Bush Addresses 'Sluggish' Economy

President Bush acknowledged on Friday that the economy is in a period of "sluggish growth" and urged Congress to extend his tax cuts and pass legislation to reform the distressed mortgage market.

The president noted the high unemployment rate -- which reached 5.5% in May, the biggest jump in over two decades -- as well as the record foreclosure rate reached in the first quarter.

"This is a time of turbulence in the housing market and slow growth for the overall economy," Bush said during a swearing-in ceremony for Steven Preston, the new secretary for Housing and Urban Development. He added that the high unemployment rate is "clearly a sign that is consistent with slow economic growth."

Americans have lost 324,000 jobs so far this year. They also lost $1.7 trillion in net worth during the first quarter as home values declined and investments posted weaker returns, the Federal Reserve reported Thursday. Tighter lending standards and waning asset value have limited people's access to credit. ...