that means weaker u.s. dollars, probably higher gold, and they don t want to hear that necessarily, but right now the market is still pricing in the possibility qe3 could be mentioned and the european debt ceiling could get worst. hate to give you the bad news from chicago. neil: well you did anyway, thank you, sandra. now, when the banks downgrade you, you have to worry, with j.p. morgan cutting growth projections down 2.5 percent and for the quarter of next year, to .5 percent from 1.5 percent. we have the guy who did the cutting. and he is glue shall. when he moves markets follow. today they followed south. michael, chief economist at j.p. morgan chase. obviously you moved down the estimates. why? guest: well, the evidence
slogans. we don t need more slogans, we need leadership right now. this is not time to assign blame, who is to blame for this. or that, it s time to fix the problem. right now the federal reserve, they ve been carrying this economy on their back since day one. you know, let s face it the only reason the economy has any signs of life is because of the fed and quantitate taeu quantitative easing. they have squelched hiring, the only reason we have any life in the economy is the fed. that s why we re seeing the market come up. they are hopeful ben bernanke can pull another rabbit out of his hat. jenna: let s see if he can do it. phil, we ll be watching what the fed has to say. thank you very much. something else we ll be talking about, jon, quantitative easing some say is really stimulus. we ll have neil cavuto about that in a little bit. jon: we re going to take you
really to boost the economy? anything, we are joined live by phil flynn. what is next, what are you watching for? you know what i ll tell you right now the fed has to send a strong message to the market today. i ll tell you what, right now you may have lost your full faith in the crucify the united states but right now it looks like the market has their full faith in ben bernanke and i think that s why they are bringing the market back up today. at least right now a lot of people believe that the fed is going to have the right words to convince this market to cool their heels, that everything is going to be just fine, and they have the tools and the arsenal. two big tools that the market is talking about today, the one we ve heard quite a lot about, jen, as you know it s quantitative easing, that is basically the printing of the money, the buying the bond market. but a lot of traders are talking about a potential different way to do it this time, not the same way we did it last time,
agencies, which are sounding the alarm as the deadline gets closer. for more on what all this means, we bring in cnbc s steve sedgwick live in london. good morning, steve. good day to you. moody s joining s&p in saying, look, guys, if you don t raise this debt limit, which you reached on may 16th anyway, at $4.3 trillion, there s a threat you re going to lose your aaa rating, which means people are not going to want to hold what s been seen previously as ultrasafe bonds. what boosted the markets before that was ben bernanke, who s been appearing on capitol hill and actually said the economy is in worse shape than expected, saying the possibility remains that the recent weakness may prove more persistent than expected and that deflationary risks might reemerge, implying additional policy support. that additional policy support could be some form of qe3, more quantitative easing, and people assume after qe# in june, that