spin out their healthcare been asked - business, -- business, they have tens of billions of dollars of legal liabilities. no one knows how to size these things. i don't think it is time for 3m. jack: people thought it was that's it for us.thanks to have a great evening and thanks for watching. >> happened weekend to all. welcome to the program. that handout lyses the week that was and helps position you for the week ahead. i'm maria bartiromo. democrats in denial, the u.s. economy now in recession with two consecutive quarters of economic contraction. president biden saying it doesn't sound like a recession to me while democrats agree to billions more in new spending. andy poser is here.

plus airport flight mayor continuing as a pilot shortage reeks havoc on summertime travel. democratic senators to pushing fines for flight delays and flight cancellations as spirit drops its emergencier talk with frontier striking a deal with jetblue instead. frontier ceo is here in a fox business exclusive to respond to all of this. and china warns president biden not to play with fire over taiwan. hunter biden continues to come under scrutiny over links to a chinese gasoline company. i'm getting reaction from wisconsin senator ron johnson today. but first, here's a look at where the markets ended. a really strong month of july after a week of huge economic developments. the federal reserve hiking interest rates by another 75 basis points and gdp shrinking by 1% in the second quarter bring the u.s. into a recession and the inflation hotter than expected and president biden touts an almost $370 billion

spending plan to combat the climate crisis. joining me right now is the former acting chair of the white house council of economic advisers tyler good speed and andy putzer. gentlemen, good to see you and thank you for being here. tyler, i'll start with you and take a look at the week that was. feds raising rates 75 basis points and all the economic data gdp and taking us into recession and how do you assess the week that was? >> yes, there was a lot going on and a lot to digest. look, i was talking with one of the members of the nber recession dating committee earlier this week. i don't think they'll officially call it a recession, but in my view, they look at depth, duration, and diffusion and the depth of the contraction that we've seen in the first half of this year is actually bigger than the recession in the early 2000s and about the same size as the contraction in the early 1990s and 1969 and '70.

in determines of duration, there's been two quarters and the technical definition of recession and in terms of diffusion, welcome under the hood. we had a contraction in business investment and a contraction in residential investment, a contraction in inventories. we had a contraction last month in industrial production. really the only thing keeping this show on the road is the american consumer and the american consumer is starting to lose confidence, they're starting to flag a bit. they're real incomes are starting to decline. i think that that's going to be a real drag moving forward. >> yeah, it's a important point, andy. i want to get your take on the consumer. you saw some new numbers on friday showing us that employment costs are up for businesses and while consumers are spending, they are going into their savings accounts to pay for essentials like food, fuel, and rent. >> yeah, savings are down.

real income has been down for, you know, over a year now. we've seen wage growth below the inflation rate, which just -- your check is bigger and the amount of money you have to spend is less and the numbers that came out on friday show that real disposable income is the amount of money people have to spend after taxes has affected by inflation, which is what businesses would look at, was again negative. it's negative for the sixth time this year, which is a real downgrade if you're an american business, you're going to be concerned about growing and you're going to be concerned about adding employees because it looks like people just don't have as much money to spend. so the economy as tyler said, we're heading in a bad direction. >> well, i mean, look, what does this look like? how does a recession play out, andy? i know that we've already seen job cuts in portions of the tech sector also. some companies saying we're going to put a pause on any new hiring. what else from a practical

standpoint will you expect as we get further into the year and perhaps continue to see recession their contractions? >> well, a lot of this feeds on itself as you see consumers go negative on spending and consumer sentiment go down as you see the amount of money people have in their wallets go down. they have to spend more at the gas pump or at the grocery store to buy essentials, businesses know that that people running businesses are experiencing the same thing their consumers are experiencing, and you see a less of an inclination to fill open positions, less of an inclination to create new positions. you reduce your ordering, you don't want to build up too much inventory because you don't know if you can sell it. it's almost -- you know, it can become a snowball rolling down a hill if things don't get under control because businesses react when they see consumers react, and that definitely is what's happening in the economy today. >> so when do you expect growth to return, tyler?

>> i -- maria, i think we're looking at 2023 because let's look at components that go into gdp. exports, i mean the rest of the world is pretty week. we had a decent -- weak. we had a decent quarter and the rest of the world is not looking great. inventories there was a big overbuild in 2021 and that's going to be dissipating throughout this year. residential investment is really starting to slow down in a big way, and i don't see that rebounding any time soon. business investment i don't see that recovering in a rising interest rate environment. >> tyler goodspeed, andy pozner, thank you so much. >> senators are pushing to impose big fines on the airlines for delaying or canceling flights, ceo of frontier berry bises -l is here to react to that and a failed attempt with a that and a failed attempt with a merger of spirit ♪ ♪

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well, maria: welcome back. frontier airlines terminating a five month pursuit with merger of spirit airlines this week as spirit got together with jetblue and struck a $3.8 billion deal to merge instead. spirit touting the deal that would create the fifth largest airline in the country. joining me right now in a fox business exclusive is the ceo of frontier airlines barry biffle. thank you for being here this weekend. we so appreciate it. what went wrong? was this south carolina price or something else? why would this not go your way? >> thanks for having us on, maria. the reason why it didn't go our way in the end obviously the spirit shareholders voted to go with the jetblue option and it was kind of a choice of kind of cash versus the ability to participate in the upside of the travel recovery and they chose the cash today, but unfortunately that cash won't be

paid till they consummate a deal. i think that it's disappointing for spirit shareholders in the long run but today maybe they don't feel that way but it's definitely a loss for consumers because they're going to pay more money when the costs go up at spirit and they'll have to pay a lot more for it. maria: and you believe that customers are going to be paying a lot more for the price of a ticket if in fact this deal between jetblue and spirit goes through. why will we see inflation -- the price of airline ticket is already up almost 40% year overyear. you think it'll go even higher? >> well, look, the price of tickets are up for a variety of reasons, but mainly from the price of fuel. with fuel prices where they are, airlines have to pass that straight onto the consumer and so that's a big driver. there's also other inflationary things hitting the industry, but the big thing that's happened is

structurally you have significantly lower capacity than you had in 2019 so you would have expected by now with gdp growth, significantly more capacity and you have constrained capacity leading to more pricing power for the airlines overall and so that's why fares are up and probably going to stay up till you see a relaxation of fuel prices and that's why frontier is so important to consumers and we're disappointed that the deal fell but jp morgan said we were handed keys to the low cost kingdom and 95% of capacity in the unit will have costs 40-90% higher than frontier. if you're a consumer and you want low prices, you'll be coming to frontier and if you're an investor, you'll be looking for growth with someone like us because we're the only one with a clear path to growth. we have no real natural competitor of any size and scale once that deal goes through. maria: so what will you do in terms of getting that scale you were looking for had you gone

with spirit? i mean, are you looking for another deal? >> no, so right now we're focused on organic growth and we are set up in 2023 to grow 30% over 2022. we have the ability over the next four to five years to double our size with our fleet growth and we'll triple our size in the next eight years so we have a lot of organic growth and we look to take advantage of the opportunities i mentioned where again, 95% of the capacity in the u.s. is going to cost 40% higher than ours. consumers should want us to grow so they can have more affordable air travel. maria: i'm glad you mentioned consumers and more affordable air travel because with the growth you're talking about and even the price of a ticket having gone up so much, consumers are not getting much for it. i mean there's been cancellations, pilot shortages. what's the problem with all of this messiness at the airport lately? >> well, there's a lot of different factors. i mean, earlier in the year we

had significant air traffic control disruption that actually hit us as well. i mean, it was probably our single largest challenge back in the spring. a lot of that has subsided and the faa has done a good job of actually marshaling the resources they needed. many of the recent challenges -- i mean, they haven't affected frontier. we were 99% completion over the fourth of july holiday and we've had our best operations in july in our history so we're not in that, but i know that some airlines are having still some staffing challenges that are impacking them and i think they may have overscheduled relative to what they're capabilities were from a staffing perspective and appears it's finally getting under control for most of the airlines but like i said, if you're looking for affordable and reliable travel, it's probably time to come to frontier. maria: well, look, the senate wants you and your colleagues in the industry short term orientation pay for it. they're -- to pay for it and ready to put fines on the industry for all of the cancellations. are you expecting to pay a fine?

>> i would hope not. i think as we understand the issues and look at it, i mean there may be some that clearly overscheduled and knew they overscheduled. i think that maybe they need to look into that. if we want to get down to it and fine everybody involved, there's a lot of people involved. there's airports that have a respondent here in how they manage their dates, there's air traffic control components, airline staffing components so i think if you want to tardive i r divvying up fines, it'll get interesting. what might be more privic is have a -- product is have a conference about the challenges and issues. the pilot shortage is one that can be helped by the government and what actions they take. i think one -- of the things we can do is have a conversation about how do we create the safest trained pilots and i'm not sure we have the right set up for that today.

maria: well, it's a great point to make, barry. thanks very much for making it. we'll see if senator elizabeth warren understands that and we'll be watching and that's quite a growth story for frontier. we'll be watching that as well. thank you, barry. president biden spent two houser on the phone with xi jinping this week and what he failed to bring up with the leader of the communist party of china and the new threat over taiwan. and new evidence that president biden did meet with several of hunter biden's business associates when he was vice president. senator ron johnson says both the doj and fbi tried to cover it up. it up. cover up the dirt on hunter.r.r.

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president biden on the phone for more than two hours with chinese

leader xi jinping this week amid increasingly strained u.s. china relations. xi jinping reportedly warning the president against speaker pelosi's possible upcoming trip to taiwan. telling biden on the call "those who play with fire will perish by it". maria: word on whether biden pushed xi for pushing for decades and the origin of covid-19 that killed millions of americans, tariffs, or ccp trying to spy on the federal reserve among other surveillance campaigns in america. joining me now is wisconsin senator and member of the senate foreign relations and homeland security committees ron johnson. senator, great to see you this weekend and thank you for joining me. i want to get your take or your assessment of the call between joe bide and xi jinping. we have no evidence that joe biden raised the origins of covid-19. we know that all of the circumstantial evidence tells us that covid was leaked from the

wuhan lab, the virology lab and ccp has covered it up and will not allow an investigation into what went on and joe biden spoke with him five times. this was the fifth phone call and hasn't brought it up, why? >> well, maria, unfortunately i think world leaders have pretty accurately assessed joe biden and his administration as being completely weak. just about every action this administration has taken since taking office has weakened this country. opened our boarders, 41 year high inflation, record gasoline prices, embarrassing and dangerous defeat from afghanistan. this is the year 2022 and we don't have enough baby formula to feed our infants. you throw on top of that with the people like chinese leaders, they know exactly to the extent to which joe biden is compromised by hunter biden's financial entanglements around the world. we may know not all the details, but i'm sure the chinese

intelligence knows all the details. i assume, at this point i assume when you see the weakness president biden is displaying to china, he's thoroughly compromised and doesn't feel he can act. maria: well, he's given the ccp everything they want so far in his year and a half in office. it's pretty much the ccp's guy. let's face it, he canceled china initiative, he's considering removing the tariffs on chinese imports. we don't have any pushback whatsoever about the massive amounts of fentanyl that is coming into this country. it's made in china. and of course the covid-19 so do you think that xi jinping and the ccp have something on joe biden and that's why he keeps rolling over for china because he won't call them an adversary, just a competitor. >> i think it's a legitimate concern. it's what senator grassland and i tried to warn america about in

september 2020 when we issued our report showing the vast web of foreign financial entanglements and we certainly saw hunter biden's laptop come through and it's stunning. it's just not shocking but outrage yous that we now learn that the fbi had a scheme to down play any derogatory information on hunter and basically end the investigation. we know the fbi had hunter's computer back in december of 2019. what have they done with it? they certainly were not forthright from us when we were offered that computer. we did our due diligence and went to the fbi. could this be stolen property? is this real? they didn't tell us anything. they buried the story. so, you know, an awful lot -- chuck grassily and i were falsely accused of so lissetteing sis democrat nating information and did that come from inside the fbi to label any derogatory information about hunter as disinformation? i think more and more pieces of

the puzzle are coming into clearer view here, but tell you what we need, first of all, thank you to those fbi inform informants that contacted senator grassly. we need more economist -l blowers in the department of justice, fbi, help agencies. if you're concerned, embarrassed by the corruption of your agency and want to restore integrity and credibility to your federal government agency, you need to come forward because these agent reigns leadings are not coming clean and not being transparent or honest with the american public. maria: and there are real ramifications for the american people being unable to trust the fbi. i mean, you say the fbi intentionally try toddies credit negative information that came out of joe biden's son and that laptop right before the election 2020, this is on top of that whole scheme to come up with this lie that donald trump colluded with russia and the fbi knew, did extensive work on

this, they knew the dossier was fake and told in january of '17, we made it up and it was embellished and they continued to pursue pfizer warrants to spy on trump officials. so what's with the fbi and are you going to investigate the fbi? >> absolutely. i've asked michael horowitz, the department of justice inspector general to give me a call next week. he was out of town and i've written him a number of times for example to investigate the briefing of the fbi gavetous, we didn't ask for it. i knew it would be used to smear us, and it was. there's been corruption, it starts with the editing of james comey's exoneration of hillary clinton and followed through the corruption investigation into russian campaign collusion -- or russia's collusion with the trump campaign, which was completely false, and it's continued to this day. no, we need to clean house of the fbi the christopher ray,

under his leadership, the fbi knew the dossier contained russian investigation and briefed the senate committee and had integrity. we have time and time instances of fbi corruption, but department of justice isn't looking into it and it's certainly not being solved under christopher ray. maria: senator, thank you very much for your leadership. senator ron johnson from wisconsin. my little family is me, aria, and jade.

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we've got another big program in the works for next weekend. tune into wall street every friday night at 7:00 p.m. eastern right here on fox business. and over on the fox news channel, i'll see you at 10:00 a.m. morning, sunday morning on the fox news channel for sunday morning futures. i've got that exclusive interviews this weekend with senator john, john rat cliff, turning point founder charlie

kirk, and miranda divine. live, 10:00 a.m. sunday fox news. start smart every weekday from 6 to 9:00 p.m. eastern for mornings with maria on fox business, we hope you'll start your day with us every weekday. that's it for us here on wall street right now. thanks for being with me. have a great rest of the weekend and i'll see you again next >> hello. this week on the "wall street journal at large". recession, stagflation, the u.s. economy is sliding into a slump. inflation surging and industry rate sliding and housing market is stalling. democrats have a plan to deal with it, higher taxes and green energy subcities. we didn't think so either. tensions with china mounting and