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Think he is in our Washington DC bureau and John Challenger of challenger gray and Christmas is joining us on the and good morning to both of you down much.
Garnett and John -- want to start with you first what do you expect from this jobs report based on these layoffs report.
You collect every month -- again that -- just to remind people.
That -- report first half of the year layoffs were down 9% but in June from may -- jobs.
Roughly 8% so -- you looking for this morning.
Well I do think there's a little more pressure -- from those extra layoffs.
-- on employer suggested that some were letting people go.
That may mean.
You know that that we're in this deposition.
They don't want our porch too hot we don't -- to call we -- -- -- 65000.
Jobs which is right in the middle.
For the economy.
To balance between the -- and demand for growth so hopefully.
We will see that you -- is it just don't know how many do people are gonna come into the economy.
-- I'm looking for jobs have been sitting on the sideline that was put some pressure on the unemployment number.
But the job creation I think is the key especially the private sector.
That's -- -- play and -- over -- new web very sluggish economy we have.
Is there any reason to think that job growth could pick up significant way.
Well a lot of economists until last week where you know predicting up.
Maybe one point 8% growth for the second quarter 2.2 percent and then a little bit better going at the second half.
But we have to acknowledge conditions.
In Europe Japan and China -- playing -- now on the US economy.
The may trade data indicated -- huge jump in the trade deficit driven by.
More imports from China.
They basically dumping their unemployment here and then there's of course the monetary policy in Japan which doesn't seem to be working as well as they like.
And Europe's our biggest export market and look what's happening in Europe the signs of recovery are still lot appearing.
With that in mind I don't see a really robust second hand.
But that doesn't mean the Fed won't tighten you know based mr.
Bernanke keeps saying he looks -- data you know what that piece of data I think he's looking at most.
-- the jobs report his exit date.
Because she doesn't want to bequeath this program to the next Fed Chairman look for the president I think in that context to move quickly.
Perhaps -- Janet Yellen -- -- habits of elected Nancy Pelosi and more inclined to print money -- Chuck Schumer I mean it may be part of an -- If that's the case Bernanke will have to defer to -- sentiments well you'll be dealing with.
If the chairman elect I'm not as you know right there I -- I changed things a lot I'm not sure our willingness to print money and keep the stimulus programs in place has anything to do with the political persuasion -- Ben Bernanke himself was appointed by a Republican and was a Republican even though I was.
Colleagues had no idea hey that John before we I'm go to break I didn't want to ask you.
About the Federal Reserve what's shocking to me in his seems almost insane.
If you tell you some investors they almost would rather see it -- job growth because it means that the -- reserve.
Keeps this bond buying in place because they're so deathly afraid of it even beginning to beginning to go away when you make of that.
-- you know there's still no.
Real -- that this economy is.
Turning you ought to solve this engine is just an economic engine is -- There's more.
Believe that the reason our economy is growing at just.
Tablet -- 2% -- -- is that that government is stimulating the economy we didn't see over 101000.
Now 101000 to 53 and -- this year due to sequestration.
As -- -- government cuts so that slowing down economy until.
Well gentlemen thank you for being here ride right now and we will check in with you later again we are almost twenty minutes away from that jobs report thank you so much bigger John --
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