Senate approves release of $350bn in bailout funds

CONGRESS laid the foundation for US president-elect Barack Obama’s economic recovery plan yesterday with remarkable speed, clearing the way for a new infusion of bailout cash for the financial industry while majority Democrats proposed spending increases and tax cuts totalling a whopping $825 billion (€630bn).

Two days after Obama personally lobbied for release of $350bn in bailout funds, the Senate narrowly turned aside a bid to block the money.

Across the capitol, House Speaker Nancy Pelosi said: “Immediate job creation and then continuing job creation” were the twin goals of the separate stimulus legislation.