omniNate

WHEN: Thursday, July 31st at 10AM ET
WHERE: CNBC's "Squawk on the Street"

Following is the unofficial transcript of the CNBC EXCLUSIVE White House Summit on CNBC's "Squawk on the Street."

All references must be sourced to CNBC.

BURNETT: ALL RIGHT, RIGHT NOW, OUR SENIOR ECONOMICS REPORTER STEVE LIESMAN SITTING DOWN WITH THREE OF THE BUSH ADMINISTRATION'S TOP ECONOMIC ADVISORS FOR OUR "SQUAWK ON THE STREET" WHITE HOUSE ECONOMIC SUMMIT. TAKE IT AWAY, SIR STEVE.

LIESMAN: THANKS VERY MUCH, ERIN. YEAH, IT'S INTERESTING THAT WE ARE CELEBRATING THE ANNIVERSARY -- WE'RE NOT CELEBRATING, WE'RE MARKING, AS MARK SAID, THE ANNIVERSARY OF THE CREDIT CRUNCH HERE, AND WE HAVE THE TOP ECONOMIC TEAM HERE OF THE PRESIDENT. ON MY LEFT HERE, ED LAZEAR, CHAIRMAN OF THE COUNCIL OF ECONOMIC ADVISORS, JIM NUSSLE, THE NUMBERS, THE MONEY GUY, OFFICE OF THE BUDGET, AND THE DIRECTOR OF THE NATIONAL COUNCIL, KEITH HENNESSEY. LET ME START WITH YOU.THE GDP NUMBERS CAME OUT THIS MORNING.THEY WERE BETTER THAN THE FIRST QUARTER BUT NOT AS GOOD AS EXPECTED.GIVE US YOUR FIRST TAKE ON THOSE NUMBERS.

LAZEAR: WE'RE QUITE HAPPY WITH THE NUMBERS. THE 2%, ALMOST 2% GROWTH THAT WE GOT THIS QUARTER, IS, AS YOU MENTIONED, DOUBLE WHAT WE HAD IN THE FIRST QUARTER.IF YOU LOOK BACK TO WHERE WE WERE AT THE BEGINNING OF THIS QUARTER AND YOU LOOK AT CONSENSUS EXPECTATIONS, AT THAT TIME PEOPLE WERE TALKING ABOUT 0.1% GROWTH.THAT WAS AFTER THE STIMULUS PACKAGE HAD ALREADY BEEN ENACTED. SO, WE ARE UP WELL ABOVE THAT RIGHT NOW, AND I THINK WHAT THAT IS IS IT'S A SUGGESTION THAT THE ECONOMY IS RESILIENT EVEN IN THEFACE OF VERY STRONG SHOCK. WE'RE ALSO ENCOURAGED THAT EVIDENCE SUGGESTS THAT THE STIMULUS IS WORKING.WHAT WE'VE SEEN SO FAR IS PEOPLEARE SPENDING THE MONEY, BUT THERE'S ALSO MONEY LEFT TO BE SPENT, AND WE EXPECT THAT THAT WILL CONTINUE TO BOOST THE ECONOMY IN THE SUMMER QUARTER AND ALSO THROUGH THE NEXT QUARTER.

LIESMAN: JIM NUSSLE, DOES IT MEAN WE'VE AVOIDED RECESSION HERE?

NUSSLE: I THINK THE GOOD NEWS FOR ME, AT LEAST, IS THE GROWTH -- FIRSTOF ALL, GROWTH IS ALWAYS GOOD. GROWTH IS BETTER THAN THE NEGATIVE, THE PESSIMISM THAT WAS GOING ON THROUGHOUT THE MARKETPLACE, AND FOR THAT MATTER, THROUGHOUT WASHINGTON.GROWTH IS MUCH BETTER THAN A RECESSION.SO, I THINK WE HAVE AVOIDED A RECESSION, IT APPEARS, BUT THERE'S STILL CHALLENGES. WE KNOW THAT ENERGY IS A CHALLENGE, ONE THAT WE'RE CONSTANTLY WORKING ON, ONE THAT THE PRESIDENT HAS PUT OUT POLICYON, AND ONE THAT WE'RE CHALLENGING THE CONGRESS TO GET BUSY ON.

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