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tv   Cavuto Coast to Coast  FOX Business  August 26, 2022 12:00pm-2:00pm EDT

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ashley: 25 seconds. we asked who was the youngest first lady. >> jackie kennedy, number 2 with? . ashley: susan? >> francis cleveland. ashley: well done, the answer is francis cleveland, she was just 21 years old when she married grover cleveland who was 27 years older, they married at the white house in june 18, '86. take that away. i leave the markets down for neil cavuto. neil: cleveland was the only non-concurrent president we had. fascinating. that is my life there. thank you very much. great seeing get you again. on major selloff going, blame this on jerome powell at jackson hole annual conference
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and warning people about getting too cozy about the inflation situation. >> likely be some softening of labor conditions while higher interest rates, slower growth and soft labor market conditions bring down inflation and some pain to households businesses. these are the unfortunate costs of reducing inflation, failure to restore price stability. neil: it was a lot like this another remarks on ongoing pain from these ongoing rate hikes but not -- he might keep those rates where they are for a wild and we will get into the weeds on this, daniel booth, former dallas fed advisor and larry blaser, out to you first, you
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guys are very good at fed speak, but this isn't fed speak, this is pretty direct. we are not giving up the fight and you might be thinking we are, not so fast. what did you take from these remarks? >> consistency. these last few weeks they have been denying what powell has been saying, one thing that did strike me as across-the-board whether it is district presidents or powell they are saying they will raise interest rates and keep them there and that is not what we are accustomed to. the last 40 years since alan greenspan took office we are in customs to a federal reserve it gets interest rates high and people go that hurts and i am so sorry and they bring them down quickly, we are not there, they are saying they will bring them up and keep them up.
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neil: the focus is bringing inflation to what it was, 2% and lower than that, interest rates, looking at the math and figuring 8.5% inflation, a long way to go. >> the fed chair has its work cut out for them. don't let the wonderful scenery in jackson hole, this is no vacation for jay powell, getting very little help from washington with continued spending and when you tell the american people on a friday in the summer ahead of midterm elections that there is more pain ahead as they it into winter heating season and back to school, not going to make friends, no surprise the financial markets blue upon his speech today but recognize there are limits to what he control. i appreciate his genuine nature making the 70s and 80s analogy,
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he doesn't want to be arthur burns, he wants to be paul volcker but he because two recessions, the you want that? that's the conundrum, he reset expectations and the market is trying to pass that into the rest of the year. neil: for those not knee-deep in this, picking paul volcker did a lot of good, he lost the election, that was then. where are we now on this thing? where do you think the fed goes? the percentage of people thinking we will see a hike in september, the next meeting is overwhelmingly of that mindset? do you agree? >> for him to be talking this tough to larry's point we are in front of the midterm election, he will plow right through, despite the fact that it is november. the one that follows is six
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days before election day. stuart: will he continue this? >> that is what he is saying and he is saying he's going to plow through into 2023, and this is astounding jay powell, he was a political potato for a while. biden was or was not going to reappoint him. now that he has reappointed, he's exercising full veto power the way paul volcker did in the same spirit. we forget paul volcker suffered mutiny on his own federal reserve board and got death threats and yet held steady. that is who powell hopes he can make his legacy be. neil: markets and stocks down across the board, utilities were escaping is that but i could be wrong but the fact that it is so widespread, wouldn't the market instead like what he is doing, if
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you're going to be vigilant on inflation and this is our existence even if it slows things down a little it is worth that, used to be a view of this, what do you know? >> in the long run, the markets appreciate the fed is trying to restore credibility and order to the markets and the bond market, the 10 year appreciated that, the financial markets want the easy money, a lot of wishful thinking going on, cpi inflation picked up, everything is going to be fine, the world is going to be easy and the fed will come to our rescue, that is misguided and will be different as we get into the back half of the year but the fed restore incredibly is the most important thing for the country. neil: flashing it here, rates will rise until the job is done. what defines the job being
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done. >> the job being done means cutting inflation from 8.5% all the way to 2%, not flirtation with 2%, that we are almost there or there, that is long time from now. neil: could be at least a year or more. >> correct. neil: just lost my appetite. thank you, don't wander too far. want to pick those brains, connell mcshane joining us not on the with the impact of this but other headlines swirling around on a busy newsday. >> reporter: the market is focused on how aggressive chairman powell was, how restrictive for period of time and it comes a day when the data actually shows inflation easing up. i want to add context, on the
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consumer prices, 6.3% was the level of increase, that is still high but this number, the headline price index does have a long way to go to the point danielle was making, 2.3% inflation but the good news baked into this number seems to show what the fed is doing is starting to have an impact was in the core pce index taking food and energy out there we saw only again of 4.6% or 4.6% rate of inflation compared to a year ago. that was less than expected and 0. one% when you do a month from the next so this is the core number where the fed zones and on this and looks at it to see how effective they are and if you want some context, running much hotter earlier this year, this is 5.
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3% rate in february which at the time was a 39 year high so you can say progress is being made down to 4.6% but more work needs to be done so let's talk about the consumer and what we learned, commerce department reported spending went up not by much at all. that was below expectations and incomes also went up but not as much as expected. the final point the consumer from the university of michigan, did reserve the consumer sentiment number higher compared to what we saw in the freeland number, that topped expectations, 58. 2 but even in that the inflation expectations were revised lower so that was in line with the data of the day on inflation that it is still high but there are signs that it started to ease up a little bit that adds to the argument that some are still making that may be we have seen a peak in
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inflation. to pick up on that, don't think the fed chairman contradicted that when he goes on the we need to show resolve, we knew that coming in. if your 6% got to show resolve, the data today did show the trend started to move in the right direction easing up on the inflation front. neil: connell mcshane on all of that. people noticing, watching, trying to parse everything we heard from the chairman of the federal reserve, the big news is you are in one of the most gorgeous parts of the world, jackson hole and speaking in front of a wall that looks like my parents family room, just me and the drama building today wielded something more. but this, i can see my dad's old tv set so not even
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thinking. steve moore who takes more serious approach to things and notices more substantive matters, good to see you. this policy the chairman is driving home seemed to indicate we are not leaning on the pedal and will continue driving it home. when we get to where we once we will hang around for a while. >> this was a good statement by chairman powell. i've not been the biggest fan of his but he said something i have said on your show for 10 months which is you got to get ready to cancer - cancel inflation, that's job number one and if you have some chemotherapy that will cause some problems but you've got to do it and he sounded more resolute today than i ever heard him in saying fighting inflation is job number one and that should be the primary job
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of the fed so i was hurting by what he said and think it is interesting, i don't know if you like those words about inflation before the numbers came out because we did see it. >> maybe your medicine is working before you apply more aggressive medicine maybe you should see how this is going, people can differ on that but what do you think? >> we had two months of better inflation numbers but still not out of the woods by any means. if you look at these markets look what happened in the natural gas price, it is up to 10. it was three when trump left office so you have lingering problems with inflation. the main reason we are getting better numbers, this accounts for most of the reduction in the inflation rate has been
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reduction in gas prices and some of that is due to the fact that people are using less energy because it is so expensive people are not driving as much. i wouldn't want to be the fed chairman but i agree with him we've got to keep tightening until you drain the inflation out of the system and i remember you talking about paul volcker, who made a kind of famous statement there's going to be some blood in the streets, he was saying that metaphorically, then kept raising those rates but we did drain the inflation out and that story did have a happy ending, but we had a 30 year boom in the economy and a boom in the stock market, the dow jones in 82 at a low point of 800, now 34,000. neil: sometimes it takes 2 of the 1-numtwo punch, he went after inflation, ronald reagan
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comes along with these aggressive tax cuts, from bust to boom but one after the other, how they worked in tandem. >> are really important point, one thing i would like to see out of jerome powell that had been the pattern of paul volcker and greenspan and other fed chairman of late is to be a voice for his fiscal sanity and to say this spending $4 trillion, if we do this insane forgiveness of the student loans and the chips bill and the bill they passed for healthcare and $3 trillion spending last year and under trump, talking for $5 trillion we pumped into the economy and if you keep doing that -- it doesn't matter what jerome powell does because it will
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have an inflationary effect. we've got to have spending, we've got to raise rates but bring government spending down and i don't see any indication that is happening in washington. neil: thank you, have a good weekend. you knew jerome powell was speaking today but also heard the justice department was going to release the redacted affidavit by noon time, how much would be released, here it is, 15 minutes after the top of the hour and we don't have that report out but it is -- behind the fbi raid on donald trump's home in mar-a-lago. we are waiting for what gets released and what we learn about that. still waiting. ♪
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neil: in the history of this country we've never seen anything like it. a former president's home stormed by fbi agents, hundreds of documents, thousands of documents and other
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information, precipitated by something, we don't know what the something was. we might get a better indication what prompted that raid but we are still waiting and waiting and waiting, the justice department will release the redacted affidavit but again it is yet to materialize, where is all of this going? >> reporter: the doj met its deadline to submit the redacted version of the affidavit by noon today and we are waiting for that to be unsealed but we did get an unsealed document where the doj laid out their reasoning for why they want certain redaction's in the affidavit and that justification had some heavy redaction's. to give an example of how much of the justification is redacted this is where were working with. when you read between these black lines you can see the doj is spelling out they had big
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concerns the identities of the witnesses they are working with, those will not be protected if the affidavit is unsealed with no redaction's. one of the reasons they status, quote, if witnesses identities are exposed they could be subjected to harm including retaliation, intimidation, harassment and threats to their physical safety. they go on to say these concerns are not hypothetical. fbi agents who have been publicly identified in connection to this investigation have received repeated threats of violence from members of the public. we are waiting for this affidavit to be unsealed and how heavily redacted that document is and when looking at the timing of this and what options he is weighing, the doj submitted what they would like, the judge can ultimately decide
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whether or not he releases the redacted version of the affidavit as is, or may choose not to release the affidavit at all and could release a version with no redaction's, that is highly unlikely considering the judge said i understand there are concerns about maintaining the integrity, privacy and safety of witnesses involved and making sure no information is put out that would damage her right detrimentally impact the investigation and also said it is important to release a censored version of the affidavit because of public interest in this unprecedented and historically relevant case so the general public sees what information they can have that sheds light into this and we are looking to see how once the affidavit is out, the former president, donald trump, his team has called for the
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unredacted version to be released, they are not getting a heads up on this. as soon as the affidavit is unsealed and we got a look at it, that is the same time donald trump and his team of lawyers are getting the look at this as well and bringing it to the white house the administration distanced themselves from commenting publicly on this case until regionally, you are the president respond to a question from our own peter doocy when he asked how much of a heads up did you have about the fbi raid at mar-a-lago. president biden said he had no heads up that was happening. today the president again responded to a question asking if he's concerned national security may have been put in jeopardy due to the classified documents taken from mar-a-lago. he will leave it up to the justice department to ultimately determined that. once this affidavit gets unsealed we will have an idea
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hopefully reading between the lines what is blacked out and what has been censored what the justification was for the search warrant at mar-a-lago and the reasoning why they thought this evidence was there and ultimately presented questions of whether or not there was suspicion of a crime, and reading between the reductions, we have to wait and see. neil: thank you. to former deputy assistant attorney general, help me with this, what's taking so long and why is it taking so long? >> reporter: this is another mystery in a confusing case which i have no idea why the justice department blue the deadline, the judge was clear you've got to put the redirected version on the public docket by noon today, judge's orders are not optional, they are mandatory, i' m at a loss why the justice department failed to comply
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with this order. neil: less the doj changed its mind. >> if they were they needed to do something prior to this, that is their strategy they could have come in last night and gone running to the court of appeals with an emergency motion or something but you can't just do nothing, sit on your hands and the fire judge's order. i hope there is a technical explanation, their server crashed or something. neil: obviously it was tested so that is what is going on but i am curious, i understand the doj's reluctance to do anything that might identify the individuals who gathered this information or would be part of the raid itself. but i think you could safely avoid any such identifications and focus on rationale for breaking into the president's home to begin with, it was not
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that easy. >> depends on how they wrote the affidavit. sometimes you see more broadly written affidavits that allow the kind of redaction's you suggested that you are printing the names of any undercover informant to unseal a lot of it without compromising its identity oral methods but much more tightly written affidavits where once you take out the names of the informants or identifying information there's not much left. that is what you see which is an affidavit that will be almost entirely blacked out. of the 20 if that is the case we know the former president will likely say something. he's been talking on his own social media service about radical left prosecutors, whether president biden knew of this in advance so he is already -- the propriety of this, the honesty of this, they made a victim out of me of this. so how does the sword out if
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what we get today is so redirected to your point no one knows the impetus for this and donald trump coming back to say this is why i am protesting. >> the battle is going to continue. the former president and his legal team will fire way, challenge this affidavit. i don't think people see the true basis of it come out today. the president's legal team will have a fair argument saying we still don't know what authorized the 6 ordinary warrant. on doj's side they will keep cards close to the vest until they decide to abandon this investigational bring charges at which point the affidavit will come out in full. we 20 what if it is something as simple as looking back on it they said we didn't get what we wanted, the things we were looking for didn't materialize and if we release it now knowing full well we didn't get any of it we look like fools?
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>> if they reached that conclusion i hope they do the responsible thing which is publicly close the investigation and make the affidavit and other supporting materials fully transparent. of the investigation is over there can't be any danger, compromising ongoing investigation. neil: we will watch closely, tom dupree following this. we have another down week unless we have a startling turnaround in the last 31/2 hours in trading. much of this you can put on the chairman of the federal reserve speaking at jackson hole saying the fight to deal with the economic pain and cool inflation is well worth it, could be raising rates sharply for some time, the sometime point that surprised many in the financial community with interest rates packing up even more. we will have more after this.
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neil: the selloff keeps going because the fed chairman says the fed is going to keep at it revolving in a stance on inflation making clear the federal reserve is determined to deal with that inflation as long as it takes and even when it is done and it won't be done until inflation is down to a 2% level running at an 8% clip right now. if that's the case the federal reserve chairman may add to the selling that after we are done with that and get to that we will stay for a while and see if it holds on. they added a great deal of length to this process. honored to have the president of the world bank in jackson hole who can elaborate what he thinks of this. good to have you. what do you make of the message
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jerome powell is sending today? >> good to see you. i will set interest rates so i will comment on other points going on at the conference, there's talk about how to get more productivity and production going on. one area for example is people work more hours. i'm focused on how can you have a broader part of the global economy engaged in reduction and that gets you directly into this flow of capital, central banks are part of the allocation of capital worldwide as our big governments that borrow a lot of money and they decide where it goes. it is not working as well as we need. a lot more production is deployed into sectors that make
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what people need especially lower income people. amy: the backdrop is it seems the worst of the inflationary news is behind us, it's different in britain where we are seeing interest rates, inflation continue to soar and utility bills continue to soar, 80% in that country alone, but here the message seemed to be we were rounding the bend, looking at the personal price index, personal income, spending all that but the trend improve, what do you make of that and whether that lasts. >> the month over month trend improves some but there still a lot of work going ahead and that key variable is how much production comes out of the economy. in europe they are pacing a high natural gas price which
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feeds into electricity but i'm concerned about people in developing countries, many of them don't have electricity, we have 800 million people who don't have electricity and are short of fertilizer meaning the planting cycle is going to be stranger so there has to be more availability of capital to smaller businesses and that means the government is not taking as much as they do now. neil: that's not happening in this country, the government is spending more of that capital and i am wondering if that only worsens this dilemma. >> this gets to the heart of it, to the extent you subsidize demand it takes capital away that. with you need to be doing is encourage people to produce more.
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the world bank works in difficult situations where they've been used to subsidizing things often times for higher income portions of the population. we try to get countries to move toward targeted if they are going to do subsidies, target them to people that need them the most and that is difficult for the advanced economies. the political tendency is to give it to everybody. neil: european countries, if you look at the globe, you have a bigger picture here but more are more reluctant to keep spending on ukraine. the message they are sending is it is getting long in the tooth. we are carrying a lot of that
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burden, but wonder if this is the first sign among many, governments and nations, and >> and and to support their hospital workers. there is a end to the mine, into ukraine as they fight this war. and in many countries around the world. with inequality in the world
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and the need for more flow of capital into productive things around the world. neil: the rich guys in some duress i would imagine, this gap this dichotomy is more wide. >> inequality has been more and more of the capital goes to the rich and there has to be a point they are big enough to handle it and they need to find ways of small business lending. should they be buying bonds which are in general emitted by the rich governments in particular and that draws resources away from the small business lending the us has been so good at in the past. that has been way down and
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there's more focus on the supply chain. how do you get energy being produced in order to help people have electricity in the developing world. the natural gas is falling to the rich. neil: they talked about what is going on in britain where inflation is rampant. to help out those, that is the president's goal, not everyone, part of that, already talk as well, 20 million households behind on their utility bills and on and on it goes, 100,000 plus brits saying we are not paying these ridiculously exploding utility bills looking to the government. >> i have sympathy for all
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those people, they have to recognize the win/win, governments allocating capital, where they could produce for everybody around the world. that's not a model we are using, the risk going forward, people talking about stagflation for period of years. that the strain on the bottom. neil: you don't like to talk about interest rates, the goal of these rate hikes and other countries, that fight is worth the risk of a slowdown bringing us to the brink or worse but it will all be better.
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one full percentage points in the 1980s with ronald reagan tax cuts. inflation is far more of a threat to the economy than anything else. >> it has to be dealt with but if the rates are too low, how is it consistent with stability and one thing that can be done is recognize central banks have more tools than the rate hikes into regulatory policy allowing capital to flow to smaller businesses rather than guiding to bond issuers, that the current policy and more important is what the governments themselves do as they borrow money from the bond markets to fund their fiscal deficit.
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it takes it directly away from capital that is needed elsewhere in the economy. your capitalizing things that are over capitalized and that is the core of the problem. neil: thank you for taking time to join us. have a safe weekend. we have the smartest legal brains on the planet coursing through these redacted documents on donald trump's home. what we are learning comes back to yuma intelligence sources and highly classified documents. dotting the is crossing the ts when so much is crossed out in the report that talks about. (fisher investments) it's easy to think that all money managers are pretty much the same,
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neil: trying to find out what it means, data to get a search warrant, it is heavily redacted, all 38 pages, to make out what is in there. what we are getting a sense of is the scope of the investigation and classified records reportedly held there including some that were labeled top-secret. we are gleaning this from hillary vaughan. >> reporter: we are getting a picture of how this began at the start of this partially redacted affidavit from the doj. the way the doj made the case to obtain this search warrant and alternately rated mar-a-lago it started this
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january when the national archives received 15 boxes from donald trump's office and the national archives found in those boxes mixed with other records classified information, that tipped off the fbi to start the investigation to figure out how classified information left the white house with the former president so they made the case to the judge they think their is probable cause to believe more documents containing classified information were at the premises at mar-a-lago. we are getting an indication these reports, there's been a mole at mar-a-lago, it does mention intelligence information derived from clandestine human sources referred to as human intelligence. it doesn't go further than
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defining what it is. under the probable cause portion they make the case where documents containing classified information and presidential records, this is the reasoning they are spelling out, blacked out information. that is essentially what we are working within trying to get an idea what the probable cause was, they get information from the informants, information the fbi gleaned from their investigation to back this up but i want to end with this, towards the end of this affidavit they talk about the request resealing, stealing this document at the time was necessary because the items if information sees are relevant to the ongoing investigation. they also think, quote, the premature disclosure of the contents of this affidavit and related documents may have a significant and negative impact
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on the continuing investigation and severely jeopardize its effectiveness by allowing criminal parties an opportunity to flee, destroy evidence, change patterns of behavior and notify criminal confederates. we are digging through this. a lot of it is blacked out but we do have a general idea of how this started. neil: looking at the rationale of the fbi raid, what do they present? and we are told a lot of it concerns fears, documents he shouldn't have had at his home, 15 of these boxes include a number of top-secret documents, 25 of them. donald trump has said he can declassify them and did as president. do we know anything about whether these documents were
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among those he had declassified, nothing top-secret here, nothing untoward going on here. >> reporter: included in the sealed document increases there's a letter from donald trump's attorney evan or karen making the case to the doj back in may where they are going through this negotiation period with the national archives getting information from the former president about what documents might be there. in this letter they make the case that any attempt to impose criminal liability on a president or a former president that involved his actions with respect to documents marked classified would implicate great constitutional separation of powers issues. they say beyond that the primary, statute that governs unauthorized removal and retention of classified document or material does not
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apply to the president. so i will leave that to the legal experts to hash that out but at least the former president's team of lawyers they don't think he is entitled to follow restrictions related to classified information because he is a former president. stuart: when we talk about top-secret and that is as far as they are going to go, maybe you know better than i what warranted this raid, helps that they are top-secret but as you pointed out, disagrees with that but we don't know what was so top-secret or what was so alarming because as you pointed out this is unprecedented, never seen anything like this were former president's, searched, rated, ransacked by the fbi so i guess they are going to leave out the redaction's.
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we can tell you how many documents are in there or what they were. >> reporter: exactly. i will say on that point glancing at the way they spelled out definitions they are using they talk about classified information saying it may be marked as not releasable to foreign nationals, governments, us citizens for information that may not be released to non-us citizens without permission of the originator but in terms of the nitty-gritty, what this means, what it was, we don't have those details. it is under this black ink we printed out, we don't have the details on that aspect of what is in these documents in 15 boxes or what additional documents they were able to
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retrieve when they rated mar-a-lago. neil: they talked to boxes that contained unique documents with classification markings. some of the documents include handwritten notes by donald trump. you know anything about that? >> reporter: i do not. to go through all of this, i can dig into that. neil: it is interesting when all is said and done, detailing we had a lot of super high intelligence stuff, that we wanted to get our hands on donald trump shouldn't have had at his home. what the frustration will be, what was so top-secret about
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this, barging into that home and taking everything you got your hands on him about the open question. we just don't know that. >> reporter: what is interesting is there was a back and forth between the national archives for several months trying to figure out how to get these documents they had reasonable suspicion to believe were on the premises at mar-a-lago but why was there breakdown in those negotiations, whether they was a last resort for the fbi than to barge in and try to sort through that stuff and grab it for themselves, rather than get it handed over and important to point out it is clear the former president was willing to hand over documents, 15 boxes in january. neil: thank you very much. they care about the federal reserve much more, that's what
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i wonder what my doctor would say. ooh! let's find out! with kardia, you can email your ekg directly to them or send it to a cardiologist for review. kardia can do all that? all that and then some, greg! kardia also gives you access to heart health reports and automatic ekg sharing. what next? let's get some fresh air. been cooped up for too long. yeah... ♪ kardia mobile card is available for just $99. get yours at or amazon. neil: for the markets, that doesn't seem to matter, the redacted affidavit that justified the raid on donald trump's personal home in mar-a-lago is out and even though it does point to a number of alarming developments including the retrieval of a number of top secret documents and more, hundreds, we're told, back and forth, that he shouldn't have had there according to the government, but
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that is not moving the markets. what is really moving the markets right now is jerome powell, the chairman of the federal reserve, speaking at a symposium in jackson hole, wyoming making it clear that the fight to stamp out inflation is on. whatever the repercussions for the economy be damned. edward lawrence in jackson hole with more. what did he say had that set these guys off do you think? reporter: he was very direct. in fact this is the most direct speech that i have heard federal reserve chairman jay powell give since he's held that post and don't let the beautiful scenery behind me fool you. there are bears certainly out there but just listen here. this glaringly stood out. listen to what he said. >> very likely be softening of labor market conditions. while higher interest rates, slower growth and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses.
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these are the unfortunate costs of reducing inflation. reporter: now this is the first time this year the fed chairman has directly talked about the economic pain that will be coming because of what the fed is doing. now in reaction to this first speech from the federal reserve, this is the federal reserve district president raphael bo stick, told me today was about expectations, listen. >> the federal reserve chairman we heard say that there will be some pain for americans and businesses with what the federal reserve is trying to do. how long do you think americans need to deal with this pain to get to a manageable inflation rate? >> that's a good question. i think the chair was trying to prepare people for the possibility that as the economy slows down, we might have some job loss. we might have some slowdown in business, but we don't know exactly how much there will be. my hope is that if that happens, it will be a relatively mild impact. reporter: and you know, no time frame was given. now the atlanta fed president
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also says he could see a 50 or 75 basis point move at the september meeting. that's what i've heard from about every fed president i spoke with this week so far. the unemployment rate is forecasted to rise and inflation according to the federal reserve atlanta federal reserve president may not have peaked as of yet. neil? neil: edward on the same page, in other words, with the rate hikes that we seen, some differ over the pace of the hikes even the size of those hikes, what did you glean? reporter: yeah, everybody that i have talked with said 50 or 75. if you listen to the fed chairman's speech today and another part of that speech saying that there maybe, it maybe appropriate for an unusually-large increase, so that could signify the shift maybe to the 75 basis points regardless of the september meeting, we're going to see a quick up-tick of the federal funds rate and interest rates. i've been told since covering the fed from a long time ago, i've been told that 4% is really where the federal reserve needs
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the federal funds rate to handle and manage slowdowns in the economy. this is generally, historically, so they could go up and down. it seems they're quickly headed towards that 4% mark. we'll have to see what happens. neil: great job out there, very much appreciated my friend, edward lawrence, in jackson hole i liked his bear reference there , that was brilliant. i want to go to gary kaltbaum and the one thing the market seized on and maybe we're bummed out about that's trivializing it is the fed chairman is saying we could keep raising rates sharply for "sometime" and then he goes on to say, and then hold them at a higher level until inflation started to come down, or is under control. i'm quoting. i don't think that the street was prepared for that part. what do you think? >> well when you have a man in one year has gone coast to coast from being the most easy monetary policy, central banker
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in the history of the world to what sounded like paul volcker-ish today and i mean that, markets are going to react. he was sharp, he was to the point, he meant business, and he's telling the world that they are going to keep going until they beat off inflation which by the way, i believe he lit the fuse on with printing up to $9 trillion of money and 0% rates, followed by what's even worse, the european central bank that still is at 0% rates, and the big worry right here, neil, and i've told you, savings rates are plunging, credit card uses are skyrocketing, the housing markets in trouble. we had two quarters of down gdp and now we are saying hey listen if people lose their jobs that's what's going to have to happen to cure this , and i'm not so sure that's good news for markets, corporations, and i have to add in, a nice little corporate tax hike from the
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administration. neil: you know, those are all slowdown signs and then we get personal consumption numbers that came in weaker than expected for the most recent one , personal income barely growing, so it's well-off its highs. the pc price component index, much, much better-than-expected i should say versus the big increase we're seeing. in other words what i'm trying to say, the inflationary trend at least, still bad, but slowing , and i'm wondering what to make of the federal reserve or chairman who goes before the american people, essentially , to say i've seen that data. i'm not convinced. in other words, you could go a little slower if you started looking at these pce numbers and the consumption and income numbers and say all right, it's beginning to work. the inflation is beginning to cool, but he's not doing that and i don't know if that's a good or bad thing but what do you think? >> well the inflationary trend
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had to come down, a lot of commodities did what i call an eiffel tower move, just straight, straight up so that's being worked off here but leave no doubt we're still elevated. oil prices nicely down, but still elevated from where they were. look, my big worry is that this man, and nothing personal, has been wrong pretty much big time and if he overshoots on the upside here, we're going to get a deep recession and i think globally, because you see what's going on in europe, really bad right now. that can affect us. china's numbers have headed south in a big way to the point where they're easing and i just think we're real fragile at this moment and now you have somebody as i said, this is paul volcker stuff, and i surveillances we'll see a three- quarter point move in september, which will just play catch-up with the markets because i think the two-year sitting at like 3.3, so he's just playing catchup, but if he starts going towards four like edward lawrence said, i think
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the economy could be in for some big rough patches, and unemployment just watch that number. if it starts to head higher, nothing goods going to come, friday mend. neil: you know all these guys at their level they have to be very careful with what they say i get that the same with the world bank president we talked to dave malpas about 25 minutes ago , he was eluding to this global inflationary pinch and the utility bills that are skyrocketing in britain, similarly leading to 20 million americans behind on their utility payments here, the backdrop for that, the president's plan in this country to forgive so many student loans, so many others coming back saying what you do for them do for us so there's a lot of hands out across the world looking for their governments to help out. play that out for me. >> two words. more debt and more debt on a world that is laden with a lot of debt, and more debt usually comes with higher interest rates which leads to more debt and you end up with somewhat of a vicious cycle and these are the
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things, neil, i've been writing about for two years. neil: indeed. >> the worry of too much interference by all these central bankers instead of letting the economy and people of all these countries especially ours to just do their thing, and look where we are right now, depending on one man, i think the most powerful man on earth and his whims on where things should go instead of letting the economies be and let markets be, and you're seeing a little bit of it in today, but you also are seeing it since last november and actually last year when all the bubbles popped , and again, really worry about the wealth effect here and a lot of things happening at once. i'll keep fingers crossed that things turn better but i'm just not sure, these people who are running the joint, they worry me very much. neil: got it gary thank you very very much want to go to jerry ho ut, the national association of homebuilders ceo. you were hearing gary and aware of what the chairman of the federal reserve had to say. in your industry, just the talk
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of aggressive rate hiking for maybe a year or more to come has got to jar you a little bit. >> it sure does. we're the most interest rate- sensitive industry in the economy, and we're already heading downward. we've had several months now, six months of our own sentiment going down. we have starts down. we have permits down, and now, we're going to add increase in interest rates. he's afraid that there's going to be a downturn in the economy. i already know that there's a downturn in housing. neil: so, let me ask about this. mortgage rates ticked up again this week, i think an average 30 -year fixed up to 5.55% but i frankly expected them to go up a lot more if they were just following the performance of general rates that the federal reserve controls. i'm not dismissing the run-up. it's essentially almost double where we were, but what do you make of that and whether some potential buyers who found ways
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around this or adjustable rates and all, they do have options. so i'm wondering, is it as bad as it looks or how would you describe it? >> well right now, i mean, obviously 5.5 is better than 6, but we're afraid that it's going to get up over 6. don't think it'll reach 7 this year, but we believe that it's going to continue to go up, neil, and so other options, adjustable rates as you mentioned are going to have to be put on the table if we're going to continue to have home sales but right now, there is so much downward pressure on us from the financing end, because you've got to remember, when interest rates go up for the consumers, they're also going up for the builders and the ability to get money and capital to buy land and entitle the land and develop the land is also greatly impeded. it adds to the cost. that adds to the cost that the consumer has to pay. the mortgage adds to the cost and pretty soon the demand is going to be quashed. neil: you know, dumb question
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but you've endured them for years from me, but i always think that new home sales are in more of a pickle than existing sales, and i only say this way because buying an existing home you don't have to wait for it to be built and that takes time and in that time rates could still be moving up so people might be moving from, you know, new building going on in their community or elsewhere, and instead, err on the side of, you know, the guys just put his home on the market and there's been a growing number of those , increasing supply, bringing down the price, and further hurting you guys. what do you think? >> well, it's more of a chain than that. i don't think that you're entirely accurate. clearly, there are more existing home sales in a year than there are new home sales, but in the kind of a market we're in right now, where supply just isn't there, particularly for first time home buyers, it's the need to build new homes that is going to drive us either deeper into the recession or it's going to get us out of it.
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we need new homes at the first time home buyer market in order to make all of the other options available for people and it actually goes the other way too, neil. if we don't have enough homes in the first time home buyer market people living in apartments can't move out of the apartments and rents go up, so that's the real focal point. there's not enough supply. the increase in interest rates is going to even hurt that supply even more. policy makers need to do something. neil: all right, we'll watch very very closely. i take it from what you're saying, jerry, real quickly that nothing you heard from jerome powell eased your angst. >> not even a little bit. neil: i thought so. all right, thank you, jerry, good catching up with you. a couple updates we're getting on that 38-page affidavit that was released to the public today albeit heavily redacted in other words crossed out so much of it you simply cannot read so i don't know what the 38 pages boiled down to in readable copy, probably half that if that. this is the affidavit that prompted a judge to authorize that search of donald trump's
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florida home. they carted away, that is fbi agents, better than 20 boxes from one bedroom and office, and a first floor storage room. apparently, they knew exactly where to go, which fed this argument, did someone on the inside tip them off where to go. it's a 38 pages as i said, it covers a lot of documents that they argue, that is the justice department, have been arguing apparently trying to convince this judge to give the go-ahead to this search the former president shouldn't have had it in his home in the first place. a good third of those documents deemed to be very very high classification worry. in other words, many of them, secret or top secret. now, president trump has said on a number of times and his legal team has echoed that when he left the white house he left a lot of those documents and declassified them, because well he was the president at the time and he could do that. other legal scholars said no, you can't do that, mr. president we're also learning a little bit about how others of these documents related to the foreign
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intelligence surveillance court, fisa, if you will, and what prompted them to sort of go on this search. apparently, there was a search of even in the archives and the documents that are readily available, when the administration steps down and they were deemed missing and then a search well who the heck has these documents and that's when they widdle this down to its got to be donald trump, its got to be at his home, but we don't know the details on that. we don't know the degree to which the former president was already cooperating with investigators. he says and was trying to iron all of this out, but there are some of the issues. we don't know exactly what was top secret, and obviously, that's part of the stuff redacted so you just don't know. we are following, i hasten to adhere that as important this is gripping the nation it is not gripping the markets, far more important to the markets is what the federal reserve chairman had to say. probably has much more impact on you and your money and life for the time being than the
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former president and his documents. having said that, we should adhere, that the fear is, again, that the federal reserve isn't only not going to give up its fight to stomp out inflation. it's ready to do so for as long as it takes and even when it is done, even when it is done, it's going to wait to see how things are going so we don't know how far interest rates have to go to get us to that point. we do know that the chairman of the federal reserve has said he'd like to bring us back to the good old days of 2% inflation. right now, we are at more than four times that level, so that in implies a lot more hiking to come. also in the medical community startling news concerning some of the big vaccine makers, moderna right now, is suing pfizer and biontech alleging that they infringed on some key technologies and their vaccines that they stole from moderna. it gets kind of in the weeds here. i want to go to dr. marty makary on all of this , best-selling author, overall medical genius wiz. he's the guy i kind of cheated
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off of sitting behind him in class but he's younger than me. anyway, doctor, moderna, out of the blue, does this. now i know there was always a comparison whose vaccine is better, what do you take, what do you recommend but what is moderna simply saying? that they stole something from them? >> that's right. they are making two allegations. one is that pfizer and biontech who they actually were the true developers of the pfizer vaccine , that they chemically modified the moderna vaccine and number two, they're claiming they kind of own the sequence of that mrna, that really belongs to them. now it's interesting the mrna vaccines in general were developed in the 1990s but between 2010 and 2016, moderna filed for a lot of patents. not for the covid one specifically, but for the general mrna technology, and it raises the question. should anybody be able to own a piece of mrna? basically a sequence of four
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nucleotide amino acids that are in the dna so that's the big question. breast cancer testing company claimed they owned the breast cancer gene years ago. that went to the highest court, and the court ruled no, you can not own a sequence of mrna, and final point, it's interesting to note that when salt developed the polio vaccine, he refused to get a patent. he said that this be the property of mankind, a gift to humanity so as many kids in the world can get it as possible. neil: all right well that didn't happen here, i guess, but i'm wondering what it means. people are going to hear this , doctor, and they are going to say all right, what vaccine, what booster should i take. these guys are cheating. these guys claim they're cheating. these guys claim this one works on 70% of the people. this one 50% of the people. this one is good for kids under 12. it's going to add to the confusion, isn't it? >> it is, and many of us believe that moderna waited until this point in the pandemic
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to file the lawsuits, because this be better for their pr efforts than when they were trying to outperform pfizer and sell and get people to take the moderna vaccine. now, they're only suing in two countries, in the united states and germany, and they argue that they're not going to try to get pfizer's vaccine off the market. they just want what they call a reasonable licensing fee, and they are still saying they are honoring their promise that anybody could basically reproduce their vaccine in any one of 92 low and middle income countries, and that they could not pursue any action against any company that tried to do that. neil: you know, doctor, while i have you here, the other day i talked to dr. fauci and the cdc director dr. wolenski on what happens now. as you know dr. fauci is stepping down and dr. wolenski is doing this top to bottom review on how the cdc responded to the covid crisis but i asked
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each if it happens again would they do what they did again? would they go to a full lockdown and to be fair, she was not running the cdc at the time, but she intumated things be done differently. dr. fauci was saying you just follow it where it goes but i got a sense from him a full worldwide lockdown wouldn't and shouldn't happen. where are you on this? >> look i saw your interviews and they were fantastic and i think there is this notion that we can allow the nih and cdc to fix themselves and if you look at dr. wolenski's comments they are really geared at 2020 when she wasn't there. she's really gearing them at the trump adminitration response, and the reality is that agency has been littered with many problems throughout. it was one johns hopkins engineering grad student that developed a covid tracker that the world used and they couldn't do that at the cdc. they had 21,000 employees. dr. fauci was slow to respond with the science repeatedly, one
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the country and then remember, he was telling everyone to wash their hands for months? that's okay to be wrong, but you can do the research in 24 hours to find out that it's airborne and over and over again, they did not respond at the nih with their $42 billion in research funding to do the basic experiments to answer the big questions. instead they let those controversies linger where opinions filled the void. neil: dr. marty makary thank you very much. we'll have more, the dow down 645 points nothing to do with a certain affidavit. everything to do with a very uncertain speech by jerome powell.
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to lose weight, but with golo, it wasn't. the weight just fell off. i have people come up to me all the time and ask me, "does it really work?" and all i have to say is, "here i am. it works." my advice for everyone is to go with golo. it will release your fat and it will release you. neil: you know the great thing about being a business network when you have two big stories it's not the one that's gripping the nation right now on the raid of donald trump's home a few weeks ago and the rationale for that. it's what the federal reserve chairman is saying about the state of the u.s. economy right now, and interest rates that could continue going up a long time from now, that is royaling stocks, so this sell-off, that's widespread on the fear that interest rates will continue to move up again and again and again, is far more important than what's transcending with these details of this report in florida. nevertheless, that report in
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florida is important as well. hillary vaughn has been going through it, and has already heard a response from the former president himself on it. hillary? reporter: hi, neil. well yes, former president trump weighing in on this released and partially redacted affidavit. remember, the first time he got his eyes on this was the very same time the whole world got their eyes on what is in this redacted document, but here is his reaction that he posted on truth social. he said affidavit heavily redacted, nothing mentioned on nuclear, total public relations by the fbi and doj, or are close-working relationship regarding document turnover. we gave them much. judge bruce reinhart should never have allowed the break-in of my home. he recused himself two months ago from one of my cases, based on his animosity and hatred of your favorite president, me. what changed? why hasn't he recused himself on
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this case? obama must be very proud of him right now. so, we have done some more digging into this redacted document and we do have some of the information that you are looking for , particularly pertaining to what is in those 15 boxes that the former president willingly handed over to the national archives back in january. in those boxes, they say they found 184 unique documents bearing classified markings including 67 documents marked as confidential, 92 documents marked as top secret, and they also do say that several of the documents also contained what appears to be the former president's handwritten notes, but we're also getting some hints, neil, about where this breakdown happened back in june. remember, they had this ongoing cooperation, you heard from the former president's statement moments ago that he thinks they have been operating in good faith, with the national archive s to try to get these
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documents that they need back to them, but ultimately, the argument from the former president's team back in june was that the president had the right to declassify these documents and he did, but of course, it doesn't seem that is what the doj, the fbi, or the national archives is buying neil? neil: thank you for that. matt whitaker with us the former acting u.s. attorney general. matt, what do you think of what you've learned thus far? >> well, neil, it's good to be with you. what i think right now is that this affidavit is next to impossible to glean anything out of what we want to know. obviously it confirms much of what we know. they got the original 15 boxes in january. the fbi went through them after the archives called them and said we have classified document s. they found many classified documents. all of the redactions on this are what we really want to know, which is who did they talk to? what did those people tell them, what else did they do?
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the affidavit is clearly in chronological order. you see how it outlines, neil, the steps that the fbi went through in their investigation, but the redactions make it next to impossible to figure out. i will make one other note, you know, in my experience, having sat in the chair of the attorney general and done that job, i just think there was so many steps that the could have been taken short of executing a search warrant at mar-a-lago to continue to get the documents that the archives felt were necessary and properly in their possession. neil: so the archives knew that something was missing, right? and that seemed to be the trigger for this , right? >> well obviously, they had been talking to the trump people , the former president and that office turned over these 15 documents in january, and then in june, they turned over more documents, but it is very obvious to me that in that time, between january and june, and
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then june on, that the fbi investigation was in full swing and they were gathering evidence in order to execute the search warrant and i just think it seem s to me that this was a foregone conclusion and decision that was made weeks if not a month before the actual execution of the search warrant. neil: so if donald trump had a number of highly classified documents, including many top secret ones or labeled as such, his argument has been when he left office, he declassified them all, so is that it? >> well and there's some discussion in this affidavit about those allegations that these documents have been declassified by the president and even quotes a story in brightbart quoting kash patel, the former chief of staff at the dod and former deputy national intelligence director, and the response to that, and that's i think the most intriguing thing about this is it's blacked out after they note the claim of declassification.
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they don't have the fbi's or the government's responses to why that's an invalid claim so that's something i'm watching very carefully to see how it develops. neil: thank you, matt, very much , matt whitaker and we are watching the sell-off at the corner of wall and broad. its picked up a little bit of steam, the dow down 640 points all major market averages are in response to jerome powell's saying you know, this inflation fight i'm on? i'm still on it and will be for quite sometime. after this.
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neil: all right, utility bills are rocketing, pretty much across the globe, and this country, 20 million u.s. households are behind on their utility payments in britain, for example, its gotten to the point where they are looking at an 80% spike in energy bills from where they are already, and they've been rocket ing. let's get the sense of where this takes us with daniel turner , power of the future founder and ceo. daniel, at the same time, so
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much price hiking going on, and the inability of people to keep up with it. >> yeah, and i really appreciate the fact that you're pointing this out because it's one of those statistics that's not getting a lot of attention. there's a reason why americans tend to pay their electric bill last. they are oftentimes laws that prevent power companies from turning off utilities. there are laws in place in a lot of states you can't charge interest, so americans are paying off other things. they are trying to put food on their table. they are trying to pay their mortgage or rent and deferring payment on utility bills, but that's really a alarming when you look at where coal is around $370 a ton, which is astronomically high when you look at where natural gas is, which is close to $10. i mean, these aren't statistics that people know as comfortably as the price of gas for their car, but if you understood how these figures, coal, natural gas , play in our economy, these are some numbers that really have to give you pause about the
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health of our national economy. neil: its gotten so bad in britain i guess there's a petition they are sharing around the country about now 100,000 residents strong who just say i'm not going to pay my utility bill. i don't know what happens here. we know 20 million are in a bit of a fix right now but energy prices are rising, particularly natural gas and some other prices in europe, a lot higher than they are here, i understand that, with the russian shut off of fuels and the rest but where do you see this going? >> well i think we have to be concerned about what's going to happen in europe because as we get closer to winter i wouldn't be surprised if there's a round of heavy sanction on russian oil and natural gas. europe is in really precarious shape, paying almost 10 times what we're paying for their electricity right now, and there's no end in sight and here domestically we don't see an administration trying to help us. we need to not just increase our amount of oil & gas and coal production, but there are a lot of infrastructure projects that are being held up.
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the ferc, i've talked about these guys before, the federal election regulatory commission, their chairman richard glick is holding up natural gas pipelines and in you're in new england this has to give you a lot of pause especially as you get closer to winter that we can build our infrastructure project s to transport our fossil fuels, so there aren't a lot of real glimmers of hope and if you think going wind and solar will happen in the next couple of months before winter hits, you're absolutely crazy. so i don't have a lot of optimism about where we're headed as a country when it comes to energy. neil: i just wonder this california push to make, just ban all fossil fuels or gas powered cars by the year 2035 and this push for electric vehicles which might be fine if you like that sort of thing, that's going to put further demand on utilities, will it not >> absolutely. even elon musk says we need to generate around twice as much electricity nationwide if we were to go electric, and if you
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look at the state of our electric grid, what are our problems? we're talking about rolling brown-outs and black-outs nationwide, places like california and new mexico are frequently turning off whole sectors of the grid to protect its integrity. minnesota has problems, new york has problems, so we need to produce more electricity where producing less and we're pushing this wind and solar and ev's way ahead of its time. neil: i hope you're wrong on that stuff but you've been right on this stuff. we'll keep an eye, daniel turner , power of the future, the pounder and the ceo. all right we are down 666 points , anyway, charlie gasparino speaking of 666. he's here, next.
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[ kimberly ] before clearchoice, my dental health was so bad i would be in a lot of pain. i was unable to eat. it was very hard. kimberly came to clearchoice with a bunch of missing teeth, struggling with pain, with dental disease. clearchoice dental implants solved her dental issues. [ kimberly ] i feel so much better. i feel energized to go outside and play with my daughter. i can ate anything. like, i don't have to worry. clearchoice changed my life. hi, my name's steve. i lost 138 pounds on golo and i kept it off. so with other diets, you just feel like you're muscling your way through it. the reason why i like golo is plain and simple, it was easy. i didn't have to grit my teeth and do a diet. golo's a lifestyle change and you make the change and it stays off. golo's changed my life in so many ways. i sleep better, i eat better. took my shirt off for the first time in 25 years. it's golo. it's all golo.
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it's smarter, it's better, it will change your life forever. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. life is for living. let's partner for all of it. i'm so glad we did this. edward jones neil: all right, we are at session lows right now the dow down about 711 ponts big
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drop-off the s&p 500, the nasdaq , all 11 s&p 500 sectors we follow closely are all down, all 30 dow jones industrial stocks are all down. charlie gasparino with us right now. charlie a lot of this sparked all of this really sparked by jerome powell. what are we to make of that? charlie: well you know it's risk assets are going to correct if the fed is going to keep to its inflation target of 2% and it was a huge miss direct in the market. market participation, participants were saying no, no, he won't go through with 75 basis point increase. in fed funds rate so he's not going to keep addressing inflation until it gets to the 2 % level. we're not even close to that even though inflation moderated a bit, and fed watcher telling me, everything they hear from the fed is that he's committed to getting it down to 2%. if you believe the fed watchers, and powell seemed to suggest that they're the ones who are right, now, it's at least, it's
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definitely, it's 75 basis point increase and then there's another one likely, so this is what we're going to face and it's probably going to lead to at least a modest recession. that's what he said today, and again, the markets are skeptical , but if you look at this and then you look at crypto , it's literally the same thing. you're getting now signs in crypto of another falling out, that bitcoin hit around 20,000 today. remember it bounced backup to 23 there we go. it's off significantly, with the other ones. that combined with ethererum which is fixing, it's doing a major overhaul of its ethererum blockchain, there's major overhaul which we could spend a whole show talking about but we won't go there, it could lead to a lot of selling in crypto-land, and people are saying you could expect a bitcoin at 16,000. don't be surprised if you see 16 on bitcoin, so all this stuff, you know, some of it's technical
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stuff like the ethererum reboot of its blockchain. a lot of it is fundamental. the fed being committed to raising rates, and if that's the case, then everything sells off. risk base assets, dow has to come down, we're heading to a recession, and actually, we're heading probably, it depends on like remember these are all lagging indicators but if you believe we have embedded in the system at current levels 5% inflation, that's 2% above the target. we're probably, we have good chance we could have stagflation which is never fun. the markets are saying as i'm talking trading off 700 points. neil: one of the things that's interesting and you touched on here is if anyone had any doubts , jerome powell is going to clobber inflation and if that leads to economic pain which he thinks is inevitable to cool it and so be it and furthermore when he gets to where we want to go wherever that is for interest rates he's going to keep them there for a while.
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let's see how things go. that means this goes on longer than we ever thought, right? charlie: and remember, the volcker rule was always that interest rates have to be above the inflation rate. we're not even close to that right now, and not only that. i will say this , neil. i'm friends with a lot of trader s. they're still thinking this is all talk, no action. there's still a huge sentiment down there about that, so again, if you listen to the fed watcher s who know people inside the fed, they're saying definitely one more 75, probably two. he's committed to the 2%. that's the word. if you listen to the traders he's going to blink, he's going to say oh, we can deal with 3% let's just watch it, if it's four or five and see what happens, because he doesn't want to risk a recession, but the problem with the fed, i think that powell has, is that if he is throwing out the signals he's really committed to the 2% which he
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clearly is, and he does a double take on that whose ever going to believe him again? you lose tremendous credibility, you know? and then -- neil: what if he means what he says and he's not blinking? charlie: if he means what he says, we're going to have a time of stagflation probably, because we'll hit a recession, and we'll have still lingering inflation until inflation comes down and then we'll just probably have a recession for a while until this thing, inflation hits the 2 % mark. now hopefully it all gets done immediately, or fast, and this doesn't go on for a year, but who the hell knows? listen, we never printed so much money before and spent so much and we're still spending. this inflation reduction act is more like an inflation enticement act. it's very, if you read the thing , they are spending on all this weird stuff and solar
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panels and stuff that just is not going to really do the trick it maybe good for the environment, maybe at some point in the future, but it's not going to do the trick. it doesn't live up to its name, so there's a lot of, you got the president literally forgiving student loans and oh, no just gotta forgive three gazillion dollars worth of student loans. you don't think that's inflationary? basically handing checks to kids , you know? neil: crazy times my friend. thank you, charlie, charlie gasparino with that. in and out of the dow down about 700 points right now looking at our second down week, that seems to be almost a gimme at this point after we were rising for four consecutive weeks. so on we go and where she stops nobody knows, after this.
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municipal bonds don't usually get the media coverage the stock market does. in fact, most people don't find them all that exciting. but, if you're looking for the potential for consistent income that's federally tax-free, now is an excellent time to consider municipal bonds from hennion & walsh. if you have at least 10,000 dollars to invest, call and talk with one of our bond specialists at 1-800-217-3217. we'll send you our exclusive bond guide, free. with details about how bonds can be an important part of your portfolio. hennion & walsh has specialized in fixed income and growth solutions for 30 years, and offers high-quality municipal bonds from across the country. they provide the potential for regular income... are federally tax-free... and have historically low risk. call today to request your free bond guide. 1-800-217-3217. that's 1-800-217-3217.
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neil: all right, texas is in the middle of a battle right now with some of the most premier investment houses on the planet right now. it's black listing, blackrock, u bs, and a number of financial firms over some alleged boycotts going on particularly energy boycotts, glenn hager is here the texas comptroller kind enough to join us. comptroller thank you for coming tell me what this is about, sir.
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>> so last legislative session our state legislature passed a law essentially looking attainted its that financial institutions, banking firms that are boycotting oil & gas industry not only the firms but also different index funds, mutual funds, etf's so we've worked on this project, did a lot of research, fact-based driven, transparent, how people get on the list and off the list and essentially what's really dangerous is we have certain number of entities that don't want to invest in the oil & gas industry and texas we have a wide diverse portfolio. we have renewables. we have oil & gas. we have all types of energy sources and the fact base is we believe in a diversified portfolio and we think in fact certain companies not continuing to invest in oil & gas in this effort to essentially go all renewable is really really dangerous overall. we see that in europe right now with the energy crisis in europe , energy crisis arising in the united states, have risen and the fact is so many parts of our lives rely on that industry
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every single day, even if you drive an electric vehicle, parts of that vehicle are a product so therefore, texas is taking a stand on this issue to make sure those firms need to be accountable for the decisions that they are making. neil: so are blackrock or ubs, are they responsible for managing any of your state money or state pension or teachers funds that sort of thing? >> yeah, different entities do have investments with both of those firms, undoubtedly we'll go through a process in the next 30 days, each pension fund, to identify what investments they have with the list of 10 companies as well as 350 individual funds. my office, all offices are going through that process, and then once we are able to identify those , & companies, the different pension entities respond to my office and they respond to these companies as well, notifying them, then there begins the process of deciding whether there's a divestiture, what is that time line, and we want to make
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sure everything is done in a prudent manner, a responsible manner so therefore, there's not necessarily a set timeline for each entity because we want to make sure we take the pension in this process as well. neil: all right, we'll see what happens. sir, thank you very much, glenn hager, the comptroller of the beautiful state of texas. not so beautiful at the corner of wall and broad, the dow out of session lows, stay with us. (vo) while you may not be a pediatric surgeon volunteering your topiary talents at a children's hospital — your life is just as unique. your raymond james financial advisor gets to know you, your passions, and the way you give back. so you can live your life.
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neil: all right, jerome powell makes it clear he's got a handle on inflation and will aggressive ly fight it but that's exactly what seems to be worrying traders this battle goes on for quite sometime even if it's going to cause as the chairman himself said a lot of economic pain. here is charles payne. charles? charles: neil, thank you very much, my friend, and good afternoon, everyone. this is charles payne, and well, you just heard neil say it. jerome powell, he has spoken, and the stock market is reacting , and isn't reacting too kindly. as you can see we're down a lot. all the major indices coming in. here is the thing though. i'm not so sure this isn't just an act. i'm not so sure wall street believes jay powell. in fact i think they don't, despite this reaction. so i said on earlier in the week , jay powell will come in like john wayne instead he'


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