we'll hear from gary cohn who led the national economic council under former president trump. >>> finally ahead of tuesday's state of the union address, four new house members weigh in on the prospects of action on crime, immigration and spending in this divided congress. it's all just ahead on "face the nation." ♪ >>> good morning. welcome to "face the nation." well, it was a drama that had all the signs of a hollywood movie. the end t chinese spy balloon's journey was somewhat predictable, but what hppens next is still very much up in the air. according to the white house, the balloon was detected a week ago in alaskan air space and was not assessed to be an intel risk or threat. it then drifted through canadian air space moving southeast and was spotted in montana, home to a u.s. nuclear missile base, where it turned into a very public diplomatic crisis. beijing insisted the balloon was an airship gathering weather data that had drifted off course. secretary of state blinken abruptly canceled his trip to china, a visit intended it thaw icy relations between the two countries. many lawm

joining us now with reaction is gary cohn, also the vice chairman of ibm and form errant of goldman sachs, regular on the fed day. i guess the takeaway, gary is this could have been more hawkish. >> absolutely, sara. the chairman caught out and said the full effects are yesterday to be seen he gave you both sides of the argument, but i think the fact that he gave us the seed of the argument that things have gotten better he sees improvement, he sees inflation coming down. the only thing he kept hanging his hat on is the labor department >> don't we need immigration >> i know we can't do anything about it, but we are labor dependent. he went as far as quoting the jolts report from this morning 1.9off openings per unemployed american that was the jolts data from this morning. >> let's bring in mike santoli this is quite a stunning intraday look at the nasdaq and to now the highs of the session, a similar chart. treasuries getting bought. what do you make of this market reaction >> sara, i think the key was during the press conference, jay powell refused multiple opportunities to more direct

the old guard of goldman sachs partners, you know, have said from the beginning, all the way up to gary cohn the number two and the president of goldman sachs tofor a while. when like at the story of marcus i have to say there were bright spots and it was, you know, succeeds at a certain point and things went south in 2021. so, you know -- why? >> the death blow was that goldman sachs -- i'll step back. one of the surprising things in my reporting is the extent to which the decisions ceo matt rosendale had an impact on the story of marcus, and its failure. he had done a series of reorganizations, shifting the walls around - >> and shifting people for this organization in 2021 you had a partner, omarishmail, one of the original architects of marcus, well regarded, an he felt like he had been looked over for this promotion that happened in late 2020 one of his peers got it, and he leaves for a place, a welcome backed fintech named one and this sets off a series of disastrous things for marcus waves of people leaving. lack of discipline leading to a boom and bust scenario and things went south.

we're joined by a former top economic adviser under the trump administration, gary cohn, who is the vice chairman of ibm. good morning. good to have you back here. >> thanks for having me. >> so 517,000 new jobs, but a lot of companies, particularly in tech, are announcing layoffs. so exactly where is the economy headed? >> so, it's interesting. we did see the 500,000 plus new jobs, which was quite surprising, i think to many of us. i think what we're actually seeing here is a re-normalization of the new economy. a lot of jobs that we saw were jobs in the service industry. the service industry is coming back very strong because we're starting to see the economy go back to what we historically think of the economy. for the first time we've seen occupancy rates in offices in major cities over 50%. when you see occupancy rates go up you need the service sector to work. think about people going back into the office. they need parking attendants, people to work in the building, security, people to clean the buildings, people stop for coffee, they go out to lunch, go to bars. for that to happe