'We are facing a pretty strong headwind,' Senator John Ensign told Reuters on Wednesday, noting a number of Senate races once seen as Republican wins that are now highly competitive in the midst of the financial turmoil.

With Democrats now controlling the Senate 51-49, Mr Ensign said: 'A really good night for us would be 44.'

'A really bad night would be if they get 60,' Mr Ensign said in a telephone interview from his home state of Nevada.

If Democrats end up with 60 of the 100 Senate seats, they would have enough to clear Republican procedural hurdles and pass almost any measure without compromise.

'One of our missions is to explain to people how dangerous it would be if Democrats get 60 or anywhere near 60,' Mr Ensign said.

If Democrats have a filibuster-proof majority, they would pass 'an energy policy that will keep us dependent on foreign oil, a health care policy that has the bureaucracy in Washington, DC, running our health care system and spending will go up dramatically,' Mr Ensign said.

'We are working hard to avoid that.'

Republican John McCain and Democrat Barack Obama face off in their final presidential debate on Wednesday, with Mr McCain needing a strong showing to salvage a White House race that could be slipping away.

Opinion polls show Mr Obama gaining ground nationally and in battleground states after weeks of economic turmoil and plunging stock markets, with voters saying they trust Mr Obama on economic leadership more than Mr McCain.

Thirty-five Senate seats are up for election - 23 now held by Republicans, the other dozen by Democrats.

A month ago, Mr Ensign said his party's fortunes had improved markedly with the selection of Mrs Sarah Palin, the governor of Alaska, as Mr McCain's vice-presidential running mate.

To be sure, a charismatic Palin initially invigorated the party. But her unfavourable ratings began to climb after an interview with CBS News that raised questions about her ability to hold the nation's second-highest office.

But Mr Ensign said it was the financial crisis that took away what had been the Republicans' new momentum.

He said the public primarily holds his party responsible for the Wall Street meltdown because President George W. Bush, a Republican, has led the nation the past eight years.

Citing opinion polls, Mr Ensign said many people mistakenly believe Republicans still control Congress even though Democrats won the Senate and House of Representatives in the 2006 election.

'A lot of people think we are still in the majority, so they are blaming us,' Mr Ensign said. -- REUTERS