Democrats in the US House of Representatives likely will seek passage next month of an economic stimulus bill costing about $500 billion.
A Democratic aide said the package would include the cost of a middle-class tax cut that President-elect Barack Obama wants, billions of dollars for road, bridge and mass transit construction, aid to states and investments in renewable energy development.
Earlier, House Speaker Nancy Pelosi told reporters she hoped Congress would have an economic stimulus bill ready for Mr Obama to sign when he takes office on January 20. She did not provide details.
Panel says US in recession since 2007
The US economy has been in recession since December 2007, a panel of economists charged with the official designation of business cycles said today.
The Business Cycle Dating Committee of the National Bureau of Economic Research said it made the determination during a conference call on Friday.
Although a recession is generally defined as two consecutive quarters of declining activity, the panel has its own criteria for determining a downturn.
'A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income and other indicators,' the panel said.
'A recession begins when the economy reaches a peak of activity and ends when the economy reaches its trough. Between trough and peak, the economy is in an expansion.'
The committee said it 'identified December 2007 as the peak month, after determining that the subsequent decline in economic activity was large enough to qualify as a recession.'
According to US government data, the US economy contracted at a 0.2% pace in the fourth quarter of 2007 but grew 0.8% in the first quarter and 2.8% in the second quarter of 2008. It then contracted 0.5% in the third quarter, based on a provisional estimate.
But the gross domestic product (GDP) data may have been skewed by tax rebates that stimulated consumer spending, according to analysts.
