Senator McCain is making a run at Mayor Giuliani on Mr. Giuliani’s home turf of New York City, burnishing his financial credentials amid jitters on Wall Street.

Mr. McCain appeared in New York yesterday flanked by Senator Gramm of Texas, a Ph.D. economist and former chairman of the Senate Banking Committee who is now vice chairman of the bank UBS. He also announced a New York leadership team that includes Henry Kissinger, Blackstone Group chairman Peter Peterson, and Edward Cox, a lawyer active in Republican circles who is President Nixon’s son-in-law.

“I am proud to be supported by the economic conservatives of our party as we go through this difficult time,” said Mr. McCain, who was also joined yesterday by a second former chairman of the Senate Banking Committee who is supporting his presidential bid, Alfonse D’Amato.

Before heading off to an evening fund-raiser, Mr. McCain met with reporters to praise the decision by the Federal Reserve chairman, Ben Bernanke, to cut the federal funds rate three-fourths of a percentage point. He also suggested that the economic stimulus package presented last week by President Bush may not have gone far enough.

“We have to do more of that,” he said when asked about the rate cut and the stimulus package. “We have to make the tax cuts permanent and stop the spending that jeopardizes our nation’s fiscal future. I believe the fundamentals of our economy are still strong but that does not mean we are not headed for more hard times.”

Mr. McCain was in the city at a time when recent polls show him leading Mr. Giuliani in New York State — 36% to 24% in a poll by Siena College and 36% to 23% in a survey by WNBC/Marist. A Quinnipiac University Polling Institute survey released yesterday shows the two candidates in a dead heat. Those numbers represent a turnaround from a poll released just last month that showed Mr. Giuliani holding a 33-point lead over the Arizona senator. Mr. McCain appears to be reveling in the turn of events.

“Last night, I noticed the Democratic candidates mentioned my name quite frequently,” he said. “I’m always flattered to be mentioned in a Democratic debate. It’s pretty clear they view me as the most formidable opponent. I agree with them.”

Speaking on Fox News Channel, Mr. Giuliani offered his own view of the economic terrain.

“I think the government is going to have to do something pretty strong here. I think a very strong stimulus package is necessary. And, to me, a strong stimulus package is heavy on the permanent part,” he said. “So I would put heavy emphasis on cutting the corporate tax rate, cutting the capital gains tax, keeping the tax on the dividends low — the things that are very competitive between countries where money moves one place or another.”

Mr. McCain’s senior policy adviser Douglas Holtz-Eakin held a conference call with reporters Tuesday where he said if elected Mr. McCain would cut the corporate tax rate ten percentage points.

Invoking Ronald Reagan several times throughout the press conference, Mr. McCain touted his foreign policy experience and his economic credentials as his two major selling points for voters.

Mr. McCain said he did not know how Senator Thompson’s decision to drop out of the race would affect his standing and declined to comment when asked about a Wall Street Journal article that reported that President Clinton could receive a $20 million severance pay out from Ron Burkle and Dubai-connected investment company.

When asked why he chose to endorse Mr. McCain, Mr. D’Amato alluded to Mr. Giuliani, who, as mayor, employed as his transportation commissioner the wife of Charles Schumer, the congressman from Brooklyn who defeated Mr. D’Amato in the 1998 election.

“I think he is our best chance to win the White House,” Mr. D’Amato said of Mr. McCain. “My support for him is not because there’s somebody else in the wings that I may have differences with — even though that may be true.”

Both Mr. McCain and Mr. Giuliani said they remain focused on the January 29 Florida primary, on hoping to pick up momentum heading into the February 5 Super Tuesday, when 21 states including New York will hold Republican contests. New York has 101 Republican delegates. Mr. Giuliani also left Florida on Tuesday to raise money in New York at a private fundraiser. He has staked his candidacy on winning Florida’s primary and a loss there would further erode his support in his home state if not entirely end his chances of winning.