The two candidates later issued a joint statement in which they said the American people are facing a moment of economic crisis.

Speaking of the $700 billion plan the administration has proposed to bail out the financial industry, the candidates said the proposal is flawed, but that the effort to protect the U.S. economy must not fail.

The proposal came moments before President George W. Bush addressed the U.S. in a televised speech, warning that the U.S. faces a "long and painful recession" if Congress fails to act. He said "our entire economy is in danger."

In the 12-minute address, which comes as Bush's proposed bailout is facing stiff Congressional opposition especially from his own Republican party, the president said without immediate action by Congress, financial panic might ensue.

"It should be enacted as soon as possible," the president said.

Bush also issued extraordinary invitations to Obama and McCain, one of whom will inherit the mess in four months, as well as key congressional leaders to a White House meeting on Thursday to work on a compromise. Both plan to attend.

The three presidential debates between the candidates _ the first slated for Friday night _ were becoming increasingly important as U.S. voters face economic uncertainty, but McCain's announcement left the question of whether they will hold their first debate in doubt.

Obama, who seemed taken aback by McCain's move to delay the debates, asserted American voters needed to hear the candidates' views "now more than ever."

"It's my belief that this is exactly the time when the American people need to hear from the person who, in approximately 40 days, will be responsible for dealing with this mess," Obama said at a news conference in Clearwater, Florida, speaking before the joint statement was issued. "It's going to be part of the president's job to deal with more than one thing at once."

McCain said he was putting the good of the country ahead of politics, but his announcement was clearly a political move. It was an attempt to outmaneuver Obama on an issue _ the economy _ that has been hurting McCain as his rival continued to gains in polls.

The candidates' conflicting positions arose after they spoke privately about how to facilitate congressional negotiations on the Bush administration's $700 billion economic bailout proposal.

But McCain beat Obama to the punch with the first public statement, saying the Bush plan to prop up the financial community seemed headed for defeat and a bipartisan solution was needed urgently.

"It has become clear that no consensus has developed to support the administration's proposal," McCain said. "I do not believe that the plan on the table will pass as it currently stands, and we are running out of time."

But Democratic Congressman Barney Frank, chairman of the House committee shepherding the bailout plan, said all sides were getting close to a deal and accused McCain of "trying to take credit for something that's already happening without him."

McCain said he had spoken to President Bush, a fellow Republican, and asked him to convene a leadership meeting in Washington that would include him and Obama.

Bush, who rarely calls legislative leaders to push priority projects, took the unusual step of calling Obama personally about the meeting, said presidential spokeswoman Dana Perino.

Obama spokesman Bill Burton said the senator would attend and "will continue to work in a bipartisan spirit and do whatever is necessary to come up with a final solution."

While McCain said he would "suspend" his campaign, including advertising and fundraising, it simply will move to Washington where the four-term senator will remain in the spotlight, regardless.

Obama repeatedly stressed at his news conference that he called McCain first to propose that they issue a joint statement in support of a package to help fix the economy as soon as possible. He said McCain called back several hours later, as Obama was leaving a rally in Florida, and agreed to the idea of a statement but also said he wanted to postpone the debate and hold joint meetings in Washington.

Obama said he suggested they first issue a joint statement showing bipartisanship.

"When I got back to the hotel, he had gone on television to announce what he was going to do," Obama said.

In the statement, the two candidates said now is the time to "rise above politics for the good of the country. We cannot risk an economic catastrophe."

Stephen Wayne, professor of government at Georgetown University in Washington, said he understood McCain's attempt to put off the foreign policy debate because the U.S. economic crisis was likely to "swallow up McCain's strength on international relations."

"I don't know what would be gained in stopping his campaign," said Wayne, a presidential historian who's been studying the 2008 campaign.

In rejecting a debate delay, Obama also declined to join McCain in suspending campaign activities, and noted both he and his opponent had jets that could get them to Washington very quickly if their presence were needed. He said he had been in daily contact with congressional leaders and Treasury Secretary Henry Paulson, and didn't see an immediate need for his presence.

The University of Mississippi, which was hosting the event, said it too was going ahead with preparations because it had "received no notification of any change in the timing or venue." The debate commission also said it was moving forward.

McCain warned of dire consequences if Congress did not act quickly even as the U.S. House of Representatives and Senate were struggling to find agreement on the bailout package sent to Congress this week by the Bush administration. Paulson and Federal Reserve Chairman Ben Bernanke had spent two days this week testifying and answering lawmakers' questions.

"If we do not, credit will dry up, with devastating consequences for our economy. People will no longer be able to buy homes and their life savings will be at stake. Businesses will not have enough money to pay their employees. If we do not act, ever corner of our country will be impacted. We cannot allow this to happen," McCain said in a statement he read in New York City.

Obama said quick action was needed but cautioned it must be prudent.

"We have to act swiftly, but we also have to get it right," the first-term Illinois senator said.

As the Washington Post-ABC News survey indicated the financial turmoil was boosting Obama's standing, a different survey by the Pew Research Center for the People and the Press showed people favoring the Democrat on the economy, with 47 percent saying he would best handle the economy, as opposed to 35 percent who favored McCain.