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CNN Live At Daybreak

What's on Tap for D.C. Today?

Aired August 13, 2002 - 06:08   ET

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

CAROL COSTELLO, CNN ANCHOR: We did mention the president's economic forum in Texas today, but there are other things on the President's agenda as well.
Our Washington deputy bureau chief, Steve Redisch, joins us live on the phone.

Good morning -- Steve.

STEVE REDISCH, CNN WASHINGTON DEPUTY BUREAU CHIEF: Good morning, Carol.

COSTELLO: First up, I guess we have to talk Waco and the president.

REDISCH: He will be there, along with some 250 other economists, experts in financial markets and everyday people, like truck drivers and firemen and people who -- small business owners who are on the front lines of the economy, as he would put it, or the White House would put it, for a listening-and-learning session, as his aides call it.

One of the other things the president is expected to do today is announce that he is going to reject a $5.1 billion emergency funding plan by Congress. Some of this money is supposed to be earmarked for homeland defense. Other parts of the money is supposed to be going to AIDS research and Israel and the Palestinians, and the president is rejecting it to show that he is going to be fiscally responsible.

COSTELLO: Well, this should create quite a battle in Congress amongst Democrats and Republicans.

REDISCH: No doubt. It's part of a bigger emergency spending bill for homeland defense and for the war on terror. But this $5.1 billion was a reject-it-all or take-it-all kind of deal that Congress has put, and it will be a campaign issue come September, October and November.

COSTELLO: I know, and you still have to wonder about the president's long-term tax cuts.

REDISCH: That will no doubt be part of the political equation, not just this year, but also two years from now, as will the president's plan to privatize social security.

COSTELLO: Interesting times in Washington. Let's talk about the Fed meeting today. Do you think that Alan Greenspan will lower interest rates?

REDISCH: I think interest rates -- well, interest rates are at the lowest point in quite a while. Wall Street insiders are saying that they do not expect any lowering of interest rates, although Wall Street would love to see that. But with interest rates as low as they have been, don't expect much movement from the Fed, although they could say -- they could point to some sort of benchmarks as to say what might prompt either a rate, a raise or a lower of interest rates.

COSTELLO: Well, we hear a lot of bad things about teenagers, but you've got something good for us.

REDISCH: About 250 teenagers are participating in what's called the Seeds of Peace Program. In previous years, this put Palestinian and Israeli teenagers together here in this country for a couple of weeks in trying to learn more about each other. This year, Israeli and Afghan and teenagers from the Balkans are going to be here in Washington, and they're going to visit the Holocaust Museum as part of their -- part of their two-week program.

COSTELLO: It sounds good. Well, you have a busy day, Steve, so we'll let you go, and thanks for joining us. We'll catch you tomorrow.

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