Obama expects the economy to worsen

President-elect Barack Obama warned Sunday that the nation's economic problems were "going to get worse before they get better," pointing to the fragility of the financial system and to recent numbers showing the U.S. with its highest unemployment rate in 15 years.

He later sought to balance the stark assessment with optimism about the economy's future as he voiced support for a newly proposed government bailout of the nation's carmakers that would be tied to restructuring and a push for greater fuel efficiency.

In comments a day after he proposed a massive public works program, Obama said Congress was doing the "exact right thing" by rapidly responding to the automotive crisis while holding the industry's "feet to the fire."

Speaking in a taped interview on NBC's "Meet the Press," Obama seemed to be trying to brace the nation for tougher economic times. But at a news conference in Chicago later Sunday, he tempered his remarks with a dose of optimism.