$787 Billion Not Enough.Obama Advisor Urges Another Stimulus Plan

The Obama administration appears to be sending mixed signals on whether a second stimulus package will be needed to pull the U.S. economy out of a deep and prolonged recession. Democrats and Republicans are expressing dissatisfaction with the impact of the $787 billion stimulus package President Barack Obama signed into law in February.

Obama economic advisor Laura Tyson says the federal government should begin crafting a second package to stimulate the U.S. economy on what she termed a "contingency basis," Tyson said.

"We are in a situation where the economic outlook is very uncertain and the risks are all on the downside [conditions could worsen]. It looks like the economy is weaker than expected. Why not begin to think about, over the next several months, whether we need a stimulus package and what it should include, so that we are ready [to act] as we get more information?"