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respond. consumers planned calling inflation exceptionally high and planning additional rate hikes, i am asking slate stone chief market strategist kenny pulled kari how long jacob asked where he's putting his money right now pretty new energy tax u.s. oil and gas association tim stewart sounds off coming up. but first the hill climbing the gop is making the irs a bogeyman they write this as republicans and rail against the fbi in the wake of the search at mar-a-lago they are hiking the three letter agency irs. glenn kessler tweeted in part yesterday, the gop is preying on people's fear of an audit which is basically neil. house ways and means committee ranking member kevin brady, great to see you. but dig into the inflation reduction act and the notion

that it expanded irs will increase audit and taxes making less than $400,000 a year, the administration says absolutely not bipartisan and nonpartisan committees that review these numbers essentially say it's impossible that it will not impact the low and middle income class. >> your thoughts. >> the democrats claim there are no new irs in this bill but is paired by the media and frankly the big light in this bill but is been debunked treasuries documents, the joint tax committee on fact-based and the bill itself which lays out only 3% of the new funding will go to customer service, the bulk of it goes to enforcement, common sense the congressional budget office point out if there are no new irs agents how do you squeeze $200 billion out of taxpayers, the fact of the matter is treasuries own

documents page 16, last year's treasury plan on how to force people to comply with the tax code lays out 87000 new agents in the joint committee on taxation and the budget office lays out how middle-class families, i called them budget choppers, those who i would see my neighbors at walmart and target and others will face 710,000 additional audits as a result of this bill. it kind of makes sense, more cops, more arrest, were agent josie moore audits. jackie: the notion that the irs is the bogeyman, that may be a superbly inflatable kata. people get is the audits and the taxes go up not the tax bracket per se or percentages but they get to pay more on top of everything else that they pay more for. >> absolutely, you need to look at this in perspective.

i been on the ways and means committee and congress for 26 years. we have jurisdictional irs. for many years the irs would tell you that they believe the tax cheats are farmers and small businesses, politically they have never been able to figure out how to target them but i think plan a the bank surveillance scheme, track transaction of accounts over $600. that did not get across the line so plan b unleashed tens of thousands of new irs agent and the congressional budget office, independent source is satan the billions of dollars will come from the middle class families. jackie: president biden canceling student debt with people defrauded by itt tech. for everyone else the student loan because in the pause. he could forgive student loan debt for millions of americans at a time that administration democrats just continue to

spend. what do you make of this question. >> if you did not like paying off your student, what i told joe biden forces you to pay off somebody else's student debt, that is exactly where he's trying to head. this is not legal. i think ethically it is wrong to force people who have worked their lifetime for their parents to afford college or work to lifetime to pay off their debt to be forced to do this for others who made their own choices, i think the president is desperate and his poll numbers are rock-bottom and are trying desperately to salvage the november election that they're going to fail. a good point on the inflation reduction act, people are buying this. voters in the new poll yesterday said that they believe this bill will make inflation worse or no impact whatsoever on independent voters saying this will make inflation worse than better.

jackie: most people can read between the lines, with respect to forgiving student loans if biden goes down that road people do like freebies, it could help the democrats in the midterms. it could help his poll numbers go up but having said that could be detrimental to the country. the meantime despite these policies yes senate minority leader mitch mcconnell downplayed the chances that the senate will flip in november. he says there's a greater chance for the house but not the se senate. you have messaging like this, the new york times op-ed calling for the republican party at threat to our democracy. how concerned are you about republicans chances in the midterms. the senate is definitely much tighter but given how people feel in the sentiment, there are hopes that the house and senate can turn. >> democrats aren't going to give it to us they are desperate

they will say and do almost anything they will continue this on until november. there is fear mongering by the new york times and other media about republicans but the truth of the matter is i'm confident republicans will take back the house in voters will do that i am hopeful that is the case, everything is so radical almost every american is living in a cruel economy thanks to joe biden and is buckling of the economy and you see rising crime in our state, obviously this military crisis is just cruel frankly interstate and other states are starting to figure this out as republicans we are not taking anything for granted we will end this with a very positive agenda that focuses on families and not on a radical

agenda. jackie: i will add the last cpi report showed fuel prices came down but having said that housing and food cost went up in the inflation reduction act aghast tax that could raise prices and we could see themg o farther from here, congressman farther from here, congressman kevin brady thank you so much record high inflation cutting into consumer spending. kenny polcari is here with a slowing economy and your undrintss next. i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay. i got tai last december. i've spent almost every minute with her since. when i first brought her home, she was eating little brown pieces in a bag and it was just what kind of came recommended. i just always thought, “dog food is dog food” i didn't really piece together that dogs eat food. i better, she was more active,

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jackie: here's a look where market ended the week after retail sales for july came in flat and below expectation. the report showed choppers are indeed paying more at the store, the fed calling it inflation exceptionally high, slate stone wealth chief market strategist kenny polcari. always great to see you, let's start with retail sales, consumers may be pulling back this is been my prediction but as we move past the summer and head into the fall you will see that and it's going to be reflected in corporate profit and companies guiding lower warning as well many tech companies has started slowly

laying off this is the stuff that builds up as we head into the colder months, what do you think? >> i agree 100% to your point we were told that during the earnings season is the cfos and ceos were indicating slowing down and laying people off now we heard in the weeks to come, we heard of these layoffs beginning to happen into your point i think is going to happen more as we move into the fall. >> let's talk about the markets and their reaction. we've seen a pickup in trade we've seen markets move higher in august extensively on the notion that the cpi number came down inflation doesn't look as bad so jerome powell won't have to be as aggressive on rate hikes maybe not three quarters, maybe a half a point in the market likes that but having said it's not moving higher because the fundamentals are improving and that always troubles me. >> i agree and that's going to be the problem because it's

moving higher based on the fact that they convince themselves that the fed is going to slow that an inflation has rolled over and dead. it's not dead were 8.5% year-over-year which is four times more than what the feds target is at 2%. why anyone is talking themselves into the fact that they think the fed is going to start to pull back or pay the is beyond me. do i think this is long in the tooth, i do think it's long in the tooth and i think we will be lower as we move into the end of august into september and october which tend to be seasonally difficult times in the year is entered anyway. >> another cpi number pull back to the 8.5% but many are forecasting gas prices will go up with the tax and inflation reduction act on big oil and gas companies. that is one aspect plus with access spending, the chips act and whatever else is in the inflation reduction act that is not hit the market since the bills have been just signed.

>> yes we've yet to see what the impact of that is going to be. the congressional budget office has come out to say that the inflation reduction bill is going to do anything but reduce inflation, their argument is going to increase inflation, yet nobody on the left wants to admit that or discuss that, they're going to point to the cpi which rolled over weeks before and put it into place in the inflation reduction act as early started to work which is amazing to me. >> let's talk about jerome powell even if he backs off from where expectations were in september. initially before all the spending the expectation he might be aggressive to the end of the year but next year we could see rate cuts again. your thoughts on what the pattern looks like given the balance in the administration has essentially leaned on jerome powell say were to put the pedal to the metal and we will continue to spend, powell, it's

going to be your problem to fix it. >> i think that's exactly what they're saying and i don't think the fed will be able to start cutting recently 23 especially if inflation remains elevated which i think it's going to. i think it's going to turn up again before it ultimately levels off and goes down. i see continued hikes through the end of this year, i see continued hikes to the first half of 2023 and especially if we see inflation kick up even more as a result of the spending package, the fed is going to be in a position to tighten beyond what the market expect is going to happen. i'm continuing to expect there is going to be ahead. jackie: if that happened in your prediction on the rate hikes is correct, i agree. what happens to the housing market that is one of the things that is holding everything up because inventory has been low and they will stay relatively low, some people are forecasting the housing market takes a big hit other saint is going to pull back but stabilized moderately,

your thoughts that plays into the picture here to. >> of course it does that is dependent upon how aggressive the fed has to go. every time the fed raises rates mortgage rates fall. now kissing five and a half, five and three quarters% when they raise by 75 basis points in september mortgage rates will kiss 6% if they continue to raise you will see mortgage rates in the six and a half, seven, seven and a quarter% range and that will put a real cap on housing prices. it has to people cannot afford mortgages at seven or seven and half% with prices where they are. it's going to have to be a fall back instantly areas that of gotten way way out of control other areas that spin out of control, less of will see less of a decline, i do think the housing market is in trouble. if you bought out recently you have to stay in it and the cycle is almost a decade.

>> i think were in for a rebalance lots to follow after labor day, many thanks, always great to see you kenny polcari. thank you. >> thank you. jackie: prices at the pump declining from this year's record size but the democrat change law could spike again. the new taxes should know about next. >> $12 billion in new taxes is in this bill against the fossil fuel industry. they are killing the middle-class and the poor americans in this country with this bill. alright, limu, give me a socket wrench, pliers, and a phone open to libertymutual.com they customize your car insurance, so you only pay for what you need... and a blowtorch. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

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republican lawmakers are saying it will only make it worse because of a revived increase oil they that will be passed along to consumers at the pump. u.s. oil and gas association president tim stewart. we are so glad you could join us to talk about this important topic today. gas prices has retreated bringing relief for americans at the pump but the expectation as a result of the new taxes is that prices will continue to move higher, 16.4 cents a new tax on every barrel of oil. expectation they pass that on to the consumer. >> thank you for having me that is a great point with regards to the inflation reduction act and honestly there is some other things in there beside the visual 16 cents fee per barrel that's going have obvious impact on consumer prices but the long-term residual it is what happened to the federal lands

component in the number of hidden fees and taxes put on the small producers as they go forward in trying to conduct federal leasing. equal if not more concern for the american consumer what is the long-term going to be in all of this thing. >> the administration continues to say tapping the spr has been the right move itself to reduce prices at the pump where as some people say you're depleting the spr without refilling it with have an emergency this could be very problematic in the million barrels a day really hasn't helped out that much. having said that why are they tapping producers, incentivizing them and taxing them to produce more and put more supply on the market. >> a great question we've been asking that we have inground all across the lower 48 the reserve that is 100 times bigger than anything we can put in the strategic petroleum reserve. from the industry's perspective we are waiting to see how the drawdowns start to end in the

middle of october we are waiting to see how much market distortion was actually built into that. if i am the white house economic advisor i would be telling my twitter team to back off because some of those tweets they have been putting out against gas prices are not going to age well there's a great deal of and certainty where the markets are going to go in with the get go up in the fall. jackie: what to oil and gas executives tell you about sentiment in their industry when this is the administration that came in on day one and essentially said we want to put the fossil fuel companies out of business and then responds within inflation reduction act and its massive climate provision to promote green energy and the agenda yet again adding insult to injury when it comes to domestic oil and gas. >> without a doubt in my 30 years and working in this industry the past 18 months is the most difficult climate that

our industry has ever been in. is incredibly difficult. when you come in on day one and you tell the global markets were good to depict the oil and gas industry and do everything to derive them out of business has long-term impacts. to her credit we've responded and we plowed through that. our production is where they were pre-covid which is great news for production for consumers. the sentiment on my members in the u.s. oil gas association is made up across the oil industry but primarily the small independent and family-owned companies. our guys are like the farmers we are price takers there is not a lot we can do about the world market beside get product into the system and never really interesting mix between the bears and the bulls on my side i grew up on a farm and my dad watch the weather religiously and i think my members are doing the exact same thing watching the market religiously. on the bear side oil prices were

where we were in january there is recession fears and china slowdowns, what happens if iranian crew gets dumped in, they are watching that very carefully. oil prices are way they were in january as well. the first half of the year was characterized by supply cuts, supply side constraints. we've caught up to that, eia has showed a large drop in inventories so the bulls are palling the ground saying there's particular upside of this market going forward into the fall. the impact of the petroleum reserve we don't know exactly how that's going to play out. if you start pulling the million barrels the day off the market that will have significant impact. >> you pull it off the market to put it back in the coffers. having said that i applaud the oil and gas industry for ramping up production in this difficult time. but i know more investment a year end a half ago part of me had the industry made more

investments that production could be substantially higher from where it is right now and gas prices would be substantially lower instead of seeing this president go to saudi arabia trying to talk to the opec countries to get their production up. it's very frustrating for some, let's put it that way. my thanks to tim stewart, always good to see you. >> i appreciate it, thank you. jackie: don't go anywhere, more wall street after this. ♪ ♪ ♪ we all need a rock we can rely on. to be strong. to overcome anything. ♪ ♪

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jackie: welcome back maria will be back with the big show next

week. tune into wall street every friday at 7:00 p.m. and catch the 10:00 a.m. sunday morning on fox news channel for "sunday morning futures" she will have exclusive interviews with senator marsha blackburn, virginia lieutenant governor winsome sears, brian nast and senate candidate joseph, start smart every weekday from 6 - 9:00 a.m. eastern with "mornings with maria" on fox business. that will do it for me. thank you for watching. ♪ >> hello i am james freeman and for gerry baker this because the "wall street journal at large". president biden signed the inflation reduction act into law but how will it affect your wallet in your taxes. former vice president pence has a message for the gop over the fbi raid of mar-a-lago, and may not be what republicans want to hear.

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