JIM LEHRER: President Bush talked up prospects for economic recovery today, and he played down talk of recession. The president told a White House news conference the new stimulus plan should boost the economy. He said, "We acted robustly, and now it's time to determine whether this pro-growth package will actually work."
As the president spoke, the chairman of the Federal Reserve appeared at a Senate hearing. Ben Bernanke dismissed fears about a combination of slow growth and rising inflation.
BEN BERNANKE, Federal Reserve Chairman: I don't anticipate stagflation. I don't think we're anywhere near the situation that prevailed in the 1970s.
I do expect inflation to come down. If it doesn't, we will have to react to it. But I do expect that inflation will come down and that we will have both return to growth and price stability as we move forward.
JIM LEHRER: Concerns about the economy gained new urgency today. The Commerce Department reported growth nearly stalled at the end of 2007. It said the gross domestic product increased just 0.6 percent from October through December.
The news pushed the dollar down, and that sent money into the oil market in search of better returns. In New York, the price of crude oil closed above $102 a barrel, a new record. That's at or near the all-time high, adjusted for inflation.
The negative news also took its toll on Wall Street today. The Dow Jones Industrial Average lost 112 points to close at 12,582. The Nasdaq fell 22 points to close at 2,331. We'll have more on the economy right after this news summary.
In the presidential campaign today, the two frontrunners traded jabs again. Democrat Barack Obama charged the country is indeed "on the brink of a recession." He blamed President Bush and John McCain, among others.
McCain again criticized Obama's views on Iraq. He said the U.S. will win the war "fairly soon." We'll have more on the campaign later in the program tonight.
The battle over a terror surveillance bill resumed in full force today. At his news conference, the president pushed House Democrats to approve the measure. He insisted again the country is in more danger since an earlier law expired this month.
GEORGE W. BUSH, President of the United States: I cannot emphasize to you how important it is that the Congress solve this problem. The Senate has solved the problem. And people say, "Would you ever compromise on the issue?" The Senate bill is a compromise.
And there's enough votes in the House of Representatives to pass the Senate bill. It's a bipartisan bill. And the House leaders need to put it on the floor and let the will of the House work.
JIM LEHRER: Part of the fight is over barring lawsuits against telecommunications companies that aided in wiretaps. The Senate passed a version of the bill including the immunity language. So far, the House has balked.
Today, Speaker Pelosi said Democrats also want to spell out limits on the president's powers.
REP. NANCY PELOSI (D-CA), Speaker of the House: This president is saying it's not about the law and it's not about the courts, it's about the president deciding that he has inherent authority to spy on anyone.
We don't want any president -- Democrat or Republican -- to have that authority. And that's why we're making this fight on protecting the American people and protecting and defending the Constitution of the United States.
JIM LEHRER: House Majority Leader Hoyer said today he is hopeful the House will take up the issue next week.
Rival leaders in Kenya signed a power-sharing deal today. The announcement came after weeks of political violence and then negotiations. As part of the agreement, President Kibaki will keep his post, despite last December's disputed election.
But opposition leader Odinga will fill the newly created job of prime minister. Both parties will be represented in a new cabinet based on their strength in parliament. We'll have more on this story later in the program tonight.
The U.S. stepped up pressure on Turkey today to withdraw from northern Iraq quickly. President Bush said the Turks need to finish the assault on Kurdish rebels and get out.
And in Ankara, Defense Secretary Gates, nursing a broken arm, held meetings with the Turkish president and other leaders. The Turks gave no deadline for pulling out, but Gates said later, "I think they got our message."
ROBERT GATES, Secretary of Defense: The current operation must be as short and as precisely targeted as possible. The Turkish government should make clear to the Iraqi government and everyone concerned exactly what their intentions are and the limited goals and scope of their operations. It should be clear that military action alone will not end this terrorist threat.
JIM LEHRER: The Iraqi government has demanded an immediate end to the Turkish operation.
The prime minister of Iraq issued a new call for political unity today. Nouri al-Maliki said Iraq is now stable again, and he urged Shiites to work together.
The Iraqi leader spoke in Karbala, where millions of Shiite pilgrims finished a major religious holiday. He told them, "We should be united."
The U.S. Senate gave up today on the latest effort to end the Iraq war. Democrats shelved a bill to cut off funding after Republicans blocked further action. Majority Leader Reid insisted the issue will come up again in the spring; that's when Congress debates another $100 billion for the war.
The government today warned owners of 4.6 million Ford vehicles to get them checked immediately. They could have faulty cruise control switches linked to engine fires.
Since 1999, Ford has recalled nearly 10 million cars and trucks because of the problem; to date, only 5 million have been fixed. The affected vehicles include a range of Ford, Lincoln and Mercury cars, vans, SUVs and pickup trucks.
