Federal Reserve Chairman Ben Bernanke told House Republicans Friday morning that the country is facing its “most severe post-war” financial crisis, and warned of a “deep and extensive recession” if nothing is done.
Sources who participated in the phone call briefing with Treasury Secretary Henry Paulson and Bernanke told FOX News that details of the federal government’s proposed rescue package are thin.
But Bernanke described the situation as “quite dire,” as he suggested conditions were the worst since World War II.
Sources said Paulson described stress in the financial infrastructure as "significant" and "spreading."
He said that if the government doesn't act soon it would be "nothing short of a disaster" for the markets.
Paulson and President Bush warned Friday morning in separate press conferences that it would take a “significant” infusion of taxpayer dollars to correct the economy.
Lawmakers and members of the Bush administration are meeting over the weekend to draft a rescue plan, which Paulson says he hopes will pass through Congress next week.
However, while Bernanke and Paulson briefed Republicans, there has been no such meeting with Democrats.
The briefing could be indicative of complaints on the GOP side that they have not been kept in the loop on the administration’s rescue of Freddie Mac, Fannie Mae and this week American International Group.
FOX News' Chad Pergram contributed to this report.