McCain concedes Michigan; pulls staff

WASHINGTON — Republican John McCain conceded Michigan to the Democrats on Thursday, GOP officials said, a major retreat as he struggles to regain his footing in a campaign increasingly dominated by economic issues.

These officials said McCain was pulling staff and advertising out of the economically distressed Midwestern state. He also canceled a visit slated for next week. Michigan, with 17 electoral votes, voted for Democrat John Kerry in 2004, but Republicans had poured money into it in an effort to try to place it in their column this year.

The decision allows McCain's resources to be sent to Ohio, Wisconsin, Florida and other more competitive states. The move underscored McCain's troubles on the economy, which he has acknowledged is not his strongest subject.

Judge refuses to block Palin investigation

ANCHORAGE — An Alaska judge Thursday refused to block a state investigation into whether Gov. Sarah Palin abused her power when she fired her public-safety commissioner this summer.

Judge Peter Michalski threw out the lawsuit filed by five Republican state legislators who said the investigation had been tainted by partisan politics and was being manipulated to damage Palin shortly before the Nov. 4 presidential election.

The probe is looking into whether Palin and others pressured Public Safety Commissioner Walt Monegan to fire a state trooper who was involved in a contentious divorce from Palin's sister, and fired Monegan when he wouldn't dismiss the trooper. Palin said Monegan was ousted over budget disagreements.

Obama hammers McCain on economy

EAST LANSING, Mich. — Democratic Barack Obama said Thursday that his rival John McCain is out of touch with the economic struggles of Americans and doesn't understand there's nothing more fundamental than a job.

Obama hammered McCain's economic record during two rallies in Michigan, a state struggling with the country's highest unemployment rate.

At Michigan State University and an earlier rally in Grand Rapids, Obama said the government's jobs report coming out today is expected to show a ninth straight month of decline.

"Nine straight months of job loss," Obama said. "Yet, just the other week, John McCain said the fundamentals of the economy are strong. Well, I don't know what yardstick Sen. McCain uses, but where I come from, there's nothing more fundamental than a job."

Gates might continue if Obama wins

WASHINGTON — A senior adviser to Barack Obama said Thursday that the Democrat might see Defense Secretary Robert Gates as a candidate to remain at the Pentagon if Obama wins the White House.

Without explicitly endorsing Gates for the job or predicting Obama's selection, Richard Danzig said Gates has exhibited leadership qualities that an Obama administration would value.

Danzig, who was Navy secretary in the Clinton administration and is a senior national-security adviser to the Obama campaign, cited Gates' pragmatic approach and his advocacy for closing the Guantánamo Bay, Cuba, prison for terrorism suspects. He said Gates has been a good defense secretary. "He'd be an even better one in an Obama administration," Danzig said.

Seattle Times news services