The boss of the US Federal Reserve Ben Bernanke has warned that there are still "downside risks" to growth in the world's largest economy.
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President Bush said the economy was "remarkably resilient" but urged Congress to pass legislation to help homeowners as soon as possible.
He defended plans to help mortgage firms Fannie Mae and Freddie Mac but denied they were being bailed out.
Plans to offer the mortgage institutions access to fresh credit were necessary to stabilise the mortgage market and boost confidence, President Bush said.
However, he stressed that the two firms should remain shareholder owned.
President Bush and Ben Bernanke's comments came as problems in the US housing market have weighed on the wider economy, slowing consumer spending and boosting recession fears.
The US is not alone in dealing with the problems, and the UK is wrestling with slower growth and quickening inflation.
Central bankers are having to juggle a number of problems and analysts said that accelerating consumer price growth may mean they are unable to cut interest rates to stoke up growth.
Earlier this month, the Fed left its main interest rate unchanged at 2%. The Bank of England left its main interest rate unchanged at 5%.
"The Fed's having a difficult time, as are most other central banks, as to what the next move should be," said Dustin Reid of ABN Amro.
(BBC)
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