Washington » The ailing economy probably will worsen before it improves, despite major government intervention to spur a recovery and save financial institutions, White House officials and Democratic leaders said Sunday.

Democrats sought to lower expectations for a quick fix even as they worked on legislation intended to pump billions of dollars into the market in short order. They also opened the door for even more government aid to struggling banks in the future, beyond the $700 billion bailout already approved by Congress.

"There's been no good news and there's no good news on the immediate horizon," Vice President Joe Biden said on CBS' "Face the Nation."

Congress has given President Barack Obama permission to spend the second $350 billion of a Wall Street bailout package initially approved last fall. House Speaker Nancy Pelosi, D-Calif., said she is open to additional government rescue money for banks and financial institutions. But she said taxpayers must get an ownership stake in return.

Biden said Obama's choice for Treasury secretary, Timothy Geithner, will recommend whether more money is needed for the banks. Geithner is expected to be confirmed by the Senate as early as today.

The $825 billion economic recovery package dedicates about two-thirds to new government spending and the rest to tax cuts. Republicans want the recovery package tilted more toward tax cuts and have questioned whether government spending programs will revive the economy in the short Rterm.

The Obama administration has pledged to spend three-quarters of the proposed money in the first 18 months after it is approved.

The Associated Press