>> rick: we hope to see you back here and one hour. >> molly: absolutely, "outnumbered" starts right now. >> sandra: happy friday everyone, this is a fox news alert, attorney general jeff sessions announcing a major crackdown on classified leaks in the past hour, just one day of your transcript of president trump's calls with two foreign leaders. america's top foreign officials saying those types of leaks threaten our national security. this is "outnumbered," i'm sure it is meant. here today, harris faulkner, host of kennedy on fox business, kennedy, also from fbn, cohost of after the bell, melissa francis is here and today's #oneluckyguy, host of the david webb show on the sirius xm patriot channel, david webb and we are lucky to have them, you are outnumbered. >> david: i'm outnumbered, i

never never have enough excitement to come here. i love the shoes. >> harris: thank you, david. love the fact that you're excited. >> david: just as i was getting out of my studio, one of your biggest fans wanted to say high to you. >> harris: now i'm embarrassed. >> sandra: are we good? let's begin. as a situation that has frustrated the trump white house from day one. the leaks and somewhat sensitive u.s. secrets pouring out of the administration. a short while ago, attorney general jeff sessions thing these leakers are endangering national security and must be prosecuted to the fullest extent of the law. >> this nation must end this culture of leaks. we will investigate and seek to bring criminals to justice, we will not allow anonymous sources

with security clearances to sell out our country. these cases to investigate and prosecute are never easy. cases will be made and leakers will be held accountable. >> sandra: the attorney general also saying that the justice department is reviewing policies saying they cannot act with impunity. meantime, the latest leaks stirring outrage on capitol hil capitol hill. republican senator lindsey graham. >> nobody is above the law in america and you'll have the right to work in the white house if you are a holder from the obama administration to take along to your own hands. that's not the way we work here. somebody needs to go to jail, i applaud jeff sessions to try to find out who's doing this. they're hurting the presidency itself. >> sandra: the anger over leaks not limited to republicans. the top democrat on sell it

intel, mark warner wants congress to investigate. he tells the daily beat "a president of the united states has to be able to have confidential conversations and i think it was disgraceful that those came out. meantime, this from david frum who served as a speechwriter for president george dubya bush. he said "no leader will again candidly speak with a president." >> david: is a problem. it's about the fact that the presidents and world leaders have these conversations. if you continue to leak them, how will you move forward on policy? what did they say that was so shocking question or two presidents saying this is politically damaging, but it's a big political issue. here's the real issue, how do we pay for the wall, i'm paraphrasing. there's nothing new here. the danger is the leaks. if other world leaders can't trust us and trust those

conversations, they won't be as forthright. >> sandra: we were both up in our offices watching jeff sessions make that announcement, he was very stern in his message, does it change anythin anything? >> harris: it's interesting, i was taking some of the same messaging came from anthony scaramucci and how long we have needed to have his message and where this far into it. the question becomes not just do the words change it, but inside the white house, does it change that undertone? you need your neighbors to say i saw bob or louis or whoever do this, will that culture processed? marie harf is set on this couch yesterday and said something very pivotal. she said you have to imagine in the white house, their circle is very small. we're not looking for 50 people, we are likely looking for one person. us before it's easy to get to the bottom offer that is. we talked with different security experts and you can see exactly who would've had access and then you can get out a lie

detector test. what i thought was interesting about that announcement today was don't forget this is a crime, we are going to prosecuted and you are now on notice. they need to follow that up. they need to make an example of someone, they need to come up with concrete evidence of someone who leaked, someone who listened to a conversation, someone who leaked to the press. that was criminal and there's enough of that going on in the need to prosecute that person and put the fear of god and everybody else. >> sandra: it's a message to the press as well, i thought there was a big moment in that speech saying they can't access impunity. >> kennedy: they really have to work within the intelligence community within the white house. part of why they are fanning the flames is they're talking about leaks so much. they should stop talking about it now because that also sends a message to other world leaders if this country and the white house is constantly

obsessed with the leaks and that's the narrative that they're pushing, that's also a big distraction. you have a couple of different places that these leaks could come from, but these are the conversations that we got bits of when they first happened back in january. now the full transcripts. the tidbits could have been from management. and someone who pulled bits and pieces, but now, this is a transcript from a notetaker. "the washington post" said it was someone within the white house, they are three high-profile firings and resignations with the last couple weeks, i'm wondering one of those people gave something to "the washington post" on their way out. >> sandra: directly from jeff sessions' speech, it was a really important message. >> david: yes, it is. we are all in the media have

received something at some point, we have access to information. what you do with it is the responsibility of you. i consider whatever has been given to me over the career and say, what do i do at this? there's a bigger picture than just my story. there's another aspect of us that matters, we are about to go on break. they've got 17 days before you launch this kind of press conference, they already likely know who they want to go after or potentially they want to. when the president is out of the white house and the recesses and play, they can get this together and i suspect they come back in september and if they're smart with a much more coordinated white house, with a much more stringent approach to messaging. >> kennedy: let's see the fruits of that apparatus. >> sandra: this is than just a problem for the white house to clean up, this is a problem for the country as far as

jeopardizing national security. >> harris: it really also calls on being genuine for democrats. do they care about national security? i haven't heard any type of outsider criticizing the president for having leaks. barack obama had leaks too. i went and researched how they went after people without administration grew prosecutors and how many people paid a pric price. people were behind bars. this isn't just this white house, but it's egregious because now that the circle has shrunk potentially to a very few people, how is this still happening? >> melissa: i don't know how you can assume it's drunk to very few people >> kennedy: this is information some of us. months ago.

>> harris: it we would have known how much was leaked in january, this is a separate situation from what we are studying and reading and that classified information is leaked. that's all in the hands of the reporters because we should know the difference between a whistleblower situation and an explosive situation. >> david: in the scaramucci conversation, remember what he said at the new yorker, you know who this leaguer is. it was an important point, the media knows who they are, that goes back to the responsibility. >> melissa: it not let's get into territory where we are grabbing reporters. >> david: my point on this is a goes back to our responsibility. if somebody gives me some thing that i can consider damaging to the nation, i'm going to make a decision whether i want to go forward with that or not. that's my responsibility as a reporter, you have the right to report it, but i'd rather look at what the bigger picture is.

>> melissa: i think we can figure out -- when it gets to the specific case, you can figure out where it came from. there's enough computer data, who downloaded everything, who printed everything, who gave every thing to everyone. now that they've laid down the marker and if they don't follow it up and go after at least one of these situations and really make an example out of someone, then -- >> kennedy: there has to be some sort of follow-up and that's the thing with this case specifically, it has to be a higher profile person. enough of the reality winters >> harris: what i like about what jeff sessions said, this is what keeps us safe because that should be the bottom line.

go catch these people, do what you have to do. basically stop all that information flow. if, in fact, what jeff sessions is true, there will be great for this country. he wants to catch these people be for the next time they get to do it. they're going to use this 17 days the you talked about, not to find out who else has leaked, pump to prevent it from happening again, that's what counts. >> david: the last part of his statement when he said when a leak is out, it's already too late. jeff sessions is going to follow through, look at what he's doing with the gangs. he gets up and does his job every day. >> sandra: will leave it there, special counsel robert mueller reportedly in paneling a grand jury in the russia probe as president trump slams the investigation as fake. we debate how it will all play out and a warm welcome for a president and west virginia. my one call message saying president trump still has a

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russia investigation. a special counsel robert mueller has reportedly impaneled a grand jury in in the wide-ranging investigation. reuters is also reporting subpoenas have been issued in connection with the meeting donald trump, jr., had with the russian attorney and others during the campaign. president trump slammed the investigation at his west virginia rally last night. >> the russia story is a total fabrication. it's just an excuse for the greatest loss in the history of american politics, that's all it is. what the prosecutors should be looking at our hillary clinton's 33,000 deleted emails. there were no russians in our campaign. there never were. we didn't win because of russia, we won because of you. that i can tell you. >> harris: president trump's attorney insists that this is not mean the president is under

investigation. here's kellyanne conway. >> let me remind everyone what the president has said about this, it's a witch hunt, it's fake. last night i believe he called it fabrication, and we know the nature of these investigations become fishing expeditions where you're just throwing jell-o against the wall and hoping something will stick. that fact is this white house and everybody involved has said they would comply and share information they do have. >> harris: james clapper who served under president obama said he thinks the appointed grand jury means there is a there there. >> it looks that way and i don't find surprising that this development, given this long period in which the special counsel has been at work and i also read into it when bob mueller hired more staff, there

is there there. >> harris: such a there. >> david: maybe that's what we should call his investigation. first of all, we talked about leaks. grand juries are typically secret, so it starts with another high-level leak. >> harris: this specifically benefits mueller's aside. >> david: we don't know this. the grand jury process allows you to move expeditiously through an investigation. you can bring people in, it's called a perjury trap because they look to get you on a charge, you lied to the grand jury so they can charge you with something to get it to somebody else. it doesn't prove anything, but it also brings a point back that we ignore in the media or lease many people do, i don't, which is it started as a counterintelligence operation with the fbi into russian interference of the election and

continues which means unless trump was running against air, the clinton campaign would be brought into this. >> melissa: the way to do this is follow the money once and for all. whether it's mike flynn or paul manafort or the clintons who accepted that $500,000 for a speech, half of that going to hillary clinton at a time when russia had business at the state department, it was being considered to be banned from the u.s. under sanctions. she financially benefited, let's follow the money. republican democrats, left, right. >> kennedy: she was in violation of the agreement she signed. if you look at various parties who might have been wrapped up

in some sort of russian collusion because i've always said that that's what the clinton foundation was. it was a collusion factory. back to the grand jury, there are a couple of interesting things here. before they go before the grand jury, they are not bound to secrecy. they can talk about their experience. they don't have lawyers there. the individuals who were subpoenaed to go testify before the grand jury, there are essentially walking on a high wire. >> harris: this has been the criticism that has been brought into both sides of the political aisle. >> sandra: the president saying this is a distraction from more serious crimes. >> david: he's playing to the base. it's what politicians do. i would take it at a different

approach if i were the president. i would do exactly what i just aside, this is an investigative mission and russian interference. unless i'm running against nobody, other parties -- it ran paul came out months ago and said i might have been caught up in this. there's a another money try to follow. you can go to the senate's website and see it. they represented russia's largest bank. they were paid for it. podesta was chairman of the clinton campaign. if you want to follow real money, let's follow it. >> melissa: there so many bread comes around and it's very clean. obviously russia wants to have an influence over everything, that's a foregone conclusion. let's follow the money. they gave it to plenty of different people and let's punish everyone who took money from someone they shouldn't have. >> harris: what makes it more fair when you bring up podesta,

this is a fishing expedition someone when you talk about broadening it out to all of the money trail with our current president and this investigation. if we do that with everybody, it is like breadcrumbs. >> kennedy: the investigations become so broad and take so long that you never get to the truth and it's a political exercise and wasting time. >> harris: you might argue that it's already that now. >> david: what have they produced? where's the evidence? >> harris: it they are still with him, the huge show of support for president trump seen it last night's rally, did you see it? why his unwavering base may be something that his opponents should take notice of. in the president is not happy with either party when it comes to the failure of health care reform. we know he doesn't mince his words.

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♪ >> sandra: off of the rest of the summer? no, not me, i wish. [laughter] congress heads home for its august recess without sending the health care bill to president trump's desk. mr. trump blasting the inaction and his rally last night in west virginia. >> honestly, how the republicans

and the democrats let us down on that is hard to believe. repeal and replace, hard to believe. hard to believe. [boos] >> sandra: the president venting his frustration after no reports of the obama administration misled americans on what their plans would cost. where do we begin? i am here the rest of the summer, by the way. >> david: probably about a month ago, i wrote an article, no summer recess without tax reform. that's the environment today in politics. the point here being that these guys, these men and women who get elected to go do a job, they are leaving their home to talk to their constituents, we've talked to them. we've told them fix the problems with the aca, get rid of it. we voted the men for that. tax reform, get it simple fight,

that problem. here, they're going home in august and what have they done? no summer recess. the president's right, the ad administration is right, stay in d.c. and do your job like any soldier who is deployed from their families for a year or more, you can stay and do her job and go home on the weekends if you choose. however, i will say this, i'm a fan of one idea that i've been pushing. give the president a summer recess so he can do his recess appointments for his administration. so the people who don't like the disruptive influence of president trump, when they go on recess, make the recess appointment under the constitution. they will have to do it. >> kennedy: what about those who fear he's going to fire jeff sessions and try to appoint a new attorney general? >> david: or they're going to do about it? nothing.

>> kennedy: there was a huge number of appointments confirmed this morning. >> david: jeff sessions is doing too much right now in his job. he's not going anywhere. >> kennedy: back to the recess, i agree with you. they should not be taking time off because not only with the health care field, we've talked about this so many times, the economic necessity of reforming the tax code, giving tax cuts to corporations and individuals, it is so required. at some point, if we don't have the economic impact of tax reform, wall street is going to slow down and we went to see the whole thing -- >> sandra: my only point would be they want leverage. they went that corporate tax rate to come down to 15%, they will lose leverage.

>> david: can i tell them how they do it, there's three easy pieces, we've written about this, 51 votes, you don't need the super majority, you lower the corporate tax rate to 15%, you do -- >> sandra: hold on, we are getting off topic. hold on. >> david: the senate can do this, they can do it. >> sandra: to go back to that point, remember see eyeing couch several weeks ago, maybe they're going to call this often stick around. are you disappointed? >> harris: yeah, i'm disappointed. i'm also disappointed -- there is a monsoon on the horizon in addition to the daily leaks, but i want to look at

that 22,000 plus dow that we had. if they don't get this done by the end of the year, will we see some of that fold? >> melissa: absolutely, so much of that is predicated and it's appalling that they went home for the break, congratulating each other on having done nothing. that may be beyond furious. in the meantime, a big show support for president trump, thousands turning out for that rally in west virginia last night. the president telling supporters that he has kept his promise to defend our borders and also touted the record start market rally and improving jobs numbers. mr. trump also says he will never forget the tens of millions of americans. we'll speak it we believe in god, we believe in family, we believe in countries. we know there are powerful forces in washington who want to stop us. we won't let them.

[cheers and applause] i didn't come to washington for me, i came to washington for all of you. that i can tell you. [cheers and applause] >> melissa: charles krauthammer says there rally was a clear message from president trump to the washington establishment, take a look. >> i think this appearance that he did in west virginia tonight as a way of saying my numbers may be down, but i command a formidable army. he wasn't specific on policy, but he said i'm bringing value back. i'm the only one who listened. that's his appeal, that's how he won the election and he's reminding the elites that that appeal is still there. >> melissa: still to this day, even though he won the election, there are so many out there who don't know that there is this giant group in america that support the president. they are so hermetically sealed

in their elite bubble, they don't know that there are a lot of people out there questioning and the president. >> kennedy: with their cosmopolitan bias. >> melissa: pretty much. >> harris: would it help if there were others in the mainstream media who did some reporting on all those people? maybe they could pop the bubble. look, when you look at the numbers for this president among his base, there is some chatting. there is a need now to get the message out, not just to everybody else, but within the base of the southern states. arizona is in trouble, he's underwater right now. his mass approval rating is a negative double digits. it isn't just get the word out and how good people feel and blah, blah, blah, there is some shoring up to do. >> kennedy: politically, it's a smart move.

it dovetails into twitter where the president gets heat for some of these comments on twitter, but the rallies are much more scheduled and he is on a teleprompter, he's on message and its way for him to control the message when weeks like this, it's really gotten away from him. >> harris: the challenge is this come out when pulling numbers came out the latter part of last week, early this week about where he is, he didn't need to go to west virginia. those were three of the states where he was in double digits above the line, more people approve the disapproved. it was other places like ohio where they're starting to slide and even into those southern states and there's a definite shedding of support within the base. >> david: let's see why going to west virginia matters, what else happened in west virginia last night? you have a businessman governor, switching parties. when you send a message to the republican moderate senator, but to joe manchin who is going to be challenged to some degree.

switching over brings that rust belt more in line. also in a statewide election which i governor has to win, start as a senator. what does that say to others out there? >> kennedy: that's why he wanted to switch parties because your status all right right now, they want to embrace you with open arms. that was the point of having governor just as they are making a big announcement next to the president on stage. that was a direct message. >> melissa: at your point is a good one, harris. the idea that he's made a lot of promises, americans are keeping track. they need the jobs, they need the health care, they need the economy, they need the tax code to change. >> sandra: they need a win. >> david: they've had a lot of wins. the media doesn't report. we need the big ticket items. when 1,000 people were sent

out of the epa, when you have over 500 people fired or disciplined, something that never happened before, then you have all these other bureaus being slimmed down, the day-to-day work is getting done, but that is make the headlines. the republican party needs the big ticket win. whether his tax reform, a aggravated their responsibility. >> harris: will they do it? >> david: the problem is, susan collins is a "no" vote, rand paul is a "no" vote. the republican senators are to blame for the failure. >> melissa: there's enough blame to go around for everyone and they need to get something done. meantime, chief of staff, john kelly bringing in a military style discipline to the white house. is it having an impact and what else does kelly need to do to help the president's team on track? ♪

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♪ >> kennedy: welcome back, general john kelly's military style role appears to be in full swing at the white house. mick mulvaney says they are already seeing a different flow and a different discipline in the west wing. kelly has been at every oval office meeting he's attended. the near-term reports general kelly has a strict watch. he listens in on conversations between cabinet secretaries and the president, he has booted lingering staff members out of high-level meetings and ordered the doors of the oval office closed to discourage strays. he has demanded everyone, including his family, check with

him if they want face time with the president. that was a big question, whether or not general kelly would have have -- >> david: we've got a chain of command being established now. when you look at guys who have been successful chiefs of staff, what did they do? they kept the line of communication, the chain of command, general kelly, he understands the political world very much because that's a big part of his job. he understands the control structure that is needed.

>> kennedy: general kelly is treating the president like the president. i love it. >> harris: is forcing other people to treat the president like the president. his attorney general talks policy on several different fronts and the news hasn't been stepped on. >> melissa: leon panetta appeared on the fox business network a short time ago and said i like john kelly and he went on to say why and he said he's got to be the chief of staff. >> david: he's got command in the field, he understands why you need that chain of command. it doesn't hamper, and makes it easier to get the job done. to your point, you're not stepping on the story, someone isn't going out of turn and the white house needs this order.

>> kennedy: what kind of thing was reince priebus running? this attorney general is needed to impose order. >> sandra: exactly, what does that tell you about ivanka trump and jared kushner telling him when they want to be with the president? >> david: it was a lot looser. there is a staff structure that has to be in place. they can talk to dad anytime they want, but as the president of the united states and that oval office, there's a time when the priority goes to the attorney general, or whatever the case may be. >> harris: i caught something else in all of that when they were talking about the ancillary aids that were hanging on the outside of the door, you talk about renting a leak, there were people who were in meetings that weren't even invited to those meetings. now those people have been pushed aside. >> kennedy: and including a

jared kushner ally he was kicked off the security council. >> melissa: it's a great move, it's a great change, i hope it stays that way. >> harris: even democrats are saying this, our guest this week said consistently, if we are going to do business, effects going to be bipartisan, how can you have a bipartisan environment if there's something questionable happening inside the white house in terms of messaging a narrative? even democrats may find their footing, i don't know. >> david: i can see chuck schumer is finally coming on board, i don't buy that democrats will go along with anything. >> kennedy: oh, chuck schumer. attorney general jeff sessions taking new steps to punish cities he feels may not be cooperating with federal immigration laws telling those of cities to prove they do not

employ policies. can this approach get the job done or will it backfire? more and moments from the couch. >> david: go jeff. with hydrogenated oil... ...but real joyful moments are shared over the real cream in reddi-wip. ♪ reddi-wip. share the joy.

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♪ >> harris: attorney general jeff sessions is ramping up efforts to crack down on sanctuary cities. now for cities seeking federal aid to reduce gun and gang violence must first prove they do not employ sanctuary policies that shield illegal immigrants. in a letter to the cities, sessions writes this. the doj is committed to supporting our law enforcement at every level and that's why we're asking sanctuary jurisdictions to stomach and their jobs harder. we are encouraging every jurisdiction in the country to cooperate with federal law enforcement. this is the response. this is a bullying tactic from an attorney general who was so determined to make misery in the lives of immigrant families that he is willing to withhold federal crime-fighting dollars from a city that sorely needs it. his actions are petty, course of, and dangerous for our

community. officials say that they're unclear why these cities are being cycled out. is the only one with an official sanctuary policy. san bernardino county has one, but as police chief says the city itself does not. what your thinking on this? >> david: think about what's coming up. budget. we've got a new budget year coming in, which means they can tie federal dollars to make up requirements, these cities can push back all they want. when you have multiple deportations, multiple arrests, criminal illegals, and one case, a 20 something-year-old who brutally beat a woman. another one, you had one who raped a 13-year-old girl. you need to get rid of those criminal illegals.

who do they prey on? they prey on the illegals in those cities. they are easy targets. they prey on others, but they prey on illegals. >> sandra: it's a very simple decision what these cities have to make. what their priority is. they are choosing the priority, not jeff sessions. >> david: they've chosen not to protect everyone in that city and keeping criminal illegals there and protecting them does not protect anyone in the city. >> harris: the only thing was he about that is if you are here illegally, you're already. i understand the nomenclature of criminally illegal. >> melissa: you don't a jeweled drill down that far. when you look at the letter and what they're talking about, you're saying they're going to withhold money to combat drug trafficking and gang crime, unless this city is willing to notify agents before releasing and incarcerating inmates that

are already wanted on immigration charges. it's so slight, they're making way too big. we're not going to give you these dollars to fight gangs and drug trafficking unless you already have someone in custody. before you let them go, you just check with us. everybody's making this into a huge issue. throw him in jail. it's not outrageous when you look at this. >> harris: when some of these don't have actual policy names, you know where to go. >> kennedy: they had special over 40, the chief of police there said it was a very helpful tool and they have to work within the community to not have

setbacks. they don't want to pull people over and have their immigration status. it's even more simple than how you broke it down. and the drug war and see what happens. stop pumping money to try and squash the supply of drugs because you only exacerbate the crimes in these cities. if you and the drug war and you legalize a certain drugs, you won't have them on the streets. that's what feels these gangs. >> david: you are so far off on that. they don't just do drugs, they do human trafficking. >> kennedy: it's a question of prohibition. >> harris: that's dynamic. it will be right back.

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>> we want to take this moment to say good-bye to someone very special and dear to the show, josh patch, our longtime stage manager. he is the guy you don't see because he is behind the cameras. why are you leaving us? >> i'm going to syracuse, back home where i grew up. i've been with fox for 11 years. i have been the #oneluckyguy

every day. >> all the best to you and your beautiful wife. >> and keep playing that country music. >> have a wonderful weekend everyone, see you monday. >> rick: this fox news alert from fox news global had headquarters in new york city. this comes after a strong jobs report this morning. >> molly: u.s. employers citing more than 200,000 jobs in july as the unemployment drops to 4.3%, all of the strengthening president trump's claims that his administration is working to boost the economy. we are covering all the news happening now. >> we are taking a stand, this culture of leaking must stop. >> molly: attorney general jeff sessions addresses the leaks of classified material, but will that help stop