Republican presidential candidate Mitt Romney (R) poses for a photo with supporters during a campaign stop in Warren, Michigan January 11, 2008.
(REUTERS/Rebecca Cook)
HUDSONVILLE, Michigan (Reuters) - Republican presidential hopeful Mitt Romney said on Friday the U.S. economy needs a shot in the arm to ensure it does not slip into a recession because it is in a "fragile" state.
President George W. Bush is weighing whether to seek an economic stimulus package and leading economists have urged policymakers to find ways to put cash in the hands of middle class families and help homeowners avoid foreclosure.
"I do believe we should take action to keep the economy from falling into a recession," Romney told reporters when asked if a stimulus package was needed. "We do need to forestall the growing credit crisis and the subprime mortgage crisis."
The former Massachusetts governor spent Friday crisscrossing Michigan trying to capture the state's primary, a pivotal state for Romney since he failed to win the Iowa and New Hampshire early nominating contests.
On Tuesday, voters in the state select their picks for the Republican and Democratic nominees in the November presidential election.
Federal Reserve Chairman Ben Bernanke hinted at "substantive" interest rate cuts on Thursday and Democratic presidential rival Hillary Clinton earlier on Friday proposed a $70 billion spending package to stave off a recession.
"We need tax stimulus of the nature that will propel growth and at the same time provide capital for our markets given the credit crunch," Romney said. On the campaign trail, he has urged eliminating taxes on savings for middle income families that earn $200,000 or less.
Michigan, where Romney was born and his father served as governor, has been hit hard by the slumping U.S. auto manufacturers and has one of the highest home foreclosure rates.
He said his work on Wall Street gave him an advantage over competitors for the party's nomination, a veiled shot at Arizona Sen. John McCain who has jumped into the lead after winning the New Hampshire primary and has been in Congress for more than two decades.
"Michigan needs someone who understands how the economy works, America needs somebody who understands how the economy works," Romney said.
He said he expected to win in Michigan and suggested he would not drop out if he did not win the contest. "I intend to keep going through this process," he said.
(Editing by Mohammad Zargham)
(For more about the U.S. political campaign, visit Reuters "Tales from the Trail: 2008" online at http://blogs.reuters.com/trail08/)
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