stuart: good morning, everyone. welcome to the show. it is monday, well, no, backtrack a little bit. monday and tuesday, stocks went straight up, big smiles after september's losses. i'm afraid to say it's a rather different story this wednesday morning. interest rates up, stocks down. first of all interest interest rates the yield on the 10 year treasury went below 3.6% yesterday. now it's above or right at 3.7% doesn't sound like much, but in the bond market, that is an earthquake. stocks down today, look at the

dow industrials off maybe 300 points at the open, nasdaq maybe down 130, but this follows huge gains in the last two days. bitcoin, $20,000 per coin and energy and energy prices, huge stories this morning. opec plus dana perino its meeting in vienna about an hour ago in the middle of a war and a global energy crisis they're talking about cutting oil production, just to raise prices embarrassment for president biden, he's taking the country from energy independence to energy dependence on opec. the price of gas keeps going up look at this , 3.83 is the national average for regular and that's up $0.03 overnight. western states suffering, and gas above five bucks a gallon in nevada, oregon, washington, and its gone all the way up to 6.42 in california. president biden goes to florida today. he's going to see the hurricane damage firsthand. he will meet his political rival

governor desantis. that will be an interesting meeting especially now that we find three of the four people arrested for looting were illegal migrants. has there been a single day when elon musk doesn't make a headline? well, top of mind today. he's caved. he now wants to buy twitter for $54.20 per share. twitter stock at 51. what's he going to do with it? does he really want it? i think he's like a kid fresh out of college with a $200 billion trust fund watching the richest person in the world throwing his money around is truly fascinating and so is this he did it. aaron judge is now the american league's single season home run leader. he hit number 62 in texas last night. his mom was there to see him do it. i've got to tell you this. our colleague, will cain, lives in texas. he was at the game but when judge hit number 62, will had left his seat to get food. he missed it. he will never live it down.

wednesday, october 5, 2022 "varney" & company is about to begin. ♪ here i go again on my own, going down the only road i've ever known ♪ stuart: good song, look at sixth avenue in new york. it's raining. lauren: wipe off that lens. stuart: three days worth of rain here. yeah, wipe the lens, please. let's get serious. i just suggested that elon musk is like a kid out of college with a $200 billion trust fund. he is the richest guy in the world, and he's buying twitter at the original offer price of 54.20. good morning, lauren. i don't think he really wants his new toy. lauren: that was a lot of drama for nothing right? we're back at square one where we were in april. what does he do with it? that's the biggest problem. he's got many other companies

that actually try to change the world, right? robots, tesla, electric vehicles what do you do with twitter? and how do you monetize whatever , if you make it a super app like he's suggesting how do you make money off of that? stuart: he wants to get to a billion twitter users. i don't know when, what's his timeframe but that's what he wants. that's how you monetize isn't it lauren: i guess, but he talks about china's we chat, you could use it socially, use it to do messaging and make payments on it but i'm not sure that makes much money either and also he's not he-man. he's human. he's subjected to the same 24 hours as you and me, and he does a lot more in those 24 hours, but where is he going to find the time to revamp and make money off of twitter? stuart: fair point. lauren: he has to start delegat ing whether it's to twitter or other companies. stuart: i think he caved because it's the best of all options. if he had gone through with it he be in court standing in the

dock so to speak, answering questions. they would reveal about these bots which may or may not go his way. he just cut his losses. lauren: twitter had the upper hand legally. that's what everything as his court case went on was showing and elon musk was supposed to be deposed tomorrow and friday. he didn't want to set himself up for that. stuart: exactly. lauren: he thought he could lower the price, as did we. stuart: look, we're going to have a lot more on this. lauren: months later same price. stuart: this could affect the mid-terms if trump gets back on twitter which i think he's highly unlikely in the next 33 days okay thanks lauren. move on check futures on the downside after yesterday's big win. eddie ghabour is here. all right, eddie you're the man of the hour. are you still not buying? >> stuart, we've stayed very patient. make no mistake, we think this market between now and the first half of next year has at least another 15% to the downside; however, because we did not just buy and hold this

year, we've raised a lot of cash. we're now sitting at over 70% cash in our tactical strategy. if we get a pullback in the next two weeks which is what we expect, because we think the cpi data comes in hot, and the job numbers are going to stay hot which is going to pour cold water on this fed pivot that's not going to happen, we think we'll have another downdraft. we will put some of that cash to work as a short-term trade. we're going to buy healthcare, staples and treasuries, because we think the back half of october and going into the election, because it is seasonality and the oversold conditions, we could get a bounce. we have the luxury of doing this because of how we have positioned our clients. now if you're fully invested and you've lost 20 or 30% of your capital, it's probably a dangerous thing to try. stuart: you think that when the cpi number comes out i believe it's next week, and the jobs number on friday, that will stop any talk of the fed pivoting? you're hanging your hat on those two items right? >> absolutely. not only that, but they've told

us they aren't going to pivot. that's the only thing the bulls continue to hang their hat on is the fed is going to pivot but let's think about this. if they were to pivot, asset prices go through the roof, commodities go through the roof, the market will go through the roof and now you got the inflation that they are trying to keep down, right back to where it is a problem so asset prices going up is the last thing the fed wants, so they are in a lose-lose situation. they are going to continue to tighten until this thing breaks and then have to come in and save the day next year. stuart: bottom line, eddie ghabour is still not buying, still looking for new lows. eddie, thanks for being with us all this year. you've done very well we appreciate it. >> thank you. stuart: all right, let's get to politics. the mid-terms are what, 33 days away. lawrence jones is with us, actually, he's checking out voters at a diner in tucson, arizona. lawrence, i'm betting that inflation is the big issue there , especially with gas in arizona now at 4.51 a gallon.

lawrence: yeah, good morning, brother. there's a couple things facing the folks of arizona but a lot of people are asking why are you in arizona starting at 2:30 a.m. local time. as you know, stu, it's about 6:00 local time here, and when i'm talking to people they named numerous amount of issues, inflation you are right is the top issue for the folks here the business owners here was making, taking me through the list of products. when you look at the price of eggs, up triple the price, when you look at the price of bacon, it's double the price. you've got a basic bacon and egg plate that was $5 and now it's $ 7. i think you could say inflation is hitting them, but you can not not discuss the border and not discuss arizona as well. so that's a big issue for them as well but again it's the kitchen table issues, the things that matter most to them. not the identity politics, that's what i heard from the people of arizona today, stu

stuart: how angry, if angry they are, are the people in that din er in tucson because you're about an hour north of the border. are they really angry about this lawrence: yeah. well, not just angry, they are disappointed. this is a swing state, so you have a lot of moderate voters. they just want what's best for the country, what's best for their state, and when you have an administration that is not allowing just only the legal s to come across the border but the fentanyl and we know it's killing young people in every state, i think they are pretty upset about that and they just want the situation to change. when you look at my whole state of texas, it often gets a lot of the attention. you'll see the piles of materials once there to build the fencing and the wall there. i just heard from a border patrol source in arizona that that material that was once sitting outside in arizona is being sold off as surplus, so it

just begs the question, does the administration really care about this issue? i tell you who does care, the democrats that are running in this state. they want to appear more moderate on the issue. they want to act like they are for some type of border security but when you look at their voting record, it tells a much different story, stu. stuart: very interesting. all right, lawrence, thanks for joining us. have fun at 6:00 in the morning in tucson, arizona. see you later. let's get back to new york. the governor here, kathy hochul, calling on the feds, to help with the influx of migrants to her state. what does she want? lauren: she wants help. listen in. >> we're working with the federal government as well. i've raised this with the white house, that this calls for a federal solution. let's look at federal facilities , federal staff to help supplement the city and the state is doing the same, trying to lend our support in site selections and making sure that this does not get out of control, that we can manage this with the scale we have right now but also continuing to

call on the white house to give us a hand. stuart: hope this doesn't get out of control? lauren: new york can't manage 15,000, martha's vineyard can't manage 50 so new york finally got a dose of what texas and arizona have been experiencing and you hear her crying out for money for resources for attention from the federal government but nothing on the root cause. close the border. stuart: not a word about closing the border or even controlling it. lauren: nothing for a solution. stuart: she's up for re-election lauren: it's frustrating. stuart: check those futures, please. we've got 19 minutes to go and i see red right there, down 300 for the dow, 150 on the nasdaq. president biden took credit for falling gas prices. is he to blame for prices rising the white house says no, roll tape. >> is the president responsible for gas prices going up? >> so it's a lot more nuance than that. putin's war has increased gas prices at the pump. stuart: okay, we're going to get into it and that's a promise

and then there's this. vice president kamala harris has been caught in yet another word salad about equity. matt schlapp takes that on, next ♪ i'm staring at the mess that i made ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ (vo) the fully electric audi e-tron family is here.

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stuart: well, fox business alert major development here. the price of oil moving up moments ago it was $87 a barrel and here is why. sources tell reuters unidentified sources, actually, it's supposed to be three opec sources, are telling reuters that opec plus has agreed to cut

oil output by 2 million-barrels a day. this is an enormous embarrassment for president biden. not that long ago he was begging the saudis to raise oil output and now they are going down 2 million-barrels a day. look at the impact on the stock market. futures fell just a little further. we're now down 338. nasdaq down 152. big development in the energy market. key story of the day. vice president harris, still trying to define what she meant by equity when it comes to hurricane aid. here is her latest word salad answer. roll it. >> so let's deal with that disconnect, which we also refer to as disparities, because we see that people in our country are having an experience that is not equal, and that's why we talk about equity, because we recognize not everybody starts out on the same base. they don't start out in the same

place, even though they have the same god-given capacity. so when we talk about the work we are doing here together, it is recognizing that. stuart: i'm not sure where that, or what that means but matt schlapp is here with me. matt, it occurs to me that president biden is going to be in florida today. is he going to hand out aid to communities based on race or color? >> yeah, this is the problem with what kamala harris just said. it's completely untrue. the problem in america is that we're all suffering under these biden policies and it doesn't matter what the color of your skin is. the democratic party of today, which has embraced socialism and marxism and critical race theory is a party hell-bent on turning off voters who don't care about people's color as much as they care about getting what they need to run their lives. just think about all of the staples in our life that we still can't get at stores. the chip problems. the supply chain problems which are not getting better, i believe they're getting worse and then you have a hurricane

that hits florida, stuart, and what does kamala harris say? she says she wants to give out, you know, emergency aid based on the racial composition of the communities. i think joe biden is beginning to realize that his vice president is giving him a lot of trouble. stuart: we got two, i think, huge negatives for the president today. number one, opec cutting oil production, thereby raising prices and gas prices here, and number two, that that was not a good explanation of handing out aid during hurricanes, based on race. those are two big negatives for this president. >> yeah, that's right. look, he bragged that he got gas prices to come down. gas prices tend to come down as the summer goes on and they tend to spike as we switch over into winter, and the problem for biden is that if he wants to take credit for when it goes down he's going to get all the blame for when it goes up.

prices are obviously more than double than when they were when donald trump was president, but, stuart, here is the big problem. they got a two-headed monster politically. they got all these economic issues led by inflation which shows this is the number one issue for the american voter but all this woke stuff, all this idea of turning people against each other, based on race and making our kids hate our country, teaching our kids to hate our country, which has resulted in the blm movement which has resulted in the spike in crime so between inflation and crime, this is the reason why there will be a big red wave don't listen to anyone out there who is saying that this has fizzled. it has not. the american people have simply had enough of these policies. stuart: careful, matt. you're on tape, which can be revived if you're wrong. matt schlapp, but i hope you're right. >> that's right. stuart: the virtues of tape. thank you very much for being here. big day, thanks for being here. >> thank you. stuart: this calls into question whether president biden will run in 2024.

the white house was pressed to confirm. will he run in 2024? what was the answer? lauren: well, karine jean-pierre says he intends to run and seek a second term. >> did the president say if he's running? >> you love asking about 2024. i know you want a clear answer. i know, but if al sharpton says it, it's, you know? here is what i can say, and the president has said this himself, he intends to run in 2024. as you know, i can not weigh in on elections but i will just reiterate what the president has said many times, what i have said many times is that the president intends to run. lauren: okay they are laughing it off but there is such democrat anxiety about is he going to seek a second term and you heard matt schlapp just say joe biden realizes his vp, kamala harris, gives him a lot of trouble. this is his approval rating and the latest rcp average 42.7%

approve so yes, he is still under water, and one quick point when did donald trump file with the federal election committee for re-election? stuart: right after elected first time around. lauren: exactly. now we're basically two years in and we still don't know. stuart: he will make a firm decision sometime. thanks very much lauren. program note, please. october 17, special program in our 11:00 hour, live studio audience. oh, it's free. you must register online. the information on your screen, right now. you could also submit questions to "varney"@fox.com. check futures one more time. we are headed a little further south after the news that opec will cut oil production 2 million-barrels a day dow is off 350, nasdaq is off 150. the opening bell is next, and you'll see it. ♪ ♪

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stuart: i want you to check the price of oil, going up as opec says they will cut output 2 million-barrels a day, $87 a barrel for oil right now. shah gilani with us this morning okay, the price of oil is going

up, opec cuts 2 million-barrels a day or they say they are going to. i see this as a big negative for stockses shah, what do you say? >> i agree with you. it's indicating that the price of oil will be higher price of energy is going to go higher and of course that feeds inflation bubble, so no, it's not a good thing for the markets, and certainly not a good thing for the bond market, which has been leading equities this whole way, and greater volatility we see in the bond market the more volatility we're going to see in the stock market, and i think that's what's worrying investors more than anything else, stuart, is which way are we going to go? the internal volatility is just wrecking portfolios for the most part. stuart: is it time to stop buying stocks, dip in here and there? is it time to do that? >> i think it would have been time if the two-day rally we just enjoyed was to continue. then i think we could see a little bit of momentum buying on the heels of that. doesn't look like it's continuing today. that whole narrative that the

fed might pivot because things are breaking and they can't go too far raising rates that was a two-day rally based on that narrative and now all of a sudden it's like well oil is going higher, inflation is going to be higher and the fed is not going to stop raising rates. we're backwards. stuart: if the cpi, consumer price inflation index, if it goes up when it's reported next week or if inflation stays hot and if the friday jobs numbers are reasonably strong does that finish any idea of the fed pivot ing? >> yes. that will put an end to that nonsense. they have no intention to pivot they are going to continue to raise perhaps more moderately maybe 50 basis point hike at the next meeting but yeah, we got strong numbers in the wrong direction, there's absolutely no chance the fed is going to pivot stuart: manure really changed. all the way through the bull market up until november of last year you were in there bying every dip and powering it forward. then you got cautious, and then you started to sell, and you are still not buying, or are you?

>> i want to. i thought this two-day rally might lead to something. i was talking to a bunch of constituents and i said i've got a list of things i want to buy. they are cheaper than they were before, and i just was hoping we would see some follow through this week, and right now, that's gone. that's just been been erased by what the futures are showing us this morning so if we turn back around i think we can go lower and that's not what i expected. i thought this rally could have ended up being 10-15% rally off the lows and right plow we're stuck. stuart: you say you've been talking to your constituents. that's a strange word to use. are you a politician running a congressional seat or something >> [laughter] no talking to mayan a list friends, investor friends, investors, and we're trying to figure out really what are the prevailing narratives and who to follow in terms of for me it's really about what the market tells me to do, and right now, the market is being told what to do by the fed.

if the fed is going to continue raising rates that tells me the market has lower to go and that's as simple as i can make it for everybody because that's as simple as it should be. that's what's made me cautious and will continue to make me cautious. >> [opening bell ringing] stuart: shah gilani thank you very much indeed, sir 10 seconds to go to open this market. we are expecting not a flood of red ink but a lot of red ink any way. we're off, we're running, it is 9:30 eastern time. got it. let's see how we open up. i want to see first of all the dow 30, there's 30 stocks in the dow industrial average we show them to you at this time when the market opens gives you a sense of the market i see one winner, merck, a fractional gain i don't see any winners in the rest of the pack, in fact i see 28 losers. when they all open, there we go, the dow is down 300 points, that's just over 1%. the s&p 500 down just over 1%. nasdaq composite, on the downside 1.3%. so this is a bounce, it's not a bounce.

it's coming back after yesterday 's and monday's very big gain. not all the way back but coming back. big tech apple is at 144. amazon 118, meta 137, alphabet is below 100, microsoft back to 245. i've got to start with twitter. we know elon musk says he wants to buy, he would buy it, all right, susan, good morning to you. what else do we have? >> well we just got some headlines coming through that the twitter litigation team hasn't exactly accepted elon musk's bid. i mean, if you think about it, i think the thinking is with a guy that's so unpredictable, this is not surprising. show me the money first and then we'll go through this before. now, you know, are we going to head towards that october trial date that's still on the table? not necessarily it's going to happen, but i'm just saying that until twitter's board and twitter sees the money, which there's still a $3 billion short fall by the way in that $

44 billion bid they are playing it cautious with a man so unpredictable right now but i'll show you this is that help you have meta, pinterest, snap, down 70% this year i've seen calculations that say that musk is overpaying a premium of almost 300%. 300%, at 54.20. now, tesla stock is down, because as i mentioned they are still a $3 billion shortfall, wedbush is saying he's already sold 15.5 billion and he still needs to sell $3 billion in order to makeup that gap. what about the banks and the underwriters in the deal financing in this takeover? they're not happy. morgan stanley, bank of america, barclays leading the corporate lending, $13 billion or so and you have to remember that they extended these loans for rates closer to zero and much lower from here so they stand to lose a lot of money given that rates, interest rates gone up up 3% already in the past six months. i'll show you the winners carl icahn, de shaw all making money

because they bought twitter stock betting musk be forced to buy it at 54.20. in fact carl icahn bought in the mid-30s, half a billion dollar stake that he has so he's walking away with a pretty penny so what is musk going to do with twitter? he says he's going to buy twitter. it's an accelerant to creating x , which is the everything app. now you have to remember that the super app, like the ones in asia, they do everything there. it's pretty ubiquitous if you live in china, or southeast asia, it does everything from e-commerce to ride hailing, payments, social media, et cetera so think of the wechat and the grabs. we don't have that here in the u.s. , but elon musk thinks that he has the cache and maybe some of the benefits from elon musk in order to do that. i saw four analyst target price hikes close to that 54.20 including wedbush. stuart: that is fascinating what he's going to do it vastly expand its reach and style. >> don't you think d.c. might have a problem with an app that does everything.

stuart: that's a rhetorical question. and what you're really saying is d.c. will have a problem with this. >> they might, but as i said to you it's elon musk and if there's a man that can create some magic, i think he's probably the richest man on the planet for a reason. stuart: i think so. i'm with you on this believe me. leland:s talk blackstone, which is a gigantic company of which i have a thin sliver. >> thin [laughter] stuart: what are they doing with emerson electric? >> how big is that sliver, i'm curious, so look it's also a big deal when you see maybe a five or $10 billion acquisition in this type of environment, right? so emerson is a manufacturing engineering company, that's really benefited from the housing boom the past few years so they make thermostats, hot water heaters, ventilation air conditioning monitors and as i said to you in a higher rate environment, slowing growth , i think it's very encouraging that blackstone says that there are opportunities for us to deploy cash that we still have on the balance sheet. stuart: okay, show me ford motor

company, por favor. they're ending production of their gt super car, a price hike of 500,000 bucks on it but there's more to this stock than just getting rid of that. >> that's not really stock positive so look, i think it's great to talk about because they have only made 20 of these half a million dollar cars, after its reintroduction six years ago, and you have to remember that gt was made famous when ford beat ferrari in that infamous race in 1966. i don't know if you remember that. stuart: i remember it well. >> oh, do you now? you watched the movie so did i but ford stock is really reacting to morgan stanley, adam jonas of course, probably the preeminent electric car analyst of the moment, and he calls the stock decline a buying opportunity, and an entry point for ford. in his view it's worth $14, so you could get more upside here. it's a drag on gm though the price target was cut there. stuart: but thinks it might go to $14 a share on ford. that would give you a buck 57. >> yes, so what is that?

stuart: nice percentage but really -- >> you're getting 4% on your two year yield that you keep touting with your what is it, your tax deductions involved. so i think, you know, this environment not bad. stuart: it just doesn't excite me. when i'm used to being looking at microsoft or amazon going to the mood, that's what excites me about the market and everybody else too. who is bullish on airbnb? >> well i saw there was, so look there's an out performance right now, bernstein just initiated this stock calling it possibly the travel stock of the west. outperform rating price target increase here, and yeah, i would say it's probably reacting more towards what's happening with the yields but we're looking at an implied upside here of 30%. stuart: implied. now you're talking. >> that's what you want to hear now you're excited, but do you think they are going to close that deal on twitter then? musk, that's a done deal. stuart: i haven't the faintest idea. >> you actually called it exciting for the first time in a long time.

stuart: what's exciting is elon musk, the richest guy in the world, splash $200 billion around. that's exciting. >> i think it's exciting that he basically had to cow tow in this deal. stuart: he's like a kid out of college with a $200 billion trust fund. that's the third time i've said it. >> but he's an entrepreneur, a self-made man that made that $200 billion. he's a smart guy and knows what he's doing strategically let's see what he can do with twitter, but it's all about subscriptions stuart: i think he's a genius for what it's worth. most people agree with that. >> yes. i think it's the consensus. stuart: are we done? see you in a couple hours. coming up, the army is 15,000 soldiers short of its recruitment goal this year, yet they won't let go of their vaccine mandate. let's watch this. >> we would rather not lose anybody, of course, to the vaccine but it's a valid military requirement. stuart: okay, that was a heated argument with brian kilmeade. congressman andy biggs not happy with this mandate on the vaccine

he's going to sound off big time later in the show. under a new faa rule flight attendant the get more rest time between flights and that could lead to more flight cancellation s and delays. president biden will meet with florida's governor desantis today to survey hurricane ian destruction, but will the president take vice president harris' advice and hand out aid on the assist us of race? florida congresswoman will be with us i just can't see her agreeing with vice president harris.

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stuart: we're going to open 10 minutes and, we're not exactly trimmed the losses. we are down 260 on the dow, down 155 on the nasdaq. okay. the national debt has surpassed $31 trillion first time ever. hillary vaughn on capitol hill.

does it get worse from here, hillary? reporter: if new government spending does not stop, then yes , it will get worse. the u.s. debt passing 31 trillion for the first time ever breaking records, that don't want to be broken. this is new government spending under president biden has ballooned to $4.9 trillion. the committee for responsible federal budget president saying that the federal government is " addicted to debt." michael peterson, the ceo of the non-partisan peter g. peterson foundation, that promotes deficit reductions saying this , "so many of the concerns we've had about our growing debt path are starting to show themselves as we both grow our debt and grow our rates of interest, too many people were complacent about our debt path, in part, because rates were so low." the group warning of the consequences that are coming , slower economic growth, increased interest payments on debt, absorbing more and more of the federal budget, leaving less money for everything else but since biden has been president, he has downplayed his spending and talked up his deficit

reduction. >> i don't want to hear it any more about big spending democrat s. we spend but we pay. >> all the talk about the deficit from our republican friends, i love it. i reduced it $350 billion, in my first year in office. i don't want to hear republicans talk about deficits and their ultra maga agenda. reporter: and that deficit reduction that the president is referring to is the result of programs that were in place under the pandemic that expired, because the pandemic was over, not a decrease in new government spending under biden. stuart? stuart: hillary we got it. thanks very much indeed. we need an economist and we've got one his name is john lonski and he's here right now. the national debt $31 trillion. the interest payments on that must be astronomical. interest alone is going to hurt the economy. >> look at it this way. $31 trillion, and we know that on average treasury borrowing costs are up by 2.5 percentage

points depending upon where you are let's say on the yield curve 2.5 percentage points times $31 billion is big money. that's about $700 billion out of 31 trillion so overtime this increase in interest rates will automatically increase the budget deficit. it's automatically going to increase, believe it or not, the size of the federal debt, so we're hitting that point where the increases in federal indebte dness due to higher interest rates may present big problems for the credit market. stuart: okay i'm thinking about people with adjust about rate mortgages. they are going to get hit real hard as the adjustments take place in the future, because their rate, their monthly payments are going to go through the roof. >> that's exactly right and this year if the federal reserve is right and we end the year with the federal funds rate at about 4.4% and the futures market agrees with the fed prediction that implies a year-

long increase by short-term rates of more than 4 percentage points, 4.25 percentage points. the last time we had fed funds rise by so much over a 12 month span, 1981. stuart: ouch. >> we saw what 1981 led to a very severe recession in 1982. you're talking about mortgages, okay. let's not forget about business loans a lot of business loans are variable rate. we have nearly $12 trillion of business loans outstanding, ouch stuart: ouch indeed. quick one. the united nations says we're facing a global recession. america's federal reserve should quit hiking interest rates. what do you say to the united nations? >> united nations should stick at what it does best, which is nothing. so i don't know why they are getting into monetary policy on a global scale. if a fed just does nothing and

shirts its responsibility of containing inflation we're going to pay a heavy price in the future, and in the cost of removing even faster price inflation, be an even deeper recession. stuart: nasty stuff john lonski thanks for being here appreciate it. >> thank you. stuart: especially the warning about mortgages, good lord. inflation 40 year high. some businesses are trying to save money through what's being called skimp-flation. you want to explain that one? lauren: similar to shrink-flatio n, but you can't see the change. it's they cut out an ingredient, for instance. so you might be able to taste it , and some customers did for conagra, their spread that's fake butter. they cut the vegetable oil by 40 %, the customers complained because they tasted a major difference, and now conagra goes back to their original formula so costs more. stuart: i've got something for you from cnn.

it's a headline. i retired during the pandemic. now, inflation has me counting pennies. retiree, linda stuart wrote that what's her story? lauren: so she retired during the pandemic and then she got st ung by everything costing so much and she detailed the changes that she made to save money. things like running the dishwasher one-time a week. only using the washing machine's cold cycle. she ditched getting manicures and pedicures, if she went to the movies she saw a matinee, didn't go on the weekend at night. she said she would look at her utility bill, in new mexico, it was painful, so was going to the doctor, seeing those bill, co- pays, prescriptions rise for her and her mother and then her cat had a surgery and the vet bill put her out too. stuart: that's a pretty good idea of how most folks, life, how they are adjusting in times of high inflation. actually it's a good story. coming up don't forget to send in your friday feedback. you can e-mail your questions, comments, critiques whatever to

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stuart: take a look at the price of oil this morning. okay, we're supposed to play music i don't know. look at the price of oil please we're about $87, or $86.93 the price of oil is up today. why? because opec plus has agreed, they say, they are going to put 2 million-barrels of oil a day from production. edward lawrence at the white house. the administration can't be happy about this , edward. reporter: no that was a last ditch effort by folks from the white house as well as other administration officials to ghetto peck plus to not make this announcement and back off of this and it appears now higher gas prices are in our future, with the announcement of

cutting 2 million-barrels a day. that starts in november, it appears. now the president, his runoff of the strategic petroleum reserve that is going to start or going to end, actually, in this month, as well as europe banning russian oil, that goes into effect in early december so all of this is resulting in a big increase in gas prices right before the mid-term election so i asked the white house press secretary yesterday, what's next >> is there any conversations about releasing more oil from the strategic petroleum reserve, how the president is going to keep the supply up? >> so we're not considering new releases from the strategic petroleum reserve beyond the 180 million which is what you're speaking about about the 1 million that the president announced. we don't have anything more to share, or we're not going to be considering new releases. reporter: so on the way into the 45 minute meeting today the saudi prince representative

said it's sunny, enjoy the sunny day while the saudis santa fe to make a lot more money from this increase in oil price. the move, biopeck, comes less than three months after president joe biden gave this famous fist bump to the saudi crown prince, as u.s. relies on opec plus for oil, not even a wisper of changing energy policies in the united states. in fact, spokesperson john kirby says the u.s. needs to be less reliant on opec plus but he's not advocating by drilling more oil in the u.s.. saying basically need to speed up the transition to electric cars, which is what the president is trying to do. back to you, stu. stuart: [laughter] i'm sorry i'm smiling at that. reporter: i know. stuart: okay, what can you say. edward, you're all right we'll see you again soon. check the markets, please. coming back a little we're only down 200 points on the dow, 150 on the nasdaq. here is what's ahead for you. liz peek, florida congresswoman

kat cammack, ben domenech and arizona congressman andy biggs, yes the 10:00 hour of "varney" & company is next. ♪ good luck. td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!!

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