JIM LEHRER: The presidential candidates were on the move again today, as the races on both sides remained wide open.
Republicans campaigned in South Carolina ahead of a Saturday primary. Polls had John McCain and Mike Huckabee vying for the lead. Mitt Romney was in third, but hoped for momentum after his win in Michigan yesterday.
Democrats Hillary Clinton, Barack Obama and John Edwards focused on Nevada. It's a tight three-way race for state caucuses on Saturday. We'll have much more on the campaign right after this news summary.
The Federal Reserve confirmed today economic growth slowed at the end of 2007. A Fed report said consumer spending fell off and demand for cars dropped. It blamed the housing slump and credit crunch.
In a further sign of trouble, the Labor Department reported inflation at the retail level grew more than 4 percent last year, the most in 17 years.
Concerns about the economy prompted calls for quick action today, as Congress returned to work. Democrats talked of tax cuts for the middle class, additional jobless benefits, and aid to state governments.
Senator Chuck Schumer of New York said time is of the essence.
SEN. CHUCK SCHUMER (D), New York: We'd like to do this as soon as possible. That's why Senator Reid and Speaker Pelosi sent a letter to the president. If this isn't done in the first quarter, finished, signed, sealed, and delivered, and already going into effect, it may be too late.
JIM LEHRER: Republicans generally favored granting new tax breaks for business and extending the president's tax cuts. House Minority Whip Roy Blunt said the key will be getting a final bill that really is a stimulus.
REP. ROY BLUNT (R), Minority Whip: I think that's doable, but it's only doable if we work together and do something that happens, that really makes a difference and doesn't become an excuse for other kinds of things that won't have much to do with stimulating the economy.
JIM LEHRER: Later, Speaker Pelosi and House Minority Leader Boehner agreed to work on a bipartisan plan.
Three American soldiers were killed in northern Iraq today. They were taking part in operations against al-Qaida. So far, 13 U.S. troops have died in the offensive.
Elsewhere today, a woman blew herself up in a town just outside Baquba, killing nine Iraqis. It was the fourth attack by female suicide bombers since November.
And on the political front, the U.N. envoy to Baghdad said he now sees progress, despite earlier misgivings. He cited a law letting former Saddam loyalists into government jobs.
President Bush ended his tour of the Middle East today in Egypt. He promised to stay engaged in the Israeli-Palestinian peace process and got backing from Egyptian President Mubarak.
At a news conference, Mr. Bush said he's optimistic. Mubarak said he wants a peace agreement within the next year.
HOSNI MUBARAK, President of Egypt (through translator): During our discussions, I stressed Egypt's support for peace and my hope that President Bush will continue his follow-up of the Palestinian-Israeli negotiations. I also said that I wished that he will reach a peace agreement before the end of his term.
JIM LEHRER: On his trip, President Bush pressed King Abdullah of Saudi Arabia to pump more oil. Today, White House press secretary Dana Perino said the king admitted he's worried about the effect of high oil prices on the world economy. She did not say if the king made any commitment to act.
Riot police in Kenya fired tear gas and bullets to block mass protests in several cities. The opposition called for three days of mass rallies over the recent presidential election. There was word at least two people were killed.
We have a report on events in western Kenya from Lucy Hannan of Independent Television News.
LUCY HANNAN, Independent Television News: Excited crowds took to the streets here today, rowdy but peaceful. They waved branches, prostrated themselves on the ground, and shouted for justice, but they are careful when the police and paramilitary turn up.
More than 200 people have been shot here by security forces in the post-election violence, 60 shot dead.
This is the heartland of the opposition, hometown of presidential candidate Raila Odinga. Feelings run high. There has been a lot of destruction and confrontation. But there is also fear.
Unlike other parts of Kenya, most of the killings here have been by security forces. Armed police are using live bullets today. They hold back the crowd here in Kondele Shopping Center.
Some of the police told me they are short of tear gas for crowd control; others said live ammunition was necessary to scare and control the demonstrators.
Here, an effigy of President Kibaki, who they accuse of rigging the election, is burnt in a makeshift coffin.
The tension is high; there is no real leadership here, just bitterness. The police decide to take action. Rifles cocked, they fire some shots in the air, others into the crowd.
When the crowd flee in panic, police pursue into residential areas behind the shopping center. We watched this policeman stalk his prey through the slum alley and shoot. Friends pull at the body to see if he is alive. He is, just; he has been shot in the back.
Another victim lies motionless on the ground next to him. "They are killing us," shout his friends, incredulously.
Later, we found the man shot in the back at the local hospital. George Williams (ph), 26, is a mechanic, and he will survive, the doctors say.
JIM LEHRER: The U.S. ambassador to Kenya today said a new election is unlikely because of the costs. He said the U.S. is trying to get the Kenyan president and the opposition leader to share power, but he warned, "It is not going to be easy."
A former U.S. congressman was indicted today as part of a terror fundraising ring. Mark Siljander was charged with money laundering, conspiracy, and obstruction.
The indictment said he lied about lobbying senators for an Islamic charity with alleged ties to al-Qaida and the Taliban. The Michigan Republican served two terms in Congress in the 1980s; he was also a delegate to the U.N. during the Reagan administration.
President Bush has exempted the Navy from an environmental law so it can use sonar off California. The issue involved anti-submarine training and its effects on dolphins and whales.
A presidential statement said continued use of sonar is "in the paramount interest of the United States." The Natural Resources Defense Council said it will challenge the exemption in court.
On Wall Street today, the Dow Jones Industrial Average lost nearly 35 points to close at 12,466. The Nasdaq fell 23 points to close at 2,394.
