at it now, 14 up again, 27.98. it's time for me to pitch to neil cavuto, my colleague, and i've got a question for neil. heads up, neil, watch this: this is a $100 bottle of water. which would you rather have, the $100 bottle of water or four shares of snap? [laughter] neil: hhm. >> ooh. neil: both could be questionable. like i don't believe that came from a glacier, did i arou say that? stuart: sweden. norway, sorry. neil: i think they're lying. [laughter] i don't think that's the case. that's questionable. snap and its financials a little questionable, so i don't know, i might pass and go for what's behind the curtain, you know? stuart: neil, do your viewers look forward to toes which i give y give to you every day? neil: not really. [laughter] but i do. i do. stuart: it's friday. neil: it is. by the way, i will say this, and thank goodness you're doing it

and you're relentless on this tax cut thing. i think these markets are weaving in and out, up and down based on the prospect for this thing coming to spas. stuart: i think so. neil: it's undeniable. you can time it tick for tick every single day. the better it looks, the better stocks look. i think that's undeniable. touche to you, my friend. stuart: thank you for the support there, neil. it's all yours. neil: thank you very much, stuart. all right, well, this russia thing and who knew what and when, jeff sessions recusing himself and all of that, it's just another one of these wrinkles that develop and get in the way of things stuart was talking about he wants to see republicans doing and a whole lot of other investors want to see republicans doing, that is providing what could be the biggest tax cut in a generation. whether you think justifiable preoccupied or not, investors sort of take their marbles and go home or, certainly, their gains and go home. that has been the case certainly

over the last couple of days. whether it continues or this is much ado about nothing, anyone's guess. but, obviously, these distractions are real and sidelining some of these other interests to the markets, note my tax cuts and regulation cuts, all that stuff. connell mcshane here to cut to the chase. >> reporter: neil, you're right about that. every time we see this subject get breached, we see the market gets worried. the white house is desperate to stay on message generally speaking. we saw the president o yesterday when he was in newport news, virginia, pushing the military spending message. today it's a school choice event in orlando, florida. but the sessions story is making it very, very difficult to do that. it's still at the top of the news in many places, and the attorney general himself made this argument about it when he was interviewed last night on fox news by tucker carlson. >> i don't think what was said about that heating i had with the russian ambassador was

legitimate. , i think it was hyped beyond reason, and i think it was unfair. >> reporter: the president also coming to his defense, he tweeted out a statement about the whole sessions ordeal, the meeting with the ambassador. jeff sessions an honest man, he did not sigh anything wrong. he could -- say anything wrong. it was clearly not intentional. the real story, all of the illegal leaks of classified and other information. it is a total witch hunt. funny enough, the same term the russian foreign minister asked when he was speaking about this whole ordeal today. so why is it so difficult to put this story, you know, in the rearview mirror? i mean, number one, to be fair, there's some questions that still need to be answered, there are investigations that are still underway, so in that way it's an active story. but you also have democrats in washington just absolutely going for the jugular. watch. >> the fact that the attorney

general, the top cop in our country, lied under oath to the american people is grounds for him to resign. >> for the good of the country, attorney general sessions should resign. >> reporter: so we know there's no resignation coming, but we do -- as you pointed out, neil -- have the recusal. it came in last night from all investigations related to the alged russian campai meddling. and then adding to the drama, you have the acting deputy attorney general to take over this investigation until the actual deputy is in place and possibly confirmed next week. the president, again, will be in orlando even today, neil, trying to get the focus back on his agenda. that agenda that was just outlined in his speech on tuesday night, if we all remember that. seems so long ago. neil: indeed. connell, thank you very much. connell mcshane. then there is the issue of what to do about obamacare, repeal, replace, whatever. but there's sharp divisions among republicans, some conservatives like rand paul who tell me, look, we're not going

to replace one big government albatross of a program with a slightly less big government albatross of a program. here's what he told me last night. the fear is republicans, they're falling apart. >> but there's another way to look at this, neil. put forward the bill we already voted on, you'll get unanimous support, be done with it -- neil: wait a minute, it's a simple reeel. >> yeah, simple repeal. and then put forward replacement at the same time as a separate bill. see, that's what i've been arguing for. i'd let the democrats put forward a replacement too. i'd give them a vote -- neil: not everyone agrees on a replacement, so you're back to square one. >> that's what would happen, you'd figure that out through voting. the big government people want a new entitlement program, they want medicaid expansion and they want somehow, you know, to have federal money pay for all this. let's vote on that as a separate bill -- neil: this is falling apart, isn't it? [laughter] >> no, no, neil. no, no, no, no, no. neil, it's simple.

you vote on complete repeal separate -- neil: they don't want to do it. >> i know they don't want to do it, but if they want conservatives to vote for repeal, they're going to have to give it to us separate from -- neil: assuming they don't do that, senator, then the tax cut thing is delayed if not off, right? >> well, what happens is there's a jockeying going back and forth, and they will have to see if they can convince conservatives to vote for their plan. but i can tell you it will not pass with a new entitlement program, the cadillac tax and they keep the individual mandate. these are the things we've been campaigning against for years now. neil: all right. >> they can't keep obamacare lite and expect conservatives to vote fort. neil: i stand by wt i said i my interview there, it is falling apt, and there's no other way to put a spin on it, especially when republicans meet behind closed doors and try to prevent the likes of senator rand paul and ted cruz and so many others from having a role in this and weighing in on this.

all of this at the same time we're seeing vice president pence -- this is live right now -- speaker paul ryan and health and human services secretary tom price in wisconsin. they are pitching their own plan, but here's what sticks in the craw of the likes of rand paul, that these guys are all in agreement on this replacement approach that some conservatives -- and, again, i mentioned three of them right now in the senate, that's all you need. any more than two all of a sudden this thing is problem mat you can. they agree with -- problematic. they agree on an approach that they're going to cook up in the house, then it's an up or down vote in the senate. three republican senators who are against it right now, this thing is dead. the approach that they're taking is dead. there's not that much wiggle room here. at issue here is how big a government role do we want in the nation's health care system. some of the leadership is talking about these tax cents that would -- tax created that would provide -- credits that would provide the means.

you get the rub. this is nowhere near done. and the reason why this kind of thing weighs on the markets is because not only does it delay getting any progress going on repealing and replacing obamacare, but it moves everything back when it comes to the tax consistents. so can you say antsy? to gerri willis and charlie gasparino. you know, lindsay, i'm looking at this, and i'm saying, all right, everything has to fall into place just right. and it's not an easy task, and i'm not blaming republicans here. but they gave the impression that it would be, you know, wham bam done, and it's not going to be wham bam doing right? >> and that's what we're worried about, the market's reaction to this further delay. on tuesday i think the market s very clear that they're willg to give the obama -- excuse me, the trump administration some leeway. they were very happy with the articulate presentation of the overall, still very pro-growth agenda that remains the focus of the trump administration.

but at some point, we're going to lose a lot of confidence, a lot of momentum that we've seen in the market if we don't see specifics. now, he did talk about some specifics in terms of obamacare, extending hsas, talking about being able to buy insurance across state borders, but there was no outline, no timetable, and there was no financing specifics which is really going to continue to give the market the optimism it needs that we're going to see a deal and, furthermore, that we're going to move beyond obamacare and start focusing on taxes. and that's really what the market -- neil: and that's the delay, that's the worry. you know, gerri, one of the things too, say what you will, most people like the headlines, you know, the coverage for people who don't have it. >> right. neil: cover average for those with pre-existing conditions who used to be unable to get it. where they differ is how you pay for all that. and what conservatives are feeling to the leadership they feel is ignoring them is, look, you're just replacing one monostros city with a slightly smaller one, and we're not going to sign onto that.

and that is a real palpable revolt. >> right. let me tell you specifics on that. i've just spent time reporting these numbers because it's been absolutely unclear what this tax credit was going to be and how much we were going to spend for it. what i understand if you score that better way plan, the original better way plan, the cost of that tax credit is $43-$44 billion a year. so you're covering lots of people, you're giving them an option not for people who are on employer-sponsored health care, but others. lots of people will turn to this, they'll be able to use this tax credit -- meehl that'll but to pay for that then, you're going to start taxing those -- >> you're going to cut out the expansion of medicaid. that's what pays for it. and apparently, i talked to the folks at the center for health and economy, they scored this. what they are saying is that, look, if you take out that medicaid expansion be, it pays for th, and net-net the dget impact iactually, you know, pretty much even. neil: so there you go. i think the bottom line --

>> if it was that easy, they would have done it though. >> well, no -- neil: apparently it's not easy. >> medicaid is highly, highly controversial. neil: there are a lot of those that don't like it. but having said that, the bottom line here is that these markets, they are priced for perfection, everything getting done to lindsay's earlier point, and i think that now -- maybe reality's catching up here, you know? it's been a heady advance, and i'm wondering whether the folks yaw talk to, charlie, are saying, gee, maybe this doesn't happen, certainly in the august timetable. >> well, you know, hope remains eternal. a lot of wall street like -- they like president obama -- president trump because he's not president obama. you get some credit for that. you give a decent speech, you talk some free market politics, and markets go up. stock traders trade off headlines. i will say this, though, and here's the underlying fear spoke spoken on wall street, and you hear a lot of political guys say this too, that the trump administration made this huge -- and not very smart tactical

error in what their first 100-day agenda was going to be. they went after the most difficult, the most contentious issue in american politics right now which everybody knows is not going to be a 100-danish shoe. that's obamacare. instead of going after the low hanging fruit which probably will have an immediate impact on the economy -- >> but they did that for -- >> let me just -- i don't care about the tactical reason. if they would have cut taxes, got rid of regulation where there's broad agreement, then deal with obamacare, you could have dealt with obamacare in the midst of a rising stock market -- neil: we're not there now. >> well, now you're stuck. neil: you might be right. so when you talk to traders and other people, investors in general in the aggregate, do they start seeing this thing stripping away? i mean, it was jamie dimon who earlier in the week ahead of my, you know, interview with the treasury secretary said, look, we admire what you're trying to do and the august deadline ain't happening.

we don't think it's a 2017 development at all, more like 2018, you know, knock on whatever. he might be right. then what's the fallout? >> again, there's still a certain amount of confidence in the marketplace right now, and when we're talking to investors, market participants, they're still talking about, well, things can get better. and we've been waiting for this can get better for quite some time -- neil: and we should stress, the markets are still up even with the selloff -- >> absolutely, and they remain forward looking. what's different in the underlying economy now prior to trump's election? really nothing. growth unrevised at the end of the year leaving us at an anemic 1.6% -- neil: and if they're delayed -- >> really no pathway other than maintaining the current status quo which has left us with lackluster growth for the past several years. >> and the market is way overvalued at current -- >> [inaudible] >> no, no, you talk about -- wait a second -- [inaudible conversations]

>> there's a lot of stuff going on in the economy beyond the markets. >> wait a second -- >> i'm right. you can't argue with those numbers. >> market prices in earnings, what is the p.e. ratio of the -- >> 22. >> 15. and what is it trading at now? 29. neil: whoa, whoa, this is an important distinction -- [inaudible conversations] neil: you're saying that the market is trading at 29 -- >> times earnings. >> i thoughting it was 22. neil: identify not herald 29, i think you made that up. >> the average is 15. it's way overvalued -- neil: but there's a difference between forward and -- >> i know, but if you -- neil: we had some knucklehead here with a different suit -- >> right. neil: -- who said, yeah, it's a little rich but not outlandishly rich. >> that's what they said in 2007. neil: that's where i wanted to pick up. i do hear what you're saying. i'm joking with you, but what do you make of that, that if this market were priced for this thing getting done, let'go

back to the health care thing and that's delayed a little bit. how does the market deal with that? what are you hearing from folks if it's delayed? and, by the way, you know, handling this health care thing right and not rushing a bad solution that could be worse than what you're dealing with might be a good idea anyway, but what do you think of that? >> well, i think the problem is, is that it delays tax reform. i think that's the major thing the broad market is concerned with, is do we get tax reform and how quickly. i have to tell you, to the idea that the markets are overvalued, how long did it take us to go through this last thousand points? 24 trading days d. [inaudible conversations] >> you saying the markets are not overvalued? >> no, no, no, charlie, if you'd listen and stop talking and let me make my point, let me make my point which is actually supporting what you're saying, is the last time that happened was during the dot.com boom and then subsequent crash. so we have seen incredible gains -- neil: let me ask you something, do you think right now that the

markets, if you get the tax cuts, say what you will whether overvalued or not, they're certainly rich. that it will be justified? the tax cuts will spur growth, earnings -- so all of a sudden the math, to charlie's point and to gerri's point looks better. what do you think of that? >> if we see tax reforms in the actual form as proposed on the campaign trail. but getting that version of tax reform is very unlikely. so it may not be -- neil: what do you mean by that? >> we're talking about consolidating seven to three tax brackets, that's very unlikely -- neil: so you don't think the rates will be as low as they're being telegraphed? >> absolutely not. i think that's very, very ambitious. >> corporate tax rate will be. >> i think maybe 20, 25% is a realistic aim. neil: you get to 25%, that's going to -- because they're fully expecting at least 20. >> i think that's going to be very difficult to sell, especially from the fact that, remember, we're still talking about out of control government spending which is number two --

neil: you guys are out of control. [laughter] i want to thank you all very much. we'll have to watch that closely. we could get some of this telegraphed on what these guys are coming to agreement on, the health care thing. but remember, that's obama folks who are now telling the trump folks, see? you're in charge of this, and now you're botching it. we'll have more after this. your insurance company

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neil: all right, if you think we've been seeing a disproportionate number of stories on the trump administration that appear to be slightly negative, you are right. a study just conducted about 88% of them have been deemed negative in the first 30 or so days of the trump administration. so it's fine, and we always say you're fine to cover the negative news be, we do as well, but we'll also point out some of the good stuff going on like the

increased market worth and all these ceos planning to hire more in america and boost their u.s. operations. we feel that, you know, 24 hours on the air, you have time to get into all this stuff. but apparently not everyone is of that mindset. the media center's rich noise has a little more context. it sounds to me, rich, that there's a disproportionate attention to the negative stuff, but overwhelmingly so, right? >> oh, extremely overwhelmingly. i mean, the first 30 days of a presidency is normally when a president gets their best coverage, and this was phenomenally negative. the establishment media, abc, cbs, nbc, are covering trump as if he's some sort of natural disaster as opposed to a new president. the coverage is tremendous. it's twice as intense as it was during the campaign. 54% of all the news was about trump and his administration, and the tone was almost completely negative, 88%.

in campaign it was 91% negative, so i guess that's 3% bump is his honeymoon. neil: you know what i notice in the media world, we're very fixated on how our colleagues think about us and whether they respect us and like us and all that. so away want to do the kind of -- we want to do the kind of things that we think matches that prevailing view x if you buy the fact that 97% of journalists identify themselves as liberals, progressives, if you will, and have no problem seeing critical stories of donald trump and getting, you know, under his skin as sort of a badge of honor, it is not a big mystery that we're seeing this type of coverage, right? >> no. and certainly, donald trump has needled the press more than a few times since he started his campaign, but also since he became president. and i think they react emotionally to that as well. but the kinds of stories we were seeing with president obama's first month in office, there's a lot of human interest stories about his family, about the

wife, the kids, the pet, you know, just positive stuff that isn't really political, but sort of builds up into a popular celebrity. that is nonexistent in the first 30 days of the trump administration. it's all about policy, it's about controversies or invented scandals, and it's just negative, negative, negative. neil: and, by the way, i could see, you know, eight years ago we had the first african-american president, almost everything he did touched, announced, said, joked about was worthy of attention, i'll go that far. what i am saying then is the novelty of a man who had no elected office and is a businessman, that's his only background that he brings to the table and the revolutionary spirit that name with that, again whether you agree or disagree, is worthy at least some of that same cover an i'm not even saying all,ut it's just nonexistent. >> yeah. it's pretty close to nonexistent. and the voters who support him, the voters who, you know, the

media admitted after the election they were out of touch with, you know, this greataway of voters and their -- great wave of voters. now they're sort of doubling down on their same attitude. neil: absolutely. >> they're still disconnected with those voters and missing the story all over again. neil: no, you're right about that. they always call him thin-skinned, but we tend to be a little thin-skinned ourselves and a little self-absorbed. by the way, i know you can't see, but i hope my hair's okay. [laughter] thank you very much, rich, good seeing you again. all right, snap a day after is still snapping, people still buying. so maybe this thing is the real deal, and these guys are still real rich? after this.

neil: all right, snap continuing to soar, follow-up after yesterday, nearly a 50% advance. we continue to pick up on that today. charles payne here on what's going on, and, you know, you

heard all the naysayers and people who said, wait a minute, there's no there there. of course, we always hear about this with internet-related offeringses, but what do you make of this continued robust response? >> you know, it's too early to say that the naysayers are wrong, but this is one of these things where we've got a market that's up near all-time -- at all-time highs, and most of the public has missed out, and a lot of people are say, well, i know this snap thing, and so it's sort of feeding on itself right now. trading at 200 million shares, more than that yesterday. that's the entire float. it's one of these things where if you're not sitting in front of a screen and you can get in and out of these things, i still think it's smart particularly now not to chase it, but i don't think this is whether it's justified. it is what it is right now. neil: you're one of the best stock pickers i know, so when you pick an investment, do you worry about when as a

shareholder you'll have control or a say? >> absolutely. neil: because the rap against this company is, well, they own 90% of the shares, the two founders. and it's like a vise-like grip. >> you have to worry about that because the management may have no ability to have any accountability. and sometimes, particularly in silicon valley, they become enamored with the, with things that are sometimes esoteric rather than the bottom line. neil: yeah, but they want to make money. >> yeah. but if you're worth $10 billion -- neil: all right, all right. >> if you're a billionaire, listen, jeff bezos, he was criticized for not letting money flow to the bottom line, but everything he did, every time he made money, he did plow it back into the business -- neil: still does. >> on the other hand, i think the management of twitter has made a tremendous amount of mistakes, and so it's tough to say, but you do want a voice. you may not always have an equal voice. i've seen structures where

management, their voting stock is worth fe times more than normal, but it's good to have someone who's buying into your company to have some sort of a voice. neil: what do you care if you're going to make money hand over fist? >> well, i don't know that you will if you can't hold management accountable. neil: okay. no, that's a very good point. stepping back from this, the reason why it was considered important and a seminal event of the week is it could be a harbinger of things to come for the future, not only tech offerings, but general offerings. do you buy that? >> absolutely. if you're one of these so-called unicorns, one of these companies with multibillion dollar valuation, not making profits yet because, let's face it, why would a company go public in the first place? it's known as an exit strategy, all right? so you're thinking, whoa, maybe now is a time to jump in. the market's at all-time highs, enthusiasm is up, and people may overlook the fact that we're not making money, and we can't promise them that we ever will.

neil: one other aspect of this, the fact that the two founders control the lion's share of the stock, another thing that they've tried to do to avoid repeats of the facebook debacle, i mean, facebook turned around, is to lock in the number of shares, a quarter of the float, the offering can't be sold for upwards of a year or more. does that sort of stuff work? >> it puts a bottom on the stock. neil: it does. >> two things that put a bottom on this stock in the last 24 hours, the ability, you know, holding back a lot of people from selling, also the revelation that nbc universal bought $500 million worth. to have a big name that, they didn't buy with everyone else, so they had it at $17, b that gave it a little bit of gravitas. hey, if a name like that is in there, maybe there's a shot that this is, quote-unquote, real. neil: thanks, buddy. good to see you. you getting into this on your show tonight? >> with respect to a company called world online gone public

being the sign of a market crash back in the day. it was a dutch online company, they went public, and at the celebration a reporter said to the ceo, how do you feel? she said, it's okay, but i'd already sold all my stock. neil: wow. 6 p.m. eastern time tonight. he gets it, and he gets it really, really well. ask so that's a classic case where you can make money. he's not wedded, for example, as i am, to a prompter. [laughter] like, hello. all right, we've got a lot more coming up here including this fight in washington over what's going to happen to this obamacare peel and replace. you know, i know charles has been on this, i know we've been on this. you know, this market was kind of priced for perfection, still is. now, it might all pan out, but the assumption was that the sessions thing would blow over, maybe it will, the obamacare repeal and replace thing will get fixed, maybe it will. the tax cut thing goes into effect in august as treasury

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neil: all right, welcome back. one of my favorite guests is with me. i do want to talk about the fed governor's comments, they get a little more import ahead of a fed meeting. the vice chair, stanley fisher, on the wires right now saying,

you know, we cld be seeing that andooking awhat could a decisive meeting where they're responding to a clear pick-up in economic activity. that's the view from fischer. we're going to hear from the big cheese, janet yellen, at the of the hour, and she will, we're told, be taking questions here. these guys are very coy on what they say, and it's sort of like reading chicken entrails and tea leaves. but the gist is that they see things going along well enough to hike interest rates again, probably by a quarter point later on this month. we shall see. mean while, democrats are piling on this whole jeff sessions situation over russia and what he knew and when he knew it and whether there were other administration officials who knew it all the way up to president trump. to general jack keane now on how bad this fallout gets. always good to see you, general. we were talking to some market wonks who were saying their selfish fear is that it gets away from an agenda that they like, you know?

tax cuts, lower regulations. and that is their big concern. and one of the reasons why the markets have been hiccupping in the last couple of days. what do you think? >> first of all, it's a huge win for russia. just think about it, i mean, they were able to -- neil: yeah, yeah. >> they were able to penetrate the defends of the democratic national committee quite successfully, could not do it with the republicans -- neil: that's a good point, and they did try. >> and ever since that time, their objective clearly was to undermine the democratic process. and ever since that time there's one story after another at least alleging that the russians have had contact with people in the trump administration. there is absolutely no evidence to suggest there's such a thing, but it's a huge psychological win for russia. neil: and a huge psychological win for the democrats who had a chance to change the narrative right after the president's widely after i claimed -- widely-acclaimed speech before congress and reclaim the offensive. for how long? >> yeah, clearly. that, unfortunately, has

happened. and, you know, terrible in terms of attorney general sessions. i've known him for years, and everybody who knows jeff sessions knows that he's an honorable man. neil: so we played the full long question that he got which puts it into better perspective here, that he thought he was answering a question about operatives and surrogates and all when he left out the fact that he had met with the russian ambassador. but do you think he hurt himself by not following up after that session -- even if his staff reminded him, you know, boss, maybe you should clarify, you did meet with the russian ambassador in your senate office, but just get it out there, the fact that he didn't is fueling this argument he was hiding something. what do you think? >> well, i think that's the mistake that he made. i don't think he really made any mistake in the testimony itself, because it was another question being asked, as you suggest. but particularly given the spotlight that general flynn had and the spotlight on him was as a result of a meeting with that

same russian ambassador, and all that took place just a couple of weeks ago, at that time certainly he should have come forward and said, well, listen, i had a meeting with the russian ambassador as well. it was an innocuous, harmless meeting that we had, kind of routine. yeah, that should have been done. neil: when you look back at this, it's funny, this all got going when remember president obama in his waning weeks in office threw out 35 russian diplomats. everyone was surprised that vladimir putin didn't follow in kind and do the same thing which is typically, i guess, what happens. so people even then started saying, well, wait a minute. now, i could understand that vladimir putin is saying, well, why should i go tit for tat with this guy because he's going to be gone soon, so i'll hold off on doing anything drastic. but people are reading into that nonaction on his part that there was a deal, that there was an understanding and the fact that president, president-elect trump wasn't saying anything critical of him fueled that argument. >> yeah, i think he did.

and every, all the national security team around president trump has spoken very clear-eyed about russian intent and how they're ampling on u.s. interests and those of our allieses, and we have to be willing to confront them and change their behavior. but i do think the president has always believed that he wants to negotiate with putin. and as a result of that, he's restrained himself from ever saying anything negative about him because he doesn't want to harm that negotiating deal before it takes place. neil: but he hasn't told his men and women in his cabinet and sub-cabinet levels to do the same. so they're, you know, mattis has been quite critical, the defense secretary, on a number of questions that have popped up on russia. as well as the cia director. so if you had an administration-wide edict to go soft on the russians, it hasn't been that way. >> oh, it hasn't happened at all. quite the opposite. they're all very clear-eyed, they're all strongly opposed -- neil: do you think the president

is? >> i think he is too. but i do think that it was unnecessary on his part never to say anything negative about the number one thug in the world and how he's been imposing his will on people and what he's done in syria is absolutely horrific, it could be described accurately as a war crime in terms of -- neil: that's what john mccain has said. he's worried this president is setting a dangerous precedent with a guy who's not a nice guy. >> yeah. but i think the policy when it goes forward will have two major thrusts to it. one is to engage putin, and the other one is a willing areness to confront putin -- willingness to confront putin as well and have a credible deterrence against him. i think both of those will go on at the same time, and we'll see if he has any success in negotiations. i suspect not. neil: well, ironically, it was ronald reagan who got detente really going with the russians and mikhail gorbachev, so there's precedent for the tough guy doing the negotiating thing. >> and they both did the same thing, neil, and that is they

did rebuilding the military, something the russians, the chinese, the iranians pay attention to. when you back that up with intent -- neil: yeah. >> -- then you have a credible deterrence. neil: mean what you say, say what y mea general, good seeing you. thank you for your wonderful service for this country. you do not mess with the general. i usually hold back on the tough questions when he's physically here. i can't wait until he's on remote, then i'll just blast him. no. all right, we're getting a lot more on this obamacare thing, repeal, replace. you've heard that a million times. whether you have this health care package or not, it will matter to you how this goes because your tax cut that you've been looking forward to could depend on it. i'm telling you, that's kind of on life support right now. i'll explain. ♪ ♪ the future of business in new york state is already in motion. companies across the state are growing the economy, with the help of the lowest taxes in decades, a talented workforce,

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neil: i got a great e-mail from this woman, susan, who leapts me know. you know, neil, the tax cut is

still going to happen, quit raining on this parade you trump hater. p.s., i feel so bad that you survived your heart operation last summer. [laughter] that hurts my feelings. [laughter] all right. we've got the chamber of commerce, energy president here, says that this border tax stuff and l other stuff that comes in the way of getting the health care thing through, getting e -- you know, all this lineup of events that has to happen biased on a lot of these -- based on a lot of these other things happening including that border tax because, presumably, it's going to pay for a lot of the things the president wants to do, but a lot of different opinions on that. karen, very good to have you. where does this stand right now? i don't see, and i might be wrong, the appetite is there or the votes are there. but maybe i'm missing something. >> sure. neil: where do you see this going, and how does the chamber feel about it? >> sure. well, you know, the oil and -- it's great to be with you. the oil and gas industry and the

utility industry have some of the highest corporate effective tax rates in the country, so they are full-throated supporters of corporate tax reform and bring down their rates so they can be more competitive. and in exchange for that, the border adjustment tax -- just like the broader business community -- some fare better than others. if you're a producer of domestic oil and gas and you don't import much to help you do that, you fare better than maybe, say, a refiner who wouldn't fare as well. so it's complex, it's different. they're analyzing, you know, their exposure. but the other component of this is canada, right? we still import a lot of oil and electricity from canada. and those products would likely become a little more expensive here. so there's a consumer aspect to this too. neil: all right. and certainly the nation's retailers know that who have also been complaining about this, that their customers are going to pay for this. they're not going to be happy ant this, and it's going to hurt them and their bottom line. leaving that aside though, let's

start handicapping how likely it is. i don't see the votes there, but i could be missing something. what are you seeing? >> well, i think from the business community and the voters, everybody knows that we need to do something about taxes. we're uncompetitive around the world. neil: right. >> what do we need to trade for that. and if we go this route and it grows the economy and the dollar is stronger and everybody buys more and imports are cheaper, that's great. then we've scored a home run. but what everybody's looking at is what if that doesn't all line up that way, and the economy doesn't grow, and the dollar doesn't remain strong, and currencies around the world change a little bit. it's really hard to figure out exactly what's going happen company by company, but even within industries they differ. on the vote side of things, you know, everybody wants to be able to be seen as bringing down taxes. it's what you trade for, that's what makes it complicated. neil: one final argument on this, i'd just be curious what you think, is net-net taxes go down to the degree we're told they're likely to go down, a top rate from, you know, 40% or so

down to 33%, corporate taxes virtually cut in half to 20%. you do that, then even the worst retailer, the worst importer will be okay with that, because they'll come out way ahead. do you buy that? >> well, that's the theory, and that's one of the problems with this, we're operating on a lot of theories and assumptions. what happens if we have china humming again, or what happens if there's economic collapse in another part of the world? neil: right, right. >> it is a risky bet, but we've got to do something, and at least we've got a blueprint on the table to start debate. it's not going to be easy. it took ronald reagan a long time, it's going to take president trump a long time, but at least all the players are talking about how we have to do this if we want to compete effectively. neil: all right. thank you very, very much. appreciate it. >> good to see you. neil: again, for those of you who want to say you're being a crepe hanger, we played the same role here, the contrarian role looking at the pros and cons because we have time to cover both in the middle of the internet boom with, and we pointed out the importance of

companies that earn money to justify stock prices that were eye-popping. so we always put that in some context for you because you would certainly come back after us if we were cheerleadinwith no base in reality. so that's where i stand. so to you critics out there -- [laughter] more after this.

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neil: all right. remember when president trump said he wanted to reopen the whole pipeline thing? he also had a little added feature that he sort of penciled into that deal where it would be u.s. steel going into the pipeline itself. in other words, it would be u.s. steel as part of the pipeline makeup, the pipe itself. well, that apparently is proving a lot easier said than done. there are nuances to this that not even the most powerful man

in the free world can change. adam shapiro with the details. hey, adam. >> reporter: nuance is a fancy way of saying washington, d.c. bureaucracy. this is the memorandum president trump signed january 24th requiring american-made products like steel be used in all new pipelines as well as projects to retrofit, repair and expand pipelines in the united states. the ceo of united states steel says his company and other steel the steel necessary for those pipes even though most of it is currently produced overseas. scott paul, a spokesman for the american iron and steel institute, says the president's directive will create jobs for american steel workers. >> i know that there are american steel workers who would be eager or to be called back into the mill, and there are american steel makers who are eager or to rev up capacity to build our energy infrastructure and our water infrastructure.

>> reporter: but here's where it gets complicated. president trump has ordered the commerce department to develop a plan by july to implement his american-made directive. but cato institute trade policy analyst simon lester says the president may have no legal authority to order this amic-made directive on private biness. >> what we're talking about here is a government requirement to use domestic content, and that is pretty clearly in violence of our international trade commitments, and the u.s. has brought complaints against other companies for doing similar things. >> reporter: transcanada, which everybody remembers, is building the xl keystone pipeline, they said five years ago 50% of the pipe it plans to use would be made in the united states. so there was already plans to use american-made products, now it would have to be 100% if the commerce department, neil, comes up with a plan to do this. but remember, this memorandum, there's an out for the administration and the government to the full extent of the law. if the law doesn't let you

violate trade agreements and do it, then they can't do it. neil: holy moses. all right, thank you very much. speaking of which, the president is landing in orlando, he's going to head off to a catholic school in orlando. and we'll explain exactly what he's up to after this.

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neil: all right, janet yellen is breaking news right here. the fed chair indicating it is looking increasingly likely if there is going to be a move on interest rates, it will be sooner rather than later and it is looking increasingly likely. peter barnes with the latest on what he is hearing. hey, peter. reporter: that's right, neil. in remarks they just released she is teeing up a rate hike at the fed's next policy meeting in two weeks. she says in a speech in chicago just about to get started, quote, we currently judge it will be appropriate to gradually increase the federal funds rate

if the economic data come in about as we expect. indeed at our meeting later this month thed if will evaluate whether employment and inflation will evolve in line with our expectations. in which case a further adjustment of the federal funds rate would likely be appropriate. she goes on to say that inflation and labor market are evolving as expected. the fet is essentially met its labor market mandate she says in the speech and expects to hit its 2% inflation target. as you know the fed in the most recent economic projections penciled in three quarter point rate hikes this year. as an exclamation point the fed keeps an eye on risks. scaling back some of our support could potentially require us to rates rapidly sometime the road which could be disruptive to the economist. neil. neil: if can can stay there, peter. not surprisingly you come on, you move markets.

lori rothman at new york stock exchange with some of that investor reaction to what janet yellen is poised to say. lori, what are you seeing? >> hi, there, neil. so basically what the interpretation here is that higher rates mean the economy is in good shape. sorry about that. i have a little audio issue here. the market is not moving a whole lot today. what is key with the dow, it has come down below the key 21 you thousand level. yes i do hear you. i'm hearing my echo back a little bit. if that was you coming back in a little bit. if i have a second, i want to point out the 10-year treasury note. it has come up a little bit here. we're looking two points, 2 1/2%, 2.51 at last check. interest rates are rising. no surprise to anybody down here on floor of new york stock exchange. stunning debut of snap.

really all systems go here. the economic data is supportive. you have trump policy as well, which folks down here are very excited about. who is not thrilled about tax cuts. that is fantastic, right. the market not moving a whole lot, a little bit lower but the overwhelming sentiment is positive. the strength is there, and run-up in markets is warraed since the election. neil: i apologize for some of these audio issues. go back to peter for a second. janet yellen that federal reserve is likely poised to race interest rates this month. that would be earlier than expected barring some any economic jolts or surprises but you know the markets that used to worry about that in the past, peter. now they see it as reflection of at least strong or stronger economy. so what used to be a half empty glass at least of late is more deemed a half full glass.

now of course markets could do anything in the next three hours. what you do you make of that, how it has pivoted, the markets pivoted on issue of higher rates? reporter: as you know janet yellen has been dovish with some of her colleagues how they unwind stimulus from the financial crisis. raise rates gradually and tell us how to do so without risking tanking the financial markets and pushing the economy back into recession with a real sharp rise to try to fix emerging inflation or higher than expected inflation but this rate hike for march has been highly telegraphed this week. we heard from several fed bank presidents. neil: indeed. >> and bill dudley of the new york fed, who is vice-chair of the fed policy committee. so she has come in here, batting cleanup for everybody. they have all been talking about this and by the way, the issue of stimulus from the trump administration, she doesn't specifically talk about that but

she does tk about fial and regulatory policies, that are the responsibility of the administration in congress best-suited to address some of the structural props in the economy like, like low productivity. so she does acknowledge the fiscal, fiscal stimulus may be coming without specifically mentioning the trump administration. neil: all right. thank you, buddy. peter barnes, as you can see. the dow turned positive, back over 21,000, i'm not saying exclusively on this. as peter indicated this is well-telegraphed. do not blame fed officials for not warning you but all but saying rates are going to go up and probably this month. widely factored in. the surprise would be they don't move. president trump just landing in orlando, florida, right now. he is on his way to catholic school in orlando, looking to alternative to public schools. not just charter schools. blake burman on what team trump's approach will be. blake? reporter: the president expected

to arrive in orlando any moment now. they're trying to tout school choice on this day, that is the theme in florida. you might remember at a joint address to congress the other night, the president called education, quotes the civil rights issue of our time. he called for education measures that would allow disadvantaged youth as he put it for school choice. whether there is public schools, right schools or charter schools. he will take that message to orlando on this day. all of this, though, or at least some of it, appears under the cloud of what is going on with jeff sessions and department of justice and russia. the timeline of this neil, was very clearly laid out here by the white house. the president giving this speech on tuesday. they expected a warm reception and got it and tried to bask in the glow on wednesda there was yesterday aboard the aircraft carriith military members. today the theme was supposed to be education. but questions continue to surround jeff sessions as he

recused himself at the doj from any potential investigations. this morning the white house or top democrat on the hill, rather, nancy pelosi jumped back into the fray, recusal from sessions just isn't good enough. listen. >> recuse himself, he knows what's there and it is just reflection of weak moral authority of this administration if they support what he is doing. that is why we called for -- this recusal is an admission that something went wrong, but it is not sufficient. reporter: by the way, neil, this is clearly on the mind of the president. it appears he was tweeting aboard air force one. this was just pushed out moments ago from the president's twitter account. shows a picture of vladmir putin and chuck schumer buddy, buddy smiling together. here is what he writes. quote, we should start an immediate investigation into senator schummer and his ties to russia and putin.

a total hypocrite. end quote. even as he is going to this education meeting, a tweet from the president on putin and russia. neil? neil: that he you, very, very much. left side of the screen, and i was getting worried there were no stairs when they opened up the front door. i said oh, boy, this could be a problem. they brought up the stairs. they're locking them in place. the president on orlando. on the flight had senator marco rubio with him. he is on board air force one, and will join the president on this school tour, this catholic elementary school, along with governor rk scott yosaat the bottom of the staircase there. i don't know whether it is his child or grandchild but he is there. education secretary betsy devos, we do know she is joining the president on this trip. this is not a charter school per se, but alternative to public schools in the area. catholic grade school. some say it goes up to middle school. i don't know for sure. the fallout from all of this at

a time when the administration wants to focus on what it is trying to do on education. focus on repealing and replacing obamacare and of course on those tax cuts. the president arriving in florida. he will wrap things up tonight, going to his mar-a-lago, his summers state. we have special assistant for bush economic policy and brian riordan, and independent women's forum, sabrina schaefer. the president wants to reclaim the agenda. we know how the week started. good reception he got to his speech before congress and jeff sessions recusal and all the talk. you how is this ending, in your eyes? how do you see it wrapping up? >> i think this is going to be sort of good all around. we always want the media to investigate more. i was bothered by the last eight years when the media just sort of ignored all sorts of private meetings and conversations the obama administration had.

i think sort of big picture this is a good thing, that we're a little bit more, we're taking some of this a little bit more seriously. but i do think this administrations going to learn, like every administration before them manage attention between things going on sort of negative in the media an things going on and that they want to push forward positive. educational freedom is a great thing lots of conservatives can get behind. we're talking about repealing and replacing obamacare. that is good news for the administration. they have plenty of things to focus on. in the end this is sort of good for the country. neil: you know, brian riordan, when you look at this, i don't know how much you saw with bush 43 and all, everything goes in waves. you have a series of good press days, a series of bad press days. we have a study that shows this president gets a disproportionate number bad press days, gleaned by media

research instituted some of these other to have not been friendly to him. now always eye of beholder, many say this was a lot of president's own doing picking fights with the press but how does he get his message out and is there concern among republicans you talk to he has to work a lot harder to do that? >> yeah. i don't think trump has ever had a problem getting his message out. this is nothing more than an extension what you saw during the campaign. so you know i've been focused on tax cuts and making sure we move the brady plan, the house blueprint through the congress. my expectation he will focus on that and health care and other things on his plate at the same time they deal with this. neil: andrew feldman, democrats like to point out when it comes to health care thing, that republicans are realizing how easy it is to criticize and very difficult to come up with a solution or fix yourself, and

there does seem to be indication certainly conservative republicans are balking at what house and senate leadership wants to do. how bad do you think this gets? or is it just, you know, tempest in a teapot? >> neil, good to be with you. it is very bad. look, we're just hearing big platitudes, big statements from trump and members of congress but we have no real plans, right? first of all the health care plan, trump said other day it was more complicated than he could think of. obviously it is complicated. obviously this is difficult. this is something we've been dealing with since richard nixon was president. if it was so simple we would have a real answer a long time ago. this will be very complicated because you know what? 20 million new people have headlight care under obama care, reality is that trump's math doesn't add up, right? you can't keep people on their health care who have preexisting conditions. people who are 26 and -- neil: math doesn't add up, right right?

>> no. neil: most people are happy 20 million people getting -- >> the math doesn't add up. neil: it is not sustainable whether it is going whether you buy a republican fix or not. you would acknowledge that. >> i would acknowledge absolutely there are things, i think neil, things couldn't be fixed with obamacare. that is what i would do. i would work on fixing existing system. the plan that we have now, i don't think they have a way to pay for it, right? how can you keep everyone on they want to be covered an pay for it, without adding millions and trillions to the debt? look at budget plan. that is dead on arrival coming to congress. >> in washington, we have a bottom line, it is called elections. republicans understand if they mess this up, and it is very complicated. probably shouldn't have to be so complicated. it's a commodity health care. i don't know why it is so complicated. if they ss thiup then 2018 will not to the way they want. republicans have to work very hard -- neil: i don't think they should have gone first with this. it is so complicated, such

herculean task getting everybody on same page. they seem to be in agreement on tax cut can thing. there is more agreement. >> i'm for that. neil: brian what do you make of that, if they had druthers, do-over, what mulligan, what they call it in golf, would they do it over again? health care and tax bill are really big lifts. trying to transform how people get insurance. trying to transform our tax code one of the worst in the world to one of the best. either one will be declared five or six times before it ends up on president's desk before it signed into law. that is what happens with big reforms. you're seeing that taking place now. i'm confident they will get the health care thing done. they have to. exchanges are dying. you can't get insurance on exchanges at affordable rate anymore. they will have to do that and do something about the tax cuts. neil: we shall see. i don't want -- >> will have to work with democrats, neil. neil: there will have be a lot of group hugging here.

that he, very, very much. we'll watch how it goes. president is in orlando, on his way to this catholic school, st. andrews catholic cool school how school outside of the system gets pretty dramatic testing results. all that after this. what if tecy gave us the power to turn this enemy into an ally? microsoft and its partners are using smart traps to capture mosquitoes and sequence their dna to fight disease. there are over 100 million pieces of dna in every sample. with the microsoft cloud, we can analyze the data faster than ever before. if we can detect new viruses before they spread, we may someday prevent outbreaks before they begin.

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>> i would even have democrat put forward a replacement. give them a vote and conservatives. neil: not everyone agrees on replacement. >> that is what would happen. you figure that out through voting. big government people, republicans and democrats, they want new entitlement program. they want medicaid expansion and want somehow to have federal money pay for all this. les vote on that. neil: all right.

this is a big dividing point among the republican party. not much wiggle room. two votes in the senate and 22 in house. this is why it's a big deal. three are not keen. mike lee of utah, ted cruz of texas and aforementioned rand paul. not eon their plan, obamacare light. heavy on big government role. tax credits are paid for by taxing insurance plans people have at work or where else. and they don't think it is a starter here. so it is a waste of time. they're not going to buy it. the reason why this is developing into a big deal and something i want to pick on with my next guest, it would delay everything else like the tax cuts that already might be in jeopardy for that august deadline that the treasury secretary was telling me was the ultimate goal. to the daily caller editor-in-chief on this battle. because it really comes back how

much government you want. the argument against obamacare, it is big government at its worst and rand paul and some of these others are saying, we don't want something not as big. that is not what we should be striving for. that's what they say is going on here. what do you make of this? >> yeah, i think ultimately the people who voted for republicans on the basis of the fact that they wanted to see obamacare repealed and replaced were definitely much more in rand paul's camp. they don't want light touches done around the edges, things that increase the amount of government spending on health care. they want to withdraw the government from the health care process. allow the private market to flourish and figure out ways to bring costs down. to this point doesn't seem a lot has been made in terms of progress on the obamacare bill, few leaked details we have. i think rand paul is making a smart bill. don't let the bill come out. got out way ahead, force

republicans consistently best serve constituent, how do we repeal and replace obamacare which has given republicans so much energy since 2010. neil: vince, what is the thing that ticks them off? i couldn't get a straight answer out of rand paul. maybe i wasn't hearing clearly. the house has this measure, obamacare light, whatever you want to call it, goes over to the senate and want republican there is, yea or nay on it. and don't start adding things or taking away things and that is a problem for them they'rjust saying nono you can't just ram it down our throats, right? >> it would take tick any senator off you have to accept what the house tells you. senators think highly of position in the house. neil: they have must known that to begin with. with speaker ryan go this route again, it failed before, why would he do it again? >> well i, we'll see. in the end, how it comes out. i don't, i don't see how you can do this without the consent of

the senate. as you noted, it just takes two senators, now three to express some real distaste with this any chance they have of sending this bill to the white house is damaged. they need -- neil: who at the white house has support? it would seem pence, the vice president is with speaker ryan today and obviously the health and human services secretary today. their fortunes are lying with the house leadership here by extension, party leadership, when the house freedom caucus and some of these others aren't keen. so, am i imagining that these are fractured ranks or how would you explain it? >> i don't think you're imagining it. i think there is a real debate going on within the republican party. think back to the president's speech this week. he put a punctuation mark on the fact they were going to repeal and replace obamacare can. i think a lot of people who are fans of donald trump, also want to he see it repealed and replaced, believe it sincerely

when he says that full repeal and full replacement. one which looks adequate to conservative supporters. the tension does exist. people within the white house who disagree what the path ahead looks like. neil: we'll watch closely, my friend. that he very much. have a good weekend. >> you too. neil: we're waiting for president trump. he will visit this orlando catholic school. people say what does this have to do with vouchers and everything? the president is saying classic example of those who might not like the public school in their area in orlando, there are alternatives. get a voucher. st. andrews catholic school is held in high regard, very good scores. president's pitch and betsy he devos, you have choices. if you want to send your kids outside the public school system and where you get a little bit more bang for the buck, be it catholic school, private institution, let that be your call, and not the government's call. so it seems pretty straightforward but it is, well

anything but straightforward. connell mcshane on that after this.

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♪ neil: all right, the president is going to be pitching school vouchers, school choice in orlando, florida. has very good public school system i'm told. he wants to leave it up to orlando residents and those in the area to pick and choose what they want and what they think makes sense for them. connell mcexplain with the details on that and what will be happening in half an hour, i guess. reporter: we'll see, neil, how much we hear from the president. it is supposed to be a listening event. it brings up a broader argument over school choice, in essence is a tax argument. it could work into the whole tax reform argument we're talking about. president arriving a short time ago in orlando.

he will face opposition, this school choice question always does, when it comes up. you get those who argue when pushing private schools you're doing so at the expense of public schools, drawing resources away from them. teachers unions and others argued it. when you look at this particular school though, the president will argue, what is done there, at st. andrew, where the tuition is over $6,000 a year needs to be done on larger basis nationwide. that number would put it out of reach for some parents you think. what they have done there effectively, they provide their student with financial aid. there are 350 total students at the school. out of that number, 350, 300 receive financial assistance through tax credits, state of florida scholarships. the argument you scale that up from betsy devos and the president. they say children trapped, language they use in failing public schools, help them giving opportunity to go to a school like this. he talked about it even in the

joint session speech using an example of a young woman given an opportunity to have a scholarship and doing much better as a result. but neil, i don't know if the president will couch it this way today, going forward look for this to be part of a broad are question about tax reform. you achieve school choice, tax credit program. president's mentioned a $20 billion number in the past, not recently, but in the past. maybe that is part of the overall tax reform discussion and argument that we see going forward from here. that starts today in some way. neil: this is not of the top tier things president wants to do, obviously health care repeal and replace, boost military spending and obviously the tax cuts but really what he wants to do as far as more cost effective education and department and one necessarily isn't in the hip pocket as you said and president said at outset of education union, teachers union, all that, how is that part going for him? reporter: they're powerful. they have always been politically power you'll if.

it will be difficult an you're getting it done now is time to do it. republican control of congress allows you to get control of conversation over issues because you never have in the past because units have so much power in the democratic power. it will be difficult. people have broad discussions. this is what both sides said education reform, some cases case-by-case, you say this one in orlando, boy, they had have terrific results. another private school with this type of funding or charter school may not have the same results and then people will argue that the public schools need more funding. others say we have been doing that for years and hasn't been working. it is like health care and complicated. president said that, boy, this is complicated. neil: what was i thinking? connell mcshane, thank you very much, my friend. >> all right. neil: if you have a age demographic, millenials, baby boomers, gen-xers, what group

wants the tax cuts and big ones the most? what if i told you baby boomers, told you right now, if they don't get it, they will not just be bitter, really, really start bitching? we have classic cases to prove the point after this because the "bitter boomers" are back. kids, cover your ears.

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neil: all right. we've been keeping track of janet yellen. she is speaking in chicago right now.

i will cut to the gist of her remarks we got them ahead of time, she wants to raise interest rates. that is very clear and she wants to do it sooner rather than later which would be in a meeting i think a couple weeks. so that is a given. the markets are not panicking on that. these days rate hikes are not being greeted typically with the selloff you would expect the way you had in the past. maybe a reflection of a good underlying economy, who knows. a lot of people are surprised at this. our "bitter boomers" are not because they're boomer and they're not always bitter but they're always right. charlie gasparino is here. we've got steve leeb here. lizzie "wicked" macdonald and fox business senior editor charlie brady. talk about the geniuses? lizzie, this notion that she says it's coming. it is coming, quarter point, didn't say exact quaer point, but everyone interpreted twweeks, rates go up.

liz: market is not reacting. four rate hikes last year. people on wall street are thinking, it is coming, a quarter point, gradual quarter point increases of the right now you're right. in the past the markets would have sold off with a rocky ride of it. there is widespread confidence growing in the economy. whereas under the obama economy it felt shaky. right you now people may be able to take it in stride. neil: what do you think, bud? >> rates going up for the right reason. jobless growth accelerating. jobs numbers was highest in 44 years. jobs number comes out before the fed meeting. neil: you live for those days. you really do. >> depends next week that will seal the deal for rate hike if it's a strong number. neil: what happens if we get a rate hike. >> nothing happens. we're still at in interest rates. neil: real interest rates. >> one of the most bogus things out of washington, i mean it is not bogus, that the fed pays

attention to one inflation indicator which they call pce, which is lower than any other indicator. >> 1.7%. neil: sure. >> cleveland fed -- >> should have a couple beers and talk about the pce. >> right. there is no reason to pick the pce other than the fact -- neil: you did. >> i know, but the fed does. that is what they base it. they're trying to get inflation -- neil: is a rate hike justifiable to you. >> more than justify. what are they waiting for? >> this is my one worry. on twitter they call me a worrywart. neil: they call you a lot worse than that. >> and bitter boomer. >> there to be coordination between monetary policy and fiscal policy, you talk to investors they worry about yellen jumping the gun on raising rates before trump has fully digested -- neil: maybe she wants to do that. >> that's a great point f she

does that, the markets could slow the economy before even gets his tax cuts through. that is where the lack of coordination could screw things up. if you know, leeb, you're big on this, is the market overvalued or not right now? >> i think it is crazy. it is very ouch overvalued. >> so if the market is overvalued now, and you start raising rates without the concomitant fiscal policy response, what could happen? >> you could have a bad market very, very quickly. market could easily come down 25%. but that wouldn't be necessarily e end of the world from the economy's point of view. neil: a lot hinges on rates go up but if you get other stimulus from tax cuts. i raised this with treasury secretary steve mnuchin, this idea about tax cuts and where they go from here and pay for this, mortgage deductions, charitable deduction, they won't be touched anyway, this is what he said on this matter. take a look.

if you take away those deductions it is still a big tax cut for the upper income. are there other things you would do or phase out to compensate for that? >> let me first clarify. we are not taking away the charitable deduction and we are leaving the mortgage interest deduct as is. neil: for upper income as well? >> absolutely. we think those are both very, very important. neil: steve leeb's reaction to that was, yippee. >> no. >> whenever i see that guy's face, it just, it is scary. >> it's a little scary. but there are even scarier guys. neil: thank you for noting that. >> there is the sebastian gorka. he is a scary guy. neil: i want to get to what he is saying, he really touched on the wealthy, the top 1% they're not getting this tax break they're envisioning. they will offset whatever bennies getting with the lower rate, limiting allowances,

breaks, deductions and all. clearly among them was not the mortgage interest deduction or charitable deduction. so i don't know what else you would do to offset that, but what do you make of that? >> you know, that has been the running fight over how do you pay for it. because if they put it in budget reconciliation you have to have revenue offsets, right? to get the 51-vote threshold to avoid democrat filibuster. that is the name of the game. neil: than use die many ma i can accounting. >> that is strategy, get tax reform, you want 51 votes in the senate. if you don't touch mortgage interest. don't touch the charitable, what do you go after? neil: i don't know. i didn't get a straight answer. >> he wants to boost military spending. one trillion dollars infrastructure project, wants to slash taxes yet the mortgage deduction will stay intact. i think up to a million dollars. neil: wherever it is right now. >> it has to be paid for somehow. something will have to get cut

and that will be a battle royale. >> it will, but i don't know exactly how they do all this figuring, if they're going forward, one word, one line i remember from the trump speech before congress which really struck -- made me feel okay about the guy. >> it wasn't china? >> it wasn't china. china is a major problem. that is probably why he is going after russia, to insinuate himself in that situation. everybody is saying why don't people give him a little possible credit? why does everyone have to say he is somehow involved -- neil: i think, charlie gasparino, it will be a news alert to upper income folks if they don't get a tax cut. >> listen, you're absolutely right. your earlier segment, economist, her name escapes me, a lot of people are pricing a cut of corporate tax down to 25%, not 20, not 15. that is a real problem. i will say this, neil. you brought this up a bunch of times, about the timing. if you talk to people on the

hill, they don't believe, this is republican staffers, don't believe we're getting tax reform this year. this is republican staffers. they don't even know where the budget is. he doesn't have a budget. >> neil, i'm sorry, because he interrupted me. neil: he did, didn't he. >> he got me talking about china. one word i remember, one phrase i remember, big fat tax cut for the middle class. i heard not saying that except obama with throwaway line. republican saying that. first one i heard say that he can't take away mortgage deductions and charity. neil: you got to figure out what he is going to do. >> he has to play the republican line, neil. if he wants to give the middle class a tax cut -- >> talk about pce an china at the bar. neil: please. >> he told me china. neil: yeah he did. he started it. these guys are very hip boomers here.

so they are all over snap. and given the fact that the stock continues to run up today, are they looking at this thing? do they wear the silly spectacles? whatever they call them. a lot more on this with our aging, but aging just right about iter boomers. -- "bitter boomers." azing tradi that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade.

neil: following upon yesterday's gains with another 10% run up today. lizzie, do you know what this whole phenomenon is all about? >> kids who are on it, right? neil: yeah. >> 50% user growth even though it is coming down. they're basically selling you on growth, right? their users will continue to grow. at the rate they're going, to justify that valuation, analysts say they need to grow 40 to 50% a year. i'm not sure they can pull that off. >> yeah, i agree. listen i know a lot of millenials in journalism, friend

of mine, lynnette lopez works at business insider and what is her name, julia la roche at yahoo! they are hardcore millenials. don't speak in complete sentences. don't read anything more than five lines. they use the words, you know a lot. here is the problem. they're not on snap. if they're not on snap -- neil: lizzie hit on it. it is teenagers, right? they rely on their parents. >> vanishing message. >> i think the second age group up is the most popular on facebook. snapchat -- neil: facebook is, that is the lawrence welk crowd, right? >> getting to be the lawrence welk crowd, yes. neil: what do you think? >> the thing about snapchat, there is no earnings and liz just mentioned growth. but their growth -- neil: wouldn't be the first internet company to have that conundrum. >> this is bubble.com part two. like late '90s. neil: you think so?

they were saying that about facebook and it righted itself. >> facebook was profitable this company lost half a billion dollars last quarter. >> facebook, how many twitters and zyngas whatever the hell they're called, wall street goes out there, this is the problem i think, they price them so high, these companies should essentially bght out someone else and americanned. >> that is what facebook tried to do. >> facebook doesn't have to do it right now. these other companies. neil: facebook didn't hold a lot of says away from the public. >> think about this, neil. twitter went public at 26, right? they can't do a deal for anything probably more than 13. it is hard to justify doing a take-under like that right now. that is the problem. they should be profitable. neil: why is doing better on the second day? >> it's a facebook phenomenon. >> because nbc universal plowed, invested in the stock. it has been losing money every year for five years in

existence. cash burner. neil: maybe something smart by keeping -- can't sell it for a year? >> that's true. neil: that was smart. >> they created demand through scarcity. think about what it is good for? taking naked pictures having them disappear. that is what college kids or millenials. neil: how do you know they were naked pictures. >> i tell you i know a little about the company. it was good for insider traders sending stuff. >> some say the stuff is still up in the cloud, right? neil: i agree with that. >> you know where this will sell? china. >> no. >> yes. >> it will not. >> because the government is always up your rear end they, this stuff -- >> china it was outlawed. >> this country we are below average in terms of writing and math and science skills. china is -- neil: they have to be impressed by this sign me up for that job. >> everybody is beating us. we've got to get the message.

this is not what we need, another something you have to look at 20 times a day to make sure you didn't miss a naked woman someone emailed you. >> god forbid you miss a naked woman. >> heaven forbid. >> she will vanish. >> the other thing that troubles me, speak as investor, two things, one is it is all advertising. how much room is there? you have google. you have facebook. those are all just advertising platforms that are competing. >> facebook is taking on netflix, half hour programing. weekly series. original content. >> facebook is a good experience. i don't feel like i'm trolled. i feel i can read stuff and interact with people. this is so -- neil: when you talk so kindly to your fans and those who aren't fans what are you using? >> usually twitter because -- neil: twitter, right? >> it is abbreviateds right.

40 characters and i can easily say in 40 characters -- neil: you can fill it with curse words. >> in three characters i get across gfy. everybody knows. neil: where will snap be? >> for snap, i think they may be bought by someone. won't be valued at this price for sure. neil: didn't pass up the guy with the $3 billion offer? >> from zuckerberg. neil: now double that. >> the guy that is running snapchat, he passed out boards to all the people, read this. neil: i knew you fet the china thing. >> before he got me i got it. neil: thank you, very much and a lot more on vice president pence and what he is up to right now. signs that the administration is aligning with speaker ryan on the health care thing. depending on your point of view that could be a good thing or bad thing. why some are very worried about this thing after this.

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go long™. ♪ neil: you know on days like this you wonder why twitter isn't more of a financial success, or leverage off this. not only president uses it and seizes on a famous picture with chuck schumer with vladmir putin in 2003. chuck schumer, would be happy to talk about my contact with putin and associates. took place in '03. in full view and press in public under oath. would you and your team. synching what happened. this development going on, seems to be tipping hand where administration alliances lie with health care battle. not so much with conservatives like rand paul.

this leadership deal is dead on arrival. government light with obamace monstrosity alreadbig government. hardly a bragging point for the leadership to say this is not as big. so the fact that you're seeing vice president pence with speaker ryan and tom price of course, health and human services secretary is clear sign yet that the administration seems to tip its hand more toward the leadership. and of course janet yellen, signaling a rate hike and that it could come at that march policy meeting, i believe in couple weeks. stocks are dealing with this nicely. so this is, the fear that it used to be. markets have a funny way of showing it. they're ready for that apparently reflects economy is good you have in to warrantu that, after this. what are you supposed to do? drive three-quarters of a car? now if you had liberty mutual new car replacement™, you'd get your whole car back. ee

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. trish: all right. the president in orlando going to a school right now, those kids going to this school, it's a

pricey school, a little over 6,000 dollars a year, but give parents a chance if they think they can do better, go ahead and let them decide. auto easier said than done but the president making that punish. trish regan will be there. but a busy agenda for him. trish: another busy day, indeed. all right. thanks, neil. breaking this hour, everyone. president trump is in florida right now touring a catholic school all in an effort to promote school choice. and in a few minutes, he's going to be participating in a listening session with some teachers and parents. i'm trish regan. welcome, everyone, to the intelligence report. now, as we await the president, we are following another big story today and that is of course attorney general jeff sessions who is reaccusing himself from the russia probe. sessions admits he met with the russian ambassador on two occasions, which, you know, isn't actually that odd, since he was a senior member of the arms services committee. and he insisted that these meetings had nothing to do with the campaign the democrats are telling a different story but listen to