By Matt Spetalnick

NEW YORK (Reuters) - President George W. Bush, seeking to bolster faith in the economy amid fears of a recession, acknowledged on Friday the United States was going through hard times but said growth would resume over the long run because economic fundamentals were sound.

Democratic presidential candidate Hillary Clinton countered that much of the country was already in a recession.

With oil prices at record highs, the mortgage market on the verge of meltdown and the specter of recession looming, Bush has been scrambling to halt the slide in the economy.

"In the long run I am confident that our economy will continue to grow because the foundation is solid," Bush told about 500 people at the nonpartisan Economic Club of New York, a group of top business executives, bankers and economists.

Bush's trip to New York came amid reports of further slippage in consumer confidence and word that the Federal Reserve and JPMorgan Chase had agreed to provide emergency funding to Bear Stearns because of a credit crunch at the major U.S. investment bank.

Campaigning in Pennsylvania, which holds the next primary contest on April 22, Clinton visited a Pittsburgh gas station to promote her plan to fight the high energy costs she said are hurting the economy.

"There are many places in our country, and there are many families that are already in recession," Clinton said at the Curran Gulf gas station. "I believe we are on a course that is going to worsen that economic stress."

As conditions have gotten worse, the economy has surpassed the Iraq war as the top concern of voters who will pick Bush's successor in November.