captioning sponsored bwpbt >> so it doesn't feel li a strong economynd it's not a strong economy. but it's an proving economy, and that's a verimportant part of what we need to go througin order to havan ultimately very healthy economy. >> sus: chicago fed bank president arles evans joins us for his rst television interview. tells us the fed will raise rates when thenemployment rate starts dropping. >> pau president obama is preparg for a high-stakes speech tcongress tonight. the goal: convincinghe public and lawmakers to get bind his health care form plan. susie: steve jobs is back o the job,aking center stage at an apple produ launch.

apple fanatics welcome his return, but pan the dated ipods. >> paul: i'm paul kang. >> susie: and m susie gharib. this is "nightly busins report" for wednesday, september 9. "nightly biness report" is made possible by: this progr was made possible by contributions to yourbs station fr viewers like you. thank you. od evening, everyone. president obama ells out his vision for national hethcare

tonight. he will deliver a spch to a joint seion of congress to explain the need to overul the tion's health care system. s address comes after weeks of rowd town hl meetings acss the country where american voters spoke out against reform. shington bureau chief darn gersh joins now with more on what expect. >> reporter:he president ans to take the health care debateack to basics his speech tonight. the president's al tonight is to remind americans confus by the debateso far, of the key reasons hes pushing for health care refor toppinthe list is extending coverage, says white house adviser lody barnes. >> we know that 14,000 peoe a day are losing theiroverage, and he wantsot one more american to be among tm. secondly, that for those who don't have coverage right no he wantso make sure they can afford i thirdly, he also wts to make suree are in a trajectory to drive down the ct of althcare in our system right now. >> reporter: bars says the president still favo a so-called "public tion" as an

effective wato control costs but max baucus, the airman of thinfluential senate finance committee and e point man on bipartan negotiations, says that idea is goingowhere. >> i think, frankly, wh increasing conviction that public option cannot pass e senate. >> reporter: replican senate leader mitch mcconnell sayhe american people haveome to the same cclusion. >> i think our view , let's scale itack, target the problemsand not have the governmentake over, in effect, all of american healcare. >> repter: the president is now caught between t wings of s party, with liberal democrats li barbara lee arguinonly the government bargaing power backing a public plan can brindown health care cost without fixing the entire system, we'd just be tinring aroundhe edges of a broken syem, applying a band-aid where full resuscitati is what is requid. >> reporter: aa compromise, barnes says the prident will

address the idea of a trigge mechanism to create a publ option if the private sector fails to conol health care costs. >> it goes tthis idea of competition and chce. as you were saying, you' see the trigger willrigger a public optn only if you aren't finding the requisite amnt of competition in a particula state or a pticular marketace. >> reporter:ormer clinton viser bill galston says obam tonight will try to ke faith with his democrac base, while so stressing that doing nothing is not an option. >> he's sent every cdible sign i can think of that if a bill comes to s desk without a public pla but that enhances coverage and does so things on the cost side, he' sign it. reporter: the white house has released portions of the spee and the predent will say the time for bickering is over andow is the tim for action. many of the analysts i spoke to expt some kind o reform, but ey say thedds of this sweeping trillion dollar plan are down to 20% or so.

>> susie: so if it's n going be this big spansive pn, what will reform eveually look like if it ds go through? >> reporter: good bet is it mighlook like something like what thedid in massachusetts. so itight have an employer and an individual manda that you have to b insurance. but it will also have insunce market reforms that will mean that p-existing conditionsre no longer something pele have to wor out. and it mightlso have subsidys to lp people who can't afford insurce to be able to buy it. >> susie: so how much do you thinthat thosetown hall meetings had on resping this process? >> reporter: they got a lot of attention, didn' they? it reall depends on who you ask. if you ask republicans,hey say that the people have spoken, th don't likebig government pn, and that's what the town hall meeting showed. democrats would sa that basically wh this showed is at people are confused about health care, a that the president s to come here tonigh and explain wha this is all about. >> susie: so then what happe

ne? the esident givesis speech tonight, congresonal leaders go bk to theironstituents. what's nexin the process? >> reporter: well, we're going to heafrom this birtisan grou as youeard in the piece that did, max baucu whis the chaman of the finance mmittee has been working th them for months, they've been lockedin a roo ying to come up with a deal. we'lknow in the next week or so exactlyhat that deal is and how many of these republican senors are on board. then we'll see that work through the process in the senate finan committee. thenit will go through the usual ocess of the sene doing their work, the house doing their work. and we'll see where we end up. >> sie: do we know about that process, it's a very long and arduous. do you ink there will a bill on the president's dk sometime this year? >> reporr: there will be a bill. it wi be calledealth care reform. it depends on how y define that. democrs can define it the way theyant. yomight have a small pkage of 100 to $200 bilon. that's what's consided small

in this debate. yomight get the more $500 billion an which would have the insunce market reforms, ich have to beoupled with some kind mandate that peopleuy it, and se kind of subsidies in order toake the whole thing work. the odds o this trillion dollar packagehat we've heard so much about look like they'rdown to 2 what is i'm heing from analysts who cover it ry intensively. >> susie: alright, sounds ke the debateontinues, and these nextouple of weeks will be crital. thank you for joining us. darren gsh. >> paul: wl street added modest opening gains t sterday's rally as higher commoditstocks continued to bolstethe market. after an hour, the dow postea 21oint advance with the nasdaq up ten points. the market tooon a more llish tone with solid gains blue chips like caterpillar d boeing. at midday, theow was up 65 points and nasq posted a 25- poingain. an afteron pullback was cushioned by the fed's frly upbeat bei book report as

stocks closed moderatelyigher. the dow jones industri average ded up 49.88 at 9547.22. the nasdaq gained 22.62 to 2060.39. the s&p 500 rose 7.98 33.37. >> susie: theconomy continues to improve in most parts of e country. that's the cclusion of the federal reserve's latest svey on economic activity. fed policymake charles evans, president of t federal reserve bankf chicago and a voting member othe central bank's

interest rate settg committee. earlier today i sat do with ans for an exclusive inrview. where people are concerned about losing their jobs won't spd money. first question to evans, is the recovery otrack. >> well, think the economy is beginning to recover. i think tha for the second half of this year i'm looking fo the econo to gr about 6789 to 3%, and i think i will do that overthe next 18 months. i think th the contraction is prett much behind us, so i'm lookin for gwth. >> susie: if, mr. ans, the economy isimproving, why are we hearing more d more forecastcalling for a double diprecession? >> well, i thk there are ill a lot of uertaintys, and as soon as you start thinking about which elements of the economy will be growing you always starts scratching your head. i think e consumer is very important for the recovery,

andbviously there are issues about how high the savings right ght be, that would tend t restrain groh of the consumer a b. businesses he already t back so chon discretionary penditures and they've cut employment dramatically and so there continueo be concern abt when the hiring margin will begin to pi up. >> sus: but can there be real recovery without job growtho go with it? >> thawill be the hard part. we'll be sing the unemploynt rate continue to go up, i think, until t first quarterf next year. and it's not goin to feel like a recovy because of that. >> susie: en do you see the economy getting to full emplment? and by tha i mean a jobless rates of around 5%. >> unfortunately, i think that's a f years away. iould guess thaat the end of 201 the unemployment rate will b about 9%, in 2011 it's going to be uncomfortably high probly in the 7, so it's going toe beyond that time frame. >> sie: when you talk to

consumers and businesses in your district, what arehey telling you, how are they doing in terms ofetting loans, getng jobs, making money? >> conmers are worry about theijob prospects, and whether or not ty'll coinue to have a jo, and that's restraining consumptio spending. i think the dline in net wortgives rise to a hher savings motive, and so that restrains consumer ending. i think business are concerned out shoppersoming in on the retail se. i thinkthat they are reasonably content with the size of their operations so, they'rnot going to be ending on cal tall equipment and eanding their activities. so that will restrain groh some extent. >> susie: can the econo count on conmers to be the agent of growt as did itn the past? >> i d't think it will be the same it was in the past. in the last fewears, we had stronger con some00 gwth in part because t worth was higher, e which pres were

higher, health pricesre higher, sonow things are turned around so the added stimulus tconsumer spending is not there and they're working against at. >> sus: so where is growth going to come fr? at first it's going to com fromn invtory adjtment. businesses havbeen very careful in parin back their inventyes, they didn't want to he to pay f products on the shelves at weren't going to be bough now they need to add and restock, that's a normal part ofn initial rovery, that will add t growth. that ll add to production. i think the rest of the world is binning to do bette as well so,e'llee some export growth, that wil add strengt as well. >> susie: mr. ens, you said today that the u.s. economy may be facing t great inflation 2.0. so how serious aanger is inflatn? >> i don't thi that inflation is abig probl at the moment,r for the foreseeable future. my own view is that inflation expectations are prettyell anched and we're going se inflation in the 1.5%

range, probablyver the next year to two. >>usie: so what is the federal reservgoing to do make sure that inflation doesn't do damage tothe economic recovery? >> we're going to be keeping our eye inflation, we'll be loing at ilation indicators and also expectations, and if inflation prsures were to beginto rise pmaturely before we think th will much later in the onom recovery, we would respondggressively as needed. >> sie: so how much longe do you thinkhat the feder resee will stand by its zero interest rate picy? >> i think the markers for thatill be wn the recovery takes hold, when unemploymt star coming down, when it's firmly embedded in the outok, when businesses are truly forwarlooking. they're forward oking at the moment, but they have cently been looking to make sure that they are viable. then ty'll be looking for growth, and before looki consums their savings will be to the point where they're more comfortable with their financial system i thinkhat's most likely to be towards the end of 2010,

2011. >> susie: that time, as the federal reserve begi to navigate awayrom zero interest rates, how will you mow if y're moving t fast or t slow? >> i'm not sure we'll actly know thenswer to that. the are always alot of certaintys, and looking back on e period from 2004 to 2006, i think that incrse in interestates w perhaps a little too measured, not at the beginning but words the end. so think weill be looking at that period and responding a bit more aggreively than we did at th time. i think we will have to make a very hard jgment about ether or not the recery is firm on hold and how mh flationary pressures mig be rising ove the point that's consistenwith o ice sbility objective. and it will be havin to look at everying. susie: mr. evans, thank you so much for ur time, ve interestinconversation. >>hank you very much. >> susie: you c wash an extended version of ou inrview with charles evans

or read e ente tranript on ourebsite, on pborg. he baaaaaaaaaack! apple c.e.o.teve jobs took the stage today at his cpany's product launchvent in san frcisco. at hisirst public appearance in about a yr, jobs rolled out new versions of appls popular i-pod,dding a video camera, microphone and speaker to it nano model. the device even has pedometer and a built-in f.m. radi it's priced $149 for the eight gig mol. the company also upgraded itun, its digital media store, givi users more control over

ntent. in spi of all the buzz, care- is and comny analyst rob sear- uh says todas event is not a game changer for apple. >> sie: sear-uh also >> i don't think it changes the outlook. iphone is still the to of the line forpple. macsontinue toe important for ple and today's events were a little of, hey, don't forgs about the ipod, we're still refreing that and selling a lot of i pod susie: he also recommends buying shares of app, calling it theest computer products company, bar none. and paul, steve jobs alstalked briefly abt his liver tranlant this spring, and urd everyone to become an organ donor. >> pau susie, ape shares were amo the nasdaq most tive. we'll see them as we take a ok at our stocks in the news tonight.

>> paul: and tse are the stocksn the news tonight, susie. >> susie: it's thelace where disgraced financier bernd mado confessed to his $65 billioponzi scheme. now, his twoloor manhattan apartmt is up for sale, along with his oth high-end real tate. the apartment worth about $7 llion. doff's $11 million estate in lm beach will also be auctioned. the government hopes madf's infamy will ive up the sales price on botlocaons. a $2 million yht named "bull" will also go to the highest bidder, as liquidars try to coup money for madoff's victims. >> paul: tomorrow, moron maff as senate lawmakers look into how the s.e.c. ssed the biggt ponzi scheme in history.

>> susie: the vernment says its efforts to help homeners avoid reclosure are showing progress. so far, 360,000 meowners have reduced theimonthly mortgage payments und the federal program lled "making homes affordable." that's about 1 of the those believed to be eligiblfor the plan. a month ago that nber stood at 9%. some consumer groups say plying for the program is still o difficult. >> paul: theattes and appucinos will keep brewing 30 starbucks locatns that were previously seduled to close. that's bause those stores have becomeore profitable recently, even as coumers are cutting back on costly coffee. starbucks hasn'taid where thos30 stores are located. since july of last year,he company annoced plans to close more tha900 stores globally.

in the money file night, what manynvestment fraud victims have in common. here's hriet johnson brackey, personal fance columnist at the outh florida sun sentinel." >> rorter: ie been knee-deep laly in investment fraud. i'm talking about the ordina eryday scummy stuff that happens when trusting peop give other pple their money. this year, there's bn a huge increase ithe number of securitiesisputes or arbitrations filed. after talking dozens of

vestment fraud victims, i ha come up with aouple of reasons y fraud is on the rise. the obvious one is greed, t really its greed cbined with a willingns not to look too hard. if mt of your friends and neighbors are getting a 5% a someone offers you 10%, the greedy take it. and th don't look back. the frauvictims i've met didn check things out. the noso-obvious reason is low interest rates a poor stock market returns. ink about it. seniors, who want thsafest investnts or c.d.s, aren't getting much on their mone becae rates are near the bottom andow-risk investments produce low returns. you stt pounding that kind of peon with a slick sales pitch, and voila,ou've got the next fraud victim. the search shows that seniors are targeted by scams morehan any other grou i think the frd numbers will

go back down again, when the markets cover, when interest rates rise and when seors are no longer scraping for ery little bit of eld they can nd. i'm harrt johnson brackey. >> paul: recapping tod's market actio a fourth straight day to the upside for e blue chips. the dow ins almost 50 points and the sdaq adds 22 points. to lea more about the stories in tonight's broadcastto watch our streing video and to take part in our daily blog, to "nightly business report" pbs.org. yocan also email us at nbr@pbs.g. >> susieand finally, adults aren the only ones affected by econom tough times. kids are, too. that'shy pbs and the folks at the sesame wkshop have joined forces to help families wi children thrive duri this financial clime. they've put togeer a special prime-ti program called "families std together: feelg secure in tough times." it oers strategies and tips parents can use help their

young kids' emional and physical well-ing, coping with economic uncertaty. the program airs tonight on st pbs stations. please check yr local listings for the specific time in yr area. paul, looks real good, doesn't it >> paul: sounds like worth while ewing to me. >> susie: and fu too. th's nightly business report for wednesday, septeer 9. i'm susie arib good night, eryone, and good ght to you, paul. >> paul: good night, susie. i'm paul kangas wiing all of you thbest of good buys. "nightlyusiness report" is made possible by:

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