Barack Obama and John McCain reluctantly backed the $700 billion rescue deal yesterday in the knowledge that, while the bailout is critical to the US economy, it is still deeply unpopular with voters.

The presidential candidates, fresh from their first televised debate on Friday night, appeared on the Sunday talk shows to try to claim some credit for the taxpayer protections inserted into the deal, but also to send a populist message that, if elected, they would end the days of Wall Street greed. Mr Obama told CBS’s Face The Nation: “My inclination would be to vote for it, understanding I am not happy about it.”

The reaction in the US heartland just 39 days before the election was largely hostile to what is seen as a taxpayer-funded Wall Street bailout.

Earlier, in a statement, the Democrat conceded that “failure to deal with the current crisis would have devastating consequences for our economy”. He called the breakthrough on Capitol Hill “the culmination of a sorry period in our history” because of the “reckless greed of Wall Street”. He called for long-term protections for American taxpayers.

Mr McCain said that he, too, expected to back the deal, because “the option of doing nothing is simply not an acceptable option”. Yet he added: “This is something all of us will swallow hard and go forward with.”

Like Mr Obama, he said the White House’s concessions had made the deal more acceptable and reiterated his support for curbs on executive pay and severance packages. He said: “Main Street were the innocent victims of greed on Wall Street.”

Mr McCain was asked about charges — even levelled by some Republicans — that the recent performances of Sarah Palin, his running mate, have been rambling, awkward and shaky. There has been particular focus on an interview she gave to CBS last week, which was unimpressive. It renewed claims by Democrats that she is not ready to be one heartbeat away from the Oval Office.

Mr McCain said: “I’m so excited about the reaction Sarah Palin has got across this country. I’m so happy she’s part of our team. They can complain all they like to — I’ll rely on the judgment of the American people.”

Following their debate in Mississippi, both campaigns released duelling advertisements. The Obama team claimed that, during the 90-minute event, Mr McCain never mentioned the phrase “middle class”. A narrator says: “McCain doesn’t get it. Barack Obama does.” The McCain camp released a commercial airing previous criticisms of Mr Obama by Joe Biden, his running mate. The Republican’s aides pointed out that, when it came to the war, Mr Obama never uttered the word “victory” during the debate.

Steve Schmidt, Mr McCain’s chief strategist, said they would make the case in coming days that Mr Obama is not ready to be commander-in-chief.

The debate did little to alter the close nature of the race. There were no major gaffes or blows, from either side. Mr Obama appeared sharper on the US economy, Mr McCain was more forceful on foreign policy.

Times Recommends

• Toyota recalls 437,000 cars including Lexus
• Myners says bonuses are bleeding pension funds
• Japanese company faked safety reports on seats