happened is the state department has eased sanctions against american aid groups who want to help the somali famine victims. >> we're going to go to harry reid here a second. he's speaking. >> on the brink of disaster. in the end the two sides came together. that's ou hour system works. neither side got what they wanted. each side laments some of the things we had to give up, but that's the way it is. it's that way because that's how our system works. that's what compromise is all about. it was a bipartisan compromise. it wasn't the right wing cap, cut and whatever it is over there. that was not bipartisan. it's nothing that we could agree to in the therm. this agreement cuts the deficit by a trillion dollars and lays

the ground work for much more in the near future. we look forward to the work on the committee to make sure that millionaires and billionaires and corporate jet owners and people that have yachts who this benefits, oil companies who get huge tax subsidies that that in the mix of thinking what goes on, that's what this select committee is going to be about. we need to do more for families. the number one job that we have as a congress must be creating jobs for the american people. there were a a number of thins we're going to do. senator schumer is going to address that as to a jobs agenda we have. today we made sure america pays its bills. now it's time to make sure that all americans can pay theirs. senator durbin. >> with this vote 74-26 we have averted a crisis. america has avoided defaulting for the first time in our history on our national debt. the fears and concerns of

americans across the board were considered by this congress and as a result we've come together on a bipartisan basis. i did not vote for this with a great deal of enthusiasm. because the down payment on the deficit included in this bill comes primarily from working families and those who are struggling in america. if we are going to have true deficit reduction and address this debt, we have to put everything on the table and bring everyone to the table for shared sacrifice. the joint committee has a particular responsibility here called on to gather around $1 to $1.5 trillion in savings. let us make sure when we do it, we do it in a fair and just manner for all the people in america. when we return as senator schumer will spell out that we address the number one issue in america creating good paying jobs right here at home for the people who are struggling in this economy. >> well now washington, the nation, the world can breathe a

sigh of relief. the horrible crisis that would have occurred if we defaulted, the likelihood of a recession if we defaulted has been averted. but we have a lot more work to do. a lot more work to do. the bill which had things as leader reid and leader durbin mentioned had a lot of things we didn't like. it had some things we liked particularly making sure that no benefits in medicare, social security and medicaid were cut. but it's now time for congress to get back to our regularly scheduled programming. and that means jobs. while washington has been consumed with averting a default, our nation's unemployment problem has been worsening, it's time for jobs to be moved back to the front bunner. with this debt reduction package completed the decks are now cleared for a single minded

focus on jobs in september. by removing the threat of default for the next 18 months and by proving that both parties can come together to take -- to get our deficits you should control we've provided certainty to the credit markets. the debt limit agreement largely resolves the budgets for the next two years so the wrangling over spending should be greatly reduced in coming months. we now have the chance to pivot away from budget battles to jobs. we can reset the debate and that's what we intend to do. the jobs issue won't have to play second fiddle to the deficit issue anymore and that's what the american people want. the public is glad to see we've moved to reign in our deficits but now that we'll put the political premium on efforts to create jobs as democrats, that's our strong suit. our high ground. we welcome this chance to shift the playing field to jobs.

>> this was obviously a very important vote. we needed to raise the debt ceiling to avoid an economic calamity. and we needed to cut spending and start getting our deficit and debt under control. but we still have a very long, critical road ahead of us and -- >> patty murray speaking. we're awaiting now for the president to come out of the door in the oval office. with me still the group including of course the chief white house correspondent my partner chuck todd. chuck -- >> we swapped seats. >> we swapped seats as we start "andrea mitchell reports." this loose transition. we're expecting the president to come out and the president clearly this is is not a victory round. he's going to be signing a bill later today. the bill has to be signed, sealed, dlvrd, driven signed by the speaker of the house, the senate protem. he will sign it in private. no public ceremony. this is not one they're wrapping a flag around. >> your not going to see a lot

of president sometimes after a big thing like this you might see him do a bunch of tv interviews. you might see him do a bunch of -- those things are not going to happen. he's got a big fundraiser today. and his 50th birthday. here's the president right now at the podium. >> good afternoon, everybody. congress has now approved a compromise to reduce the deficit. and avert a default that would have devastated our economy. it was a long and contentious debate. i want to thank the american people for keeping up the pressure on their elected officials to put politics aside and work together for the good of the country. this compromise guarantees more than $2 trillion in deficit reconduction. it's an important -- it also allows us to keep making key investments in things like education and research that lead to new jobs. and ensures that we're not cutting too abruptly while the

economy is still fragile. this is however, just the first step. this compromise requires that both parties work together on a larger plan to cut the deficit which is important for the long-term health of our economy. and since you can't close the deficit with just spending cuts, we'll need a balanced approach. where everything's on the table. yes, that means making some adjustments to protect health care programs like medicare so they're there for future generations. it also means, reforming or tax code so that the wealthiest americans and biggest korngss pay their fair share. and it means getting rid of taxpayer subsidies to oil and gas companies and tax loopholes that help billionaires pay a lower tax rate than teachers and nurses. i've said it before. i will say it again. we can't balance the budget on the backs of the very people who have borne the biggest brunt of

this recession. we can't make it tougher for people to go to college or ask seniors to pay more for health care or ask scientists to give up on promising medical research because we couldn't close a tax shelter for the most fortunate among us. everyone has to chip in. it's only fair. that's the principle i'll be fighting for during the next phase of this process. and in the coming months, i'll continue also to fight for what the american people care most about. new jobs, higher wages, and faster economic growth. washington has been absorbed in this debate about deficits, people across the country are asking what can we do to help the father looking for work? what are we going to do for the single mom who's seen her hours cut back at the hospital? >> what are we going to do to make it easier for businesses to put up that now hiring sign? that's part of the reason that people are so frustrated with

what's been doing on in this town. in the last few months, the economy's had to absorb an earthquake in japan, the economic head winds coming from europe, the arab spring and the rile in oil prices all of which have been very challenging for the recovery. but these are things we couldn't control. our economy didn't need washington to come along with a manufactured crisis to make things worse. that was in our hands. it's pretty likely that the uncertainty surrounding the raising of the debt ceiling for both businesses and consumers has been unsettling and just one more impediment to the full recovery that we need. it was something that we could have avoided entirely. so, voters may have chosen divided government, but they sure didn't vote for dysfunctional government. they want us to solve problems. they want us to get this economy growing anded aing jobs.

while deficit reduction is part of that agenda, it is not the whole agenda. growing the economy isn't just about cutting spending. it's not about rolling back regulations that protect our air and water and keep our people safe. that's not how we're going to get past this recession. we're going to have to do more than that. that's why when congress gets back from recess, i will urge them to immediately take some steps bipartisan kmongs steps that will make a difference. they will create a climate where businesses can hire where folks have more money in their pockets to spend. where people who are out of work can find good jobs. we need to begin by extending tax cuts for middle class families. so that you have more money in your paychecks next year. if you've got more money in your paycheck, you're more likely to spend it. that means small businesses and

medium sized businesses and large businesses will all have more customers. that means they'll be in a better position to hire. and while we're at it, we need to make sure that millions of workers who are still pounding the pavement looking for jobs to support their families are not denied needed unemployment benefits. through patent reform we can cut the red tape that stops too many inventors and entrepreneurs from quickly turning new ideas into thriving businesses which holds our whole economy back. i want congress to pass a set of trade deals. deals we've already negotiated that would help displaced workers looking for new jobs and would allow our businesses to sell more products in country in asia and south america. products that are stamped with the words made in america. we also need to get more opportunities to all those construction workers out there who lost that you are jobs when the housing boom went bust. we could put them to work right now by giving loans to private

companies that want to repair our roads and bridges and airports. rebuilding our infrastructure. we have workers who need jobs and a country that needs rebuilding. an infrastructure bank would help us put them together. and while we're on the topic of infrastructure, there's another stalemate in congress right now involving our aviation industry which has stalled airport construction projects all around the country. and put the jobs of tens of thousands of construction workers and others at risk. because of politics. it's another washington inflicted wound on america and congress needs to break that impasse now. hopefully before the senate adjourns so these folks can get back to work. these are some of the things that we could be doing right now. there's no reason for congress not to send me those bills so i can sign them into law right away as soon as they get back

from recess. both parties share power in washington. both parties need to take responsibility for improving this economy. it's not a democratic responsibility or a republican responsibility. it is our collective responsibility as americans. i'll be discussing additional ideas in the weeks ahead to help companies hire, invest and expand. so, we've seen in the past few days that washington has the ability to focus when there's a timer ticking down and a looming disaster. it shouldn't take the risk of default, the risk of economic catastrophe to get folks in this town to work together and do their jobs. because there's already a quiet crisis going on in the lives of a lot of families in a lot of communities all across the country. they're looking for work and they have been for a while. or they're making do with fewer

hours or customers. or they're just trying to make ends meet. that ought to compel washington to cooperate. that ought to compel washington to compromise. and it ought to compel washington to act. that ought to be enough to get all of us in this town to do the jobs we were sent here to do. we've got to do everything in our power to grow this economy and put america back to work. that's what i intend to do, and i'm looking forward to working with congress to make it happen. thanks very much, everybody. >> the president in the rose garden saying that this -- that the people may have voted for divided government, but surely they did not vote for dysfunctional government. still with me our chief white house correspondent and host of "the daily rundown" chuck todd. also msnbc contributor and former republican national chairman michael steele. michael, to you in terms of the president's response to this vote, clearly a big vote in the

senate. he now has the bill. the bill's on its way. he's going to sign it, but not with a public ceremony. >> no. i think he wanted to downplay that as much as possible to show sort of the seriousness of the moment in recognizing that it took a lot of hard work to get to this point. you know, andrea, i'm all about giving the president the benefit of the doubt, but i'm running out of benefit and left with a lot of doubt. i still don't understand why this president refuses to lead in moments like this to come out with bolder statements to lay out a clear agenda, to give the congress direction of where he wants them to go. not sit back and wait for them to tell him where they think they need to go or where we should go. it is a stunning admission, at least for me that they really want to give all of this and put it on the congressional plate and sort of have clean hands. and you can't. this is a messy proposition.

it's going to take a lot of elbow grease and personal relationships to really move this agenda forward. i just don't see this happening with what i heard from the president just now. >> chuck todd, how much is this rather than a victory lap a moment tory assess and figure out how they do plan to go forward? >> well, look, this is a pivot. you heard the president -- >> jobs, jobs, jobs. >> in the middle of the speech talk about a few things the congress can do. this is the last congressional battle before november 2012. let's be realistic. we're not going to have a bug showdown going forward after this. this is really going to be a few incremental things, the trade agreements, we'll see what happens on the transportation bill. it was a pivot moment. this it goes back to they believe they won the argument with independents. that they believe the president is more reasonable on this. is president is the reasonable guy in the room. the question is how many hits

did they take on this issue is the question we ask on the leadership question. i think they know they toque a hit a little bit. every tie you uh-huh you get dragged into a congressional fight you only go lower. the only chance of winning a fight with congress or winning those things is when it's completely the opposite party. in this case it never was. president's never been able to veto a bill because the democratic senate is not going to be send him something. he didn't have the luxury that a ronald reagan had. >> of running against congress. >> in the last two years when he got to veto something. he didn't have that luxury that bill clinton had. >> and joining us now is north dakota republican senator john hoeben who voted yes in favor of the bill. senator, first, explain your vote. >> thanks for inviting me to be with you. this is an important step forward. this is the first step we've

said for any increase in the debt ceiling we've got to have safings. we've got to have reduction to get our financial situation, our fiscal house back in order to get on top of the deficit and debt. very important step forward. more work to do. at the same time we do have to focus on growing this economy, stimulating private investment and job creation. >> now you're a former governor and you know the impact this is going to have on the states. i want to ask something about what lindsey graham told chuck and i a bit ago. he said that he sees a shift, a philosophical shift in the republican party against support for the armed services against defense spending. his concern for the trig ere is it really would place huge burdens on defense and that he is less eager to take that hard and fast no tax pledge. he sees ways where loopholes could be closed. where do you come down on that?

if you had to make the tough choice between defense spending and being rigid on the tax front where would you vote? >> i'm new to washington, but i was a governor for ten years. i'm a very strong supporter of our military. the point is we get some savings up front. now we have a committee, six senators, six members of the house go to work. they're going to look for additional savings. if they don't get into the real reforms, whether we look at tax reform, entitlement reform. if they don't get into these issues then we've got the automatic cuts. the point is nobody likes the automatic cuts. the point is they need to get to a product that we can bring back to the house and senate and have a straight up or down vote. find ways to not only get everybody involved. find real ereal eductions but also reform that helps us solve the deficit and debt over time at the same time we work to grow this economy. that's the hard work that has to be done. that's what we're responsible to get done for the american

people. >> john hoeven a freshman senator from north dakota and a long time governor. thanks for joining us today. >> thank you, andrea. >> the congressional black caucus was against the last-minute compromise in theory. but their members divided their votes pennsylvania democratic congressman joins us now. congressman thanks for joining us. you were one who voted for it. 2 the voted against it of the congressional black caucus. >> democrats in the house 95 voted for it, 95 voted against it. this is an enigma wrapped up in a mystery. on one hand we said $900 billion in cuts. in truth discretion their spending is going to go up $830 billion. it's a reduction in the increases. you look at just the next year alone there's about a dlshs 7 to $20 billion cut depending on how you want to read it. we know something about where we have to go as a country. all this talk about a balanced budget is wonderful. it doesn't really represent our

great heritage as a nation. we want to lead the world. we have to have a budget that is a tool to help america continue to lead the world. provide -- have the strongest, wealthiest economy which we have today. have the strongest most sophisticated and capable military which we have today. the greatest leadership in science and innovation and technology. but all of our advantages are now relative. not absolute. we as national leaders have to come together and stop talking about this as a test in math. you can read this bill any number of different ways. i heard my great friend lipd see say he wants us to spend more money on defense, more money on foreign aid. spend more money helping egypt. what we have to do here as democrats, as republicans put it aside a little bit. think about what the nation needs. >> it's a matter of priority and congressman, i don't want to interrupt you, but your leader the democratic leader nancy pelosi is speaking right now. let's pause and have a listen.

>> the republicans did not have the votes to pass. i'm proud of my members that they took the step to pull us from the brink of default even though they did not -- were not happy about the legislation. but what was good about it was it's over and now it's time to talk about jobs and the person who has been a leader and beating the drum for make it in america, he'll tell you more about it, our distinguished whip, mr. hoyer. >> thank you very much, madam leader. let me suggest at the outset that talking about jobs -- >> the democratic leaders talking about jobs. they have clearly tried to change the conversation. let me bring in brian williams, of course the managing editor of "nbc nightly news." you've spent yers on the hill certainly in the last week you've been there nonstop. is this the end of beginning of the new phase. >> i was so worried you were

going to ask me how i'm voted on this thing. >> i know you have floor privileges. >> i've been going through the senate tally sheet. while i was on the air, i don't know if you made this point, those folks in jersey, south carolina, alabama and oklahoma straight shut out, both senators voting no. i fear for the next chapter because as you and i have spoken about andrea in the last couple of days what a terrible cap ter we've just been through. our friends at the pew research survey research 2% of respondents say this has been a good thing for the united states. if you look at the mail, email, twitter feeds anywhere, you will see the toxicity right now. remember with recesses coming up with thought last summer was boisterous at town meetings and public gatherings. boy, it's going to be a hot summer recess for a lot of members of congress. so, as i said to senator reid,

the majority leader during our wednesday on the hill, andrea, it's almost like the language of addiction and intervention. you can't keep doing this, we, the citizens of the united states can't keep doing this. and when are behavior patterns going to change. we joked about journalists not voting on this stuff. luckily we don't have to. luckily we do have people in these jobs. we just stand back and take a look at it and report it to folks. i don't know how historians are going to label this era. that's the great thing about historians. they get time to look back. >> that's the bad thing in some ways of all the technology and all the instain tanous communication that we have now. these folks the men and women on the hill have no time to think because there is so much that is hammered down on nem. the president today calling out keep up your messages. they will go home and face their

constituents. those town meetings are likely to be more hostile than they were if we can predict last year when they were debating health care. one wonders how are they going to come back and be equipped to face the problems as these supercommittees are appointed? they're already arguing over what brand of pro or anti tax senator can be appointed to make it balanced. >> the president has his fight on. his talking points are set. there are going to be people campaigning for the poor who have very few lobbists in washington against cuts in that community. people really campaigning for wealthier americans to give more of their fair share. and you and i both know the force is set up to push back on taxes -- the new word for them is revenue. here you go. it's all laid out in front of us. >> brian, before i let you go,

you spent so much time in tucson, you really bonded with the community there in the aftermath of the entourage ji january 8th. i wanted to ask you, your individual response. in your opinion the middle of the broadcast when we all heard those cheers on the house floor and saw this woman standing and the tears of her colleagues. it's a moment i'll never forget in just witnessing it. >> it was absolutely chilling looking at vasquez, debbie wasserman schultz in tears off to the side. the hugh from john lewis. i was thinking last night i would have loved to have been in tucson, arizona, last night to share in what had to be the joy of seeing -- there's a bunch of medical professionals who tell you this scene was just flat out impossible but for a few millimeters it would have gone a different way. and this the just the start. everyone on her team has known she's in for a long fight. no one would have bet on that scenario happening last night. we needed a little wave, a

ripple of pure joy. and for one brief shining moment applause filled the house floor. >> and that was it. i know that lee cowan our friends and colleague is going to be reporting from sue son on "nbc nightly news" tonight with you. we will hear the responses there's a lot of joy in arizona. thank you, brian williams, we will see you throughout the day. and now to david gregory. of course the host of "meet the press." david, you've been watching all of these goings on for so long. the last 24 hours has just been an emotional roller coaster. >> i just think that's striking to bill on what brian is saying there's no break here. crisis averted and now we're on to more fighting. the president really laid it out. i was reminded of the president's remarks back in april when the government shut down was averted the president appeared with washington monument behind him and he visited the lincoln memorial, the jefferson memorial later that day and met with kids.

he said this is a good thing. the leaders compromised and washington did a good thing. first of all it was debatable it was a good thing then. and certainly here there's no sense we all came together. this wasn't so much compromise as some way to end the standoff that left nobody happy. and leaves in place huge idealogical differences about the role of govts, the role of taxes. the liberty to tax more, tax less or to cut entitlement programs as the debt is still very, very large. and at the same time, deal with the fact while this drama was playing out that washington created as the president acknowledged the economy is in deep, deep distress, unemployment is very high. there are questions if cutting the deficit to this extent will make economic growth worse. there's a great deal of uncertainty. you have anger and cynicism and pessimism about government

combined with real anxiety about where things go from here and now we move into the next stage of this debate over continuing to raise the debt ceiling and how you get into the political cycle as well with the presidential campaign. it makes for more dysfunction which is what the president said the american people don't want. >> david gregory all good points. we're going to have a jobs report on friday. and more news that we can't predict on the economic front. david gregory thank you very much. >> thanks, andrea. >> the congressional black caucus called on its members to stand against the debt bill and force more republicans to vote yes. the final vote in the house yesterday fractured that group. elijah cummings is a member of the congressional black caucus and was a no vote on the bill. congressman great to see you. earlier i was talking to chuck fattah from philadelphia. there were 22 no votes and ten yes votes among the caucus

members. another division among the progressive caucus and hispanic caucus. there was more anger on if left side of the equation than tea party conservatives. explain your vote and why you were so strongly against it. >> i was strongly against it some of the things just said by brian, we've got a situation here where as i see it, i don't think one penny is going to come from revenue. i think the american people want a balance in this situation. and they did not get it the republicans keep talking about what it was that the voters voted for in november. they voted for us to work together. we said no compromise here. the other thing i'm concerned about are the many people who are going to suffer because of these cuts. we've already got an unemployment rate of in the black community of 16.1%, 9.2%

in the overall community. that's a problem. those numbers are growing. this deal does not help that situation at all. i was glad to hear my good friend and i'm one of his number one supporters the president say that we are now going to take the time to address this jobs issue. this jobs issue is very, very important. and i'm hoping that we can concentrate on it. the other thing that i want to make clear is that in a time that we spend arguing over what i think was a manufactured issue, a problem the people are suffering. every single day. when i walked into the studio today i ran into five people within a block that said cummings, i need a job. i haven't worked in months. we've got these unemployment benefits about to towards the end of the year, they're going to run out. what's going to happen to those

folks where we have a client where they're spending less. jobs are going away on the state level, the local level and a lot of other private entities will be shedding jobs. we have a lot to work on. i'm hoping that we can come together and zero in on helping people get jobs. >> in the minute we've got left, congressman, i don't know how that happens. the result of this agreement and others down the road as we get to the second cut of this is going to be less money on the discretionary side, where are you going to find the money for any kind of jobs program. there's no stimulus in this. you're looking to economic growth and look at the revised gdp numbers? >> it's going to be very difficult. that's -- you're stating what i'm saying. i think the president with this tax holiday extension i think that's going to be helpful. we've got to try to say to businesses, look, we want you to start hiring. we've got to create an environment that people want to go out and buy. part of this is consumer

confidence. that's another problem that was created by this fiasco we just went through. >> and the president made the point that uncertainty could have contributed to all of this. elijah cummings thank you so much. good to see you today from baltimore. >> from your home district. >> thank you very much. and we'll be back after these messages. you're watching "andrea mitchell reports" and our continuing live coverage of the decisions on the debt ceiling compromise approved today pending for the signature of the president. we'll be back in a moment. ♪ let me entertain you

♪ let me make you smile ♪ let me do a few tricks ♪ some old and then some new tricks ♪ ♪ i'm very versatile ♪ so let me entertain you ♪ and we'll have a real good time ♪ [ male announcer ] with beats audio and flash, you can experience richer music and download movies straight to the new hp touchpad with webos. lawmakers are headed back to their districts after passing the $2.5 trillion in debt reduction in law. even with that deal, the frat debit isn't going away. it's expected to rise between $7.7 and $8. trillion over the next decade. are laims taking the problem

seriously enough? we have the president of the committee for a federal responsible budget. david walker is president of the come back america initiative. i'm told by some experts that we are seriously unestimating the debt to come. the revenues are slow. even in the near term, i'm not talking about the baby boomer effect down the road a tech dade, two decades from now that we're immediately going to feel a much bigger deficit. so they have not even done the dollar for dollar debt reduction that they claim they have. >> no, i fear you're right. now it's looking like the economy is weaker than we had been predicting and there's a lot of soft spots. growth is going the be below where we're expecting. we're met with the fact that this deal isn't big enough to deal with the challenges we have anyhow. and the challenges are going to be larger and this deal's not

going to get us as close to beginning to move to the finish line as we need to be. we're getting hit with a lot of things at one time. >> david walker, the enforcement is tough. we heard lindsey graham talk about a philosophical shift in the republican party, which has takentous the point where taxes are more to be feared than the commitment to defense spending. do you see this new supercommittee deadlocking and eventually being faced with this trigger? >> well i'm cautiously optimistic they'll be able to come up with $1.2 to $1.5 trillion. >> bracecally that would be the biden savings what has been worked on by biden and bowels-simpson. >> i don't think they're going to end up making the tough choices with comprehensive tax reforms. i was on the defense business board as an exofficial member for over asian years. there's plenty of opportunities to cut the defense spending without compromising national

security. our problem is primarily a spending problem, we need to engage in comp menacive tax reforms to generate revenues. that's just a fact. >> one of things i think i heard is that foreign affairs -- state department appropriations and some other foreign aid issues have been thrown in with defense into this pot. a all of that is at risk as well at a time we're seeing dramatic changes around the world. >> when we look at what we do face in the near term, the other thing is some of the initial savings of the $900 billion are back loaded. lawrence odom was reporting that only $22 billion is really to be taken out of the budget upfront. perhaps that's a good thing with the shape of the economy. >> it's an interesting challenge. there's not a lot of big savings up front. if you want to let the economy to have room to recovery. that is indeed what you want to do. only if it's paired with large and credible savings in the back end and the middle end.

and because this deal really is the lowest of the hanging fruit. it's not required to deal with fundamental entitlement reform, it's not required to overhaul the tax system. all the things we need to do to fix the situation. yost not a big enough deal, we missed the target. while it probably won't derail the economy in the short run, it won't do enough to re-assure the economy that we have some stability with getting rid of the debt overhang and that would help growth in the long-term, but we fall short of that mark. >> are we likely to be downgraded. >> there is a risk. this was a very modest first step on a very long and challenging road to restore fiscal sanity. it's well short of the $4 trillion. we need to do a lot more than this. it's probably unfortunately not until after the election before you get the major reforms that are necessary to stimulate the economy, and get employment going. >> thank you very much. and we're going to move from strength to strength.

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anniversary, sunday, september 11th, the president and mrs. obama will be making three stops to honor those who were lost. they will go to lower manhattan to ground zero where they will be joined by the former presidents in a ceremony that michael bloomberg has said will be nonpolitical. no speeches, just the commemoration and the reading of the names. they will also go to pennsylvania and the president and mrs. obama will go to the pentagon. we'll be right back.

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. the $2 trillion in deficit reduction. it's an important first step to ensuring that as a nation we leave within our means. yet it also allows us to keep making key investments in things like education and research that lead to new jobs and assures that we're not cuting too abruptly while the economy is still fragile.

>> the fight over the debt ceiling may be over for now, maybe just for today. that doesn't mean we have dealt with the debt. the big question as we look at the debt clock on wall street is the economy. the latest gdp numbers showing a significant softening of the recovery and a deficit of jobs with new numbers expected on friday. cnbc senior economics report steve liesman joins me now. your immediate reaction to finally resolving this which gives some certainty to people, but how far is it resolved? this committee has to report back by thanksgiving and they could stalemate and there could be a christmas crunch. >> i think we've removed two significant negatives from the economy. the first is that we've gotten -- we've escaped the immediate issue of default which many people thought would be financially catastrophic for the country. the second thing is i think this deal goes away to kind of

removing the future use of the debt ceiling as kind of a tool that can be used by certain members of congress to force additional dissional spending cuts, and that may be a negative thing, but as far as i think that the market is concern and the idea that we won't go through this again is probably helpful. nobd, we haven't done anything particularly positive for the economy and we have not solved the long-term debt problem and solved the issue of sbit almoens and medicare and social security which are two significant drags on the economy, and we have to come back in november to have the super committee to make additional decisions about the spending cuts. the president is right that we have avoided significant declines in spending that would hurt the economy in terms of back end loading this, but we have significant debate to be had in the country. >> and what about a significant downgrade?

b ba barclay's was warning there could be a significant downgrade, but they released a note. >> and we did get news this hour that fitch said that the debt ceiling deal is commensurate with the united states maintaining its aaa rating. that happened right around -- >> that is news. >> that -- sorry? >> that is news indeed while we are on the air. >> and just in the last hour fitch has come out and we are it wag for s&p, standard & poor's which is the most aggressive of the rating agencies and threatening downgrade unless $4 trillion and depending how you count this, is s&p significantly assuaged by the idea this is a down payment on the future deficit and other ftax reform ad

other revenue measures that might lead to greater savings over time. >> what about the outlook of jobs? because the president immediately pivoted to jobs, and many would say that is a political statement, and nancy pelosi had a news conference on this very subject that they have to address the jobs crisis which is political and economic problem. the jobs numbers are going to come out on friday and impossible to predict at this stage, but we have seen a significant softening of the economy this the summer months. >> right. if you look at a what is happening with the market today, you can see that it sold ought a reasonably significantly and on the day of the negative was removed from the economy of the potential default that the market would rally, and in fact, fell off some 500 or 600 points in this debate, but really what has happened now, andrea, as you suggested, that the market has turned from debt ceiling to the economy, and it does not like what it sees. it sees the soften manage the first and the second quarter and the downward revisions in the first quarter and looking for 100,000 jobs to be created

friday. that is not enough. right now, what we need to see is significant pickup in the economy for the markets to believe in the future and future earnings of corporations right now, and i think that at least the good part is that the market's attention is focused back where it belongs, and in many respects the debt ceiling debate was a manmade, artificial crisis, but right now the significant crisis is jobs and the economy. >> thank you, steve liesman. we will have a lot to talk about in the weeks and months to come. thank you from cnbc. and what political headlines will be making news in the next 24 hours? c cnn political contributor clis sl -- chris cillizza, looking at how many of the senators voted and they are facing primaries

down the road and the politics of the states? >> yes, andrea. any time you have as high profile and protracted debate over the last few months, and even when it gets solved and that is in quotes, there is going to be a long-lasting political impact to assess. i think that you saw a lot of votes today as you mentioned keeping an eye on the primaries, and i heard you and chuck talking about kirsten gillibrand protecting the left flank and lindsey graham protecting his right flank and opposing and orrin hatch protecting the flank as well as he is up for vote in 2012. and we look at t.a.r.p. as a vote that defines in some ways how you view the government and how you view that the government should be doing, and it is a vote that opponents tom so m s the people voted no will bring up, but we have not heard the last of the vote on the campaign trail, and now everything

switches from congress to campaign. both 2012 presidential as well as house, senate races where these people are on record now with this vote. >> right. >> it is going to be a fascinating next 14 months or so. >> we will have to see what kind of town meetings ensue in august as well, an u how much shg, an beating the members of congress take. if we think that the debt ceiling has separated from further encumbrances, hasn't the tea party learned and the activists learned that they can attach anything to anything? and that there are must-pass measures and ki thii can think continuing resolutions and things of that like that will be attached with a balanced budget amendment or something else. they have figured out, haven't they, the power of the smaller caucus. we will have follow that up, chris. >> absolutely. and you are right is the short answer. >> and the short answer and long question. thank you, chris. >> thank you. >> it has been that kind of day.

that does it for us for this edition of "andrea mitchell reports." we will have it all tomorrow on the show, and chris cillizza will be back and charlie cook, the editor of the cook report, and our crack capitol hill team to follow it all. remember to follow the show online and on twitter at mitchell reports. my colleague richard lui is in for my colleague tamron hall, and he has a look at "newsnation." richard? >> well, thank you. next hour, we are following the developments in washington as the senate passed an emergency bill to prevent government default, and president obama saying it is the first step and more needs to be done. senator ben cardin who voted for that bill joins us live. and plus, we will get the latest on the tropical storm emily's track and find out what is in store for the united states. "newsnation" is minutes away. specialists, lots of doctors, lots of advice... and my hands were full. i couldn't sort through it all. with unitedhealthcare, it's different. we have access to great specialists, and our pediatrician gets all the information. everyone works as a team.

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hi, i'm richard lui in for tamron hall. done deal, the "newsnation" is following the critical passage of the debt ceiling, and averting a