WASHINGTON (AFP) — President George W. Bush said Thursday the United States faced an election-year "slowdown," not a recession, and rejected for now a second stimulus package to prime the world's largest economy.
In a wide-ranging White House press conference, Bush also prodded Congress to pass controversial wiretap laws, warned Turkey to end its incursion into Iraq swiftly, and vowed to push Olympics-host China on human rights.
He also expressed doubts that Russian President Vladimir Putin would truly relinquish the reins to hand-picked successor Dmitry Medvedev in March 2 elections there, stressing: "I can't answer the question yet."
The unpopular US president took pains to confront fears about the battered US economy, hard-hit by slumping consumer confidence amid a deepening housing crisis, a weak dollar, and soaring gasoline prices.
"I don't think we're headed to recession. But no question, we're in a slowdown," said Bush, who predicted that the first wave of a 168-billion-dollar stimulus package would reach US taxpayers in early May.
"We've acted robustly and now it's time to determine whether or not this program will actually work," he said, urging to give lawmakers calling for a second proposed package to give this one "a chance to kick in."
Bush was speaking as the government said the US economy expanded at a sluggish 0.6 percent annual pace in the fourth quarter, in a report that left unrevised its prior estimate of output growth.
Analysts had expected a slight upward revision to 0.8 percent for the quarter, which remains the weakest since late 2002.
The Commerce Department report confirms a sharp slowing from a robust pace of 4.9 percent in the third quarter. It leaves unrevised the 2007 full-year growth estimate at 2.2 percent, following 2.9 percent in 2006.
Bush also scolded US lawmakers for resisting his push for legislation that would broaden US intelligence efforts and give US telecommunications companies retroactive immunity for possible violations of law in aiding his once-secret warrantless spying program.
The US president, who refused to sign a temporary extension of the law, called the issue "very urgent" and warned that failure to pass the law risked "reopening a gap in our intelligence gathering, and that is dangerous."
"Without the cooperation of the private sector we cannot protect our country from terrorist attack," Bush warned. Democrats counter that existing law allows for court orders requiring such cooperation.
The House of Representatives let the law expire on February 16 after it refused to pass a Senate bill that included retroactive immunity, amid concerns that Bush's program illegally intercepted Americans' communications in addition to those by suspected terrorists the White House says are its target.
Bush also urged Congress to press ahead with funding for the troops in Iraq, rejecting "the same old call for withdrawal" of US forces, nearly five years after the March 2003 invasion to topple late dictator Saddam Hussein.
He highlighted progress which he said was being made on the ground since extra troops were poured into Iraq last year saying the "situation had turned around," with violence down across the board.
But Bush strongly urged Turkey to withdraw its forces from northern Iraq and end an offensive against Kurdish rebels there "as quickly as possible."
He said he agreed with Defense Secretary Robert Gates, "who said the incursion should be limited and should be temporary in nature."
"The Turks need to move quickly, achieve their objective and then get out ... as quickly as possible," said Bush.
Turning to Russia, Bush said he aimed to preserve US ties in the interests of future cooperation between the incoming leaders of both countries.
"US-Russian relations are important. It's important for stability, it's important for our relations in Europe," Bush told press conference here.
"Therefore, my advice is to establish a personal relationship with whoever is in charge of foreign policy in Russia."
But he ruled out any talks with new Cuban President Raul Castro, who took office in the communist-ruled island on Sunday, saying he was a "tyrant" lacking legitimacy and unworthy of bilateral leadership-level talks.
"It will send the wrong message," Bush said. "It will give great status to those who have suppressed human rights and human dignity."
But he did vow to press Chinese leaders on human rights and religious freedoms when he attends the Beijing Olympics later this year.
"I will talk about the religious freedom and the importance of China recognizing that if you're allowed to worship freely it will benefit the society as a whole."
Bush also told reporters he would raise Darfur and Iran and Myanmar during his visit to Beijing. "I am not in the least bit shy," he added.
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