stock. it is up 20% in a year. dagen: prediction? >> no longer pull yourself up by your bootstraps like you could in 1935 because the people voted and there's going to be some new pieces, the toy brokes at hasbro get 15% because of it. dagen: goodbye. charles now. >> the first two job report since i took the oath of office we have already added nearly half 1 million new jobs and it is just beginning. charles:president trump in michigan promising bigger jobs down the road and vowing to shoot the economy into high gear but some morning the fed to slam the brakes on that goal. the federal reserve driving up its key interest rate this week. for the second time in three months, sizzling two more hikes could be coming this year.

as president from promises to grow the economy by 4%, rising rates could drive his agenda off the roads. gerri willis, charlie gasparino, kennedy and ben stein are off this week. >> now it is not big because rates here and around the globe are still low but if you go too far with rate hikes, trouble lies ahead because every data point is used very low rates. you change that structure you could change the structure of the economy and how business and business owners think of you got to be very careful as we move forward. there's a ton of debt and deficit still out here overhanging the economy. >> they have created trillions of dollars out of thin air. >> we went 9 years, retirees and the returns on their savings, now we are turning it around.

this is not 2004 when we had a dozen rate hikes the that is not what we have on tap. it is slow and steady, trying to do a slower than you expect because she doesn't believe in the trump agenda. >> if she doesn't believe in the trump agenda she would not raise rates. charles:she won't get at of the curve. >> that is the problem we have. of trump's economic agenda for fiscal policy agenda gets -- doesn't get past and she continues to raise rates you will have a problem in the markets and in the economy and fees markets have to sell off. >> confidence that a 9-year high over a decade, a lot of energy. >> that means nothing unless you get the fiscal policy. charles:come in. >> this is great for talk shows like ours but this is less

political than you are making it out to be. half 1 million jobs in the first two month since i have been in office completely consistent with the last 12 months, i am not -- i am giving the economy credit for it. >> trump got a great job number you are saying. >> an excellent jobs number. the fact is the fed has been responsible for a long time, accommodative stance was called for during the financial crisis and after it and they are getting on with business as usual and that is totally appropriate. charles: they hike rates in december 2015 at the market collapsed. she wasn't doing it for the right reasons.

the economy was not growing at a pace that suggested they should remove the punch bowl. the fed has a long track record of missed timing its rate hikes. >> they have a long track record of being behind 12 months so you have to be very very careful. i have to repeat something here. the economy is so too low rates the debt and deficits able to explode because of low rates, you change that you change a lot going forward. i would rather see rates higher. i would rather see rates normalized which i'm tired of statements being screwed by the fed. i want to see the make money off their income investments so i am good with that. in a situation we are in, there will be trouble ahead if they go too far. >> gary is right about retirees trying to make money. good for them but if you think the world is coming to hell in a

hand basket because of this rate increase you have lost your mind. there is so much confidence in the economy and the markets -- the markets themselves weighed in on this. >> there is confidence in the economy because of the plans being announced. charles: i want to make your point, when you talk about janet yellen not having confidence in trump's agenda we should point out to the audience they have modeled only 2% growth this year and next year and you have a point and it seems crazy to talk about that. you missed it. >> what she is missing is the reason -- >> janet yellen -- >> probably what janet yellen is missing because she is not timing rate increases to fiscal policy, the reason business confidence is up and the reason corporations are telling donald

trump to expand some of it is baked in. it is confidence in the trump fiscal plan of taxes and less regulation. of those things don't materialize these rate cuts are not necessary and the markets will reflect that. >> you left one thing out, taxes, regulation, infrastructure spending, no question the markets, confidence at a high, markets feeling good and unemployment at the lowest rate it has been in many years, a trend that has been going on the last you tell me how many years. charles: one thing i will say, jobs being identical for the last three februarys, the last jobs report, construction, mining, manufacturing, they came back out of the workforce, that

is the essence of household formation. >> they teased us in the past with that. i want to go to you about the fed being able to derail this. blocking them to the economy. >> the republican party fighting off tax cuts, and the regulatory burden crushed the economy. if that doesn't get through there is heck to pay. two words, great expectations, speak to any major ceo or small business owner, they have great expectation for their business because of the last eight years with a panel on their head every day. >> getting rid of these regulations is as important as

reducing the corporate income tax. charles: the good news is so far donald trump through executive orders has gotten rid of a lot, billions of dollars worth. we know he has a long way to go but he will get there. we know so many regulations were punitive, nothing to do with anything else. environmentalists had the air of barack obama but now businesses, what president trump is pushing through here, hard to believe there is any pushback in dc. people will negotiate for things here and there but got to believe all this agenda the key points we made here are going to make it through. >> on regulatory reform not a lot of pushback from the republicans. there is pushback on almost everything else. what could derail this, i am not rooting for it. we have a very inexperienced foreign-policy team and inexperienced president. one problem abroad, north korea for example, forget about it.

charles: america wanted this, quote, political experience, success in other areas with accountability. the new report revealing there are nearly 500 sanctuary cities and counties, the white house is renewing its pledge to cut off their federal funds. will that stop these places from harboring illegal immigrants? f

offenses. soldiers shot him after wrestling one of their colleagues to the ground and tried to steal her rifle. thousands of travelers were evacuated, flights were diverted to other airports. back in this country there is an urgent manhunt in oklahoma for suspected escaped inmates. employees say they broke out of a county jail 45 miles from the city by escaping through the ventilation system. all three were in custody for property crimes and each had purportedly been arrested multiple times. now back to cavuto on business.

>> the president was very clear -- and it happened illegally. andrea: the white house doubling down on the promise to cut off towns collecting illegal immigrants, the number of things worry cities and towns in the us swelling to 500. charlie says it is time to say kiss your federal funds goodbye. >> time to put the mayors and county executives who defied the federal government on federal law on something clearly part of federal law, controlling our borders, something the federal government, every court president, every law that we know is a federal mandate and enforce federal law. we listen to adam defend states

rights. and defending rights for states to act, what they believe is their own good. let's hear it. andrea: charles: the floor is yours. i am going to show you how nimble i am. >> how i can change my response based on your provocation. i don't see this as a states rights issue. you don't take away federal funding for all the other things you want to do federal funding for to punish somebody for having done something in a different issue. there is a difference between what is illegal and good policy. charles: president trump's budget this week intends to cut off funding at least so far by $200 million to sanctuary

cities, they are breaking the law harboring fugitives. this is absolutely nuts, no matter what side of the political aisle you are on. >> they are locally elected officials breaking federal law and flaunting it. we have laws on paying taxes. if i don't pay my taxes on -- there will be repercussions. you change behavior by holding back the bucket and i love the idea. it is in our best interests and they are changing and no longer breaking laws like in south florida, a few others will follow suit. it is about time. charles: south florida feel like 10 or 20 more coming gone and major cities want to become sanctuary cities. >> the supreme court agrees with trump that at the end of the day they take money from the federal government, they have to do with

the federal government says, a great point here. how much can you withhold? the reality is he can't withhold every single dollar. >> they should withhold money from these municipalities and use it to build a wall. >> we can finance the wall or leverage it out and if new york city wants to be a sanctuary city we should -- federal government should withhold all that money and build a certain portion of the wall in mexico, new york's portion of the wall. >> what is interesting, the president is a good negotiator used in making deals. charles: this is not about negotiation. when you harbor people who came here legally and committing crimes since they have been here that is fine. >> i understand your point.

no one is against prosecuting somebody for criminal acts. being illegal -- no criminal acts. it is not realistic, too many of them. >> it is only realistic because politicians have let this metastasize in the past 10 or 15 years, somebody but the hammer down. charles: there is no negotiation here. >> i think you are right. >> the federal government has to protect its citizens. someone who comes here illegally, they have broken a lot. break additional laws on top of that it is crazy, the track record some of these have. it is one of the worst offenders. >> i understand and don't think

that is going to be the right approach and won't be the right approach. what we have been doing hasn't worked. charles: it is outrageous, really is was also outrageous student don't -- student loan debt piling up barbara's not paying it down, that could come crashing down on all of us. we ship everything you atcan imagine.n,

and everything we ship has something in common. whether it's expedited overnight... ...or shipped around the globe, ...it's handled by od employees who know that delivering freight... ...means delivering promises. od. helping the world keep promises. charles: student loan debt moving million borrowers and not paying it back, someone here taxpayers compare pric

charles: student loan debt crisis is worse than we thought topping $1.3 trillion, more than 1.1 million borrowers defaulting on $137 billion in student loans

last year, up 14% year over year. you say we could be looking at another bailout. >> there will be so much political pressure, you talk about a big thing, when you talk to students, a survey of students say they are using student loan money to buy drugs to go on spring break vacation, go out to dinner like this whole system is so corrupt and so abused something had to give. charles: that is better than a basket weaving debris. >> better than basket weaving? air bnb they can't get a job afterwards. charles: the piling default we are seeing. >> there will be a day of reckoning. you would hope, most people think there will be a federal

response. not a complete bailout but a certain type of bail out and students themselves would have to pay here. charles: there is a promise from president obama these guys would not have to pay. >> we need to establish moral hazard here. charles: banks didn't have moral hazard and students want to know why they should. >> when the politicians are using the word free and using the word forgiveness, why should someone pay back the loan? as we got into the election bernie and hillary talked about forgiving student loans. i wouldn't pay back the loans if i knew they may be forgiven but everything has changed and maybe people realize when you have a loan you have a contract to pay it back and hopefully things turn better as you move forward.

charles: something else, we should get government out of this. of government has gotten involved in this, we see college tuition fees go through the roof and prices. >> the hyperbole during the election president trump won't do a bailout because he is against, obama was terrible. he has to recuse himself from the conversation because some of the students -- charles: i know where you are going. you brought it up. >> did you take student loans out at trump? charles: back to the topic, $1.3 trillion, the moral of the story, one of them is the government should not have pushed out the middleman, a lot of fiduciary responsibility, a lot in the first place. >> a total mess that got completely out of control over many years so i agree.

charles: looks like for once we all agree. my thanks to gerri and charlie and most folks say the american dream is living debt-free or feeling financially secure, to make your dreams come through. y282uy ywty we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be.

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>> stocks that help you achieve the american dream of living debt-free. >> i like lowe's here, great reaction to earnings, housing business in really great shape and i think it's got 10, 20% over the next few months. >> i think you're right. retail and housing numbers. what will you, adam. >> i love going there, i would be concerned about raising rates, gary brought up, that might hurt them. people have to fix up old houses anyway. >> what do you like? >> vanguard growth index, big companies, these are the kind of investments that let you sleep well at night. >> real quick, geri, do you like that? >> nothing lets me sleep well at night, but the growth is right now and the i think this

is good for right now. just realize it's going to have the time limits and be ready. >> absolutely, i think we all agree. growth is on the way, whether the fed admits is or not. the cost of freedom continues with david asman on the place for business, you know what it is, fox. david: do the budget buster. u.n. funds slashed, foreign aid smashed and democrats blasting the white house for cuts that they say go too far and some here say they don't go far enough. let's go to steve forbes, michael, elizabeth mcland, and steve, just this week, u.s. taxpayers it was found out helped fund another u.n. report bashing israel. is that money well spent? >> obviously, not, david. the u.n. has become a welfare agency for diplomates, dictators and human rights abuser and the