obama renewed his term after the financial crisis. her approach to monetary policy is considered more progressive than his. she has a ph.d. in economics and led the federal reserve of san francisco and served as economic adviser to bill clinton. the markets have generally seen yellen as a dose of reassurance during a time of serious economic uncertainty with the shutdown and the debt ceiling and that is why we're seeing some stocks stabilize following several days of losses. we have this covered from all angles, kristen welker is at the white house, and luke russert from the senate where yellen will have to be confirmed and tyler majson has his sieyes on e street. kristen, we'll start with you. >> the markets are responding favorably to the president's announcement today that he'll be nominating janet yellen. she would be the first woman to become the fed chair. she's also a familiar face to

the markets as you point out. she's currently number two at the fed. it's expected that she'll likely continue with what we have seen from bernanke, keeping interest rates low continuing with a bond buying program. the big question from her, if she does get the greenlight, when will she scale back the bond buying program. she's no stranger to the fed or to washington. she was a part of the counsel of economic advisers under clinton. and by the way, she will become the first democrat since paul volcker if she is confirmed. will she be confirmed? john cornyn the number two in the senate expressing reservations about her. it's expected that she will get the nod, that she will get enough votes to move forward. as we have seen, of course with this government shutdown, nothing is easy here. so i anticipate there will be to some extent a lot of discussion,

a lot of back and forth about her nomination. but it is expected to ultimately she will get confirmed and luke russert will have a lot more on that. luke? >> yes, indeed, kristen, sort of to echo your own comments from folks i've spoken to on capitol hill, they do expect mrs. yellen to get confirmed here. the senate banking chairman and senator johnson of south dakota was pleased with her nomination and reports he's a democrat and chuck schumer said she should pass by a wide margin. a few republicans said there certainly are reservations because of her democratic background. they are going to take a closer look at her. but because of her relationship with ben bernanke, generally well liked on capitol hill, it expected she should fly through smoothly. as to aei, one of the lead columnists, i was steered to his column by a few republicans and

this lays out a whole list as to why she should not filibuster and hold her up. because she's going to come through on hearings as a kind and humble person and it would look really bad if republicans were trying to take out the first female chairman of the federal reserve. it's quite a historic thing coming from the university of california at berkeley, becoming chairman of the federal reserve, if they were to try to take her out, that could be bad politics. lastly, the one thing that should help her more than anything else is this idea she's not a fan of high inflation and will continue this ability to keep the economy going with the low interest rates. that is something which we have seen get bipartisan support especially behind closed doors with the folks who make the most important decisions on that. i'll go to take letter at cnbc. >> luke, thank you very much. pej koouk is perfectly. miss yellen's appointment which we're expected to see here in minutes is widely cheered on wall street.

i'm a little hesitant to say the rally is a yellen rally but it didn't hurt. she is widely perceived to be an individual who backs the aggressive bond buying that has been pioneered by chairman bernake that helped wall street and stock and other asset values. his policies have generally been regarded as favorable towards wall street and she's considered to be in line, more concerned if you have to weigh the two, between keeping the economy growing and expanding rather than fighting inflation. that other side of the coin is where republicans might take some whacks at her because they believe the continued monetary stimulus or pushing money into the system is ultimately destructive to the value of the dollar. and on wall street she's generally regarded very

favorably and i agree with each of you in saying that the view here is that she will be confirmed probably by a wide margin but that the hearings will have their moments where some people will take the pounds of flesh that you might expect in this rather toxic political environment. back to you. >> tyler, thank you. we are of course sitting here waiting for the president's announcement any moment there in the room. you can see jack lew in the first row and people waiting on this. now we want to bring in democratic senator sherrod brown who serves on the banking committee. he also had a letter endorsing yellen signed by a third of democratic senators this summer. it was a fairly unprecedented step of senators directly lobbying for a fed chair nominee. thanks for being with us today. >> glad to be with you. thanks. >> let me ask you two sides of this right out the gate. why did you feel this was the right nominee for jobs and economic recovery in this country? and two, if you could, senator, please speak to the criticism

that some senators, including yourself, are getting too involved in a political engagement on the fed, which as we know traditionally supposed to be independent with regard to monetary policy. >> i don't think there was any moving towards ticking away the president's choices to make in terms of appointing a fed chair or any way were we anything but interested in a independent fed chair. where this came from is janet yellen's vice chair now with bernanke, she understands continuity and does something that's unusual in fed chair. that is her prospective fed chair, she talks more about the real economy. understanding the fed chair's responsibility is dealing with keeping inflation down and dealing with full employment, the balance at the fed is -- historically been more interested in keeping inflation down than full employment. she's going to right that

balance in a way that as she talks about the real economy, she speaks to the issue of job creation. so many of our problems are budget problems and problems in neighborhoods and problems with foreclosure and problems with all kinds of things are that there's not the type of job creation in this the country that we want and need. i think a potential chair woman bernanke -- yellen will help us and take us in the right direction. >> that's absolutely timistic a choice. she said maximum employment is the main goal of the fed. at a moment we're at a 63% participation rate. we need somebody at the fed who understands the importance of getting more people to work. >> she really understands and you don't hear people in these positions talk that way often. she understands what it means for somebody to get a job and what it means to their family and their stability of their neighborhood and paying taxes

into the local school district. in all of those things that flow from a more full employment economy, something we have not seen much interest in the fed. chairman bernanke has done a decent job, better than some. but i think she'll step that up a little bit. i think that the fact is she'll be the first woman in the nation's history is a good thing. i think there are many reasons she'll be a good chair. i expect the banking committee to give her a rough time because it always does, that's our jobs i guess. but i expect her to be confirmed and to have a good, long positive tenure as chair of the federal reserve. >> i want to remind viewers we're waiting for president obama to come announce his nomination. janet yellen, for the next fed chair. i want to ask about the senate hearing, it seems like she will get through. but given the fact you have ted cruz, you have rand paul, who will likely make it more difficult and folks like corker who are undecided.

>> >> senator corker, we work on all issues together, he has stated -- he's a bit dissatisfied with her. i won't put words in his mouth. he voted against her before. i don't see any kind of widespread republican opposition. i think they would be a little bit embarrassed to do that when no federal appointment for the fed chairmanship has gotten more than 30 negative votes ever. i think that republicans make this into an issue just really underscores how personal they've made politics in what they've done with shutting down the government and not wanting to threatening not to pay our bills and o appointsing somebody because it's an an obama appointee doesn't look good for them. they are going to mature more and be a little more mature and confirm her with opposition and negative talk but it won't be a terrible situation. >> i certainly hope you're right. we are in sort of unchartered

territory. one of the things that i find ironic about the situation here and what abby is alluding to, it tends to be folks on the right more skeptical of the role of the fed in our economy. yet by their actions, by obstructing congress's ability to do anything to help the job situation in this country, they have actually made the fed chair a much more powerful position. >> they really have. interesting the word uncertainty because the criticism i've heard most of democratic governance since 2009 is the uncertainty hanging over the economy, what happens with the health care law and dodd frank. the worst most palpable kind of uncertainty is what they've created by shutting the government down and they've created both in 2011, leading up to the potential -- to the debt ceiling leading up to potential default and then doing it again, we know what happens to the economy. people don't invest, small businesses and businesses of all

kinds don't invest when they are that uncertain. they don't no what idiotic thing people in washington might do in terms of shutting the government down. getting past this will matter. the confidence that fortunately wall street and i've had my differences with them, but also main street will have in janet yellen, couple that with finally getting through this government shutdown and debt ceiling disaster that could be looming, i think will give the economy more confidence and we'll do better. >> you mentioned that the debt ceiling standoff and senator, one of the reasons that senators like yourself are typically considered more important than members of the house is not only that you represent a full state, but it's also the upper chamber that's being seen as a more serious and responsibility legs irveg body in many ways. how do you feel watching this many of your republican colleagues seeming to go the way of the house and go on record with a threat on the debt ceiling that within relatively recent history they all said was not the way to do business

responsibly. >> it's a bit misty fiing to me. one of the things i've done the last couple of days. i talked to probably 30 bankers in ohio, community banks and regional banks, good mix of people, mostly republicans who are conservative and overwhelmingly they are mystified by this behavior, one shutting the government down and second, threats not to pay our debts as a country, debts that the congress of the united states ran up. third, that they are now saying if we default it's not a big deal. they are incredulous, bankers of all political stripes are inkred house with that type of behavior. all of us represent a broader array of people and interests and businesses and regions would put that behind him and start acting like we should. >> senator sherrod brown, thanks for your time.

you know what else? we have the browns and bengals doing well right now? >> yeah. >> good time for ohio football. >> thanks. >> let's bring in rob cox, an old, old friend of the show. a lot of people will make a lot about this being the first woman to head the fed. that is extraordinarily important in terms of breaking glass ceilings and to young women in this country, but perhaps the way she will perform the job, this is going to be the first democrat to helm the fed in 30 years. >> i mean, not since tall paul have we had a democrat in that office. but janet yellen is eminently qualified. s it is incredibly important she is the first female, but she's not in that position because she's a woman. she's incredibly qualified and she's the right person for the job. in so many ways, one of them is

i look at it, she's been part of the policy that we now have, bernanke's policy, she kind of owns it. it's a good thing to have someone in there who kind of owns it. i know there's an argument if someone doesn't own it, they'll be quicker to drop it should it not be working. i think this is the continuity is good. it's why the president put this out today, yesterday we saw t bills go crazy and the market was getting jiterring and we move the cycle back to something positive and that's probably also good. the other thing i think is most important about this and senator brown touched on it, this is a real win for fed independence, for central bank independence. actually, janette yegenera jane one the body wanted. she got the job despite there was -- we got there through a lot of political wrangling but in the end the fed's choice won, not the president's.

in a sense you could say this was a win for central bank independence which is critically important. >> actually rob, what is remarkable about her, she's somewhat of a consensus pick. wall street seems happy with her and labor seems happy with her and senator brown very happy with the choice. and as you're pointing out the federal reserve internally excited about this choice. but also as you're saying she's qualified -- we have the president coming out. we'll go to him now live. >> have a seat, everybody, good afternoon. over the past five years america has fought its way back from the worst recession since the great depression. we passed historic reforms to prevent another crisis and to protect consumers. over the past three and a half years our businesses have created 7.5 million new jobs. our housing market is

rebounding, manufacturing is growing, and the auto industry has come roaring back and since i took office we've cut the deficit in half. now, i think everybody understands we've still got a lot of work to do to rebuild the middle class but we've made progress and we shouldn't do anything to threaten that progress for these hard gains have made a difference to millions of americans. and in part we can thank the extraordinary grit and resilience of the american people and in part we can thank the dinahism of our -- a lot has done with creating more jobs and more growth. and the federal reserve under the strong leadership of ben bernanke. he has led the fed through some of the daunting economic challenges of our lifetime.

he intends to finish his service at chairman at the end of his term, this january. so today i just want to take a minute to the pay tribute to ben for his extraordinary service. but i also want to announce my choice for the next chair of the federal reserve. one of the nation's for most economists and policy makers, current vice chairman, janet yellen. after i became president, i was proud to nominate ben for a second term. and while the fed and must always be independent, i want you to know, ben, i'm personally very grateful to you for being such a strong partner in helping america recover from recession. perhaps it's no surprise as the son of a pharmacist and school teacher that ben bernanke is the ee pit mee of calm. he's been a voice of wisdom, and a steady hand. at the same time, when faced with potential global economic

meltdown, he has displayed tremendous courage and creativity and took bold action that was taken to avert a recession and stabilize financial markets and shore up our banks and get credit flowing again. all of this made a profound difference in the lives of millions of americans. a lot of people aren't necessarily sure what the chairman of the federal reserve does, but thanks to this man to the left of me, more families are able to afford their own home and more small businesses are able to get loans to expand and hire workers. more folks can pay their mortgages and car loans. it's meant more growth and more jobs. and i'd add with his commitment to greater transparency and clarity, he's also allowed us to better understand the work of the fed. you know, ben has led a new era of fed speak and been a little more clear about how the system

works and that is good for our democracy. and i have to tell you as i travel around the world, the job of the fed chair is not just our top monetary policy maker, the world looks to the american fed chair for leadership and guidance. and the degree to which ben is admired and respected and the degree to which central bankers all across the world look to him for sound advice and smart policy making is remarkable. he has truly been a stabilizing force not just for our country but the entire world. i could not be more grateful for his extraordinary service. to you and your wife, anna, and your children, joel and alyssa, i want to thank you for your outstanding service. thank you so much.

[ applause ] as i've said the decision on who will succeed ben is one of the most important economic decisions i'll make as president, one of the most important appointments any president can make because the chair of the fed is one of the most important policy makers in the world. next chair will help guide our economy after i've left office. i've considered a lot of factors, foremost among them is an understanding of the dual mandate, sound monetary policy to make sure we keep inflation in check, but also, increasing employment, and creating jobs, which remains our most important economic challenge right now. and i've found these qualities in janet yellen. she's a proven leader. and she's tough. not just because she's from

brooklyn. janet is exceptionally well qualified for this role. she served in leadership positions at the fed for more than a decade. as vice chair for the past three years, she's been exem particularry and driving force to help boost economic recovery. she is renoned for her good judgment and sounded the alarm early about the housing bubble and the risks of a major recession. she doesn't have a crystal ball. when she does have a keen understanding how markets and the economy work, not just in theory but in the real world. she calls it like she sees it. janet knows how to build consensus and listens to competing views and brings people together around a common goal. she's the kind of person who makes everybody around her better. not surprisingly she's held in high he is steam by colleagues around the world who look to the united states and the fed for

leadership. janet is committed to both sides of the fed's dual mandate and understands the necessity where we protect consumers to ensure no institution is too big to fail and to make sure taxpayers are never again left holding the bag because of mistakes of the reckless few. at the same time, she's committed to increasing employment and understands the human costs when americans can't find a job. she said before these are not just statistics to me, the toll is simply terrible on mental and physical health of workers on their marriages and children. so janet understands this and america's workers and families will have a champion in janet yellen. so janet, i thank you for taking on this new assignment. and give the urgent economic challenges facing our nation, i urge the senate to confirm janet without delay. i'm absolutely confident that

she will be an exceptional chair of the federal reserve. i should add that she'll be first woman to lead the fed in its 100 year history. and i know a lot of americans, men and women, thank you for not only your example and your excellence, but also being a role model for a lot of folks out there. it's been said that janet found love at the federal reserve, literally. this is where she met her husband george, a celebrated economist in his own right. and their son robert is an economist as well. you can imagine the conversation around the dinner table might be a little different than ours. in fact, i've been told their idea of a great family vacation is the beach with a suitcase full of economic books. we thank george and robert for the support of janet as she begins this journey. i want to thank ben bernanke for

the outstanding work he's done and he'll help keep our economy moving forward during the remainder of his tenure here. we'll have occasion for additional good-byes and i know that janet is very much counting on him to give some good advice to her as she moves into the chairman's spot. but with this, i would like to give janet a chance to say a few words. [ applause ] >> thank you, mr. president. i'm honored and humbled by the faith that you've placed in me. if confirmed by the senate, i pledge to do my utmost to keep that trust and meet the great responsibilities that congress has entrusted to the federal

reserve. to promote maximum employment, stable prices and a strong and stable financial system. i'd also like to thank my spouse george and son robert. i couldn't imagine taking on this new challenge without their love and support. the past six years have been tu multiuous for the economy and challenging for many americans. while i think we all agree, mr. president, that more needs to be done to strengthen the recovery, particularly for those hardest hit by the great recession, we have made progress. the economy is stronger and the financial system sounder. as you said, mr. president, considerable credit for that goes to chairman bernanke. for his wise, courageous and

skillful leadership. it has been my privilege to serve with him and learn from him. what we have made progress, we have farther to go. the mandate of the federal reserve is to serve all the american people. and too many americans still can't find a job and worry how they'll pay their bills and provide for their families. the federal reserve can help if it does its job effectively. we can help ensure that everyone has the opportunity to work hard and build a better life. we can ensure that inflation remains in check and doesn't undermine the benefits of a growing economy. we can and must safeguard the financial system. the fed has powerful tools to influence the economy in the

financial system. i believe it's greatest strength rest in its capacity to approach important decisions with expertise and objectivity to vigorously debate, diverse views sean then to unite behind its response. the fed's effectiveness depends on the commitment, ingenuity and integrity of the fed staff and my fellow policy makers. they serve america with great dedication. mr. president, thank you forgiving me this opportunity to continue serving the federal reserve and carrying out its important work on behalf of the american people. [ applause ]

>> you have been watching the president's historic nomination of janet yellen as the first ever female chair of the federal reserve. i want to bring rob cox along with heidi moore, u.s. editor at the guardian. before we left to listen to the president make his nomination, we were talking about how phenomenally qualified she is but also right in a lot of predictions she's made. the wall street journal preformed an analysis of public statements by fed officials making predictions and they found that janet yellen's were the most accurate. that has to be ab important piece too. >> the main one, the one you'll see a lot of the republicans who are skeptical i guess they haven't said they would vote against her, they are going to be base beingically basically

challenging her if she's too dofish, she said full employment and then stable prices. that will feed a little bit on folks who think she's too easy money. but she has been right. we haven't seen inflation. all of the people that said we were right now should be going around with wheel barrows full of dollars and this kind of inflation, it didn't happen. she had said that all along. she has been right. of course, just because you're right in the past doesn't mean you'll be right in the future. but that's what i said before, she's eminently qualified and it's good that you will now have continuity. she's going to pick up the baton from bernanke on qe, on quantity take tif easing and going to own it and that's good. >> she's proven an excellent predictor and extraordinarily well qualified. she's dovish and favored deregulation in the past which

has liberals nervous. overall your thoughts on janet yellen assuming the post? >> she has a huge challenge ahead of her right now. she has the challenge of doing almost nothing. she has to continue what ben bernanke has done despite the head winds from a problematic congress been divided and willing to throw the country into chaos and a wall street that started to explain about the effect of the fed's easing money policies but has no choice but to continue those policies if she's pulls them back, we could lose 2. trillion in value in the stock markets according to the imf. she's in a damed if you do or don't situation and she has to do with that grace and while accepting diverse opinions as she said she would. >> and rob, certainly being a woman doesn't have to do with her qualifications as the next chairwoman, potentially. but you can't ignore the fact she is climbed the ranks of the

macro economic very macho world, it takes more than smarts, a legal of confidence and determination and says a whole lot about yellen. this is what "the new yorker" had to say, yellen's extra x chromosome will ensure she receives more public attention than your average gray haired male central banker would and she'll be regarded as something of a celebrity. i don't know that's the right word to describe here but how does having a woman in the top role, how will that change the dynamic and public perception of the fed? >> that's a really good question. it actually helps with the political cal can you house, no question. bernanke had 30 votes against on the last confirmation, i'm willing to wager she gets 94, 10 against, maybe fewer. i think nobody wants to be on the wrong side of history on that. unless something comes out in the confirmation hearings that she has something, i don't care about inflation, i don't care if

it goes to 10%. otherwise she'll sail through with high marks. the difficult thing for her, and i don't if this is a man or woman thing, she's got to get consensus -- no, she's got to let the people around the table believe she's got consensus while driving through with the policies she thinks are the best ones. bernanke has been good at that. he let's everybody speak from what i understand and sort of considers and rubs his beard a little bit then they get their say then kind of does what he wajts to do anyway. you can see it in the minutes, there's objections and he sails through them. janet will have to show she can do that. i don't know if that's a biological issue at all quite frankly. i think she's going to be -- there's one thing i would say about her. i have met her a few times. you can see it there when she was speaking after the president, you might think that's like my grandmotherly figure, right? but what i understand is that she is actually really quite

tough. she will stop people mid sentence if she finds she doesn't agree with their premise or facts. don't let that fool you in any way. >> krystal and i wore pink and purple to support obviously the first woman nominated. >> and heidi, i'm interested to hear what you make of this debate. when we first started hearing it could be janet yellen, we got blatantly push back that she slacked the graph tas to do the job. do you think there's anything to this idea that she's maybe a consensus builder but not able to quote/unquote lead? >> absolutely not. i mean she is a consensus builder. if you talk to employees at the fed, janet yellen is their choice. if you look at the good things the fed has been doing, what we consider good things like more transparency and more press conferences, that's largely yellen's doing. she really does like open conversation and collecting

those diverse points of view. it's not a huge journey for her to do that. i would say to rob's point, i don't think that this is a -- anything gender related whatsoever. i think it's personality related and that stood out about yellen. her main rival for the job, larry summers is much harsher on people. yellen would be a departure from him, not from bernanke but that's exactly what the fed needs right now. this is a controversial time in american history as regards to the economy. and yellen was very realistic that we do not have a full recovery right now that people are not employed and cognizant of that and that's a really important condition for a fed chairman. part of their job is to reduce unemployment. and she cares and knows she can't do it alone. no one can. it's good we have somebody that can say that up front as oo posed to somebody who would pretend to know everything and potentially drive out potential

solutions. everything the fed has done over the past four years has been completely unconventional. you need an unconventional person to continue that. >> heidi, thank you for reading my mind and making this segue easy than it would have been if you hadn't brought up larry summers, the person who many thought would get the job and strange thing happened on a way to the coronation, rob, why did he get derailed and not get the job? >> there are so many reasons, heidi alluded to some of them. larry is a head strong individual. he's ruffled feathers in the past when he was at harvard he made comments about women, i think they were in many cases probably he was treated a little unfairly. but he says his mind and speaks his mind and sometimes that's not what everybody wants to hear. you know, i don't think this was a -- in the end i don't see this like oh, great we have the second best or anything like that. i think larry actually probably

would have been a good fed chairman as well. he's incredibly smart guy. he's got -- he doesn't own the -- like i said before, there's a kind of -- there's a debate going on about whether the policy is right, whether qe and this is going to work and it's just a giant money printing operation, that debate we won't know for a long time. he would have been less -- he owned less of it so might have been quicker to move. that's the argument for larry. >> thank you, as always, yellen's nomination comes of course at a time of major economic uncertainty. investors remain skittish about hitting debt limit that hits a week from tomorrow. let's head back to peter welch, calling for a clean debt ceiling vote has now 187 signatures in the house.

congressman welch is among those who will meet with the president next hour. i want your reaction to the nomination of janet yellen. >> it's good news, bernanke did a good job rerestoring the financial sector and restoring wealth in the stock market. we still have unemployment too high and wages too low. yellen has a long accomplished record of focusing on building the middle class and having an economy that works for everybody. so i think there's a lot of positive feeling about the president's choice in janet yellen. >> tell us while we have you about this letter, you have 187 signatures for this clean bill. tell the latest. >> well, for the first time in the history of this congress, we're having a debate where we're acting as though there's an option on whether we pay our bills. the point of this letter it to say very clearly america does pay its bills. both republicans and democrats

should disarm, use as a tactic to get their way on something important to a minority within either party the fact that we're going to jeopardize the full faith and credit of the country. the downside damage of using that tactic far exceeds anything anyone will ultimately succeed in getting. democrats have come to this point of view. i have no acknowledge in the past both sides have grandstanded on the debt ceiling trying to use it as a way to criticize the incumbent party's economic policies. we are at a point where we've gone beyond grandstanding and that's unacceptable. >> it's not just about grandstanding and now we have republicans saying this debt ceiling limit thing is not a big over. rand paul saying it's irresponsible of the president to scare the markets, it means we're going to pay our bills and new york times notes there's a broad section of republicans believing that. we're calling them debt deniers.

great e-mail from a senior administration official to politico, these are the kind of people who get eaten by bears. you seriously believe people are saying, there's not that big a deal if we go over. >> i can't. that's what makes this so hard. i asked a couple of my tea party colleagues, let's say we default on monday. what's plan b for tuesday? they look at me, we don't need one. how do you make an argument with that? that's like telling your banker you're not going to pay for six or eight months because you don't feel like it and tell your wife or husband or partner, don't worry about it, the bank won't get upset. it's fantasyland. >> there's a new gallop poll showing for first time americans' numbers one concern is not the economy, it is government dysfunction. you can certainly understand why they are feeling that way. what i think is so frightening here, we sort of know what to do

about the economy. there's a debate about different approaches we could take. i think americans feel hopeless about how we get past the fundamental lack of ability for -- i don't want to make this sound like it's a two-sided thing. republican obstructionists, how are we going to get past this and make government work again? >> ultimately the american voters will have to weigh in. i do think that both sides have to be willing to come to the table. but you've got a minority within the republican party that's represented -- they represent districts where obama loss by 25 points. those folks have a single goal to defund the health care bill. >> how do we change that though? >> there's two things. one is next election voters will have to weigh in. second, i believe it's time we have nonpartisan congressional districts that are drawn by nonpartisan groups -- >> amen. >> rather than in the pocket

legislators, whether democrat or republican. it's a lot better for the country when the member of congress has to be listening to a broad section of the people he or she represents. my colleagues have a tough spot, my republican colleagues, if they compromise with us, they fear and rightly so, they are going to get hammered by the club for growth heritage action and face a right wing primary. john boehner has a huge decision with implications for his party. if he let's the tea party run rough shod, it will get narrower and nar rower. the tea party folks won't change. a lot of moderates, they are living in fear that if they have their head come above ground they are going to get challenged. somebody has got to stand up and i think it's john boehner. >> you mentioned the redistricting commissions, there are several states that have adopted that. this is not just a pipe dream.

there are several states that made that change and to the benefit of having more competitive and less partisanly selected districts in those places. the question i want to ask you about this issue that everyone sees as a real abomination in the shutdown, the denial or delay of benefits to our men and women in uniform who have died and given the ultimate sacrifice, and yet there does seem to be a problem on the democratic side of saying we're not going to do piecemeal funding government for the logical reason that sooner or later it has to reopen. and a lot of so-called nonessential services are important to people, including our veterans. how do you defend or explain what many are doing, going down the road of what looks like some piecemeal funding? >> well, it's a dead end approach. there's a battle to shift blame to the other side, republicans to democrats and vice-versa, the

republicans have the control of whether we open up the government. if mr. boehner puts a bill on the floor to open up, it will pass. we have all of the democrats and numbers of republicans to get to 218. that's beyond dispute. it he disputes it, put the bill on the floor and let's test it. in the meantime boehner has to have a strategy where he's appearing reasonable. he puts these piecemeal bills on the floor and they are not going anywhere in the senate. so it is political theater and a major reason why i think the reaction around the country including vermont is one of dismay, almost beyond -- almost despair. >> congressman, i totally understand that. i want to be clear, are you against any of the piecemeal funding? >> i am against piecemeal funding just because the alternative -- you know, the logical extension, we're going to start having a bill on every federal employee, do we want peter, beverly to work? do you like what they are doing? that is a way of avoiding our

fundamentally -- >> what's wrong with beverly? >> i would have voted for beverly. >> before you go, let me get you to way in on something they are talking about doing in the other house and senate. this sort of nuclear option they are talking about, changing the filibuster rules to get a debt ceiling bill with just 51 votes. do you think that can happen and should happen? >> do i think it should happen? the filibuster has been wildly abused. majority rule applies in this country. we've created the filibuster into something that is not just to protect minority rights but oppose minority rule. i think the senate has got to do some -- they've got to change it. that's my view. >> i agree. congressman peter welch, thank you as always for your time. >> here's to a productive meeting at the white house next hour, and up next right here, oh, to be a fly on the wall. cot or more on car insurance.

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we are continuing to watch live pictures of house democrats who are arriving for a meeting with the president at the white house and to get the latest on that and everything else that's happening or not happening in washington, i want to bring in "washington post" dana milbank and john stanton, welcome, gentlemen. as you know meetings in washington always lead to action and progress for the american people. that's why we have a close --

>> that's a hash tag. >> on the camera. >> i want to run a theory by you, it seems we have a house that's generally dysfunctional and does little without a super majority. we had a congressman telling us about that and then we have exceptions, situations like the violence against women act vote, t.a.r.p. initially, which went down and then reversed, certain issues that because of extraordinarily public pressure change that dysfunctional dynamic. it seems to me that sooner or later the debt ceiling, whether it's at the ninth inning or tenth inning will probably follow that t.a.r.p. like model. why is that right or wrong? >> you're a little right and little wrong. it's not going to be like t.a.r.p. where you have a one time deal. most folks believe in the fext four or five or ten days there will be something that happens on debt ceiling. but i don't think anyone

believes you're going to get more than a few months, maybe six months if republicans can extract some serious concessions or promises for entitlements from democrats. short of that i don't see much more than a few months kicking this down the road a bit obsessed with these debt limit deniers. handled, they say the debt limit is enough leverage that the president should, as chris matthews would say, give up his baby. and on the other, they say, yeah, but it's not a big deal. it doesn't matter. we can handle that. it seems that they're lying to somebody, and not to themselves. >> well, sure, we can handle it. we just stop paying social security and shut down the u.s. military. so, yes, in theory, it could be done that way. and nobody expects it, actually will be done that way. i have to say, i'm picking up less resistance on the debt limit than on the shutdown, the actual funding of the

government. i think even the hard-core republicans realize that may just be a bridge too far, and they will, in fact, get a lot getting marginally more blame than the president, but everybody looks bad in this situation if they force a default, that's a whole other situation. >> you think that the hard core republicans think it's a bridge too far. rand paul coming out saying the president is irresponsible. it seems the far right is saying, no, no. the president has been lying to you, we can go over that thing, it's no big deal. >> i was saying even some hard core republicans, would i never pretend to tell you what's going on in the mind of rand paul or mike lee or ted cruz or some of our dear friends in the house. but i do sense a little bit more rational reason on that one. >> john, i want your take on the timing of the nomination of jana yellin today. the white house saying it has taken some time to vet her that this decision of the timing is not at all political. but then you look at the reality of it, the uncertainty around

the shutdown, marketplace uncertainty, lackluster performance from the president yesterday, leaving many people not feeling better, not to mention his approval rating now down at 37% in the latest ap poll. it's hard not to see this timing as somewhat convenient. >> yeah. i think anything major that the white house does has got an enormous amount of political calculations that go into it. and i think this is very much that. i think you're right that the markets need some signal from the white house that there is some kind of stability coming. people do generally like her. while some conservatives may not be particularly enthused with her nomination. it's going to get through fairly quickly and i would imagine fairly easily. so that provides the markets with at least, you know, the notion that at least at the fed, there is going to be somebody there when, you know, in a couple weeks. and so that takes at least one part of this out of the equation. and it also gets back to sort of the first time thing with her being a woman, which gives some good press. and i do think there is

definitely a certain amount of political calculation going on, since they obviously vetted her probably this summer. i can't imagine that they decided to suddenly do it, you know, last two weeks. >> dana, in terms of getting out of the shutdown debt ceiling mess that we're in now, auto ll the talk yesterday maybe there would be a short term deal. the president seemed to leave some room for we could get a clean debt ceiling and clean cr and then have some sort of a super committee, god help us all. i mean, is anything going to be different if we just push this down the road six weeks from now? >> well, isn't that what always happens? we always figure out, all right, there could be the grand bargain, the commission, this, that and the other thing. and whatever it is, the best they can ever manage to do is stall it for a matter of weeks or months. so the best case scenario is to stall again and we can hopefully have a nice fight and then stall it again further. there is no seeming end to the impasse, because neither side

has any particularin sen active to budge on this. and it's not going to change, at least before next year's election. >> i'm not sure about the idea there is no incentive on either side. when you look at the new gallup numbers out today, they say they see the lowest support of -- you know, positive views of the republican party in the history of this poll. and at 10% drop, to 28% now, since last month. and they obviously attribute most of that declining positive view of the republican party to their position on this standoff. to me, i would look at a different way, the folks who don't live in washington and follow this closely, the message is get south and it's not an idea that washington is quote, unquote broken. but rather that in a very important way on this issue, not every issue, but on this issue, the republican party broke it. >> i think that the republicans are bearing the majority of the blame for this, no doubt about that. but if you look at the numbers, for instance, compared to 1995,

you're not seeing the wide margins where the vast majority of people are. i mean, it's a fairly sort of narrow number. at least right now. and i think republicans look at that and they say, well, everybody may hate us, but they're really not blaming us that much more than the democrats on this thing. it's not as bad as it was in '95. there were a lot of republicans back then that felt that newt should not have ultimately caved and should have kept pushing. so i think for them right now they don't see a huge down side to sort of playing this out right now. >> dana, there is only two countries in the world that do this appropriations process like this. the other is denmark. and they don't do it politically. what are we doing, doing it like this? you've got about 20 seconds. >> no pressure. >> an unlimited amount of time and i could never possibly explain why they do these things. this is how it's been done the last 90 years here and maybe they should just move along and not have to have these debt limit increases. >> does nothing but hurt the country. >> dana milbank, tweet level

brevity from an unfair question from toure. shot clock running out. >> thanks to you. and thanks to john stan for spending time with us today. that does it for "the cycle." joy reid is in for martin bashir. and that is up next. d we invest? maybe new buildings? what about updated equipment? they can help, but recent research shows... ... nothing transforms schools like investing in advanced teacher education. let's build a strong foundation. let's invest in our teachers so they can inspire our students. let's solve this. you feel...congested. beat down. crushed. but sudafed gives you maximum strength sinus pressure and pain relief. so you feel free. powerful sinus relief. sudafed. open up.

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good afternoon, i'm joy reid in for martin bashir. it's wedgnesday, october 9th, ad i said i wasn't going to do it! ♪ >> i'm not leading off with the government shutdown. not doing it! >> day nine of the government shutdown. >> except for this one thing. >> the congressional approval rating right now. >> 5%? >> shouldn't