This is a rush transcript from "On the Record," May 18, 2010. This copy may not be in its final form and may be updated.

GRETA VAN SUSTEREN, FOX NEWS HOST: So what does tonight mean for President Obama and the Democrats? Joining us live is Democratic pollster Doug Schoen. Doug, good evening. And while...

DOUG SCHOEN, DEMOCRATIC POLLSTER: Good evening.

VAN SUSTEREN: ... many may have expected it, this Specter loss is a huge shift, is it not?

SCHOEN: Absolutely, Greta. This is an anti-Washington, probably anti-Obama vote that makes clear that incumbency and being a Washington insider or a political insider is just not good.

VAN SUSTEREN: And of course, I should tell the viewers that are looking on the screen that Senator Arlen Specter, who is speaking to his supporters now, and to listen in, viewers can go to -- log on -- they can log on to Foxnews.com.

Doug, what does this mean? Is it -- I, but you had Senator Bennett losing a few weeks ago. So is it so -- is it anti-Washington or is it anti-Democrats?

SCHOEN: It's both. I mean, there's clearly anti-Washington sentiment. On the Republican side, it's tea party movement. On the Democratic side, it's more liberal anti-systemic sentiment. In November, what we're going to see I think is anti-Democratic sentiment because the Democrats control the executive branch and Congress. But there's a lot of anger on both sides of the aisle. That's for sure.

VAN SUSTEREN: What about the fact that President Obama did not go to Pennsylvania and campaign for Senator Specter? I guess most people thought that it would -- you know, that he didn't want to go and then lose. But he did throw his weight behind Senator Specter. Loyalty not a component of politics?

SCHOEN: Well, loyalty is not necessarily a component, given what Major Garrett reported today about what the administration was saying about Senator Specter serving their interests. And from his point of view, the black vote in Philadelphia did not come out big enough or strong enough to get him the votes he needed. He could have used President Obama there. He didn't have him.

VAN SUSTEREN: Well, if he could have used it -- I mean, if there -- if the African-American vote in Philadelphia is a significant bloc, and it is, and it might have made the difference, what does President Obama say to Senator Specter? What does Senator Specter say to President Obama and to the White House staff if could be sort of the linchpin? Because this is a Democratic seat that it's possible will go Republican in November.

SCHOEN: Well, Greta, what they say in politics is, What's next? And I think the question might be, Senator Specter, you've served us well. Where would you like to go in terms of your ambassadorial appointment?

VAN SUSTEREN: All right, let's go to Kentucky. Rand Paul, who won in Kentucky -- does that shake up the Republican Party and tell the Republican Party -- because Senator Mitch McConnell endorsed and was behind the candidate who basically got trounced on tonight in Kentucky?

SCHOEN: Greta, I don't think you can underestimate the importance of this victory. It's a win for the tea party movement. It's a rebuke to Mitch McConnell, John Boehner, the entire Republican establishment. And it explains how angry, indeed, voters on the center-right spectrum are towards politics in Washington.

VAN SUSTEREN: So both parties are getting a little bit of medicine tonight. They're both getting a lesson. Are any of them going to likely take any of this to heed as they look forward to the mid-terms in November?

SCHOEN: I think the Republicans know they have to be anti-systemic, anti-Washington, pro-small government. The Democrats haven't figured that out, and if you they don't move to the center, they're going to pay a huge, huge price in the mid-term elections.

VAN SUSTEREN: Doug, thank you. And of course, I expect and hope you'll be joining us throughout this election season because it is just heating up. It is -- it's going to be a hot and fascinating race. Thank you, Doug.

SCHOEN: Absolutely. Thanks, Greta.

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