President George W. Bush planned to meet Monday with his advisory panel on financial markets - which includes Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson - after the Federal Reserve Friday had to step in to keep investment giant Bear Stearns afloat.
The meeting comes after stocks fell and the dollar weakened Friday amid uncertainty over how deeply the credit crunch has seized up the financial system. The markets were shaken when the Fed teamed up with JPMorgan to provide sufficient liquidity for 85-year-old Bear to continue operations. However, Bush appears to reject any dramatic action to help the economy.
In his weekly radio speech Saturday, the president said the federal government must guard against going too far in trying to fix the troubled economy, cautioning that “one of the worst things you can do is overcorrect.”
