President George W. Bush warned on Tuesday that damage to the US economy would be “painful and lasting” if Congress did not pass his admininstration’s financial bail-out plan. The president maintained that “much if not all” of the $700bn cost of the plan would be eventually returned to taxplayers.

“I realise this is a difficult vote for members of Congress,’’ Mr Bush said at the White House. “But the reality is that we’re in an urgent situation and the consequences will grow worse each day’’ that Congress does not act.