Barney Frank says new stimulus package likely

NEW BEDFORD -- One of the key congressional negotiators in the $700 billion dollar financial bailout expects Democrats to push for another economic stimulus package after the Nov. 4 election.

US Represenative Barney Frank predicted the new effort would focus on easing fears about lending and investing, saying the "psychological problem is even worse than the real problem."

The Newton Democrat, who chairs the House Financial Services Committee, made his comments yesterday to the editorial board of the Standard-Times of New Bedford.

Frank said the new package would help states pay for stalled infrastructure projects, and also provide assistance to struggling Americans in the form of extended unemployment benefits and money for food stamps and health care costs.

Frank added that if there does not appear to be agreement in a lame-duck Congress on a stimulus plan, Democrats will likely wait for the new Congress in January. (AP)