Embattled Obama puts jobs at heart of agenda

Speaking before a politician-packed House of Representatives chamber and to a TV audience of millions, Mr Obama urged politicians to come together around new stimulus spending and short-term economic relief.

Defiant despite stinging setbacks, he said he would not abandon ambitious plans for longer-term fixes to health care, energy, education and more.

"Change has not come fast enough," Mr Obama said.

He compared the United States to other nations: "Washington has been telling us to wait for decades, even as the problems have grown worse. Meanwhile, China's not waiting to revamp its economy. Germany's not waiting. India's not waiting."

Mr Obama looked to use the high profile speech to change America's conversation from how his presidency is troubled – over the messy health care debate, a limping economy and the mistakes that led to Christmas Day's barely averted terrorist attack – to how he is seizing the reins on the economic worries foremost on Americans' minds.

He spoke to a nation gloomy over double-digit unemployment and federal deficits soaring to a record 1.4 trillion US dollars, and to fellow Democrats dispirited about the fallen standing of a President they hoped would carry them through this autumn's mid-term Congressional elections.

Just last week, Republicans scored a stunning victory by winning the Senate seat long held by the late Edward M. Kennedy.

Republicans applauded the President when he entered the chamber and craned to welcome Michelle Obama.

But bipartisanship disappeared early, Republicans sitting stone-faced through several rounds of emphatic Democratic cheering and as Mr Obama took a sharp jab at Republican Congressional strategy.

"Just saying no to everything may be good short-term politics, but it's not leadership," he said.

Democrats jumped to their feet and roared when Mr Obama said he wanted to impose a new fee on banks, while Republicans sat stone-faced. Democrats stood and applauded when Mr Obama mentioned the economic stimulus package passed last February. Republicans sat and stared.

The President devoted about two-thirds of his speech to the economy, emphasising his ideas for restoring job growth, taming budget deficits and changing a polarised Washington "where every day is Election Day".

These concerns are at the roots of voter emotions that drove supporters to Mr Obama but now are turning on him.

He looked to rescue the health care plan, which had been his top

domestic priority. The plan was on the verge of passage, then got derailed after opposition Republicans captured the Massachusetts seat. The USA lacks universal health care.

"Do not walk away from reform," he implored. "Not now. Not when we are so close."

In a remarkable shift from past addresses, and notable for a president whose candidacy caught fire over his opposition to the Iraq war,

foreign policy was taking a relative back seat.

On national security, Mr Obama proclaimed some success, saying

that "far more" al Qaida terrorists were killed under his watch last year in the US-led global fight than in 2008.

Also, hoping to salve growing disappointment in a key constituency, Mr Obama said he would work with Congress to repeal the ban on gays and lesbians serving openly in the military. But in a concession to concern among Republicans and in his own party's right flank, Mr Obama neither made a commitment to suspend the practice in the interim nor issued a firm deadline.