Obama says U.S. will emerge stronger from crisis

U.S. President Barack Obama takes a question at the Fiscal Responsibility Summit at the White House in Washington February 23, 2009.

WASHINGTON (Reuters) - President Barack Obama struck a balance between grim economic reality and a hopeful outlook on Tuesday as he tried to reassure worried Americans their country will emerge from crisis "stronger than ever."

Riding high in opinion polls, Obama was careful to include a sober assessment of the country's economic emergency in his first speech to Congress. In advance excerpts from the address he sought to temper expectations that his administration's rescue efforts would yield quick fixes.

But the politician whose memoir was called the "audacity of hope" and who won the White House in last November's election amid chants of "yes, we can" was also back in stride, declaring reassuringly that recession-weary Americans can expect better days ahead.

"While our economy may be weakened and our confidence shaken, though we are living through difficult and uncertain times, tonight I want every American to know this: We will rebuild, we will recover," Obama said in excerpts of his televised speech to be delivered at 9 p.m. EST (2:00 a.m. British time on Wednesday) .

"And the United States of America will emerge stronger than before," he added.

Obama, who took office on January 20, was poised to use his speech to press the case for his economic revival plans while laying out a broad agenda, including a much-anticipated push for healthcare reform, to help build momentum for his young presidency.

The primetime address to a joint session of the Senate and House of Representatives comes against a backdrop of growing anxiety across the country in the face of the worst financial meltdown in decades.

While his public support is strong, Wall Street remains sceptical of his economic remedies.

Jittery investors sent U.S. stocks to a 12-year low on Monday, but the markets rallied on Tuesday on Federal Reserve Chairman Ben Bernanke's assurances that he preferred to support troubled banks without nationalizing them.

In what was sure to be his most closely watched speech since his inauguration, Obama planned to offer a candid assessment.

But with misgivings among some fellow Democrats that his tone has become too gloomy, Obama also took care to inject a clear note of optimism.

Paving the way for his first budget proposal on Thursday, Obama planned to stress that he inherited a $1 trillion (690 billion pounds)-plus deficit from the Bush administration and is determined to bring discipline to government spending. His stated goal is to cut the deficit in half by the end of his term in 2013.

That may be difficult, critics say, if he moves swiftly on his pledge to undertake a costly healthcare overhaul while the economy is still slumping.

EXPLAINER-IN-CHIEF

The speech to Congress, Obama's latest chance to act as "explainer-in-chief," was also meant as a forum for laying out priorities such as energy independence, the fight against global warming and reform of the education system.

He was also likely to touch on foreign affairs as he keeps up efforts to roll back Republican President George W. Bush's most divisive policies and repair America's image abroad.

That could include justifying to the public a shift in U.S. military focus from Iraq to Afghanistan, underscored by a troop buildup he has ordered to help counter a Taliban resurgence.

But the economy, topping the list of Americans' concerns, was the centrepiece of his State of the Union-style appearance.

Taking a page from Obama in delivering the Republican response, Louisiana Governor Bobby Jindal, a rising star in the opposition party and a potential presidential candidate in 2012, entitled his rebuttal "Americans can do anything."

In excerpts issued before Obama spoke, Jindal insisted Republicans were ready to work him on economic solutions but also tore into the president and Democrats who control Congress for passing legislation he said will not grow the economy but instead "saddle future generations with debt.

Obama's first weeks in office have been marked by a flurry of activity, including a $787 billion economic stimulus package, a retooled financial industry bailout program and a rescue plan for struggling homeowners.

But he has also faced embarrassing miscues in the completion of his cabinet and criticism that some of his early financial proposals have been lacking in specifics.

The speech, a ritual for new U.S. leaders, comes at a time when Obama is still basking in a presidential honeymoon.

A New York Times/CBS News poll gave him a job approval rating of 63 percent, about 10 points higher than either Bush or former President Bill Clinton at this stage, and a Washington Post-ABC News poll had 68 percent of Americans approving of his job performance.

(Editing by Frances Kerry)