Presidential rivals tout economic credentials

By John Whitesides

GREENWOOD, South Carolina (Reuters) - U.S. presidential candidates competed on Tuesday to look strong on the economy after an interest rate cut by the Federal Reserve and shaky markets worldwide exacerbated fears of a U.S. recession.

"As we saw overnight, this is a global economic crisis," Democratic Sen. Hillary Clinton of New York told reporters in Washington, fresh from a debate that highlighted tensions between her and her main rival for the Democratic nomination, Sen. Barack Obama of Illinois.

Clinton urged President George W. Bush to do more to help families hit by the U.S. mortgage crisis, which is a key factor behind the overall economic declines.

Republican Sen. John McCain of Arizona touted his economic plans and welcomed the drop in interest rates.

"I am concerned about financial market events, but with the right leadership and pro-growth policies the economy can weather this upheaval," said McCain, eager to build on his momentum after winning the party's nominating contest in South Carolina on Saturday.

Actor and former Tennessee Sen. Fred Thompson, familiar to millions for his television and movie roles, announced on Tuesday he was dropping out of the Republican race after drawing limited support and finishing third in South Carolina.

Democrats face off in South Carolina this Saturday before a much-awaited contest for both parties in Florida on January 29 and battles in more than 20 states on February 5 that could clarify who will represent the parties in the November presidential election.

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