we like large caps all this year. overweight large cap, megatech which stocks i'm talking about. we also like for the income portion of our portfolio we hear people talk about, i'm buying duration, i'm buying duration, i'm buying duration. well that hasn't worked. they suffered because of that, because intermediate longer term bonds are declining as rates go higher but on the short end of the curve with rates going higher we don't worry about duration. duration is very short. it is about the yield which has very been very positive for us in the income portion. [closing bell rings] liz: there is the closing bell, david, and we thank you. the dow managed to pull it out up 72 points. tomorrow undefeated former pro boxer floyd mayweather, jr. ♪. larry: hello, folks, welcome to

"kudlow," i'm larry kudlow. day five of the horrific barbaric, hamas hezbollah invasion of israel. israel is regrouping with the air defenses. soon to be launched ground attack. we're trying to get ahold of mike tobin on the ground. soon as we can get him through, he is on the border, the gaza border. as soon as we can we will plug him right in. on the show senator eric schmitt is here to tell us why the administration is still in deep denial about the role of iran and in just a second the great harvard law professor alan dershowitz will tell us why harvard loves hamas or maybe they don't. first up, i want a word of congratulations to my friend steve sallies. he is now the republican nominee for speaker, winning a tight race over another great friend and distinguished conservative jim jordan. mr. jordan now declared support for scalise. he is whipping other members into the scalise camp. hopefully the republican

conference will be completely united and move the nomination to the house floor and get the 217 vote necessary. couple more words about steve scalise who i known for many, many years. he was a brave soul shot on a baseball field a few years ago, managed to recover and won admiration of everybody on both sides of the aisle. right now he is ahead of schedule in his winning battle to defeat cancer. he is a strong conservative. he was an excellent whip, excellent majority leader, former head of the conservative republican study committee and he was principal organizer of hr.1. that was the first republican house passed bill last winter, hugely important as as it will unlock the fossil fuel spigots as joe biden's radical green new deal attempts to shut down. hr.1 was also an important permitting reform bill. it would unleash oil and gas production, bring down gasoline

prices, help restore america's energy dominance that biden has so bad i undermined. then majority leader scalise and then speaker kevin mccarthy unveiled hr.1 on this show in part because it was probably my biggest pet cause and you think it still is. coming from louisiana you can bet steve scalise will keep the heat on and press forward to fight biden's socialist climate change central planners and restore a balanced approach to energy using our god-given resources and technology advances to power future economic growth forward. anybody that knows steve scalise by the way really likes him. donald trump backed jim jordan but trump is also a great admirer and friend of steve scalise and mr. jim jordan, an old personal friend, he will continue to do a terrific job as judiciary chair in the biden investigations and in pursuit of an end to the 2:00-teared

justice system imposed by joe biden's merrick garland justice department. scalise and jordan r strong proponents of first amendment free speech and you know what? they are supply side tax cutters. they will work hard to limit the size and scope of federal government, cush spending an deficits, role back the anti-growth biden regulations. these guys are pro-business. they're not big government socialists. the fact that mr. jordan is magnanimously working for a successful scalise speakers vote, a test toe jim's patriotism and his strong character. soon as we get a republican speaker on board look for a bipartisan resolution in support of israel. it is going to have be some kind of a supplemental spending bill to help our great ally israel and then the hard blocking and tackling. finish up the regular budget order appropriations process. liberal media keeps writing off the republican house. they do it dozens of times but i

think those liberals will be wrong once again. by the way the republican house will be israel's truly best friend through thick and thin. okay? just a little appetizer by myself for mr. scalise and mr. jordan. all right, now, next question before the house, does harvard hate hamas? or maybe not? joining us is the great alan dershowitz, professor emeritus at harvard law school and author of get trump, the threat to civil liberties, due process on our constitutional rule of law and, also a great article, i saw it in the "new york sun" a new reckon something long overdue for american universities over the anti-semitism with which their campuses are riddled. professor dershowitz as always sir, as your biggest fan, thanks for coming back on the show. what is it, you know spent a prison term at princeton.

i know you were a long time with harvard. larry summers is furious. i think we have a quote about summers, maybe we'll get to it, but what is it about these schools, professor dershowitz? they have no cone tex, they have no historical understanding. >> you're absolutely right. [inaudible]. for woke progressive culture but we're on the offense now just like israel. we turned against these -- we got a law firm in new york to rescind an offer from the head of the nyu bar association who supported the rapes and the beheaders and the kidnappers at harvard. we've gotten lots and lots of the groups to withdraw their support for hamas. you know why? because a big hedge fund operator who graduated from harvard said he wanted the name of every single student who supported these beheadings, and supported these abominations to

be made public so that no wall street firm makes the mistake of hiring any of them or any law firm. imagine a law firm saying to a jewish client or any client, oh, by the way the woman who will be representing you, she believes in it's okay to lynch and rape jews. would you like her to represent you? of course not. the first amendment allows these bigots to express their bigoted views but they also allow us to respond to them. one way of responding to them is by exposure. the marketplace of ideas requires transparency. we want the name of every single student and faculty member who supported these barbarities and we want to make them public and every potential employer knows who they are hiring. larry: that is great. that's a great story. i know there has been some backing and forthing, claudine gay is the president of harvard. out of the gate, very, very slowly. i think we have a quote. let me see, do we have a quote

from her. the delayeded harvard leadership statement fails to meet the needs of the moment. why can't we find, this is larry summers i think. this was summers. the delayed harvard, come on, let's get it up, there we go. all right. producers aren't helping me here. here, as the events of recent days continue to reverberate let there be no doubt that i condemn the terrorist atrocities perpetrated by hamas. that was her statement, claudine gay, the president of harvard t took a while to get it out, alan dershowitz. are you okay with with that? should she have acted sooner as a long-time harvard professor, maybe among the most distinguished people ever to serve harvard, what do you think? >> between larry and i served harvard 100 years. it is not immodest to stay we were part of harvard's

reputation of excellence. the president of harvard too little, too late. she still refused to condemn the student groups. she doesn't want them pick killing her office. she doesn't want the woke people to protest. she wants to take the same way out. that is true of most university administrators today. they refuse to condemn the students. just imagine if you were a club at harvard called the ku klux klan club and it ad sophisticated the lynching of african-americans. would president gay remain silent about that? would she refuse to condemn? the same standards that apply to ku klux klan lynching group or neo-nazi group have to be -- one of the groups that supportedth beheading amnesty international in harvard. they have withdrawn the support as a result of pressure. there were so many groups, feminist groups, gay groups, other groups who were part of this what is called

intersectionality, one of the most bigoted anti-semitic groups around but basically said to messages to people, if you want to be a good progressive woke person you have to hate israel, you have to support hamas. we'll not stand for that anymore. exposure as justice brandeis said is the best, best remedy. sunlight is the best disinfectant, let's get sunlight on all the people who lent their names the good name of harvard to these barbarities. larry: producers i want to get to larry summers. i have known larry summers over 40 years. let's get this up, come on, summers, summers. here, this is larry summers. the delayed harvard leadership statement fails to meet the needs of the moment. why can't we find anything approaching the moral clarity of harvard's statements after george floyd's death or russia's invasion of ukraine when terrorists kill, rape or take

hostage hundreds of israelis attending a music festival? why can't we give reassurance that the university stands squarely against hamas terror, frightens students when 35 groups much their fellow students appear to be blaming all the violence on israel. i wanted to read it. i know you agree with it. i agree with it. just because my regard for larry summers. larry summers, a democrat, i'm republican but he is making enormous sense as he often does. he is a brilliant guy. sew like you, mr. dershowitz. it is a matter of character. you have to be square on both sides of the aisle. so, you know, i looked on the list, harvard law school, columbia, berkeley, nyu, yale, i didn't see princeton on the list but i'm afraid to keep looking. you know, if the presidents of these universities don't step up, who will? that's my question. if they don't who will? >> faculty members are stepping

up. stephen pinker, a few other of my colleagues are stepping up. it is not only universities, plaque lives matter in chicago, basically issued a statement that says, but jewish lives don't matter. we don't care about jewish lives we'll glorify the hamas parasailers who went into a music festival. remember who victims were in israel, primarily people from kibbutz, people to the left, people who support the two-state solution, people who want peace but for these barbaric people it doesn't matter what kind of a jew you are, if you're a jew, if you're in israel you deserve to have your children murdered. benjamin netanyahu just a few mints ago described what happened in a room with a whole bunch of jewish children. apparently tires were lit on fire, they were sent into the room to incinerate these children. if that doesn't remind you of the holocaust nothing, nothing does and what we're seeing is

neonazi fascists and they are supported, they're supported by students. would you want to sit next to a student at harvard law school who you knew would be prepared to behead your children if he had the opportunity to do so? you know, this has to be exposed and schools have to know what they're doing and today many of these universities are failing in their mission. now the students are fighting back. you know what they're doing? they're not taking humanities because they know what it is. humanities today is being used for propraganda. they're doing stem, science, technology, engineering and math. they're majoring in economics. they're going to hard sciences. they doesn't want to be propagandized by these radical idealogues on the hard left. we need a reckoning just like we had a reckoning after george floyd. george floyd was one man loaded with narcotics and alcohol who contributed obviously to his own death even though he clearly was

murdered and the people who murdered him have to be held accountable. one man caused a major reckoning of how universities deal with race. i think that 1200 innocent jewish people in israel and the way universities have dealt with that ought to cause a reckoning and i won't rest until that reckoning occurs at yale where i went to law school, at harvard where i taught for 50 years, at city university of new york which won't allow me to speak. do you know harvard won't allow me to speak about israel. they will al how any anti-israel hamas supporter to speak but they will not allow me or other pro-israel supporters to have a platform on the campus. larry: whoa. taxpayer-funded university. professor dershowitz, one more thing, in congress, i want to play some tape, this rashida tlaib woman who is completely on the wrong side and is in denial of all the realities you just spoke about. our own hilary vaughn, a very

good reporter chased her down. take a listen to this professor. hang on a second. >> sure. >> terrorists have cut off babies heads and burned children alive. do you support israel's right to defend themselves against these atrocity. >> we're going through here. >> you can't comment about hamas terrorists chopping off babies heads? congresswoman, do you have a comment own hamas terrorists chopping off babies heads? you have nothing to say about hamas terrorists chopping off babies heads? do you condone what hamas has done chopping off baby heads, burning children alive, raping women in the streets? you have no comment about childrens heads being chopped

off? congressman, why do you have a palestinian flag outside of your office if you do not condone what hamas has done in israel? do israeli lives not matter to you? larry: i mean we've got, she won't even comment on chopping off babies heads, childrens heads, has palestinian flag hanging outside of her office. she is a u.s. coning woman. i don't deny her right to have her opinions, i don't think you do either, professor, i think there is a certain point just basic inhumanitarianism that we have to get past inn this country. there has to be a conversation. right now there is no conversation. this woman is an extremist. she is a bad apple in my opinion. that is just my editorial opinion but you know, it just goes to show, no dialogue, no discussion, no acknowledging of

the reality that you just been describing. i will give you the last word on this. >> you have to have a single standard. would she refused to comment if there were member of congress who supported lynching of african-americans as some did back in the 1910, 1920s? this is the same. these are lynching. more israelis were lynched in one day than african-americans were lynched in any 10-year period in history and we have to think of these as lynches and we ask to ask people who justifiably oppose lynchings and would oppose them today how they can remain silent in the face of this. shame on you, congresswoman. larry: professor dershowitz, appreciate your time and viewpoint. thank you very much, once again. all right, folks, moving right along, got a lot cooking tonight. as i said in my opening riff, looks like steve scalise is the gop's next pick for house

speaker. we'll talk to congressman kevin hern. thank you for professor dershowitz for some moral clarity and cheer explanation. ♪ ce is personalized, based on your goals, whatever they may be. all that planning has paid off. looks like you can make this work. we can make this work. and the feeling of confidence that comes from our advice? i can make this work. that seems to be universal. i can make this work. i can make this work. no wonder more than 9 out of 10 clients are likely to recommend us. because advice worth listening to is advice worth talking about. ameriprise financial. ♪ is it possible to fall in love with your home... ...before you even step inside? ♪ discover the magnolia home james hardie collection. available now in siding colors, styles and textures. curated by joanna gaines. ♪ explore endless design possibilities.

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republicans next pick for house speaker. our own hilary vaughn live on capitol hill with details. hilary, i just want to say how much i loved watching you chase down rashida tlaib and we showed it to professor dershowitz who had very good thing -- nice going, hilary vaughn. >> reporter: thank you, larry. i really appreciate that. we try to talk to everyone here on capitol hill. sometimes we always don't get answers but sometimes the non-answer ends up being the story. what is the story right now on the house side, in a closed-door caucus meeting congressman steve scalise, the pick from the majority of conservatives to be their guide, to be the next speaker of the house in a 113-99 vote, 113 for scalise, 99 votes for congressman jim jordan. scalise got the most votes behind closed doors. still that is not enough to secure the speakership on the house floor. everything is on hold right now.

republicans are not voting just yet. scalise is scrambling to get enough support. congressman jim jordan giving scalise a boost. he told fox he will give scalise, and offered a to give a nominating speech for him and encouraged 99 voters that voted for him to vote for scalise. republicans do not want a repeat of the 15 round saga it took to elect kevin mccarthy in january. the idea the meeting today the gop would hash out their beef in private instead of in public on the house floor but a rule pushed by congressman chip roy would have effectively required someone to get to 217 before a floor vote did not pass. there could be chaos on the floor again, some members are loving it. congressman thomas massie making the comment the vote to elect mccarthy as speaker in january was a coronation. he is calling what is happening

right now competition. larry, of course a lot of people are not loving airing all of this in public and obviously the potential this would be aired out on the house floor round after round as well. larry? larry: run, hilary, run, all i can say. run hilary run, hilary vaughn everybody. for more on this let's bring in oklahoma congressman kevin hern, chairman of the republican study committee. thank you for your time. give me a read, kevin? give me a read. jim jordans class act, coming out for steve scalise. apparently he is inwhenning for him. give me your best read, kevin. >> certainly both men are great friends of mine, both great leaders. they spent the last week working with members of congress talking about what their vision going forward was. we had the meeting in closed-door session, no cell phones. steve scalise came out largest majority vote-getter which by

conference rules we go to the floor now. and steve is no stranger to whipping votes, to talking to fellow members what needs to be done to get to 217. we're actively working to help him get there as many other members are as well. we think it is necessary we get your speakership back into the place it needs to be, get the republican party back in business, get our country back where it needs to be in leading the rest of the world. larry: i see some of the insurrectionists, that is my word, not yours, but some of the insurrectionists will remain nameless but we all know who they are who stomped out mccarthy i see they're backing scalise. i took some hope in that. i think the strict is to get this done in the next 24 hours, is it not, kevin? >> it is. congressman scalise, speak he-elect scalise is doing right now. he is speaking out obviously, no one, didn't like their win forget across the finish line, about reaching out, bringing the

conference together. what we know there are a small number of people at that have expressed their concern about getting to the 217 and i know that the speaker-elect scalise is working on that right now. as well as other people. you heard congressman jordan being the professional that he is, the great congressman he is, the great leader he is, coming out, offering his ability to come out and bring the people together. there were 99 people in conference that supported him and bringing those to the forefront to get speaker scalise in that chair so we can move forward. larry: jim jordan is a great patriot and a great man. so is steve scalise, for that matter. i think everybody likes scalise. look what he has gone through. they shot him. winning his battle against cancer. he is certainly is conservative. his hr.1 bill is a masterpiece. i'm hoping you all can get this done. kevin, i don't want to put you on the spot but is is one pick tar issue hanging up group of

people that has to be resolved? >> i think the big issue is our spending fight. we're seeing, you know or our federal deficits run over two trillion first time in american history. we're borrowing more money than it is taking to actually run our country. all of our discretionary spending, money it takes to run the government on a day-to-day basis we're borrowing 100 plus percent of it now is insane. folks holding out for this want to see a plan going forward. i can tell you that i have worked a lot on the budget since i've been here with the republican study committee. i worked on balancing the budgets. i worked on a lot of balancing around the spending idea. we get speaker-elect to become the speaker scalise, i'm going to be running for the majority leader position to shore up the policy side on that, to get us where we need to go on balancing budgets, getting our appropriation bills done on time so we're not doing this continuing resolutions time and time again. seeing these huge omnibuses keep

driving our spending. larry what we've done in the last 10 years, nine omnibus and 38 crs in the last 10 years. we can't keep operating that way. it is not good for the american people. it is not good for the economic security for our country going forward. those are the gravest concerns of the people holding out want to get answers on that. larry: i agree with you, i agree with you. kevin hern, thank you for your time. when you are famous, powerful majority leader we hope you come back on the show but we appreciate you today pitching in. great information. >> thank you, coming up here on "kudlow," joe biden's iran appeasement put at least an extra $60 billion in iran's pockets, now folks, exactly what do you think iran is doing with that money? take a guess anyway. we'll talk about it with distinguished senator from missouri eric schmitt. got a real bad wholesale price

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♪. larry: so joe biden and company in complete denial about the role of iran in this horrific hamas invasion and they continue to appease iran and now they continue to deny it and at least i don't know, 60 billion, maybe $70 billion in iran's pocket. so joining us now to talk about this is our friend senator eric schmitt from missouri. senator schmitt, thank you, sir as always for coming on. let me play you, before we dig into this, here's janet yellen in part of this denial story. take a listen to what she has to say, please. >> we have not in any way relaxed our sanctions on iranian oil and we are, we have sanctions on hamas, on

hezbollah. this is something we have been constantly looking at and using information that comes available to tighten sanctions. larry: you know, senator schmitt, they haven't relaxed any sanctions so i'm trying to figure out in the last couple years iran has gone from about four or 500 million barrels a day, to, 3 million-barrels a day, now, 4 or 500,000, i beg your pardon to 3 million-barrels a day, on their way to four million barrels a day. it is worth about $60 billion. their exports from china gone from seven billion to 30 billion? no relaxation there, and their foreign exchange reserves have gone from four billion dollars worth to $70 billion worth. so for a country that hasn't experienced relaxation where did they get all the money, senator schmidt? how did that happen? >> well i think it also, larry,

highlights the importance of our national security objective here in the united states to be energy dominant. we were under president trump. under you know, no circumstances should the united states of america be relying on any foreign power for oil. we shouldn't do it. we certainly shouldn't be shrinking our strategic petroleum reserve which joe biden has done at historic levels. so on the energy side of this, you know that is another big play but look at the tale of the tape, larry. this is not just, the numbers that you cited or even the six billion dollars that was paid as a ransom just, last month on september 11th, mind you, talk about being tone deaf, not just that six billion, you have also got this administration that you know reverses the trump policy. sent over $300 million to the palestinian authority when they came into office. on top of the 400 million-dollars that barack obama sent in pallets of cash to iran. there is just no way to deny that the democrat administrations, current one we

had and president obama wanted to do business and deal with iran and in a way that is not in our interests and certainly not in israel's interests either. larry: what is so troubling, senator, i think they are still talking about a deal with iran and i say that despite the horrific invasion of israel and the childrens beheadings, grandmother murders all this stuff. they never mentioned -- i read biden's speech yesterday, i heard it, i weren't back and read the copy. never mentioned the word iran and they are in denial about helping iran as you heard janet yellen, rest of the administration saying the same thing. money is not fungible. six billion dollars, oh heck, it will go for doctors bills, maybe medicare or obama care prescription. the imf has put in $7 billion, i don't understand that. they watched out $10 billion from iraq. i don't understand that. and the oil sales have gone up

from 400 million, 400,000 barrels to 3 or 4 million barrels. huh? really? so i'm worried, i don't know what you hear on the diplomatic circuit, that they are still playing footsie with iran and doing everything they can to deny that iran was part of this hamas invasion? >> that is exactly right, larry. you watch the language that president biden is using. no mention of iran. and you watch now how this mays out with the intelligence community, state department officials, they're not going to talk about iran. they are so invested in these bad deals that they have done with the number one state sponsor of terrorism, they refuse to be sober and clear-eyed about this. we talk a lot, larry, about the iraning the number one state response sore of terrorism, so here is what that actually looks like. they send money, they send arms to hamas. hamas glides into a concert with

innocent people, machine guns downs teenagers running away, burned people alive, behead babies, this is terrible, terrible stuff. i don't know how any american administration, any american president. any party in this country could be a part of that and understand money is fungible. the six billion they are using can be used somewhere else. chuck schumer went to china, we're not working to get our budget bills done which is what we should be doing, because we got 10 working days before the next deadline. instead of that he is in china. what should happen, a bill should come on the senate floor, freeze the six billion, and make democrats object to that i can't believe they would do it. i hope we come together, republicans and democrats we don't want six billion dollars going to the number one state response sorry of terrorism, backs hamas, committed these atrocities. i hope we can do that. we'll find out probably in a

week, larry. larry: i'm with you for sure. senator, let me just ask you though, these economic sanctions and oil sanctions and banking sanctions, they're there own paper but they are not being enforced. is there a way to get senate and/or house, you will have steve scalise speaker of the house in a few days or a day, can you get, i mean somebody has got to put these sanctions back into place. trump had them in place. i mean iran was doing 3, 400,000-barrels a day under trump. now they're moving up towards four million barrels a day. that is because the sanctions. mitch mcconnell wrote a very good op-ed piece, i will give credit where credit is due in yesterday's "wall street journal" he had a couple of fat paragraphs, here is the sanctions in place, why aren't we enforcing them, senator schmitt? >> this is what happens, larry, when you have a executive branch or chief executive officer or

commander-in-chief that isn't in executing the law. larry: ah. >> this is exactly what is happening at the southern border. the president of the united states, i mean the federal government does a lot of stuff it shouldn't do. securing our own border happens to be one of those things. we have laws in place, we should do more by the way, but we have laws in place that can be executed by united states, he is not doing it. you talk about sanctions, same deal this is lawless administration, larry. not only doing things they are supposed to do, that congress directed them to do or current policy of the administration or previous administration, they're doing things they're not allowed to do trying to wipe away half a trillion dollars, do a trillion dollars worth of student loan debt. i mean this is a renegade administration that cares very little about the what law is or what the rules are. i think it is up to us, in these moments right now to speak about this, talk about how terrible that is. hopefully they have a course correct on this issue of iran. it is not, first issue for us

what is the strategic interest of the united states. certainly we have friends and allies this impacted too. it is not in our interests for iran to be a nuclear power. yet we've got playing footsie with another iran nuclear deal to go soft on iran. we can't allow that to happen. i think in the senate we have to push hard. the house, this has to be part of their agenda to continue to press back against an administration not interested in enforcing the law, whether things related to foreign policy or our own border. larry: i would like to see, this should be done, iran should become a pariah again. they let -- the bidens let iran out of that cage. got to be put back into that cage and the sooner we do that, the sooner israel will be helped to get rid of hamas. who do they think is financing hamas? who do they think is calling the shots on hamas and probably hezbollah? senator eric smith, we appreciate your time and lodge aches always. folks we'll come back here on set, mundane domestic items like

whopping big wholesale price inflation report today. we have the great kevin warsh, former federal reserve governor, shepard family distinguished visiting fellow at the hoover institution. i didn't know about the shepherd family thing. is that a new title? >> it has been around you haven't always enunciated like that but they're pleased to get attention, larry. larry: i'm happy to do that. e kevin warsh, 0.5 in september, 0.7 in august, 0.6 in july. wholesale prices up 7.7% at an annual rate over the past three months and yes, it's food and energy which may be excluded from the geniuses but the fact is those are essentials. what are you going to do here? this is a problem for the fed. >> the same way you were discussing earlier on the show that america is confronting a war in two parts of the world, in europe and the middle east.

the fed is confront as war on both parts of their remit too. growth is detear rating not just around the world but in the u.s. increasingly they have a growth problem and a big inflation problem. they have two wars to fight. mostly because they dropped the ball a year-and-a-half ago and let inflation get out of control. they still have not brought it back to target. larry: couple things here, you wrote a good piece, put it in "the wall street journal" we'll put it up on the full screen a week or two back. the fed, the treasury is selling too many bonds. good news the fed is not buying them like they used to. the bad news market interest rates gone up, they have eased back down a bit recently. the 10-year is 4.60, 4.70, probably headed towards 5%. that is one point. the other point the gdp report from the atlanta fed third quarter will be five or 6% growth. so fed people look at that and freak out, right? deep down in the heart of every

fed economist is a hatred for growth. if you scratch them deep enough. >> somehow they think the big spending coming out of washington of washington is somehow deflationary. when more workers are earning more money that inflationary, they have to stop it. that is a central contradiction in central banking that needs to be fixed. on two fronts, the fed thinks growth is too hot. chairman powell spoke couple weeks ago at the press conference. there were too many people working. need to get the unemployment rate up. i think that is a misplaced sense. it is true the economy is strong but much of that growth and investment because of government subsidies. larry: yeah. >> not the kind of growth we can rely upon and when we see the interest rate on 10-year yields are moving up what that says, larry, is the markets are starting to set interest rates, the fed is not. as interest rates go up for our government what's happening? it is crowding out the kind of private investment that we need. so if you're a recipient of the government's largess to build

new solar panels i suppose that is good for you but if you're the real private economy, your cost of funding is going up, if you're a real household, your coast of a mortgage is going up. i think it will hit the economy. larry: mortgage rates, 30-year mortgage rates through 8% today. >> that is exactly right. larry: should the fed raise their fed funds target rate, kevin warsh? >> i don't think they should. they're stuck in horrible position. of their own doing. i think they will pause in november and pause in december and somehow pray that inflation graphtation alley falls to 2%. i think they're very stuck in a very bad position. i don't think they have an easy way out of it because more importantly they are not setting interest rates anymore. larry: why don't they go to 6%? john taylor will be right. he is your colleague at hoover. >> my friend, one time mentor. larry: he taught you have a of us. we will go to 6%. that putts around, that is not

the type of the word to use. they have inflation. go. >> the war will give them an excuse they looking to not to go. if they go to 6% my own judgment is they will do a lot of harm to the economy. they're in a terrible position and it is not because of war, not because of covid. it is because of mistakes they have made. larry: tough could come back from those mistakes. kevin warsh, best of the best. >> thank you, larry. larry: hoover institution, shepherd who, one more time i want to be fair. >> them heard family visiting distinguishing fellow. thanks for that, larry. larry: coming up we'll contrast joe biden's iranian appeasement with donald trump's tough necessary, all right? we have "abraham accords" negotiator adam bealer. go to 6%. kevin warsh will be right. inflation is not conquered. we'll be right back.

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adam, i'm short of time and i apologize but difference between strength and weakness, give us a little hint. when you guys were negotiating with the "abraham accords" or in general what was the difference? did we understand that? >> i think the key thing here, larry, is everybody thinks about "abraham accords" as a peace agreement and how it comes. the truth is that people don't know the main factor in driving the "abraham accords" was one thing, which is containment of iran and how did we do it? first we killed their number two guy right? we took him out in iraq. they couldn't do anything, they shot a missile, it exploded nothing happened that was the single greatest thing that enable ad peace agreement. it was peace through strength. larry: going beyond that, we enforced the trump al administration enforced the sanctions instead of 3 or

4 million barrels a day, it was down to 3 or 400,000, am i wrong, adam. >> you're correct. when you release tens of billions of dollars when you relax things, whether it is a specific official response or what happens the oil at that is very clear, you're empowering a region game, that is what drives something like this what we see hamas did, which is proxy war between iran, united states, israel and friendly arab countries this is all iran-backed. larry: why does janet yellen who is a smart person, she is in denial about the sanctions? of course the sanctions have been lifted or they have been relaxed. iran has compiled almost $70 billion of foreign exchange reserves out of the blue! >> we're investors larry. we know what we do when we look at data here and the data is very clear. people are talking about the $6 billion. that is the tip of the iceberg, right? we're talking about tens and

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larry: so, you know, the bidens should stop playing footsy with iran and start enforcing the energy and financial sanctions for heaven's sakes. by the way, best of luck to my friend steve scalise and by the way, everybody, it's time for liz mcdonald. elizabeth: nobody does it better than you, larry. thank you so much. it's breaking news right now