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CNN Live Today

Bush to Host Forum Tomorrow

Aired August 12, 2002 - 12:43   ET

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

CAROL LIN, CNN ANCHOR: President Bush is out of sight in Texas today, but tomorrow he will be front and center at a conference aimed at jolting a stagnant economy.
CNN's Suzanne Malveaux joins us with a preview -- hi, Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Hi, Carol. It is going to be a busy day for the president tomorrow here at the Western White House, he likes to call it. He spent his first week clearing brush, going on runs, also holding a number of staff meetings, and today he is going to be preparing for that economic forum that is going to be held at Baylor University in Waco, Texas about 30 miles from his Crawford ranch.

We are told to expect some 250 participants, including not only top Bush administration officials, economists, academics, as well as small business leaders and farmers, we are also told to expect the president will highlight the positives of the economy, the low inflation rate, low interest rate, and positive economic indicators, but also to try to emphasize this is a forum for everyday normal folks, regular Americans who may be a bit fearful of the stock market, the declines as well as the sluggish economy.

Now, I have to tell you, already there has been some criticism about the forum before it has even started, mostly from Democrat lawmakers who have not been invited. They point to the guest list and a lot of the participants are actually big Bush campaign donors. They are accusing the administration of making this a big public relations show before the Congressional midterm elections. The administration is dismissing that, but there are some political analysts who are saying that perhaps he is trying to avoid the mistake that his father made when his father concentrated on the Gulf War and did not focus so much on the economy and lost his bid for reelection. They say, perhaps, he is trying to connect with the American people, preventing that kind of thing from happening.

Now, I do want to give you some good news here. This is the latest poll, it is a "USA Today" Gallup poll. It is an analysis of how Americans view the economy. Here, we have 31 percent who say they are actually unflustered by this, no worries about corporate corruption. They have been untouched by the stock market, 23 percent say that they are comfortable. They were stung by the stock market, but really have few financial worries. Twenty percent are described as stressed and stretched. They have been hit hard by the stock market, and view the stocks as a gamble. Sixteen percent are the strugglers. These are people who are unaffected by the stock decline because they have limited means. And finally, 10 percent are called the anxious optimists. They took a hit from the stock market, but they still believe that there is a bounce that is going to come back -- Carol.

LIN: So, Suzanne, is the president worried that the Fed is going to trump him tomorrow?

MALVEAUX: Well, you know, it is a very good question, because there are two things that are happening tomorrow and the day after that are really going to impact the economy. First of all, as you mentioned before, whether or not the Federal Reserve is going to lower the interest rates. Most economists believe that that is not going to happen.

But clearly, everybody is looking at that, and then secondly, the CEOs have been required through the SEC to actually verify their own books, their accounting, to make sure that they are accurate. Those results are actually due on Wednesday, and that is creating a little bit of a nervousness among folks, wondering if there are going to be other bombs that are going to drop later in the week.

LIN: Well, there you go. Nothing like a surprise when it comes to the economy. Thanks so much, Suzanne Malveaux, reporting from the president's ranch.

MALVEAUX: Sure.

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