U.S. Treasury Secretary Henry Paulson opposes a plan by Democrats to use some of the $700 billion financial rescue package to bailout the auto industry and troubled homeowners.
Paulson spoke Tuesday at a Congressional hearing, where he said the plan should remain focused on the critical task or stabilizing the financial system by buying stock in troubled banks.
He spoke just hours before top U.S. auto executives from General Motors, Ford and Chrysler and the head of the autoworkers union appear before a different Congressional hearing seeking help for their industry.
Democrats in Congress back a plan to use $25 billion from the economic rescue plan to help the car makers. The Bush administration says the automakers should get their finances in order by using a previously-approved loan from the Energy Department.
That $25 billion loan was meant to help automakers retool to build more fuel-efficient vehicles.
Meanwhile, a new economic report shows the slowdown in the U.S. economy cut demand at the wholesale level by a record amount. Tuesday's report from the Labor Department shows prices paid to mines, factories and other producers fell by 2.8 percent in October, largely due to falling oil costs. Outside the volatile energy and food sectors, prices rose by four-tenths of a percent.
Another report Tuesday says the financial crisis and slowing economy helped send housing prices sliding in almost 80 percent of Americans cities in the third quarter of this year.
The National Association of Realtors says the median price of a single-family home during that time fell nine percent compared to the same time last year.
Up to 40 percent of home sales in the third quarter came after owners were unable to pay their home loans, and banks repossessed the properties.
Reported by VOA News.
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