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david: i remember that one. it is kind of a nice song for this tuesday morning. i'm david asman in for stuart varney. it is 10 a clock eastern time. let's get your money. markets are improving, all in the red. don't want to candy coat this too much but it was way down premarket activity, now the dow is down 62, the s&p is off 9 points, the nasdaq is off 37 so it's not an selloff today, the 10 year treasury yield is up 3. 4 basis points, up to 4.528 so that is a worrisome sign for nasdaq holders. oil is up one dollar. bitcoin was down earlier, it down a little more now, $258 to 97,000 fifty two. now listen to what donald trump

had to say about his first three weeks of his second term. role it. >> a lot of people have said this is been the greatest opening three weeks in the history of the presidency, the fastest and the most, we've done so much so fast and we really had to because they have really what they have done to our country is so sad, so sad. we will be bigger, better and stronger than ever before. david: derpy murdock. i've never seen donald trump without energy, physical momentum is breakneck speed. >> i've never seen somebody at age 78 or half of that with the energy this man has. he doesn't take a moment off, the rest of us are trying to keep up. i was chatting last week in the newsroom with someone and said it is official, i'm sick of winning. sick is the wrong word, do the from all the winning. i think in one day we saw 10,000 troops assigned to the

northern border by the canadians, 10,000 mexican troops on the southern border, mexico to keep illegals out. venezuela said we will take the tren de aragua guys and pay for them, dei is dead, women are going to be able to enjoy women's sports and the great state of gaza coming along. who saw that coming? one thing after another. david: it is not all rosy. federal judges are at it again step into block some of trump's policy changes like the buyout for federal employees which to me makes no sense, that's what he was elected to do, trying to stop him from doing it, doge's access to the treasury department, that would include the secretary himself, birthright citizenship, this is lawcare. it didn't work leading into this presidency, will work this time? >> there is serious question on the birthright citizenship. that is in the constitution, the fourteenth -- david: it has been interpreted

in different ways or maybe the supreme court -- >> it is debatable and maybe trump push this to force a decision if you will. the other things, secretary of the treasury has a right to take a look at the treasury, that's part of his job. he should centers advisers to any agency and say look at the payroll and see if there's anywhere we can cut but this is the typical thing. david: bureaucrats should be allowed to resign if they want to. >> again. amazing things the last tuesday as well. the entire cia, you can leave if you want, the entire cia workforce given a buyout offer and if they want to stay great, if they want to leave, time for an early retirement, why not. david: time for you to say goodbye. the great one, thanks for being here. happening out federal reserve chair jerome powell about to testify before lawmakers for the first time since trump returned to the white house. grady trimble joining the in new york. do we know what questions?

>> reporter: we expect questions about how donald trump's economic policies are going to impact the economy particularly inflation. the first time powell testified since trump took back the white house and since republicans reclaim the senate which means they are at the helm of the banking committee we've got our hands on powell's opening remarks and here's what he's about to say. with our policy stance significantly less restrictive than it had been in the economy raining strong, we do not need to be in a hurry to adjust our policy stance. maybe renault rate cut is coming but he will outline the risks of moving too fast and the risks of moving too slowly. the chair of the senate banking committee tim scott says he plans to encourage the fed chair to stay out of trump's way when it comes to crypto energy and other economic issues. >> the fed has been weapon eyes

did, paying crypto assets, stress tests, jay powell calling balls and strikes, not joining energy schemes for financing, one of the rare areas of agreement between trump and the top democrat on the banking committee, senator elizabeth warren is there a tendency, trump blasted him for not cutting rates and so did warren. she claimed he's putting jobs at risk and making it more difficult to afford a home and pay their credit card bills. that tends to move on markets, and the president reaction frozen time on social media so we will see what happens. david: the markets don't seem to care. when the fed does one thing and brings rates. >> wall street has realize they

are not coming at the thought they were in december. david: thank you very much. can the market absorb the impact of the tariffs? >> one of the things i've noticed as trump is moved into office, the market already has absorbed the impact of tariffs. the expected impact of tariffs, the s&p 500 is having a lot of trouble breaking out to a new high, hanging in pretty well. when i look at tariffs, if we are not going to get more than a few hundred million dollars worth of not more than that, you are not going to get more than a roughly 1% hit to gdp and the economy, it will bring inflation up a little bit. that flows through earnings, maybe some volatility in short periods of time. as long as we head the economy

spending, the market is fine. david: what are they? >> salesforce and microsoft, rolling out there ai agents which are more powerful than pilots and that means it's going to continue to make companies more efficient and add to the revenue growth. david: appreciate it. let's start with apple. >> apple tested deep seat. they didn't think deep-sea could support like apple. apple is partnering with ali baba up 2. 3% 3% to develop ai features for the iphone. downgraded guggenheim, it is down more than that

>> activist investor elliot building at stake in this oil refinery pushing for a spinoff of the midstream business. david: the tough talk is that, donald trump sending a clear message, and release the hostages. >> saturday at 12:00, all hell is going to break out. david: more on trump's ultimatum to hamas and the fbi uncovering thousands of jfk assassination documents as a result of trump's executive order. we will tell you what we know so far. we have some surprises in there. donald trump wants to make a deal with iran. >> can't allow them, two ways of stopping is them with bombs or with a written piece of paper and i would much rather do a deal. david: we will ask senator mark

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david: quick check of the markets. modest losses. all down 1/4 of a percentage point. now this. hamas says the hostage release scheduled for saturday would be, quote, postponed until further notice. >> no official word yet but they are preparing for any trouble coming from hamas and

that includes putting their military on a slightly higher alert. saturday's release of three more gone hostages fresh in everyone's minds the urgency of getting the remaining hostages out is growing. hamas claiming israel is reneging on aspects of the related cease-fire deal. donald trump now pretty much saying regardless of that deal, should be released by saturday, underscoring dangers and word from the idf that the oldest hostage thought taken on october 7, 2023, is in fact dead. others did survive, including romy gonen who was released last month with suffering a dangerous wound to the arm and months of malnutrition.

she is on the mend, those inside under torture conditions. >> i wish everyone one day, we don't need to stress it more. >> reporter: while she told us she wishes a mass hostage release could happen on saturday, she's worried about dangers of that saying hamas are terrorists. something she's grateful to is the very least, helping get her sister out of captivity. touching story and very moving story. david: postponing the upcoming hostage release.

>> if all the hostages are returned by saturday at 12:00, it is an appropriate time, cancel and all bets are off, let hell breakout. 12:00 on saturday, i am speaking for myself, israel can override it but for myself saturday at 12:00, they are not here, all hell is going to breakout. david: mark wayne mullen joins me now. we know you've got to take seriously what the president says. he's a man of his work. what could that mean? already gaza is devastated. what would hell breaking out in a devastation like that mean? >> we have a lot of technology we haven't deployed yet. his red line is not the same redlined that obama drew in syria in 2014, the same

redlined biden talked about. when donald trump talk to they better pay attention. at a medicine out of resources, worked with the idf, we have a good idea with of these locations and tunnels of hamas leadership, we will find you regardless if you are in gaza still and you will pay a price. the president made clear release the hostages were all hell is going to break loose. if i was a civilian that wanted nothing to do with this i would be leading any area of the hostages could possibly be at and i would be leaving any area the military for hamas if you want to call that this terrorist organization is gathering around. there will be people dying. david: there is a redline with iran with regard to nukes. listen to what donald trump had to say about an iran nuclear deal. role it. >> better deal than the obama nuclear deal.

>> that was the dumbest, that would have expired by now. that was the road to a nuclear weapon. it was short-term, that deal would be expired, can't allow them to have a nuclear weapon but there's two ways of stopping them, bombs or a written piece of paper. i think iran would like to make a deal. can they make a deal they can't refuse. and israel to saudi arabia to jordan, even in qatar they made clear, iran owning a nuclear weapon is a nonstarter. this is a world sponsor of terrorist.

israel neutered hamas, they will fight against anyone in their way through terrorist activities. the idea that you could allow a terrorist country which iran has become to have a nuclear weapon is ridiculous. they delivered on cash, obama thought they could trust him with secretary carrie making a god-awful deal is ridiculous. i think donald trump if he could negotiate, he means it, he wants to end the killing but at the same time he believes in peace through strength. sometimes actions have to back it up. david: tulsi gabbard and rfk nominations, what do they look like? are they going to pass? >> absolutely. we will get both of them confirm. tulsi gabbard will be confirmed

this evening or the we hours tomorrow morning at 12:12:30, or rfk will immediately go on a 30-hour vote, cloture vote. democrats know that we will get them for one way or the next. the hard way or the easy way we will get them completed. david: pleasure to have you on. the fbi has uncovered thousands of records tied to the assassination of president kennedy. we want grady to come back in and tell us what they are saying. >> we don't know what is in them and when we will get our hands on them. 2400 of them containing 14,000 pages worth of material related to president kennedy's assassination. even though we don't know what is in these documents, this happened quickly just weeks after donald trump ordered the

agency to review all related files related to the assassination of jfk, rfk and martin luther king jr. . we don't know when we will see any of those documents. to do what they are now doing thanks to trump, the fbi has dug up those records, some in the intelligence community argued against releasing the sources and methods, trump's order could dispel conspiracy theories whether lee harvey oswald acted alone or depending what they say could flame more theories. david: after all this time you wonder if there were ever any secrets in there, have they been taken out. >> 80 years. it has been long enough. david: still ahead, the battle of the budget in dc. >> we are doing the most

consequential piece of legislation in decades, a lot of moving parts. david: house ways and means committee chairman jason smith wants trump's one big beautiful bill. we will be asking him how they can get that done plus the justice department wants prosecutors to drop the federal corruption case against new york city mayor eric adams. the reason behind that stunning move coming up. ♪ (♪) (♪) voltaren...

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server make ahead with accounting fraud allegations to give investors that business update. they report earnings after the bell, shares up 60% in the past five seconds, down 4% but $40, remember a year ago the prices at $123. david: ibm. lauren: it is a $320 price target. they sustain double-digit revenue growth and we are optimistic about ai applications. david: luxury brands considering moving to the us if trump launches tariffs against the european union. which brands are we talking about? lauren: paris's biggest name increasingly looking to the us just a few days after donald trump's inauguration it is clear we are being strongly pushed by the american authorities to build out our prisons.

the name behind louis vuitton brings up a quarter of its worldwide sales and already operates 35 points, they ruled out a us move. >> wasn't prepared, italian and french is an integral part moving manufacturing outside these countries in the eyes of consumers. lauren: the made in the usa labels increasingly appealing who find it might make financial sense to manufacture. no tariffs, subsidies for job creation. then there's the other thing.

the us is leading the turnaround in the luxury sector. and pronouncing a tariff on the sale and aluminum. >> our nation requires stealing aluminum to be made in america, not in foreign lands. we need to create in order to protect our country's future. the likes of which has not been seen for many decades. great industries to come back to america, simplifying tariffs so everyone can understand exactly what it means, 25% without exceptions or exemptions.

david: real estate developer and royal palm company ceo daniel kotze. you have to source the material from different places. will change the way you do that? >> we get most of our steel in the united states in miami, a lot of steel actions, we can't continue to push costs of steel going up would be an issue. i understand where the president is coming up. we had steel tariffs, and china was really, we've not seen in 2018, where we implement it tariffs, we've not seen steel output grow and it has gone down a little bit.

david: you've seen what the president has done he has pulled back on threatened tariffs. are they not followed through with? >> and it uses it for leverage. our largest steel suppliers are canada, aluminum from canada. the question is are we going to implement seclusion for canada. our largest issue is china. we can't continue to push construction costs up, we develop in miami, and the costs of construction increased significantly, doubled since

2020. david: the cost of labor must be killing you too. >> yes. that brings us to immigration which is another issue between what about interest rates, and salaries not being doubled and that's an issue. david: i can tell from your fingernails you must be biting them a lot. appreciate it. democrats ramping up their opposition to dogyou what's the latest target. >> they stage a protest on the headquarters of the social security administration, they chose that building, they say will be the next target of doge, coming for american social security payments. despite the fact that donald trump denied any plans to do that. >> anytime you hear doge, the

department of government efficiency, you just remember, it is the department of government evil. >> this is a recipe for corruption by the doge boys and the government. >> like a bank robber trying to fire the cops and turn off the alarm just before he strolls into the lobby. we will see you in congress and in the streets. >> they are looking for fraud and there's reason to believe there could be some fraud at that agency, nonprofit research institute, the social security administration dispersed to billion dollars in fraudulent or improper payments in 2022. democrats rebrand dogeither department of evil.

david: see how that works out. dogee finding millions a reckless fema spending while hurricane victims say they were hung out to dry. >> it is infuriating to see millions of dollars going to someone who doesn't have a social security number, did not pay taxes, is not an american citizen. david: wait until you hear what those migrants were spending the money on a new york city, that is next. at ameriprise financial, we know our clients are so much more than clients. they're conquerors and champions, parents and caretakers, believers

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david: breaking news yesterday. elon musk says fema sent $59 million to luxury hotels in new york city to house migrants who were in the country illegally.

nate boy is outside the hotel in new york city, we are hearing reports of people who have been fired for this. >> reporter: the part of homeland security confirms it has 24 hours after musk posted on x about these payments. they have found and fired the four workers responsible for facilitating those $59 million to new york city from fema to take care of illegal migrants include to house that hotels like the one where we are now. the fema administrator says payments have been pause and he thanked the doge workers were exposing the payments and musk, as we mentioned, first reveal the payments on x posting, quote, sending this money violated the law and is engrossed in subordination to the president's executive order. of that money is meant for american disaster relief and is being spent on high end hotels for illegals. a spokesperson confirmed the firings with fox news and

reiterated christine noem's claims that fema can't exist in the way that it does. that idea has some support in congress. >> these funds have been misappropriated going back to the biden administration and new york city, a sanctuary city, has been wasting billions of dollars of taxpayer money. >> reporter: it doesn't pay luxury hotel rates, $237 million allocated to new york city under the biden administration. here's a breakdown of the $59 million installment, 19 million went to hotels for migrants, 26 million paid for food and security and 13 million went to the shelter system but the city says that only eyedrop in the bucket. the mayor's offices it spent $7

million on the migrant crisis since the spring of 2022. a 46,000 migrants remain in the city's care right now. adams's team says they will speak to federal officials about the fema payment. david: they could use that money desperately and they are housing migrants in the most expensive hotels in the most expensive city in america. makes little sense. new york city hall responded to those claims about the fema funds a in, quote, the previous administration left new york city largely on its own to manage an international humanitarian crisis. we have worked to minimize the cost of this crisis to ensure that we are not wasting taxpayer dollars. we spent $7 billion, the previous administration committed in funding, for

future services. we will discuss this matter with federal official josh levine. $59 million in, to house these migrants for expensive luxury hotels that exist today. they didn't deny it. >> it doesn't matter if it is 59 million or one million or one cent, it's taxpayer money spent on people who shouldn't be here who are here illegally and being sent home because of that. it is complete the completely outrageous and hopefully the new partnership between trump and adams can bring accountability to this system. david: everybody thinks the mayor controls new york city. no longer. it used to be that way decades ago but now it's city council, that's really radical. >> we have a legislature in city council that causes a lot

of problems for the -- it's a heavily progressive establishment, they can veto and block a lot of ideas. david: we have 800,000 people who are here with questionable citizenship qualifications being able to vote in the next election. >> it is not going to happen. democrats have been trying to normalize noncitizen voting in new york city for a long time for state and local elections. it's not going to happen. judges shot this down at every turn, it's probably going to go to the supreme court where they will also lose but it is on the agenda. david: finally. mayor adams, he was having a lot of difficulty with whether he was taking gifts from foreign governments or people affiliated with foreign governments. the us attorney's office in the southern district which

includes manhattan, he is off the hook if you have that right. >> he was at a steakhouse. there's a lot of potential cooperation between mayor adams and donald trump. they talked about working on migrants and deportations. the fact is he was indicted after speaking up about the migrants and a lot of questions whether these indictments were politically motivated, something the president knows about. they had a lot of common ground. david: donald trump was belittling some of the charges, who were asking about it, haven't had an upgrade which included the so-called crimes against -- >> a pretty poor bride. brian: david: the bill that would have delayed new york's 21 special district election to november is dead. this is representative stuff ionic --stefanik they want to delay her seat so the slim majority in the house would be

even slimmer than it already is. will they succeed? >> they pooled it yesterday. until the november election, obviously hurt their majority in congress but now it seems they will have a normal special within 90 days in the normal range. david: that district is selected to go public. david: great to see you. you handled a lot. the left continues defending the wasteful spending and congresswoman maxine waters has harsh words for elon musk. >> he has turned over our country to elon musk. we didn't elect him, we didn't want him. he's a thief, he's a gangster. david: what baggage does she bring to that conversation? seems like democrats yelling the loudest have the most to lose.

donald trump explains why it makes sense to get rid of the department of education. listen. >> last in education out of 40 states, we are last, number 40, we are number one in -- i want to send education back to the states. david: more from donald trump's interview with brian kilmeade, here next. ♪

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it brings people together in meaningful ways. david: checking the markets, we went from red to green, the dow is up fractionally up 15 points, nasdaq is up 12 but they went from severe losses to green on the screen. powell is speaking now. markets are taking it positively so we will follow up the markets, specifically, how that might affect them. it is 10:51 on the east coast

and it is time for brian kilmeade to join us. trump is telling bret baer he wants to send education back to the states, something i care a lot about. listen to him and get your reaction. >> tell maxine and her friends we are last in education out of 40 states, we are number 40, number one in classical people. i want to send education back to the states. if you send education to iowa and indiana and a lot of these states, idaho they have no debt, no crime, they would still be bad on education. but be forced to get better. if we sent them back our educational system would be doubled and cost probably half. david: do you agree? brian: i hope so but i think

the states that are good are going to get great and states that are struggling say i will go in and be politically correct and to put more money in and get better results and go ahead and do what the union wants me to do. teachers are great, the union is. i worry about the bad getting worse and the good getting great and i like the idea of linda mcmahon having a say in the things. i like the idea of the trump administration having a say in things. when you give the states that i think you will be happy, unhappy with what los angeles is doing and san diego and san francisco are doing and i guess it could separate the more and make them change, if you believe what trump believes, which is school choice, the ability to take charter schools and all that, you are giving

that up. david: i was a junior high school teacher in chicago shortly after the part of education began. we were bribed, we would get money from them if we use their teaching curriculum which was terrible. teachers knew it was terrible but if we didn't use it we wouldn't get paid money. there was this bribery, if you take away the bribery from the department of education it could help local schools to make their own decisions most of which are better than those inside the beltway. >> what about new york? david: chicago is as liberal as new york and teachers knew what was working and what wasn't working. that was decades ago. all of this money, one hundred in addition to the department

of education, covid, one hundred $89 billion for for k-12 education. that money didn't go into raising tax scores. brian: we were separating 6 feet apart and making kids work on the other side of the hall, making him wear masks, we know the idiocy of that. i would just love to see some accountability, i see their effective list and help minority kids the most because mostly in schools that don't get the property tax value where the money comes from if they are in struggling areas, they don't get it as you would in beverly hills or westchester, new york, you have a chance for a charter school and the nineties get the chance at building up charter schools. it was a frustrating situation where i would like to see more overseeing than less because i don't trust them to do the right thing in my view. we will see what happens.

we will see what linda mcmahon is going to do, she will get confirmed and see her distribute her power. david: we have a push for more school choice programs from the federal government. if you work it all out it is going to be better than with the department of education. that is my humble opinion as a former teacher. got to leave it at that. i love you, thank you for joining us, really appreciate it. grady, thank you for being here for the whole hour. wonderful to have you in new york city. former sheriff mark lam on migrants turning around and heading home over the trump immigration crackdown in missouri congressman jason smith on trump's big beautiful bill. bill hemmer on joe rogan saying democrats could assist him of doge is losing them credibility and guess who else is here in the new york city?

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>> they didn't have, the left, that is, any problem wit