Special Guests: Glenn Hubbard - Mitt Romney Economic Advisor

NEIL CAVUTO, HOST: All right, Mitt Romney could be on the verge of taking a state that he was not expected to win until a few weeks ago, when a lot of the conservative candidates were sort of dividing. And then along came Mitt Romney to the do the conquering, maybe. At the very least, most expect the former Massachusetts governor and presidential candidate to at least do well in Iowa and set the stage for a New Hampshire win, especially if this guy has anything to do about it.

Talking about a money team of gravitas. Glenn Hubbard joins us now, of course a former White House economic adviser. And I did not mean to embarrass you, Glenn, to say that you could take any post you want in a Romney administration. Would it be Treasury, if we want to get this out of the way right now? Would it be Treasury?

GLENN HUBBARD, ROMNEY CAMPAIGN ECONOMIC ADVISER: I'm not thinking about that, Neil. I'm just thinking about Governor Romney's policies for the economy. I think he has got a great agenda. And It think it explains why he's doing so well.

CAVUTO: Yes, but early on, you joined the team when it didn't look like he would be the nominee. I don't know how these things go, Glenn, but do you envision returning to Washington? Washington is a big sacrifice in terms of pay and all of that. So it's a lot you give up. But you could be a cabinet official. That never came of?

HUBBARD: I think the important thing is getting the right person in the White House. I don't think that person is Barack Obama. I think it will be the Republican nominee. And I think and hope that that will be Mitt Romney. It really takes understanding how the economy works, coming up with the right policies and having the skills to implement them. Governor Romney can do all three.

CAVUTO: You know, Glenn, I thought about that. And you and I have chatted on this kind of issue before. But the issue of a former well schooled, finance, business guy, turn around -- corporate turn around professional, taking over in the public sector; it is night and day. They are used to calling the shots, making the tough decisions, taking the heat. But now they have to share that responsibility with an often moody, recalcitrant Congress, all these other parties within your party, and that business types especially can't do that.

Maybe with the exception of Michael Bloomberg in New York, it is a tough adjustment. And just when you expect they're going to be on fire and be perfect, they're not.

HUBBARD: Well, it's tough, Neil. But Governor Romney has had experience not only in business, but as a governor of a state and as a leader in the social sector. What's special about him is not so much that he's a business person, but he knows how to execute ideas. And he has really got the right ideas and the right policies, and the ability to do them.

CAVUTO: But business titans tend to be pragmatic in their approach.

That's what gets the conservatives upset in the party, that he might be open to a tax increase, pull a Bush senior, and do something that he said in the campaign he wouldn't do. Is there a real possibility of that?

HUBBARD: I don't think that's right at all. In fact, I think Governor Romney is the only one of the candidates that has an incredibly spelled out, incredible spending restraint policy. Many of the candidates have talked about it and thrown out numbers, but have not been specific.

Governor Romney has done that. He really has the credible, conservative fiscal package.

CAVUTO: Glenn Hubbard, we'll watch closely. Thank you. Good seeing you again.

HUBBARD: Thanks.

CAVUTO: All right, many, as I said when I was talking to Glenn about the conservatives in the party, particularly the Tea Party -- they are still not too hot about Mitt Romney. They don't think he has the religion or the zeal to address issues near and dear to them.