In his first public appearance after the elections on October 2, Mr. Obama said the results convey a message that people are frustrated, because progress has not happened fast enough in economy.

"I think that there is no doubt that people's number one concern is the economy. And what they were expressing great frustration about is the fact that we have not made enough progress on the economy", said the US President.

"I have to take direct responsibility that we have not made as much progress as we need to make", he told a White House news conference.

Mr. Obama said he looks forward to working with Republicans, who won control of the House of Representatives, as well as gaining more seats in the Senate.

He acknowledged the public is worried about government spending and federal deficit, but when deciding what to cut, "the key is to be able to distinguish between stuff that is not adding to our growth, isn't an investment in our future, and those things that are absolutely necessary for us to be able to increase job growth in the future as well".

Mr. Obama also indicated he will talk with the Republicans over whether to extend the Bush-era tax cut, set to expire at the end of the year. Extending the tax cuts is a Republican priority.

However, he said he does not think "tax cuts alone are going to be a recipe for the kind of expansion that we need", but he wants to hear their suggestions on fueling the economy.