WASHINGTON (MarketWatch) -- Economic fundamentals remain strong despite a drag created by the housing slump and accompanying mortgage woes, President Bush said on Tuesday.

"The basics in the economy are good," Bush said in a White House news conference dominated by questions surrounding an intelligence report that found Iran had suspended a suspected program to develop nuclear weapons. "Inflation's low. Job creation's good. Interest rates are low. Productivity's up. Exports are up. In other words, the basic underpinnings of the economy are strong."