On a campaign trip to Ohio less than two months before the November congressional elections, Mr Obama admitted his economic policies had not worked as quickly as hoped, but said his party and proposals were still better placed to boost the US economy.

Mr Obama's comments came amid a growing battle with Republicans over tax cuts for wealthy Americans enacted under former President George W. Bush and set to expire at the end of this year.

John Boehner, the Republican leader in the House of Representatives, called for a two-year freeze on current US tax rates and proposed the government cut spending for next year to 2008 levels, before the controversial federal bailouts and Mr Obama's US$814 billion stimulus plan.