WASHINGTON, Oct 20: The chairman of the Federal Reserve, Ben Bernanke, endorsed the idea of a second US economic stimulus plan this year on Monday after warning of a possible “protracted slowdown.”“With the economy likely to be weak for several quarters and with some risk of a protracted slowdown, consideration of a fiscal package by the Congress at this juncture seems appropriate,” he said in comments to the House of Representatives budget committee.

The speaker of the House, Democrat Nancy Pelosi, has suggested that Congress may convene after November 4 presidential elections to pass a projected 150-billion-dollar tax cut and spending package.

The plan would increase federal spending on infrastructure, expansion of food stamps and unemployment insurance, and a focus on health care aid in the form of programmes like Medicaid.

Pelosi welcomed Bernanke’s comments and called on President George W. Bush and Republicans in the upper chamber Senate “to enact a targeted, timely, and fiscally responsible economic recovery and job creation package.”

President Bush signed into law a 168-billion-dollar stimulus package in February, but Senate Republicans rejected an attempt by the House to pass a second package last month.

The White House said it was keeping an “open mind” regarding a second package but was wary of specific proposals from the Democrats.—AFP