Powell said he had watched both Obama and Sen. John McCain in the last "six or seven weeks," since the national political conventions, and paid special attention to how they reacted to the nation's worsening economic situation.

"I must say, he seemed a little unsure about how to approach the problem," Powell said of McCain.

"He didn't have a complete grasp of the economic problems we have."

Powell also expressed concerns about McCain's selection of Alaska Gov. Sarah Palin as his running mate. "I don't believe she's ready to be President of the United States, which is the job of vice president," Powell said, adding that it raised "some questions in my mind" about McCain's judgment.

As for...

Powell said he had watched both Obama and Sen. John McCain in the last "six or seven weeks," since the national political conventions, and paid special attention to how they reacted to the nation's worsening economic situation.

"I must say, he seemed a little unsure about how to approach the problem," Powell said of McCain.

"He didn't have a complete grasp of the economic problems we have."

Powell also expressed concerns about McCain's selection of Alaska Gov. Sarah Palin as his running mate. "I don't believe she's ready to be President of the United States, which is the job of vice president," Powell said, adding that it raised "some questions in my mind" about McCain's judgment.

As for Obama, Powell said, "I think that he has a definitive way of doing business that would serve us well."

"He's thinking that all villages have values, all towns have values, not just small towns have values," Powell said, in an apparent reference to remarks Palin made earlier this week that she enjoyed visiting the "pro-America" areas of the country.