Government keeping close watch on financial crisis- Bush

Other News Materials 18 September 2008 20:19 (UTC +04:00)

US President George W Bush on Thursday defended the "extraordinary measures" taken by the government to address a growing financial crisis in the past week, but warned the danger was not yet over, dpa reported.

Speaking after an emergency White House meeting with his economic advisors, Bush promised the government would continue taking necessary actions "to strengthen and stabilize our financial markets and improve investor confidence."

US stocks have posted dramatic losses amid a crisis of confidence on Wall Street since Monday - the product of bank failures, government bailouts and fears of more on the horizon. Major stock indices were trading higher on opening Thursday.

The Federal Reserve early Thursday injected nearly 250 billion dollars into the financial system through joint action with five other central banks around the world.

On Tuesday night the government granted an 85-billion-dollar loan and effectively took control of insurance giant American International Group Inc (AIG).

"These actions are necessary and they're important, and the markets are adjusting to them," Bush said in a brief statement. "Our financial markets continue to deal with serious challenges."