President Obama promised to make midcourse corrections on his domestic policies following a political shellacking in Tuesday’s elections.

Obama will be looking at how to get his presidency and domestic agenda back on track while facing the challenges of angry American voters and a more hostile Congress.

President Obama acknowledged American voters made clear their increasing frustration over the U.S. economy. He called it “healthy,” even though the Democrats lost control of the House.

Obama said there would be no retreat on expenditures for clean energy or education, but he said the election’s outcome will require him to make some mid-course adjustments. Discussions with the Republican Party will  likely determine what corrections need to be made.

Given the current political climate, Obama will have to compromise on issues like extending tax cuts for the wealthy and reducing the deficit if he hopes to make good on campaign promises made in 2008.

Still unclear, is the fate of health care reform. Republicans say they plan to wage an all out war against Obama’s healthcare overhaul. Healthcare is viewed as the primary achievement of Obama’s first two years in office and a presidential veto awaits any bill that attempts its repeal.

Republicans will try to fight the law by denying funding but an actual appeal would be unlikely unless a Republican takes over the White House in 2013.