federal reserved today, 2:30 p.m. let's get some final thoughts. adam johnson. >> buy nvidia. here's why, the stock fell 20% on the news out of china on this deepseek thing, except the chinese used 20 2,000 nvidia -- 2,000 nvidia chips. >> i think i'm excited about president trump. look at the progress he's made compared to what biden-harris did in fur years. maria: it's pretty amazing. lily. >> yeah. as a business owner, i'm excited about that. pro-business, let's get the work and make it easier to be productive. maria: thank you so much, everybody. adam, mehek and lily. thank youment if stay with fox business. "varney & company" picks it up now. stu, take it away. stuart: good morning, everyone. how do you downsize a unionized federal bureaucracy?

answer, you offer buyouts. that's what the trump team is doing. last night e-mails went out to 2 million government workers. if you don't want the come back to the office, resign before february the 6th, and you will be paid many if full untilseptember. the the offer converts union jobs to the at-will jobs. it saves money, maybe $100 billion. the trump team expects 200,000 government workers to take the offer. a that's how a business guy like trump downsizes the federal government. however, a judges has issued a temporary block on trump's order to freeze federal grants and loans. it would not have affected government payments to the individuals, but senator schumer said the freeze was illegal. a judge agreed. >> to the markets. how are we doing after the big selloff on monday? let's start with nvidia. trump's a.i. czar says there, quote, substantial evidence that that china's a.i. sensation, deepseek, distilled, his word, distilled information from

america's openai. that suggests china that relied on us to help deepseek perform. nvidia down $2 today. the dow industrials, they will open in the red, same with the s&p, minor gain for the nasdaq composite, up about 20-odd points. now, microsoft and meta, they report later today. to here's where they are now eight hours before we see the official numbers. we have meta up, microsoft down a fraction. bitcoin this morning, i'm quoting it at $101,000, 101,8. we have treasury yields little changed, the 10-year treasury yield looking at just over 4.5%, 4 4.523 the 2 right now -- 4.52, and the 2-year, 4.19. on the show today, the deportations begin in new york city, and new yorkers love it. here's the coffer of the new york post -- cover of the new york post. congress begins an investigation of sanctuary cities. some are still protecting

migrant criminals, but the resistance is largely crumbling. the end of of the sanctuary movement may be in sight. we're going to check out the performance of karoline leavitt, trump's 27-year-old press secretary. she is definitely no nonsense. and you will see the hearing for rfk jr. for health secretary. so far all trump's nominees will be voted in. kennedy is considered contentious. this morning he's saying he is not anti-vaccine, he is pro-safety. wednesday, january the 29th, 20 the 25, "varney & company" is about to begin. ♪ ♪ ♪ stuart: that's chuck berry. doesn't he make you want to get up and go? love that rhythm. ing. >> -- taught him everything he

knows. lauren: really? >> >> back to the future. [laughter] stuart: you had to chuck that one in, didn't you? [laughter] a deserted sixth avenue. that's congestion pricing for you. let's start with -- i think this is an extraordinary announcement from president trump. he's offering buyouts for federal workers who resign by february the 6th. lauren: yeah, good morning. stuart: i'm told he expects maybe 20 the 0,000 federal workers to take him up on the offer. is that accurate? lauren: the white house says 5-10% of federal employees could take him up on this. there are about 2 million federal workers. they wouldn't all be eligible, but money theless, this is hundreds of thousands of people. a memo timed fork in the road sent the federal employees says the payments would to go through september 30th, so eight months of pay that employee if resigns before next thursday. buyouts can be effective in the private sector, but this is being applied to the federal sector. and the administration does estimate taxpayer savings of up

to $100 billion annually. that's per year. stuart: i think that's absolutely brilliant, i really do. that's a business guy ache thing on the federal government -- taking on the federal government. lauren: sure looks like that. stuart: listen to what lawmakers had to i say about trump's federal funding freeze. >> this is what a king does. this is not how a democracy works. >> a lot of these grants were predicated on illegal dei. i think it's appropriate to to look at it and make sure there isn't nefarious actions at the end of the biden administration. >> the president does not, no report in what -- no matter what he thinks, have the authority to ignore the law and ignore congress. stuart: fortunately, we have todd piro here to absorb some of my emotion. [laughter] he lost it. a judge has paused the funding freeze. he lost this one. >> paused for now. and let's be clear, this is a biden-appointed judge. but let's focus on the sound

bites mostly prosecute if left. they are hyperventilating as they often times do because karoline leavitt said on the podium, we're going to to go after a few targeted private and public entity it is. we're not talking about medicare that we're cutting, we're not talking about social security. what we're talking about are those entities that are running rampant through the federal government. you mow the ones that have a -- you know the ones that have a budget of $50 billion. that's how government works. they don't need all $50 million. their utility is the what that that organization provides to our country is questionable and dubious with at best, but they get $50 million every year, so they feel like they're entitled to it. trump's just saying i want to looked at all of these things. one, see if there's fraud, two, if these priorities are necessary for our country, and if they're not, we're taking the money. stuart: trump will get to it eventually. todd, stay there, please. want you for later. the a.i. czar, david sacks, he was asked if deepseek stole

anything. watch this. enter there's substantial evidence that what deepseek did here is that they distilled the knowledge out of openai's models. and i don't think openai is very happy about this. and i think one of the things you're going to see over the next few months is our leading companies taking steps to try the prevent deaths can distillation. so -- prevent distillation. so we'll see if they can prevent distillation by third party company. that would definitely slow down some of these copycat models. stuart: kenny polcari with me. is deepseek going on the a lingering problem for the a.i. rally? >> i don't think so. i thought it was well overdone. there's some conversation about lower cost models eventually coming, but competition is good. i don't think deepseek alone is going to end up being this lingering problem. we heard from asml morning, they reported great numbers, and they don't think all this excitement

is only going to create more demand for if chips, the try and a.i -- stuart: you bought nvidia with. >> nvidia, as america l and marvell when they went on a fire sale on monday, down 18%, 17%, 15%, or right in it was ridiculous. these are the biggest names in the industry. these aren't small cap names, these are large, mega-cap names mt. tech industry. stuart: three of the magnificent seven stocks report after the bell, meta, tesla, microsoft. what do you expect to hear from them about deepseek? >> well, that's going to be interesting, right? are they going to kind of incorporate any kind of commentary considering this just came out on monday, sunday night, monday morning, are they going to incorporate some of that that into their commentary? i suspect that they will, but i suspect they're going to push back on it make as if it's it's not a tremendous the problem. i don't think any of of it's going to affect their commentary or, clearly, certainly not earnings because -- stuart: it would be a sensation sayings if they said we're back

off. >> 100%. they're not backing off. stuart you can't say that. lauren: [inaudible] i think meta's going to to say we take credit because our open source model relates more people it, lets more people build on it and even mess up with it. stuart: kenny, you're with me for the hour, you luck e lucky -- >> i am. stuart: karoline leavitt, the new press secretary, she says changes are comes to the white house press briefings. watch this. >> in this white house will lead strongly in the first amendment, our team will work to store the press passes of the 440 journalists whose passes were wrongly revoked by the previous administration. we're also opening up this briefing room the new media voices. we welcome independent journalist, podcasters, social media influencers and content creators to apply for credentials to cover this white house. starting today, this seat in the front of the room which is

usually occupied by the press secretary's staff will be called the new media seat. stuart: well, todd piro, she did well, did she not? >> day one. stuart: press briefings are going to be like day and night compared to the biden offerings, shall we say. >> no binder -- [laughter] actual answers. and, yes, at some point there's going to be contentiousness, but let's focus on what she said there at the end. she's going to open it up to podcaster, social media influencers and the like. why is that important? because that role exists. to distill the president's message to the american people. and in the past, the focus was, oh, we need to distill it to abc, cbs and nbc. well, you know what in the majority of american people are not getting their news from those entities anymore, so you need to meet the people where they are. they are in all those the other entities, podcasts and the like. you need to meet them where they are. that's a brilliant move but also a necessary move to communicate what our government is doing to

the american people. stuart: it's like day and night with biden. day and night. there you go. thank you very much, todd. former democratic vice presidential nominee spoke about losing to trump. lauren: he told msnbc it is, quote, pure hell. watch here. >> everybody's fatigued. trust me, i get it. it was pure hell in the disappointment and frustration. and i'm soul searching, what could we have done to make case, because we knew this was coming x. we're throwing so much at us that we're fatigued. lauren: a sense of defeat is palpable, but i didn't hear much self-reflection. he continued on and said, look, i am so encouraged to keep fighting back. [laughter] against what? stuart: i'm just trying to figure out -- lauren: soul searching. stuart: how would the market be reacting, how would the economy be playing if harris had won the election and tim walz was the vice president? heroin lawyer well, she was the a.i. czar, so i'd be very

curious to see her commentary on what we saw monday. >> she was the border czar too, wasn't she? lauren: that too. [laughter] stuart: thanks for pointing that out. coming up, president trump's going the sign an executive order to pull federal funding from schools that teach critical race theory or radical gender a ideology. we'll see what senator tim scott thinks about that. in the wake of the recent i.c.e. raids, chicago's mayor brandon johnson says he will still work to resist trump. >> we will continue to protect civil and human rights. what this administration is attempting to do, he's attempting to get us to surrender our humanity. stuart: is he really going to protect criminals, rapists and murderers? is he going to do that? what's going on? if we'll take the it on, for sure. while the majority of house republicans gathered in florida for their policy conference, texas congressman chip roy called the whole ordeal unity without purpose. does that that mean the freedom caucus will go against the trump agenda?

if kentucky congressman andy barr responds the that. he's next. ♪

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stuart: 14 minutes to the opening bell. dow's down 50, nasdaq up 28. modest gains, losses all around. big tech, let's have a look, where are we now? moth -- microsoft is down a little, $445. it reports this afternoon. apple's down $3 at 234, meta reports this afternoon after the bell. some republican house

members chose to skip the two-day retreat if in doal, florida, and it included texas congressman chip roy. he called the event a waste of time. kentucky congressman andy barr was at the event, and he joins us now. congressman, will the freedom caucus vote against the trump agenda and, therefore, defeat it? >> no. and i'll tell you why, because, stuart, as you well know, president donald trump is an historically consequential president. and 77 million if americans, including the constituents in the freedom caucus members' districts, today voted for this agenda. and it is our job to deliver on that agenda. stuart: yeah. but chip roy is pretty -- it doesn't sound like he's going to vote for the trump agenda. he just doesn't sound like that. and there's such a slim majority of republicans in the house, you can't afford to lose one, two, three votes. you can't afford to lose them. >> that's right, we can't afford to lose them, and unity was key.

and that was the message from president trump here at our meetings, was we've got to stick. to look, the democrats and the left stick together. they've got all the wrong ideas, all the a wrong policies. but you've got to give them credit, they stick together. you owe it to your philosophy to win, and i want to the win, and i want to win for president trump and for our constituents and the american people. as i said before, president trump has a mandate. he is a historically consequential president. we have a job to do, and that is the stick together the deliver for the american people. chip will be with us in the end. president trump will make sure of it. we will make sure of it. stuart: 15 house republicans did not attend. where does that leave speaker johnson? >> well, look, speaker johnson is right there with the president, and he's done a good job of facilitating these meetings. this has not just been a pep rally, stuart. these have been working

members -- working retreat. members when weren't there were missing out because we had constructive conversations about extending the tax cuts, border security, increasing our national defense and making sure we depoliticize our military can and make sure they are focused on lethality and readiness. we talked about importance of unleashing energy production and if deregulation and doge and making government more efficient. so this is the agenda that donald trump was elected to accomplish, and we owe it to our constituents to deliver for that. the country needs this, and i think what president trump brings to this country is a new sense of hope, a new sense of optimism, of confidence. and we see that in our own constituents. the small businesses, the manufacturers in this country who believe again in the american dream. stuart: republicans want to to cut government spending. that's' one of your priorities. the that's certainly chip roy's

priority. what you got this morning is this buyout plan the lower the number of federal employees and maybe save $100 billion. maybe you can spend less and save more on that side of the ledger than you could with just cutting legislation to cut pending. do you see what i mean? spending. >> this is exactly why we need president trump and why he's so consequential. he along with elon musk, doge, members of his cabinet, they're thinking like business people and successful business people and entrepreneur ifses. and we need to dramatically shrink the federal government not only just to pay for border security and increasing military readiness and the tax cuts, but also because the american taxpayer deserves an efficient, more effective government. and we don't need the bloatedded bureaucracy that interferes with our private economy. i love what incoming secretary of treasury scott bessent said

to me. he said with president trump, we're going the reprivatize the american economy. step number one is to rea deuce the federal work force to get the bureaucrat as out of the way. stuart: it will be a very big deal if trump's agenda in the house went down to defeat. let's not even think about it. congressman, always a pleasure. we do appreciate it, sir, thank you very much. >> thank you. stuart: next case, florida police intercepted two vans carrying more than two dozen chinese nationals. what's is -- the significance of that? lauren: the way they came in. 26 came by boat in florida and then they were put into two vans. a 911 call came in, so authorities went to the reported location where they were able to intercept tease two vans. they detained two suspected human smugglers, one of cuban descent, one of puerto rican descent. authority it is also a say a firearm was recovered plus documentation and currency.

and check this out, this is what the president posted earlier. he said the average daily encounters, this is at the border, in his first seven days has come in at 148 on the right. that's down 93% compared to the average over 2 the ,000 in biden's last 19 days. stuart: okay. i'm -- lauren: a 93 % drop. stuart: that's extraordinary. just an immediate change in the situation. lauren are, thank you very much. check futures, please. a little bit of red ink for the dow and the s&p, a little bit of green for the nasdaq. how about the 10-year treasury yield? just around 4.5 percent, 4.52. bitcoin down to 101 the last time we checked. it's now 102, got it. the opening bell is next. ♪ you light my morning sky with burning lo ♪ -- love. ♪ if ooh, ooh, ooh, i feel my temperature rising ♪

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♪ oh in a factory, there was a glove ♪ ♪ a tougher kind of glove, ♪ ♪ like you never did see... ♪ ♪ now the cloth is strong ♪ ♪ stronger than the flames ♪ ♪ the flame is in the heart ♪ ♪ and the heart is in the work ♪ ♪ the work builds the life ♪ ♪ where we're safe at home... ♪ jpmorganchase invests in manufacturing to help create stronger communities. ♪ make the green grass grow all around all around ♪ ♪ make the green grass grow all around ♪ ♪ stuart: l. three minutes to the opening bell, a little bit of red for the dow and the s&p, a little green for the nasdaq. shah ghailani joining we now.

you bought nvidia on monday in the middle of the deepseek selloff. you are the king of dip buying. i guess you're happy this morning this. >> very happy, stuart. when a company like nvidia goes on sale, which doesn't happen that often, well, not often enough as far as i'm concerned, absolutely an opportunity for anyone who's been on the sidelines or to add to positions. we added to our position. i'm very happy so far to do it. and, by the way, i'm not sure this dust-up is over. if nvidia dips more, we would certainly add, but i'm not so sure nvidia habit already seen its bottom. stuart: you don't think deepseek is going to be a problem for the american a.i. guys much longer? >> it's a problem in the sense that if those folks in china have been able without infringing on perhaps openai's ip to create what they created, about $6 million, yes, it's a big problem for american businesses who have, obviously, overspent and will continue to overspend. that's the, shy.

stuart: okay -- that that's the issue. stuart: microsoft reports after the bell. you think end up buying tiktok. >> i don't know if they -- there's a rumor they've certainly expressed their interest. they have the wherewithal, i don't think there'd be any impediment, i think it'd be a huge positive for the company ask for the stock. stuart: but you don't know whether they're going to pull the trigger. >> i'm hoping they are. i bought more microsoft on account of that hope. it's a bit of a wing rain a prayer. there's no announcement and hasn't been, not so sure there will be, but certainly think it makes a lot of sense. stuart: now, at their earnings report this afternoon just after 4 p.m. eastern time, they'd better make a firm, continuing commitment to a.i. and spending money on a.i. they can't pull back now, can they? >> no, they can't pull back. they're going to to get a lot of questions, the q&a farce the earnings call about -- as far as the earnings call ab their spend, about what sort of

monetization they're likely to see, what they have seen already. there's going to be a lot of questions about deepseek and whether or not they believe deepseek infringed on any ip, is so they're going if to be -- that's, i think, the core of these earnings calls coming up are going to be about a.i. spending and the ability of these companies to turn that, manifest that into profitability. those are the questions that they should be asking. stuart: are you buying any tesla? i can't remember whether you're in that or not. are you buying it? >> don't own tesla. it's that had a heck of a run and i'm sorry i'm not in it but, no, not buying tesla. stuart: okay, we got it. shah ghailani, thanks for joining us. always a pleasure. thanks very much, indeed. the market is about to open. they're ringing the bell, that means you have got 10 seconds million the first trade. and on the right-hand side of the screen, somebody at the nasdaq presses the button, and we are trading. press it, there you go. take a look at where we are right from the get go. dow industrials down about 40 points, about 44,8.

and there's a bit more green than there is red. so there's some buying of the dow 30. we just turned positive. s&p 500, slightly lower, down .13%, not much movement. the nasdaq composite, they got some movement there on the upside. no, got it wrong. on the downside. down .18 %. and if you look at the dow 30, there's a lot more green than red. big tech, where are we? across the board we've got amazon up, the rest of them are down. alphabet, meta, microsoft, apple on the downside this morning. now take a look at asml. now, this is the company that makes the equipment that makes the chips. good morning, taylor. >> good morning. stuart: look at it go up, a 5%. that that's helping the whole a. a.i. business. >> dare i say big sigh of relief, especially what we saw on monday, right? again, what we got from asml is they said their fourth quarter bookings were up 69% year-over-year -- 169%.

what you can take away, there is no dropoff in demand for chips because all of a sudden deepseek says they can do it for a quarter of the cost and for way cheaper and with fewer chips. asml still sees a lot of booking demand and at least for now the fears about a.i. have subsided. stuart: kenny, you bought asml, you bought nvidia, marvell, you feel vindicated. >> well, sure. those stocks, they didn't just pull back, they got hammered on monday, right? nvidia was down nearly 21%. that's a sale that you want to take advantage of. that's not like saying, okay, it dropped 2%, that's not the a move. down 20% many two days in nvidia which is a big, mega-cap name in this space, you've got to buy it. stuart: it was irresistible. >> asml are, they doubled the bookings over what analysts had projected x. to your point, it's the biggest european opinion manufacturer across europe, so

it's just a solid mega-cap name in the space. stuart: three of the magnificent seven report after belled today. taylor, let's start with microsoft. what are you hearing? >> so we actually might want to get some commentary about deepseek especially because microsoft does have that partnership with openai. stargate, again, because of that partnership with openai. a lot of questions about cap-x spend as well given what we've been talking about this week and whether we think a.i. is cheaper. revenue about $69 billion, that's up from 62. and forward guidance about $70 billion in sales. stuart: that sounds healthy. what about meta? >> similar story. again, a lot of questions given just a week ago they said they want to raise their cap-x guide to about $65 billion. does that stand? otherwise look for revenue up 17% year-over-year, epf up 27 -- eps up 27% year-over-year. stuart: tesla is below $400, 39

if 6. they report today. >> yeah. tesla's always an interesting one because, remember, we got the deliveries. we have the actual car numbers. we know that the 3 and the y were some of the most successful last quarter. now we're going to get the numbers. and this has always been a margin story especially with unit costs per vehicle coming down. can those margins really shine. look for about revenue, $28 billion, up about 9% year-over-year. stuart: why is djt up so much today? >> you know, i have been waiting my well life to talk to you about this stock. of. [laughter] stuart: really? >> every time you come to me, i say i have no fundamental news, nothing the say, donald trump's doing great in the polls. well, e come to you with with fundamental news today. i finally got you. okay. so djt says that they are coming out with this cryptocurrency platform. the custodian, we hear, is going to be charles schwab. basically, they're offering bitcoin, cryptoto currencies

through separately-managed accounts, etfs to just try to what they're calling provide more financial tools for what they're calling american pate are lots. stuart: what have you got to say about this? >> it's more than just crypto. it's about investment, it's about allowing people to jump in, supporting him and investing, right, with etfs and cryptocurrencies. charlie schwab, you know, that's great for people. stuart: it's just an extraordinary stock. >> yeah. stuart: so different. >> it's actually a very good story, i think, today. >> good. stuart: starbucks, they reported, got it. they're cutting nearly one-third of hair men menu -- their menu. i don't like waiting in line for all these people that that want these little, tiny extra thats. >> i know, like the cake pops that are so good? if i know the grandkids love 'em. stu, we talked about this yesterday. this is the second quarter for brian niccol to try to turn this company around. same-store sales were, indeed, better than expected but still

down about 4%. so it's the fourth consecutive quarter of declines but, again, the ceo saying it is getting better. they are removing those extra charges for non-dairy products, slashing the menu, as you mentioned, by 30% to simplify and make sure people are coming back to the score -- stores. it's a story that's playing out but will take more time. stuart: last one, alibaba. they've released a new a.i. model. how does it compare to deepseek? >> yeah. ally baa what is saying it achieves competitive performance against some of the temperature-tier models and surpasses deepseek's a.i. molds across various benchmarks. we don't have a lot of details, but again, feel free to disagree with me, more a.i. ised good. i think that that means more competition, and the cheaper it is, the more there is going to be. not unexpected that competitors are coming in. stuart: here's the last one. this surprises me. oppenheimer down graded apple. that's sacrilege, isn't it?

what did they do? >> yeah. when you go from an outperform to a -- is rare. looking at reduced iphone sales in the next 12-18 months because of, a, more competition from china and, b, the lack of excitement around apple intelligence. is that really going to accelerate me buying a new $1,000 phone? oppenheimer seems to think it may not. stuart: got it. kenny, you brought us a stock pick, and it is an etf. consumer staples, spdr fund, xlp. >> right. it's an etf that represents the consumer staple acquisition. all your kind of boring consumer staple names. and then in an environment where people are nervous and you want broad exposure, payplaying the xlp is certainly a great way to play it. you get exposure across the board, you're getting great

exposure across great names and it adds stability and balance to the portfolio. stuart: i just want my stocks to set the world on fire. >> okay. every one of them can't set the world on fire, it's good to have some stability. stuart: i missed nvidia too. [laughter] thank you, kenny. coming up, the house oversight committee investigating sanctuary cities. jim jordan will tell us if it's possible to end their sanctuary status. could be. union membership in america fell to a record low last year, we have the full story. and the white house says trump's plans for tariffs on mexico and canada are still on the books for saturday. >> he expects every nation around this world to cooperate with the repatriation of their citizens. february 1 1 is still on the books. stuart: economist john lonski is here. he's going the tell us what happens. if the tariffs are, indeed, put in place on saturday morning. morning, john. ♪ ♪ if

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♪ stuart: the energy company, ge, has announced a a near $600 million investment in america. ashley webster is at the plant in greenville, south carolina. what's that money going to do, ash? >> good morning, stu. that money will be used to make more of these giant pieces of machinery. this actually is a rotor where air and natural gas comes in, it come busts and pushes energy out this end. all of that, by the way, is put merchandise of this big beast -- inside of this big beast. this is the 7h gas turbine. it can provide enough energy by itself the power up about half a million u.s. homes and business with is booming. they sold eight of these in 2023. last year they sold 25 and

already this year the orders are coming in for this year and beyond. and, of course, all of this is great news not only for ge vernova a, but for the white house as well. i put that question to the ceo, space ec, and here is what he had to say about working with the administration. >> we're motivated to serve this administration. when we see this administration talk a lot about u.s. competitiveness, u.s. jobs, using energy not just for the u.s., but for u.s. influence in the world, we're very motivated the serve the administration. that that's exactly what we're going to do. >> and you know what,? you know what america has a lot of? natural gas. and when you talk about energy independence, it's music to the ears of a certain president right now in his administration. and, by the way, just to give you a sense of the scale, i said i looked like an ant earlier, and that's how i feel.

it's enormous. stuart: ashley, good stuff. we'll be back to you. the white house says trump's tariffs on canada and mexico are still set to take effect on saturday, this weekend. watch this. >> the president has made it very clear, again, that he expects every nation if around this world to cooperate with the repatriation of their citizens, and the president has also put out specific statements in terms of canada and mexico when it comes to what he expects in terms of border security. we have seen a historic level of cooperation from mexico but, again, as far as i'm still tracking and that was last night talking to the president directly, february 1st is still on the books. stuart: all right. john lonski is an economist, and he's with me now. what do you think happens on saturday if the tariffs go in place on saturday? what happens? >> unless the companies directly affected, not much will happen. i don't think it's going to have much of an immediate impact on the economy. let's take a look at what's going on with the stock market. you would think if this was such a big deal, if this was such a threat to inflation

expectations, to business activity, the market would be sinking. it's not sinking because of the possible imposition of tariffs on saturday. stuart: is it possible the tariffs go into effect, a 25% on mexico and canada, and nothing happens? >> yeah, nothing may happen. and i would add that let's not forget this is a negotiating tool. as far as immigration policy is concerned and also as far as the illegal importation of drugs into the united states go. so this may get both canada and mexico to have some reforms that please the trump administration and that's the end of tariffs. stuart: does trump have the strongest negotiating position at the moment? >> i think he does. the united states has the upper hand because the u.s. economy is doing much better than the canadian and mexican economy. we're talking about two economies that are growing by a rate slow orer than 2% -- slower

a than 2%, u.s. economic growth is close to 3%. of we have a much stronger labor market according to our relatively low unemployment rate. stuart: i want to talk about egg prices. they've gone up sharply, actually, in the last ten days, the ten days since president trump walked into the oval office. press secretary karoline leavitt, she blames biden. watch this. >> there is a lot of reporting out there that is putting the onus on this white house for the increased cost of eggs. i would like to point out to each and every one of you that in 2024 when joe biden was in the oval office or upstairs in the residence sleeping, i'm not so sure, egg prices increased 65% in this country. we also have seen the cost of everything, not just eggs, bacon, groceries, gasoline have increased because of the inflationary policies of the last administration. stuart: she got that one, whilst biden was upstairs sleeping.

[laughter] just tell me, why did egg prices go up so much? why? >> avian flu. stuart: right. that's it? >> that's it. i think that's why they've gone up sharply. avian flu has reduced the supply of eggs, of hens that are laying eggs. obviously, it's a consequence. smaller supply, higher prices. i think the important fact on the inflation front is that you have to do manager about this gargantuan federal budget deficit with the federal government is spending almost $2 trillion more than what it takes in in terms of revenues. and if you get that under control, if you can begin to. >> shrink that deficit, you will make major inroads at improving the the long-term outlook for price inflation. stuart: buy out those government workers. >> exactly. there shouldn't be any hiring by the federal government for some time. stuart: thank you very much, indeed. kenny polcari, what do you think about trump's tariffs in what happens on saturday? >> i'm in the same catch as john.

the market's not telling you it's concerned at all. ing could you see some small disruptions? parts suppliers, auto manufacturers, i think some of that's been baked in, but i don't think there's going to be disaster at all. and if the john's point, i think that's what the market's telling you. they're not worried about it. and, listen, it might just be more a negotiating tool, and it comes to the an end quicker. >> tariffs moved higher in 2019, and inflation was hardly notable. one more thing, the mexican stock market, i think, is up, it's doing well, and the mexican we sew is up versus the dollar -- peso. they don't care. stuart: kenny, thanks very much, indeed. now this, union membership in america declined last year. i believe, lauren, it hit a record low. lauren: according to the bureau of labor statistics, 9.9% now represented by unions, about 14 million out of 175 million strong work force. less than 10%. that's half of what it was at its peak back in 1983.

stuart: got it. thank you, lauren. coming up, the liberal media despises trump so much that they will poo poo any idea he comes up with -- poo poo. -- pooh-pooh. it reminds me of ronald reagan. 19 republican attorneys general are going after costco. they want the company to ditch hair dei policies. that's -- their dei policies. that's next. (auctioneer) let's start the bidding at 5 million dollars. thank you, sir. (man) these people of privilege... hoarding the financial advantages for far too long. (auctioneer) 7.5 at the back. (man) look at them — unaware that robinhood gold members now enjoy the vip treatment — a 3% ira match on retirement contributions. (auctioneer) 11 million sir. (man) once they discover their privileges are no longer exclusive... their fragile reality will plunge into disarray. ♪

♪ stuart: republican attorneys general are warning costco, hey, ditch your dei policy. they claim the retailer is just breaking the law. is this going the end up in court? gotta be. lauren: we're not at that point yet, but they've fired the warning shot. as more companies jump ship to embrace merit, costco is sticking to its race and gerund-based agenda. attorneys general in 19 states now warning the retailer, abandon your divisive dei practices. they write, quote, costco's position raises concerns about compliance with state and federal laws. iowa's attorney general, brenna bird, is leading the effort. >> president trump has ordered that the federal government is going to end its illegal dei

policies. costco needs to do the same. and if they don't do that, if they don't follow the law, we will be looking at what they're doing and looking to to enforce that law. lauren: costco has 30 days to to communicate if they will drop dei or explain why they're keeping it. many americans are divided on the issue. >> is dei fair? >> is dei fair? i don't think so. >> there should be space and inclusion in the work force where you don't feel like you have to be the token hire. >> i don't think that the government should have any say in something like that. i think that should be up to the individual school or the individual company and the individual business. lauren: but this isn't the only headache for them. 18,000 unionized costco workers in five states have authorized a strike for friday, this week, unless the management comes back and provides better pay and benefits. stuart: really? kenny, do you think costco's going to cave? >> i don't think they are. they're a private company.

i think they're going to come back with a reason why hair policies should remain in the effect. stuart: all right. kenny, thank you very much for being with us. >> thank you for having me. stuart: still ahead, liz peek on trump's triumphant first week liberating the mood of the country. south carolina senator tim scott on our students continuing to fall if short on test scores. martha maccallum on the trump white house revamping the relationship with the media, and ohio congressman jim jordan on why america needs kash patel running the fbi. the 10:00 hour is next. ♪ you don't really need me -- ♪ you just keep me hanging on ♪

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stuart: looking for ice van strolling down sixth avenue picking up deportees, not seeing any yet. let's move on. it is 10:00 eastern time,