Republican presidential candidate John McCain will unveil new economic proposals today aimed at helping middle-class Americans as he fights to make up a slump in the polls.

Trailing in the polls, John McCain today said US political pundits may have written off his presidential campaign but he will “fool them again” and “come from behind like we have every time in the past”.

Sarah Palin has defended her attack on Democratic presidential nominee Barack Obama after accusing him of “palling around with terrorists”.