Vice President Dick Cheney has told an audience in San Francisco that the fundamentals of the American economy remain sound.

He credited President Bush's policies as well as Federal Reserve rate cuts for boosting the economy, and claimed the Republican administration inherited the recession from its predecessor.

Hecklers jeered Cheney during his morning speech

But even as he tried to talk up the economy, he faced heckles from protesters, yelling "Cheney is a corporate crook."

Mr Cheney once ran the huge energy-concern Halliburton and has been dogged by speculation about his involvement in the company's offshore vehicles.

Once the protesters were removed from the auditorium, Mr Cheney continued his speech to thunderous applause.

"Acts of fraud and theft are outside the norm in corporate America," he said. But when they do happen, "wrongdoers must be held to account.

"I have great affection and respect for Halliburton, it's a fine company and I'm pleased that I was associated with the company and with the men and women of Halliburton," he said, when questioned about the company.

Keeping upbeat

In recent days, the markets have fallen, as traders' attention has turned from corporate accounting scandals to the country's economic woes.

It is clear from the data when President Bush and I took office that the nation was into full-blown recession

US Vice President Dick Cheney

Mr Cheney however pointed to several positive economic statistics, arguing that the economy continues to be driven by increased worker productivity, rising wages and continued home buying.

"We believe the economy is poised for sustained growth without inflation - so long as we hold to the right policies," Mr Cheney told a gathering of the Commonwealth Club in San Francisco.

In doing so, he reiterated the upbeat message President George W Bush has been hammering forth in recent weeks to assure Americans - and Wall Street - the fundamentals of the economy remain sound.

Inherited woes

In an effort to silence critics of the Bush administration's economic policies, the vice president blamed the previous Clinton administration for the current state of the American economy.

Mr Cheney pointed to recent revisions in Gross Domestic Product (GDP) figures, released last week, that showed the economy contracted for the first nine months of 2001.

Bush, too, talked up the economy on Wednesday

Previously it had been thought the US economy only shrank during one three-month period last year.

"It is clear from the data when President Bush and I took office that the nation was into full-blown recession."

Taint of scandal

Mr Bush delivered a similar message simultaneously to an audience in Madison, Mississippi.

"When I took office our economy was... beginning a recession," he said before a group gathered at Madison Central High School.

The economy was then further blighted by September's terror attacks and corporate-accounting scandals, Mr Bush said.

"But I'm certain of this: we won't let fear undermine our economy and we're not going to let fraud undermine it either."

Messrs Bush's and Cheney's comments were a two-pronged assault on concerns about Republican control of the House of Representatives, which may fall to Democrats in the coming November congressional elections.

The taint of corporate scandal and Americans' discontent with the anaemic economic recovery have been driving speculation Democrats may once again control the House, which they have not done since 1994.