WASHINGTON, Oct 13, 2008 (AFP) - US President George W. Bush and his Treasury Secretary Henry Paulson will both make statements on the economy early Tuesday, the White House and Treasury Department said.

Bush is due to speak at 8:05 am (1205 GMT) Tuesday from the Rose Garden at the White House, it was announced late Monday.

Paulson, expected to meet with Bush at 7:30 am (1130 GMT) as part of the president's working group on financial markets, is to speak at the Treasury Department at 8:30 am (1230 GMT) and unveil details of actions to shore up public confidence following weeks of global economic turmoil, Treasury Department said in a statement.

The announcements came on the day US stocks posted their largest ever one-day point gain, following their worst week ever.

They also come as Neel Kashkari, the newly-appointed Treasury Department official tasked with managing the 700-billion-dollar US rescue package, unveiled plans for the US government to buy stakes in several banks, in the latest move to combat the worst global financial crisis since the 1930s.

The Wall Street Journal reported Monday on its website, citing people familiar with the matter, that the plan calls for Treasury to take about 250 billion dollars in equity stakes in potentially thousands of banks across the country.

Paulson was to be meeting late Monday with leading bankers and the US Federal Reserve to discuss a financial market stabilization intitiative.

In his Tuesday remarks, Paulson will discuss 'a series of comprehensive actions to strengthen public confidence in our financial institutions and restore functioning of our credit markets,' his department said in a statement.

Under the 700-billion-dollar Troubled Assets Relief Program, the government is authorized to take exceptional measures, including the purchase of toxic mortgage-related assets from ailing financial institutions in a bid to unclog frozen credit flows.

Some economists have criticized Paulson for initially proposing buying up the soured assets, arguing that directly injecting capital into troubled firms would be more effective in unblocking credit, the lifeblood of the US economy.