but he also says the fed can't fix the economy alone. it needs what he called "complementary" initiatives from others, including congress. >> susie: dudley plays a key role on the fed's committee on interest rates, and he is second only to chairman ben bernanke in wielding power over policy. he got the job nearly two years ago in the middle of the worst financial crisis in decades. his colleagues today are divided on what the fed should do next-- take action now or wait to see if the recovery stalls further. i began my interview with dudley by asking him how the economy is doing. >> things are getting a little bit better. second half of the year growth is definitely stronger than the first half. we've seen a little bit of pick up in employment growth but not what we want. unemployment rate is still too high but the outlook is definitely better than it was. the other thing we can note the is inflation rate pickup offed up at the first of year is now turning down. it's not great but better than it was in the first half. >> susie: but the fe

in tonight's "how to fix the economy", the governor tells us how his state's economy has outpaced much of the rest of the nation. >> we are benefited by the fact that agriculture is an important part of our economy. i was governor in the 80s when agriculture was the weakes part of the economy, the farm crisis. now we're selling, you know, we have record prices for corn and soybeans, also cattle and hogs are doing well, we're the number one egg producing state. all those things are good. but also we're investing in research and biotechnology, looking for the opportunity toed avalue to what we produce through bio sciences. and also we're strong in the insurance and financial services. >> reporter: in the domestic economy whirlpool announced it's closing a plant in arkansas. whirlpool purchased maytag with the big manufacturing center here in central iowa, which will be getting some of those jobs. >> right, they're going to add 160 jobs. alcoa will be producing more aluminum for the auto industry, they'll be adding a couple hundred jobs, real good manufacturing jobs in deafen part. so we'

the fact that the economy has not yet picked up is not because of the regulatory policy. there have been a lot of studies right to left. we started this administration with an economy that was a much deeper recession than anyone knew at that time. if you look at the pattern of the recovery, it is more similar to other recoveries than not in most regards. it is a long recovery from a deep financial recession. that was under the president's inheritance. the actions he took in the recovery act, i wasn't part of the team that was working on a recovery act in 2009. i think it is responsible for a significant amount of economic growth and billions of jobs. our opponents in washington ridiculed and that is fine in the political process but we have to ask what would a aggregate demand have been like if we had not done the recovery act. what we have had a deeper and longer recession with a double dip, it is not and we don't look -- there is a lot of talk about a double dip but all the projections i see show that we ought to be able to continue to grow. i think the economy is coming

of the handling of the economy? 0s. >> but in the. >> carter analogy is weak because you are forgetting iran and you forget the foreign policy catastrophes that compounded the situation. obama is run strong on foreign policy now. his rating on foreign policy is something up in the upper 40s. terrorism is low 60s. he has that issues to neutralize republic. >> though russia is threatening to point missiles at europe and iran may have a nuclear weapon in short matter of time. >> on spectacular events like killing bin laden or relative success of libya, the russia thing is a disaster. iran is a disaster. but it isn't explosive. it isn't out there on the news. it doesn't have a video component. i think in the absence of that, people have this impression he has done well. now, that would be up to republican candidate to actually make the case of how the policy with china is a disaster. with russia as a disaster, iran, et cetera. but it requires argument and it's not going to be easy. it's not a gimme. you're right, the cur

in the world economy? >> no. oil is still a limited supply. this is a narrative that's being advanced by people who were trying to stall the alternative energy industry. and i just -- i'm happy for williston, north dakota, there there are some jobs there. but there are lots of problems with getting natural going back, track and, is being investigated for what it does to the water supply and so forth some no, this is not a panacea, still invest in solar energy. >> here's the problem. >> eleanor is the problem? >> and her friends are the problem. >> you mean -- the grown people. >> enormous potential. we have technology, we'll make ourselves more energy independent. and the green movement wants to block it because they say oh, my goodness, this will mean -- >> there goes our money. >> there goes solyndra and our benefits and the rest of it of this is a tremendous thing for north dakota and a tremendous thing for america. i agree with eleanor. you got to make sure the environment is protected and we ought to go full force. >> always interested the

i think those are reasons why the economy has not been stronger. at the same time i think it is important to provide insurance for the economy again. further possible shots down the road. if the payroll tax is not extended, the typical family with $50,000 in earnings would pay an $1,000 tax increase starting in january. what the president has proposed is extending that tax cut and expanded it to the typical family to have a $1,500 tax cut and as i mentioned the other components in the jobs that employers tax cut as well as extending unemployment benefits. so i am happy to take questions. >> are you asserting that the extension of the cuts would make the economy better? or are you just saying it will make the economy worse? >> both are true. the president proposed extending and expanding tax cuts so the beneficial effect we saw from the last round would be larger. i also think that the tax cuts on the employer's side are particularly well designed. the cbo has concluded that the type of incremental payroll tax the president has proposed has high bang

that starts to eat into the economy. and very soft whether it's positive growth or negative growth is not going to matter. what's going to matter. the catalyst it get us off the mat is just not there yet. if anybody is investing their money with the idea that the u.s. economy is going to be ripping at 3% by the way, i think is, that number is the know close, they're making a lot of bet. >> brenda: jonas you don't buy into that. >> the depression, i don't think-- if you're really in a depression. >> real estate markets. >> if you look at depression stories and compare it today. home depot is too crowded to say there is he' a depression in housing today. it's in trouble, okay, it's slow. >> and how many people you know building houses. >> brenda: give him a chance, go ahead, jonas. >> i would say i do not think we're going to have another recession, these are fear-based items whether it's the european debt problems or-- these are all, you can psych yourself into a depression, but we don't have a class business sector like y

is it possible for the u.s. economy to have a sustained healthy recovery if the european situation is not stabilized? >> well, we are the largest and most powerful economy in the world. there's that fact. but we are also part of the global economy and one thing that is abundantly clear i think for any of us who have been watching it this year is that there are things that happened to the global economy that have affects -- effects on the american economy, negative effects. like the earthquake and tsunami in japan, like the upheaval in the middle east that affected global oil markets, like the crisis and instability in the euro zone. that's just a reality, that this country and every country has to deal with. now, we have tremendous capacities and resources of our own. we also have the ability to take care of the things that we can control. the ability to take the measures necessary, even the tough political measures necessary, to reverse catastrophic economic contraction that we were faced with in early 2009, to reverse

you guys cover the economy every day. you cover the markets. steve, what is it that you haven't heard on the campaign trail that you are interested in hearing tonight from candidates. >> i haven't heard much of anything on the campaign trail that was interesting in terms of solutions to the economy. we have had a lot of complaining about where we are now. i think that's justified given the high unemployment rate. when you hear and watch what the candidates have said so far it stops there. we need to repeal what the president has done, what the president has done isn't good. we are not in a good place. haven't heard a lot of how you get us to the next place. a key issue is housing. you go back and read the debates. nobody has a housing plan except for the foreclosures. >> we're not giving away anything by saying there will be a lot of questions about housing. >> how do you fix the economy. how do you fix this problem. how do you get people working? we know you don't like what the president has done but what are you going to do to change it, make

, the south american economies. those are just exploding. so, we do expect the international part of our business to become a higher percentage of our total business. >> tom: regardless of where a traveler hails from, they are finding higher prices-- not only airfares, but also accommodations. triple-a finds hotel rates average $145 per night, up 6% from last year. homeaway.com concentrates on the vacation rental home business. similar to other travel sites, c.e.o. brian sharples says the vacation home rental business has been strong, especially overseas. >> i think the thing that's been the most surprising to me in the recession is that the traveler traffic has continued unabated from a growth perspective in the business, and we've really tried to understand that. as a sign of how strong homeaway.com thinks the overseas market is, in the last five years, the company has bought established sites in the u.k., france, germany, brazil and australia. rates are going up we expect now and priority mail packagages in januar

unemployment rate may have gone down but the u.s. economy is nowhere near in the clear what does this mean for millions of unemployed americans we will have more with edward harris and but first here closing stock numbers. we just put a picture of me when i was like nine years old i just tell the truth. i confess and i am a total get over and said i love to rap and hip hop is excellent and pretty. but he was kind of the jester. i'm very proud of the role without you as playing. oh. you know sometimes you see a story and it seems so silly you think you understand it and then he blames something else here so you saw the part of it and realized everything is ok if you don't know i'm trying hard luck and was a big picture of. what drives the world the fear mongering used by politicians who makes decisions to create probably thirty people made who can you trust no one who is you with a global missionary see where we had a state controlled capitalism is. saxon's when nobody dares to ask the we do our t. question more a way. the books are. welcome

immigrants are a net contributor to the economy. it is easy to be distracted by the fiscal analysis which is about tax revenues and expenditures. entire categories of people at a certain phase in their life and a certain period in their economy are net users of tax resources. as it happens since we're running a big federal deficit right now, we're all net users of resources. if you add us you will up together, we're not producing enough revenue to cover the expenses of the government. people that are older, children, those are categories of people who are net drains on the economy. that's a fiscal analysis, not an economic analysis. so point number one for your friends who are not persuaded that immigration is a good thing, get them off the fiscal analysis and ask them to focus on the economic analysis. that's a bigger picture analysis. yes, a child of 7 costs money because they attend school and no, they don't work. the last time i checked, that was a good thing. later when they go on to do wonderful and innovative things, whether i

where the economy may go next. >>> the internet music service pandora. how they plan to drive profit and listen to the sweet sounds of success. the wall street journal report begins right now. >> this is america's number one financial news program, the wall street journal report, now, maria bartiromo. >> and i'll be back with all of that and a lot more in just a moment, but first let's check in with sue herrera for some of the headlines this week. sue, over to you. >> thanks, maria. here's what's making news as we head into a new week on wall street. the economy created 80,000 jobs in the month of october, a little less than what economists had predicted. that is the fewest in four months but it is still nudging the unemployment rate down just slightly, to 9%. the report had some positive signs including an upward revision in the number of jobs created in august and september. the labor department now saying 102,000 more jobs were added than first thought. as usual, it was a roller coaster week on wall street, a drop of more than 2% on both monday and tu

liquor was the foundation of the economy. and >> anything that touched on the possibility of prohibition was greatly and popular. >> the first campaign was a great effort, but not a success. >> the war was not over. less than one decade later, a graphic protests brought new life to the movement. >> women's suffrage, the republican convention in oakland, this time it was the private sector response. 300 marched down the streets of the convention center. women were entitled to be here. >> joining together for another campaign. >> women opened a club in san francisco. it was called the votes for women club. if she could get the shopkeepers to have lunch, she could get them to be heard literature. the lunch room was a tremendous success. >> it was the way that people thought about women willing to fight for a successful campaign. what happened was, the social transformation increase the boundary of what was possible, out word. >> there were parades and rallies, door to door candidacies, reaching every voter in the state. >> the ey

we know europe's debt crisis has a very direct impact on the u.s. economy. with europe's future still uncertain, how much influence do americans, does congress and president obama have on what's really happening around the world right now. >> not so much. look, a lot of people probably wondering how can a small country like greece and a bigger country like italy throw the entire globally economy into this turmoil. i think the answer to that is it's the first domino to fall. there's a real threat, you kind of get a contagion effect, if italy falls we're now seeing their interest rates rise on their bonds. this will affect other countries like portugal and spain and maybe france and germany. that's where the interconnection comes in. the united states, the banking system here is very interconnected with what's happening in europe. >> let's explore the contagion for a minute with chrystia. if i get the flu shot and you get the flu i'm not getting it from you. the issue of contagion is based on the fact that other countries do not have the back stops or ability t

alan greenspan was forced to admit that the u.s. economy was not growing as fast as he had assumed it would earlier in the year. in fact, he conceded, it wasn't growing at all, it had paused. it was greenspan who warned the president that the economy was so fragile that even a 15% increase in the price of oil might be enough to tip the u.s. economy and the economies of its trading partners back into recession with the risk of government failures and bank collapses. in the oval office that day, greenspan explain today the ambassador that oil prices had caused so much chaos that the lending flexibility of big banks had vanishes and financial networks around the world were stretched thin. he added that the huge increase in debts taken on after 1973 when oil consumers had tried to borrow their way out of the fiscal hole they found themselves in had badly shaken the confidence of markets, governments and big business. it was essential, he said, that the shah of iran show restraint on oil prices. when i first read that transcript more than four y

this is important for the economy. every year the holidays, two months of shopping makes up close to 20% of retail sales. and it's important for the economy. now our next screen, here is another bad sign. they are expecting for thanksgiving fewer air travelers than last year. you see the numbers are way down from 2006, 2007. that shows that people are pulling in and not spending a lot. overall, forecasting $467 billion in sales, up 3% over a year ago. in this bad economy, maybe that is something to be thankful for but it could be better. why? because consumer spending, 2.5% higher than a year ago. retail sales every month this year has been up close to 8% versus a year ago. maybe we're going to come in for a surprise. if they could manage the $467 billion, it would be up 3% but last year they were predicting awful, it came in 5%. so we could be in for a surprise. next screen -- also when sales are sluggish online is jammed. they are going to have 15% sales increase to almost $60 billion. >> how does the online retail sa

getting the cold shoulder as the g twenty summit wraps up and world leaders really help save the global economy. lukoil wait for the euro. to get through endless questions and changes and yet all eyes are on greece today as the prime minister prepares for a confidence vote so as this greek drama continues what will it mean for the global economy. when you come home you're full closure on your jobs gone. when you were to go to shelters. and they answered uncle sam's call when he needed help but as u.s. veterans head into a different type of battle uncle sam is nowhere to be found leaving the few in the proud to join the masses of homeless and unemployed americans if you can and look for the person who has nothing wrong in their background let me know when that example or what happens in washington doesn't necessarily stay there especially when it comes to the mainstream media's love for political sex scandals so should the politicians personal affairs affect his professional career and with more than a majority of americans saying political correctness has gone too far is it out with the old on

getting the cold shoulder as the g twenty summit wraps up can world leaders really help save the global economy. or wait for. endless questions and treaties. and yet all eyes are on greeks as the prime minister prepares for a confidence vote so is this greek drama continues what will this mean for the global economy. if you're going to look for the person that has nothing wrong in their background of you know or their example or what happens in washington doesn't necessarily stay there especially when it comes to the mainstream media's love for political sex scandals so should a politician's personal affairs affect his professional career and with more than a majority of americans saying political correctness has gone too far is it out with the old and in the way of thinking. it's friday november fourth four pm in washington d.c. i'm christine freeze out there watching r t well let's begin today with the g. twenty summit which has just wrapped up and it's been a little drama filled even before the g twenty started greek prime minister george hopkins rael was summoned by german chancellor angela

not extending the unemployment is going to hurt the economy. the payroll tax that helps the middle class so much is going to hurt the economy. letting the bush tax cuts expire, which we should have done that a year ago. that will create savings that can be used to shore up the existing programs and deal with the deficit. absent those kinds of decision making that we have been doing and absent a more general comprehensive approach to dealing with the economy and employment -- what we're not talking about is the fact that we should deal with the other side. people continue to get significant tax breaks at the higher income brackets in this country. $40 billion a year is still being given to gas and oil in subsidies. the list goes on and on in terms of loopholes for corporations, the capital gains tax. all those could be brought back to levels a decade ago and you would see this economy generate revenue that it needs in order to create real jobs and you'd also see the stability that i've been talking about. >> congressman, you mentioned the progres

that's the forecast for the u.s. economy for january through december, 2011. announced this week by the hair man of the board, ben bernanke. the fed as it's called released its projections for 2011, the bad news -- item, gdp, gross domestic product, all goods and services down from 3% projected growth for 2011 to 1.6% projected growth for 2011. item, unemployment up, from below 9% projected for this year to 9.1% now projected for this year. item, long-term unemployment up. currently unemployed will remain unemployed after the economy recovers. >> cyclical unemployment left untreated for a long time can become structural unemployment as people lose skills, attachment to the labor force, as their work networks dry up. >> last week, the u.s. secretary of the treasury, tim geithner, echoed chairman bernanke's overall assessment. >> it's still very tough out there. the people are very frustrated and still hurting growing fast enough. >> the u.s. unemployment rate came in late this week. it at 9% or higher. question, are policymakers around the world starting to fear

focus on the domestic economy we will see so yes focus on the domestic economy first there's not a lot that the united states can directly do but it is the right now well europe is able to take care of their own problems. contribute to the international monetary fund and the i.m.f. has given one hundred fifty billion dollars to the eurozone are you saying the u.s. should stop contributing to the i.m.f. . happy to continue to participate in world efforts like the world bank at the i.m.f. . so just focus on the domestic economy let europe take care of itself hello people we can't just sit here and act like we live in a bubble if italy goes down the european banking sector goes down our banking system is drug it will be a worldwide domino effect and yet all these candidates can say is focus on what's going on at home or we will bail them out you know mitt romney must have also forgotten that the fed gave trillions to foreign banks at the time of the crash in two thousand and eight anyway so scary issue number one the face of the world absolutely no answers for it so then see and be seen a

what is going on with the united states economy? dence numbers and spending numbers were coming in better than expected. the thought was things were chugging along well in the united states despite the problems in europe. this revision is the first indication that maybe things haven't been quite as healthy and as strong growth as we were expecting. it has people reassessing today. we'll see them bouncing up and down. the stock market is going to open 20 points when we open. >> 2% gdp growth is not the news we were expecting. thank you very much. we appreciate it. "the daily rundown" will be back in 30 seconds. do not go anywhere. >>> bottom of the hour now. quick look at what's driving the day. president obama visits new hampshire for the first time in nearly two years today. he's set to deliver a speech at manchester high school. convene in washington, d.c. for the 11th major debate focused on national security. investors hope for a better day of trading after the supercommittee failure made for a wild ride. >>> the chancellor at uc

more importantly, ali, 9% unemployment still, the u.s. economy creating jobs, 80,000, not near enough to bring the rates down or put confidence into people. are people here discussing the european debt crisis in the fine detail the leaders in europe are, the conversation you just had with sheila? no. are they aware it's a huge drag on the economy and not just the factory up the street? or the factory in the state next door? they are about that. when you travel the country and talk to people about their economic anxiety they talk about global pressures, more about china than europe but they're aware this is a big global problem. >> that's a very good point. china tends to be the focus but europe is, in fact, as a group the largest trading partner. what the implications may be the realization while everybody is mad at washington for what they did or didn't do right legitimately, the fact is the rest of the world may have a bigger impact on jobs back at home than congress can even. let's continue this conversation in a minute. john king, sheila bear

i don't think the economy actually gets that far at all because the people and the economy would be looking ahead. in fact, much more serious problems come sooner than we shall in these pictures. >> and they think he said that the government debt has become so high that you don't know what to do with it because private investment ceases to function and the economy ceases to function under that scenario, is that correct? >> ceases to function at some point. i think freezing up a, senator eshoo in those pictures because anticipation of that problem. >> and i think that announces really does go along with what other analysis have said to the country's gdp ratio when it exceeds 90%. i'm talking total debt to gdp ratio, that it reduces economic growth as others have said in their time by about 1% at that level. >> yes. i think the models we are using here are consistent with the consensus approach, estimating this sort of issue spent am i correct to say that our total debt to gdp ratio is over 90% at this time? >> yes, i think that is right, congressman. >> and what impact do you think these mas