Bush announces initial steps to help struggling homeowners

Housing analysts said it was highly likely the limited steps Bush outlined will be expanded in coming weeks by a Democrat-controlled Congress intent on responding to growing voter anxiety as up to 2 million homeowners worry about losing their homes.

Officials in the troubled housing industry said the important thing was that the administration had finally offered a proposal, a step they said should help calm global financial markets that have been on a rollercoaster ride in recent weeks as investors worried about a serious credit crunch.

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NEW YORK (AP) ‘ Wall Street closed out another erratic week with a big gain Friday after investors took comments from President Bush and Federal Reserve Chairman Ben Bernanke as reassuring signs Wall Street won’t be left to deal with problems in the mortgage and credit markets on its own.

Investors balked early in Friday’s session when comments from Bernanke didn’t indicate a cut in the benchmark federal funds rate was imminent. However, they moved past some of their initial disappointment and appeared to concentrate on comments that the Fed would step in if needed.

Bernanke, speaking at the Fed’s annual conference in Jackson Hole, Wyo., said the central bank will ‘act as needed’ to prevent the credit crisis from hurting the national economy.