Pelosi says more stimulus needed, Bush "in denial"

By Kevin Drawbaugh

WASHINGTON (Reuters) - House Speaker Nancy Pelosi on Tuesday called for a second economic stimulus package and said President George W. Bush is "in denial" about the U.S.

economy, drawing a sharp White House response.

Tax rebate checks are in the mail to millions of Americans under a $152 billion economic stimulus package passed by Congress earlier this year and signed into law by Bush.

"It's clear there is a need for a second stimulus," Pelosi, a California Democrat, told reporters at a news conference.

"The president has for a long time been in denial on the state of the economy," she said.

Bush, backed by fellow Republicans in Congress, has indicated he wants to wait and see how the first stimulus package works before looking at another one.

"I don't think that we have that amount of time," Pelosi said. "There are indications that this downturn is steeper than it was when we created the first stimulus package."

The Bush administration defended its approach. "We have an economic stimulus package in place, and coupled with the response from the Federal Reserve, we expect to see a return to growth in the U.S. economy as the year progresses," said White House spokesman Tony Fratto.