(Adds quotes and background) By Matt Spetalnick WASHINGTON, Nov 8 (Reuters) - U.S. President George W. Bush conceded on Wednesday that voter discontent with his Iraq policy helped fuel his party's election defeat and agreed on the need for a "fresh perspective" But even as he announced the resignation of Defense Secretary Donald Rumsfeld, a lightning rod for criticism on Iraq, Bush otherwise gave little ground to victorious congressional Democrats demanding a change of course in Iraq. He said he was ready for new dialogue with Democratic leaders on Iraq and expected to meet early next week with a bipartisan commission co-chaired by Bush family loyalist James Baker for recommendations on the way forward. While acknowledging Iraq policy was "not working well enough, fast enough," he insisted there would be no sudden U.S. withdrawal and stuck to his refusal to set a pullout timetable. "I recognize that many Americans voted last night to register their displeasure with the lack of progress being made there," Bush told a news conference after Democrats wrested control of the House of Representatives from his Republican Party. The outcome of Tuesday's election was widely seen as a repudiation by voters of Bush's war strategy. Bush was quick to insist, however, that Democrats themselves remained divided on their approach to Iraq and said they would now have to "make up their minds." "I can understand Americans saying, 'Come home.' But I don't know if they said: 'Come home and leave behind an Iraq that could end up being a safe haven for Al Qaeda,'" Bush said. "I don't believe they said that. And so I'm committed to victory. I'm committed to helping this country so that we can come home." Some analysts see the Baker group's findings offering a possible face-saving way for Bush to start extricating the United States from Iraq, where mounting U.S. casualties and sectarian violence have undercut American public support. But the White House has said Bush reserves the right to reject the group's proposals, which are expected to veer away from the "stay-the-course" approach the president once touted. 'CRITICAL PERIOD' The president has broad constitutional leeway to steer foreign policy, but the Democrats gain some leverage by winning control of key congressional committees with the power to conduct investigations and exercise budget oversight. Promising to lend a close ear to Democrats' concerns, Bush said his choice of former CIA Director Robert Gates as defense secretary would offer new leadership of the war effort. Calling it a "critical period in this war," he said, "Sometimes it's necessary to have a fresh perspective." Bush acknowledged things were not going as well as he wanted in Iraq but maintained the election results would not soften U.S. resolve. "The enemy is going to say, 'Well, it must mean America is going to leave.' And the answer is 'no.'"
