This is CBS I on the world with John Bachelor.

Here's John Bachelor.

The American Economy, I welcome Elizabeth Peak, columnist at the Hill, Commus at Fox News, much on Fox Business, to comment about what's right in front of us, which is the question of the

American economy and the markets, all of the markets, the bond market, the equity market,

the commodities markets.

Here at mid-year, it's a campaign year and therefore

there are positive things to say about the economy. At the same time Liz has

written a column for the Hill where matter of factly, common sensically she identifies the problem

with the economy which is inflation not secured, not solved, the Federal Reserve is working on it very carefully, and the President

of the United States on the campaign trail, blaming the Republican Party for cutting federal spending.

Liz, let us review what we learned in 2023.

Federal spending causes inflation

and the inflation that we suddenly had to deal with in 2022 was a direct result of the lavish

spending of the Trump administration and then the Biden administration.

Is that now fixed a position on Wall Street

or does the president have some secret counselor

who told him spending is not a problem?

Good evening, John. I think we have come to the point where almost everyone who looks at the

budget numbers and so forth recognizes that federal spending is and has been out of control.

And I like to think of it in this way.

In other words, we had an emergency.

We had something that's never happened to this country before.

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