President Bush Discusses Challenges for U.S. in '08

President Bush offered a number of prescriptions for the economy, Iraq and Iran during an appearance on "FOX News Sunday With Chris Wallace," taped Saturday at the Camp David presidential retreat.

—On the economy: "I think the experts would tell you we are not in recession. ... But I will tell you that the signs are troubling enough that we all came together and got a robust (economic stimulus) package out." Bush is scheduled to sign the legislation Wednesday.

Beyond that, he said, "We just have to play it by ear."

—On the legality of waterboarding and other techniques used to interrogate suspected terrorists: "Whatever we have done was legal, and whatever decision I will make will be reviewed by the Justice Department to determine whether or not the legality is there."

—On the long-term U.S. relationship with Iraq: "We will be there at the invitation of the Iraqi government. ... We won't have permanent bases. I do believe it is in our interests and the interests of the Iraqi people that we do enter into an agreement on how we are going to conduct ourselves over the next years."

—On Iran: "I feel pretty good about making sure that we keep the pressure on Iran. To pressure them so that they understand they're isolated. To pressure them to affect their economy. To pressure them to the point where we hope somebody rational shows up and says, OK, it's not worth it anymore."

— On targeting suspected terrorists by allowing surveillance of phone calls and e-mails of people inside the U.S.: "It's been a difficult issue for me because I am — listen, I no more want to trample the civil liberties of the American people than anybody else does. On the other hand, I understand the nature of these people. And I understand the complexities of trying to protect the American people."

—On speculation about his relationship with his father, the first President Bush, and its possible impact on his own presidency: "It's shallow. Shallow psychobabble. ... A bunch of people obviously got too much time on their hands."

— On his legacy: "As far as history goes and all of these quotes about people trying to guess what the history of the Bush administration is going to be, you know, I take great comfort in knowing that they don't know what they are talking about, because history takes a long time for us to reach."