If the president and congressional Republicans work with us to pass this short-term stimulus plan ... we can make a real and immediate difference in people's lives."