US President George W Bush has directed his staff to produce an economic revitalisation package including additional tax cuts and a 13-week extension in unemployment benefits.
There is fresh evidence that the US economy was stalled even before the terrorist attacks.
In a series of meetings this week with White House staff and politicians, Bush effectively abandoned his view that the $ 1.3 trillion (£870bn) tax-cut package signed in June was enough to revive America’s financial problems.
The US economy is bordering on recession with thousands of airline industry layoffs and a drop in consumer confidence since the September 11 attacks.
The Government announced that the gross domestic product grew by an anaemic annual rate of 0.3% even before the assaults on Washington and New York.
Bush has told his economic team to produce a stimulus package that includes tax cuts to individuals or businesses, perhaps both, according to senior White House officials who participated in the talks.
He also backed the extension of unemployment benefits, and told advisers to look into job-training assistance.
Democrats want to extend the 26-week unemployment benefit programme by 52 weeks.
White House officials say that is unrealistic and have suggested a 13-week extension, Bush advisers said.