President George W Bush admitted on Friday that the United States is going through "tough times" amid fears that the economy has slid into recession, but assured Americans that the underlying strength of the economy would lead to a rebound.

The country is "obviously going through tough times," he said but expressed confidence that the action taken by the government would put the economy back on track.

Addressing the Economic Club of New York, Bush also called on the Congress to take steps to alleviate the difficulties faced in the housing market and modernise the Federal housing administration.

He, however, opposed the proposal which would give judges authority to rework mortgages to help people out of bankruptcy and save their homes.

"Every time, this economy has bounced back better and stronger than before," he told the audience, striking an optimistic note as he commended steps taken by the Federal Reserve to put the economy back on track.

Speaking about interest rate cuts announced by the Federal Reserve, he said they had announced a major move to add liquidity, describing it as "strong action."

"Today's events are fast moving, but the chairman of the Federal Reserve and the secretary of the treasury are on top of them and will take the appropriate steps to promote stability in our markets," Bush said