FACTBOX: Presidential candidates on Fed and economy

(Reuters) - The Federal Reserve cut U.S. interest rates by three-quarters of a percentage point to 3.5 percent in an emergency move aimed at stabilizing the economy.

Following are comments by 2008 presidential candidates about the economy and the surprise Fed decision.

DEMOCRATIC U.S. SEN. HILLARY CLINTON OF NEW YORK:

"As we saw overnight, this is a global economic crisis.

"The one area that I still hear nothing about from the White House of any significance is what will be done to deal with the mortgage crisis. I believe it is a critical part of what we must do.

"We need a combination of spending, regulatory action with respect to the housing market and rebates through the tax system."

DEMOCRATIC FORMER U.S. SEN. JOHN EDWARDS OF N. CAROLINA:

"If we want to stop saying goodbye to South Carolina's manufacturing jobs, we need to start with a real stimulus package that creates new jobs and puts money in the hands of working families.

"President Bush's proposal is Swiss-cheese stimulus that leaves out millions of hardworking Americans while toeing the line of right-wing ideology at the expense of smart planning for America's future."

REPUBLICAN FORMER NEW YORK MAYOR RUDY GIULIANI:

"Congress and the president should do a stimulus package that is heavy on permanent measures. There has to be some temporary measures as well, but there should be a balance of those things.

"I think what it says (is) the Fed has to deal with the monetary policy, the federal government has to deal with the fiscal policy. Reduce spending, find tangible reductions that are going to help the economy, help stimulate the economy, and also take a look at moderating regulations if there are regulations that are making us anti-competitive

."

REPUBLICAN U.S. SEN. JOHN MCCAIN OF ARIZONA:

"Financial market events raise the urgency of cutting taxes and pro-growth policies in the United States. The role of the Federal Reserve is to ensure that our financial markets are well-functioning and to support economic growth. I am confident that the action taken this morning to cut two key rates will support these goals.

"The U.S. economy has proven to be quite resilient. I am concerned about financial market events, but with the right leadership and pro-growth policies the economy can weather this upheaval."

DEMOCRATIC U.S. SEN. BARACK OBAMA OF ILLINOIS:

"For the second day in a row, the global stock market has continued to plunge as the world continues to fear that the United States government won't do enough to prevent a recession. We hope that the rate cut announced this morning will restore some confidence and stop the damage, but the fear remains.

"It's no surprise that after months and months of watching families struggle to get by in this economy, George Bush finally offered a stimulus plan last week that neglects 50 million workers and seniors who need our help the most."

REPUBLICAN FORMER MASSACHUSETTS GOV. MITT ROMNEY

"More significant even than the stock market turbulence is the concern in the overall market and the fear we may head towards a recession. It is important that we take very aggressive action to turn the market away from recession.

"It's just that a rate cut of three-quarters of a point is a large change and I think indicates that (Fed Chairman) Ben Bernanke and the Federal Reserve are concerned about the direction of the overall economy and are taking very aggressive action to try and tip it back in the right direction and I have no reason to take exception with the move they've taken but I do believe that Congress needs to act immediately."

(Reporting by Jeremy Pelofsky, Jason Szep, John Whitesides and Ellen Wulfhorst, editing by Doina Chiacu)