[Suzanne Malveaux, Cnn Anchor:] This hour in the CNN NEWSROOM, we're focusing on politics, the economy here at home. I want to get right to it. A fallout over a botch gun running sting escalates at a whole new level. We are talking about right in the middle of it, attorney general Eric Holder. The House committee is holding a hearing right now to consider a contempt citation against Holder. Committee chairman, Congressman Darrell Issa demanding more documents related to the failed gun sting known as Operation Fast and Furious. The situation escalated when President Obama invoked executive privilege over these documents that Issa is asking for. Triple digit temperatures expected this week in the Northeast, hottest we have seen all year. Remember, you've got to drink plenty of water, limit your sun exposure, wear some light clothing. Things should cool down by the weekend. More now of the legal and political showdown of the botched gun running sting operation. President Obama and the White House, they are now involved. The House oversight committee is considering a contempt measure against attorney general Eric Holder. Chairman Darrell Issa, he is demanding more documents related to Operation Fast and Furious. It was an attempt to track weapons purchased by Mexican drug cartels, but the Bureau of alcohol, tobacco and firearms lost track of more than 1,000 weapons that were carried across the border. Two of the guns turned up at the scene where a U.S. border patrol agent was killed. Kate Bolduan is following all developments on Capitol Hill. Kate, first of all, explain to us, why did the White House feel that it needed to get involved?
[Kate Bolduan, Cnn Congressional Correspondent:] Well, the White House has gotten involved because they believe that some of these documents these documents that are in question, they are sensitive in a deliberative nature, that they fall under kind of the per view of executive privilege. They are important enough to kind of be interworkings of the executive branch and its communication the president's communications with his advisors that they do not think it should be part of this investigation. In this letter, Suzanne, that the deputy attorney general sent to Darrell Issa, the chairman of the committee, just today before the hearing, he lays it out pretty clearly. He says, we regret that we have arrived at this point after the many steps we have taken to address the committee's concerns, and to accommodate the committee's legitimate oversight interests regarding Operation Fast and Furious. But he goes on to say, although we are deeply disappointed that the committee appears intent on proceeding with a contempt vote, the department remains willing to work with the committee to reach a mutually satisfactory resolution of the outstanding issues. They're trying to say there that they may be leaving room leaving some room there to work out some kind of a resolution there, but make no mistake, they are moving forward with this contempt vote, and the chairman of the committee feels differently about what this contempt what this executive privilege assertion is than the White House does.
[Malveaux:] OK. So, where are we in this hearing process are we? Are they ready to vote?
[Bolduan:] This hearing has gone on very long. It started just after 10:00, about 10:20 this morning, and they've gone with whomever every member of the committee, if they want to, can have their time to talk and they have been taking it. They are going back and forth. Not surprising what you are hearing, very much along the political lines,, Democrats saying that they believe this is a witch hunt against the administration and the attorney general Republican saying this is that the administration and the attorney general has been stonewalling them as they have a legitimate role of oversight and are trying to investigate what happened with this botched operation. They are continuing with going back and forth and taking their time to speak. We are told that they will recess, they'll kind of take a break after everyone wraps up, and then the assumption is they will vote. But in terms of timing, it is anyone's guess.
[Malveaux:] OK. And also, you know, there is lot of discussion here, and people are talking about the constitutional crisis, it could go to the Supreme Court. Do you get the sense that people there want to resolve this thing and not have it get to escalate to that point? They might take a step back?
[Bolduan:] And it really yes. Honestly, it depends who you speak with. I will say that both sides, when I speak with them, they say they want to avoid this it was the chairman of the committee said he wants to avoid this contempt citation. He just wants the documents. If you speak, though, to the top Democrat on his committee, he came out saying that it appears that the chairman, in his view, is going towards this contempt citation no matter what came out of that meeting that they had last night to try to resolve their differences. So, it seems, as is always, up here on Capitol Hill, it depends on who you speak with. But make no mistake, this has gone from a political showdown to a full scale battle between the administration and Congress. And it's this has become a big deal, to say the least though.
[Malveaux:] Big deal indeed. All right. Thank you, Kate, appreciate it. Much awaited fed announcement in that's a big deal, too. After two days of meetings, the fed decision to put $267 billion into a program to swap short-term bonds for longer ones. The idea is, basically, to keep interest rates low. Alison Kosik, she's at the New Stock Exchange to kind of explain what did the fed announce and how folks are reacting?
[Alison Kosik, Cnn Business Correspondent:] Well, here's what's interesting. If you look at the board, you wouldn't really think that a big announcement even happened. Stocks are higher right now. You know, when the fed came out with this announcement that it's extending what it called Operation Twist. You did see the markets plunge, the Dow actually fell within minutes to 92 points lower. And now, it's obviously, it's come back, the Dow is up 17 points. And what it did was once again, it extended this Operation Twist. What essentially that is is when the fed the federal reserve sells the short-term treasures and use the proceeds used the proceeds from that to buy longer term ones. The whole bowl in this is the pushdown long these long-term interest rates and what that does is it makes it cheaper for businesses to get loans and consumers to get mortgages and other credit. But this has been going on since September, October of last year. And one analyst that I just talked with said, you know what part of the problem is with getting the economy going is you can't force borrowers to borrow money, and you can't force the banks to lend. And this is the whole point of Operation Twist by getting these interest rates lower. You know, why borrow? At least businesses feel, why borrow when the economy is slowing? And then there comes the question, Suzanne, how effective has it been so far since it's been in effect since September? But clearly, the market is not too upset about it, really exactly what was expected to come out of the fed today Suzanne.
[Malveaux:] And market analysts, what are they making of what's happening?
[Kosik:] Yes. You know, some say you know, some are questioning whether or not the feds should have done more, but then you sort of turn the whole picture around that if the fed did something more dramatic and it makes everybody step back and say, well, wait. You know, is the economy worse off than we thought? You know, is this why the fed is taking such dramatic action? So, by the fed kind of keeping the status quo, because it's going to basically keep things going the way it's been going until the end of the year, it is what is more of a wait and see sort of attitude that you are seeing. And then others say, you know, this could be enough to keep things afloat while the economy tries to recover on its own, while we wait for things in Greece and Spain to kind of level off there as well. You know, because a lot of the people question, Suzanne, whether it is the fed's role to prop up the economy when things are really bad Suzanne.
[Malveaux:] All right, Alison Kosik. Thank you, Alison. Here is what we are working on this hour [voice-over]: Uncertainty and fear in Egypt with reports of Hosni Mubarak's near death. And Egypt's first re-election still up in the air. And would you like your meat without [INAUDIBLE.] One group's push to require all grocery stores to carry antibiotic-free meat.