dobbs, he is next right here on fox business network. stay with us. melissa: good evening, i am melissa francis in for lou dobbs, a war breaking out in the west wing among two of president's to top advisers, scaramucci lashing out at reince priebus. accusing him of leaking and standing in the way of the president's agenda. things are so bad between those two that scaramucci reportedly unloaded on priebus. with a new yorker writer, saying they will all be fired by me.

i fired one the other day. reince priebus, if you want to leak something -- you will be asked to resign very shortly -- and it done stop there, scaramucci went after steve bannon reportedly saying: this is graphic -- it got more colorful after that. kevin corke has been following the palace intrigue, he has our report. reporter: it is not novel to talk about palace intrigue with covering a new administration, i have covered a few, this is not new stuff. but who is unusual is the frequency with which we talk about it real problem is, it knocked white house off message, at the time when trump administration is doing all it can to do a better job

of promoting its agenda. >> they are american heroes, we salute them. reporter: as president today celebrated bravery and loyalty to duty of law enforcement officers who helped stop gunman who shot congress managing steve scalise and others last month, it was his loyalty that was being called into question. >> i think i have addressed this question, when it comes to staffing and personnel many times, that if the president doesn't, then he will make that decision. we all serve at the pleasure of the president, if he gets to a place that is not the case, he will let you know. reporter: reince priebus is under fire, after being accused by new white house communication director anthony scaramucci of leaking his financial disclosure information to politico. scaramucci writing in a now deleted tweet --

>> later scaramucci denied he was singling out reince priebus, tweeting wrong. >> if reince wants to explain he is not a leaker, let him do that, i am a straight shooter. >> he is making clear these documents are procure able, that someone does not want him here. and somebody is trying to get in his way, and scare him off from working here. which is a huge mistake. reporter: politico denies that form was leaked citing public records availability. if reince priebus is on thin ice he would join attorney general jeff sessions, in a conversation with fox news, sessions said that steady barrage of twitter take downs have not gone unnoticed.

>> it kind of hurtful but the president of the united states is a strong leader. he is determined to move this country in the direction he believes it needs to go to make us great again. and he is had a lot of criticism, and he steadfastly determined to get his job done. he wants all of us to to our job, that is what i intend to do. reporter: president's tweets yesterday, stating that transgender service perso personnel would no longer be allowed to serve in military caught some by surprise. there will be n no mod modification to cur cure current policy. army chief of staff learned about the president's decision through the media. >> we'll work through the implementation guidance when we get it. then we'll move from there.

reporter: h.r. mcmaster, actually called secretary defense jim mattis who happened to be on hav vacation at the time that president rolled out that policy by way of social media and was none too pleased about it. and ash carter also disagrees with new white house policy, we'll have more conversation about that to come. >> we'll talk about all of this, thank you, kevin cork. melissa: there is quite a bit of fallout over scaramucci's profanity there, white house official telling fox, this is getting out of hand, i'm honestly getting concerned for my safety in office tomorrow, this type of behave why are i ior -- bemay ofio a behavior is unbelievable. scaramucci responding saying sometimes i use colorful

language. i will refrain in this arena but not give up the passionate fight for @real donald trump's agenda. >> tonight, bracing for a long night of votes on healthcare, republican leadership wants to pass a so-called skinny repeal, but that legislation is running into trouble. fox news chief congressional correspondent mike ir emanuel on capitol hill with the report. >> purpose here to find things that met criteria of the bill that 50 or more of us would be for. reporter: a bold predicttion from member of senate republican leadership suggesting a soy called skinny repeal of obamacare could have the votes, president trump turned to twitter to turn up the heat, come on republican senators, you can do it on health care, after 7 years, this is your chance to shine,

don't let the american people down. some republicans express a sense of urgency. >> i told my people that first chance i get, i am going to vote to repeal. i'm going to vote for it i'm on it like a hobo on a ham sandwich. reporter: alaska lisa murkowski and susan collins voted again it, murder ko, murkowski confirming she spoke with the president, an. >> i did have a conversation with the secretary. and he told me what i already knew, which is that the president was not pleased. reporter: collins expressed out outrage.

>> she is doing her best to represent her constituents. reporter: another major challenge for republican leaders is opponents of healthcare reform spent 15 million attacking their efforts. now democrats sound like they are preparing for a late night fight. >> we democrats are not going alone. mr. president this is not a game. this is not a joke. it not hot potato, we're talking about people's lives. we're don't have time for phony amendments or phony bills, you don't play games with the healthcare of the american people. reporter: message from white house is, it is time to get the job done, lawmakers should have that opportunity late night tonight or perhaps tomorrow morning. a number of senators want assurances from house speaker paul ryan, that whatever passes senate will go to conference with the house to work out a more comprehensive plan.

melissa: thank you, mike. >> senator today focus not just on healthcare, but a key witness testifying in front of senate judiciary committee on russia probe, raising new allegations about fusion gps. the hearing comes amid new revelation about obama administration's unmasking of trump transition officials. fox news chief intelligence correspondent catherine hairn catherine herridge with the report. reporter: the republican chairman of house intelligence committee nunez updates nation's intelligence chief on the status of the unmasks investigation, three of the agents received subpoenas in may, naming 3 top officials of obama administration. john brenon, susan rice, and samantha power, in what appears to be a reverend to

power, nunez writes, one official made hundreds of unmasking requests during the final year of obama administration, and obama era officials sought identity of trump transition officials, however their was no meaningful explanation offered by the officials as to why they needed. during public testimony, an american who has done business in russia claimed lawyer at 2016 trump tower meeting was directly tied to moscow. >> she worked for the ffb, the successor organization to the kgb . reporter: bill toughers that natalia was moscow's point of contact for repealing u.s. sanctions. russia president putin retaliating. reportedly a subject of conversation at 2016 meeting. >> nobody was talking about adoption, they were talking

about repeal of sanction so russian tortures and murderers could freely travel. reporter: saying that russian lawyer -- plant false story in media, same firm commissions unverified anti-trump des dossier. in a statement they deny spreading fall information about broader and his lawyer. to russia, on unmasking allegation, a spokesman said any action she took. and about need for congressional russia investigation, a spokeswoman for rice said unmasking was done for intelligence not political purposes. melissa: thank you. we're coming right back with more stay with us. >> vice president mike pence

defending president's public rebuke of attorney general jeff sessions. >> one of the great thins about this president, you always know where he stands. melissa: can sessions remain? are more staff changes coming? we'll take that up. >> and congressman jim jordan calling for appointment of a special counsel to investigate clinton e-mail scandal. obama's justice department, and whether it tried to influence the election. congressman jim grord an is joining us next .

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melissa: paul ryan agreeing to drop his proposed border adjustment tax. this critical development in a statement from g.o.p. so-called big fix, white house, 1 senate and house now unified. the house judiciary passing anmen amendment directing justice department to provide documents related to james comey's leaking and mishandling of a federal investigation by former attorney general loretta lynch, and a bill requiring the attorney general to appoint a special counsel in the clinton e-mail investigation. our next guest was cosponsor

of that amendment, congressman jim jordan, serves on judiciary and oversight committees, and a member of the freedom caucus. do you think there is an appetite for this now? >> i do, what fbi director testified a few weeks back, said at direction of attorney general he misled the american people calling the clinton investigation, a matter. you to go out say something to american people that is not accurate in middle of a presidential campaign. why would they do that? because they wanted clinton to win. this is the same attorney general who met with hillary clinton a husband on the tarmac 3 days before hillary clinton was to be interviewed by the fbi, trying to help her campaign activity. this something that american people talk about all of the time. in our district, they would like too get the facts on these issues. melissa: i am more stuck on

the obvious pay for play. maybe just because i'm a money girl, you look at back in 2010, bill clinton was paid half a million to go to russia. and make that speech, very same time that hillary clinton was opposing sanctions on russia. they are married 50% of that money guess to her, that is so much easier to layout and explain it. that is pay for play. >> those elements of on resolution as well, we ask special counsel to investigate all, that the amendment we had in committee yesterday, asked for documents relative to those issues, those issues relative to clinton foundation, and what went on with speeches and payments, jim comey, and loretta 11 lynch and cheryl mills and her immunity deal from justice department. we ask special counsel to look

into all those issues, and justice department to give us documents related to those issues. melissa: moving to healthcare. what do you think is going to happen? are you going to be able to get something to go over the finish line. >> we call this day, several weeks ago, freedom caucus said we should stay in august to get work done, i am not that enthused about this so-called skinny thing, skinny bill, if they send it to us be we could go to conference, old jingle, i'm just a bill sitting here on capitol hill. that is how it works, map maybe we can get something closer to what we told the american people. let's see how it plays out. i want to mention, i love your reaction to the bait being dead.

>> to me that was a decoy, kind of like, the thing you put out there that makes everyone scream, and say -- so you can negotiate the rest. give away the thing you never meant to do. >> maybe, but there was a lots of important folks in congress pushing that, and second thing, this whole idea we have to function in a revenue neutral environment, that is a fancy way of saying tax burden stays same, and we just shift around who pays what. let's not abide in that straight jacket. melissa: i have two solutions, one is dynamic accounting. calculate in a static fashion. also why not starve down the beast of government. why is that a goal.

>> i could not agree more this revenue neutral framework is not good, but, deficit neutral circumstancis. let's cut taxes on family, lower corporate rate. that is not good right now, and then let's cut spending, we need to create an environment that is conducive to economic growth. melissa: i heard steve mnuchin has a hundred people taped to their desk. you are not going home without doing this tax cut are you? >> we have to do it. we -- this is something that american people deserve, they deserve to keep more of their money. all about freedom. so we need to do that, and simple fact that is what we told them we were going to do when they elected us, you can never go wrong when you keep your word. melissa: remember that market will punish you if you don't

fulchino that pro fulfill that promise. >> do you believe that reince priebus has lost credibility to lead white house staff. cast your vote on twitter at lou dobbs, and follow lou on twitter and like on facebook and instagram. also melissa a frances, why not. >> and buy lou's new thriller, putin's gambit. they are loving it. brussebruce, he said your book is a winner. viewers whose comments are head on the show will receive an autographed copy of putin a gambit. and also lessons from the prairie, why not. >> on wall street stocks closing mixed.

s&p down and nasdaq down 41. durable goods orders posting biggest gain in nearly 3 years, up 6 1/2% last month. jeff bezo surpassing bill gates today as the richest man in the world. >> share of on-line retailer falling in after hour training. following an earnings miss, and listen to lou's reports, more lou, 3 times a day, coast-to-coast on salem radio network. >> the senate in disarray over healthcare, leadership lacking the votes for even a skinny repeal. will these guys get anything done? we take it up with the dean, ed rollins, that is next.

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melissa: the senate has just passed a russia-iran-north korea sanctions bill in a 98-2 vote. the measure passed the house and now heads to the president's desk. administration has not definitively said whether the president will seen it. russia's president putin said russia would have to retaliate if lawmakers moved ahead with any new sanctions. joining me to discuss the prospect of healthcare and that war in the west wing and whatever else we can get to is ed rollins who was the chief political advisor to the house republican leadership, also known as the dean. i looked on the floor of the new york mercantile exchange.

traders talk like that all the time. ed: you don't get to talk like that when you talk to a communications director of the white house. the first impression to a con -o a con sit been i, you don't talk like that about the chief of staff of the white house and bannon, the number two strategist in the white house. i think scaramucci doesn't get a second chance to make a first impression. melissa: his first impression was that 2:00 press conference last week and it was phenomenal. >> white houses are very strange places. i can't say that language

doesn't go on behind closed door, by the doesn't go out in the public. no one in washington, d.c. knows who anthony is. priebus has been a party chairman. he's one of the best friends across this country. if the president wants to get rid of him web has to do it himself. the senate republicans made it clear they don't want him out. if you take priebus or bannon out you are hitting big constituencies for this presidency. melissa: it's people totally locked in with the establishment. ed: the constitution gives the congress every bit as much a right to control legislation. we didn't he atlantic dictator,

we elected a president. i'm a big supporter of the president. if you want to get things done you have to understand the party is still the party, the speaker is still the speaker, the senators are still important. if you want to go against all of them fine. you won't get a thing done. you can wait for your library dedication. melissa: everyone has complained that he hasn't gotten things done has been thwarted. he did have reince priebus at the helm. he brought in somebody hostile he's familiar with. ed: this is not wall street. i'm telling you scaramucci is a friend of mine and i wanted to see him in the white house. i think he will have hard time moving the ball forward. as the communications director. he's not even sworn in yet.

the first charge he made about documents being made public. everybody who goes in the white house has his documents made public. melissa: we are coming back with much more. stay with us. the trump administration bringing count hammer on illegal leaks. kellyanne: leakers are easier to figure out than people think. melissa: these two skydivers are going coconut. >> we'll have the thrilling video next. we'll be right back with much more. stay with us. so let me ask you this... how does diabetes affect your heart? it doesn't, does it? actually, it does. type 2 diabetes can make you twice as likely to die from a cardiovascular event, like a heart attack or stroke. and with heart disease, your risk is even higher. you didn't know that. no.

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melissa: i'm melissa francis in more lou dobbs. the chair of the senate judiciary committee taking to twitter to caution the white house against firing jeff sessions. chuck grassley said everybody in d.c. should be warned the agenda sport judiciary committee is set for 2017. judges first. subcabinet second. a.g., no way. fox news anchor and former defense attorney gregg jarrett, i want to address that. they are talking about appointments and the idea there

isn't enough time to get a new a.g. gregg: you do have a problem with the recess coming up. there could be a recess appoint. the democrats could filibuster. and they could have a proforma session. the supreme court said you cannot make appointments during a proforma session. he could appoint an acting attorney general, doesn't need senate approval. you could pick something like rachel brand, third d.o.j. to push out rosenstein and take over control of the special counsel's investigation, robert mueller's and limit the scope. melissa: that makes it look like he's trying to manage the outcome and everybody jumps to

the conclusion he's trying to hide something. you heard jeff sessions when he was talking to tucker carlson. basically his feelings are hurt but he's going to do this job and he's not going anywhere. melissa: we are all jumbled up with leaks. but they are not all the same. there are some that are damaging, illegal and criminal. some that are just bad manners. gregg: some leaks are more illegal than other leaks. some are not illegal at all. somebody is providing information about what's happening in the white house is not illegal. you and i are the beneficiary of these leaks as journalists. but if you leak classified or top secret information that's serious felony with a minimum of 10 years behind bars. if you are leaking like the

f.b.i. has about an ongoing investigation and it deals with a national security matter like russian interference. even if you do what comey appears to have done which is to abscond with government property, convert it into his own purposes and convey to it somebody else for the purpose of leak together media, that is also as i read the statute, a crime. there ought to be an investigation into comey. congress is calling for all kinds of investigation, including one into comey. melissa: these investigation are launched on things that are criminal. gregg: they are look for a special prosecutor to look into loretta lynch or james comey, that would be different. why isn't there a special

prosecutor to look into not just comey's decision make and loretta lynch's conduct and especially hillary clinton. melissa: i read your stuff and it's delicious and delightful but nobody ever goes to jail. gregg: i remember during watergate a lot of guys went to jail. melissa: please roll the video. two adventurers combining their love for tropical islands and their love for tropical fruit. watch as they jump out of a plane over a stunning caribbean island known as guadalupe. they play catch with a coconut while free flying at 120 miles per hour.

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melissa: attorney general jeff sessions is in el salvador meeting with government officials to dozen ways to crack down on the ms13 game and the violence related to them. >> sanctuary cities are criminal's biggest attraction. that's one sales pitch. we can get you to a sanctuary city where we'll help shield you from immigration. melissa: president trump is visiting long island to discuss his administration's efforts to eradicate ms-13. the administration condemning an iranian launch that violated a united nations resolution. it's not clear if the rocket

reached space. the joint operations center said it did not detect any additional objects in space. joining us is four-tar general jack keane. let's start with the latest on the military's transgender ban. what are your thought on that. >> i don't think policy by twitter is the way to deal with something as complex as the department of defense and two million people on duty serving there. what we need to do is evaluate where we are. the military did not come forward and ask for this transgender ban to be lifted. secretary carter oppose that in the last six months of the obama administration. 2,400, 2,500 soldiers came

forward and changed their gender. they were serving honorably and faithfully before that, and i assume they are serving honor blaine faithfully now. i don't believe we can break faith with those soldiers by imposing this adverse action on them now. secretary mattis extended a study for six months to look at this situation because they knew they had issues associated with transgender. i hope the president in talking to secretary mattis to wait for that assessment before he issues a directive the department of defense would have to respond to. without that directive the department of defense does not have to take any action. melissa: thank you for that. let me move you on to iran and this rocket launch. how worrisome is that to you? >> the iranians have never giive up on nuclear weapons.

the newer jar deal has delayed their acquiring nuclear weapons. they want an intercontinental ballistic missile capability. this rocket used today could be used to launch that kind of missile. they look at russia, china and the united states as great powers, and their cousin north korea all having same lahr capability, nuclear-tipped icbms. if they are able to acquire that, they will be a global menace and something we cannot permit to happen. while north korea is about self-preservation, iran is about domination. they would use those weapons to intimidate europeans and america, push around sunni arabs in the region and lead to confrontation. melissa: what do we do to stop it?

>> do what the trump is doing. we moved away from accommodation and appeasement that we were on for 8 years with the obama administration. the trump administration wants to confront the iranians for their aggressive and assertive behavior. the senate passed legislation and sanctions against the iranians, russians, and north koreans. we have to isolate them and put incredible economic pressure on them like we have done before. that's the best medicine for the time being. me * up next -- melissa: scaramucci putting the pressure on priebus. we'll discuss the war over leaks in the white house. stay with us.

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ask your doctor about anoro. ♪go your own way get your first prescription free at anoro.com. me * we asked should president trump call for new leadership in the senate if the healthcare evident fails? 92% said yes. senator paul asked for assurances about the skinny repeal ball. he said the on path for the senate to pass the narrow

legislation, this package includes important reforms like eliminating the job-killing employer mandate and the requirement that forces people to purchase coverage they don't want. if moving forward requires a conference committee, that's something the house is willing to do. joining me, tammy bruce, radio talk show host, mark simone. thanks for joining us. he cannot possibly go home, face their families and live another day if they don't some something with this. tammy: you had eric cantor admit that all this talk about repeal and replace was a campaign tactic. everybody night was never going to happen. so this is why they hate being in charge. i think -- i have not expected anything to pass, because if

they were going to do so it would have happened before now. but they are in trouble now to a serious degree. this speaks to mitch mcconnell. i don't think he lost control. this is exactly what he wants to have happened. this is why the president has to be treated as though's an independent and -- as though he's an independent and you have two party doing nothing. by thes of the swamp have been invited into the white house. facing the establishment including the republican leadership who do not want reform to happen. melissa: have they painted themselves into a corner. >> there is no republican party in congress. there is no anything. they had six years to get ready for this moment. melissa: who cares. i'm going to lock them in there

until necessity get something done. these people got to get it done now. i don't care about the past years. mark: you had to be planning for 7 years to get ready for this. necessity had nothing. -- they had nothing and they are just making it up. tammy: if they don't pass anything real about repealing or changing this, they will come back and say since we don't have a solution, we have to save the understand companies, and that will be the bill that passes. then there will be arguments and discussions about single payer. 2018 is going to be very, very rough on a lot of these people who think they are in there for another 20-30 years. they are going to have another think coming. melissa: oh, my gentle ears. he used foul language.

i can't handle those words except every time i'm on a trading floor. mark: he wasn't talking to penthouse magazine. he was talking to the "new yorker." mark: i love anthony scaramucci and he will be great at this job. but there is a little too much of him for the first few days. tammy: the same arguments were used against president trump. we are tired of being pat on the head and stabbed in the back. we want bluntness and we want action. we get both of that from president trump and mr. scaramucci. i'm also half italian so i appreciate him. at the same time americans realize. obama talked really nice for 8 years and the country is a dumpster fire.

the fact is, this is not theater and demonstration or kabuki theater. this is real life and we want the future back. it will be these metropolitan and women who will bring it to us and i'm excited about what's happening. melissa: i'm tired of i'm so nice to your face and i'll stab you in our back. scaramucci said i'm a front stabber. this is washington saying you are going to do something and you don't. you say you are my friend, then you are leaking stuff about me. i think he's just being honest mark * you are right. when all these people say he shouldn't tweet, who are they to tell him when he said he couldn't talk. there will be a time when they can't believe people got annoyed because the president treats. roosevelt got a lot of flack for

going on the radio it was an experimental medium. melissa: i are always feel like when the molotov cocktails get thrown and everybody freaks out,. tammy: even kellyanne conway note that a lot of this stuff is being thrown at scaramucci because someone in the white house doesn't want him in there. someone is against him. she wouldn't be saying that publicly and he wouldn't be saying that publicly unless there was general agreement and understanding this is what's occurring. mr. trump is not to hothead, neither is scaramucci or kellyanne conway. these are individuals who know what they are doing. everybody is being caught off guard, keeping them on their heels. and in the meantime they are taking care of business. melissa: it feels intentional.

mark require's not about tone, it's about accomplishments. melissa: thank you, you are brilliant. tammy and mark, thank you. please check out lou's new book, jim born. putin's gambit. it's in bookstores everywhere. kennedy: why are house lawmakers about to go on vacation when they have no budget and no tax plan? republicans are battling over healthcare. now there is a major rift among democrats at well. i'll explain the two-party divide. i'll tell you how much was spent on a tiny public bathroom in a park. i want answers, glad you are here. aren't vacations the best? s'mores over a raging cam. fire.