Bush predicts Republicans will retain Congress

CHICAGO, July 7 (Reuters) President George W Bush, trying to boost his standing with Americans with a new media strategy, confidently predicted today that Republicans will retain control of Congress in November elections despite his political troubles.

''We will hold the House (of Representatives) and the Senate,'' Bush said in the first formal, solo news conference he has held outside of Washington. ''I'm looking forward to these elections. I think you'll be surprised.'' At Chicago's Museum of Science and Industry, Bush tried out a new media strategy by taking questions from regulars in the White House press corps as well as Chicago media.

The idea was to get a greater mix of questions and have Bush show concern about everyday issues important to Americans outside of Washington. If there were any doubts about the locale, the White House cleared them up by putting Bush in front of a mural of the city skyline topped by the single word: CHICAGO.

Bush gently ribbed national reporters, questioning one's knowledge of North Korea's nuclear arsenal.

Aside from a few local issues such as Democratic Mayor Richard Daley's political problems (''I still think he's a great mayor,'' said Bush), the questions were on largely familiar topics, from North Korea and Iraq to high gasoline prices.

The Iraq war has been a leading factor weighing down Bush's job approval ratings, which have risen a bit in recent weeks but are still around 40 per cent. Experts say an approval rating that low for a president spells trouble for his party's efforts to maintain control of Congress.

Bush adamantly defended his decision to topple Iraqi President Saddam Hussein and said political considerations would not lead to an early withdrawal of US troops in Iraq.

''We will lose if we leave too early,'' said Bush, denouncing those Democrats who want a formal timetable for redeployment.

On the economic front, Bush had some of the wind taken out of his sails by monthly employment numbers. Job growth was a tepid 121,000 in June, more than 50,000 short of the forecast.

White House officials said Bush's Chicago stop, which included a dinner with Mayor Richard Daley and local leaders on Thursday night, was the first in a series of similar trips he would make around the country in coming months.

They will allow him to spend more time in a city than his usual quick pace of giving a speech and leaving.

White House officials denied a political motive in the new strategy but said Bush wanted a chance to take his case to Americans about his policies.

''These trips are good for the president, getting out of the (Washington) Beltway, talking to people about their lives, hearing their stories, being able to share ideas with local leaders. That's something that he likes to do, and he'll do more of it,'' said White House spokesman Tony Snow.

With his image in disrepair, Bush undertook a retooling of his White House staff a couple of months ago and his communications team is trying to expose the president to more questions from reporters.

REUTERS SY PM2326