Prominent Washington journalist Bob Woodward said a senior White House official threatened him he would “regret” publishing a story challenging the White House’s account of how the idea for automatic spending cuts originated.

President Barack Obama hailed a drop in the US unemployment rate today as he named a political veteran to a top economic post.

The US economy is showing “glimmers of hope” despite continuing stresses, President Barack Obama said today as he signalled more steps to improve the business climate.

President-elect Barack Obama named the president of the New York Federal Reserve as his treasury secretary today.

More than 217 members of the US House of Representatives backed the US$397bn (€286.5bn) economic rescue package today, enough to pass the bill, barring any last-minute changes of heart.

British prime minister Gordon Brown is setting up a National Economic Council to help Britain through the financial crisis by co-ordinating economic policies across his Government, it was announced today.

US President George Bush ruled out raising taxes to pay the massive costs of Gulf Coast reconstruction, saying other government spending must be cut to pay for a recovery effort expected to swell the national debt by $200bn (€164bn) dollars or more.

US President George W Bush said yesterday the Gulf Coast must be rebuilt with an eye toward wiping out the poverty and racial injustice plain to all in the suffering of the black and the poor in Hurricane Katrina's wake.

US President George Bush said today the Gulf Coast must be rebuilt with an eye toward wiping out the persistent poverty and racial injustice plain to all in the suffering of the black and the poor in Hurricane Katrina’s wake.

PRESIDENT George W Bush is moving swiftly to revamp his economic team, with California financier Gerald Parsky among those under consideration for treasury secretary and former Goldman Sachs chief Stephen Friedman set to become White House economic adviser.