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larry: two big stories we are watching right now, israel and the fourth week of work against the barbaric has more iranian terrorist and jay powell of the federal reserve leaves interest rates unchanged for the second meeting in a row. our own alex hogan and hi, larry. well, tonight, the israeli government is raising the death toll solemnly saying that 16 soldiers have been killed just in the last day alone. meanwhile, the idf continues to press forward in northern gaza, really targeted specifically as many ammunition hubs and tunnels as possible. the idf today laying out some of the weapons and vehicles

taken from hamas militants on october 7th. the numbers were surprising. machine guns, rpgs, explosives. these >> never civilians. >> this was hard to see. >> it gives us a look at what the idf expects in gaza. >> we believe this is a representative of the times that we will see. >> this is a homemade hamas rocket and the third one is north korean production and the last one is rpg. >> the idf continued to prepare for that type of weaponry. at the same time it's a text to find his targets on hamas as civilians continue to become more and more dire, many of the civilians trying to get out

especially foreign nationals who have been trying for weeks. tonight were loading more and more about the first group of passport holders that have been able to get out that includes a group of americans and a group of british nationals tonight saying they do everything possible to coordinate for these americans to lead by giving them designated time slot of when they can exit into egypt. larry: one quick question as the idf sweeps through the northern gaza area are the able to provide humanitarian aid on the way to palestinians? >> yes we see more of the humanitarian aid trucks from the u.s. come across the rafah crossing, there is an effort to get as many of those trucks further north as possible the idf is encouraging any civilians still there to leave and head south we have heard from international organizations as well as the palestinian red crescent on the ground that it's

really been a slow struggle to get aid up there simply because how dangerous it is. the israeli military has warned people in the north that they will continue to target that part. that is where they believe hamas operates and that's where most of the tunnels are and most of the militants are so it's definitely been a struggle to get that aid in their and the reason why they are pushing people and urging them to go south. larry: alex hogan, thank you very much, please be safe let's come home to washington, d.c., home, sort of the swamp. let's begin fox business corresponded edward lawrence, you are not swampy but you're covering the deep, and plain language what did the federal reserve chair tell us today. >> i live in the swamp and it does get hot over the summer. the fed chairman saying he believes inflation is moderated and feels better about the

chances that inflation will come back down. the fed chairman said he doesn't see inflation into the mid to the percentage until the end of next year and that it will be the target until sometime in 2025. i think it's important to hear the full exchange about why inflation remains elevated for how long as the fed decided to pause this time. listen. >> would know rate increase today how long would you be okay with a 3% or 3% plus overall inflation. >> the progress is probably going to come in lumps and be bumpy but were making progress. >> you said in the past doing too little could m take years to fix but the cost of doing too much could be easily fixed, how robust was the debate about this pause on the doing too little sites. >> that's always the question we are asking ourselves. we know if we fail to restore my

stability the risk is expectations of higher inflation getting entrenched in the academy and we know that's really bad for people. >> president joe biden also speaking at this hour the president will find nothing wrong with the academy even though inflation is up 17.7% since the month he took office wiping out all the wage gains. larry: great stuff edward lawrence, you ask tough questions, were glad you're there, thank you very much. folks on the show in a couple of minutes were good to talk to senator ted cruz he has new sanctions for hamas and iran it is really special ops officer aaron cohen former navy seal derek vandoren and chuck grassley on the breaking news of new biden scandal revelation including checks. anyway i want to comment on the economic story we've not had an economic riff in a while. wall street keeps telling us

that the fed is going to be lowering his policy in the market rates are going to fall back down the wall street has been consistently wrong on this the fed has tightened more in bond yields have gone out further than the street expected. my crystal ball is no better than anybody else's, i was very interested when janet yellen's treasury department this week issued their most recent financing details. in the big hats it to larry lindsey for writing this. the treasury now expects to borrow $1.6 trillion in the next six months. that is trillion dollars. october 1, 2023 and march 31st 2024, that would come to roughly 11% of gdp, those are big

numbers, virtually unheard of, 11% of gdp borrowing nothing like peacetime. today as edward lawrence noted, fed had jay powell remind us that the central bank will continue to reduce its holdings of treasury bonds and mortgage-backed securities. economists call that quantitative tightening. so far the fed has taken $1 trillion out of the high-powered money supply over the past year or so. but if powell and company believe there get his take another trillion of the money supply which leads to the question who exactly is going to buy the 1.6 trillion in new bonds. uncle joe biden can keep spending and spend he will just like he has the past three ye years, now it is foreign aid with the big dollop of emergency spending in areas that have no emergencies. it's a battle between guns and

butter. biden is choosing both like lyndon johnson over 60 years ago, johnson blew up the budget in the inflation rate by spending heavy in vietnam and the great society. biden is blowing up the budget on israel which i totally favor we need a mission statement exit strategy in a long conversation. mr. biden has peanuts for more babysitting at the open border down south. andy has this, $56 billion for various social spending that has nothing to do with anything except political election-year handouts. i'm going to come back all the borrowing the biden treasury announced his could to buy that stuff, the fed says it will, china has not been buying quite some time, neither has japan.

the consumer saving rate has come way down, that cushion may be gone. a lot of factors that drive up or down on interest-rate but sometimes supply and demand do matter because investors may well want to hire interest-rate to bail out. meanwhile over the last 32 months worker wages have gone up 15.5%, but the level of the consumer price index has gone up even more, 17.7%. so you have declining real wages in typical family incomes, some of us made the drop in median family incomes would be nearly $7000, that is the reason why bidenomics is so unpopular and is a question of affordability including 8% mortgage rate. folks are working hard and they can't afford the budget academy that's especially true for lower

income families with the poverty rate has shot up with the recent fighting years. what is the economic outlook. this is interesting. the biden treasury has says the fourth quarter will grow by less than 1% and for all of next year the treasury is actually predicting a minuscule 1% for the whole year, that is not much. meanwhile i would say with a topsy-turvy yield curve where short rates higher than long rates over year there is a 65% probability of recession. my hunch, middle-class folks are sniffing this out and that's why the giving bidenomics the lowest grades of any president in recent memory. just saying. with great pleasure joining us mr. ted cruz, senator ted cruz in the great state of texas. let's dive in and have some fun.

i don't know if it's exactly fun. the proposal for new sanctions on hamas and iran. i am all for it. i want to cut right to the chase. my view, hamas doesn't really have any money, iran has all the money, iran is the puppeteer in the financier. you say and this warms my heart because people have to, and save us very directly. you want to say you want to prevent iran from accessing and raising revenues, no unfreezing of overseas accounts including the $6 billion and the $10 billion. then you say you have the bill imposes sanctions on iran's ghostly of oil tankers which it used to raise $80 billion since president biden took office. these sanctions also target

tankers owners and operators and requires biden administration to work towards decertified indeed flagging the vessels. senator cruz, ever since this war started every night i made these points. i am very simple, i am not as smart as you, you're a brilliant guy i'm just a news guy, all i say is stop a ship. interdict and pound and stop a ship carrying oil to china and you will send the mole is an important message. that is my view, senator cruz this floor is yours. >> you are absolutely right. i start from a principal does not break obligated. stop giving money to terrorists who want to murder us. were looking at the were in the middle lisa israel is facing the worst attack israel has endured in over 50 years. joe biden goes on television and

says he stands unequivocally with israel. i'm glad the president says that, talk is cheap, action matters if you would help israel there is nothing we can do that matters more than cutting off the money that is funded the death squads and rockets that are attacking israel right now. how do we do that, we do that by targeting number one iran and number two hamas itself with iran there are a total of three pots of money, never one to $6 billion in ransom that the biden administration wanted to pay for american hostages. there is number two to $10 billion that they wanted to transfer from iraq to iran that is 16 billion if you rightly noted the biggest portion is the 80 billion iran has made from selling oil we have existing oil sanctions they are geocoding on. when joe biden came into office the iranian regime was on its knees, the iranian economy was

in shambles. the reason the trump administration on my energetic urging was vigorously enforcing the oil sanctions and caused a radiant oil sales to plummet. when joe biden came into office, his administration stopped enforcing the sanctions and right now the ayatollah is selling 2 million barrels a day of oil in their selling it primarily to communist china. this bill the hamas sanctions act cuts off every wanted avenues of revenue for the ayatollah and ayatollah is providing over 90% of the funding to hamas. we need to cut off their money but so far the biden white house is not willing to do so. larry: again, i totally agree, literally every night since october 7 i have talked about this, we talked about it with some guests, joni ernst has been

terrific on this as you may know in somebody's editors on both sides of the aisle have gone to israel but i think somehow, i don't how you do the senator cruz but somehow somebody or some group bipartisan hopefully but maybe not has got to get this administration to understand iran's direct role in the hamas murders into enforce the sanctions. they are there and we put them in the trump administration, they were good sanctions, treasury, nec, state department, the defense department, stop the ship, stop a ship, stop lobbying missiles into unmanned animal bases in syria stop and oil tanker bound for china, if you do that you get the attention and not as good as killing soleimani but it's not a bad start. with the biden's they appease senator cruz, they appease, they

don't deter they appease. >> you are exactly right, i would say two things, number one i do not understand democrats like joe biden they hate oil and gas if it's produced in america created american jobs but they love it what is produced by psychopathic maniacs who want to murder us that makes no sense at all but number two what are the things i like about your show you get into deep substance, let's do a minute of a deep dive on the history of oil sinks and iran. during the trump administration there was a big battle over indian the iran nuclear deal. the state department the defense department urged president trump do not in the deal and i vigorously argued with the president that he should end the deal and he agreed with me he overrode his own secretary of state and defense and he pulled out of the disastrous deal. after we pulled out of the iran deal it was still in place oil waivers they waiver that allowed iran to sell oil they were at

the time selling a million barrels a day of oil. we had a second fight a fight between the department of state and the department of energy. mike pompeo was the secretary of state and the state department argued don't end the oil waivers because if you do the global price of energy will skyrocket. larry: now, i think it was to listen. wait a second. >> on the nuclear deal it was to listen on the nuclear deal it was pompeo. larry: you know who argued and said don't worry about world oil the guy "kudlow" running the nec. >> at the department of energy. "kudlow" was right because trump ended the waivers and the price of oil did arise at all. larry: rick perry and i knew we were popping out 12, 12 and a half, 13 barrels a day nobody else could touch us. that was a good old days when the fossil spigots were open. that was biden problem, i'm running out of time but your

history is basically right and pompeo came around. minutia was skeptical on the oil argument but he did come around but rick perry and i carried the day. before i lose you as to get one more minute, give me one more minute between you and the producers i think i'm going to get shot. you cannot have guns and butter, you just cannot have it, this deal that president biden seems to want with $105 billion worth of foreign aid and another 55 billion with emergency spending has nothing to do with emergencies is all about the election year it'll be 200 billion before it's all said and done. cited are cruise, you cannot do this. this is the inflationary spending, the treasury is going cell $1.6 billion of bonds in the next six months. 11% of gdp, who is going to buy

the stuff? >> the supplemental proposal is doa dead on arrival there is no chance the republican house will pass it. the right thing to do is what the house is that break the israel military funding off separately there is a big i purchased the majority in both houses to provide military aid to israel and to stand with them unequivocally as they face this horrific war. if we take up israel aid on its own it will pass with massive bipartisan majorities. what the biden white house is trying to do is take israel aid and hold it hostage for all of the other partisan priorities. that is cynical and wrong. once we pass israel military aid we ought to sit down to negotiate on ukraine there is a difference of an opinion let's negotiate what is needed and if there's going to be a deal it will be a deal for some military funding for ukraine in exchange

for real policy changes that secure the border and stop the invasion at our southern border. i don't know the democrats will swallow that but that's only path i see ford agreement on that part of the proposal. larry: yes, sir, i with you what a present. senator cruz you are wonderful thank you for your time and sanctions and your good sense. thank you for your history. how's that. after all of that, coming upon "kudlow" we will look at some of the details of israel's highly successful strike in northern gaza this is very important we have a great and later on derek van orden a former navy seal just came back from israel he says is isis times a thousand. we are going to hear his stories, all of that when he joins us.

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larry: the israeli idf have have a very successful capture of a key hamas stronghold in northern gaza, joining us to talk about it is her prince of a friend

aaron cohen for marie operative, i don't think people understand how important this was and how they did it. we don't need a lot of stuff but you have perspective on this, this is a huge accomplishment and what i gather. >> let me make it really clear to those people watching, israel is operating a forward operating area, this is a complete war zone that is number one, number two this particular airstrike is what we call a danger close operation. what that means f-15s particularly in this case right now in the high probability that there was is really special operations, individuals so note there is a high risk to the commandos that were operating in conjunction with the f-15s, from what i understand they launched multiple specialized munitions for the purpose of being able to strike tunnels specific tunnel

or bunker or command center. let me say this israel has no interest in striking civilians, that is not their business there is no upside to hitting civilians. when actual intel comes in, those operations must be conducted very, very quickly, one to eliminate the command and control structure of hamas, this was hamas terrorist leader with multiple associates of his also in the upper french. to to continue to push forward with hostage rescue operation like we saw with the soldier that we brought back two days ago which i help break and hit israel and i put it on with martha on fox. operation is significant, notice when you look at the bureau you know seek gaza being leveled you see one building being hit that requires an incredible debris of

selectivity is israel wanted to turn the entire neighborhood and flatten it they will could. but they won't they want terrorist leaders. what other piece i keep hearing people say how can israel reduce risk to the gazan population, it's really simple it is to parts, let us destroy hamas, the sooner that they are destroyed the sooner the operations and military campaign the sooner it ends. time for queen tanya and elsie seeing king of jordan who is a good man he has relations with israel. it is time to open the gates and it's time for the arab world to step up, you know me i don't get political but it's time to let all the gazans being held hostage by hamas unable to move to the south go into the countries to get the aid in the reeducation that they need him to get the poison out of the education system. larry: those countries that you mentioned, egypt, jordan take

those two, they are not rooting for hamas, they do not want hamas to be supreme and strong. i gotta get out of here but it's a good point. the other thing you nailed this guy was a big commander and they nailed the trading center, that's a huge thing, aaron cohen. thank you. >> inch by inch. larry: i love it, thank you very much, moving along right on the story, bringing wisconsin congressman derrick van orden a former u.s. navy seal in the combat medic, thank you mr. van orden. you said the hamas terrorist are savages, the beast, you were opposed to the humanitarian aid and you basically say what you saw was the worst that you've seen in your military career and you been doing this for a very long time.

>> that is correct. i did counterterrorism and hostage rescue for over two decades and multiple combat tours on several different continents and what i was exposed to in israel is the most horrific thing i've ever been exposed to anywhere in the world that is very bold but truthful statement, what the folks did to the israeli people and the jewish people can only be described as absolutely horrific the. larry: derrick one thing as someone who agrees with you, i did not see it but i agree from the reporting, these protesters the pro-hamas, some anti-semitic may be all anti-semitic the worst thing i've ever seen but they talk about how israel is killing civilians, right at the start on october 7, the hamas barbarians killed civilians, they did not go after the israel

military they went after ordinary folks sitting in a peace concert and killed 1400 of them, deliberately attacked civilians now, i don't ever want that point to be lost in the history and reporting of this war. >> that is correct there is a principal called the fruit from the poisonous tree which means an action all subsequent actions that follow from that are based on that event. october 7 when the savages from hamas intentionally targeted thousands of israeli citizens and butchered them and raped them and burned them that was an intentional act. all of the things taking place in gaza right now, trust me it is tragic but all of the things that are taking place in gaza right now are a direct result of hamas attack on israel, they are the direct responsibility of hamas, the indirect responsibility of iran and unfortunately the also indirect

responsibility biden administration by funding iran and hamas. larry: gasser on all accounts. last one you are opposed to the humanitarian aid. >> yes israel is at work, at no time in 1943 did ftr called winston churchill and they must rush humanitarian aid to nazi germany. by funding hamas you can prolong this conflict longer and longer what needs to happen unconditional surrender to israel so they can have peace finally in their country. larry: thank you, congressman derrick van orden we appreciate it very much. coming up saturday chuck grassley. he is breaking news on more biden scandals.

what does it mr. biden understand he is undermined in the supreme court once again on student loan bailouts. we have congresswoman claudia tenney to weigh in. all of that when "kudlow" returns.

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larry: all kinds of breaking news on the biden scandals. were happy welcome back chuck grassley, 40 fbi agents of this potential cover-up $4 $40000 laundered money to china. senator grassley i almost don't know where to begin let's talk about the china laundered money, jamie comer, chairman comer says he has checks written out he's follow the money trail and it come from china, what do you make of that? >> it does not surprise me at all you may remember that johnson and i gave speeches almost two years ago where we had the checks displayed on the floor of the united states senate but what republican congress in-house has been able

to do, john said and i did not do they can subpoena and they're going way beyond what we exposed a couple of years ago and i think comer for doing that and it does not surprise me at all because we had initial evidence of this a couple of years ago. larry: it looks like, we have chairman comer on tomorrow night, but basically money from china was washed through several biden family accounts and finally sending a check to president biden. >> about about a dozen llcs in various forms of laundering money to various people in the biden family. we are getting more evidence all the time that some of this money went to joe biden.

larry: you sent a tough letter i think you sent last week or the week before. you want information and somehow you have heard that 40 senior fbi informants who filed 1023 reports about possible criminal activities by biden was all covered up by the fbi or covered up by the washington office of the fbi. >> these reports went from 40 different people who were confidential human sources, chs as the fbi calls it, confidential sources that went to various field office of the fbi and by the time they got to washington, d.c. there was a task force that was filtering this all into it looks to us like there is determinations that they just weren't going to follow up on it. my letter is an opportunity to

find out what has the fbi done with this confidential information from 40 different sources that seem to imply a wrong doing by various members of the biden family and we need those answers. we want the fbi to show us their work. >> senator grassley how did you find this out? >> your whistleblowers. all of my information that johnson and i have been working on have been people within the department of justice and fbi that want the government to do with the government is supposed to do, enforce the law, prosecute and have equal application of the law and they don't see it happening, and they come to congress because they don't get any further within the bureaucracy and the executive branch. larry: your letter went to merrick garland the attorney general. >> and the fbi. >> when you want them to res

respond. >> i think. we put in the letter is probably about up to that point yet. they really don't want to answer as but we don't give up we are going to keep pursuing this as i have since august of 2019. that was even before the words laptop or in our vocabulary in regard to the biden's and we just don't give up but were fortunate now that we have jordan and comer and smith in the house of representatives that are pursuing this with the power of subpoena so they're going to carry it forward in their working with us all the time. larry: senator grassley, for your entire distinguished career, you have never given up. never. >> thank you friend. larry: is my great pleasure to say it.

thank you for coming on the show with forward to the next step in this. thank you, senator grassley. joy to be no great friend super congresswoman claudia tenney. member of the house ways and means committee. you're not just a congress woman you're super congresswoman. welcome back, wall-to-wall coverage, we have not had time for claudia tenney. here they go again, this is crazy, they have four categories, five categories of student loans they want to cancel. you are a lawyer as well as a house member, you're on the ways and means committee, what is it that they don't understand about the supreme court decision that you can't cancel student loans. what is it they don't understand. >> they don't care about the supreme court this is abuse of power, abusive prices that's what the democrats are about the supreme court don't respect the supreme court this is about money and a form of money laundering if you want to look at in the legal way.

we decided we wanted to stop make college more affordable so we created a federal loan program that we make college so unaffordable to only 13% of all of these loans and 13% of americans have federal student loans. i'll tell you what the problem is each one of the students is a money bomb to your university they see a student say we can attach a federal loan to them and we continue to get paid and big administrative cost and we keep our cash flow going. that's really what they are they are cash flow and centers were joe biden has his donor base. all these universities and liberal elite universities like little mini bombs that donate to the democrats and funder machine, that's why he doesn't want to let the student loan issue go away it would force the universities to be more efficient, cut down on their administration and i'll tell you that has been private colleges who actually on their own reduced tuition substantially

because of trying to help their constituents. they don't want anything to do they want the federal loan program to continue, that's why biden does not accept the rule of law from the supreme court case which said what he was doing to try to eliminate student loans was illegal. even nancy pelosi the biggest abuser of power i have known in my political career actually said biden did have the power to cancel student loans but they're not going to quit, this is what his donor base wants. you cannot separate student loans from donor for the biden's after you talk to the great senator grassley on the other part of the biden correction scheme. larry: i'll tell you what else, i guess a lot of people would like to know if any of these cancel student loans go to students who are marched in anti-semitic pro-hamas parades in the recent last month. i bet you a lot of americans would like to know that factoid

as well. just saying. >> recently what, how do we find out. the desperation from the biden administration to save the universities through the federal student loan program is showing the crumbling of the university systems in addition to this horrible situation we are seeing on campuses where students are actually celebrating and protesting, celebrating a murder and terrorism against armas reliable and most important ally in the middle east israel. i'm not too far, my district i surround cornell university. i wrote a letter to the university president last week saying this professor who described the killings by hamas in gaza is exhilarating and should be removed from office, so far they put them on leave but that's where we are right now and last week we saw the student, a couple of days ago the student that was finally put

and charged by local authorities for his anti-somatic and death threats against innocent students at cornell who were harbored up in a dining hall. larry: claudia tenney. thank you very much. keep an eye on it. coming up and i have $1.6 trillion of new bonds the treasury wants to sell, 11% of gdp and who exactly is going to buy them, we will talk about it with kevin hassett former chair of the economic advisors in the trump years. if anybody knows, he does. i am "kudlow", we'll be right back.

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larry: question, we set up a four, the treasury is going to sell 1.6 trillion worth of bonds the next six months, 11% of gdp and i keep asking who is going to buy them, jointed us now with all the answers as always kevin hassett former chair of the council of economic advisers during the trap of administration author of the most important book of the 21st century it is called the drift, stopping america slide to socialism. the fed says it's not going to

buy them, china has not been buying, japan is not buying you have to wonder about the saving rate is down who's going to buy the bonds? >> what's going to happen as our old friend art laffer top you would me a long time ago the market will clear because interest rates will go up so high that somebody will come around and have to buy these things but the gossip from the auctions, there are enough people showed up to buy treasury bonds already with all the new issuance, the only thing that can happen is interest rates are going to have to go way up to clear the market, as bad as it is right now with the tenure around 5% i'm expecting another percent or so on that because only way you will get to man is if the interest rate goes up a lot. larry: in all seriousness, that is a lot of money, 1.6 trillion that is only half the year, it's not 12 months and six months. reading larry lindsey who is a smart fella and a dear friend,

11% of gdp. those are as big of numbers as i imagine and now the curve is still inverted in the treasury, did you see the other thing the treasury forecast looking for less than 1% growth in the fourth quarter and only 1% next year they will be lucky to get 1% next year. what do you think of that. >> i think we will get that may be a little more but inflation is it much below 4% as you and i discussed it. bonds cannot go down even with a slow growth, this is a stagflation that you and i have been talking about for a long time. as bad as it is right now unless we get a new president and a new policy right now the c.b.o. says we will have 25 trillion in new bond issuance over the next ten years. if you buy one now there will be a big increase of supply ten years from now at 3 trillion-dollar deficit.

the price of the thing that you're paying for now will have to go down. it's a really bad situation that the reckless policies have given us. larry: 25 trillion, there has to be a change you are 100% right, thank you, my friend, we willl talk soon. talk soon. we'll be right back with my las word. you sell high commission investment products, right? (fisher investments) nope. fisher avoids them. (other money manager) well, you must earn commissions on trades. (fisher investments) never at fisher. (other money manager) ok, then you probably sneak in some hidden and layered fees. (fisher investments) no. we structure our fees so we do better when our clients do better. that might be why most of our clients come from other money managers. at fisher investments, we're clearly different. (sfx: stone wheel crafting) ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently.

it still does. what can you do with spy? ♪

ow! uh oh. you, ok? no... i mean yeah. -just hit my melon. -yikes! should we see a doctor? i can't tell a doctor i slipped on a toy. i'm a triathlete! i had a concussion.

most happen doing ordinary things. sometimes the tough thing to do is to get help to prevent serious damage. i like your sensitive side. don't mess with your melon. if you hit it, get it checked. ♪imagine no possessions ♪i wonder if you can ♪no need for greed or hunger ♪a brotherhood of man ♪imagine all the people ♪sharing all the world...you, ♪you may say i'm a dreamer♪ ♪but i'm not the only one

♪i hope some day you'll join us♪ ♪and the world will live as one♪ larry: that is it for "kudlow". thank you for watching folks. ♪