before you begin an aspirin regimen. our mission is to provide complete, balanced nutrition... for strength and energy! whoo-hoo! great-tasting ensure. with nine grams of protein and twenty-six vitamins and minerals. ensure. now up to 30 grams of protein for strength and energy! >> welcome to the journal editorial report. i am paul gigot. justice brett kavanaugh officially took his seat on the supreme court this week. but the political fight appears to be far from over. with a bitter confirmation battle helping to win the debate over civility pit something 2016 democratic presidential candidate, hillary clinton says, will only return to politics of democrats take back congress. >> you cannot be civil with a political party that wants to destroy what you stand for,

what you care about. that is why i believe if we are fortunate enough to win back the house and the senate, that is when civility can start again. paul: let's bring in wall street journal columnist and deputy editor, dan heninger. editorial rater, kate odell and assistant editorial page editor james freeman. dan, your very civil person. >> most of the time. [laughter] paul: what is this message from democrats? this is in the wake of the kavanaugh defeat for them but is only one supreme court seat. >> well, will level the message has been that because of the kavanaugh supreme court fight, democrats are enraged. and that it will animate the base, energize them, drive turnout in the november midterm election. we understand that. i think something else is going

on here, paul. which is that an aspect of the democratic left, the progressive movement, the ones that demonstrate in the galleries the ones that get themselves pulled out of senate hearings, what i call the code pink left have been taking over the party the way san francisco democrats took over and 70s and 80s. back then that was a huge user for the democratic party and it made a lot of generalized voters nervous about the nature of the democratic party.i think that is what has come back to take control of the democrats. most of them were playing 2a. cory booker, kemal harris, heather clinton. i do not see how it can be a winner. paul: let's look at this with the supreme court. justice kavanaugh has heard two cases. he is on the court he is just is not.they say cory booker,, we will impeach him. and others say they're going to look into this and should release the confidential fbi

interviews in public. you know, basically, raw fbi files, let's release them in public. others saying you know what? maybe we need to change the supreme court it is illegitimate. >> it is kind of amazing, isn't it? this point we have come to with hillary it's an interesting campaign promise. we're going to be rude and insufferable until you vote us back into power. and as you said, the debate on the democratic left, at least among people who write in left-leaning publications has gone from, should be restricted the entire judiciary or should we get rid of the supreme court altogether? and this idea that you do not accept the outcome when you lose and you want to restructure american government to suit your political insight i don't think is a mainstream opinion. paul: i think our friends on the left would say james, that donald trump, rude, often crude and nasty.

we're just giving it back in kind. what you mean? you don't want us to play the same way as the president does? we can do that too. >> there talking about something different from the occasional insensitive or misguided tweet. we talk about demanding and of the constitutional order because you do not get the election we wanted or did not get the justice you wanted on the supreme court. i think it is frightening and not very appealing except for to a very small -- paul: do you think we should take it as seriously? the idea of this may be, adding two seats on the supreme court in 2021 for democrats to take over? they obviously would not be able to do as long as donald trump as president. but could this be a campaign theme? use the court majority and therefore it you add seats on the court? >> up slowly. it is important to remember that the number of supreme court justices not enumerated in the constitution. and we forget how close fdr

came to packing the court when he tried to do it. and it is entirely possible given the volatile sentiment right now we have the democratic party. they could try to do something like that. we should absolutely take that seriously. paul: what to think of the president saying what i think will be a theme for the republican party which will be to betray -- portray them to say open borders immigration for example, accusing the democrats of, economic model based on venezuela for example in calling them radical. >> right. i think it is regrettable with how polarizing it is but we do have democrats campaigning, calling for abolishing i.c.e. this is now getting into the mainstream. democrats are starting to normalize it. i think he has every right to explain to voters that even if republicans are not delivering on everything they promised like repealing obama care,

there are reasons to see that the alternative is not very palatable. >> as far as the personality of donald trump, we are looking at an election cycle. donald trump did this earlier, what people remember is the past four weeks dominated by the kavanaugh hearing and what they saw was democrats attacking kavanaugh and not only that, but after confirmed in seated on the supreme court, if senator blumenthal and nancy pelosi saying they will continue to try to seek documents to drive kavanaugh off the supreme court. that is what is in front of the american people right now. and that is what the democrats are hoping -- paul: you say this is not just posturing, is something the democrats want to do. >> absolutely want to do it. it is not just for show. they say they want to get him off the supreme court. i things outside of the boundary of american politics and i think most people would recognize as such.

paul: thank you, president trump stumping for republican candidates in pennsylvania and ohio this week as democrats look forward to -- is the rust belt stilltrump country?

>> under republican leadership, america is booming. america is thriving. and america is winning like never before. and we are unleashing the power of pennsylvania shale and clean, beautiful pennsylvania coal beautiful, beautiful clean coal. we are putting our minors back to work. we are putting our steelworkers back to work. paul: i was president in erie pennsylvania wednesday rallying voters in a state that played a pivotal role in his 2016 victory. the democrats are eyeing the keystone state and others in the industrial belt. in the push to take back the house and maybe even the senate

this november. part of the country that the republican strategist, john knows well he was a senior advisor and media consultant for rick santorum 's 2016 presidential run. welcome back to the show. >> glad to be here. paul: a said about the states, pennsylvania across the great lakes, wisconsin, illinois and minnesota. they do not look very good for republicans this year. what's going on? >> they don't. right now we are traveling all the senate races, the governor races were behind in all but one. scott walker is the only incumbent. he is in a pretty tough race right now. and so, to me what makes this fascinating is, i will keep saying donald trump won the state and they can look at congressional districts and michigan in pennsylvania and the present won by 12 points but it is tied, why is that? are they leaving the president? i think that's the wrong question. i think the question is, is a conservative or blue-collar

democrat when they vote for donald trump, does it mean that they are now voting for republicans? i don't think that is necessarily true. we did not see that 2016 in pennsylvania when donald trump did very well in the western side of pennsylvania and ran way ahead of pat toomey. even the pat toomey won pat toomey of the picking up folks in the eastern part of the state. president trump didn't. i think number one will find out, is a pro trump vote really a pro-republican vote and it may not be. i think people see president trump as a third-party candidate. the second thing is hillary clinton is not on the ballot. and you know, we have to remember that. it was a choice election. and i would tell you if hillary clinton was in all the states running for the senate or house, i'm guessing republican candidates would probably be doing a little better. >>. paul: that you look at john kasich, you look at rick snyder, you look at wisconsin, scott walker running for the

third term. and bruce rauner won one term. he is really behind in illinois but the upper midwest, that has been a pretty strong, it was a very strong for republicans.the obama era at the state and local level. so voters were clearly willing to vote for republicans in those races at the time. why not now? >> first of all, i think a couple of things have happened. second, we know historically that in the first ever president two years in, the party in power weatherby governors race, senate race or house race, it will have some problems. we will not break history. paul: right. >> let's be clear. second of all, what donald trump has done is also inspired a new set of democrat voters that do not normally show up in nonpresidential years. you know, people have a tendency more likely to vote against something then for something. and so, if you look at the most engaged at this point, what we know is that they tend to be

very left-leaning, they tend to be more female and they tend to be younger than typically we would see in a nonpresidential election. that is because of the president and the opposition to the president. in fact, have an uptick for republicans because of the republican side, there was so much offense to what they saw in the kavanaugh hearing, for the first time they are really becoming much more engaged. that is why we are seeing some racist titan. paul: so this the question right now at this stage of the race whether republicans enthusiasm can catch up in the wake of the kavanaugh hearings, can catch up with democratic enthusiasm. i want to ask you about the economy because donald trump talked about in a clip we saw. you know things are going well, the economy growing at four percent or so after two percent for eight years. is that breaking through to voters at all? or are they saying, that is good let's talk about something else?

>> no. and that's where you get to messaging problems. for example tax cuts are seeing is a 50-50 issue. have people like them and halftone. 91 percent of taxpayers get a tax cut, yet, you have a 50-50 issue, it makes no sense other than poorly message. if you go to exit polls in 2016, two key issues people care most about, jobs and the economy and fighting terrorism particularly isis. two areas where i don't think there's anyone in the country could not or could argue that the president hasn't done a terrific job. yet, it is not what is driving the 2018 election. and i think frankly, it is a failure of our party in general. paul: they just haven't made the case for it. if you look at the press releases i get from republicans on capitol hill, that is all the talk about. that is what they are sending all the time. donald trump is on the stump talking about it. but maybe people are just saying you know what?

great, he made the promise succeed, great. but let's talk about his personal decoro more or less talk about healthcare or something else. >> and i think that you hit it right because i've sat in a lot of focus groups. even a lot of people that like the president, particularly blue-collar states do not like the tone and rhetoric. that is number one. number two is coming to the president and the party are too easily put off message for the present likes to move on to the new instead of reinforcing everything over and over again and staying with the message. i think it is problematic. number three, i think the democrats have become very unified. in trying to attack the president anyway they can. and i think they have been effective at doing that. paul: all right, thank you john brabender. we watch the coming weeks for still ahead, from the kavanaugh confirmation to medicare for all, our panel takes a closer look at some key term races and issues both parties hope will drive voters to the polls.

>> a fox news alert for you. president trump taking questions from reporters on the south lawn before leaving the white house. and the president by the way is heading for lexington kentucky. where he will land at the airport there and then track on over to eastern kentucky university. a rally at the alumni coliseum and the president is campaigning by the way, for republican, there is a marine one arriving at joint base andrews to drop the president off and that is air force one there. the president will be heading to kentucky, lexington kentucky where he will be campaigning for the republican congressman there, andy barr. who is seeking reelection for a fourth term. by the way, this is one of the countries most closely watched races which is why joe biden was there last night

campaigning for a former marine fighter pilot. she is the democratic candidate, amy mcgrath. student to be a strong candidate of the gop incumbent. andy barr. this is marine one as the president is getting his ride on the way to meet his airplane, air force one. [inaudible] [inaudible] >> i hope not. we will find out what happened. we are looking very hard. a lot of very good people on it. so does turkey, so does saudi arabia. you will be the first to know. [inaudible] we are looking everything that you can look at when it comes to illegal immigration. we people trying to get into our country because of how well our country is doing.

and in the old days when the country wasn't doing well, it was a lot easier. now everyone wants to come in and they come in illegally and they use children. in many cases the children are not theirs. they grabbed them and they want to come in with the children. so we are looking at a lot of different things having to do with illegal immigration. what should happen is democrats should pass good bills. this is the same situation that president obama found himself in. he had separation and people did not talk about the famous 2014 -- the author was our picture of the president, it was a picture of young children in jail cells, that was during the obama administration. we want to do whatever we can do. we have people trying to come in like never before. our border patrol, i.c.e., law enforcement doing an incredible job but we will do whatever we can do to get it slowed down. [inaudible question]

>> well, i will say this. if they feel there will be separation, they don't come. you know, if they feel their separation, is a terrible situation. we want to go through congress but the democrats do not want to approve anything. they are obstructionists. if they feel their separation, in many cases, they don't come. but also in many cases, you have people coming in using children. they are not theirs and they do not even know the children. they have not known the children for 20 minutes. the grandchildren and they use them to come into our country. we have some really bad people out there. we are doing an incredible job but the one thing i will say, the country is doing so well economically in every other way, that more people want to come in than ever before. so we have to be very strong. [inaudible question]

>> i do but they have to come in legally. i want a lot of people to come in. frankly, we need people coming in because we have a lot of companies moving back in, jobs are coming back in. take a look at all of the new plans being built in the united states. we have a lot of people calling me. they want workers. and we want people to come into our country. that's what people don't understand about me. but they have to come on a merit basis. that is what we are working out with congress. [inaudible question] >> chain migration is not a good thing. chain migration is bad. if you take a look at the lottery system, that is bad. what i want is merit. i want a lot of people to come in. we have great car companies entering our country again. this hasn't happened for 35 years. we have companies going to wisconsin with a massive, massive plan.

we need people coming in but we want them to come on a merit. we want people that are going to help us. it is very important. we want them to come in on a merit basis. >> mr. president! [inaudible question] >> as far as i am concerned as far as if it is an issue that for those that do not here, immigration is always tricky. to me it is not tricky, you have to do the right thing. whether there is an election or not. i'm very tough at the borders. we have been very tough at the borders. people have to come into the country legally. not in illegally. legally! and i wanted to come in on merit. if that is a bad policy to guess what? a lot of bad things will happen and a lot of people agree with me. i would say a vast majority of our country agrees. they do not want criminals coming into the country.they don't want people that they don't want in the country that aren't going to help us as a country. they don't want those people coming in. so we have a very strong policy.

the one thing that really has changed over the last couple of years since i've been president, our country is doing so well. not with false interest rate, zero interest. anyone can do well with zero interest. but our country is doing with, the hottest country in the world economically by far! you look at us compared to china. compared to everybody else wit , we are the hottest in the world. a lot of people trying to come in. our border security, our i.c.e., law enforcement is doing an incredible job. [inaudible question] >> you have children coming in. they are coming through mexico and they are unaccompanied. they have no parents. they may be back in the country that they came from, honduras, and a lot of other countries.

or they may not. but your many people coming up, many young children.i mean really young children. they are pouring into mexico and we are taking care of -- they have no parents or their parents are not mexico. in most cases, not in mexico, they are from other parts of the world. it really is a humanitarian tragedy in which we are taking care of it. this is a case where people grabbing children and using children to come into our country in many cases. [inaudible question] >> we will have to see what happens. a lot of work is being done right now. now one of the reasons it was my first pick is, if you remember, it was $110 billion

of military that they were going to buy. but they were going to invest $450 billion in our country through the companies i think you are there. and all of these, raytheon and general election and general motors, they were there getting contracts for 25 million, 30 billion, no one has ever seen anything like it. when you say, that was my first country, that was my first country because no other countries are going to be investing $450 billion. $110 billion in the military. that is a lot of money. [inaudible question] >> china wants to make a deal. china would love to make a deal. i don't think they are ready yet. i just don't think they are ready yet. they had made too much money for too long. they've done to our country is taken anywhere from 300 billion

ã$500 billion a year. rebuild china, i have great respect for china and for the president. we will probably make a deal but i don't think they are ready. they are not doing well. if you look at the economy is not doing well. and we are doing very well. we are doing better than we have ever done. but i told them, a week ago, they want to come in and make a deal. i said, you're not ready to make a deal. [inaudible question] >> i have not named the new white house counsel. but over a short period of time i will. who? [inaudible] >> i don't want to say he's a very talented and good man but i do notwant to say yet . [inaudible question] >> i don't talk about that. i just say this, and i say

this. no collision, there never was and there never will be. [inaudible question] >> from where? [inaudible question] >> i do not understand your question. >> are if they are responsible then you continue with a big arms deal like that. >> there are many things we can do. when we take away hundred and $10 billion of purchases from our country, that hurts our workers. that hurts our factories, that hurts all of our companies. you're talking about 500,000 jobs. we do that, we are really hurting our country. a lot more than we hurting saudi arabia. they will go to russia, they will go to china, the equipment is nowhere near as good as our equipment. they know that. our equipment is the best in the world. but they will go to china, they will go to russia, they will order equipment. we are just hurting ourselves. we would do something that doesn't have to do with that in

my opinion. but we don't know, we don't know, no one knows right now the answer. we are looking for the answer. >> would you personally sanction the king -- >> right now turkey is deep into it, we are in constant communication. further, other countries are looking at it including us. we will get to the bottom of it.we will have to see. [inaudible question] >> u.s. is very much involved. we want to find out what happened. [inaudible question] >> we have had people speaking at the highest level and i did not want to call until we had enough information. now i want to call. probably over the next 24 hours. [inaudible question] >> who is going to kentucky? are you going to kentucky? you would have a great time. 93,000 applying for 10,000 -- there is something going on.

this reminds me of 16. it reminds you of 16 too. speak toeric: that was the president, there he goes! on board of the 757, a c-32 air force one going from joint base andrews to kentucky for the rally that will be held later this afternoon. the president taking a lot of topics from immigration and the economy and the tariffs in china. also among them, the case of jamal khashoggi who was thought to be murdered in istanbul, turkey. the president saying he will talk to the king about that. the crown prince has denied his country has any involvement. saying that the journalist walked out on his own, he claims.

arthel: and the president juggling a lot. kentucky with this closely watched race. nobody was there as well. right now you have that republican congressman, andy barr seeking a fourth term, reelection and the president is on his way to give him a helping hand. paul: just over three weeks to go until the midterm election, healthcare is shaping up to be a defining issue as both sides seek the advantage and some tight house and senate races. democrats accusing republicans of chipping away protections for patients with pre-existing conditions.while republicans are trying to tidy up on is to single payer government run healthcare. take a look at this ad running in kentucky sixth congressional district. [video] >> amy mcgrath was to help nancy pelosi passed a $32 trillion government takeover of

healthcare. >> my opinion single-payer is the way to go. >> did pelosi and mcgrath plan is socialized medicine and almost double the national debt. >> my opinion single-payer is the way to go. paul: we are back with dan henninger, kate bachelder odell and -- let's take pre-existing conditions first. that is the issue democrats are scoring well with on the campaign trail accusing republicans of not wanting to ensure appearance at have had cancer or other ailments. is that fair? >> it is completely mendacious. and given that we had a long debate last year about repealing obama care and ultimately didn't. what republicans were proposing was some version of what are called, high risk pools.which is basically, darkly subsidizing patients that are expensive instead of what obamacare does which is force everybody to pay a higher premium to care for the sick. the idea that mandates and

regulations are the only way to care for the people with pre-existing conditions is not true and also false. we hear all of the time that half america has pre-existing conditions but that's not how many people go try to get insurance and get denied based on pre-existing conditions.we have 150 million people in this country with employer-sponsored insurance. where that is not an issue. paul: it isn't even an issue. did the trump administration introducer rule for short-term plans which can be renewable without having to go through new underwriting? which means if you get one plan for a full year and you want to re-up, no matter what disease you have, you can get it re-upped. >> sure, and basically they are not regulating these -- and is important to point out that 49 democrats this week voted against the and susan collins

joined them. paul: lester to medicare for all. single-payer, republicans and a lot of democrats are supporting this but they say it is unfair to attack because it is not a party position. what do you think of that? >> i think many leaders of the party are, governor in california, also andrew gillum in florida, jared running for governor in colorado, his state rejected single-payer a couple of years ago when it was on the ballot. paul: by 16 or 60 senators. >> you also see kemal-- all the people for this.

i think it is a lowball. paul: you do? >> people usually utilize more healthcare when it is free. paul: and that is a figure from a respected financial fiscal analyst. so, is a fascinating issue, dan. because we will see who will win this healthcare debate. >> yeah. at that the democratic position is, they run on this idea of healthcare for all, take power and then deal with the wreckage afterwards, just like they did with obamacare.let's try to understand something. they call it medicare for all, universal healthcare or single-payer. it all means the same thing. 155 million people have employer-sponsored insurance, that would end, okay? you go into the government. medicare, that system would be dismantled. those people were going to the government. is the only way the system works. i think republicans have got to put that to the democratic opponent who will denied and say you have to explain why

medicare for all does not mean one government running everyone's healthcare. >> you can discover medicaid for all. and because -- >> everyone goes into -- paul: it would be more like medicaid. >> would have huge weight-- wai times. paul: but you say you have these efficiencies, no more private profits from insurance companies, you have administration, low administrator cost because the government with its legendary efficiency would be running the show. so those numbers are just not fair. >> that is ridiculous. i mean you mentioned the research, he made the most generous possible assumptions about savings from administrative costs. savings from lower prescription drugs. progressives point to the systems in small countries that they say are successful. obviously there is issue with that. and clearly, these countries have the luxury of running single-payer systems because

america still drives all of the worlds pharmaceutical innovations. which you can expect to come to a stop if government decides how much they're going to pay for your or my cancer medicine. >> and it pays for western defense as well that other countries don't because they spend money on all of these entitlements. still ahead, president trump and the federal reserve.what does this mean for the real economy? >> i think the fed is making a mistake. i think the fed has gone crazy. mechanic: midas has all the top brands of tires. king: yes! indeed. take these michelin tires for example... king: or these goodyear tires over here! now at midas, get up to $200 off select goodyear and cooper tires with the midas credit card. request your appointment today. ♪ my love has come along, applebee's new neighborhood pastas.

now that's eatin' good in the neighborhood. replace one meal or snack a day with glucerna... made with carbsteady to help manage blood sugar... ...and end the day with a smile. glucerna®. everyday progress. glucerna®. when it comes to managing your type 2 diabetes, what matters to you? step up to the stage here. feeling good about that? let's see- most of you say lower a1c. but only a few of you are thinking about your heart. fact is, even though it helps to manage a1c, type 2 diabetes still increases your risk of a fatal heart attack or stroke. jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit for adults who have type 2 diabetes and heart disease. jardiance significantly reduces the risk of dying from a cardiovascular event... ...and lowers a1c, with diet and exercise. let's give it another try.

jardiance can cause serious side effects including dehydration. this may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. ketoacidosis is a serious side effect that may be fatal. symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. do not take jardiance if you are on dialysis or have severe kidney problems. other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. tell your doctor about all the medicines you take and if you have any medical conditions. so-what do you think? well i'm definitely thinking differently than i was yesterday. ask your doctor about jardiance- and get to the heart of what matters. should happen everydred five hundred years, right? fact is, there have been twenty-six in the last decade. allstate is adapting. with drones to assess home damage sooner.

and if a flying object damages your car, you can snap a photo and get your claim processed in hours, not days. plus, allstate can pay your claim in minutes. now that you know the truth... are you in good hands? >> i think the fed is out of control. i think what they're doing is wrong. i think the fed is far too stringent and making a mistake. and it is not right. and despite that we are doing very well. but it is not necessary in my

opinion, and i think i know about it better than they do. >> i was president trump thursday criticizing federal reserve for continue to raise interest rates despite some recent market turbulence concern over rising rates contributing to this week's stock selloff. our the president's complaints about the fed fair? we are back with dan henninger and james freeman. all kinds of expirations offers for why the fed or why stocks fell. what is yours? >> i am all for criticizing the fed as a general matter. i think they make a lot of mistakes but in this case i think they're making the right move and ironically, it is because i think, they are comfortable now raising rates because the economy is doing so well, thanks in large part to the man we just saw criticizing the feds. it is kind of a commentary on how strong the economy is. >> some of this i think, is the result of the change that

basically the fed withdrawing the quantity of using bond buying and the zero rate policy that they had for eight years, that was deliberately intended to get people to sit on the long bond rate. that people would put money into riskier assets. like stocks! so prices went up even though the real economy was lousy, mediocre. so now rates are going up like james says, people are kind of putting money elsewhere and you think maybe you have a correction. >> i think that is right, paul. you cannot over emphasize that the feds would quantitate using engage in the greatest monetary policy and history of the world. zero interest rates. a lot of people have money in savings and that sort of thing. all that money got pushed into stocks. i felt very long time the stock market was vulnerable to some sort of outside event. it could have been interest rates going up, it could have

been donald trump trade with a weakening chinese economy, european economies go inside -- loss of tech stocks. whatever happened, it hit stocks this week and they have gone down. but i think donald trump should give himself more credit, deregulation they did and those have put such an enormous base under the economy right now. i kind of expect it will be short-term. >> what about the effects, people feel wealthier because they look at the 401(k) and think it has gone up. they look at assets and they feel, i'm doing good i think i will go out and buy that car or take that vacation. if they don't feel as wealthy because stocks go down, because it have an effect on the real economy? >> i think it is more of a, not the just of perception. you mentioned the obama years the economy was lousy so they tried to conjure this wealth effect. people feeling better even though the job market wasn't so great. i think here, have a great job market.you have a -- heavy

companies expand and people have basically lost a few months worth of gains in a great stock market. if you were in from election 2016, he still crushed it even despite recent turbulence. paul: you really have to have a much greater decline in stocks. 20 or 30 percent before you see tangible impact from a negative wealth effect? >> i would have a hard time seeing that because of the underlining economy being so strong. we are both the st. louis fed and the atlanta fed saying 4.2 percent growth this quarter. >> the third quarter. >> excuse me, the third quarter. i think there is a lot to say that this prosperity is real and it is not just conjured. paul: donald trump is a real estate man. i've never met, in my entire life, a real estate man that did not want low interest rates. [laughter] is that kind of what he is talking about here? >> i would say so. he is a businessman and you

know, most businessmen think they can run interest rates better than the federal reserve. i'm sure the fed is a pay too much attention to them. paul: that's an interesting thing, they are not! >> as you suggest, the federal reserve is under enormous pressure to get this interest rate increase right. if i threading the needle. there's no question they have a big job ahead of them, not to raise too quickly or too high. it could go the wrong way and donald trump sitting here on an election in november and obviously, as president, he is nervous what they might do. >> i think donald trump, if he stayed quiet he might make it easier for the feds not to raise rates paid is when they feel under political pressure and your politicians banging on them, keep rates low, you can begin to get markets raise questions about the credibility of the fed and its independence. >> it is a question for december. are they going to raise because they feel like they have to? in response to this.

i think if there feeling pressure, to meet expectations, this week's inflation number may be took the heat off a little bit. i think inflation ought to be zero. but it is close to where they like it or little over two percent.so they have some breathing room. paul:thank you. when we come back, amid rising tensions the trump administration takes a hard line on china. what the tough talk means for american foreign policy. next like the ones we teach here, every day. oscar mayer deli fresh ham has no added nitrates, nitrites or artificial preservatives. now deli fresh flavor is for everyone. like those who like... sweet. those who prefer heat. and those who just love meat. oscar mayer deli fresh. a fresh way to deli. .

>> the american people deserve to know that as we speak, beijing is employing a whole of government approach using political, economic and military tools as well as propaganda to advance its influence and benefit its interest in the united states.

china wants nothing less than to push the united states of america from the western pacific and attempt to prevent us from coming to the aid of our allies. but they will fail. paul: those vice president mike pence calling out china in an address last week that was largely overshadowed by the kavanaugh confirmation. my next guest says it could signal the biggest shift in u.s. china relations since henry kissinger visited beijing in 1971. walter writes the global view for the wall street journal. welcome. define what you think they strategic shift in policy is. >> i think the vice president was signaling that just as china has adopted the whole of government approach to changing the balance of power, the u.s. is looking at response. everything from trade policy to

military policy to alliance and development policy, the u.s. is not going to start looking through a china lens and using every instrument the government has, federal government has, to push china back or prevent jonah from changing the balance. paul: so that would be manifest say, new tariff policies for example tougher trade negotiations. how would it manifest itself say, militarily and diplomatic leak? >> militarily you will see we are ready have some of that, which is the large military buildup and i think this is a signal it will continue. these new military assets clearly a proportion of them is going to the western pacific. where there has been talk that the balance between the u.s. and china shifting in china's favor. diplomatically, i think the u.s. will continue to work with japan and other very close regional allies to encourage

other countries who were were are willing to stand up with china, i suspect it means you could even see something like a revival of the tpp. though i think it might be the trump pacific policy, rather than the original idea. he is also moving on human rights, interestingly. to challenge china human rights. paul: the trans-pacific partnership, the trade agreement with 11 or so nations. what about china -- does this mean first of all that a lot of people, i was one of them that china could be brought in, 15 or 20 years ago, into the normal western rules of trading and behavior. does that mean that it failed? >> not quite, paul. it seems to me actually, if you think about it, the goal of u.s. policy today still to try

to bring china into a stable or, more constructive relationship with that international system. that china is not going to go away. paul: right. >> but i think china has made, in order to really fit into the international system, china would have to make a lot of economic changes at home. in the calculus in beijing has been that the risk of international confrontation is less than the risk of domestic repercussions. and i think we are trying to change that calculus. paul: a lot of people in china think that this is just trump. he is -- maybe he is a short timer. we not going to see this

continue if trump leaves. so let's sit tight, ride it out. you don't think so. this you think is a bigger shift than just this president. >> i think that's right. i certainly talked to a lot of democrats and what i hear is that the problems they had with donald trump are may be on russia, maybe on human rights, generally.but china seems to be an area where the u.s. has been moving toward consensus for a while. and that consensus is for the stronger, less change china's behavior policy. what do we want to see from china? what does china need to do? >> will donald trump slogan, and he keeps coming back to this, is reciprocity. that china should extend to others, the same privileges that others extend to china. so, most recently, we have heard this in terms of well, if china is going to ban u.s. journalists and others from tibet, does that mean that chinese representatives can

operate freely all over the u.s.? if u.s. information companies have to comply with all kinds of chinese restrictions, does that mean chinese companies can just really run around the united states? so, trying to come to some kind of bringing china into a system where it doesn't exploit its trading relationship but there is a real set of rules that bind all participants i think is where we are headed. paul: do support that in general?we don't have a lot of time but do you support this? >> yes. in general, yes. paul: because you think otherwise, china could essentially, get away with bad behavior and then we end up in a worse position five or six years from now. >> that is exactly right. that they are pushing toward increasing their strength. using manipulation of the international system to increase their strength or challenge. paul: thank you, walter. great to have you here.

we have to take one more break. when we come back, hits and misses of the week. delicious boost® high protein nuritional drink now has 33% more protein, along with 26 essential vitamins and minerals boost® high protein. be up for life. boost® high protein. with all the shrimp you want, any way you want them. try new crunchy fiesta shrimp, tortilla chip crusted and topped with a creamy blend of three cheeses. favorites like garlic shrimp scampi are back, too. so hurry in before endless shrimp ends! to put on our website? i mean i would have but i'm a commercial vehicle so i don't have hands... or a camera...or a website. should we franchise? is the market ready for that? can we franchise? how do you do that? meg! oh meg! we should do that thing where you put the business cards in the fishbowl and somebody wins something. -meg: hi. i'm here for... i'm here for the evans' wedding. -we've got the cake in the back, so, yeah. -meg: thank you. -progressive knows small business makes big demands. -you're not gonna make it, you're not gonna make it! ask her if we can do her next wedding too! -so we'll design the insurance solution

that fits your business. -on second thought, don't...ask that. - [voiceover] this is an urgent message from the international fellowship of christians and jews. there is an emergency food crisis for elderly holocaust survivors in the former soviet union. - this is a fight against time. what we're dealing with is coming out, meeting someone who's 85, 90 years old, can't get around, has no food, has no water, and just wants to give up and die. and that's where we come in. we are called to comfort these people, to be a blessing to their lives. - [voiceover] for just $45, we'll rush an emergency survival package to help one desperate elderly person for a month. call right now. - [eckstein] call the number on your screen.

- in ukraine, there's no supper network. they don't have food cards or neighbors that come in to help. they're turning to us because they have nowhere else to turn. - [voiceover] your gift is a life line to help these elderly jewish holocaust survivors, help them to live out their final years with dignity and love. call right now. - [eckstein] call the number on your screen. . . . fering and your heart will be changed. - [voiceover] with your gift of just $45, we can rush an emergency survival package to help one desperate elderly person for a month. call right now. - [eckstein] call the number on your screen.

paul: time now for hits and misses of the week. kate, start us off. >> this is a miss this week for trump for saying his administration is going to allow this year-round sale of higher concentrate of ethanol. he said basically that right now it's not allowed because of pollution concerns but epa is going to look at changing this, which it's not clear it's legal. but paul, trump imagines i'm self a political outsider. in many ways he is. there's nothing more predictable than a preelection ethanol stop in iowa. paul: kyle. >> taylor swift waded into ticks politics for this time. he said he will never, ever, ever, vote for marsha blackburn. senator blackburn did the right

thing, which was to shake it off. the question is, is there nothing that's free of politics anymore. taylor swift has as much free speech as anyone else but also a lot of republican fans. she's created bad blood. paul: allysia. >> this is miss to exxon mobil who donated $1 million to promote a carbon tax, as well as bill gates who endorsed the carbon tax in washington state. in washington it would start at $15 per ton of carbon. the ipcc noted that you would need a carbon tax of 5 you $5,5o do anything to reduce climate change. this is just another redistribution mechanism for our electric car subsidies, et cetera. paul: dan? >> i give my miss to the postal service with the predictability of fall hurricane season is raising the rate on first class stamps to 55-cents.

i think the question is if they can ever been minimally competent anymore. paul: thank you all. that's it for this week's show. thanks to all of you for watching. i'm pauwe hope to see you righte next week. arthel: president trump meeting with american pastor andrew brunson just one day after his release from detention in turkey. the pastor spent two years in captivity in turkey in jail and under house arrest. this could potentially ease tensions between the u.s. and turkey as another diplomatic dust-up is taking shape. the president is issuing concerns and warning of sorts to saudi arabia over the disappearance of a washington post columnist. hello, welcome to a brand-new hour inside america's news headquarters many i'm arr