need to bring him outft more often. harry can stay in calais. that does it for us on "fox business tonight." and here tomorrow. you have elizabeth macdonald coming up. liz: the news coming in world leaders at the g7 summit will call for a brand-new w.h.o. investigation into china's coronavirus outbreak. the wuhan lab lee controversy and the acting on the director refuses to say that biden's budget will not fund the wuhan lab and more low back against dr. fauci. he has flip-flopped on all sorts of things including the lab leaks during calls for attacks on him attacks on -- joining us

tonight congressman jason smith and former white house press secretary kayleigh mcenany. "the wall street journal"'s bill mcgurn douglas holtz-eakin fords o'connell and arthur quaid all. jobless benefits have been stolen by criminals. that's more than the size of colorado'sle economy. unemployment front the fourth biggest government covid expenditure. it is triple what was spent on the vaccine. wherere the money ended up the story and the biggest surge in consumer prices in nearly 13 years combined withea all that fraud and 9 million jobs still not filled. all that spells big political trouble for thero biden agenda d now this news coming in breaking news even democratic senators now reject tax hikes on the upper bracket to pay for new infrastructure plan.

a republicans right to mourn that present biden's energy policy will bring us back to the 1970s. less dependent on foreign injury energy and what will present biden's ayuda russian president vladimir putin and at their face-to-face next week after the president killed the exxon pipeline greenlighted rushes pipeline and russian hackers. also tonight a growing trend more and more republican governors and republican state legislators moving to block democrat-controlled cities and their bad policies in order to bring the state's the state's economy's back. the fbi director testified today and what were reported to you last night and what we have been reporting for years the southern border is an epidemic of drugs pouring over with cartel crime spilling over into border

crossings with a new generational hybrid the number of migrants have died trying to maket to the border tripling since october. what will it take for the biden administration to see the need to secure the border? i'm elizabeth macdonald and the -- "the evening edit" starts right now. thanks for joining us. let's get right added with missouri congressman c jason smith. he tells it like it is. what do you think of this new call for another w.h.o. probe into the coronavirus outbreak? >> you know o i mean lives last year when donald trump took office democrats declared a racist and offensive to suggest the wuhan lab was responsible for the coronavirus. scientists like tony fauci said there is no way they could be responsible so so-called fact

checkers said they had conclusively proven it was impossible for them to be responsible and story suggested it might the but now they helped joe biden get elected. what troubling is the biden administration won't close the door on getting more money to the very labs they are investigatingco for leaking the covid-19 virus 600,000 americans liz: we have acting director of the office of management and budget refusing to say whether biden's budget will or will not fund the wuhan lab. let's listen to this. >> can you commit american dollars will never be used to fund such research going forward from this budget? >> i started my career at nih and i would never make that commitment as one who believes

we need to be led by science and we need to wait for this review before we jump to conclusions. liz: hitoi looks like she was avoiding and dodging your question. china's self accredited its own wuhan lab as the basis of virus safety level for. free wuhan lab workers hospitalized in the fall of 2019 with covid like symptoms. why couldn't she answer the question? >> youqu know yesterday when i asked her the question a direct question i just wanted a simple commitment from this administration to ensure that they are protected instead they are protecting china to side with americans. china should be held accountable for the trillions of dollars that the american economy has suffered. it was just ridiculous. liz: the co-author of the

worlds -- "wall street journal" op-ed said there's a one in a billion chance that this virus came from animals. he is saying that there is evidence beyond a reasonable doubt that it came from a lap at dr. fauci has been downplaying that all of last year and he's now flip-flopping and said he's open to that idea and in response to republican demands to resign, let's watch this. >> it's very dangerous chuck because a lot of what you are seeing and attacks on me quite frankly are attacks on science because all of the things i've spoken about consistently from the very beginning have been fundamentally based on science. okay let's show the flip-flopped. here is fauci's flip-flop. one congressman said the only thing consistent about dr. fauci

is his inconsistency. what do you say? >> everything is inconsistent liz. for him to say if you criticize me you are criticizing -- science. that's like me telling people if you criticize a member of congress or the president that means you are criticizing the constitution. give me a break dr. fauci. >> the most overpaid federal -- who makes more money than the present united states and he's never gotten anything right. he said you should wear a mask and you should wear masks and he says the virus came from some kind of crazy animal in china and now came from a lab. the most inconsistent advice we have gotten from the most overpaid federal employee. liz: the thing is that the masks he could have just said two americans listen we need to conserve for hospital workers and instead he saying we don't need them.

behind the scenes he sang i said that because i want to conserve mask for hospital workers. why outsource to china and the u.s. plaza funding in 2014? he admits later on he wasn't monitoring it so why even outsource this dangerous chinese lab to make viruses more accessible. why do that? >> we can't trust china with anything. why would we want to trust them with research of viruses that could come out and infect the entire world which we have found is killed over 600,000 americans. the last thing weee need to do s to continue tobo fund that. liz: congressman jason smith thanks for joining us. back with this former white house secretary kayleigh mcenany. it's great to see you again.

what is your take on a? it feels like dr. fauci is taking the wrong view. he said these never demanded an investigation with the covid-19 outbreak. he never had a hair on fire moment. what is your sense? >> i was in the white house working alongside him and i was very skeptical of what i was hearing from him advocating for a lot down. lock downs had an adverse impact on people's mental health and there's a lot of data to back that up. he was the one who is always citing client laid out study after study showing kids do not spread the virus in the same way and they should be in school ane dr. fauci was saying the opposite. he said the opposite of the well sourced journal articles being placeded on the desk from doctos

got allison finally more than a year later he's changing. liz: is there a data function bureaucracy within the government that's blocking these probes could? "vanity fair" is saying we have senator marsha black or an end senator rubio and tom cotton saying he should be fired or resign. is there that bureaucracy about research inside the government? >> is certainly seems like there could be. i don't have a definitive answer but in 2012 he authored a journal article about research a highly controversial type of research that enhances the power of the virus but he was offering the paper in support of it in 2012 and in 2014 between that date in 2019 giving $600,000 to the wuhan institute of virology. the facts are there that he supported this and 2017 and

president obama said let's do research he never informed the trump white house. there are questions that should be asked and dr. fauci should testify before congress. the liz: he has co-authored that the "washington post" op-ed saying we should. dangerous viruses and laboratories in order to get vaccines. senator john kennedy had a lot to say about this. let's listen to the senator. the.auci needs to cut this is in the out dr. fauci and it's not about his feelings. maybe he ought to get in emotional support pony but we are not debating advanced moves. we are talking about millions of lives. dr. fauci gavepayer money to the wuhan lab for chinese scientists to research

coronaviruses. neither. their fauci nor any of his people can guarantee us the chinese scientists would use that money to do research that wasn't monitor big dr. fauci did monitor the lab also since day one dr. fauci and his expert friends said that virus occurred naturally. it jumped from my back to an intermediate host into human beings. it's been a year. where's the proof and where's the smoking back? liz: where's the smoking back? he speaks in vivid language kayleigh. is the nih blocking any details about how much exactly how much u.s.up money went to this virus research and china? we still not really know.

we are not monitoring or tracking the money. >> we don't i went through this whole process dr. fauci hasn't been forthright. he was dismissing president trump who is pointing to the wuhan institute of her all institute of, rolla g. lapan president trump's pointed to dr. fauci coming out and saying no this occurred naturally and inin his inbox there was a note from a virologist saying i have reason to believe -- and the next day he says keep your cell phone on in attaches data function research. it's all very curious and there's nothing to see here. dr. fauci should explain why his e-mail said something different than what he was saying publicly. liz: kayleigh mcenany we always love having you on. don't be a stranger. just ahead did you seeee this? half of the pandemic job was that this may been stolen by

criminals. that's more than the size of colorado's economy. unemployment fraud the fourth biggest covid government expenditure. we will tell youou where that money may vent about. "the wall street journal"'s bill mcgurn iss up with us next. >> when are americans going to realize that nearly every single government program is written with fraud and i don't carefully are talking about welfare programs or programs in the department of defense fraud is everywhere and it doesn't get reported on the way that it should but this pandemic free-for-all is a complete disaster. (vo) ideas exist inside you, electrify you. they grow from our imagination, but they can't be held back. they want to be set free. to make the world more responsible, and even more incredible. ideas start the future,

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♪. liz: lets with welcome to the show "the wall street journal"'s bill mccarran. i know you saw this axios story that criminals may have stolen as much as half of the unemployment benefits more than a trillion dollars. this was the democrats main vehicle to save the economy expose. we are talking fraudsters from overseas. what is your take on the story? >> i am shocked that a government program would the rife with abuse that tape -- people take advantage of it. the more we look the more we will find similar abuse and also

to programs and part of this is because the effort in a crisis is to get the money out quickly and when you do that of course your controls are less. i'm actually more concerned now with the harm the state is doing by keeping people from going back to work because they rightly conclude it's not going to pay you to go back to work and why should i go? it's another unintended consequence of government intervention and we all act like we are shocked by it that we shouldn't be. liz: i don't think people will ever c stop being shocked at the dollar amounts involved. the worker comeab excuse me the washington state official oversaw washington state benefits program had $650 million in fraud and now she's overseeing the federal program. do they care that this is then a

grounding error. these aren't just nickels and dimes were talking about the fourth biggest covid expenditure triple what was spent on vaccines and almost the size of the economyut of colorado. >> we will never get it back and in the meantime we are not looking at all the other effects of the state program. this is what the economy reallya needs? the stimulus the economy needs is b getting the economy back on track. there are too many people anecdotally who you go to a restaurant and you talk to workers. i have people doing work atrk my house and they can't get parts and things and they say their suppliers don't have enough workers. what you hear is labor shortages and the government doesn't look at what the consequences of what would it be good intentions

means. you just throw a lot of money at it and a lot of that money will go into bad hands. liz: your opinion page ran a bunch of puppets really good stuff and you've been writing terrific stuff to the democrats misread the moment that the american people according to "fox news poll" don't want all this big government spending and they don't like what they see going on in washington increasing by double digits. did they misread the moment. they don't have the mandate and they aren't even giving theow votes to pass the agenda and even democratic senator jon tester said it dawned the upper bracket. your final word? >> i look at it this way. covid-19 politically was very good to joe biden in 2020 two be they anti-trump calm and rational but he came in wanting

to claim nothing had been done and donald trump hadn't succeeded with the vaccine and now theyin are doing other thin. they have to portray themselves and their government actions and bailing out the economy when the economy is starting to recover. i think it's a disaster. liz: a v-shaped recovery when the president took office. bill mcgurn thank you for coming on and we will see you soon. former cbs director douglas holtz-eakin ran the cbo. he's going to talk too us about what wall street is dealing with today the biggest surge in consumer prices in 13 years. combine that with all the fraud we were just talking about a 9 million jobs still not filled spells political trouble for the biden agenda. democratic senators rejecting the news coming in tax hikes for the upper bracket to pay for spending. we have lots of stories for you next. don't go away.

>> i think when they get towards the end of this year we will start to see real serious problems. already wes have lost 160,000 restaurants in the united states and when you drive small businesses out of business you destroy the underbelly of our economy.

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liz: have you checked consumer prices lately clicked their i highest in 13 years and 5% annualized in may. malet's bring cbo director dougs holtz-eakin back with us. where do you come down on this because deutsche bank projects and inflation time bomb stocks or shortness of the people on wall street see inflation as a temperate problem and as well as stocks. what do you think? >> first i think thisto report s worse than that 5% then this number indicates. food and energy was up at its fastest rate since 1992 and a shown a sharp acceleration but we saw prices up over 10% in may a little under 7% or 9% in april. we have got some real inflation pressure in the united states. it will sustain the two things happen number one you have upward pressure on prices and

that's starting to happen with wages up 9% in may 7% in april and then maybe more policy mistakes. one big mistake d we continue, don't see a fed is panicking about what's going on and talking about moving quickly so are not poised to randomly cut this off and there's no evidence that anyone in capitol hill the spending and not repeat the same spending following programs we have seen so far. if you put that together is hard not to see where the deutsche bank folks landed sustained inflation not a temporary boost. liz:z: so you are saying inflatn is coming full on, full force and chipotle is raising menu prices 4% to cover the rising cost of labor because america isn't coming backns to work they say because of jobless benefits. that's seems to be ain growing trend for businesses. what's really interesting doug

the federal reserve says the fed should keep interest of true love until we get sustained growth. the biden budgets as growth will be less than 2% at 1.9%. we will have really low rates for a long time right? >> they will stay loose for a long time and most importantly they are not going to preemptively cut off anticipated inflation and that means they are set up for an inflationary surprise. theyey are wrong and this is in temporary and we have allowed 18 months and still rising they don't have a good way in that framework to move. they have to lay the groundwork and it t will have to tighten. i think it's a real risk from the upside. i didn't think this two months ago. this has developed very quickly in my view and one of the real things that makes meng nervous s the fed says rates are well

anchored and they are not. they are going up rapidly. liz: inflation comes on rapidly and hyperinflation is up and it's a rapid event like it torpedoed down the chimney but they are sorted this kind is sanguine attitudeow towards spending from the elephant gun that the wide administration's pointing. ken fischer a wall street process we have done the 16 times all the spending. 16 timeses since 1971 and we ony had 1.7 or send average gdp growth so we've been here time and again since the 70s. why are we learning the message? >> well i really think we have misdiagnosed at this time. the conventional playbooks is throw money at the economy and

consumers don't have money to spend and you have to stimulate that newew hand. consumers had to trillion dollars the that they didn't spend because there was a virus out there and they didn't want to be exposed to it. they had tons of spending power. the federal government had 1.9 trillion in march. there is no problem1. out theren terms of the amount of capacity to spend. the problems are on the supply-side and we will get inflation. liz: doug holtz-eakin thanks for joining us. up next texas attorney ken paxton is fired up and ready to go. pn 22 other states have been suing the biden administration over the keystone xl pipeline decisione to shut it down by the president. republicans are talking about presidentus biden is bringing us back to the future in the 1970s making the u.s. once again dependent on tour and

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liz: joining us now attorney general ken paxton it's great to have you back on. the canadian company behind the keystone xl pipeline officially

told the plug on it and the president canceled that the first day in office. you are seeing texas along with 22 other states are suing the biden administration over that decision 11,000 jobs lost nationwide. what is happening with these group's now? >> we are in federal court waiting for our day in court and we have made the argument that obama had 60 days to argue when he was president that this was not in the national interest and he never did that. when president trump came into office and got it going he was doing so under federal law and president biden didn't have federal authority to stop the pipeline. liz: people in the energy industry are kind of looking at this curiously because this seems like grandstanding by the biden administration. there are 36 pipeline companies throughout the u.s. with 2.5 million miles of pipeline

running across from coast to coast and now we have protesters trying to shut down the andrew to pipeline in michigan and the mission government wants to seize the profits of that canadian pipeline. they are saying we will continue ahead so is this a lot of grandstanding given how many types are in the u.s.? >> it is grandstanding and there is no benefit to shutting it down. he lose energy independence and lose jobs. now they have to ship it by railroad which is much less firmly to the environment than the pipeline so there is no upside. it doesn't even benefit them so it doesn't make sense. liz: are we going back to the 1970s era energy policy? said republicans are saying that

biden is bringing us back to it. is that a real thing? >> sadly it looks like it. we just had that energy crunch on the east coast a few months ago with gas prices a soaring ad we could have that with the keystone pipeline. the reality is energy demands increase worldwide and we will need that. biden is aligning that with putin and allowing them to have their pipeline and what it disasters choice that is to allow them to have a pipeline and stop americans to having access to energy and a less costly fuel. liz: russia china and iran are going full bore on their fossil fuel energy project including coal. so with the president meeting with vladimir putin at your biden green lights the pipeline

into germany and the u.s. is biggest pipeline the colonial pipeline so what position do we have with russia? we became energy independence for the first time in states like texas montana and energy producers. they were creating jobs and wealth for americans and now we are going back to the carter days. we have to rely on countries that are particularly friendly to us. i'm pretty concerned about that. liz: ken paxton it's good to see you. coming up ford o'connell a growing new trend more and more republican governors and republican state legislatures moving to stop democrat-controlled cities inside their states and their bad policies. we will explain next.

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if you have certain abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. tell your doctor about any changes in medicines you're taking. the most common side effects are swelling of the arms and legs and confusion. we spoke up and it made all the difference. ask your healthcare provider about nuplazid. liz: lets welcome to the show republican strategists fordd o'connell. there'sew this new trend of growing number of republican governors and legislatures are pushing back and overriding democratic run cities on everything from lockdowns to voting rolls to defunding the police. we have seen that in florida georgia texas montana wisconsin pennsylvania and michigan. is this going to take hold? >> will look traditionally gop governors have decided to allow local governments to have control over local issues.

that's been exacerbated by the pandemic and now you were seeing republican governors push mayors aside and say let the policies you're putting forward the far left policies with its defunding the police are arbitrary lockdowns is not only hurting public safety in your city that is hurting our entire state and the economic livelihood. i see this trend continuing. liz: we have an interesting development happening outside of atlanta georgia with the town. they are saying we want to split away from atlanta. we want to have our own police force because we are seeing atlanta crime skyrocketing. you are talking about a 63% in treason murder and assaults are up about one third. we are seeing local parent thing we do want to have anything to dore with the cities. >> that's exactly right and when you talk about public safety the

year-over-year crime increases and we have seen it in atlanta and the other in understaffed resources atlanta police department has. it'ses no wonder a suburb like bucket wants to break away and have own police department but if republicans take back the house in 2022 it's going to be largely because public safety and the fact that democrats. particularly in these major cities have turned a blind eye. just so we are clear out of the 50 states only 27 have a republican governor and believe it or not the top 30 cities in this country only three have republican mayors. you will continue to see this jostling between public -- republican and democratic policies. liz: the double whammy lockdown policies and defunding the police near singer wisconsin republican legislature saying there to the city you'd defund the police we will defund you and that's what happened in texas. it's two big things that are pushing t this. are there other things? >> well i think there are two

big things pushing this. whenever you threaten someone's public safety the voters pay attention. they don't care about which party if they think you are going to better protect them but you have economic livelihoods in the mice home state of florida we have another issueom and that is critical race theory. republican state legislature pushing back against democratically-controlled towns including broward county andnd these are fights that will continue and it's not just about economic livelihood but it will go to how we control the ballot box. i don't expect it to stop anytime soon. liz: easy major fights breaking out at the school board level and the school boards think they have this monolithic holding control over what students will be taught and parents are coming on strong. former house speaker newt gingrich planned what he says is a new generation of far left democrats. he says they actually have

contempt for the constitution. let's get your reaction to this. watch. >> whether it's blocking churches from having sessions were dictating to people saying which businesses can open up or what schools can open up. there's something about being a liberal democrat that just loves power and it's an addiction. they loved the in charge and they love frankly corruption. so they use their power to award their friends and punish their enemies and to take care of their families and to take care of their political supporters. i think this is the largest breakdown of the u.s. constitution in the nations history not counting the civil war. liz: you know if you stand in the echo chamber of the d.c. media and the newc. york beltway and you try to ring up what newt gingrich said he will get your

head chopped off. what he is saying is what a lott of people a lot of folks are agreeing with across the country. there is a disdain for how the country has been run for centuries. >> look speaker gingrich is spot on. we look at progressive democrats they see the constitution is only a suggestion and they don't care about your civil rights are your individual liberties. what they care about is basically their agenda in achieving power and control. this is why we talk about socialism. they believe the government knows best in humans can make choices for themselves and therefore side with the constitution you are on the wrong side of history. this sad day for i came our public here in the u.s.. liz: ford o'connell thanks for joining us bridge is to head national border patrol fbi director testified today to what we have been reporting to you the southern border is a crime simply so pretty called it a quote epidemic of drugs pouring

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>> thehe numbers that we saw starting in march are simply unprecedented especially the jump that we saw and applying that we saw. liz: that was the top hhs official testifying on the staggering number of illegal order crossers coming into the u.s.. this t fiscal year in her pursea size of nebraska. joining us border patrol council vice president arthur cueto. that official says that but then avwe have the present vice president not yet going to the border showing critics say they are being tone and not touch. the vice president laughing it off multiple times when she visits the border since the beginning of the year. what's going on here with hhs saying that but then you have that reaction out of the white house?

>> the individual that's talking about it is absolutely correct. i don't know what's going on at the white house. i wish i had the answers but simply put it looks like they do not care. ie. will add to those numbers we have a huge amount of -- as much as possible and those are numbers that we don't know what the number is but historically it's been more. right now we are looking at 226,000 so if you start adding those numbers we are past trying to figure out if we will call it a crisis. it's chaos mode and it appears the leadership at the white house now not only doesn't care but they may not have a clue. liz: i've seen numbers all over the map tens of thousands. the media finally covering the border harder than they have ever covered it before. the number of migrants that it died trying to make it to the

border is tripled since october and thousands die every year trying to make the 2300-mile trek. that's the problem. border crossings at more than 180,000 in may 8 times what it was in may of 2020. they are responding to one fatality week in the rio grande sector so that's the thing. it seems like the media are waking up. seeing that they haven't evenn hit the peak points. the summer much a coming up and i can tell you in arizona the summer months have been notorious with the amountee of 1 calls so what a lot of these calls to and the cartel know exactly what they are doing. they are removing agents from those positions so they can bring the drugs across and now that the summer months are coming because theyngw know the heat is tremendous they will send individuals to pretty much zones where they know they might not take it. ttheir forced to call 911 so

agents are being moved to that area and at the same time once again the drug cartels take advantage by drinking -- bringing drugs into the u.s.. liz: on "the evening edit" we've been covering this for five years that this is what the mexican t drug cartels are doin. they are purposely flooding the zone with unaccompanied children to pull border patrol away and distract them so they can flood the zone with drugs. let's watch fbi director christopher wray testify in he says it's an epidemic of drugs yet crime is swarming across the border. watch this. >> absolutely agree the security situation at the southwest border is of great concern both from a perspective of drug trafficking human trafficking and violence on both sides of the border, corruption etc. but make no mistake this goes beyond

law enforcement to other agencies and frankly the community as well. there is no question that the cartel activity on the other side of the border is spilling over andnd all sorts of ways and you just put your finger directly on one that is extremely concerning to us all. liz: you know what i feel like i'm in a dull jar. when aree- they going to answer the wake-up call that's been ringing off the hook for the ride andus administration do something about this because people are getting killed. this again is a humanitarian issue. you and i talk about this. we don't want another person killed or assaulted on the way to the border or another criminal gang exploiting the border. how bad is that? >> this administration right now is solely responsible for every single death that comes to thatl order. they are responsible for filling the cartel pockets with money or the border is being flooded with

illegal aliens coming through withed unaccompanied juveniles d drug smugglers with sex trafficking and this administration is doing absolutely nothing about it but encouraging to us. liz:ig thank you for joining us. i'm elizabeth macdonald then you've been watching "the evening edit." that does it for us. thanks for watching. hope you have a good evening and join us again tomorrow night. ♪. larry: hello, everyone, welcome to "kudlow." i'm larry kudlow. today, big, very big inflation report. it is all the news and all the rage. here comes inflation. .6 of a percent in may. 8. had 4% at annual rate last three months. the fed's target used to be two. what we had for