The Pentagon announced last December that U.S. force levels would be reduced from the baseline figure of about 138,000 to about 131,000 by the end of March. The total currently is 133,000. In late February the Pentagon told Congress that "it will be possible to consider" additional reductions as the political process moves forward and as Iraqi security forces gain experience. No timetable has been set for deciding on additional cuts.

More than 2,300 American troops have died in Iraq. At home, nearly four of five people, including 70 percent of Republicans, believe civil war will break out in Iraq, according to a recent AP-Ipsos poll.

"I am confident ¡ª I believe, I'm optimistic we'll succeed," the president said. "If not, I'd pull our troops out. If I didn't believe we had a plan for victory I wouldn't leave our people in harm's way."

Bush said U.S. forces were essential for the stability of Iraq and restraining al-Qaida in the Middle East.

"Their objective for driving us out of Iraq is to have a place from which to launch their campaign to overthrow moderate governments in the Middle East, as well as to continue attacking places like the United States," he said.

Despite pleas from fellow Republicans, Bush has rejected calls for a White House staff shake-up, saying he was satisfied with his aides. He did not rule out bringing in a savvy Washington insider, as some have suggested, but said, "I'm not going to announce it right now." Aides said later he was not trying to signal any appointment.

Bush defended his administration's warrantless eavesdropping program whose legality has been questioned by Democrats and Republicans alike. Putting his remarks in a political context, he said, "Nobody from the Democratic Party has actually stood up and called for getting rid of the of the terrorist surveillance program."

Bush accused Wisconsin Sen. Russ Feingold of "needless partisanship" for urging censure of the president for authorizing the surveillance program.

On the economy, Bush sidestepped a direct answer when asked whether he was concerned about rising interest rates. He simply said the U.S. economy was very strong. He expressed disappointment that Congress shelved his Social Security overhaul and said the system won't be changed without the cooperation of Democrats and Republicans together.