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WASHINGTON, Oct 5 (Reuters) The US economy will see a mild slowdown as the once-surging housing market cools but overall growth will soon bounce back, White House economic adviser Al Hubbard said on Thursday.

Hubbard told reporters he agreed with Federal Reserve officials who have said gross domestic product growth was likely to moderate.

''We're predicting (third quarter) GDP growth in the 1s or low 2s (percentage range),'' Hubbard said, but he added that would likely be a ''one-quarter or two-quarter event.'' ''We think for the year it'll be around 3 percent,'' he added.

U.S. President George W. Bush, aiming to help Republicans in their fight to keep control of the U.S. Congress in the November elections, has been touting his tax cuts as a major campaign theme and says the reductions have bolstered the U.S.

economy.

Bush plans to underscore that message in a speech on Friday at Fedex Corp. facility in Washington.

Republicans hope their prospects will be helped by a drop in gasoline prices after a surge this summer above $3 a gallon.

But Hubbard said he still hoped to see oil prices head lower.

''Who would have thought we would think $58 or $59 (per barrel) oil was low? The president is not happy with $59 dollar oil. He would like it to be significantly lower. In terms of predicting where it's going to go, I can promise I'm not capable of doing that,'' he said.

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