>> connell mcshane probably knows. stuart: you know what? i think you're right. he's the founder of tea leaf watching. connell: i'm listening to you two brits that killed this market rally. [laughter] hand it over to me -- stuart: get on with it. connell: good job, by the way. [laughter] janet yellen did all but telegraph a rate hike, we just don't know when it's going to be. the initial reaction, well, you just heard about it. we go up in the markets, and now we go negative. i mean, we'll see what the next two hours bring for us, and i'll be there for the duration of that. i'm connell mcshane in for cavuto on cavuto coast to coast. yellen saying the case for an interest rate hike as strengthened but giving zero indication of a move soon, like in the month of september. so our panel to start us off this hour, we have our economy expert, that would be brian be be -- brian brenberg and it says

here lunatic dagen mcdowell -- look at her face. [laughter] let me start with you, dagen -- >> you only dare say that because i'm not in the studio with you, and i can't punch you in the throat. connell: there is that. [laughter] >> here's what janet yellen said, they're concerned about the jobs report for the month of august. it looks like she gave herself some room and the ped some room about hiking in the month of september, but it definitely seems like a hike in november or december is likely given the strengthening of the economy. listen, i know that the second quarter gdp came in at 1.1%. that was dreadful, if you will. worst recovery since 1949 overall. we had two, the last two months of job gains came in at 547,000 jobs, so there has been firming there, and that's what the fed's looking for.

connell: let me go to jeff next and brian can maybe give us a bigger picture point of view. we were up triple digits on the dow, and now we're down almost 15 points. what are people reading into the yellen comments? or what are you reading into them? >> i know everybody's parsed every word she said, but i think the overriding thing here is that she went out of her way to say, you know, we're or very close to raising rates. and the markets didn't read it that way initially. they basically said, you know, the rates are gog stay low, and the dow went up. and usually the first move out of a statement out of the fed is a wrong-way move, and that's what we've got here today. connell: that is true. looking at these days, because you react first, then you start to think about it a little bit more. brian, the market reaction is what it is, but the bigger picture as i said we'd come to you, picture of the economy, is what? she talked about, quote-unquote, sufficient enough growth to further improvement in the labor

market. is that what you see as sufficient enough growth? how's the economy doing? >> it's hard to say sufficient enough growth. i think the problem she has is we have this two-faced economy. on the one hand, you have jobs numbers that look pretty good on the whole, but you have economic growth numbers that look very bad, and what do you do with this? it's not a clear indication of moving one way or the other. each though she's trying to sound more hawkish, markets are still really not quite buying into that, and that's why even for a december rate hike i think markets are still saying it's likely but not overwhelmingly likely. connell: okay, let's talk about the timing a little bit. dagen, how much do you think politics plays -- given the election and december would be a month after the election, how much of it is simple politics, or is it economic timing? >> for her sake, she's been bashed on the campaign trail. it would be easier for them just to wait until after the election. connell: right. >> so she's not caught in the crossfire, if you will. but i want to say the fed started out this year saying it

was going to raise interest rates four times this year, so it's essentially been dead wrong. one thing that you did see which was interesting, stock market volume very light in this kind of dog days of summer trading session. the treasuries, money started flowing into treasuries, and the treasuries got a little bit of a bid. and if you look at her forecast for longer-term interest rates, you know, over the next several years, she's really -- she came out and gave a range of potential possible interest rates. and so that, she's really -- she's, essentially, saying listen, rates could be low for a lot longer, and that's one of the reasons that you saw the people buying treasuries. connell: what do you guys think of timing, jeff first, then brian. is there a political influence on that or just what dagen is talking about in terms of how the economic timing looks? >> well, if fed will tell you that they are not political, but i lived inside the d.c. beltway. i have very good contacts on capitol hill, and the federal

reserve does, indeed, look at politics. now, i've said for the past four months i don't think she's going to raise rates until after the presidential election, and i'm sticking with that call. connell: so december makes sense. do you agree, brian, that it would make p sense to stay out of this? it's going to be a quarter point anyway, you may as well wait for december? >> yeah, there's no upside for moving. they have a credibility problem, that's what dagen was mentioning, and that's still the case today. they make that credibility problem worse if they try to do anything in september, november. connell: four hikes a year, whatever happened to that? >> and she came back earlier in the summer, so huge credibility problems. again, that's why it just doesn't make sense for them to move in september. but if they can create a clear runway for december, they can actually guide and execute which is exactly what they need to do. >> and don't forget garbage growth in the second quarter. connell: it really was.

>> and remember that may jobs report? the economy's been all over the place, and the fed just kind of watches it like a tennis ball. connell: no, you're right. we're going to be talking about what the political campaign's been like the last couple of days, but if it wasn't about that, it could be about this. don't you think, jeff, trump could be making a case, say growth is horrible and, you know, the economy's in real trouble, that maybe -- is he missing a chance to do that? what do you make of the politics of it? >> i think he has missed a chance to do that. it's the nastiest presidential election i have experienced in 67 years on this, on this planet. i will add one thing. i talked to my economist after the yellen speech, and he thinks the number is 150,000 for next friday. if that's the case, rates are not going up in september. connell: right. okay. and we'll wrap it on that, brian, what do you think? is that a number that you would work with or -- >> that's a really tough number actually. but i do agree, if it's 150,

that takes it completely off the table for september. connell: i know the whole thing is a crap shoot, but what is your number, brian? sorry, dagen. >> i would say closer to trend over the last couple months, maybe 190 -- >> well, the trend is 292 and 255. good luck getting to those highs. connell: all right, guys, thanks a lot. boy, i apologize, dagen, for that teleprompter at the beginning, threw me off. >> you think. [laughter] connell: the federal reserve watching this disappointing number that we talked about on the u.s. econo.my there it is, dagen brought it up 1.1%. that's the growth point on an annual basis. kind of following what we were just talking about, could donald trump make a bigger issue of this? the last time a gdp figure came out, this was following up on that. he got off message and was talking about another topic, but now the presidential race has

turned into, you know, who's a racist, who's a bigot, all this kind of stuff that we'll talk about in a few minutes, but the economy is not great right now, is it? >> no, it isn't. and i think he certainly could make a case about that, and it hasn't been great for seven years. this is the slowest recovery we've ever had by a huge factor. but he doesn't talk about policy much, so i don't know that he will. connell: what do you think is going on then in the actual economy right now? you're right about the longer term and people put in the statements about president obama since he took office, we've had an annual growth rate of just 1.7%. so the 1.1 is a little lower than that, but it's been below 2%. what is holding america back the most right now, your view? >> well, i think it's we have the wrong monetary and fiscal policies. the policies that have worked in the past have been ignored. we have unconventional monetary policies. and probably the biggest factor we have is an extreme level of regulation. two or three times greater than any other administration, and that's why our productivity is

low and why businesses have practically no confidence in the future growth of the u.s. economy, because of that and because the world's economy isn't doing well. so these combination of factors. connell: that is something that could be fixed if trump, say, if he were to win, he could move in with executive orders and do a lot of that, couldn't you? wouldn't even need the legislation. or are you talking about something much bigger? >> no, no, absolutely. i think a lot can be done. and i think the bully pulpit of a president who says they are going to do something about the economy and do work on productivity and less regulation and, certainly, no increase in costs that have occurred to small businesses particularly because of obamacare. all these things have been very, very negative for business growth and job growth. connell: corporate taxes. that's something else that's come up, comparing us to other countries, right? we're not as competitive as we

could be there. what do you think the corporate tax rate should be? >> i think that the rate they're talking about around 25% is about right. you could be a little bit lower than that, but i think 25%'s a good place to start, and i think there's actually bipartisan agreement on that. and that should be something that could be passed in 2017, whichever party is in power. connell: it's not ridiculously low. it's not like ireland at 12% or some of the numbers, trump has talked about going much lower, i think 15%. finally, income taxes, upper income people, what percentage of their income should they be paying in taxes? >> i think the 39% is a reasonable number, but what i really would like, what i really would like to see is a much lower rate, marginal income tax rate and eliminate deductions.wa 25-30% rate, but eliminate all these deductions so that we

have, you know, relatively level income coming in by the lower tax rate, because the deductions wouldn't be allowed. that's a much better way to have the economy grow is have lower marginal tax rates. connell: right. then people pay the actual rate as opposed to getting all those deductions. thank you, sir. thank you very much for coming on. we're going to switch gears and talk about this battle for the white house that has turned into over the last couple of days a battle over race. both candidates just releasing dueling videos, and in those videos they attack each other on that issue. they also have been going at it on the campaign trail. watch. >> donald trump has built his campaign on prejudice and paranoia. >> it's the oldest play in the democratic playbook. you're racist, you're racist. >> more and more it seems as though his real message seems to be make america hate again. >> to remember these three

words: shame on you! connell: okay. all of that fuels the debate over who's best to fix inner city economic problem. we do have ebony williams with us in the studio as well as new york gop strategic adviser, john burr net. boy, it's been -- burnett. boy, it's been a couple of days. we talk a lot about the economy. to some extempt, this is an economic -- extent, this is an economic discussion, but it's really gotten ugly the last couple of days. who's been the winner and/or loser here? >> i think they both come off as incredible losers here. yes, both of them. you've got two non-black people talking very much about black people in this negative narrative. but really it's a bunch of blaming and name-calling. he's a bigot, she's a bigot. what i see is the actual black community becomes a pawn in this. connell: right. >> i don't hear a lot of actual discussions about how to actually fix some of these challenges the community has. connell: do you agree with that, first, john?

>> well, i think that hillary's attacks should be expected. why? because donald trump is making a play for the mother's milk of the democratic power base which is the black vote. connell: he's at 1 or 2% of the vote in the black community -- >> but he's going after it. connell: the only reason i asked that is some people have been saying this is really much more about suburban voters, many white women, for example, traditionally republican that donald trump has been losing in some of the polls, that his rhetoric is more about that than the actual black community. what do you say about that? >> again, donald trump is going after the mother's milk of the democratic party base, and with that comes a lot of attacks. but i do agree with ebony, donald trump has to say on message. he has to state why his policies are better. black people, including black lives matter, already know the history of the clintons, the crime bill and everything that they have done that has decimated the black panel -- black family.

so trump needs to make sure he gives black voters a reason to go to the polls. connell: has he done any of that? >> he's started. connell: really? give me one example that says, you know what? this would help in the black community. >> as far as jobs. connell: okay. >> he met with a group of not just black political leaders, but everyday, common folk. and he listened to, you know, what their gripes are in terms of jobs, education, criminal justice reform, things -- connell: well, that is true. that was a group of black leaders, black people not where his rally, the criticism is as you brought up, donald trump speaking to largely white crowds. >> that's right. and, look, hearing grievances and gripes is a start, i agree with you, you've got to start somewhere. but i'm talking about policy proposals, talking about advancing entrepreneurship opportunities u school choice, day-to-day things that are going to make life better economically and otherwise for the black community. >> he does this. he does that and he will continue to do that. just to back up a moment, when

he launched in terms of his advocacy in terms of the black vote and going after it, he stood up in front of a crowd of white people to tell them that, listen, there are a lot of issues in the black community that need to be addressed. how many other people have done that? and then he followed up with other meetings. [inaudible conversations] >> i was going to say, i would have been a little more persuaded had when he went to jackson, mississippi, which is 80% black, a, you know, ginormous black community, there would have also been a more diverse crowd. >> i think in this situation you're damned if you do, damned if you don't. connell: his campaign manager, kellyanne conway who was on with stuart varney today and respond toking to some of the attacks from the hillary clinton side on donald trump. watch this. >> this is all hundt has. it's not like he can tell us, hey, it's a good idea that millions more are in poverty or obamacare's a complete disaster, that i had no policy for energy

independence in this nation or rebuilding our -- stuart: she says donald trump empowers the white supremacists, empowers the racists by -- >> and i'm personally offended. i'm the campaign manager of that campaign, and i'm personally offended that's where she would take this conversation. connell: the one thing i'd say, ebony, is that hillary clinton did need, a lot of people would argue, to change the subject. you're talking about e-mails, the clinton foundation -- [laughter] this is how she chose to do it. >> and that's nasty. connell: so you think it's completely inappropriate. >> it's using the black community as a pawn for her political advantage, and i agree she doesn't have a leg to stand on in terms of credibility. you've within in proximity to power for 30-plus years, mrs. clinton. what have you done that has tremendously helped this group of people? connell: finally, do you think donald trump wants to talk about this topic? it seems like he's doing it on purpose. he's going to go into the black community, some cities like detroit and others. does this work for him, or would

he be were better off avoiding ? >> absolutely not. donald trump, if he's going to be a leader for everyone, he has to reach out to everyone, and he's doing that. connell: he's doing it. >> he's putting action behind it as well as policy. again, he's listening. just like he does in terms of when he's erecting a building. he doesn't only talk to the project manager, he goes to the electrician and the plumber, and that's what he's doing now. connell: thanks, guys. >> i appreciate the conversation, thank you. connell: well, coming up next, we'll talk about a number of these issues as carew toe coast to coast continues, but we'll also get into the epipen outrage. this has become a huge story. you know, is it being blown out of proportion? are the critics wrong? we're going to get into all that. then the big banks have a big warning about the market, and it's about donald trump. cavuto coast to coast, interest rates, janet yellen, politics, telecom, whatever. we'll be right back. ♪ ♪ you didn't read your car insurance policy.

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liberty stands with you™. liberty mutual insurance. connell: so on this epipen story, there's one person, and there he is, taking the company's side, mylan. know the ex-ceo martin shkreli who battled congress, he is defending the price hike for the epipen. here's a tweet from mr. shkreli, so the second mylan has a decent hit for a product, we all go nuts. can't someone succeed and not be shamed anymore? and another tweet, mylan sells 400 products at 50-95% off brand products. this is their big, one success and all of a sudden we want to burn them for it. gary b. smith is here. what do you make of that, gary? >> i kind of agree, i guess. connell: okay.

>> i mean, it gets to -- my question is, do we let congress and the government decide the prices of all things? first of all, they need to decide what is life-saving and worth, you know, your health, and then they need to decide the correct price. it's kind of what they're doing, to be honest, with obamacare, trying to regulate premiums. the reason we have innovation in this country is because of, quite frankly, greed. companies want to make money. connell: right. >> and if we -- connell: so if we had competition, the price would come down, that's the point. >> well, in fact, for this product we do have competition. first of all, we have competition that's being thwarted a little bit by the fd can a, making other companies go through -- the fda, making other companies go through hoops. it's really not the epinephrine, it's the injector pen. connell: they could make that

process quicker, right, and get them to the market, is that what you're saying? >> exactly. and then the second point is for the products that are available on the market, they operate a little differently mechanically, as to my understanding, as the epipen. is so physicians are reluctant to recommend those because they're a little harder to use. and, you know, when it's a life or death situation, you don't want to be looking through an instruction manual. connell: right. >> so there are alternatives out there, but the medical community is kind of lined up, you know, behind the epipen. that constitutes this monopoly, if you will, although, in fact, there isn't a monopoly. connell: and the story pulls at people's heart strings because many people either have children or know of children who need this, so they see the price, and it's very shocking to them. gary, thanks very much. i hope you're not uncomfortable being on the same side as martin shkreli, but that's okay. [laughter] >> depends on the tweets that i get. connell: right. [laughter]

remember, we had reported ability these vessels from iran that were harassing a u.s. destroyer? well, it's happened again, and the u.s. just retaliated for it. we're going to talk about it, coming up. ♪ ♪ :

. connell: you know economic growth, we were talking about it earlier, may be tepid right now, it's growth. citigroup is warning things could get much worse after the election. the chief economist put a warning out if donald trump wins, he could cause a global recession. we have former hillary clinton campaign adviser richard goodstein and former bush 43 spokesperson mercedes schlapp, both with us from washington today. i'm sure this will be an interesting discussion, richard, start with you. does this -- make the case, do you really believe that donald trump could cause some sort of big recession? if so, what are the policies he's put out that would hurt the economy so much?

>> you don't have to take the word of any democrat, connell. listen to mitt romney, he said the trump economic policies would cause a quote prolonged recession. mark zandi with moody's -- connell: what are they so worried about? >> first, he talks about a $10 trillion increase in the deficit towards the debt by virtue of his tax policies. we're looking at something that's going to question fiscal stability. he's talking about ripping up all the trade agreements that the u.s. entered into. >> that's outrageous. >> hold on a second, mercedes. connell: it's more mainstream. >> not more mainstream, every economist, the chamber of commerce is dead set against mitt romnes policies because they know ripping up the trade would rip up the economy. connell: it's trump's policies.

>> this is like the brexit panic. britain leaving the european union and cause a recession. as we're seeing the uk, it's not likely going to cause a recession. here's the deal. when you have the citigroup economists make the outrageous statement that trump's economic plan if elected president would cause a global recession. it's very irresponsible. you looked at economic -- connell: stop for one second, mercedes, they think the market would be uncertain, which would lead to you believe, people are pricing in a hillary clinton win because she's up in the polls. it would add to uncertainty and short-term a shock to the markets. that's what they say? >> it goes back to the brexit argument. remember the day when the brexit folks won? and what happened? the stock market numbers went down and it rallied again. so what i'm saying is -- >> mercedes -- >> i think it extends to the fact when you look at economic plans, what trump is proposing is clear of cutting regulations which we know has cost our

economy over $1.9 trillion. it's about cutting taxes, booming economic growth. compare and renegotiate trade deals. compared to hillary clinton. >> every single one of those policies when george w. bush was president and had the biggest economic collapse since the depression, mercedes. you were there! everything we heard comes out of the bush campaign. >> and the regulations did not cost $1.9 trillion, it is healthy, which is what obama and clinton is proposing. connell: depends on the time it happens. people argue that the reagan tax cuts helped the economy out a lot in the 80s so lower taxes help the economy. it depends when you're doing these things as to what is happening in the world? >> that's true. you're right. connell, absolutely true, all circumstances enter into it. democrats love to have the following debate.

clinton economy in the 90s, most robust economic growth ever, obama economy, 77 straight months of private sector economic growth, bush economy, biggest collapse, biggest collapse. connell: that's the point. that's the point. richard, mercedes, thank you very much. one thing i'll add about the citigroup note, they think trump is likely to win -- 65% chance -- or she does, anyway, mercedes, richard, thanks to both of you. we know donald trump is no fan of richard goodstein -- kidding. of janet yellen. she has weighed in today, and he says she'll be out if he's in. charlie gasparino is here next, following along? charlie is going to tell us who trump might pick if he wins. he has a list. could zika impact the election? zika? the mayor of miami beach is worried. more on that after this. many people clean their dentures

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i know what i can expect from usaa because i have my checking with them, my savings with them, my credit card with them. and then i learned i have this usaa car buying service. the usaa car buying app was really helpful. all the information was laid out right there. i was able to see the savings that i qualified for. it makes your life so much easier when you have to purchase a car, so i've been telling everybody. usaa car buying service, powered by truecar. exclusively for usaa members. . connell: so there are concerns growing in florida about zika and the election. miami beach's mayor told fox business he's concerned about the prospect of people waiting in lines to vote. suggesting that rick scott extend the early voting period. interesting development on this and monitor more of it, and if the details come in. the markets, now we're down on the dow, up earlier, everybody digesting the janet

yellen comments and donald trump certainly has been critical of the fed under janet yellen. openly saying he would replace her. so we brought in charlie gasparino in today. and charlie has a list of potential trump fed chairs. >> we should point out that donald trump hasn't won yet, you know. you know that right? connell: donald trump hasn't won? >> this is a hypothetical. >> people think he's won already. we're in a bubble here. hypothetically if he wins, not saying he is going to win because he's down in the polls, there are a number of economists. connell: i see, you are protecting yourself. i heard gasparino. if trump were to come from behind to win. >> come from behind to win, a number of interesting guys that people think are smart economists are running away from him, a lot of them aren't. david malpass, good guy, been on the show a lot. kevin warsh, if trump wins he

has a shot of being treasury secretary and fed or fed chair. a lot of these are interchangeable. from a policy standpoint, malpass is good, so is warsh, the jerry geithner years when he was at the fed derring the greenspan years and the bernanke years. these guys are ideological. larry kudlow, longtime supply side guy. brilliant pick. steve moore, i think he has a better shot of being in the council of economic advisers and more of a policy role and art laffer, the eminence of supply side economics. throw them in the mix when he's going to clearly consider them. connell: and anybody else? >> here are my wild cards. >> wild cards! here it comes. [laughter]

>> oh! scaramucci! >> the mooch. understands smart business, he's a harvard lawyer, not a trained economist, so again, wild card but donald trump is a wild card. connell: one way of putting it. must be a disclaimer there that anthony works here, obviously. >> and this is the wildest of wild cards. connell: come on! steve leeb, of leeb capital management. imagine him on the humphrey hawkins. >> china! and we should point out steve is substantive. knows the economy, a longtime market guy and economist, he knows his stuff, and he knows a lot about china! >> try to back track, making fun of our friend steve leeb. he's coming on today. >> you should ask him if he's

been asked. should i tell you i can't wait for the humphrey hawkins testimony. connell: it is not called that anymore. >> could you imagine him before congress? connell: leeb would be the best. >> it's so boring. connell: not leeb! it would be the obsit. >> listen to me! listen to me! >> we have to take a break, i know you have an herbalife story. >> a lot of talk about carl icahn, five board seats selling out his share. he tried to sell out, okay? we're going to get into this more later on today, what would possess him to sell out. and here's an interesting twist, this is in the journal. i care about this much. this is a great scoop. i feel my head between my leg here. they beat me on this. they said one of the buyers would have been bill ackman. that to me, this is one of the best wall street stories i've

read in a long time. more on it later. connell: i'm going to tell leeb you were making fun of him. >> good. china! >> the third-party candidates have been gaining more attention. a lot of people would tell you that, and some of them have been gaining in the polls. so with that, gary johnson made his case. this was an interesting interview earlier today with stuart varney. watch this. >> free trade! gee, let's force apple to make ipads and iphones in the united states. gee, let's apply a 35% tariff on imported goods. are we talking about donald trump here? yeah, we are. and if we want to turn over to hillary, you bet. she's going to grow government. if you want to waste your vote on either one of those two, go ahead! >> i was watching that interview before i came down, and tonight you can get more of gary johnson because john stossel has a special. a libertarian town hall, he and running mate bill weld will be

on, on the fox business network, 9:00 p.m. eastern tonight, friday night, libertarian town hall hosted by john stossel. okay, once was unhackable. people say you have an iphone, nobody can break into it. now it turns out that apparently has never been the case. hackers have apple scrambling a bit. we'll have the details after a quick break.

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. >> reporter: i'm nicole petallides with the fox business brief, active morning on wall street after fed chair janet yellen spoke in jackson hole, wyoming and made the case for a stronger case for interest rate hikes with. that we saw activity on wall street. $35 billion traded in s&p futures between 10:00 and 10:30, the busiest half hour of the year. we saw stocks reverse course since they popped on the news. had been up over 120 points, now down over 50 at this moment. also down the dow nasdaq and s&p, this week is looking like a down week. yahoo! gamestop, a lowers after weaker sales.

apple had to issue a new operating system after a dangerous flaw in hackers found. that stock down slightly. and auction website, apple one computers sold for 850 --

. connell: here's a business alert for you. target aiming to boost weak sales with a big discount for shoppers. this sunday it is offering 10% off nearly every item in the store. that will have a business alert. dollar stores posting disappointing same-store sales

suggesting the economy may not be so hot. especially for people in the lower middle class. dollar general ceo saying things have not gotten better for the chain's core shopper, and arguably gotten worse. the dollar tree ceo saying we'll see them as being still under pressure. deirdre bolton is here on that and a little more. could be key for that segment of the economy which is important? >> yeah, and hearing the same thing with dollar general as dollar tree, that segment of the population, middle class, lower middle class, working harder, they have higher health related bills and higher rents. less discretionary spending to spend and the businesses are feeling. that worth noting. walmart on the ropes for a little bit, however, that seems to be over, in the last set of earnings, eight straight quarters, walmart has reported that sales have been stronger than what most analysts were forecasting. teams like walmart is eating into the discount dollar

general and dollar tree into their market at the same time that area or that group of people is having a hard time of spending. they're getting it from all sides. connell: fair enough. while you're here, i want to talk about this story, at one point we thought you couldn't hack into an iphone. that is apparently not the case. >> not the case at all. apple did immediately fix it with a band-aid patch. you can go to settings, if you haven't done this yet, there is a new software version, apple is suggesting if you have an iphone, download it immediately. there is a human rights lawyer who received a dodgy text, had he clicked on the link, his phone would have turned into a spy machine, his camera would have taken whatever the person on the other side wanted, the microphone, his location, all his contacts and actually been able to essentially take control of his phone sending out false messages. so good thing this man forwarded it to authorities,

forwarded it to apple and led to the fix. this is a cautionary taeshlgs once there is a software created like this, someone is going to come up with another one. connell: of course. >> it's just a matter of time. connell: we've been told by the company over and over that these things, we have so much security in here, hard to get into. when a story comes out like this, it looks bad. >> the company could say that with confidence few years ago, when fewer people were on the operating system, the crooks and the thieves have gone the smarter and apple's products are available in more parts of the world, more people own them, it's a bigger system and better headlines for whoever hacks them. connell: they have the software, that's the fix. do the updates. people never do the updates, they should always do the updates. >> especially today, especially today. worth noting, the stock has taken a hit. if you look over the past 12

months, you know, it's up a few points but much less than the nasdaq or the s&p 500. apple had a lot of headwinds even in the political fray. donald trump talking about how they manufacture the iphones in china, at fox con, and fox conhas its own problems. they had two people commit suicide. there are a lot of issues and the refusal to unlock the san bernardino killers' iphone put headwind on the company as well. connell: thank you, deirdre. watch you this evening on "risk & reward." tensioned in the gulf, talked about the iranian vessels harassing our united states ships. now the united states responding to that taking some action of our own on this. we will have the white house response next.

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. connell: tensions have been flaring up with iran. a u.s. ship firing warning shots at an iranian vessel that came dangerously close after a u.s. destroyer was harassed in the strait of hormuz and the white house responded. >> it's unclear what intentions were or aims might have been, but the behavior is not acceptable. primarily because this is already a volatile region of the world, and in a compressed space like the strait of hormuz it only increased the risk associated with possible miscalculations. connell: we have the former army vice chief of staff general jack keane with us. general, when you hear white house press secretary say that and we've heard it before that something is not acceptable. what does it mean in this context to you? >> mostly that's rhetoric. they're just trying to talk to what the danger is involved here. have you to understand what the iranians are doing.

this is a tactical situation, including do not want to attack a u.s. warship, they are practicing against the warship in terms of when do we provide a verbal warning and what distance we fire flares, what distance do we fire a kinetic warning shot. they do the tactical things for strategic purposes. the strategic purposes is unequivocal. they love to humiliate the united states, but the target audience on their adversaries in the region, the sunni arab states, the kingdom of saudi arabia and jordan, they sent a loud message to them that the negotiations are over as of the middle of last year on the nuclear deal. we are the dominant iran, the dominant region in this nation, and we intend to return to what we were doing before, and that is to dominate this entire region, and i think they've taken the gloves off and it's absolutely remarkable the number of things they've done

and people are not connecting the dots. connell: if that's true, and we, being the united states, know that, that it is more about other countries than us. what is our appropriate response? should we just be talk as josh earnest is saying, it's unacceptable or do we have to do something? what's the appropriate response? >> the appropriate response is sadly something this administration will not do because they sought the deal with iran at the expense of allies in the region, they were subordinate to the deal, and the reality is they will not make the accommodation that is necessary now, as you suggest. what is necessary is to stand up against the iranians adventures in the middle east, seeking hegemony to be sure and unite with our allies against. that i would go so far as to say in form of arab nato that would stand up against the iranians as well as the radical

islamist movement. make no when you saw what that you have done, they were the ones that motivated the russians to get involved with syria because of the threat with assad. they backed the regime in yemen and forced the operation of our embassy. this is last year. they built an iranian shia force who has gone to iran multiple times. that force is 100,000 and have undue influence over the government of iraq. they fired three ballistic missiles as we know in the last year, medium-range missiles in violation of the u.n. resolution. they are about their business which is domination of the region and we have no plan, no strategy to deal with it, and here we're saying, well, this is unacceptable. >> they know their self interest. we have to know ours. general jack keane, thank you very much, thank you for joining us. >> good talking to you, connell. connell: janet yellen signaling

a rate hike is coming. we don't know when. do investors believe her? what are plans going forward. we had triple-digit gains earlier. now down 50 points earlier. we'll talk about it next, fox business. we continue. if you have medicare

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. connell: all right, back on "coast-to-coast." janet yellen telegraphing, rate hike is coming, we don't know when. we'll cover them the best we can. i'm connell mcshane filling in for neil. she makes a case for a rate hike, in her speech in jackson hole. the market doesn't know what to make of it. investors bid up stocks and now down a little bit. peter barnes will start us off, he's in jackson hole and knows the latest from there. hey, peter. >> reporter: that's right, connell, let's look at the two key lines from janet yellen's speech this morning to the economists and central bankers

at the annual conference in jackson hole, she said quote in light of the continued solid performance of labor market and outlook for economic activity and inflation, i believe the increase in the case of the federal funds rate has strengthened in recent months. that suggests she could be open to another rate increase sometime later this year, as early as the september policy meeting at the end of september but there's also the november and december meetings, and wants to bring it back a bit and says of course, our decisions always depend on the agree to which incoming data continues to confirm the fed's outlook, so there is her wiggle room to avoid trying to telegraph a specific date on this. data dependency is the message and recall before the september meeting, the important august jobs report. we saw strong numbers in june and july.

half a million jobs created in the two months, and we'll have the august report, they'll have the august report to look at as well as two key readings on inflation. so i think that those data points may determine whether or not yellen and company decide to move in september. connell: we'll cross and circle september 2nd, the big date for the august jobs report. peter barnes, a little breezy in jackson hole, the hair spray is holding quite nicely. [ laughter ] you look great. peter. bring in our panel to talk about this and distinguished panel with the dow down by 42 points. they're trying put together themselves investors what to make of janet yellen's comments today. liz macdonald is here, "after the bell" co-host david asman d forbes contributing editor, bruce is out in chicago. david, let me start with you, then. she gives herself wiggle room. we have an election coming up also. >> and obviously she does not

want the man who said he'd fire her to be elected. i don't think there's anyone happening before the election. jim comey talking about hillary clinton's e-mail. you know, there's a case to be made for her being prosecuted. she did this, she did this, and then doesn't get prosecuted. essentially janet yellen, there is a case to be made. connell: we could raise rates. >> we know what happened last time with the mini rate hike, the market went down 10% and she doesn't want that to happen before the election, which is why it's not going to happen before an election is my view. connell: supposed to have four hikes this year, right, emac? >> why explain the fed industry which is a multitrillion dollar industry out there. i like to look what the fed funds future is saying, better than 50-50 odds december, could happen this year. are we going to see quarter basis points? yes, it's going to be gradual and slow and tiny increments. connell: you think, bruce, once

janet yellen and company start raising interest rates, and say liz is right and others are right that it's december. past an election, and then they say, as she did make the case today that things are getting better. do they then continue to put interest rates higher in a fairly significant clip or how do you see it playing out? >> it depends on what the makeup of congress is and what sort of the economic taxes are after the election. clearly the jobs reports are looking good. if they raise it a quarter, i see the market might be building something in because bank stocks were up a little bit today, maybe they settled back down, i haven't checked recently. that's what i think. >> to bruce's point, it's a good one, the fed is keenly aware of the 90s when they ratcheted up at a faster pace than expected and the markets got a little rocked. greenspan dialed it back a

little bit and learned it again after the 2001, 9/11 attacks. >> one thing that is significant about the fed these days than back then is they are so regulated by the markets. there was a time when the fed didn't care anything about the markets when volcker used to do things knowing the market would crash as a result of it. he didn't care. greenspan cared a little more but janet yellen is walking on thin ice worried about what's going to happen quarter percent rate hike. you cannot -- their responsibility is to make sure the money we have in our pocket is worth the same tomorrow as it is today. not worried -- >> ad hoc. connell: this is weird. we have a couple topics we want to talk about. bruce, what do you make ever the point david is making? there is that sense of hey, whatever we do, we're independent, we're apolitical,

not going to worry or don't care what the market does. this is necessary for the economy. that isn't there anymore, is it? >> the comment about the market is a good point -- >> wait a minute! >> you can disagree with him, bruce, that's fine! >> david, i would disagree with the sense the market has been on such a roll since this white house has been in power, i don't think a quarter percent increase would hurt. >> it's been on a roll since the fed has done nothing but please the market. that's why the market isn't going crazy. >> let david have it! >> 10,000 points. connell: forbes on fox which you have to watch on fox news tomorrow morning at 11:00 a.m. since you guys are here, we have other topics, i noticed how you tried to bring up the hillary clinton story earlier. >> i didn't try, di. connell: that's right. that was a good point you made.

the clinton foundation, all week long has been back under the microscope. so emac, as she is want to do has been digging into the story and digging into the numbers. before we talk about it, ms. mcdonald, tell us what you learned. >> the audit of financials that i want to look at. it has all of the units. so what i found out is -- this has been reported to is the clinton foundation is its own entity, it's its own animal. not like any other nonprofit. not a conduit that ships out money to other charities. it employees 2,000 people. it raised 2 billion year to date. it has a budget of more than 220 million bucks. connell: so what's the big takeaway? >> you can't compare it to other nonprofits. the takeaway is the clintons will say 88%. here's a stat of basically of our expenses go to program services. well, that includes -- that

makes it sound like it's really great but includes salaries, travel and conference meetings and all of that, it has its own staffers, right, who go out and do charity work. so charity navigator say it's so unusual, we can't compare it to other charities and the better business bureau says it needs to do a better job of proving effectiveness. connell: what do you think of this added on the clinton foundation? >> elizabeth makes a great point. i'll give the viewers a great website, guide star.org. you can look for free at any foundation's tax returns, and if you give money to charity, you should look at these. the gates foundation, the salaries of these fund-raisers, they're huge! we would all change our careers if we knew what was going on. i think when they start to unravel this, should she win, there's going to be investigations, just because people are going to be shocked. >> a very good little point as

bruce would say, all kinds of dimensions to the clinton foundation. they have all kinds of divisions, some of which one was in sweden by the way, which got a $25 million contribution from the swedish government, lottery foundation there, and it wasn't listed on the irs role. there are a lot of iterations of the clinton foundation that people don't know about. >> and on trump's tax return, you can see it all. >> we can talk more, i have a breaking story from overseas and we can get back to all of this. the story is british police have arrested five men on suspicion of a terrorism plot. we're just learning about the story right now. they say in great britain that the investigation is live. further searches are going on. five arrests overseas. british police just announced this, five individuals arrested on a terrorism plot. so we could talk more about this, but we also have the other topic, topic number three i wanted to get to with the panel. the epipen story, talking about

it throughout the week, the price hike fallout continues, white house responded to the mylan ceo blaming obamacare if the price hikes. this was the response, listen. >> i think it is hard to try to deflect the blame for the increase in price to anything else, including obamacare. connell: okay, bruce, not exactly the -- not sure what to make of that. i ask you to take it from here? >> well, that's ridiculous. blaming obamacare, this is the oldest trick in the book. these drug companies, they use the coupeong, you go to the allergist office, full disclosure, i have a child with food allergies and we'll give you a coupon to cover the cost of the cop and the drug costs $600, and then the employer or the taxpayer, whoever gets stuck with the bill.

this is a great story because this lady who was running the company, she was a lobbyist first, she knows how the system works and that's a problem. there's no transparency with drug prices. >> bruce is half right. he is about half right. it is a crony capitalism story. washington was needed to give this company the monopoly. that is absolutely true. but the other thing is why is there a monopoly? why isn't there more competition? it's not rocket science, you put this drug in a pen, it's a simple thing to make, the drug is cheap. the reason is because of the fda. the food and drug administration prevented several very decent competitors including teva pharmaceuticals who had a good working model of. this the fda said you can't have it, too many risks involved. fda is too big a regulatory body to allow competitors, not

anti-capitalism story, it's anti-regulation, in my view. >> as it was with hiv drugs in the 80s. >> exactly. >> isn't that fair, bruce, the price would come down? >> listen, the fda does need the speed reduce of new products. >> you think? >> there's no question about it. but the problem is that this company totally took advantage because when the patent was coming off and they thought there was a generic coming, they jacked up the price knowing health insurance companies couldn't do anything about it because they thought a cheaper one was coming on. >> the epipen expires after a year. it's time to watch josh earnest to go through the glossary of synonyms he can use, he chose hard, he meant to say annoying that they did. that blaming obamacare because the deductible is so high so it hits your wallet. you feel it and it's visible, the cost of the drug.

connell: >> one word can solve the problem, that is competition, competition can solve all of the problems. >> and transparency. >> right, they raise the prices because they can, and then -- >> with a monopoly, you have that power. connell: 600 bucks if somebody is charging 300. thanks to all three of you. david already pointed this out, you can catch the three of them -- >> it's a good little point! >> that's the best ever! that was great. you know what? david is full of it. [laughter] he's sort of right. david, bruce and liz tomorrow morning at 11:00 a.m. eastern. donald trump and hillary clinton have been ramping up attacks on each other the last couple of days and trying to make the pitch to minority voters. we'll take a closer look at that economic pitch or the economic fixes they proposed, coming up next. you didn't read your car insurance policy.

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liberty stands with you™. liberty mutual insurance. . connell: back to talk a little politics now. donald trump continuing to make his pitch to minority voters as he's been saying, he's been out there on the campaign trail but tensions have been heating up as well. and donald trump hot off the press if twitter can be a press, tweeted the following -- all caps. blake burman is with us now and it's been an interesting couple of days, right, blake? >> reporter: interesting couple hours with donald trump and hillary clinton, one after the next between these two today. they did pick up where they left off yesterday accusing

each other of engaging in racist remarks. you just read one of them there. this started yesterday, clinton ignited issue with 30 minute speech and has a tv ad up in florida, ohio, pennsylvania and north carolina. watch here. >> what do you have to lose? you're living in poverty? your schools are no good. have you no jobs. >> trump management was charged with discriminating against african-americans and breaking federal law. >> i have a great relationship with the blacks. >> reporter: and that was half of that ad, connell. trump has responded with a couple videos posted to social media and you just hit one of the themes he's been going after today because in one of them he talked about clinton goes after her for her 1996 remark in which she spoke of super predators, here's trump. >> no conscience, no empathy, we can talk about why they ended up that way.

first we have to bring them to heal. >> you called out secretary clinton for defending the term super predator in the 90s when she supported the crime bill. why did you call him out? >> it was a racist term and everybody knew it was a racist term. >> reporter: trump is accusing clinton of using, quote, racist undertones dating back to her 2008 campaign. connell? connell: blake burman in the d.c. bureau. and trump facing resistance in the push for the minority vote. the hispanic chamber of commerce ceo heated on this very program yesterday. so watch this. >> to donald trump began his political career by denouncing immigrants, denouncing the hispanic community. >> immigrants or illegal immigrants. >> immigrants, the hispanic community, period. he denounced them the past year, this is a classic case of way too little, way too late. this is an act of a desperate candidate that knows he's going

to lose with the african-american and the hispanic community. connell: former bush 43 special assistant ron christie on to talk about. this trump will use a phrase like something is going on here. in this case with, this back and forth the last few days, and as blake said the last few hours, what's going on here? what are the candidates trying to accomplish? >> sadly, connell, the country loses here. we have the iranians buzzing u.s. ships, a very, very feeble economy, and yet and still have you donald trump and hillary clinton trying say which one is the bigger racist and bigger bigot and these folks wonder why americans hold politicians in low regard. let's talk about education system, how they're going to strengthen our homeland, this going to the bottom of the drain, i think everyone loses. connell: this is on purpose, as i know you know, and the reason i point that out is sometimes the criticism of trump has been he gets quote, unquote off

message, he starts tweeting or talking about something in speeches that is off message. blake played an ad for us that he prepared to play in his report. just as i'm introducing blake, donald trump tweets out basically the same thing that's in the ad, the super predator comment. they think they win, they being the trump people with, this argument. you don't think so? >> they do, and i think they're mistaken. my former boss said, the current governor of ohio, john kasich, got 24% of the african-american vote. he didn't do it by pandering or trying to insult his opponent. he said this is what i've done for ohio, here's what i'm going to do for you, my constituents, here's why you should re-elect me. it would be smart to take a page from this book and stop pandering based on race. if she doesn't get 90% of the african-american vote, she's in trouble. trump breaks into it. it's as simple as that.

connell: is it an economic argument to essentially black voters i'm donald trump and i can do better than the democrats have been doing for you. that's what he says it is. others argued it is more about white suburban voters, particularly women where donald trump is not polling as well as previously and groups he needs to win, if he can convince them he's not, say, racist or can't be painted racist by his opponent, he wins some of those voters back. what do you think of that? >> interesting dichotomy. the trump campaign is saying maybe we can smooth the edges of mr. trump's personality by appealing to african-americans and saying i will go to the inner city, i will find a way to make the standards rise there and makes more appealing candidate. but on the other hand, and this is something i've been tweeting about, you can't make the generalization that all blacks are poor or all blacks live in areas where there is crime and they're on welfare because then again you get into the stereotype of all black, a certain way, and all americans

are different stripes, different wealth, different background. connell: good to talk with you. >> pleasure to see you. connell: back to janet yellen in a moment with the suggestion that interest rates are eventually going higher. we do not have a timetable. is the fed mismanaging our economy? jon hilsenrath knows a lot about. this the fed insider at the journal and latest column has gone viral. it really has. we'll talk to jon about it after this. better buckle up.

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>> covering it throughout the program. federal reserve chair making a case for rate hike at some point. dow is lower by 60 points. is the bigger picture federal reserve fueling more problems? there it is straight from the headlines. jon hilsenrath latest column in the journal is being circulated around wall street. he joins us now from beautiful jackson hole where peter barnes was on earlier. like peter, jon has good hairspray in.

it's a little breezy in jackson hole >> there is no hairspray but wind. charles: we credited you with a column. you years of missteps you talk about in the latest column. anything you would add to what you have written? >> the fed's problem is broader field of economics. so i write in my story today, how the fed missed a really important slowdown in productivity and how that has led them to really have back and forth policies on bond-buying programs and interest rates. how, they misjudged how long it would take inflation to get back to the 2% goal. they missed how publics have become a greater problem for the financial system. and these are all problems that economists generally have had.

so, i don't want to beat down the fed too much with the story because basically so many ph.ds have missed some of the same problems. connell: as you write, they engineered unpopular financial rescues and stopped buying gee lay and planned interest rate boosts. >> right. connell: you're right a lot of people missed it but it is really important big picture point we don't talk about enough. doing business news, being on television or radio talking about business news for a number of years, a number of years ago, it was like, hey, the federal rehe serve chairman is testifying, let's watch it. people who watch us, this may abroad generalization, there is definitely not that trust. we look what people write or tweet in about, whatever it may. these guys are all the same. we don't trust them. that has changed. >> absolutely and that's really what drove me to write this story is trying to understand the mistrust that's out there

and the mistrust frankly i see directed a the my own reporting for "the wall street journal" or for fox, you know, the deep level of skepticism we see in the public about what we're telling them is coming out of washington, d.c i was trying to get to the bottom of it. we've seen the economics field kind of misunderstand the effects trade would have on the economy. the effects of technology. also the effects of the central bank. the fed was seen, 10, 15 years ago as the savior for this economy. connell: right. >> as the institution that would keep us on an even keel. here we are seven years after a financial crisis that almost drove us into a depression -- connell: that is what it is, rao isn't. that is what it is. 08 ruined everybody's faith what we do in some ways and what they do, do you think? >> i think there is two things. there is '80 and bailouts that seemed fundamental unfair --

'08. fed's view a lot of economists agree it prevent ad depression. after having done all that we got meager recovery. it is not proving much wage and income growth. people are fed up with it all. peter barnes and i were at an event last night where the fed got an earful from a bunch much activists who are saying this economy has not spread gains of improving job market far and wide to low income communities. connell: that's interesting. even at an event like that at jackson hole. man, you're definitely on to something. it is really good column. it hits on some. things we talk about more. be careful, peter barnes and nightlife, he has quite a history, that peter. jon hilsenrath. >> i thought you were going to tell me watch out for bears, not watch out for peter barnes but i will. connell: i'm joking.

he is probably screaming behind the camera. i hear you, peter. coming up in a moment, we have growing calls for hillary clinton to address the media, right, 260 plus days since there has been official news conference. rnc talked about it. trump talks about it every day. will this hurt her come november? we'll talk about and debate it next. (announcer vo) who says your desk phone

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connell: this is weird. i don't know if it is friday and but one of the producers walk out on the set, hand me sunscreen, kfc sunscreen, swear to god. has a pictof colonel sanders ont and it smells like chicken. which it really does smell like chicken. oh, my god. i say, why are you giving me this? but it turns out there is a story apparently about it, because kfc is releasing, put some out, additional 3,000 bottles what they call extra crispy friday chicken scented sunscreen today. now, i wasn't around this morning so i missed this but guy behind it was on "mornings with maria," apparently. i will have to go back and watch this. yum! brands, see how we make it business story, kfc, yum! brands, is at 89.65 is the stock. i don't like to be too judgmental, this could be worst single business idea ever. why would you want sunscreen to smell like chicken. do you have any idea?

who am i talking to? that is matt the stage manager. he smells like chicken. he is rubbing it on himself which is also odd. yum! brands, at 89.62. congratulate to yum! brands. it made us talk about the story. maybe it will help, not today. we talk about retirement crisis and the savings crisis brewing with retirement savings. the obama administration unveiling some new rules to make it easier for states to set up retirement programs. to talk about that economist dave maney, says social security is in trouble and this is not the answer. we have vince coming up in a few minutes. dave, let me start with the social about social security. it is not going to be around is it, when i need it? >> that could well be. it is not too hard to fix. we have such incredibly dysfunctional political system we can't even take the most

basic, fairly easy and straightforward steps to fix it. so instead, quite unbelievably to me, over the top, comes once again the obama administration with a set of rules that are, kind of ultimate nanny state, you're too stupid to save your own money kind of bandaid that tries to fix what on a political basis should be quite easy to fix. connell: yeah, it is for the states. you're right, they want to protect you i guess from yourself, is that the idea? >> correct. this is socialist security. connell: right. >> it says, that that states can now set up what to amount to giant state retirement funds and give you only a negative option to get out of them. so when i go hire a new employee at my company, he or she would automatically be enrolled unless they said, i don't want that. connell: okay. >> and in effect, force them to save more money. connell: got it. that doesn't -- i got you on that one. vince is with us as well.

we want to talk about this next topic. the clinton foundation, questions have been piling up throughout the week about the foundation. lawmakers push for further investigation, calls for hillary clinton to talk about a press conference, talk about that, talk about anything really. rnc pointing out 260 plus days since she had a official news conference or press conference. from "the daily caller," we welcome vince colin aice, to talk about this along with dave maney. do you think this -- how big of a deal is this, vince, the fact she hasn't held a press conference? to me it's a pretty good deal because you could get questions from someone you would never sit down with one-on-one interview with, right? >> yeah. if you're the hillary campaign you think questions about corruption are just going to go away by avoiding press conferences you're huffing chicken scented suntan lotion. connell: don't knock it until you try it, vince.

>> you about the reality is, i think the clinton campaign is making a calculation here. comes out of the words we heard out of hillary clinton's mouth this very week. she says every time she tries to answer questions about her emails sounds like she is making excuses. a short of a shorthand way every time hillary clinton answers questions, people have more questions about her trustworthiness. her trustworthy numbers are half of donald trump's. so she really does have a problem. when she speaks to the public, especially unscripted way through a press conference, she never leaves on top of that, the clinton campaign knows it. connell: i will not necessarily put you on the spot, if you have a suggestion, definitely three it out there. are there questions not being asked by people who interview her one-on-one? because those are unscripted interviews. she called in to cnn the other night. there are a few other interviews here and there the last few days. are they not asking, do you say other journalists are not asking right questions would be asked at a press conference or? >> i think in general the press

is very hesitant, they have given her the benefit of doubt until the associated press rolled out its piece last week talking about sheer access of number of donors gaining access to hillary clinton while she was at the state department. when we, we see a lot of reticence from journalist to be the first to take the step to ask questions like that. then actually after the associated press published story i think was a perfectly good piece, you had all of these journals whose instinct was not to challenge hillary clinton on the propriety of this but instead to attack the associated press for even reporting it. agreeing with the clinton campaign's assessment this was cherry-picking of data. so often credit duality towards clinton campaign is embarrassing by the press. connell: other issue people requesting one-on-one interviews, this is not necessarily criticism of one particular person or another, they would want access to that person again. whereas at a news conference you don't care about that as much. you know you will not get it, fire away with whatever questions you can.

vince, thank you very much. we have to move on. thanks for coming on. >> my pleasure. connell: we'll talk more about the epipen outrage that is not going away. a former fda initial tell us who is really at fault for the price hike. is gary johnson getting attraction, the libertarian, his ticket? him and bill weld trying to get their message across. here tonight on the fox business network, 9:00 p.m., john stossel will hold a libertarian town hall. you don't want to do that. here is a preview. >> what would you do to create jobs? >> government doesn't create jobs. private sector does. >> what would you do? >> you can count on certainty when it comes to rules and regulations, when it comes to hiring, when it comes to being in business for yourself. >> certainty will bring jobs? >> certainty will bring job. >> that is true. small businesses don't need big tax cuts. they need to know it is one ray ratchet and taxes only going in one direction, down.

if they internalize that, they will build that second factory and employ another 15 people. connell: that should be good. part of what is a blockbuster friday "nightline" uphere on fbn. see the nike special with greta and stossel town hall, and "wall street week." we'll be right back.

reporter: i'm adam shapiro live on floor of new york stock exchange with your fox business brief. look what is happening to markets.

we had been in positive territory but we're back in negative territory. dow down 58 points. s&p 500 down five points and nasdaq off 6 points this after janet yellen spoke in jackson hole, wyoming. oil market shrugged off not pinpointing when there will be rate increase. oil comes on news of the by the saudi arabian oil minister says demand globally will be picking up. there is meeting next month of oil producers maybe to cut production to drive the price higher. vix is at a seven-week high. on track for the greatest one-week gain recently. up about 2%. tesla is up about 2%. some people call it chutzpah. they are raising cost of autopilot system, $500. 2 will be a $3,000 option. ♪

[announcer] is it a force of nature? or a sales event? the summer of audi sales event is here. get up to a $5,000 bonus on select audi models. connell: back to the epipen story. former fda official peter pitts is here. this outrage, peter, thanks, number one for joining us. we were talking about it earlier. what can you add, for people who weren't here, the basic discussion was that mylan does not have competition, right? they keep raising prices. this one was drastic raise, people angry about it, but if there was competition, somebody else in the market you wouldn't

be able to do this, competition would keep prices lower. what why is that the case. >> epipen is hard to make. connell: it is? >> the waxman legislation allows fda legislation. connell: i have number of friend who have children have to use it, life and death serious. >> yep. connell: we know that. why is it hard to make. >> the drug epinephrine is not that complicated. the device, the actual pan requires manufacturing sophistication. what i gather the teva product, the gerinewant to bring to market hasad issues. fda can claim victory here, can be a hero working resources with teva to help them get their product approved to bring competition to the market which brings access and quality and safety. connell: because the criticism of the agency has been they're not doing enough and especially i should put it, not doing it quickly enough. so isn't that fair to some extent maybe they're not focused on this as she should be, with

public attention on it they will? >> back in the martin shkreli days the fda said they were going to start to prioritize generic applications for first to market generics. connell: right. >> like, for example the epipen type of situation and reduce the approval time or rather the review time from two to three years to six months. that was in march. they're trying to get there. connell: yeah. >> they have gotten legislation to give them more bodies to get it done. hope it will happen. they can be the hero to bring products to market, quickly, safely, effectively. connell: there are, people understand, there are companies, you mentioned teva, making a generic version but not at the point where it is approved. what holds something like that up? >> lots of things. it can be a problem in the manufacturing. it can be a problem in the, where they are getting drug from, how they're mixing it together. there are a million pieces -- connell: can be bureaucracy to some degree, red tape or things like that? >> probably not. fda recognizes importance of product. they will not hold it up.

the other piece they don't want drug shortage come to play. if you have only one drug manufacturer, not only price stays high but issue of shortages this is life or death. i think fda is on top of it. they have to do more to make sure it happens quicker. connell: peter, thank you for coming in and explaining your side and your expertise. >> you bet. connell: peter pitts, who used to be at the fda earlier today on this very program charlie gasparino was in here and the two of us were talking about a number of things. you may have heard him talk about, well, this man, the man himself. he is a legend on "cavuto: coast to coast" steven lieb. here he is. what are you drinking, steven. steven lieb is here. i will tell you this is exclusive. and it is coming up next. ♪ there's no one road out there. no one surface... no one speed...

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connell: pointing out the market is down a little bit today. up a little earlier. 80 points right now. we talked about janet yellen's comments. donald trump would replace her as chair of the federal reserve. steve, always good to see you. about comments a mutual friend deliver ad earlier. charlie gasparino. i don't know if you saw this but here is what charlie had to say. >> this is the wild evidence of wildcards. leeb capital management. connell: best fed chairman ever. >> steve is very substantive as well. steve knows the economy. been a long time market guy. economist. he knows his stuff. connell: charlie thinks you should be the next fed chair.

charlie and i think you would give the best federal reserve testimony of all time. >> i want to say something about charlie. connell: uh-oh. >> on wake of "brexit" he made by far the most intelligent comment i made. connell: what? >> i heard it sitting right here. he said maybe this will spur these people on to do some real serious spending, infrastructure, roads, et cetera, and that may really be the tonic europe and even britain needs. connell: why are you kisses up to charlie? >> i'm just remarking. said that to all the other people that were on the show at that time. so i mean it really is true. connell: nothing about dinner over at the restaurant later? >> nothing. not even a cup of coffee. not even a vodka. nothing at all. connell: even on a trip to china? nothing like that? you and charlie should go to china. >> if he speaks mandarin i'm up for it. connell: i'm sure he does. mandarin and a little slice of italian. let me ask you this, janet yellen speaks.

market goes up 100 points. huge deal. then it goes down. what happened do you think, today? what is going on today? >> what is really interesting, janet yellen, grandmother-like individual that she is, very gently saying the economy is getting better. she speaks softly, moving toward our goal of full employment, inflation is getting better. there's room for a rate hike. nothing at all surprising. it is sort of like she echoed exactly what people were saying during the week. connell: right. >> maybe because of her soft voice, even toned down, market rallied in particular, the dollar down. initial response, because we may raise interest rates up but then sharp decline in the dollar. gold and silver, big moves up. connell: so what's going on? >> then what happened, stanley fischer, who is the vice chairman gets on and someone, somewhere, asks him a question,

do you expect a definite rate hike? would it be possible to have two rate hikes? he said what the chairman said is perfectly consistent with their being a rate hike in september and another rate hike in december. this turned things around. connell: nobody thought september. >> right. and what he was saying we are not committed, as yellen implied, as yellen implied to a slow movement in interest rates. connell: i hear you. >> we could go for fast movements in interest rates. everything changed in the markets. connell: interesting. gogo in september. we have to go, you don't think they go in september anyway, do you? >> i guess 75-25 they do? connell: you do? >> at least one rate hike. connell: as parting gift, give you some of this kfc sunscreen. it smells like chicken. >> i like chicken. connell: stephen leeb. good stuff.

:

. connell: all right, as we hand over this operation to trish, we do so with the dow down 86

points, a lot of red on it. up over 5% tonight. don't forget "wall street week" and libertarian town hall with that will be a big night tonight. over to trish regan. trish: going to be a good one, the market is all over the place amid news janet yellen intends to raise interest rates at some point. we're live from the fed's big shin dig in jackson hole coming up. donald trump and hillary clinton engage some of the worst attacks against each other yet. i'm trish regan, welcome everyone, to "the intelligence report." investors reacting to janet yellen's positive assessment of the economy including the job market, which means in fact, that she may raise rates, perhaps earlier than some anticipate. talking about september. we don't know exactly when she's going to do it but promising it's going to happen at some point, and that has the market trading down about 82 points right now.