Bush seeks to calm fears over US economy

With the specter of recession supplanting the Iraq war as the public's top concern, Bush in his final State of the Union address acknowledged that growth was slowing but insisted that the country's long-term economic fundamentals were sound.

He prodded Congress to act quickly on a $150 billion economic stimulus package laid out out last week.

"In the long run, Americans can be confident about our economic growth. But in the short run, we can all see that growth is slowing," Bush said in a globally televised speech to the US Congress.

Bush touted security gains in Iraq he ascribed to a troop buildup he ordered last January and reasserted that any further drawdown of forces would depend on his commanders' recommendations.

He also renewed his call for Iran to stop enriching uranium and to "come clean" about its nuclear intentions. "Our message to the leaders of Iran is also clear: verifiably suspend your nuclear enrichment, so negotiations can begin," Bush said.

Politically weakened by the unpopular war in Iraq, eclipsed by the race to choose his successor and scrambling to stave off lame-duck status, Bush presented no bold new ideas.

His seventh State of the Union speech was a chance, however, to set the tone for his waning months in the White House and try to salvage his frayed legacy before leaving office in January 2009.

But sandwiched between Saturday's Democratic presidential primary in South Carolina and Tuesday's Republican contest in Florida, Bush will struggle to make himself heard above the growing din of the 2008 election campaign.

At the top of his speech agenda was a $150 billion stimulus package meant to avert recession in an economy suffering from high oil prices and a housing slump.

"At kitchen tables across our country, there is concern about our economic future," Bush said and urged Congress to complete work on the plan.

He is trying to head off attempts by some Senate Democrats to expand the plan beyond the tax rebates and business investment incentives agreed with House of Representatives leaders last week.