President George W Bush is set to announce a programme of measures aimed at preventing the fragile US economy falling into a recession.
President George W Bush has called for a stimulus package to prevent the fragile US economy falling into a downturn.
Mr Bush will give details of the proposals in a speech at 1700 GMT.
He said the package would have to be big enough to make a difference to the "large and dynamic" US economy.
Exact details are unclear at present, but analysts said the measures may include tax rebates of $800 (£409) for individuals and $1,600 for families.
Mr Bush said it had to include tax incentives for US business and direct tax relief for the American people.
A US housing market slump and problems in the financial markets have raised fears of a severe economic downturn.
The spending package should total at least 1% of gross domestic product, he said.
Quick action
US Treasury Secretary Henry Paulson said any package would be temporary but "robust".
"It's going to be temporary and get money into the economy quickly," Mr Paulson told CBS television.
"It's going to be focused on consumers, individuals, families, putting money in their pocket," he explained.
"And it's going to be focused on giving businesses the incentive to hire people, to create jobs."
Stock markets rose worldwide in anticipation of the package that should cushion the impact of a slowdown on the world's largest economy.
Many observers have warned that the US economy is on a knife edge, even though the Fed has cut interest rates three times since last summer, bringing its main borrowing cost down to 4.25%.
The situation is looking so gloomy, that many analysts are now predicting that the Federal Reserve will have to cut interest rates a number of times this year if it is to stave off a recession.
Global stock markets, which tumbled on Thursday, rebounded on optimism that the plan would help revive US growth.
