Washington ? You know the economy is in big trouble when Democrats and Republicans start talking cooperation instead of confrontation.

Recession fears and an unnerving meltdown in global markets are forcing a burst of emergency action rarely seen in this slow-moving and politically divided capital.

The biggest surprise Tuesday came from the Federal Reserve, the nation’s central bank, which slashed a key interest rate and hinted it would do it again, soon. That move, decided in an unannounced video conference Monday night, helped avert an expected disaster on Wall Street following a stock selloff in Asia. Down 465 at one point, the Down Jones industrials ended the day off a moderate 128.

There was a surprise at the White House, too. The bitterness and name calling that have been the hallmark of relations between President Bush and the Democratic-led Congress were replaced – at least for now – by cordiality and cooperation. Lawmakers joined administration officials in negotiations on upwards of $150 billion in tax cuts and government spending to pump up the economy.

Bush summoned lawmakers to the White House to talk about his recent trip to the Middle East, but the subject on everyone’s mind was the deteriorating economy and plummeting world markets.

“The urgency that we feel at home is now even more urgent as we see the impact of our markets on others,” House Speaker Nancy Pelosi said afterward.

Senate Majority Leader Harry Reid said the goal was to get a deal through Congress and on Bush’s desk within roughly three weeks – lightning speed compared to the usual snail’s pace on Capitol Hill. His Republican counterpart, Mitch McConnell of Kentucky, agreed the aim was action in the next few weeks and said, “That, by the standards in Congress, is pretty fast.”

Bush expressed confidence that he and the Democratic-led Congress could put aside sharp differences that have marked his presidency.

“I believe we can find common ground to get something done that’s big enough, effective enough so that an economy that is inherently strong gets a boost – to make sure that this uncertainty doesn’t translate into more economic woes for our workers and small business people,” Bush said in the Cabinet Room.

Later, announcing the creation of a panel to educate people about their finances, Bush said he thought there would be an agreement “in relatively short order.”

The White House meeting was intended to show the world that Bush and his Democratic adversaries recognize the gravity of the economic slowdown and are serious about protecting consumers and investors who have watched their holdings shrink. Wall Street and global markets fear the stimulus package outlined by Bush is not enough to avert a recession. The Dow Jones industrial average is down nearly 10 percent since the beginning of the year – its worst first 14 trading days ever.

Official Washington was accentuating the positive.

“I really feel good that we have an opportunity to do something together,” Reid said, standing in the White House driveway with Pelosi after talking with Bush. Reid said the size of a deal suggested by Bush was “a good number.”

Administration officials are focusing on rebates of $800 to $1,600 for individuals and couples and so-called bonus depreciation to allow companies to deduct 50 percent of business investments made this year. Democrats say the package also should include boosts in unemployment benefits, food stamp payments and the Medicaid health care program for the poor and disabled.