stick with the facts. let the facts prevail. stuart: what is president trump's next step in what does he now stay about the fight of two or three days ago. liz: right. stuart: what does he say? does he push back or placate? interesting. li markets not reacting. stuart: time's up. neil, it's yours. neil: we to the a tweet on from the president on this, he called the leader a poopie head farther face. i'm kding. the whole thing, stop it you are leaders of western powers, act like it. that is my quick take on things. stuart: all yours, son. neil: thank you very much, pops. are focusing on those developments here. back to stuart's point all this getting a little crazy, special place in hell? sending relations to god knows where? i don't care whether you like the president, dislike the president, or like the canadian president, or dislike the can

made ran president, love maple syrup or dislike maple syrup, stop. we have huge issues going on in america. i don't have time for this. i do if it gets really nasty. this is "coast to coast". the likelihood that the overnight bank rate as federal funds will inch up to the 2% level that is coming from near zero. even though the overnight rate is very low. it is coming off zero. a lot of people got used to zero, that is a big adjustment. a lot of people my age who can remember interest rates and mortgages were fetching 13 1/2%. we thought we were getting a bargain, this seems like a party. again all your age and pective. re that. also following the fed announcement after that. whether it could telegraph more rate hikes to come. all of this comes at a time when the president, say what you will

about the nastiness and insults back and forth with our canadian allies. his approval rating is continuing to i've up. at this point he is above where barack obama was at this stage of his presidency. also ronald reagan. this is "real clear politics" average. a lot of you say ugly, nasty things that make me feel vulnerable when we pick a low poll. this is a "real clear politics" average. showing that for what it is. okay. so where are we now? get the read from economist brian wesbury, heather zumarriaga, on the crosscurrents and developments. heather with t canadians and americans trying to pat up b snes, but thetariffs and pd implementation of them, they're still in effect. what do you see happening? >> they are still in effect,

neil. whoever would ever say nasty things about you on twitter -- neil: it is brian. i recognized his twitter handle amile away. but you won't believe it but go ahead. >> i can't imagine but you're right, i thinkt trade tariffs will have an impact on jay powell's q&a session at the press briefing today. neil: absolutely. >> he will be grilled over tariffs back in april at his first press conference. i expect that to also be a topic. it is very hard for the fed to predict moving on rates, continuing with their course of action or their plan or not, based on headlines coming out of the white house. so the fed is in a wait-and-see mode in termsf tariffs imposed or not. if we do end up in a trade war though, all bets are off. the economy would go into recession. neil: we're not there yet. the market, brian, to heather's point don't see that yet but i'm wondering whether you do? there are two-ways to read tariffs.

they're inflationary in of themselves, but so inflationary, so costly, they themselves can lead to a slowdown, so they offset the very impact they have. what do you think? >> they could, neil, no doubt about it. i don't want to a trade war. i think tariffs should be zero just to be clear but no one is a perfect freeder. >> true. >> the u.s. has average dare riffs of 3 1/2%. canada, 4 1/2%. eu, 5.2. china 10. japan seven. no one is a free trader. neil: i'm glad you mentioned that, that we're on the lower slide globally. >> we are. neil: you can pick and choose products like dairy product the and but the fact of the matter when you average it all out, leading aside they're lower than most other countries, that we are higher than most other countries, we run a surplus on goods and services with canada but go ahead. >> right. that is absolutely true. part of the problem is you have to use average tariffs, no one

trades dairy to canada, they tax it so heavily because it doesn't go up there. if you use effective tariff it never gets counted because there is no trade. what i l at is average tariffs. we are onower end. you know, i can't, i can't judge whether his negotiating -- is this "art of the deal," is it going to work out perfectly? i don't know but reagan put tariffs on semiconductors. tariffs on steel. neil: absolutely. >> every once in a while, three, four, five years, we put tariffs on canadian lump before. this has been going on forever. what happened, slowly but surely tariffs have come around, come down for the last 70 years and i think that is going to continue. as far as the fed goes they should not worry about this they need to worry about monetary policy. >> but they're still going to be asked. you know reporters will ask jay powell about trade, even though

i agree with youhouldn but he is going to be asked. neil: how does he answer that? because i agree with what brian, you don't want to pay attention to something you might think would be unlikely anyway, but it is still a possibility. you still have to prepare for the impact of those tariffs if and when they take effect, right? >> yeah i do think -- neil: go ahead. brian ilet back to you. >> a strong dollar will weigh on the economy. in terms of market impact the markets held up just fine despite these tariffs. i know industrials like boeing and caterpillar get hit every time we have tough trade talk. russ 2000, small cap gauge is doing better than large indices. the fed as an independent organization, agency supposed to sat from all the white house drama. they have to stick to the mandate, inflation,

unemployment, which both have been fulfilled. year. think the fed will raise exactly. neil: brian if they do that, in the face of what could be, i know you don't envision, what could be another inflationary hit from tariffs if they go into effect could they fall instantly behind the curve? >> well they could. ihe fed is already behi curve. 1.75% interest rate, when gdp in the second quarter, real growth is going to be 4 1/2%. that is the forecast >> wow. he producer price index over this pastust got the numbers -- >> 3.1. >> 3.1. so the f's curve. if i were jay powell and asked about tariffs i would say that is none of my business. is what i would say. my business is monetary policy. and so we need to get rates up. by the way, i have a quick comment on tariffs. you know people hear this over and over, putting a 25%

tariff on canadian steel is a attacking our friends. they're attacking ourhat about g tax rates on wealthy americans and successful business people in america? is that attacking our friendly family? like i don't ever hear people talk about that. so -- neil: very good point. >> what is fascinating about this, i love, in a way, i love pressure because what happens is that peopl say nonsensical things, they expose themselves because they're willing to raise taxes onsuccesn america but they don't want to raise taxes on canadians. and so tha is hypocritical. neil: we should point out no less than alan greenspan, not a bug -- big fan of this president, cutting corporate taxes in particular is a godsend. he has been srtive of how that stimulated activity to the point we can do a lot of what

we're doing, coming from a position of strength. he didn't agree with virtually anything else but he liked that. guys, i want to thank you both very, very much. i echo those taking a position one or the other on trade, when look atou can cite examples that might seem egregious to you, milk and dairy products and our farmers find other outlets for their goods and they have have with other markets that are not applying tariffs. o by the average of the tariffs. in our country we average 3 1/2%. we're on the lower side, not all that different from the japanese at 4%, from the canadians 4 1/2%. some of the big sinners as you might expect, china, close to 10%. that is an average. you industries and set areas, steel and aluminum, to the president's point out of china and some of these other markets, brazil, for example, where you're way, way up into you can talk about how difficult

it is to get automobiles made in america into their countries. those are very, very real figures that get int 22 to 23%, but when you average it all out, that is the best way to compare apples to apples, the bottoms many of these countries, particularly the h us.ds we are targeting about so we might as well tariff ourselves because the canadians are just like us, and with much better syrup. just want to get that out there. in the meantime the president is declaring an end to the another kean nuclear threat. he said that was solved with his visit back from singapore. the read from lieutenant-general thomas spore. general, good to have you. y the president is going to try to put this in the best possible light. heerves that. people say this is historic meeting whether you agree came out of that or not, the two

leaders met, the threat gone, what do you think of that? >> i think it might be a bit from maturehat thear reat has gone away. from a literal perspective where my military mind usually is, the north korea has the same number of nuclear weapons, missile launch chers, test facilities. premature probably to say the nuclear threat is on the other hand to give the president some credit you have to look at the level of tension, by all respects the level of tension between our two countries has gone down. neil: general, i got a sense, you follow this so much better than i with a good cop, cop stoing on the president being a good cop, and secretary of state mike pompeo in seoul, south korea, acting as the bad cop the north koreans they must take major nuclear nuke disarmament

steps, north korea knows there will be verification. reminding, if they n reminding that the north koreans have to ponyp. e president didn't say that. secretary of state did. president said the nucle threatff the table. michael pompeo did not. what are we to read with this? >> the president has employed the good cop, bad cop strategy before. he uses it with secretary matt. now with secretary pompeo. that is frankly not something new. i frankly there is utility in that kind of position. neil: do you think this will yield results? we've been snookered before, general, as you pointed out. how do avoid a third time? >> hard to know. early indications are positive. as everyone is saying we need to haveete, verif disarmament and denuclearization. only time will tell whether north korea is frankly serious. this is a good start what will

be months or mayben yea long process i'm ne, thank you very, very much, good toee y. >> you as well. neil: we're up four points on the dow. activity is a little bit halted ahead of the federal reserve announcement coming less than two hours. we are expecting all of these guys at the ctral bank to hike l probably bnanimous move. another quarter point which will bring us 1.75 to 2% range to buy money overnight. that is how much the rate will cost you overnight. that used to be at zero. what is considered a normal range, a lot of peopl 3 1/2%. we're even with that, only halfway there. do welly have to dou where we are now to get back t historical norms? if that is the case how do we deal with that? after this. ♪

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neil: boy, if you have content, anythingh good shows, movies, good books, anything, wrap it up in a package, tie it in a bow and watch the value of. it has certainly been the case for twenty-first century fox, our parent company, a host of others right now that have some stuff they might want to sell or world.want to showc the

discovery, that name comes up quite a bit. all the acquirers, what is happening to their stock. disney interested in buying a lot of has sets from my parent company, from comcast. back and forth, back and forth. to a former doj antitru attorney what happens now that the judge approved the at&t time warner deal. david, we shouldn't be surprised by thisean but what should we be looking for now. >> this is fact specific decision, the underlying theory used by the department of justice was not rejected. nevertheless there is increased potential for deals in variety of industries, especially in media. neil: so the fact that it looks like the government might try to appe, would that be an uphill battle? >> it will be aill battle

but they're appealing to a sympathetic court, the d.c. circuit has been very pro-government in the past. but the judges 172 page decision is is comprehensive on the facts. that will be a real tough battle for the doj. neil: i thought there was feeling it would get approved but there would be provisos or conditions in there that would make it less than ideal for at&t. none were included in the end. no networks to sell. no spin-offs that would have to be required here. what did you make of that, it was pretty much up and straight, got it? >> that is the point that the department of justice and the trump administration has made. we're not going to parse these deals and impose regulatory conditions to try to fix some kind of a competitive problem. a deal should be challenged they will look for structural relief or simply blocking the deal. neil: is it your sense,id, at this sets motion, not

just in the m field but sort of like a green light for other big mergers that might be still pendg, might be entertained? that this is the read, this is the mood in wash -- washington, pro, big, big? >> neil, i d't wan to hit to close to home but fox-comcast comes to mind. the court did in this case was petitive.comcast nbc m w that found it wasn't. that comcast-fox would have pretty good reception before the department of justice and the courts. neil: very good talking to you, david. we'll see what is next on the agenda here. meantime all of those that might be bait ornterested properties to own, those stocks are getting bid up as we were showingou with twenty-first century fox, potential acquirers. could be a different story. disney is up. it might have to pony up more dough here. way too early to david's point

be it of reted the m&a world, the merger and acquisition world. we're getting a read when we come back from scott mcnealy who was on this trend, would you believe more than 20 years ago? he is coming up. ♪ e. hey, no big deal. liberty mutual won't hold a grudgend aising your rates over one mistake. you hear that, karen? liberty mutual doesn't hold grudges. how mature of them. for drivers with accident forgiveness, liberty mutual won't raise their rates because of their first accident. liberty stands with you. liberty mutual insurance.

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neil: might have heard seattle has gone ahead and repealed the amazon tax. voters allowed it t was aboo be implemented. it caused a huge storm in tt shall we say caffeinated community. they decided to nix it. they have to come up with another ways and means with a cost associated with homeless people. they are not giving up in communities. not too far. palo alto, cupertino. apple, menlo park and mountain view and san francisco. so the fight is on. sun microsystems co-founder and wave co-founder, executive chairman scott mcnealy.

scott, good to have you. they pulled it but it is not dead in some of these other locales? >> i think reagan was right. i harken back, it mov tax it, if it still mov reg it, and if it stops moving, subsidize it. i think in the bay area we'll do all of them, all at the same time. but, it is, this is all just, i think it is going to have a lot of voice here because people like to spend other people's money here. neil: you know, it's a conundrum for a lot of high-tech executives. i'm not trying to stamp a label on all of them, fair to say jeff bezos of amazon is slightly to the left. but he also has a fiduciary responsibility to his shareholders and elsewhere, not to incur costs out of the government's responsibility. he laid it on the line here. this was not a good move. other companies have said much the same. so this idea, this idea that municipalities, towns, can go

after comes, sort of like a piggybank and seize on the fact they're all getting big tax cuts or they can afford to help out what do you say to >> you know, this has been a battle forever and i think cityncils have to be very careful that they don't scare the golden goose off. you know, employees also pay taxes in those municipalities. runnm out of the way, it is just, it is a tough balance and my view is that if governments would jus stay focus what they should be doing wodn't fund all the crazyey things that they do. neil: you mentioned government, scott, talking about the go iuiries, now requests for still more documents, data, reserve, from the likes of facebook privacy invasions. you're famous of course for saying if you wan your privacy you better get over that. i'm paraphrasing here. but you said much the same about

how customers of facebook and other concerns sort ever wrestle with that. the convenience and ease with which they can communicate with their loved ones and the risk that some data can there. explain your position on this. >> well, we used the word facebook and twitter customers. i'm a twitter customer. i don't pay twitter anything. so i'm really not a customer. i'm actually the product. i have no belief system that that i have any privacy. i tell my boys, anything you put on the internet is a digital tatt. the fact that they're out selling advertising and matching buyers with sellers, using personal data you inputted should be a surprise to anybody. and so i look at this, say, what's the big worry? i will probably say something here that might get me turned off of ttter for a while, seems like that happening a lot. neil: right. >> but that is a risk i take y know what? that will not change my life, it really isn't.

what could change my life is having the government have data on me because they do health care, they do student loans. they do. do all kinds of audits which i have had the pleasure of getting. these are the things that can actually impact your life. it seems like the only people who actually have privacy anymore are corrupt government officials in different agencies who don't have to show their emails or deliver information, even when asked by congress. all these people work for us, yet they're the ones that seem to be the only ones that have privacy. and they are the scariest of the bunch. i'm not really worried that facebook, twitter, all these other social media companies are going to change my l or impact my life. neil: so, if you hear that it, facebook is sharing this data or this database on folks like you, i like the way you look at yourself, you are the product on a service that you use free of

charge, that doesn't bugou if apple gets ahold of it or other services get ahold of it? >> duh. i told you that you have no privacy get over with it. anything you do digitally it will be there. weigh in, we make sure explicit first party data exchange, in exchange for value we give to the customer, not doing it like implicitly. we offer campaigns that explicitly capture data, you get a chance for a house, get a coup o some other thing. that seems to be more aboveboard. my message to anybody, anytime somebody takes your picture, records, you don't know what is happening, you got a digital tattoo. neil: scottou were ahead of a lot of curves here. not blowing you smoke. you sold sun micro to oracle,

that was a deal way ahead of its time. now we're seeing deals that go outside of the conventional arena like at&t and approval now to buy time warner, set an entire entertainment field, media stocks i general in play. amazon and apple get caught up in the speculation. what do you think of all this? >> fir of all i think it was absolutely crazy took our government a year-and-a-half to kind of rule on this thing n that time the "fang" stocks,facx and google, they grew by over a trillion dollars in market cap while we were screwing around in the courts trying to figure out. what we're talking about is vertical integtion that already exists with all the fang companies. they all have studios. they all createontent. they have aggragation platforms and sophisticated ad platforms. they are all direct to consumer. do we have shortage -- we have epidemic of stuff coming at us,

over the top and to our phones and ipads, all the rest of it. we're worried about our kids spending too much time doing this. now we're worried about some vertical integration where we can do that? the case against the at&tn this was we need make sure that they don't use their pricing power against cable companies. really? i mean, people are cutting the cord like crazy. number of subscribers are dropping off like crazy. everybody is going over the top. it is, i mean it is sort of like trying to protect cab companies against per, lyft, everybody else that come along. it is looking in the rear view mirror. go on my twitter feed, i create content. i publish, by retweeting on my twr account. everybody is a subscriber to everything. some free, and some not free. but we certainly don't have a shortage of places to get at

basic productivity sappers or generators as i call them. neil: your point about netflix and all of these other rising, you know, competitive threats to the traditional giants was something that judge richard leon brought in his nearly 200 page opinion here. finally, every time i have you, i like to get your read of the political landscape, president trump, how he is doing, the trade bad tells, all of the above. how do you think he is doing? >> i have always said that the worst ceo would be a thousandtit politician and, i wouldn't call donald trump the w c ever but he is 1000, he is doing 1000 times better than our classic politicians. it is not fun. the swamp monsters don't enjoy it. and change is always hard for people to deal with but, you know, basically, i think things are moving in a very positive direction and way more ways than

people want to argue for. you know, i don't like every star baseball player, basketball player, football player. i like most of the hockey players. the fact that i don't like them, doesn't mean i don't admire the job they're doing and doesn't mean they ain't getting the job done. neil: interesting you left out golf. i know your sons are very good at it. you left that out. we'll see, that is another interview. >> thanks, buddy. neil: scott mcnealy, thank you very, very much. talk about a visionary in this industry and beyond. the stuff he was talking about, is the stuff that is happening now. that was decades ago. this is some perspective here. a little more after this. while i seas serving. it was my very first car accident. we were hit from behind. i called usaa and the first thing they asked was 'are you ok?' they always thk you for your service,

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♪ neil: all right. , the next world cup is just what, a day or two away, r? but they have already booked the 2026 world cup. it is coming to north america.

you have to book things in advance. there is different spin. not justne country. >> three of them. when you and i speak soccer, the history is magic. through fox sports, the has the right to broadcast the next three world cups. i want you to know that. neil: very good tonow. my interest has gone up exponentially. >> i thought it might. u.s., canada, mexico, first time three countries bid and been accepted to host a world cup. the competition was morocco. they beat out the morocco 134 t 65. it is ieresting story. neil: morocco had to be 65. had 64 friend. >> china went with them. neil: after all this? >> who went with us? russia, russia voted for this one. take out t sports, what you hope to do, this is better story following money andolitics.

has a lot to do with money first of all. what the united states, canada, basically went to fifa, the governor inning body of soccer, we can make you a ton of money. revenue 14 billion, profit of 11 billion. way ahead of morocco. we have stadiumsere, already built. nobody has to build stadiums. you have metlife stadium in new jersey which will end up hosting the final they're ying. the rose bowl out in pasadena. stadium in dallas. neil: you're telling me will the final? >> i think that is the way they're going. last time in '94 was re bowl. areou going to go. neil: as new jersey resident i never been. >> get a scarf. maybe they make it in the u.s. this is big u.s. event. i know it is three countries but 80 games total. 60 in the u.s. 10 in each of the other countries. neil: how do the other countries feel about that? they split it three ways? >> u.s. spent more money on it.

u.s. soc federation. mexicoted world cup twice. u.s. once. canada never hos it although hosted women's world cup in 2015. could be big for socker in canada. the political story, look at these threees, renegotiating nafta. president trump doesn't get along with the leader canada or mexico they are working together. the president is very supportive of it. he tweeted he was happy that they ended up winning. he was supportive of the bid. some serious questions were brought up on the periphery about the president's imn policies whether or not that would have affect on playersing in aans coming in, the president said up front, that is not going to be a problem. everybody can come in to watch the world cup. that is maybe one of the final hurdles they had to clear. it is on its way here. is is, u.s. socce needed good news. they didn't qualify for the most recent world cup which was a huge embarassment for the federation not even to get in. now they have one to plan. neil: does that affect ratings

in this country, wouldn't it? >> that is a big deal for fox. fox sports got in. espn had last world cup. they spent hundreds of millis of dollars on the three world cups. russia this year, qatar in 2022. now this one in north america. you wouldhink executives at fox sport hope to get victory, they might have to qualify. usually the host country gets in mapresume i about u.s. gets back on its feet, gets into the world cup. there is lot of excitement with stores. messy, renaldo, not having the u.s. in it. most experts say it will have ratings on preliminary rounds. neil: who is the favorite. >> brazil is the favorite to win the whole thing. neil: really. >> they have neymar. you know neymar. neil: sure. >> not cavuto. neil: isn't germany raining? >> very good. neil: i looked at my -- germany

is the reining. >> they're always strong. germany is always strong. neil: as are you. i can't carry you during these segments though. >> you do your best. neil: i do my best is rig anytime you want to know about municipal bonds. >> i know. neil: one hand washes the other. thank you, my friend. connell mcshane ireland in this one. sore point. >> italy, ireland, united states all three, didn't make it. neil: why bother? thank you, my friend. meantime there is a trend we're noticing. a lot of big primary nights, those who stayed close to the president did okay. those who did not or worse, criticized the president let's just say didn't have a good night. the latest of course was that guy in south carolina. the read right now from "usa today" congressional reporter eliza collins, "axios" political reporter alexi ma kin none. i'm thinking about this, and

mark sanford, maybe i certainly have not criticized or gone after my presidentn tariffs. that was icy on the chilly cake. the two never had a good relationship. so the president tweeting bad things about him election day probably didn't help, huh? >> it definitely didn't help. i'm sure mark sanford woke up feeling ashamed, i don't know if ashamed right word or regretting those comments. he did not think he would lose. republicans here did not think he would lose. it was a tighter race than usual. mark sanford was former governor of south carolina, made it through a lot of scandal. admit ad affair and had to resign his post at republican governor's association but kept through ts governorship. he came back to congress on his seat. he made it through a lot of elections. criticizing trump was just a bridge too far. neil: what is interesting, when i look at this, other pro-trump candidates did well, state senator lee bright, who had a lead. requires a runoff election in

the same state or henry mcmaster, republican candidate for governor, who was an early trump backer, donald trump remembers that sort of thing. his blessing counts more than his, doesn't it? >> it certainly count as lot, if he is positive or negative for these candidates. another trend to your point of candidates aligning themselves with the president, build them as trump clones of the we saw this in the west virginia republican senate primary where all three candidates were outtrumping each other. saying things like maga, drain the swamp, call the mueller investigation as a witch-hunt. they were basically mimicking thesident's rhetoric. that is further way how the republican party is increasingly becoming the party of trump. the president is becoming a candcross the country. if you are with him, you will presumably do well. if you are against h you do in the seek re-election or your congressional career is ended

like we saw with mark sanford. neil: it is a recurring theme. to your point, be friend of donald trump or risk losing your job. on top of that a inspector general report coming out already raising eyebr the president poised to use it as a reminder that it is a rigged game. that investigations that he has been getting toward his staffers and people, even during the campaign was unfair, was tilted and a witch-hunt. will this report go so far as to verify that? ly not. but you can bet the guy in that house will make a case that it does. and it will. after this. ♪ ♪ i can do more to lower my a1c. because my body can still make its own insul and i take trulicity once a week to activate my body to release it, like it's supposed to. trulicity is not insulin.

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neil: all right. michael cohen back in the news again, maybe not the way the president would like. charlie gasparino with more on that. hey, charlie. >> i know you're talking about the clinton probe but what seems to be intensifying here is the federal probe into michael cohen, former trump lawyer. here is what we know. prosecutors are turning up the heat on mr. cohen. theythey will according to recet judge rulg h access t majority of emails. these are emails between him and the president as he is being investigated by robert mueller,

who essentially handed the investigation to the u.s. attorney for the southern district. here is the interesting thing, as all this is going on, fox business confirmed, michael cohen's lawyer, a guy named steve ryan, pretty prominent member of the federal down in d.c., former federal prosecutor himself, may dro of t case, he may leavehe case. why tha is, all we can tell you there is a lot of speculation whether mr. cohen can pay mr. ryan's fees. there is speculation that maybe mr. cohen needs a different type of lawyer. lots of talk right now mr. cohen possibly cooperating with the feds in exchange for lien yen -- leniency if he face as possible indictment. we know he is a trump lawyer. he tried to establish business ties in the past between russia and therganization. he has private business dealings. the feds went in, raided his offices.

took all the emails. they're siftingough them. tens of thousands. they have access to most of them, even ones with trump would presumably be under attorney/client privilege. recent rulings show they aren't. a lot could put mr. cohen in legal jeopardy. i put a call in to mr. cohen. he did not return my calls. mr. ryan has not returned my calls ever in his life. i should point that out. we're getting pretty good sources that he would lose ryan. this guy is capable lawyer. we have a confirm mr. ryan may drop out of the case. you get the feeling u.s. attorney's office of southern district hasn't returned our call. you have a feeling something is coming to a ahead with mr. cohen , his lawyer weighing whether to leave the case and investigation by the u.s. attorney into his business activities heating up. that is not good news for president of the united states if mr. cohen does cooperate. neil: we move on 10 points, to

down nine points. way to go. >> this is existential to the market f you're may playing market on negative trump news,. neil: i'm being serious. meanwhile that inspector general that report, that is coming out tomorrow on the fbi's handling of the clinton email probe. florida republican congressman matt gaetz what we can expect. we are told, congressman, that it is he going to make it look like a cabal against candidate trump. it your sense there is more to it than that? >> well, neil, i have not read the report but based on interviews and depositions wee taken in the judiciary committee i expect there to be very negative treatment of james comey. we believe that will include the exceeding of his authority but i think there should be negative treatment of mr. comey for lying to congress and saying that he had not cuded the investigation when in fact he was already drafting an exoneration statement for hillary clinton. we already know from the inspector general that there was sufficient evidence of potential

criminal activity from the former deputy director of the fbi, andrew mccabe. such that he was referred for criminal prosecution. i also expect there to be negative treatment of peter strzok, the individual who at one point was workingn the clinton email investigation. then later migrates on to the trump-mueller-russia probe. what remains to be seen is what the overall theme will be. my expectation we'll see a theme where the senior leadership at the fbi and department of justice were very interested in shaping public opinion by leaking information and by making statements to the media. we really want to live in a world where our investigators are worried about the facts of the investigation, not the political consequences or the public perception and i think that we'll see that discussion and hopefully we'll be able to craft some bipartisan solutions so that we don't see further political infection of the fbi or department of justice in the future. neil: your democratic colleagues are saying quite the opposite. you're trying to dirty the political waters to say that

this is sort of, you know, a trumped up investigation, no pun intended, and that it is indeeds engrained there. whatever comes out of bob mueller is tainted. what do you say? >> it is not republicans in congress who indicated bias and improper actions it was the inspector general who referred andrew mccabe for prosecution. the very same andrew mccabe who deprived the washington field office of jurisdiction to the clinton email probe and brought it back to headquarters. neil: the same fellow pointed out that mccabe should be investigated for lying. his authorities, fbi authorities, no less than three different times. >> yeah, no, that isutely correct. so it would be unfair to just characterize these concerns as concerns of members of congress on the republican side. there is a "politico" probe just released more americans believe the mueller probe is biased than

believe it is fair. mueller's unfavorables are up 27% since july. more oversight and investigation we do, the more we're able to illuminate the bias, the american people believe us, not the mainstream media. neil: we shall see. it's a mess, congressman, thank you very, very much. in the middle of all of this. we do have a little bit of good news. larry kudlow was released from the hospital. i believe he was at walter reed in washington area at ba t today. he had a made heart attack. he is keeping up very tireless schedule. but the president's chief economic advisor is expected t be okay and he is out of the hospital. good for him. we'll have more after this.

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neil: all right, you can cut the tension with a knife. let's be honest here, how many are tense about this? the federal reserve is expected to go ahead and hike interest rates. what we don't know and why this is building around the announcement, what is going to come and whether satoru zurcher mandible have a strong economy, maybe even more inflationary by terrorists. nicole petallides following it all at the new york stock exchan hi, nicole. we can feel it in her excited for the new stock exchange meeting.

we can see the mar mixed through the ballot is to be pulling back. nasdaq record high. we might see the 100th record close since president trump was elected. taking a look closely at the projections, the last meeting they basically said three this year, three next year. a lot of folks think therefore could be possible. most enomists will stick to the modus operandi. take a look at the next few meetings. september and december. when you look at the cme and fed fund futures can you get possibility of future rate hikes. quarter-point rate hike in september and maybe another one in december. up 45% likelihood. they're really not even guessing on the rate hike. rate hike. that being said, take a look at the home builders which been pulling back. as rates rise, mortgages, credit cards, all higher as well. you also have mortgage

applications falling as well. we'll see whether or not they do their hike today and of course whether it be three or four. jon hilsenrath named some reasons why we could see for and they might go beyond, which is the unemployment rate, and labor market, just to name a few. back to you. neil: on the show and others you've heard about the yield curve to gap between the rates and a shorter hand although yet to up to the long end. well, it has been trending flat. in other words, the short and goes up, the longer and not so much. sometimes that can mean some trouble. suzanne leigh following all of that. >> let's talk about the spread, something they are looking at very closely. as you can see, the difference between the short end of th curve, the two year treasury bond in the 10 year treasury bond worth a low estimate, narrowest in 11 years and you really don't want to go below to

read my name showing you right now below zero because that is really bad. usually indicative of a recession. when the yield curve inverts below the zero line, that is actually proceeded to pass seven recessions. if you wonder why the yield curve is narrowing, here is what is happening. first on the short end. on the two-year bond, it is rising thanks to the fed hiking interest rates and they are expected to do so again in an hours time. secondly, on the long end of the curve, it has been depressed. why you ask? the fed wanted it that way. that is kind of what it is intended to do. secondly, lowered inflation expectations. prices are not rising, so we have a lower yield on the ten-year period we should point out that it's not unusual in this type of cycle for a flattening yield curve comment initially during the time in the federal reserve is hiking

interest rates. you would hope that the fed raise rates because of higher inflation and better growth. these are two things we expect to push up the 10 year yield. one scenario that charles brady of fox business has come up with a bit of concern looking at 13 trillion. that's even higher than pre- pre-2008. interest rates and we have to have mortgages and credit card debts, does that mean the consumer gets depressed and we haven't even flatter yield curve or do we go below the zero line? that is something we are watching. neil, back to you. neil: very good. susan, thank you very much. and every one of the last seven recessions, that kind of thing has preceded it. let's get the rate for market watcher scott mark in -- she laid out a very good toward a table here with what is ppening in the past and what coulppening again. what do you think?

>> yeah, it was a great chart. if you take it back to the 90s, which we all remember was a good growth scenario. a good budget situation. you could flatten then, to my friend. we've talked about many times so far this year looking like it's going to do. flattening t yie curve can inst a good growth environment. the fed is actually playing this one pretty well with respect to how they look at the economic data, where the inflation target is. gdp deflator, cpi is 2%nd change. a lot of room to have one more hike in june and wait to see what the data tells us to do the rest of the year. neil: we are going to get an opportunity to get what is behind the fence thinking when the chairman speaks with reporters. he might telegraph mor to come. my honest and does the status quo. what do you think? >> i think right up until we saw

the producer production index as well as the cpi numbers come out, i would have said there is no way we are going to have a fourth rate hike. but the fact of the cpi really surprised us. this is producers before it gets to consumers. that really jumped from to point me to three-point line. that is forward-looking. neil: in nursing jump to three-point line, that assault prior months. >> exactly. that is a big change in may versus the prior trend. neil: your rates are not for fear of being caught behind. >> is so forward-looking. they don't have to react at this stage. this is definitely the one rate hike. if that continues and we see that trickle-down into the consumer prices because we have a slow upward trend right now. thats a potential indicator that a consumer could then see a higher rate as well and that might cause potential hike in december that is not exactly

expected at this point. neil: craig smith, stock traders are worried about this time as they often say they have a funny way of showing it. they slough off trade were battles to they slough off nasty comments between ourselves and the canadians. they slough off the north korean agreement which wasn't what we ould in other words, this tendency markets have to worry has been anything but. they are not seemingly too worried. what do you make of that? you can see in the fed fund futures this morning. i'm not so concerned about the rate increase. i do believe there will be rate increases if you go back to the ginning of the show come you're talking about real rate should be somewhere three, three by 5%. elected to pnt a percent cpi, i think that this chairman is going to be emboldened to be a will to take steps to normalize rates because it's got a good economy to do

it. as your other guest said, we've seen finding yield curves before and it didn't lean towards recession. i think this is the most important thing. i want to see what the statement says. i want to look for three things. number one, is the fed going to remain somewha accommodative? is the second accommodative far as the word accommodative going to be taken out of the language? also, i want him to talk to the politician and say look, we've done everything we canfinancial. now you guys haveo deal with the fiscal reforms that are necessary in order to assist pain disappeared until we do that, we are just whistling past the graveyard. neil: i wonder if the chaiill weigh in on the ade terrorists. they are supposed to in the canadians are supposed to respond july 1 with te

their own. if that happens, where are you on this?thenflationary threat oa slwn threat. >> tariffs for goods that come into the u.s. is inflationary concern to the u.s. consumer. they will watch those things and geopolitical developments, but they're not going to talk about them. i don't want to go dennis rodman on you guys, but ie got to tell you, this is a great day in fed speak. i'm holding back tears i guess because this is a rate hike that's been long coming and normalization of interest rates. as aaron said a couple more this year. i'm in a camp there's another one in december. by wayome after the meeting today they could hike a couple more rate hikes in there. this is right on the curve for one time in history. but the curve for the economy. the four more meetings were told

that the chairman is going to favor depressor after each one. the hikes are cut or anything with a press event. now he's going to hold one every six weeks i guess. what do you make of that? that adds to the anxiety, doesn't it? >> it does and it doesn't. >> where the special graphics >> in general, transparency actually columns the market. it's the unknown that causes the volatility. so if we're getting more information from them, that is actually most likely going to keep thearkets a little smoother. as we've seen even with janet en, the more transparent and the more s was, you actually saw smaller reactions to in the fed finally raise rates because the market had

incorporated it into their expectation. for me, the more transparency, the less volatility. neil: interesting. are you buying in thi environment? >> actually i'm not. i'm on the sidelines. this is a little bit too rich for my blood. howe i believe we could see another increase as it relates to productivity and subsequently prices and the stock market. keep in mind that i think powell is a different chairman. this chairman is going back to the individual mandate. full employment, keeping prices stable, i.e. no inflation and moderate in long-term interest rates. it was only per naki and ms. yelena put the fourth mandate and that is our responsibility to buy assets to prop up the price market so people at confidence we would get back into consumer spending. i think he has a lot of

levege. keep in mind, if he does raise rates to 3%, now he'got some ammunition in the event we d have a slowdown. he doesn't have to use those extraordinary tools like asset repurchases. he can lower interestates. neil: he's built up a little bit of wiggle room there. guys, what to thank you all very much. very good read on all this did in the meantime, sort of a good cop, bad cop read from the president that he thinks nuclear threat is gone after bad cop secretary of state mike pompeo and south korea about the north koreans come you darn well better start taking steps before the end of the president's first term or what? good cop bad cop after this.

neil: all right, the president back at white house signaling and meeting with the north korean leader that strengthen the nuclear threat from north korea is gone. don't worry about it. hivot the white house with more. >> we jus heard from secretary of state mike pompeo talk to press after he went down in

seoul, south korea today. they are serious about north ryukyu nuking by the end of the president's first term. t ever i convinced. he called senateawmakers after returning home from his singapore summit with kim jong sunday. e republican lawmakers. >> gating directionally we are going in a direction they present a far greater threat before president trump became president so he's moving in the right direction. >> this is going to take time and we have to make sure we have irreversible, comprehend live denuclearization of north korea. so, that's what we need to get out of this. i'm pleased the president has gotten us to the position we are in. timeill tell how this ends. neil: democrat minority leader nancy pelosi had a warning today for north korea and others negotiating with trump,aying e, to have nuclear bomb in your pocket. i was just moments ago.

it's not just a timeline that s wmakers concerned. the decision says ben military exercises have been a big issue. critics say is assigned the the president compromised and ce. putting military exercises on hold in the korean pendant to his conditional. kimas to continue productive negotiations and we just got a fresh addition to the timeline of how negotiations are moving forward. pompeo singh today she made me with the north korea team this week. neil: allou for a much, hillary von. military exercises, and senator rand paul was weighing in on the whole issue with me on fox news. take a look. should we have volunteered to go ahead and stop these exercises? >> yeah, because that can easily be restarted at any in time. it shows goodwill. it's nothing permanent. it's not like giving them money and i am not forgiving north koreans any money. i would offer them the allure of

trade with japan and south korea and us an expanded trade with china and the allure of what trade and commerce brings basically to a country. neil: all right, so i think i was rand paul's way of saying i would take a chill pill and freezing military exercises. they can be restarted in a new york minute. is it a big deal? senior fellow, retired lieutenant colonel, daniel davis. what you make of what he's saying not a hugeal suspending these exercises for the time being. >> is absolutely correct. this doesn't diminish and one iota our military capability. the power we can bring to bear and it doesn't diminish our readiness at all because nothings happening to stop our military readiness, military training in the united states. we have such a vast scope and experience of his additional knowledge of how to do the things that some temporary suspension won't do anything.

if that actually gives us some chance to continue to move towards a peace outcome, the da so we should do because that's in our interests. neil: younow, i use the good cop, bad cop analogy to talk about thend putting their best foot forward with the north koreans, but remindi them as secretary of state there is a tescounter to this on michael pompeo saying the north koreans m mak a nuclear disarmament steps by the en the president's first term, going on to say that there uld be in-depth verification and it will be vast. what did. what a jamaica both of those comments? >> the president's most sacred duty as defense of the united states and our security and he does that by continuing to deter north korea and to always make sure that we have the ability to respond to anything and that means avoiding war. that would be the worst outcome for us possible and it's not necessary. i think that's one of the

reasons uses little good cop, bad cop thing to your point because he knows he can afford to walk at any time. we are to have some presidents with defending drills. they drill for the olympics and not resulted in some positive things. if anyone thinks trump will be played, you should already put that to rest. when they made a big squawk last month about drills we were doing, his response was okay, then there's not going to be a summit. president trump doesn't give anything away for free and we can expect is pompeo said some kind of response for them that they'll have to get as well. neil: you know colonel what's weird about this and not to disparage the president does we can pick and choose the leaders with whom we meet. you and i chat on that. this is the guy we are meeting with. it does seem you can be rewarded for bad behavior in the global stage if you promise to clean up your act in all these other countries that tried to do the right thing. they look at what's going on.

nbt blacklist in ms guys murdering his family members, starving his people. he's going to make out okay. >> i'm not saying he's going to make out okay because he's on the cusp of collaing which is onofhe reasons he's pushing for this. neil: again, for all the right reasons. for all the sort of wrong kind of reasons, too. >> the bottom line is the president has to do with what he's got. the overriding concern is to defend her interest in the us to deal with whatever he has good so far he's on the right path for that. neil: another thing, one of the things i discovered china one of the biggest benefactors for north korea don't haveo fork over any dough to help vote the north koreans are fork over any business investment. they don't have to do anything that would get any skin off their height. maybe that will change and while

we are building into this or incentives to give business to come in, building opportunities for north korea. the chinese really back this crazy nutcase. they have nothing to worry about. >> just the hard fact is every nation is going to do what it can to look out for its own national interest. russia is just as much as right here. if the cause of all that is a deeper security for the united states, but the price we may have to pay because our security matters more than all of that. neil: to your point, a lot of a lot of people shouldn't have been talking to the north korean leader. he's the only one we have come at the only one the president could talk to for the time being and knowing second-guessed fdr and stalin was a partner in the fight against adolf hitler here. very different i know. we are not in the game of picking and choosing leaders of other countries. >> as you pointed outcome he was a murderous person at that time in the interest of americans. we havto do th

unfortunately. neil: colonel, thank you very much. good seeing you. in the meantime, at&t time warner merger officially sanctioned by u.s. judge. what happens now? everybody is simply including the parent company of this very network. charlie gasparino, next. today, we're renewing our commitment to you. fixing what went wrong. . it's a new day at wells fargo. but it's a lot like our first day. wells fargo. established 1852. abshed 2018.

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. neil: you know, look what happens. netflix sitting at all-time high. by the environment where content providers and stream, buy it, they're en vogue and goldman sachs out with a target hike it thinks netflix could rise another 100 bucks where a judge okayed at&t and time warner coming together. likely the government could be appealing this. wew what kind of direction that could take, if anyone has an idea, it would be charlie gasparino. what do you know, buddy? >> i want full disclosure, and

how much money you made on this. neil: how much money i made? >> you own welcome to tornado watch box. neil: many do. i disclosed that. >> i disclosed that -- stop with the stupid report. >>ust wanted the world to know. neil: by the way, i want to give this updated. this will be charlie gasparino's final report here, so p attention. [ laughter ] >> go. >> the judge rules with no conditions says a deal should proceed, everybody talking about next deals, including bidd war for us, our entertainment assets. here's what i've been told by senior officials inside the d.o.j. take it for what it's worth. my information is good as of i'd say 8:30 this morning that the justice department, despite the judge's language, don't appeal this ruling, let it stand is mulling an appeal. antitrust officials led by the head of the antitrust division

worked through the night discussing possible appeal, and there are senior officials inside the d.o.j.'s antitrust department that are saying appeal this things are we blame it purely on animus from the judge. we think a new judge could give us a more favorable ruling. we should point out, no decision is made, maybe he'll walk away and say in the end, i can't go there. it's a bridge too far. neil: 120 months? >> that's theogic argument. but i'm telling you that there are people inside at senior levels, inside the antitrust division that are pushing for appeal to go back at this, to set a precedent. they don't like this deal. they don't want comcast getting any bigger because if this ruling stands, comcast is going to put an all-cash bid in for us. neil: they didn't like the blueprint with comcast and nbc universal because comcast didn't do all the things they said it would. >> they wanted to use a possible favorable ruling to go

back at comcast and reimpose, theyere talking about that. obviously, the judge's ruling was a smackdown for the government, they can't use this ruling for that, but that's why th're talking appeal. whether they do it or not, i cas talked to people he wants to do appeal. neil: they have limited time, right? >> they told us, the one comment we got from them after the no comment is will you appeal, no comment. eive day to file. latest they can file is sunday night. neil: in the meantime, comcast is supposed to come forward tomorrow with likely all-cash bid? i'm asking you. >> i think it could be today. the one fly in the ointment would be if the d.o.j. comes back and appeals it, you know, comcast must be sitting there saying, wow, if they're going to appeal this, they're going to fight us tooth and nail to

buy fox a.s., fox's entertainment assets. allows ts to happen, you are going to have major deal-making here. neil: why is disney up if - and comcast is a little up. why is disney up if it's going to have to fork over more to close the deal. >> is comcast up too? i can't do all your work by the way. i'm a little busy. >> you're the leader. neil: right. right. >> i'm the boss. [laughter] >> dr. evil, don't you see this? he's dr. evil. [ laughter ] >> so in other words, this is all still in play. what do you think of netflix and the goldman sachs saying go up 100 bucks easily. >> you know what's interesting about all this stuff, i think what happened was there deal that they approved this deal, what they essentially said, what the judge essentially said, interpreted by investors

is netflix, youtube, amazon, this is the future. this is the future of tv. that actually the at&t-time warner model is the last sort of tryf survival. that the real future is in the youtubel ttoogle has, the model that netix has. neil: talk about guys with a lot of money. google, apple, amazon. >> you can't get netflix without having a cable subscription, right? theoretically. but you only need one, and you don't get the bundles. that's what's great about netflix. neil: can't you get netflix on a device. >> you might be able to, yes, you can. there's ways to evade the -- neil: what kind of stuff do you stream can we repeat it here? >> well. is this a family network? neil: it is, it is. what are the odds of a successful appeal, let alone we're ones who even tried. >> success might be that they

throw s much crap at this deal, the justice department, that randall stephenson says, going to be in court for the rest of my life. that may be what the ending is. for all i know malcom dellerim says we have b fish fry. senior people in the d.o.j., it's more than a theoretical possibility, i would say it's 50-50. neil: thank you very much, charlie gasparino. sean spicer on all of the developments. this all started with the president not really keen on cnn and time warner, of course, includes cnn in list of offerings. so that wasesisor all of this. if you think about it, there are others since the course came up and supposedly argued. spicer on that and so, so much more. stay with us. six in the morning.

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. neil: i'm very happy to have sean spir with us right now. beside being the former white house press secretary, if it were not for mr. spicer, i like to remind people. i don't think fox business would have had a chance to host a presidential debate let alone two. i'm always grateful to him and for his kindness. always good to see you. >> thank u, neil, it was well deserved. you guys did a fantastic job, and i think the result was in the interest of not just republican voters but the american people, how well, you guys did. neil: with fairness, you have a small choir around you, i never forget, that sean. i want to pick your brain on the developments, so many news items going on, including the time warner at&t merger that as you know, your old boss was very much against. i think a lot of it has to do with cnn being part of that. what do you think nouft in fact a judge is effectively approved

it, deste his reservations? >> well, i mean, i don't know what there is to -- it is what it is. the judge has made his ruling and it looks like it's going to move forward. i do thinkhat i understand the president's concerns but i also think that if you look at the constct of this particular deal, if this thing were held up, it would be problematic for a lot of other potential deals out there, in terms of the relationship that the companies have, right? it's one thing to have a monopoly in an area, in this case, they're building blocks, so i think that had it ultimately been blocked, i think it would have created some problems for other mergers going forward. neil:ye thinkou're right and effectively how the judge went down on this. the canadians and ourselves want to patch things up post the nastiness leaving the g7 summit, peter navarro had to

apologize for remarks for justin trudeau, there has to be a special place in hell. canadian officials saying we can work on some of these trade issues going forward. the president has said some pretty nasty things about justin trudeau. what do you think of all that? >> i try to focus on results, neil, and when you look at the communique and what not just prime minister trudeau, but the otr leaders of the g7 said, there is a general agreement that tariffs need to go down. the president won, the president is getting results. a the ende day, we need to highlight the fact, we're not talking about the least developed n looking to grow the economy. ese are the most developed countries. we have a very unlevel playing field. they have almost minimal mar access problems whether it's tariffs or nontariff barriers in the u.s. market and we have rather stiff tariffs in multiple sectors.

neil: when it comes to canada, we run technically a surplus with them. so are we picking on the wrong, far, bigger nastier s.o.b.'s than canada. >> sure, i don't think you can overlook it. remember, the surplus with canada becomes in the services industry of which toursism one of the biggest things. so them just coming over the border, buying goods and stuff, booking vacation, is a large reason for that. they're not exactly. we don't have a surplus because we're shipping huge amounts of manufactured goods or agricultural products. neil: it's the holding together. >> it's not. >> go ahead, i'm sorry, finish. >> i'm not some kd of s experthere, but i do think that you can't treat the normal back and forth of tourism and booking vacations in the same way that you can of having sustained manufacturing. thing i mentioned is our tariff average, everything we have is

3.5%, the canadians 4 1/2%. you are right, there are individual cases like milk and dairy prices and you're right to raise them. i wonder the way the president raises them, it got me thinking of other people h embarrassed that when he were in your capacity, he would do so. jeff sessions, i don't know how he continues on, he shows up for work every day, i don't know why. what do you make of that? >> here's what i make of it. i think that if you brush aside the noise and some of the other distractions and say, is he getting things done or not? that's why i think you see an uptick in approval rating, whether it's economicic or foreign policy, whether it's economic policies or national security policy, the american people are seeingsults, and they're willing to overlook a lot if they're seeing things done. they've had all the talking points, had all the hpy talk. they've had all the promises, they're looking for results. the economy is booming, people are going to work.

the markets are increasing, market is on a rise, good news for retirement accounts and pension plans, safer and safer with isis on the run. potential deal with north korea. and at the end of the day, look at t noise cleared all away from the g7 antics and there's a commitment to lower tariffs on.s.goods. so you may not always agr with the president's tactics, but at the end of the day, you can say he's actually getting results. if he wasn't getting results, i think it would be a different story. they had all the happy talk. neil: was the subject raised, i don't want to be a dog on a bone on an issue that's silly here. makes me wonder why jeff sident backn your day job or wanted to fire him or force sessions to quit on two occasions, sessions did offer to quit. what's the deal? >> that's beyond my scope here. i don't know what exactly the attorney general is thiing or why he' thinkin or what his motivation is. i generally have to believe knowing the attorney general a little during the transition

and the campaign that he's deeply committed to doing what is right and pursuing justice and serving this nation, he's a dedicated public servant. neil: reports that come out in the news organization, maybe the president calls it fake news that the white house is a miserable place to work. do you give those much credence or because they start voting people like the chief of staff john kelly, that's an environment he wants to counter. what do you make of all this? >> i think a lot of that is largely overblown. i worked there for eight months, i don't think i saw- the west wing is a gerally very calm place. you end up reading stories that run counter to the environment they actually work in. is there palace intrigue? back and forth? of course. i don't think it's the level you read in the stories. neil: all right, the president just tweeted, i don't know whether he's watching you. so funny to watch the fake news, especially nbc and cnn, fighting hard to downplay the deal with north korea. 500 days ago they would have

begged for the deal. our country's biggest enemy is the fake news promulgated by fools. what do you think of that? >> i think he's right. look at the historic nature of this agreement, and i get it, we have to trust but verify. there's a lot me to go. actions speak louder than wo whether or notim fires off foreign missiles and commits to a concrete plan to denuclearize the korean peninsula. for right now every american should be cheering on for the present he's had in the past and taking this down. it makes it a safer country and safer world. when you look at the way the mainstream media reacted to it, they looked at the way obama sat down at a baseball game with castro and treated that as azing moment. the president does it can kim, creating a work plan no one thought would happen and they all want to pick it apart. neil: you are right about that. both sides play it.

republicans are all over it. >> no, no, no. neil: the game is silly, right? >> fair enough. there's one thing for one side to go after democrats and question republicans and vice versa. but the president's tweet and your point were how about the mainstream media? supposed to be the fair arbiters talking about the truth and the facts. they've allowed personal opinions get in the way of what happened objectively. neil: well put. >> thank you. neil: sean, you seem much more relaxed, you don't have the twitch, is everything okay? >> very good, very good. [ laughter ] >> i'm kidding. sean spicer, the former white house press secretary. a good egg and he's a big reason we had the opportunities,nek, to be players on the debate stage. we'll have more after this.

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. neil: all right, minutes away from a decision on interest rates, courtesy of the federal reserve. this is the kind of stuff that makes charles payne's day. guy is a genius. charles, you can move your shoulder so i can get all your answers to the exam. you're here now, the consensus on the exam is we're going to get a rate hike. what isn't clear is how many more to come, what the federal reserve will set the stage for. what do you think? >> that's the big question today and, of course jerome powell, every time a new fed

comes in, we're going to find a way to articulate to the public our is better, because when it was greenspan, no one knew, it was like one of the rorschach tests. neil: it's true. >> scratching their heads and bernanke said he would do a better job. wasn't much better than, of course, janet yellen, that was tough, it was like, going to her press conferences were like, when is it over? >> this guy is promising every meeting. >> what's worrying people which makes them think he wants to be more nimble. neil: why? >> typically the major shifts in policy they like to telegraph them. the idea is if i do a press conference every single meeting, giving the opportunity to shift gears quicker. neil: something can happen at every single meeting, usually the one without the press is the one deemed wouldn't be made. trade thing, how is that factoring into this?

>> the beige book reports, they talked about it more. three months ago they never really talked about it, now, at the press conferences, the fomc statement, the beige book, we are seeing more and more where the fed is acknowledging that it's a threat, that it's got business owners anxious. that it's got prices misaligned with where they should be. won't impact the decision, i think more importantly you have the producer price index which is what producers take to make the products we buy coming in stronger than expected and the same thing on the consumer side. once you look at the core, that was relatively benign. the ks when they talked about the symmetrical targeting, in other words, if inflation hits 2%, all hell is goto break loose and derail this economy. and powel is saying, hey, that's not necessarily true. we're okay with it going slightly above for a little bit and slightly below for a little bit. i think the key with him is he

worked on wall street. he's a carlisle guy. he understands markets a lot more -- neil: not an economist. could be in his favor. >> i think it's our favor as a matter of fact. he can relate to real world impacts. how iuld hurt the average person not associated with wall street, not even in the stock market. neil: when you talk to clients and viewers about the market and getting in or staying out, do any of these factors come in, what the fed is doing, what the president is doing on trade, even sitting down with the north koreans? any of that? >> not so much. i feel like the general public is more and more aware particularly to do-it-yourselfers. they had a tough trial and err period. folks watching the show have gone through two stock market crashes and serious housing crash. they've seen the rebounds. yesterday we learned home equity values at all-time high. $15 trillion. we've seen stocks, stocks at

wall street wrote off less than a year ago. restoration hardware is up200% from the 52-week low. people understand these things come back a lot more than t did in the past. they are afraid of the fed. neil: they are afraid of the fed. you are right about that. charles payne, "making money," watch his show and get his insights. we copy them down and take them as ours. we'll have more after this. ♪ with expedia, you can book a flight, hotel, car, and activity... all in one place. ♪ everything you need to go. ♪ expedia® . . they appear out ofow.

my secret visitors. hallucinations and delusions. the unknown parts of living with parkinson's. but only in my mind. over 50% of people with parkinson's will experience hallucinations or delusions during the course of their disease. if your loved one is experiencing these symptoms, talk to your parkinson's specialist. there are treatment oponan help. my visitors should be the ones i want to see. neil: not that far away from federal reserve decision on

interest rates. they are expected to go much. how many they will go up we don't know the rest of the year and details on that and federal reserve chairman thinks about trade wars and other wars. to take you through it adam shapiro wall street is it watch closely for new insight into the health of america's labor market and projections for future economic growth. we'll get a review of summary of economic projections. that is part of today's release. they do that quarterly.

the questions investors have the infamous dot plot. three interest rate increases for the year or four? that is what investors are watching. that implications of that on the economy. ouren ed lawrence as thecisi. he is life at the federal reserve. ed? reporter: the federal reserve says they will raise interest rates quarter of a percentage point between 1.75 to 2%. also in further signaling of a tightening of the money supply the federal reserve will raise interest rates paid on excess reserves and balances to 1.95%. the fed raises primary credit rate to 2.5%. that is a stick up of a quarter of a percent. they believe inflation will be near target level with a strong labor market conditions. federal data shows that household spending is driving some of this, with strong labor market conditions. the fed data sws household spending has picked up. investment is growing strongly.