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"Today we learned that our economy shrank in the last three months of 2008 by 3.8 percent. That's the worst contraction in close to three decades," said the president at a White House gathering.
"This isn't just an economic concept. This is a continuing disaster for America's working families," he warned. "The recession is deepening, and the urgency of our economic crisis is growing."
Obama said the government can't drag its feet or delay action much longer.
"They (Americans) need action now. They need us to pass the American Recovery and Reinvestment Plan," said the president, urging the Senate to approve the 819 billion dollar stimulus package immediately.
"I'm pleased that the House with the urgency necessary in passing this plan. I hope we can strengthen it further in the Senate," Obama said.
"What we can't do is drag our feet or delay much longer. The American people expect us to act, and that's exactly what I intend to do as president of the United States," he added.