sentiment. that raises alarm bells. reporter: another immediate concern is the impact of higher payroll taxes, which could force some households to cutback spending. in addition, gasoline prices are rising. and if they hit the psychologically important $4 a gallon mark, many consumers could also pull back on shopping. and long term, federal budget problems remain one of the biggest hurdles to growth. the u.s. is running an annual deficit of $1.1 trillion. we still have some fiscal speed bumps coming. and then we have the question of what they actually do on the fiscal side. so, right now, the economy and the fiscal situation are wrapped up into one really nasty ball of wax. reporter: keep in mind that many of the international problems that have existed for more than a year haven t gone away. slowing economies in europe and china could slow global growth. and conflict with iran could push up energy prices. erika miller, n.b.r., new york. susie: joining us now with m
sentiment. that raises alarm bells. reporter: another immediate concern is the impact of higher payroll taxes, which could force some households to cutback spending. in addition, gasoline prices are rising. and if they hit the psychologically important $4 a gallon mark, many consumers could also pull back on shopping. and long term, federal budget problems remain one of the biggest hurdles to growth. the u.s. is running an annual deficit of $1.1 trillion. we still have some fiscal speed bumps coming. and then we have the question of what they actually do on the fiscal side. so, right now, the economy and the fiscal situation are wrapped up into one really nasty ball of wax. reporter: keep in mind that many of the international problems that have existed for more than a year haven t gone away. slowing economies in europe and china could slow global growth. and conflict with iran could push up energy prices. erika miller, n.b.r., new york. susie: joining us now with m
to grow the economy, especially as they struggle with less take home pay, and worries about their jobs. while there are signs of improvement in the economy, the unemployment rate rose in january to 7.9%. so what is the current state of the economy? erika miller talked to two experts with different views. reporter: it may seem strange to many investors that the stock market can be hovering at five- year highs, when the economy is so weak. but what s fueling the rally is not the current situation, it s hope. we ve taken out some of the downside tail risks. so, we re feeling like although it s not going to be a boom-y year, at least it will be a year where we can reasonably expect that the economy will continue to, you know, make progress. reporter: he expects there will be a continued slow, but steady, fall in the unemployment rate. in addition, the housing market recovery is spreading. we ve seen a pick-up in household formation. so, more people are moving out of homes
captioning sponsored by wpbt this is n.b.r. susie: good evening everyone. i m susie gharib. tom will be along a little later in the program. fresh signs of a disconnect between what companies, and investors are seeing in the u.s. economy. we preview the economic state of the union. why regulators need to treat them like other business. then u.s. airways sees big benefits in merging with american airlines. we look at the new landscape for airlines if the deal goes through. we have that anmore tonight on nbr. president obama is preparing to deliver his first state of the union address of his new term, tomorrow. the american people will be listening carefully to his plans to grow the economy, especially as they struggle with less take home pay, and worries about their jobs. while there are signs of improvement in the economy, the unemployment rate rose in january to 7.9%. so what is the current state of the economy? erika miller talked to two experts with different views.
president obama is preparing to deliver his first state of the union address of his new term, tomorrow. the american people will be listening carefully to his plans to grow the economy, especially as they struggle with less take home pay, and worries about their jobs. while there are signs of improvement in the economy, the unemployment rate rose in january to 7.9%. so what is the current state of the economy? erika miller talked to two experts with different views. reporter: it may seem strange to many investors that the stock market can be hovering at five- year highs, when the economy is so weak. but what s fueling the rally is not the current situation, it s hope. we ve taken out some of the downside tail risks. so, we re feeling like although it s not going to be a boom-y year, at least it will be a year where we can reasonably expect that the economy will continue to, you know, make progress. reporter: he expects there will be a continued slow, but steady, fall in