Condoleezza Rice sought to calm frazzled nerves over the state of the US economy by insisting that it remained resilient and that Washington would stay open to trade and investment.

The US Secretary of State used her keynote speech at Davos - a defence of America's promotion of democracy in every corner of the world - to declare that the US was determined to remain an engine of growth.

In a rare foray into economics for the Secretary of State, she said: "I know that many are concerned by the recent fluctuations in US financial markets, and by concerns about the US economy."

She said that the $150 billion package put forward by President Bush would "boost consumer spending and support business investment this year."

Ms Rice added: "The US economy is resilient, its structure is sound, and its long-term economic fundamentals are healthy. The United States continues to welcome foreign investment and free trade."

She added that Mr Bush remained committed to getting a deal in the World Trade Organisation's long-delayed negotiations for a global trade deal.

"It is not easy for a US president to advocate free and fair trade at a time of growing economic populism. But President Bush and I remain committed to completing a successful Doha round," she said.

Ms Rice also sought to counter claims about frosty relations between the US and Russia. "The recent talk about a new Cold War is hyperbolic nonsense. Our relations today are fundamentally different from the time when we shared a desire to avoid mutual nuclear destruction."

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