President and CEO of the U.S. Chamber of Commerce Tom Donohue joined Special Report for an exclusive interview just one day ahead of his State of the American Business Address.

Donohue had an optimistic outlook on the economy. “We’re making progress. We’ll probably end the year’s economic growth for ’13 at 1.8 to two percent growth. Maybe next year we could get to three percent at the end.”

He noted that the progress is better than Europe, but the U.S. still has a long way to go. “There are 21 million people who are either out of work or working part time and want to work full time, or they’ve stopped looking.”

Today, President Obama pushed for extending unemployment benefits. Donohue said the solution to creating new jobs is through policies that drive economic growth and deal with infrastructure. “Why don’t we just go do the XL pipeline. We can create a large number of jobs, and it’s being held hostage by what? By a political process that’s saying I don’t want to deal with that issue.”

Hear what Donohue had to say about immigration reform and health care in the interview above!