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CNN Live Today

From Wall Street to Main Street to Pennsylvania Avenue, Economy a Major Issue

Aired July 17, 2002 - 11:13   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
LEON HARRIS, CNN ANCHOR: From Wall Street to Main Street to Pennsylvania Avenue, the economy is a major issue.

CNN White House correspondent Kelly Wallace joins us now with the latest on the Bush administration's response, and an update on the president's agenda for today.

Hello, Kelly.

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Hello, Leon.

Well I can tell you that White House aides continue to get a bit defensive at any suggestion that the president's recent speeches have not turned the markets around. They continue to say that a president cannot turn the markets around, that this president will continue to be focused on economic policy, on other parts of making sure that long-term growth is strong, and also encouraging lawmakers to get a corporate responsibility bill to his desk by August, and they will say the markets then will take care of themselves.

We can tell you the markets, the corporate scandals and the U.S. economy likely to be subject of discussion during this only the second state visit of the Bush administration. President Bush welcoming his Polish counterpart, President Kwasniewski here to the White House. The two men earlier this morning on the South Lawn enjoying a formal ceremony, reviewing the troops. The president invited his Polish counterpart here as a reward to Poland for his ongoing support in this campaign against terrorism.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: From military forces to law enforcement, terrorist financing and intelligence, Poland's support solidarity in this great struggle has been unqualified, and America is deeply grateful.

(END VIDEO CLIP)

WALLACE: And the two leaders developed a strong bond when President Bush visited Warsaw, Poland last year. The Polish leader, in fact, one of the biggest defenders of President Bush, as other European leaders have been very critical, accusing Mr. Bush of taking a go-it-alone approach. As of this hour, Leon, the two men meeting, discussing a range of issues, the war on terror, the enlargement of NATO, and also, again, the U.S. economy, and just about 45 minutes from now, the two men in the East Room, Leon, going before reporters -- Leon.

HARRIS: All right, Kelly, just as if President Bush needed another bugaboo, here's one. Word coming from folks across the world saying there's not much unanimity among the so-called quartet, the leaders who are now trying to come up with a plan for the Middle East. The U.S. plan is now not necessarily being received with open arms there in regards to the U.S. stance on whether Arafat should be key player here.

WALLACE: Exactly. And fair to say the White House is trying to put out a very optimistic spin. In fact, Ari Fleischer the president's spokesman, announcing tomorrow afternoon, the president will meet here at the White House with the foreign ministers of Egypt, Jordan and Saudi Arabia. Fleischer saying in New York, this administration has been seeing -- quote -- "quiet signs of hopeful progress." When pressed about that, he said that the leaders in New York have been discussing things like new security arrangements between the Israeli and the Palestinians and focusing on humanitarian assistance to the Palestinian people.

But, Leon, the U.S. and allies still very much disagree over this administration's position, that if it believes Palestinian leader Yasser Arafat must go.

So, Leon, Mr. Bush will be face-to-face with some Arab allies tomorrow, and we'll see where that goes -- Leon.

HARRIS: Very good. Kelly Wallace at the White House, thank you very much. Good to see you, Kelly. All right, take care.

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