Bush says cannot take growth for granted

WASHINGTON (Reuters) - President George W. Bush said on Friday the U.S. economy was on a solid footing despite a weak December employment report, a slumping housing market and near record oil prices.

"This economy of ours is on a solid foundation, but we can't take economic growth for granted," he told reporters after meeting with his so-called Working Group on Financial Markets.

He warned Congress that the "worst thing" lawmakers could do to damage the U.S. economy was raise taxes when they return later this month. He also called on Congress to pass legislation to make it easier for homeowners to refinance their mortgages.

U.S. job growth in December was its weakest in more than four years while the jobless rate climbed to 5 percent, its highest level in two years. The report sparked a sell-off on Wall Street but helped move oil prices off a record peak of $100.

"While there is some uncertainty, the report is that the financial markets are strong and solid," Bush said. He also called for building new refineries to ease rising gasoline prices.

Bush said in an interview with Reuters on Thursday that his administration was weighing whether to craft an economic stimulus package to boost the economy.

Some economists have said the chances that the U.S. economy could slip into recession have increased in recent weeks. On Monday, Bush plans to make remarks in Chicago about the economy, a sign of the concern within the administration.