"friday feedback" questions. send in comments, critiques, send it all. send in fan friday video. record yourself. tell us your name, where you're from, you have got to say you're watching varney and company. you do that, you could see yourself on television, you lucky people. we get lots of people trying out to do it. we leave it, we absolutely love it. time's up, stu, neil it is yours. neil: stuart, thank you very, very much. we're dealing with the same selloff you were. it is pretty bad. the same thing the market was heralding yesterday when the federal reserve hiked interest rates by 3/4 of the same thing it is second-guessing. wait a minute this will lead to a slow down. that knit good news either. be that as it may, whether yesterday reflects reality, what is going on today, the dow at lowest level in a year. not all that far away from bear market territory. s&p 500, nasdaq, are already

there, then some. what is interesting, as well what is going on with oil. what is happening on the energy front. what is interesting there, the notion we're away from the 120-dollar a barrel level. that of course on this idea that things are going to she down with all the rate hikes, then we get news, there is a pretty tight supply of oil, extending to a lot of energy commodities. pretty much not only in this country, but across the globe. that could fight this back and forth where we go with energy prices. add it all up, you have got a lot of selling right now. particularly starting what is happening on the energy front. of course that was complicated, maybe, maybe, raised up a notch or two by an angry letter the president said first to the exxonmobil ceo, by extension to all other energy ceos. they're not liking what he said or the lecture that they think was unfair in what he said. hillary vaughn following all of

that, on capitol hill. hillary? reporter: neil, the white house says there will be consequences for oil companies if they do not do more to get prices down for gas. even though oil company ceos have testified on capitol hill they are not price gouging. they have also said they don't control the price of a barrel of oil. that is set by the global market but the president wants them to just lower prices anyway. >> oil companies, they have oil refineries, they have responsibility to. what they have been doing is taking advantage of the war. we are calling on them to do the right thing, to be patriots here and not to use the war as an excuse or as a reason to not put, to not put out a production, not do the capacity that is needed out there. so that the prices can, so that the prices can come down. reporter: biden administration officials were on the hill today. kate beddingfield, mike

donnelly, talked to house democrats to spin the economic reality americans are facing, convince the public that the president is doing something about it. part of what the president is doing demanding oil companies fix high prices firing off a letter to the top oil companies, at a time of war refinery profit margins well above normal, passed directly on to american families are not acceptable. he put jennifer granholm meeting with oil companies to try to get them to produce more. some democrats threatened to slap a tax on oil companies, maybe whatever lawmakers believe is excessive profits. the top economic advisor under president obama, jason furman says that is not the way to do it. >> if you want to increase oil supply, make it easier and more predictable, oil companies, oil refiners to build capacity in this country. don't think an excess profits tax is the way to encourage, you know more investment and more

supply. reporter: exxonmobil is issuing a reply to the president's letter telling him, that government can promote investment through clear and consistent policy supports u.s. resource development and predictable regular lease sales and streamlined regulatory approval and support for infrastructure such as pipelines. trade groups are responding to president biden's letter saying u.s. refineries right now are already, neil, producing at close to max capacity. neil? neil: all right. thank you very much for that hillary vaughn. to that max capacity argument we dug into this a little bit. most refineries are in indeed set up to process oil imported from abroad. so it is not as if they just open up the spigot, that is a benefit to existing u.s. oil supply or there is more american supply there. they are, sort of retrofitted to the foreign supply that comes in, that has to be reprocessed for american consumers. that aside, much is made of

refinery utilization. it has been reaching a key point this year, actually four different times this year, close to 96%. now again, it is feast or famine with this sort of thing. we wanted to step back, not point political fingers, get an idea what's really going on. for that i want to go to claire chase, mac energy vice president of public governmental affairs. claire, help me out with a couple things the president isn't saying. industry is sitting on fat profits and has no intention of boosting production because of those fat profits and that's what they're going to do, they will buy back stock, they will take it all in. that is their right but what do you think of that argument, that they're not doing more because they're just making money hand over fist? >> well, neil, i think it's really unfortunate the narrative coming out of president biden's white house on this as it has been since he took office, i

mean he wants to come in and say you know this is your fault, you need to boost production while what your white house needs to do, mr. president, what your administration needs to do, is to start letting us drill and with everything that you're doing, withholding federal lease sales, providing that regulatory uncertainty, it has been very difficult for us to invest the capital to, you know, invest in a product that you keep telling us we're not going to need in five to 10 years. it is very difficult to decide hey, we're going to go ahead and spend millions and millions of dollars to invest in oil and gas when you know, every policy that you are putting forward says differently. you know actions always speak louder than words at least where i'm from. neil: that is a fair point. i want to go with what was raised in the letter, claire, indulge me here, help people understand this. much is made of the fact that the industry is sitting on 9,000

purchased leases they have not tapped. what is lost on that argument versus the year before it was almost double that. they have taken advantage where they could. sometimes you come up dry. some of these permits and leases are not what they thought but the industry hangs on to them in the hope eventually you strike gold here. leaving that aside, this argument that the industry could do more, what do you say to that? >> we, we, i say that it is incredibly difficult. you know, like i said for the last year-and-a-half president biden has just been hammering us you know, making it difficult for us to produce the product at every single turn. you talk about refining capacity, the refiners have not been able to open new facilities in years, if not decades. so all of sudden when the chickens are coming home to roost joe biden wants to say, oh, this is the fault of the oil

and gas companies. it absolutely isn't. it is the fault of your policies and the fault of your rhetoric. we can only do so much. as i said on your show before, neil, year-and-a-half ago, we were in negative territory. we were losing oil and gas companies hand over fist. yes we've been able to come back due to some crazy circumstances but it has not been an easy comeback and we have to be smart about how we're doing this. when every single thing we hear from the white house every single day we are transitioning from fossil fuels. we don't need fossil fuels. everybody should buy an electric car, it is really, really hard for companies from the exxonmobils of the world down to companies my size to say, yeah, okay, you know what? we'll take hard-earned dollars we'll put them into this industry that the president is actively trying to shut down at every single turn. neil: i can understand what you're saying. one last thing, claire i will say, again i appreciate your viewpoint. we don't hear that that much

from the anybody in the media, one that gets traction in the media, with all the money oil industry is making they have little reason to want to produce more in this environment because that's expensive in of itself so why not take of advantage of prices where they are and enjoy where they are and take advantage of where they are. what do you say to that? >> well, i would say that we would love to drill more oil to take more advantage of prices where they are. if we could get more oil to market, that's obviously we're going to be making more money in that process and so, we have every incentive to produce. we have every incentive to get out there get drilling rigs up and running to employ the people in our community because you know, when it comes down to it, we will be making money at 115, $120 a barrel of oil. we want to deploy that capital. we want to invest. we just want a white house and a president that provides that regulatory certainty that we need to do it. neil: got it.

they're saying on that, oil at these levels, if you start drilling for more, looking for more production that will increase the supply. the demand will be a constant so the price will go down. so their cynical view is that it is not in your interest, the oil industry's interest to willy-nilly go drilling for oil in this environment because they make more money keeping the supply the way it is rather than increase that supply. so you say what? >> well, i would disagree. yes the price would go down if more supply comes on but we're still making money. really at the end of the day 120-dollar oil is not sustainable. it will come back down. that is the cycle of oil and gas. it is boom and bust. year-and-a-half ago we were negative. now we're at 115. that is a huge swing. neil: fair enough. >> we'll see that again sooner than later i'm sure. neil: we'll watch those swings. claire, i appreciate you taking on a lot of these things this is an argument that the administration presented.

i wanted to get four or five key points they're making to the industry thought of that because the two sides are certainly far apart on this. thank you very much, claire chase of mack energy. get read where this whole argument on inflation is going, signal the white house is sending, and what americans are buying or maybe not buying. steve moore joins us, douglas holtz-eakin as well. doug end it with you. you're former congressional budget director. you know the money that comes in, you know the money that comes out. a lot of people curse the energy industry for making money right now. it hasn't always been that way. that is revenue that makes it to uncle sam. so in a flip sense the money coming in for the oil companies is money that is going out to washington to help with very spending many in the white house want to push. it's a weird kind of a conundrum, is it not? >> i think if you take apart the arguments we heard past couple days, they don't really hang

together in a economic sense. oil companies to have incentive to produce. i think there is no question about that. there is a lot of things in the way of producing from a regulatory standpoint, certainly from the stance of the white house at beginning of this administration, and right now tax revenue is booming. you know the notion somehow these oil companies need to pay their fair share, they lost buckets of money in 2020. they made some money last year. they're making more money this year, they're paying more taxes as a result. i don't really think this is anything other than you know, something we've seen before from an administration demonizing the oil companies at a moment of political heat. it is not particularly imaginative, this will not solve any problems and we've seen this movie before. neil: we've seen it before. i point out asghar gant juan as profits seem to be as percentage of revenues, oil companies are in middle of the pack of companies and profits they're recording. having said that, steve moore,

one of the issues keeps coming up is if the attitude in washington, let's say you're an oil company, and the attitude in washington, whatever flexibility they're hoping to get out of these stocks if anything comes of them, is to produce more oil. you know the environment in washington right now. they don't like guys who produce oil. they don't really like fossil fuels. we heard that from john kerry who said the idea of drilling in this environment was ridiculous. i'm paraphrasing here. if you know that is the attitude, sort of like going to a party where you know you were accidentally invited. you're not going to have a good time, you will want to leave. i'm just wondering if people forget that? you know you're not going to coax the oil companies to do what you like when it is pretty clear you don't like them period. what do you think? >> well, exactly. have people forgotten about the famous debate between trump and biden? remember that one, the second debate they had where donald trump asked joe biden, what is your intention on the

oil companies? and he said he wanted to effectively, i forget the term he used, basically the destroy the oil and gas industry. he appointed a person, luckily was not confirmed, that basically said that she wanted to bankrupt the oil and fast industry. so who wants to invest in ap can, in an industry when you have a president who is extraordinarily hostile. i find it remarkable, i really do, joe biden is now pleading with the oil and gas industry to increase their out put when all he has been saying the last two years, is how damaging oil and gas is because of the climate change fanaticism of his administration. i will tell you this having worked for donald trump, he was all in on american oil and gas. i do believe we would be producing about 3 million more barrels a day if trump were in office rather than biden. that's a lot of money. that is half a billion dollars a day, half a billion dollars a day, roughly we're losing

because of the biden war on american energy. neil: you know, doug, one thing that is pretty clear is that some progressives are pushing to punish the energy companies if they don't do more. whether they do more or not, i get a feeling, certainly from senator bernie sanders if he had his way he would slap a windfall profits tax on these companies. regardless how you feel about oil companies, you start calling whatever the level is that you think is appropriate for a company to make, just be careful because it could be technology next t t could be health care companies that have been making a lot of money through the covid situation and the pandemic. so i'm just wondering, the revenue that a lot of, progress progress -- progressives think they are going to get, it is more than punishment, but a way to dig up more revenue, where do you see this going? >> we've seen this before, neil.

in 1980 we passed a windfall profits tax on the oil companies. revenue never materialized. oil price didn't go down. we lost a lot of supply, six to 8% by some estimates. if issue is high oil prices you need more supply. this logic is backward. if you like to punish people with higher taxes, let's face it they're happy to raise taxes on large american companies, raise taxes on affluent americans even if only the point is to hurt them, then sure that's part of their agenda but that is not going to solve the problem of the average american who is going to the pump and spending 100 bucks to fill their car. and it is not going to get them reelected. they need to start focusing on actual solutions which means increasing supply. if you have a high price problem, the solution is always more supply. for that you need to stop

demonizing industries. you have to lower the regulatory bearer why. i think one of the things that is not being noticed about this administration they had the largest regulatory bill, $200 billion of regulatory costs imposed on american businesses in their first year. that's double the pace of the obama administration which was one of the most intrusive regulators we've ever seen. so they are, they are not laying the groundwork for firms to succeed. they're doing the opposite. we're seeing the result. neil: gentlemen, thank you both very, very much. speaking here the market swoon continues here. we'll follow up a little bit with that because yesterday's relief that maybe the federal reserve was getting ahead of inflation and going to deal with it forthrightly. now a lot of people woke up this morning, by dealing with this pretty aggressively, that means the odds of things slowing down maybe in recession just got stronger as well. you're damned if the you do, damned if you don't and today save two stocks in the dow,

people ain't buying. they're wondering. now we have the dow, lowest in a year, not all that far from bear market territory itself, likely to follow the s&p 500 and nasdaq that have been enconsed in that territory, especially the nasdaq, for quite sometime. we'll have more after this. ♪.

(vo) while you may not be closing on a business deal while taking your mother and daughter on a once-in-a-lifetime adventure — your life is just as unique. your raymond james financial advisor gets to know you, your dreams, and the way you care for those you love. so you can live your life. that's life well planned. another crazy day? of course—you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered.

on-premise and in the cloud. you can run things the way you want —your team, ours or a mix of both. with the nation's largest ip network. from the most innovative company. bring on today with comcast business. powering possibilities.™ (mom allen) verizon just gave us all a brand new iphone 13. (dad allen) we've been customers for years. (dad brown) i thought new phones were for new customers? we got iphone 13s, too. switched to verizon two minutes ago. (mom brown) ours were busted and we still got a shiny new one. (boy brown) check it out! (dad allen) so, wait. everybody gets the same great deal? (mom allen) i think that's the point. (vo) now everyone can get a new iphone 13 on us on america's most reliable 5g network. (allen kid) can i have a phone? (vo) for every customer. current, new, everyone. to show the love.

♪. neil: all right. just call it a sign of the slowing economic times. spotify is slowing hiring by some 25%. the ceo own the wires saying in an email to employees this was necessary given the current environment. now again that is not an outright cut but of course spotify like a lot of technology companies before the downdraft in the market were hiring hand

over fist, any and all workers they could just to keep up the demand for their services. spotify indicating that is going to slow down. when you slow down, the next is to cut jobs. they haven't gotten to that point. it is sign, maybe, maybe, not so appealing transactions or attractions i should say. meanwhile this tech downturn continues. it is unrelenting right now. the nasdaq, dominant home for most, down 450 points. that is not only bear market territory. a lot of those components are down 50% or more. susan li following all of that and what has been happening certainly on the crypto front besides. reporter: neil, you're looking at nasdaq for cryptocurrency prices. biggest loser companywise is at least microstrategy, which has become a bitcoin holding company. you've spoken to michael saylor. his software company gone all in for bitcoin last few years.

microstrategy owns 129,000 bitcoins, they bought them at an average price of $45,000. so if you do the math, microstrategy is a billion dollars in losses and counting there on their bitcoin holdings. there are concerns, in terms how they will pay for an upcoming silvergate margin loan that tesla is going to lose at least nine figures on their 43,000 bitcoins. spent two billion dollars accumulating. jack doors sieve's block, as square, has 8,000 bitcoins. to them that is a loss of $40 million on paper at least. throw in the bitcoin miners, marathon, riot, crypto exchange, coinbase, largest corporate holders of bitcoin. would i argue elon musk is probably the most influential influencers out there. there are risks there, are numerous reports tesla could, not say they will, but could report first loss in three years because of those bitcoin losses

especially coupled with the shanghai covid lockdowns that we've seen over several weeks and months. you have celebrity holders like jake paul, who has been buying bitcoin since he was a teenager, gone all-in on crypto. has put all his money into cryptocurrencies. he lost half a million dollars in the luna stablecoin blow up. other celebrities like nfl stars, aaron rodgers, tom brady lebron has been buying into cryptocurrency. so this fast evaporation when it comes to cryptocurrency prices is worries about fears of contagion and which cop go under next. sentiment was hit by the 40 billion-dollar luna stablecoin wipeout. this week the crypto bank celsius is likely done. crypto hedge fund three arrows liquidating assets quickly to raise cash. we're talking multibill dollar companies and bears are circling. jeffly gun lack says about it

con could fall $10 billion. depends when you bought into bitcoin. in 2019 it was trading at $6,000. that will determine how big your losses are and how big the red ink is on the balance sheet. neil: it does. susan lead, thank you very much for that. big bitcoin enthuse sift, mark cuban is on the wires. we're just getting rid of weaker players. this could be a healthy development. many enthusiasts for cryptocurrency in general echoing the theme, as tough as some players who might be forced out of the market, they themselves could be tough to do, you know via celsius and some of these other have restricted sell orders and the rest. let's go to natalie brunell, podcast host. natalie, i'm wondering if this is overdone, not the selloff but the reaction to the selloff and people saying it's finished, it is over.

if you apply the same logic to the stock market, well it would be finished, it would be over. i'm just wondering what this selloff is telling you? because you think of bitcoin itself, we're down 75% from highs reached, what, back in november, what is going on? >> hi, neil, thanks for having me. we've been down further in other bear markets. i agree with mark cuban. we don't need 19,000 different types of cryptocurrencies. i do think we're seeing flushing of excess in the system, especially with companies and projects in crypto that took on too much leverage. they promised all of these high yields and profits that are really unsustainable when financial conditions tighten. they sort of strapped themselves to the coattails of the bitcoin network. they built on the periphery of bitcoin, they benefit when bitcoin price rises. benefit bitcoin's price in the short term when they have to liquidate when experiments fail. i think there is a bigger picture in play that is more important, that our traditional financial system is based on leverage and credit.

why it is so painful when they try to tighten because the house of cards in every single aspect of the markets it starts to unravel, starts to unwind. the fed is always forced to step in. i think that is ultimately what will happen. who has been investing in crypto, neil? it is young people. when trillions of dollars printed in response to the pandemic, i think that older people, they mostly invested in equities and real estate whereas young people put money into crypto, they feel left behind by the traditional system that created asset bubbles that makes it impossible to afford school and housing. they were looking -- neil: your experience, natalie, in a new way. unlike, losing money in traditional invests for wont of a better term, the exchanges which you trade them allow you to lose your shirt so you can get out. we're not seeing that across the board with those who want to get out of their crypto investments. the celsius problems come to mind. the financial precariousness of

coinbase right now. i think laying off close to one out of five workers. that's a little bit -- is it not? isn't that giving them more pause than would normally be the case in a selloff? >> absolutely. i think there are a lot of painful lessons being learned. there are no bailouts in crypto. this is a very new ecosystem. the rise in crypto is a form of populism, where young people are trying to get a piece of the pie back from the elites. because money flushed out of the system because of tightening, i think it will leave behind anger, some scars, ultimately for a bigger seat at table i think bitcoin will fill the void and need. bitcoin will listen to those voices. bitcoin is the one cryptocurrency is decentralized and can't be manipulated or controlled by any third party. neil: we'll watch it closely. natalie brunell. coin stories podcast host. taking it on the chin.

people say a matter of time before you see dip coin dipping under $20,000 a coin. when you got into this, when you're getting out of this. a lot of people were buying it when it was 10, 20, 30, 40, $50 a coin. $1000 a coin. they made money. then some. many of those could be out of the market now. many bought at the highs last november, december, when we were over $60,000 a coin are getting heads handed to them. how long is anyone's guess. this goes back to the underlying economy, whether the markets telegraphing something worse down the road for that economy. we might see first signs on the housing front, many housing starts dropping by a little more than 14.4%, building permits a sign of future activity down 7%. all of this in the face of higher mortgage rates. these are fannie mae backed rates, on 30 year side are going for 5.75%.

10-year, 4.81%. they have effectively doubled since january. the conventional 30-year with nothing to do with backed by the fha or not, that is closing in on 6 1/2%. but i digress. let's go to mike aubry, executive vice president, mike aubry home group. he knows this industry really really well. mike, good to have you. this fear, that it stumbles upon more fear which breeds still more fear. we get a housing number this week a starts number this week, a permits number that reverses activity we've seen. then these reports of those putting their homes on the market who are already cutting the price of those homes as they just enter the market. what is going on? >> you know, i think that we were sort of at a 45-degree angle about, neil. i think that we were in a non-sustainable market but let me be clear, non sustainable

market that wasn't like it was prior to lehman in the last recession. i think that what's happening right now is we couldn't have rock bottom rates at 2 1/2, 3% forever. i think right now the brakes are being pumped a little bit. they needed to be pumped even with a guy in the industry -- neil: you think it is just a little bit? could it be more? sometimes markets overreact. pendulum can swing either way. what they were getting in the go-go days of real estate, i agree i don't think this is anything akin to the housing melt down over a decade ago. i didn't see any of the crazy buying properties sight unseen, selling them like chips at a coo seen know table. having said that, it was getting frothy. >> agreed. neil: wonder how you would characterize it now? >> i think we're likely going to find balance. i think we're coming back to a more normalized market. fed chair said yesterday he thought that homebuyers need ad reset. i don't know that i agree with

the word reset. i think more normalized is probably the right word. i think we get back to a position where housing equity will be created at more measured growth. more measured pace. people will have opportunities to buy houses where things, because of froth last year made it tough to get houses, especially people competing against institutional investors buying in cash. so i'm actually looking forward to this. one thing i'm concerned about the bottom end of the market where those first-time homebuyers they're in a position are the ones most affected by mortgage interest rates go up. neil: right. >> some will be in a position where they drop out, are not able to buy because of it. neil: we were showing as you were speaking, mike, the homebuilders. as soon as you say, housing starts are off or building permits, a sign of future activity is off as well, people sell them en masse. i'm wondering, given the bear market that a lot of these builders are now steeped in, that is their stock, is that

justified. in other words, or are we overestimating the number of people who won't be able to buy homes or crash in mortgage activity that is down from highs but certainly nothing akin to what we saw after the last meltdown? i mean how do you see this playing out? >> i think this. i think builders still have ptsd from last time, neil. i think a lot of builders didn't make it through the last recession. those who didn't have high cash balances didn't make it through it and they don't exist anymore. because of that, i think even with the fervor, the froth of last year, i think builders have been still very close to eyeing their bottom lines. think that they have not been out building speck homes. even reality at 1.59 seasonally adjusted now we still have much greater demand than we have supply. we should be building 1.9 million units a year. they're just not doing that. neil: that is very interesting. look at numbers now from where

we were at the highs, but where we were two years ago, three years ago. we would die for the numbers that we're seeing now. perspective is everything. mike aubry, thank you very much, mike. i learn a lot. i appreciate that. >> thanks, neil. neil: meantime look at selloff. it is widespread. our charlie brady stocks editor, senior editor, overall smarty pants. he looks at sectors, how they are doing. all are taking it on the chin today. if you look at nearly 4% slide in s&p 500. you look what is happening with the dow with 28 out of 30 stocks. consumer staples are down. utilities are down. real estate we were getting into down. financials are down. industrials are down. what is remarkable thousand degree which energy is down. if you think about it, it all started with energy, right? the idea costs were too, too high. all of a sudden that might be a great investment because at least they're making money. no one is making money on them, at least today, down about 5%,

consumer discretionary stocks, down about 5% information. technology more than 4%, materials. i only go through the 11 or so sectors to show there is no discretion being shown here. investors are saying we hate you all, today we hate you all. we always talk about the capitulation part of investors, point they wake up, you know what? i'm getting tired of all of this. they're not at that point. we don't know what the trigger would be. we don't know whether dow under 30,000 or nasdaq many components have been cut in half, including apples, amazon. apple by the way at a year-low, down more than 3 1/2% today. we don't know what catalyst is for some. what we know better part of valor is to sell and ask questions later. we'll have more after this.

we hit the bike trails every weekend shinges doesn't care. i grow all my own vegetables shingles doesn't care. we've still got the best moves you've ever seen good for you, but shingles doesn't care.

because 1 in 3 people will get shingles, you need protection. but, no matter how healthy you feel, your immune system declines as you age increasing your risk for getting shingles. so, what can protect you? shingrix protects. you can protect yourself from shingles with a vaccine proven to be over 90% effective. shingrix is a vaccine used to prevent shingles in adults 50 years and older. shingrix does not protect everyone and is not for those with severe allergic reactions to its ingredients or to a previous dose. an increased risk of guillain-barré syndrome was observed after getting shingrix. fainting can also happen. the most common side effects are pain, redness, and swelling at the injection site, muscle pain, tiredness, headache, shivering, fever, and upset stomach. ask your pharmacist or doctor about shingrix. shingles doesn't care. but you should.

welcome to your world. your why. what drives you? what do you want to leave behind? that's your why. it's your purpose, and we will work with you every step of the way to achieve it. ♪. neil: all right, elon musk is finally on that phone call, zoom call, i don't know what it is. just sort of reassuring them telling him what is on his mind, whether he is sticking with wanting to purchase the company. all of that stuff. kelly o'grady like a fly on the wall, getting the latest, and what he is telling those workers. kelly, i imagine a good many of them are anxious to put it mildly. what is he saying? reporter: neal, i wish i was a fly on the wall. the town hall is happening right now. i'm sure there is a lot of anxiety in the room. the meeting is in flux, musk

intends to move forward with the takeover. show you what the stock is doing. the market is acting pretty neutral to today's meeting. they were a half a percent in premarket trading. now a percent up. 30% below his 54.20 billion. that will be elephant in the room, analysts think musk is seeking to negotiate the lower price and questioning percentage of fake accounts on the platform. so far elon in the meeting professed a strong bias towards in person work. that is big focal point for twitter employees. remote work is possible for exceptional employees. he brought up the need to rational eyes -- rationalize headcount in related to layoffs. he wants to in user base, wants to get a billion on twitter. at last can tex they were 229 million at quarterly earnings report. this hasn't been asked,

employees at at twit remember keen to ask about his tweeting he can at thisket. that is the theme from spacex employees over that same issue. the virg reported a open letter to the rocket maker is circulating on internal chat system. quote, elon's behavior in the public sphere is frequent sort of distraction and embarassment for us. elon is the face of spacex. every statement he sends is reflects on the company that unfortunate timing for the meeting. ultimately the questions musk is asking are curated and presubmitted. with the fate of the company resting on this but he is known for fireworks. we'll watch the rest of the meeting closely. we'll bring you what cams -- comes out of that of course. neil: when people criticize is etiquette, two words, elon musk and etiquette don't go on the same page. that is fine for him.

he is the world's rich etf man and then some. doing it his own way. some at twitter do not. kelly, thank you very much. good seeing you on this. reporter: of course. neil: kelly o'grady on that. by the way we're mentioning what is it going on with elon musk. he just i proved today across the board price increases in all of his various ev models, anywhere from 2,000 to $3,000. depending on the vehicle, anywhere from four to 5%. remember this is the same guy that said he had a really super bad feeling about the economy where we're going here, whether this is an extension of that, what he is telling workers again with his ongoing threat to terminate about 10% of them, luke lloyd, joins us strategic wealth partners, chief investment strategist. great seeing you. >> you too. neil: we're hearing from the guys using his own stock as currency potentially for this deal on twitter that tough times are ahead. he is addressing them right now

with price increases on some of his models. what do you think? >> yeah. so i mean look, elon musk right now is leveraging his stock to pay for the deal but the question you need to ask is, how long is elon musk going to be around on tesla full time basically oaf the next coming five to 10 years, right? look, people buy tesla specifically because they feel like they're getting a piece of elon musk. look, he is a money-making machine. one of the best innovators and capital allocators of all time. elon musk wants to change the world in many ways, not just evs from tesla. this twitter deal was perfect example of that. he wants to promote freedom of speech, right? as elon grows, innovates he will start stepping away from tesla eventually and focus more on spacex, boring company and neurolink and twitter. i don't think i will ever buy tesla, one day when elon musk backs away a bit the stock will get hammered. i'm not saying that is soon but that is a risk not accounted

for. neil: i wonder too about the future of electric vehicles. much is made, they're still very, very pricey. look they're not as pricey. given rising cost of traditional gas-powered vehicles that gap is closing. there are other headaches when you look at evs where you go to charge them, how long it takes to charge them, where you go on a charge, but we have prices of some more well-known are going. hyundai with a model under 24,000. ford looking at something, f-150 lightning under 40 grand as if that is a steal. in this environment probably is. kia. model close to 68,000. rivian high-end at 72, five. leaving last three or four of those out, if you get this into 20 something neck of the woods, i think ford's ceo was right to

say, that's a game-changer. he thinks it is coming soon. do you? >> i don't think it is coming time soon over next couple years. might be five to 10 years down the road but the way the middle class is getting absolutely crushed right now i don't know if we can afford 25, $30,000 cars five years down the road, right? the middle class right now can barely afford to put 6-dollar a gallon gas in their car right now. people are saving 0% of their money. how can you afford like you mentioned a 58,000-dollar model 3 even if it comes down to 35, 40,000. people will run their cars into the ground. that happens in recessionary environment. the thing that irritates me, neil, joe biden literally called u.s. oil companies said yesterday produce more oil and gasoline but at the same time produce less profits. our president doesn't even understand how our economy works. if those companies don't produce profits, then those companies go out of business and we'll have

no gasoline or oil, gasoline will be 15 bucks a gallon at that point, right? that is the problem right now. we need to fix what is going on right now in the current economy, rather than focusing on buying evs for 35, $40,000 if we can actually make it affordable for people. neil: they have to buy a bicycle at rate we're going. you were ahead of the curve. looking at possibility of a slowdown. calling out right recession when nobody was. i'm wondering how long you see such a recession lasting if it comes to that. >> i think it is probably going to last year, year-and-a-half. people really hurting in the economy. like last time we talked, neil, this will take a year-and-a-half, two years to play out for us to figure all these issues out. if you look back, you know, after the financial crisis in 2008, 2009, this was a complete speculative liquidity bubble. we pumped so much money into the economy from the federal reserve, lowering rates down to zero, cost of borrowing being so

cheap. federal reserve loading trillions of dollars on the balance sheet. federal government pumping $6 trillion into the economy. these things take a long time to figure themselves out. the biggest issue, the thing i'm worried about talking a lot about recently, everyone compares today's times to the 1980s. if you look back to 1981, inflation was 10%, mortgage rates were 16% and cds paid 16% as quell. right now inflation is at 9%, mortgage rates are almost 7%, cd rates, risk-free rate is paying 2%. people are losing so much money right now. compare it back to the 1980s, could put checking savings account back then earn same rate as inflation if not more. neil: you weren't even born back then but i do remember. i do remember. >> i wasn't. i done a lot of research, neil. neil: i lived it. i always remember my dad, he had

one 18% long-term savings account. that was pretty easy money. that is like investing in amazon or apple in the heyday years. that was then. don't know where we're going right now. >> listen i locked in my interest rate at house at 2.6%. i don't think i will get rid of it. i don't think i will see 2% in my lifetime ever again. neil: did i ever tell what my wife and i paid for -- i did. maybe a thousand times. luke lloyd, thank you very much. perspective is everything. we lose sight of that what people call eye-popping rates pale in comparison to what we saw in the '70s, early '80s. again depending on your age, that is why you get a lot of older people, very, very skiddish and nervous because they remember back then. younger people who are just as nervous because they remember what they were getting used to, only a few months ago. both have seen some experiences shattered. by the way we are following on a number of other developments here including where money is going.

gold is a place for good deal of money f in doubt put your money there. agricultural commodities extending winning ways. wheat, barley, what is double-digit advance on the year. that is where money is parked for the time-being. how long is anyone's guess. stay with us. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. ♪♪ i got into debt in college and, no matter how much i paid, it followed me everywhere. so i consolidated it into a low-rate personal loan from sofi. get a personal loan with no fees, low fixed rates, and borrow up to $100k. sofi. get your money right.

millions have made the switch from the big three and borrow up to $100k. to xfinity mobile. that means millions are saving hundreds a year on their wireless bill. and all of those millions are on the nation's most reliable 5g network, with the carrier rated #1 in customer satisfaction. that's a whole lot of happy campers out there. and it's never too late to join them. get $250 off an eligible 5g phone with xfinity mobile. take the savings challenge at xfinitymobile.com/mysavings or visit your xfinity store and talk to our switch squad today. first psoriasis, then psoriatic arthritis. even walking was tough.

i had to do something. i started cosentyx®. cosentyx can help you move, look, and feel better... by treating the multiple symptoms of psoriatic arthritis. don't use if you're allergic to cosentyx. before starting...get checked for tuberculosis. an increased risk of infections some serious... and the lowered ability to fight them may occur. tell your doctor about an infection or symptoms... or if you've had a vaccine or plan to. tell your doctor if your crohn's disease symptoms... develop or worsen. serious allergic reactions may occur. watch me.

neil: all right, not only dicey time for investors but to hear him tell it with a glaring headline, could be tough time for no less than president of the united states quite simply u.s. face as fed riggerred recession that may cost biden a second term. get reaction from california congressman ro khanna. kind enough to join us. congressman, good to see you. the message, you're hearing it a lot for party in party, democrats certainly on the hill and white house these are troubling times and could cost you your jobs. what do you say? >> they are hard times for americans. prices are up. price of gas is up. price of food is up. we need and energitic imaginative response from the white house to tackle prices immediately. two suggestions i have said, ban the export of oil. i'm happy to discuss that more. we can sever u.s. price from the world price. and two is have preemptive

buying. buy things and sell them at subsidized price to americans. both i think would bring prices down. neil: white house doesn't seem to be thinking of either so does this get worse no matter what peoples views are on this. >> here's the problem. i don't think you can just say, let the fed deal with it. first of all the fed was wrong to underestimate inflation. they continued to buy treasury bonds. buying mortgage-backed securities. i'm not sure i would just defer to the fed. secondly the fed, as you know, neil, is a blunt trump. you -- blunt instrument. you raise rates that could trigger recession. my view we need fiscal policy. we always had fiscal policy. fdr had it, nixon had it, carter had it, ford had it. imagine what we can do to lower prices. neil: so far you don't i this the white house is doing that? >> i think they could be doing more. they could be more energetic.

they need to be more imagine tiff. bolder in their approach. neil: got it. love having you on, congressman. i apologize for the brief time with all the breaking market news. we're keeping an eye on that. love to have you back, ro khanna. beautiful state of california. more after this, dow close to 700 points, under 30,000. lowest in a year. ♪ and exposed when performance varies. invesco's s&p 500 equal weight etf, rsp, .. stay in balance with invesco's rsp. who's on it with jardiance? we're managing type 2 diabetes and heart risk. we're hittin' the trails between meetings.

and putting the brakes on fried foods. jardiance is a once-daily pill that...not only lowers a1c, it goes beyond to reduce the risk of cardiovascular death for adults with type 2 diabetes and known heart disease. and jardiance may help you lose some weight. jardiance may cause serious side effects including ketoacidosis that may be fatal, dehydration that can lead to sudden worsening of kidney function and genital yeast or urinary tract infections. a rare, life-threatening bacterial infection in the skin of the perineum could occur. stop taking jardiance and call your doctor right away if you have symptoms of this infection, ketoacidosis or an allergic reaction, and don't take it if you're on dialysis. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. a once-daily pill that goes beyond lowering a1c? we're on it. we're on it with jardiance. ask your doctor about jardiance.

neil: taking a look at the dow, crossing 30,000 after spending a good deal of the day under 30,000, 29,000, something we've not seen in the better part of the year, your lows for the dow, s&p, bear market territory, take another 600 points for the dow to get into that territory. the nasdaq is into that territory down 30%. the dow down 50% or more. we are following develop it on capitol hill to deal with this. depending how far you go with that. we have chuck grassley joining us, he survived a primary battle and the election is on making him the oldest senator,

august serving senator in iowa history, close to american history and if you think the market is bad, well-known market, it is not over so he's coming up as well so we are keeping on top of those developers as is jackie deangelis focusing on these markets and recession fears that they are pretty rampant right now. >> i think they are, the market selloff after that par or you could khaleda relief rally, for rate hike, 3 quarters of a point basically this hangover situation this morning where investors were regretting what they heard from the fed because the market is anticipating steeper hikes to come. that slows the economy. it could cause a recession. that is where we are. the last month the dow is down

7%, the nasdaq and s&p 500 more than 8%, year to date numbers far worse and they show the s&p at the nasdaq and the bear market, every dow component is lower, on the nasdaq some of the darlings have been clobbered. the selloff is across-the-board. these are high-growth companies and indication is growth will slow and jerome powell indicated that. apple down 3%, year to date it shed roughly 26% of its value and then a stock like amazon is down 37% year-to-date, netflix another favorite down 3% today, 71% year to date and meta-down 5%, year to date losing half of its stock price. these plungers don't just impact hedge funds. it is important, they impact

people across-the-board who are invested in pensions, who have 401(k)s. more people close to that retirement age, i can't do it, the hit to my portfolio means i can't retire on time unless something changes. stuart: not changing, thank you very much. another problem we hear a little bit about but we forget the pain is even more pronounced for diesel prices. what is the latest? >> even if you are not filling your car with diesel at the gas station we are all paying 40 eventually, diesel prices are up 80% over last year, the average price per gallon of diesel, $5.78, so high that the shipping company is applying a fuel surcharge to all their deliveries, an extra $250.

last time they applied a fuel surcharge, president jimmy carter was in office. >> the fuel surcharge, the user is getting promoted. >> reporter: gas prices are major driver of inflation, hitting consumers according to the wall street journal higher gasoline prices contributed to 20% of may's 8.6% year-over-year inflation rate, nearly all products are transported aboard trucks at some point. diesel prices in particular passed along to the company as you heard and ultimately to the consumer. it did not anticipate transportation and shipping costs, walmart said fuel costs ran $160 million higher during the first quarter than inspected, amazon making remarks that shipping cost of double for them, monster

beverage blaming the rise in fuel costs. to fill up this truck to get a full tank on diesel last year based on the average price nationwide costs $550 but now will set the company back at thousand. took a lot of money being passed along. neil: it doesn't get better. even companies doing well in the face of these higher prices are looking for a little help and support from the white house, talking the airlines, ceos meeting with the transportation secretary. at issue is how they will handle that demand and more to the point, what government is going to do if it gets out of hand. the latest from grady trimble at o'hare national airport. >> reporter: we don't know what transportation secretary pet buttigieg and the airlines

will talk about but important to note this is just a couple days before the official start of summer and the trump -- summer travel season and a couple weeks before the july 4th holiday and this past memorial day weekend and on previous holiday weekends there were issues with pilot shortages and other airlines causing mass delays and cancellations. so far the solution has been to cut flight routes this summer which several airlines have done or to hire more pilots than ever which the airlines are doing but to not much avail because so many pilots are approaching mandatory retirement age. it is so bad the bureau of labor statistics projects there to be 14,500 commercial pilot offerings each year since 2030. the shortage of pilots is a big part of the reason we've seen mass delays and cancellations

across the country. openings, a lot of the major airlines are hiring from smaller regional carriers but that creates issues at the smaller airports, those regional carriers fly to and from. 32 airports in the us lost 50% of their service since 2019. a lot of regional airports have a handful of flights, they are losing some, some airlines have no flights at all or some airports the smaller ones have no flights at all because airlines have cut back because they don't have the staff and it is not profitable to fly out of them anymore. there has been talk about solutions including reducing flight hours to become a pilot or increasing that mandatory retirement age which is 65 but those are long-term solutions. we are seeing delays and

cancellations and it is expected to get worse as we head into the summer months, you deal with the weather, that creates challenges getting crews where they need to be and it creates this perfect storm of delays and cancellations which we hope relief is on the way but we shall see. neil: thank you for that. the read on all of this, if you can respond, chuck grassley, republican iowa senator running for reelection, if he were to win that contest heavily favored in the polls, he will be 95 years young by the end of another term. >> glad to be with you. neil: they have to retire at 65. do you think they should have to retire at 65? >> i voted to increase it from 60 when it was a few years ago

to 65 and some sort of temporary relief of increasing it the year or two would help a little bit, i would be in favor of it especially when the copilots would be a lot younger. neil: let me ask about the economy and these numbers, we are told the administration is sending to the energy front, open the strategic petroleum reserve, compel energy companies, embarrass them into doing more themselves and if they don't to slap a profit tax on all the money they are making. what do you think? >> gas price increases is all i here at my town meetings. why do we have the big increase in gas prices, the energy policies of this administration, don't build pipelines, don't do drilling, don't do as much fracking, put

more regulations on, don't lends to energy companies, that is why we have this almost doubling of gas prices in one little short while. we went from being energy independent country to being energy dependent country so why should we have the president go to saudi arabia and ask him to send us more oil when we have it right here ourselves and the environmental regulations to clean up the environment and they don't have that in saudi arabia, venezuela, just reverse those policies he put in place almost immediately when he became president of the united states and we will turn this around quickly. neil: while i have you here, gun legislation that democrats and republicans have hammered, a compromise the doesn't seem to win over each side but both sides happy enough with the final product that even mitch mcconnell said he would back

it. would you? >> we have a good start with this framework they call it but there's no way -- i will vote yes or no to so i see the statutory language. we have to read it but i'm hopeful we can do something because it is inconceivable foot we would have these young kids killed in a school when that is the safest place you would send your kids for adult supervision. it is unconscionable we would live through this. i hope i can vote for a bill but i won't know until i read it. neil: good seeing you again. chuck grassley of iowa, still focusing on the corner of wall and broad, the well-known market bear saying things will get more bearish. why he says that after this.

you'll always remember buying your first car. and buying your starter home. or whatever this is. but the things that last a lifetime like happiness, love and confidence... you can't buy those. but you can invest in them. we believe that your investments should work harder for the future you imagine. and that's where our strategic investing approach can help. t. rowe price. invest with confidence. your shipping manager left to “find themself.” leaving you lost.

you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire mamá, growing up... you were so good to me. you worked hard to save for my future. so now... i want to thank you. i started investing with vanguard to help take care of you, like you took care of me. te quiero, mamá. only at vanguard you're more than just an investor you're an owner. helping you take care of the ones you love. that's the value of ownership.

municipal bonds don't usually get the media coverage

the stock market does. in fact, most people don't find them all that exciting. but, if you're looking for the potential for consistent income that's federally tax-free, now is an excellent time to consider municipal bonds from hennion & walsh. if you have at least 10,000 dollars to invest, call and talk with one of our bond specialists at 1-800-217-3217. we'll send you our exclusive bond guide, free. with details about how bonds can be an important part of your portfolio. hennion & walsh has specialized in fixed income and growth solutions for 30 years, and offers high-quality municipal bonds from across the country. they provide the potential for regular income... are federally tax-free... and have historically low risk. call today to request your free bond guide. 1-800-217-3217. that's 1-800-217-3217.

neil: the bear market continues. whatever reprieve we had yesterday is done today, that the federal reserve would get out of inflation which brings a lot of buying yesterday and people reassessing that saying all these rate hikes to come will slow the economy down and bring us a recession, thou, the s&p at the nasdaq swooning, the only up players are walmart, proctor and gamble, down we go in the case of the nasdaq, 33% from its highs, the dow, one% or 2, bear market territory itself, the s&p as well. all of this is playing out as peter and i said, kind enough to join us now. i remember catching an

interview, around christmas time, those are heady days, the market still looking pretty good but you weren't buying it. have you seen enough selling since that makes you think we have done enough? >> interesting you ask that question, i will disappoint you and other viewers who view me as a perennial bear. neil: you are not all the time. >> after interviewing me for 25 or 30 years you know i am not bearish all the time. i have been quite bearish. i'm at an ambivalent point now because longer-term i am still very bearish but shorter-term, we are close to a bottom here. when i say about i emphasize

the word a, because i think we are close to a bottom that could last several weeks if not months, we are not out of the woods, this market longer-term is going to go in my opinion significantly lower but now everyone bearish, no apparent reason to be bullish, a great time to watch the markets go up a bit. neil: what is your definition of short-term if this only goes on a little longer, i want to get to longer-term. >> shorter-term, week or two at the most, let's call to the end of the month, this down move will be over, that is shorter-term, i will give you numbers, i don't think the dow is going to close. if it closes near it i don't

think it will close below 21,005, much more than 3630, i don't think the nasdaq composite will close much below 10,000. we are near those numbers now. there is risk to the downside. neil: what happens after that? >> a rally that will surprise a lot of people, you've got to drive these bears into the woods and say maybe things are not that bad after all. most of them will say once we start to rally thank god that is over with, now back to this bear market. i wish we had time to discuss where we are in the market in comparison to the last 50 or 100 years, this market has not

been undervalued since 1982. people can fire away reasons, technology has changed the nothing has changed in terms of market psychology. that rules the markets. psychology. psychology is very bearish. the fed made that increase in interest rates, nothing can save us now. from that springs market rallies and hope starts to build again. neil: how long does it hold? short-lived though it might be, how long do you see that? >> a chance for it to last into the fall. last time you and i spoke we talked about the significance of labor day and the valued markets. labor day this year, i would

not be surprised to see the market rally into that time zone, the beginning of september from which point i would get out of the way because we are set up for really bad things on the downside. neil: there are a lot of people looking at these levels, still rich market, s&p trading at 15 times. you could still say that is historically pretty high. what are we in for come labor day or shortly thereafter? >> an interesting article. i was looking online and they talked about 6 or 7 different valuation methodologies. the schiller ratio, the buffet indicator. put together those twee 7

valuations, i have never used valuation indicators for market timing. that' s a lost cause. once you start down in earnest as i believe we will do come the fall sometime, here's where they claim it will take time as a percentage to bring us back to the mean, not to undervaluation but mean evaluation. 52%, 68%, 63%. the evaluation methods say, this was a year ago, prices were a little higher, that we require a decline of 62% to bring us to the mean valuation level. that is what we are looking at. neil: that could be 30% at a minimum. >> a lot more than that.

the s&ps -- neil: what do you buy or recommend in an environment like this? we see agriculture benefiting but -- the consistent safe haven, what do you tell them? >> it sounds crazy but how about cash and cash equivalents? interest rates will go up significantly. one of the problems we faced here is the federal reserve has been punitive to people in my age category. they saved their whole lives thinking when i get to be 65 or 70 i will be able to sit back with a few hundred thousand dollars, maybe acutely 500, 600, get those interest rates of 5, 6, 7% a year, good luck

with that in current circumstances, talking about you are lucky if you get 1%, 2% on a safe risk basis. the fed has forced people into making these decisions that bring them into the markets where they are going to get slaughtered. where will i put the money? i believe in diversification but also at this point especially approaching the fall when i think we will get a killer to the downside there is nothing like cash and cash equivalents. neil: in an inflationary environment you are losing money keeping it in cash but your point is you are losing a hell of a lot more to put it in the stock market. what could change that outlook as far as you see right now where you think i overstated the potential of a fall tumble?

>> i don't visualize anything that could change it because of where we stand in the valuation picture. if we miraculously saw that inflation had come down significantly to where was a few years ago you could argue things are not going to be as bannon people not as pressed in terms of their income but i can't. suggest something you think could prevent this from happening? i can't think of anything. neil: nothing the fed can do to get inflation of the controllable do anything to interrupt a recession you definitely see coming. >> you wrapped it up in a nutshell. i could go on and on about why is what other potential reasons are but the fact is the last time this market was undervalued was in 1982.

you could argue all day long there are reasons for is that. we shouldn't go to low valuation levels because there's new technology going on and the expression by the guy in 1929 who said this market has reached levels that will never go down again, no significant decline, that rings the bell loudly and clearly. a lot of people kind of feel that way, we can see 20%, 30% but the -- how are they going to avoid it? have they been successful at that so far? there is nothing the federal reserve can do, they made enough mistakes as it is to grow interest rates which caused a lot of the pain and overvaluation we've seen. neil: it created the bubble

atmosphere. hope you are wrong on this but you have been right about some major waves we've seen. we will see how it plays out. one thing i learned from you in the decades we chatted is this notion that it is different this time. it is never different. that particular time. it is never different. great seeing you again. keep at it. people might not like what you have to say but they will respect the guy saying it. 83 here's young and still going strong and still thinking big. a little more after this. big promises. small promises. cuddly shaped promises. each with a time and a place they've been promised to be. and the people of old dominion never turn away a promise.

or over promise. or make an empty promise. we keep them. a promise is everything to old dominion, because it means everything to you. (vo) while you may not be a pediatric surgeon volunteering your topiary talents at a children's hospital — your life is just as unique. your raymond james financial advisor gets to know you, your passions, and the way you give back. so you can live your life. that's life well planned. (mom allen) verizon just gave us all a brand new iphone 13. (dad allen) we've been customers for years.

(dad brown) i thought new phones were for new customers? we got iphone 13s, too. switched to verizon two minutes ago. (mom brown) ours were busted and we still got a shiny new one. (boy brown) check it out! (dad allen) so, wait. everybody gets the same great deal? (mom allen) i think that's the point. (vo) now everyone can get a new iphone 13 on us on america's most reliable 5g network. (allen kid) can i have a phone? (vo) for every customer. current, new, everyone. to show the love.

neil: the white house on defense, we are headed for recession. the only doubt is how severe it

would be. >> reporter: the white house briefing with the press secretary pushing the president biden is in command of one of the best economies in history but fox news paul show 18% of americans or registered voters believe the president was on the other side of that 82% of registered voters rate the economy poor or fair but here's what the white house is saying. >> we are on track to have the transition to be in that stable growth. >> lowering expectations. >> what do you mean by lowering expectations? >> to expected growth as inflation comes down. >> we had this economic growth, this historic growth because of actions the president, the american rescue plan, the bipartisan infrastructure law as well.

>> the paul asks what the problem is for voters, 90% said gas prices, 80% grocery prices, 80 one said utility costs. ranking member of the house ways and means committee says the rising gas prices and energy prices is directly related to the policies president biden put in place. >> shameless hypocrisy, the war on energy, canceling leases, pipeline and permits, squeezing the financing and trying to raise taxes, they are the reason we have high gas prices. >> reporter: the federal reserve anticipating growth for the next 3 years under 2%, 1.7% this year with slowly rising unemployment rates. neil: thank you, edward lawrence, jackie heinrich, what is happening on the covid front now that we have news that anthony fauci has covid.

what can you tell us? >> we hope he gets well soon, covid is no fun. a lot of testimony in this hearing from doctor fauci, cdc director rochelle wilensky talking about the risk of running out of covid funding and the need for it to survey all covid cases and long covid and to conduct studies to look at vaccine durability and produce vaccines in the future as new strains come out here and abroad but the fireworks in this hearing came from doctor fauci in exchange with his often nemesis in these hearings, senator rand paul talking about boosters for kids. listen. >> aware of any studies that show reduction in hospitalization or death for children to take a booster? >> not enough data has been accumulated to indicate that that is the case. the recommendation made was

based on the assumption if you look at the mortality of children within each of the age groups, 0 to 5, 5 to eleven. >> the only proof to tell children to take a booster as they make antibodies. you are at 5 boosters for people, where' s the proof? >> reporter: fauci is testifying remotely because he has covid. he has been vaccinated and boosted it has miles symptoms, and current vaccines maintain their effectiveness against severe covid 19. he express concern the most eligible children to receive a vaccine have not gotten their initial shots. other notable moments, fauci said there are no plans to stop funding research at the chinese government because they made significant biomedical contributions in research even though it is sometimes

difficult to get information and records out of the chinese government. neil: to put it mildly. thank you for that. focusing on the floods at yellowstone park, a lot of people were planning vacations and told it won't work out. the fox whether correspondent with more from montana. >> reporter: we are standing on the banks of the yellowstone river. the water is very high. the water levels are beginning to go down. the focus goes to processing what has happened, surveying damage and homes that have been flooded after this historic event. the army national guard said they rescued 88 people via helicopter from floodwaters. the city of billings had to shut down because of flooding on the yellowstone river and drinking water supply was temporarily limited. the water treatment plant is back online and residents have access to water but in other

areas, tainted by the flooding, and destroyed an important entry road into yellowstone national park, following the yellowstone river from livingston to the north entrance to the park along the gardiner river. the park service men -- many sections are completely gone and it will take time to rebuild. it is likely roads in the north section of the park will not reopen this season. we spoke to a father and son visiting yellowstone who say they left the park shortly before it washed away and they tell us they feel lucky they got out in time. >> it is a blessing. we had no idea it would turn out to be that calamitous. a blessing. >> the houses got flooding of the road and people got stuck and evacuated, crazy to think about. >> cars and rock slides. we are fortunate. >> reporter: 5 entrances to yellowstone national park main close, the park service had to evacuate 10,000 people because of this flooding.

the park service is evaluating infrastructure inside yellowstone, roadways and other buildings to make sure it is safe for visitors to return once again. neil: thank you for that. in the middle of that mess, in the middle of inflation, we know investors feel they are not happy. how about average americans, even less.

we hit the bike trails every weekend shinges doesn't care. i grow all my own vegetables shingles doesn't care. we've still got the best moves you've ever seen good for you, but shingles doesn't care. because 1 in 3 people will get shingles, you need protection. but, no matter how healthy you feel, your immune system declines as you age increasing your risk for getting shingles. so, what can protect you? shingrix protects. you can protect yourself from shingles with a vaccine proven to be over 90% effective. shingrix is a vaccine used to prevent shingles in adults 50 years and older.

shingrix does not protect everyone and is not for those with severe allergic reactions to its ingredients or to a previous dose. an increased risk of guillain-barré syndrome was observed after getting shingrix. fainting can also happen. the most common side effects are pain, redness, and swelling at the injection site, muscle pain, tiredness, headache, shivering, fever, and upset stomach. ask your pharmacist or doctor about shingrix. shingles doesn't care. but you should. dad, we got this. we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones >> the day you get your clearchoice dental implants makes every day...

a "let's dig in" day... >> mm. >> ...a "chow down" day... a "take a big bite" day... a "perfectly delicious" day... >> mm. [ chuckles ] >> ...a "love my new teeth" day. because your clearchoice day is the day everything is back on the menu. a clearchoice day changes every day. schedule a free consultation.

>> i go to the grocery store like this one. and i cry. because i can't afford the things that i need. it is very hard. we have no say so. it is really an awful situation. >> my partner and i were eating

yogurt and it reduced the yogurt, the size and amount of yogurt in the cup and definitely -- >> nobody likes when prices go up. just saying like everybody else i don't like it. neil: it is one thing to hear investors moan about it but average folks trying to pick up groceries deal with it and as you heard, there will be more on that, people are getting ticked off and don't know why and how it has gotten so bad. jimmy, this is real, when average folks are saying wake up, realize what we are going through, particularly the one person, they shrink down the size of a product, yogurt in his case. what are you doing here? they are angry.

>> i hate to hear that. they tell me i need to eat more yogurt. that hurts me. that hurts me too. i didn't want to eat it but i was told how about a little yogurt? i will suffer on that front too. the shrinkflation thing hurts too. it is like the wonderbra of shopping. you think you are getting a bigger portion than you are, you get it home, take the top off and we've been had. there's a real indifference in this white house to the real time suffering. no other solutions we are hearing is actually going to address anything people are going through now. when you hear them say biden is yelling we are changing people's lives, don't yell about the spending, you are changing people's lives, they were going to retire, they were going to put gas in her car, now they can't. i am a former cabdriver, i know the gas issue really well but i can tell you as a radio host i have a lot of get listeners who sniff gas. what about them?

neil: what is interesting, you always fall back and economists do this all the time, people are still buying and getting things, that is very true but it is the pivoting in what they are buying and how they are buying things that has changed. normally when they are at the pivot base going a cheaper cut of meat or god for bid going vegetarian. that is something that doesn't show up in numbers but eventually it is a prelude to them not buying as much period. that is being lost, the precipice of that. >> when you hear them say they are surprised by a slowdown in economic activity, in what world do people go the prices went up, let's buy more, the height of stupidity. the best example i can give you, don't mean to trivialize this but i feel bad for the contestants on the price is

right because no one can get the price anymore because it goes up every 5 minutes. everywhere we turn, this idea the white house keeps giving us answers like we know this hurts, we know this is hard, we don't want empathy. empathy is a good thing but it doesn't fill up the gas tank and that is the part that drives me crazy. neil: i was wondering about the price is right, do they based on that day? every day is changing but again it only gets worse. there is a big disconnect. we see this happen, it comes through on election day. to they take it out on is anyone's guess but democrats will feel it but i am wondering how disconnected many politicians are to this. >> seems like wildly because there is so much more effort being placed into attributing

blame. the term pollutant price hike drives us crazy, or ultra himaga, that is such a dumb one because when biden tries to bring up amaga, we didn't have these problems, we might have vendor problems, you might not like him but we didn't have a 40 are high in inflation and we could put gas in our car. the gas prices around the block here are so absurd now, my former buddies filling up, i don't believe they list prices, they just you pictures of the romantic things you have to do with the owner of the station to get a gallon. it is bad. neil: it is very bad. i didn't realize that was going on but that tips into another area, great seeing you again and putting a real person's perspective on that. we need to hear that a lot more. in the meantime, the hard times we live in, this is a

90-year-old multinational, it was everything. filed for chapter 11 bankruptcy protection. it is way down by a whole lot of debt, a lot of disruptions in supply chain and unable to address the nonstop surge in costs that are far from the beautiful image it has to make women and a lot of men look beautiful. ugly reality. ♪♪ come sail away with me ♪♪ come sail away ♪♪ come sail away ♪♪ come sail away with me ♪♪ come sail away ♪♪ come sail away ♪♪ come the path is gilded with the potential for rich returns. another crazy day? of course—you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business.

with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want —your team, ours or a mix of both. with the nation's largest ip network. from the most innovative company. bring on today with comcast business. powering possibilities.™

hi, i'm denise. i've lost over 22 pounds with golo in six months and i've kept it off for over a year. i was skeptical about golo in the beginning because i've tried so many different types of diet products before. i've tried detox, i've tried teas, i've tried all different types of pills, so i was skeptical about anything working because it never did. but look what golo has done. look what it has done. i'm in a size 4 pair of pants. go golo. (soft music) psst. girl. you can do better. ok. wow. i'm right here. and you can do better, too. at least with your big name wireless carrier. with xfinity mobile, you can get unlimited for $30 per month on the nation's most reliable 5g network.

they can even save you hundreds a year on your wireless bill, over t-mobile, at&t and verizon. wow. i can do better. yes, you can. i can do better, too. break free from the big three and switch to xfinity mobile. as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.™

neil: if you have had a tough time finding uber driver, so much going on with the protests, the lack of help from uber when it comes to rising health costs, you're indirectly, very directly paying for that but it is not helping or solving the problem. uber stock down under the pressure. christopher raise one of those

drivers, part-time uber and lift driver, popular podcast devoted to this issue, the rideshareguy.com, how are things looking for you and your fellow drivers, the biggest problem of these rising fuel costs. >> right now currently you go to the gas station every time you pump, it is going up higher so it is tough when it comes to what you make on the road versus what you spend on gas. neil: did they help you guys out with gas credit or whatever it is? >> all they give is it is $0.55 per ride. doesn't matter the length or if it is short, long, $0.55 per that goes to drivers. neil: that is less then you are paying. what do your fellow drivers stay -- say or do? >> some drivers are leaving the platform altogether, going to

food delivery, or these shopping apps, you see other people going on only when it is good for them to go on and using different tactics to make money and others are starting to pick it or on the sidelines on certain hours. to get the point across. neil: on the car -- >> some are saying, the gas is so high or inflation. it goes into rideshare. i don't think people are paying attention at least the people i am taking, they might see the cost going up but on the driver- side we don't see any change for that fuel surcharge. they are complaining about the costs or just in general in a general sense.

neil: with a pay these increased costs? they pay them now or pay them double? >> something they should be looking at, the flat rate is something like a mile of distance so some trips, 60 miles away where you are sitting in a large city, there's certain aspects where a little extra is nice and it helps a little bit. at least it did when gas was in april but now it is much more. neil: a little bit more than you are getting now. keep it close, my friend, thank you very much. 732 points. we have more.

what are you recommending for muscle pain? based on clinical data, i recommend salonpas. agreed... my patients like these patches because they work for up to 12 hours, even on moderate pain. salonpas. it's good medicine i had been giving koli kibble. it never looked like real food. with the farmer's dog you can see the pieces of turkey. it smells like actual food. . .

only at vanguard, you're more than just an investor you're an owner. that means that your goals are ours too. and vanguard retirement tools and advice can help you get there. that's the value of ownership. in two seconds, eric will realize (laughs) they're gonna need more space... gotta sell the house. oh... open houses. or, skip the hassles and sell directly to opendoor. wow. get your competitive offer at opendoor.com

neil: all right. help us on the way. charles payne is here now. hey, charles. >> do my best, that's for sure, neil. thanks very much, my friend. i'm charles payne. this is making money. stocks are back in freefall mode after a slew of economic data suggest the economy might already be in recession. investors are crouched bracing for a hard landing. we'll tell you how to make sure your portfolio survives impact. how did powell get so behind the curve? feels like james bullard is the fed defacto leader. larry kudlow with choice words. president biden continuing