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tv   Kudlow  FOX Business  September 21, 2023 5:00am-6:00am EDT

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it's not royalty. we don't have that here. you have to get elected to office. but i think there was an acknowledgement that for those of us who came after my uncles, i think there was a profound feeling that we could do something simply because we carried their name and that allowed us to do things that they didn't have time to do in their lives and that gave us a connection to them and to something greater than ourselves. larry: hello folks welcome to kudlow i'm larry kudlow, oil prices are headed to
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$100 a barrel, gasoline moving back to $4 a gallon. top line inflation going up, not done. because of the oil shock. the federal reserve has a history of accommodating oil shocks in 1970s and early 2000s, now the latest shock is a fed challenge. however today it at the press conference fed had j. powell never mentioned the oil shock except with your great reporter edward lawrence asked a question about it, listen to one of the goofiest answers you will hear. >> we're seeing oil prices, move up, that is pushing price of gas, how does that factor why your decision to raise rates or not, last two anonymoinflation reports overall is risen.
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>> right, so, energy prices are very important for the consumer this can affect consumer spending, it can affect consumer sense am gas prices are one of the big things that affects consumer sentiment it comes down to how sustained the energy prices are, we look at core inflation that excludes food and energy, energy goes up and down right that, don't tell you much about where inflation is going, we're aware if energy prices increase and stay high, they will have an affect on spending and it may have an affect on consumer expectation of inflation that is things we monitor. larry: wow. that is your fed head, key line is doesn't tell you much about where inflation is going, really? no kidding. can we review the past 31
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months, 3 years, world oil prices have doubled in round numbers from $50 to nearly $100 a barrel it hit $125 at their peak last year, on the way, gasoline has increased 52% and shares energy derivatives exploded motor fuel for example up 52% and electricity up 25% and groceries up 20%, and oil prices hits fertilizer and fertilizer hits food. i'm not boring you again with all of our lists of approximately 200 items and really many more throughout every nook and cranny of the economy. derive from various refined petroleum products. we'll give you some of the golden oldy highlights. here, for example we have fun last night judiciary committee chairman jim jordan talking about ag,
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merrick garland, and all are merrick garland's shenanigans, he liked my receive so much. >> larry i'm still laughing at that riff you had, did you tell me that democrats' to get rid of soap and pacifiers for our grand kids, for goodness sakes, holy,. larry: yeah. >> not just gas stoves but everything else, holy cow. larry: all jokes aside. oil prices affect diapers, plastic toys, soaps. shampoo, baby clothes, life staving products like pacemakers and mri machines, that is all tied to energy, and j. powell doesn't think that is an importa important inflation factor, the fed publishes 5 year projections of the economy
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like the old soviet 5 year plans and fed is about as accurate at soviet union was, to middle of 2021, fed predicting 2% inflation, as far as the eye can see, you may remember that in 21, there was no inflation. then it was transitory. then oops they jacked up their target rate by 550 basis points from zero. the actual inflation rate in 2021 was around ip 5%, not zero. and next year in 2022 it was nearly 6% by way the cpi hit peak of 9.1%, that is not zero as well. now they tell us, they are expecting to raise their target rate some more, that is what powell said today, but they will keep pausing. i would suggest if you raise the rates, then raise them now. let's get it out of the way. i would also suggest when
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oil prices spike higher, causing great middle class and lower income suffering, the federal reserve should tighten policy. to make sure the energy spike is not embedded in to inflation forever. okay? it is middle class that sufferers the most, this is why real wages keep falling in the past nearly 3 years, burying joe biden's popularity ratings. i would also suggest instead of targets of economy, or the unemployment rate, the fed should use a broad commodity index. and including gold in order to preserve a stable commodity value of money, look at that chart, brent crude goes up. we'll show the brchart too.
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i'll conclude. none of these reforms will happen under joe biden or like that that crb commodity index chart, it has popped up a lot, not just oil but oil and gasoline is a big part. i'm saying you want a stable value of money that gives you price stability, not destroying the economy or jacking up the unemployment rate or introducing a recession, just keep the dollar stable and i like to use a broad commodity index that includes gold and energy, not happening under joe biden or under j. powell, i don't think they understand it. that is what is disappointing, like we had immaculate disinflation in 2021, then immaculate inflation in 2022. we have j. powell. much better than j. powell,
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we have john carney. breitbart economics and finance editor, co coauthor of breitbart business. john, go ahead, tell me how great j. powell of today. not like -- i don't want to be like friends of mine and ask questions and give you the answer, but he never mentioned the oil spike, which is an oil shock but when our reporter edward lawrence, a smart chap, clever, asked him about it, then gave the stupidest anier. >>answer. >> i was glad hig he got asked about it, it is important, that affects other things not made of oil, if you pay for gas, you don't have money to spend on a concert ticket or a movie ticket, this is a tax on americans, joe biden loves that, he wants there to be a
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tax on americans in the form of high gas prices, they have a religious fanaticism. >> can play this, let me ask my producers. can we play the j. powell answer just one more time i want to make sure steve forbes hears it and embedded in john carney's mind. hire comes j. powell. >> we're seeing oil prices, move up, and that is pushing price of gas, how does that factor into your decision to raise rates or not, last two anonymoinflation reports it has risen. >> right, so, you know energy prices are important for the consumer this can affect consumer spending and sentiment, gas prices are a big thing that affects consumer sentiment this comes down to how sustained
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the energy prices are, the reason why we look at core inflation, thattiti exclude food and energy, we're well aware that you know if energy price increase and stray high that will have an affect on spending and may have an affect on consumer expectations, and of inflation and things like that, thing zee things we have to monitor. larry: all right steve forbes, my friend, oil prices, energy does not affect where inflation is gos. >> this reminds me of early 1970s. >> 100%, i'm sorry. >> a terrible inflation, a bad report, he said with a straight face, if you exclude copper and food, and housing. this that and the other, 7
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items it looks pretty good it took a while for the reporters to get on to th titit that he was pulling their leg but powell is not pulling their legs. larry: the inflation rate averaging now for 3 years something around 5%. i'm just tossed that number out. more or less, 3 percentage points above where it should be which is 2. but you know, one of the constants is high energy. and gasoline. and. >> biden administration spent all of the literal capital they had to deal with this problem by releasing oil of the strategic petroleum reserves, there is not a ready source of oil now that can be tapped to bring down prices, it went down because he manipulated money by flooding it from front of mid term that was very
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intentional and political by joe biden, they can't do that this time, they will feel the vefe reserveses witwith a $100 barrel oil, it was a huge betrayal, saudis said, you don't want it at 125, but you need to put a floor on this, fill it up at 70, they didn't do, that price kept going down, now we have no friends who produce oil in the world, in u.s. people are afraid to invest. larry: no friends who produce oil, a key point. steve forbes, i don't want to behav belabor the point, i don't know if this is like the '70s it has around the i thinks. >> it rhymes,. larry: thank you. and one of the things we learned volcker taught us later, when you get these
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commodity spikes, in this case energy spikes, the fed should tighten, if energy falls, the fed should ease, you don't want to embed nortded in inflation rate, you don't want to print money that embeds it into the economy forever. this is a steve forbes point, commodity value of the dollar, the gold value of the dollar, i uses crb that includes gold and silver. is falling, we have the chart. the last 5 months, 5 or 6 you have seen a big rally in commodity prices away up. some of is oil, a lot is not. between that and the energy problem, if -- look, i don't want to see high interest rates either. but they screwed up so much, they are stuck with this, they are talking about pausing, just get it done. >> get it done as fast as you can, just get it done, get out of the way.
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>> if powell had a back bowen backbone, he would say high oil prices produce more oil, we can't get more oil by raising interest rates. we can suppress demand or. that is beyond our com competence. we have seen oil prices went down natural gas prices down huge market in europe for natural gas, do, that don't depend on the fed, we can only do so much, fed is now playing a game. they are reducing so-called reverse repos, they were 2 1/2 trillion, they borrow short-term from banks and money markets that is 1.5 trillion. larry: why. >> they are reducing plans sheet without a raising interest rates. >> that may not be bad. >> no, but powell should lay it out. larry: yes. >> lay it out, this is what
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we're doing. larry: that is the real money supply. the basis, they are doing the right thing but he doesn't talk about it. >> i think this is right. money supply has come down they should talk about that more, so uncool for central bankers to talk about monetary aggregates, they don't like to do it, that i want to talk about expectations and their target rates and that. they should talk about the monetary aggregates this is the money in the system that is getting spent. i think powell saids to say his base case is not soft landing, looking at projections say, they think growth will be up a lot more than -- they remember back in june, they said we'll grow 1% this year. that is the wrongest forecast i can seen from a federal reserve. they now say we're growing 2%, back march they thought it was 0. 4%, they thought that interest rate hikes
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were going to bring down the economy and inflation, more than they did, it didn't happen. larry: you know what. never over until' it's over, i'm look at an inverted yield curve. >> i think that fed may find itself in a position to hike rates next year, that is why they are hiking in november, they don't want to hike in an election year. larry: why didn't they hike today. >> they should have done it, it makes no sense. larry: i don't know i'm just saying get it done, can steve forbes. >> stable dollar. that takes care of the problem then increase the capt of economy to produce, reduce taxes and spending, miracles will happen and they will look like a genius, they have 4,000 years of experience. larry: limit spending, you are right lower taxes and lower regulations, you sound like donald trump. >> ronald reagan remember
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him. larry: ronald reagan, that is what reagan dthank you, we appreciate it, thank you for hustling. steve forbes and john carney,. >> category -- coming up talk about biden war on fossil fuels, border crisis, ukraine, our good friend senator ted cruz from the great state of texas up next. on kudlow, and remember fox business will host second republican primary debate at ronald reagan presidential library in simi valley, california. a fabulous place, that is wednesday, september 27, 9 p.m. east in eastern, and we will be broadcasting live out of simi valley for our regular show at fur p.m. east in4 p.m. east inch aeastern and 1:00 p.m. pacific, wild could right back with senator ted cruz,
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larry: i'm having fun talking about oil and federal reserve. and goofiness of j. powell. let's bring in texas senator ted cruz great friend, texas
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is an oil producing state last i heard. basically, j. powell does his whatever he is doing midyear review, fall review, some kind of a review. he gives a press conference, they are not raising rates they will quote, pause. i don't know why but putting that aside, he never mentions the latest oil spike, you know world oil prices are morning -- go back to a hundred bucks, our great reporter edward lawrence asked him, and basically that is only time it came up in the news conference. and finaly, powell said, oil doesn't affect inflation. that is why they look at core prices. which is food and energy, you know is what people use. which is what starving the middle class and damaging the lower income folks and
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bidenomics is failing. i am your take, you know about the fed, you know about hard money and a good dollar, you know about oil, how the heck does a fed chairman say oil prices don't affect inflation. >> look, it is crazy, and ludicrous, he knows it is false, j. powell is a smart guy, we know him well. we hads also someone who doesn'tn 't to tick off the biden white house, when trump of the president, he said things that sounded more conservative, and now that biden is president he says things more liberal, he wants to stay where he is, and he does not top wrong the political boats of the white house, i would into ask any consumer at home, the fact that you fill up our car or truck you pay 50% more at the gas pump, does that affect your cost or the price of fertilizer skyrockets does that affect
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the farmer's cost, and the diesel and track or farm equipment, does that affect their cost. if you are flying somewhere for business or pleasure, you get on a plane, and fuel has skyrocketed. the cost of everything, energy is baked into, we have seen for two and a half years biden administration wage a relentless war against u.s. oil and gas production. joe biden promised on campaign trail if you elected him he would shut off new drilling on federal land onshore and ho offshore and i' i tell you most pernicious, he has gone after capital appointing banking regulators who are trying to cut off debt for new oil and gas
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exploration. i ask you larry, you if a business can't get debt and equity how does it get capital to engine and new drilling? the answer it, is doesn't. larry: look, i don't flame powell for the -- blame powell for the oil spike, i agree with you, you turn off the spigots this is what you get, john carney of breitbart said, oil production is in the hands of our enemies, that is what is opec plus is about, russia, saudi arabia and iran and venezuela. but j. powell has to do something about it. from a monetary stand point, high didn't want to deal with this today, i think that was a huge mistake. send you my riff, which i know you were voting that say good thing. but, what you just said is who i said in my opening riff. >> good.
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great minds think alike and so do ours. larry: it will put you to sleep at night. let me go do a different subject. this is united nations week in new york. the traffic is tied up, joe biden speaks to the general assembly yesterday. and he made a big pitch on more money and help for ukraine, never mentioned the crisis in new york city and the country, which is open borders, and all these thousands of illegal migrants, and new york city and all of the other sees sanctuary cities condition pay for it. -- can't pay for it lets me ask you on the question of ukraine, do we know, does anyone know, do you know, if the bidens or anyone is trying to negotiate some kind of a diplomatic initiative that might generate a peace plan? instead of thousands of
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people killed and billions of dollars of american aid? >> so if they are, i have no indication of it. we're not hearing anything from the president from the biden administration to suggest they are. and listen my criticism of the biden administration on ukraine has been number one, joe biden caused this war because of his weakness, when he waived sanctions and russia and putin and nord stream 2 pipeline, they are sanctions that i authors and passed 2 law, they shut the nord stream 2 pipeline down and prevented a russian invasion of ukraine until joe biden became president, first thing he defense give russia and putin's multimillion dollar gift, he caused this war, but now with the war of biden administration is
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incoherent. my view is, putin is a bad man, we want him to lose this war, we want russia to lose this war, but the biden administration is funding both sides of the war. simultaneously, joe biden went to the u.n. saying he wants to 24 billion for ukraine and military aid and simultaneously in past couple weeks biden has announced 16 billion dollars he allowing to flow into iran, that is 16 billion will be ago youd t -- used to fund terrorism to kill americans and to manufacture drones that the russian army will use to fight the ukraine an army, iran is russia's number one weapon soupblsupply ir, biden administraier, biden administration is putting billions on both sides of the war, then they are surprised that war keeps dragging on, this is
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incoherent. larry: yo you could add biden's war against foes i foefossil fuel is financing russia and iran. one last point. very interesting editorial on breitbart, a great news site, editor marlo, is saying you know, with respect to joe biden that we should switch gears, we shouldn't be so obsessed with his age. or his infirmity or his gaffes, we should focus on is the biden corruption and the biden policy mistakes. you know we have another republican debate coming up, i know former president trump will not be there, but a lot of strong you know smart conservatives will be in the debate. i don't think -- i think that marlo is right, it's
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not age but failure of bidenomics ands rest of his policies and the corruption that is where g.o.p. should aim its fire. >> there is no doubt to biden had enough mental deterrideteriorating he is not up to the job, but you are right, corruption from biden white house is massive, and evidence is growing, we do a podcast every week, we walk through in detail, the direct evidence of joe biden corruption,y is less at t and receiving millions in points from the oligarchs. every policy has hurt of american people, we have to focus how the policies are failing working men and women. larry: senator ted cruz thank you. >> thank you. >> we'll be right back. (fisher investments) in this market, you'll find fisher investments is different than other money managers. (other money manager) different how?
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larry: all right so, what did ag merrick garland say about his and joe biden's two-tiered standard of justice. judiciary committee meeting today, let's go to new jersey congressman jeff van drew and texas congressman troy nels, jeff, you for new jersey, i grew up in new jersey, what did garland say? i know you pounded him. >> he didn't have anything to say. i will asked hi himself. el questions -- i asked himself. el questions, they were putting undercover anxieti agents into churches, into roroman catholic churches this is wrong, this is the united states of america, i
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was disgusted, i asked did he believe that roman catholics were domestic terrorists, it took him forever to begrudgingly say no, i don't understand. what he is doing to school boards, with agents there when parents express concern about what their children are being taught. fiso, what they did by looking up. average folks regular people, misusing something that allowed them to get into people's personal lives and all details of what they do in their home life, he is in charge, he is responsible. he should own up. larry: troy, did you discuss? for example, donald trump's -- they are trying to push him i don't know 705 750
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years in jail. this free speech. they are punishing trump for his views, you have this other thing, super bo special counsel his name is hur. we have not heard a peep out of this special counsel. did anyone raise that point? what happened to this guy, hur. >> is he gone? is he in a spaceflight in working for elon musk? >> i don't know a lot about, that but i do know is in my questioning, with garland he is not serious about anything that took place with burisma, and hunter biden being on the board. everything knows that burisma is the energy company. corrupt one in ukraine. when i asked him about the special counsel, said diso
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ydo you know who shokin is, the prosecutor in ukraine, he is trying to uncover all of the corruption in ukraine, he said, i don't know who that is, that says to me, he is done with burisma, we showed video of joe biden on the video screen for everyone to see, where he said, if you don't get rid of this prosecutor, who really is looking into burisma, you are not getting into this billion dollar loan guarantee, that is quid pro quo, that is bribery and my humble opinion it is impeachment, i don't think he cares, garland needs to be impeached himself. >> congressman nels is right, you are speaking about a two-tiered sem system of justice, someone who say conservative or republican or a different point of view, they go after
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them hard. but if anything do with biden family or anyone else, they don't go after them, they were doing a unique plea deal, we know this, no one in history of law, they would exonerate his son but also him from anything they found in future. this is wrong. he is the man in charge, he is responsible, he can act holier than thou but he is where the buck stops. >> terrific stuff, i'm sorry we don't have more time, we'll have a back in discuss this stuff more, the hearings will go on for a while, jim jordan was fabulous on the show last night. walking dre through it, you are doing a great job, thank you, jeff van drew and troy nels. >> charlie hurt, and katie pavlich, fox news ye
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contributors, katie, i just, i can't help myself, a little bit of a cheap shot. >> no dress code left in the senate. i'm not schilling for brooks brothers. but, we have some pictures of your favorite senator katie, we'll put it up on the full screen, senator fetterman, the cargo shorts on, he has some mean looking legs. my question -- look. if you will allowing this kind of you know, terrible dressing. what does that say about the institution of the senate and responsibilities and place in history and seriousness. come on. chuck schumer trying to help him, ha does not make sense to me. >> fetterman is dressed in a way that is reflective of how the american people feel about the senate and about
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the house and washington, d.c. in general. but larry, i was thinking about this how we got here i'm sure when they started counting hunter biden spit through a spra straw at art on a va kaf canvass, this was inevitable in the capitol this should a disbrace, if he does not respect himself to get up and get dressed for the american people he does not respect hit constituents, we was in a i t-shirt today, we'll see how crazy this gets. larry: charlie, katie you are kind, my saintly wife is a good painter, it is serious painting, not finger painting. >> yeah. larry: charlie, this -- like all down hill, this is in a sense, i like what katie
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said, there is a cultural thing. a statement. guy like schumer, all right, his colleagues they don't care, culture is gone to hell, education is gone to hell. southern border gone to hell. you know, come on. nothing seems to be working, this is why americans are unhappy. fittefetterman becomes a symbol, i don't know how in the world pennsylvania of elected him, but they did, voter speak. but still, we have do it this way? really? >> i think katy is right about this. i think that you know john fetterman is a message to washington, this is the contempt we have for washington. so we'll send a sla slovenly unmade bed, you can smell him over television, he has no respect for
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himself, if you had a friend that was walking like this, you would reach out to him get him you know back to a clinic somewhere,. you suffer from -- you know if you can't make up your bed or pout something other than your pajamas, my bigger concern, i am sorry for him, he leads such a miserable life he can't put two minutes of effort into walking out of the house, but for the rest of us, i don't want to have to look at his legs, he has disgusting legs, i don't want to see more of his skin than what i see when you wear a coat and a tie, this is basic respect, that is why you wear a coat and tie when you go to church, not like you are bee fancy but respectful of others who don't want to see your nasty, disgusting legs, out of common decency, they
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should require at least long pants. larry: you know, katie othis point. i don't want to belabor it but, but, but. all of these polls, the long run polls, and so on, from gallup, americans have lost trust inia all of the institutions. okay? and unu that includes fbi, the justice department, the electoral system, and et cetera. and they sure down think much of congress. this just plays right into that. like, you know, i know chuck schumer, he is not, schumer and i disagree on politics but he is not a bad person. but he knows better than to allow the you know decline of standards in the senate. the public doesn't trust anything, and this makes it worse, i'll give you last word. >> it is pathetic, weak and lazy, chuck schumer is
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allowing lowest common denominate or to dictate the dress code in senate this is disrespect actual to the institution and people they rip, and when they feel betraying, sending a slob to the floor does not send message they their confident they can turn things around for you. larry: all right. two of you are great friends, i am sure we're short of time, thank you for coming on. and talking. >> no more shorts. larry: thank you, you got it. i'm wear long pacts, i have my long pants on. >> anyway, thank you to you. thank you -- you are terrific. coming up biden special prosecutor jack smith, he wants to gag former president trump. now free speech for donald trump, it is outrage. former florida attorney general pam bondy is here on set to talk about it with me, i'm kudlow, we'll be right back.
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larry: no free speech for donald trump according to so-called special counsel jack smith, a gag order. all right? let's bring in pam bondi, former florida attorney
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general and america first policy en state law and justice center co-chair. pam, jack smith trying to gag trump. >> this is censorship order, they want to censor president trump. after jack smith goes out there and talks about the case. he suggests that president trump had something to do with violent on january 6, they don't want to imhad be able to defend himself, april 2022, "new york times," said he is a threated on our democracy and needs to prosecuted about biden, yet they want to sensor president trump and his lawyers and his campaign staff. it is not only against president biden. think about chris christie can say anything they want about donald trump. yet he cannot defend himself in a presidential election. this is an upside down
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world, i've never seen anything like this, i prosecute made entire career, the rights go to the defendant, his true liberty is at stake. larry: am i right? some liberals are defending trump on this. >> they should. larry: "washington post" is. i don't know about "new york times." but, real, smith is going way away away too -- who diseases this decide this. >> this is difficult to appeal it, i'm sure they will try, wouldn't surprise me if he rules against him given the rules, they are setting the trials, the rights belong to the defendant, they are setting trials before a presidential election. they are silencing a political opponent forcing someone who faces forester in prison to go to trial, i have never seen anything like this in my life. the rights should go to the defendant, they are not here, this is -- every criminal defense attorney in this country should be
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outraged by when they are doing. larry: on this point, what happens. everyone knows this is unfair. can to be pushed back? will to be pushed back? whether it is appeals or discovery or whatever. to me, pam bondi, the actual jury is the election in november of 2024. nothing should happen before then. larry: >> that is what it's about, they charge him in mar-a-lago, they get a fair judge, then, they charge him in dc. new york, georgia, they are hitting from all angels and getting liberal judges who will do everything in their power to go after joe biden's political opponent. larry: that is all it is, incredible pam bondi the best of the best, thank you for come on, appreciate it. larry: a last word. i'm kudlow, we'll be right
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- [reporter] attacks against asian americans and pacific islanders are on the rise. - my simple solution to the problem was remove people from the scene and help them feel safer. (piano music)
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in terms of hate crimes i think there is so much more work to be done. we really need to come together and tackle this issue as a community. (classical music) larry: that's it for kudlow, thanks for watching, folks >> that is it for "kudlow", thank you for watching folks. ♪. maria: good thursday morning everyone. thank you for joining us this morning.

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