larry: hello, folks. welcome to kudlow, i'm l arry kudlow. so israel and hamas have reached a ceasefire deal. but are we handcuffing israel in their fight to destroy terrorism? senator john b barrasso on that and trump energy

revolution, trump cabinet nominees seem to be sailing through, and are markets ready for "shock and awe" tariff, congressman jim jordan and steve forbes waiting in the wings but first grady trimble. live in washington. on today's hearings, so grady, what happened today? looked pretty good. reporter: most con de contentious of hearings was pam bondi, president trump nominee are in attorney general, democratic questions question how she could serve in the role as she is close friends with president trump. democrats asked her who won 2020 election and grilled her on whether she would use deputy of justice to go after political opponents to which bondi responded she would not be doing that, it has been happening in last 4 years in this

administration. she will stop it. senator marco rubio and sean duffy received bipartisan praise at their hearings to be confirmed as secretary of state and transportation respectively. same for john ratcliffe, trump's pick to lead cia, democrats hit trump nominee to head office of management and budget for 6 time, russ vought. >> we have to use taxpayer dollars wisely because inflation driven by irresponsible federal spending taxes americans twice. reporter: and energy secretary nominee chris wright outlined plans to unleash american energy to bolster the national security, democrats focused on climate change. larry: just, yep. i get it good report grady, you know some things never

change. now, let's go to the white house, edward lawrence has latest take on this israel-hamas cease fear,. suzie: i can tell you 33 hostages be released 23 of them are alive, they will go back to their families, about 500 days in captivity, 10 of them remains will be sent back to their loved ones for a proper burial, final fair well, hundreds of pale palestinians will be released. criminals some in jail for terrorist charms, ceasefire lasting fridays, joe biden team working on this hostage deal for months. >> phase one. last 6 weeks, including a full completes ceasefire, with bwithdrawal of i forces from all populated areas of gaza and release of a number of hostages held by

hamas. i am proud to say americans will be part of that hostage release. reporter: president-elect trump sent his envoy to ceasefire talks, he said, he is pressures hamas, saying we will continue to promote peace through strength through out the region as we build on momentum of ceasefire to further expanding the abraham accords, confirmation hearing for senator marco rubio, he was asked about this. >> i am very pleased to see the announcement today of the ceasefire and return of hostages let us pray it holds it is implemented. >> the good news, not just about cease fear today, that potentially, we have had a dynamic shift in region with an historic opportunity that changes the dynamics of what

might be possible. reporter: if it holds there are 75 hostages that will be in captivity, one more point, state department spokesman stephen miller saying that president-elect trump's team was critical in pushing this over the line. to get this deal done. larry. larry: thank you edward lawrence. >> so, are we hadn't cuffing israel in their fight to destroy terrorism and saving freedom in middle east and america? that is thesome of subject of the riff. >> any time hostages are released is wonderful joyous development. israeli and american families have suffered so much while children and spouses and soldiers, have been held captive in hamas' hell. let's start there. and be grateful for that. let's hope that the freeing of 33 hostages takes place. tragically, that number was

around 250, 15 months ago. several americans hostages are expected to be released in phase one. three presumed still alive. four of declared dead. even barbaric hamas terrorists have murdered the others. a hate crime against humanitarian. that leads to second point. which is a question. how good a deal is it? now, i don't know all details, perhaps no one knows this is the same deal joe biden wanted last may. and president-elect trump brought hamas to the negotiations table. by applying that hammer pledge that all hell would break loose if hamas did not free up the hostages. even joe biden state department said mr. trump's involvement was critical as our own edward lawrence just reported. but as former ambassador david friedman and others have noted, middle east war is not over.

according to reports, israel i troops will be allowed to remain for 6 weeks they are then expected po live, so-called phase 2 mandates a complete israeli withdrawal from gaza and some kind of a permanent ceasefire. at least a thousand palestinians including 200 who murdered israelis, they will be released from israel prisons, well, are they just going straight to gaza and resume their violent jihad against the israel and america? meanwhile, numerous reports suggest that hamas is regroup, we cruiting and reenergying. hamas leader sinwar was killed by israeli forces, but his brother mohamed sinwar is the new leader, if

-- a big if, hostages are released in two phases, and israel troops are mandated to live gaza, and a thousand palestinian prisoners will be released from israeli jails, and hamas' rebuilding itself, how can this be a good deal? now president trump is praising the deal. as an epic ceasefire agreement. and certainly he is his special envoy steve witkoff should be given the benefit of the doubt. and should be giv given credit for the hostage release. perhaps there are many back stage details we don't know about. perhaps saudi arabia has been persuaded by president trump to join the abraham accords. perhaps mr. trump will give israel a green light to bomb, ran's nuclear facility. perhaps idf still will destroy hamas all together.

as incoming defense secretary pete hegseth saved yesterday, he -- testified yesterday, he supported killing every last member of hamas, incoming national security s a advisor mike waltz republicked that and marco rubio testified if hamas is there there will never be a cease-fire, perhaps, but knowing what we think we know, hamas will remain in power in gaza. and israel military presence will end in gaza, not good. i thought we would just unleash the idf against all middle east terrorists and we would ought -- all be grateful to israel for saving their freedom and freedom in middle east, but saving all of the western freedom. and judeo-christian culture, and thereby saving america

as well. but putting handcuffs back to idf, will stop them from destroying terrorism. and stop them from saving freedom in the middle east and america. that is what worries me. all right. joining me now, welcome back old friend senator majority whip mr. john are are barrasso. happy new year to you, sir. >> great to be with you. larry: so you are long time member of the foreign relrelation committee, your take on this you may have heard my opening riff. and some of my concerns about this story, i love it that hostages will be released. hopefully. but i'm not sure about the rest of the story senator barrasso, you can help me out, sir? >> well, i agree with you, what you had to say, i don't

know details either, good news if hostages get released. but we can't stop until all released. if donald trump had not gotten reissuing lekked i reelected i don't think it would have come to pass, world is waking up to fact we have a new american president coming in to rebuild, reestablish, restore and do all things in terms of american power around the world, american strength and projecting that and bad guys are seeing it they are reacting as a result. with regard to israel we need to make sure that the security and safety of people of israel is preserved long-term that means hamas cannot be a to be rebuilt we know iran continues to fund hamas, they are on back foot right now, i think that will bet worse for them with donald trump in the white house. but right now, i think people of israel can br

breathe a s sigh of relief with donald trump in white house. larry: no question about mr. trump in white house and new policy. i want to ask sen senator barrasso, part of deal, phase two, israel has to remove troops from gaza. and hamas will be left there we are seeing newspaper reports, you probably saw them too, i believe front page of "wall street journal," today yesterday or day before. other outlets, hamas is rebuilding, sinwar's brother coming in to retake leadership, if idf is off the there, hamas will be there i worry that the war will no go on, and -- it will go on but two steps forward one step back. i can't figure it out. i was hoping we would unleash the idf for 6 months and finish the whole bloody

job. in gaza. you know that is what pete hegseth said yesterday in his hearing, but this deal does not seem to support that. i'm just asking you, you probably know more than we know. >> well, i agree with you, hamas has to be elimited or you have to worry about something happening began like 500 days ago, on october 7. hamas invading israel and mass ac massacre that occurred, that can never be allowed to happen again, only way i see that is with a c complete it is prod destruction of hamas. larry: do you think that will happen. >> we need to make sure we get all of the hostages back

and hamasa never able to attack again, talk about what is in detail, you make assumptions in hamas will follow what? a deal, i don't trust them that far. larry: 100%. appreciate that. senator barrasso moving to sunnier thoughts. energy secretary to be wright, had his hearing today in senate. mr. trump will overturn every single crazy climate change radical green new deal regulations. what can you tell you about that? i was talk senator blackburn yesterday, he may put out a hundred e regs on inainauguration day.

>> making america -- they will save money on energies. energy was on the ballot this year in election day, american energy won. if you want to have a strong healthy and growing economy you need affordable energy that is right there. for strong economy for a strong military, and i'm from wyoming, wyoming is america's energy bread basket, america is world ini energy super power, we will alike it again, president trump day one will sign enough executive orders to take handcuffs off of american energy, getting rid of electric vehicle mandates, and tax credits. and getting rid of this ridiculous moratorium on exploration and the ability for us to send overseas to our allies natural gas.

american energy. energy is known as master resource for a reasons, it powers our economy military it is good american jobs affordable energy is key to the future. larry: almost biden extremism,o blocking out fossil fuels, and trying to promote the electric cars, and mandates and emissions and tail pipes, they tried hard to persuade us. but you look at story you know this well as anyone, fossil fuel still 80% of your energy our power. after that money respond and r rhetorical nonsense and half baked lies, energy is crucial. base load senator barrasso will be some combination of natural gas, and nuclear, as we go forward for next 50 years, maybe for next

hundred. >> well i agree, president trump has put program an all-star team for his cabinet, we hearings today chris wright secretary of energy, and doug burgum there tomorrow. lee zeldin for the epa. they will put together an energy commission, and national emergency commission that will be able to oversee energy oil, gas, electric power all of those, and this will be american energy, american energy j jobs. we do it cleaner and better than anyone else, that is why emergency energy, master resource it is there to power country. larry: it will promote more growth and less inflation how about those apples, we like that last one. no blank check for california. federal government will try to be and republicans running federal government will try to be humane.

and helpful. and provide emergency assistance but, if governor gavin newsom and california democrats, continue their policies which related to climate, and empty reservoirs and fire hydrants, and bad forest management, bad water management, bad power management. this will cost you 250 billion, maybe more before all said and done. you are right, no blank check, they have to show legislative you know, hard print of daylight, they have to show you something has changed before tax payers give them all that money. >> it is heartbreaking what we're seeing e ein california, we have our wyoming national guard there, there will be help from federal government, you are right. there has to be accountability. it cannot be a blank check, who we've seen, even fire chiefs of l.a. county said

they were let town by mayor elected officials gross negligence at state and local level, fire department had 17 million taken away from budget, they were already stretched too thin. they used that more social program. you see governor took 100 million away from forest manage think. to be used for other things. you know i have a bill wildfire prevention act, we have it through senate energy committee last year. bipartisan, that sort of thing needing to a -- needs to be attached to any sort of money headed to california to prevent this from happening people of california were failed by their elected official in sacramento and l.a. larry: you know, senator, i pray for people in los angeles area. i pray for them, i do. but i also pray that gavin newsom state and local officials come to their

senses, you will give them that money, and something has to change, almost apocalyptic, it could have an unbelievable change in california politics, and i think you and others can help that change in california politics. carrots and sticks. anyway. senate majority whip john barrasso thank you, sir. >> thank you, larry. larry: coming up on kudlow, trump cabinet nominee seem to be sailing through, we'll talk about if with mike davis and ned ryun next up, you can catch kudlow monday through friday, 4 p.m. right here on fabulous fox business. and for some reason you can't get us at 4, please text your favorite 9-year-old, and she will show you how to dvr the show. and you will never miss a single apocalypse in

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>> my overriding objective to be return to deputy of justice to its core mission of keeping americans safe

and vigorously prosecuting criminals. if confirmed, i will fight every day to restore confidence and integrity to the department of justice and each of its components. part s partisanship, weaponization wil will be gone, america will have one tier of justice for all. >> i love that. pam bondi so fabulous, joining us now to talk about that. about pam and others, mike davis, founder president of article 3 project. ned ryun. thank you. >> mike davis welcome back. i watched a bit of it. i thought pam bondi was t spectacular, you tell me, democrats ankle biting about j-6 and retribution and kash

patel, they are ankle biters, that is all they can to. nobody offered support, nobody reached across you know, the aisle, we like when you are saying miss bondi, just a bunch of left wing brain dead democrat ankle biters, i say brain dead they have amnesia about november 5, amnesia. >> pam bondi hit it out of the park, demonstrating her decisive leadership. even smarted democrats conceded that pam bondi will win. larry: like who, maybe i'm being too hard. >> i think people down are morons. but people who know how to get thens done, like dick

durbin. >> no question. larry: ned ryun, what else, john c ratcliffe, marco rubio, and chris wright, they are strong players, this all part of trump revolution. in is part of one big beautiful bill. economic growth, get rid of inflation, secure the border, what did you can hear today, ned? >> i think you -- with pam bondi you say she since rested in re-- is interested in restoring trust to doj, idea of equal application of law rule of law. all stan equal before it i woulhope too, i think she will, transparency will be important in restores trust. i hope she goes out and releases all ofs documents that pertain to russian

collusion, january 6, and releases communications of this coordinated political lawfare against trump that ag garland and goj and i believe biden white house were coordinating. american people are owed transparency. >> but ned -- >> i think that pam bondi. larry: transparency yes, retribution, i don't think so. >> accountability, i think that there needs to be accountability. i think she should sit down and tell every attorney in doj you get to reinterview for your job. there needs to be some accountability for last 8 or 9 years, if there is none, you can't actually restore full trust in the institution. people think that power will be abused in future. larry: mike davis, i hear democrats were attacking my

friend c kash patel who will be fbi direct or, what is pam said and outlook for kash patel? >> kash patel will get confirmed. just like pete hegseth, just like pam bondi and the rest, kash patel is a experienced national security operator, he was a public defender he won awards from obama justice department for being a long time national security prosecutor, if he is so crazy, why did obama justice department give him awards. larry: i like that. terrific, mike davis, and ned ryun thank you, we appreciate it. >> coming up on kudlow, are markets ready for a shock "shock and awe" tariff? we'll talk about the cpi and market rally. but "shock and awe" tariff. taylor riggs, steve forbes,

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>> tariffs will make our country rich. >> won't they raise prices. >> properly used -- no, i continue have inflation, i had massive tariffs. tariffs properly used, which we will do and being reciprocal with other nation its will make our country rich. larry: live, that reciprocity. pspot o on, we hear from taylor riggs co-host of the big money show, and steve forbes, and john carney. breitbart economics and finance editor, a must read. steve forbes.

you hate this. let's start this discussion of tariffs. i think -- could be dead wrong. i think mr. trump will dive in with "shock and awe," meaning, 10% universal tariff. i will leave out mexico and canada, that is about the border negotiations, he may wait on that or not. but basic thrust will be 10%, not 1% a month or 2% a month it will be one big one, 10%, i think he will go after china with a larger tariff. attack this if you want. i think it is okay, if unfair trading practices, but exporters will pay half of the price or more to sell their goods here. meanwhile, as much as 500 billion dollars in revenues

per year is possible. and that will go to tax cuts to businesses large and small and individual families. so you know what, i think it is a net-plus, that is my view. i think that is what mr. trump will say, what says steve forbes. >> well this is why i'm here, and he is in the white house, i guess. tariff is another word for tax, econ tax, putting that 10% wedge in there what made other tariffs compatible he had a big huge beautiful tax cut in 2017. not until 2018 he started the tariff thing. he had an offset. if i am doing scenarioy would wait to get big fat tax bill through, by 4th of

july their paychecks go up because withholding is going down, any damage from tariffs will be consumed by huge big beautiful tax cut. i think that times will be critical. give something positive up front. in meantime he can tell people, everyone knows he has credibility on this subject, he wants changes like with original agreement with mexico and canada. it is 'timing, i think 'for tax cut first. larry: that is sensible. some people in administration will argue for that, i don't think he made up his mind yet, i'm not privy to anything. john carney, you don't believe tax tariff increases will be inflationary, that is defensible. what do you think about steve forbes? should mr. trump wait for tax cuts to kick in b before tariffs. >> no, he should not that will give people who don't llike tariffs, leverage

over him, they will demand concessions for tax cuts, he should put tariffs on almost day 1, but it important, that we match that withy it recession -- deregulation and tax cuts. free up u.s. businesses, you want to couple it with tax cuts. larry: taylor, i know everyone was swooning over cpi today, i want to raise related point. the new york -- empire state new york manufacturing thing -- >> plunged. larry: and i think industrial production, we really need the partnership first corporate tax -- 15% corporate tax on domestic produced good with his other package that extents tax

cuts and adds new wrinkles. >> i think if you are a small business owner right now, i am in favor of moving quickly on tax cuts. let's get work. y for a minutes, if i want to buy my equipment and know if i have to capitalize or expense it, i want to know, i don't want to have to wait to make that inve investment decision, i want it now to get economy working you get it in system, it shows up in numbers, by the time the midterms roll around. if i am a small business owner i want to know my corporate tax rate may go to 15%, allowing me to maybe hire a couple extra people, i can to it now. they give a since of urgency. >> one thing he -- that they should talk about. reducing capital gains tax. democrats will attack them, big deal, nice thing, it is instance revenue for the government. larry: we have to work on that, that is -- we have to socialize, that you are right, i agree, always agree

on cap gains. but push back on 15%. >> yes. larry: like corporate tax. >> sure, beautiful. >> i think you are 100% right. john carney, market up 700 today, bond rates fell a little bit. fabulous cpi number, but, problem, i like to look at actual facts, rather than wall street gossip, i know it is not 9% inflation i look at 12 month change, all items 2.9. help me out. the fed's target is 2. then, taking out food and energy which is stupid, but for so-called core that is 3.2 for last 12 months above fed's 2% targets, three month dhairve changes are worse. i am arguing that fed should

take winter off, spring off, go south, go fishing, whatever they do, don't go to california. and wait until mr. trump's big beautiful single tax cut energy border bill goes through. before the fed does anything. whatever the fed will do, they will screw it up, i mean that sincerely. >> you are right, their preemptive strike cuts rate was a disaster, inflation is not coming town, cleave cleveland fed. they have not moved. the trimmed means 3.3, been there forever. those are not coming down, those are signs of underlying inflation. there is no decline in underlying inflation, we get month-to-month up down this and to but not 2% or near

there fed will realize it. and they will created this false expectation they cut rates two times. >> so taylor. i operate under the rigorous analytic principle whatever the fed does wrong, so therefore i think their best strategy before the big beautiful bill can get itself passed is to nothing. just do nothing. you know. >> we have said, all the -- market participants that we talk on this together said you know when market does best, not when fed is hiking or cutting but when the fed does nothing, when we don't talk about the fed we can price mark to market, we have pa transparency in market, w when they are out of the way, not ma manipulating.

>> steve forbes. i know you don't like it appreciate it, we believe in free speech on this show. 10% tariff, i think will not only not disrupts the economy by make money that will translate to lower taxes, can i sell you on that? >> well, it may happen. all i'll say is i'd rather that big fat tax bill and put tariff sales tax off as long as you can, for fed, not doing anything, i wish they would do one thing, no longer manipulate t the economy, the market set interest rates, how d about that. larry: i am with you on that. >> amen. >> thank you very much steve forbes, john carney, and taylor riggs. taylor and brian laundrie anbrian brenberg. and jackie deangelis, thank you, fed should to nothing, have a "shock and awe" tariff. >> coming up democrats iny

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larry: democrats are still in denial. come on, take a look at these hearings, one after another, they are looking so bad, joining us now chair of house judiciary committee the great jim jordan of ohio. truly great. jim, i'm saying. i know different political parties, this is endless nitpicking, and replaying of the last election. and name-calling. and being rude and nasty. people look at this, you know if anyone from middle america is watching the hearings, the dems will come off looking terrible that is what i think. >> you are right, i thought pete was great yesterday, and pam did a great job today, helping one of president trump's nominee with a p prep session,

they will all do well, they represent from american people voted for, on november 5 american people said weme want folks running the agency who respect the american public. that is attitude of pam bondi and pete hegseth they did well. larry: you know, just more generally, we have scott bessent tomorrow. we had russ vought, important position. budget director, like democrats are not talking about policies, they go after personalities for the most part. you know, particularly with hegseth. but just like you will -- with pam bondi, will you have retribution, the poor people on j6 or, why don't we h hammer away on kash

patel, last segment someone mike davis said that c kash patel got an award during the obama administration, indecide of talking about america's future, growth, proper law and order, neutral justice department, let's get energy prices down, democrats missing all these points, jim jordan that is incredible to me. >> remember, they are party of crazy policies, i remember sarah huckabee sanders said divide in america today is normal versus crazy. we had the bill yesterday, two democrats voted for it. they are now left now controlling party, they are party of crazy, we're party says let's get back to common sense, good energy policy, to help with economy keeping taxes low to grow the economy economy is curing border rule of law. just basic common sense

things. that is what we're about that is why 77 million people voted for president trump. >> i think that republicans are doing a good job, i think nominations are doing good, they are taking the policy high road, i watched pete hegseth yesterday, i watched some of pam bondi today, i will try to watch some of scott bessent tomorrow, they are taking policy road, donald trump wants a new group to create a golden era of security and america first and economic growth, that is what folks' to hear, positive optimism democrats don't have an optimistic bone in their body. >> american people do. and it is there is a sense, i see it when i w walk

through airports now, people see me, they give me a thumbs up, they feel better about this great country, they feel they are moving back on right path this is a positive message that president trump has it is reflected in people he selected for key cabinet possess. positions. larry: one big beautiful bill. >> i think see let's get to done, i say, we make the job too complicated. what did we tell voterring we'll do, if you get elected, go do what you said. make america great. larry: home run, the great jim jordan chairman of house judiciary committee, thank you, sir, happy new year, appreciate it. >> i'll be right back with my last word. ♪ ...to empty nest... ♪ ...to free birds. ♪

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larry: that's it for kudlow, thanks for watching, folks. ♪ ♪ breath if breath this is fox news coverage of president biden's farewell address to the nation from the oval office. good evening, i'm bret baier in washington. it's a time-honored tradition, a president leaving office delivering final words about his administration.