climate leaders like al gore, who said the bill is long overdue and necessary step to ensure the united states takes decisive action on the climate crisis that helps our economy and provides leadership for the world by example. inflation hawks like former secretary treasury larry summers said this bill is fighting inflation. let me say it, this bill is fighting inflation. progressive leaders like senator elizabeth warren said this is a bill that truly is about fighting inflation, bringing down the costs for families and putting the country on a sounder economic footing. here is how it works. first, the bill finally delivers on a promise that washington has made for decades to the american people. we are giving medicare, we are giving medicare the power to negotiate for lower prescription drug prices, which means seniors and consumers will pay less for their prescription drugs. medicare will save in the

process about $290 billion and in addition, also changes the circumstance for people on medicare by putting a cap of a maximum $2,000 a year they have to pay no more than $2,000 a year no matter how many prescriptions they have. for all the prescription drugs. which is especially important for people with cancer, and long-term diseases. it's a god send. literally be a god send for many families. second, the bill locks in place lower health care premiums for the next three years for millions of families that get coverage under the affordable care act. average savings of $800 a year for 13 million people. third, invests $369 billion, granted i call for 500 plus, but invests $369 billion to secure energy future and address the

climate crisis, bringing down family energy bills by hundreds of dollars by providing working families tax credits. it gives folks rebates to buy new and efficient appliances and weatherize their homes, and tax cuts for heat pumps and rooftop solar, and tax credit to buy any electric vehicle or fuel cell vehicle, new or used, and tax credit up to $7,500 if those vehicles were made in america. this investment in environmental justice is real. also provides tax credits that will create thousands of good paying jobs. manufacturing jobs, clean energy obstruction projects, solar project, wind project, clean hydrogen projects, carbon capture projects and more by giving tax credits for those who build these projects here in america. let me be clear. this bill would be the most

significant legislation in history to tackle the climate crisis, and improve our energy security right away. give us a tool to meet the climate goals that we have agreed to by cutting emissions and accelerating clean energy, a huge step forward. fourth, this bill requires the largest corporations to begin to pay toward their fair share in taxes. by putting in place 15% corporate minimum tax. now i know you've never heard me say this before, won't come as a shock, 55 of the fortune 500 companies paid no federal income tax in 2020. you only heard me say that about 10,000 times, but they paid no taxes on an income, collective income over $40 billion. well, guess what, this bill ends that. they have to pay a minimum of 15% tax on that 40 billion or

whatever the number turns out to be. fifth, this package will reduce the federal deficit by over $300 billion. already on my watch deficits come down in my first year by $350 billion, and record $1.7 trillion the end of this fiscal year. now this bill is going to keep that progress going. yes, i'll say it again. this legislation will bring down the deficit, bring down the deficit. sixth point i want to make is this bill will not raise taxes on anyone making less than $400,000 a year. and i promise, a promise i made during the campaign and one that i have kept, now look, i know it can be sometimes seem like nothing gets done in washington, i know it never crossed any of your minds, but the work of the government can be slow and frustrating and sometimes even

infuriating. and then the hard work of hours and days and months of people who refuse to give up, history is made, lives are changed. with this legislation, some of the biggest problems and giant step forward as a nation. that didn't just happen on this inflation reduction bill. it also happened yesterday when the senate made the bipartisan decision as a nation to invest in america's manufacturing technology of semiconductors and additional funding for basic research and development in the cutting edge industries of the 21st century. if the house passes this bill, i think -- i want to thank speaker pelosi, i think she's going to get it done, here leadership here, it has added to the benefit, it has the added benefit of creating tens of thousands of good-paying additional good-paying jobs. lowering inflation. the ability to not only compete

with china for the future but to lead the world and win the economic competition of the 21st century. you've heard me say 1,000 times. invest in research, development and growth. i hope the house will pass the bill today. get it done. we need to lower the cost of automobiles, appliances, smartphones, consumer electronics and so much more, and you can't do it, all of these things are powered, most everything is in our lives is powered by the semiconductors and tiny computer chips the size of a fingernail tip. look, we should pass this today and get moving. i know the compromise on the inflation bill does not include everything i've been pushing for since i got to office. for example, i'm going to keep fighting in the future to bring down the cost of things for working families and middle class families that matter by providing for affordable and accessible things like affordable childcare, affordable

elder care, preschool, the cost of preschool, housing, keeping students with the -- helping students with the cost of college, closing the health care coverage gap. it's a fancy way of something, the health care coverage gap, expanding medicaid in states that refuse to do it and more. look, this bill is far from perfect, it's a compromise. but it's often how progress is made by compromises. and the fact is that my message to congress is this. this is the strongest bill you can pass to lower inflation, cut the deficit, reduce health care costs, tackle the climate crisis and promote energy security. all the time while reducing the burdens facing working class and middle class families. so pass it, pass it for the american people. pass it for america. i'll have more to say on this

later. now i want to thank leader schumer and manchin, joe manchin, senator manchin for the extraordinary effort it took to reach this result. thank you. and let me speak to one other issue, one other issue. the g.d.p. and whether or not we are in recession. both chairman powell and many of the significant banking personnel and economists say we are not in recession. but let me just give you what the facts are in terms of the state of the economy. number one, we have a record job market of -- record unemployment 3.6% today. we created 9 million new jobs so far just since i've become president. businesses are investing in america at record rates, at record rates. foreign business, like s.k. and

others are investing in america. hundreds of millions and trillions of dollars total. $100 billion in semiconductor investments announced by intel, samsung and texas instruments. more than 100 billion in electric vehicle battery investments by ford, general motors, hyundai, tesla and more. and last week at s.k. corporation of the republic of korea announced $22 billion in new investment in semiconductor batteries, chargers and medical devices, another 16,000 jobs here in america. and this is powering the strongest rebound in america manufacturing in over three decades, creating 613,000, 613,000 manufacturing jobs. passing the chips bill is going to put another $72 billion for incentives and tax credits to

expand semiconductor production, and the inflation reduction act will add another $370 billion in clean energy tax credits in reconciliation, including incentives to accelerate domestic production of solar panels, wind turbines, batteries and critical materials processing. that doesn't sound like recession to me. thank you very much. >> john: president biden walking out of the state dining room there after refusing to accept the country has slipped into recession, even though we had our second quarter of negative growth there, the president saying, sandra, strong labor market and continuing signs of a strong economy would dispute the traditional definition of recession, two quarters of negative growth back-to-back. >> sandra: why not take questions? we are in the middle of an economic emergency in this country and the president is

touting spending and tax hikes in the middle of it. i mean, you really have to wonder what this transition is that they talk about and how married he and his economic advisors are to that. you are talking about right now, evidence of this right now, that the lower and middle class in this country are paying for this administration's policy mistakes and they have admitted mistakes along the way and heard janet yellen say she got it wrong. to tout more spending to bring down the inflation caused by the white house to begin with and the federal reserve and others as well, it's hard to believe this moment, john. >> john: it is, and the turn around by joe manchin was extraordinary, he said he was not going to vote for any new spending until he had a handle how it would affect inflation, he threw that out the window and threw in with chuck schumer and support the inflation reduction act the president is expousings,

far from perfect, compromise, how progress is made, and significant legislation in history to attack the climate crisis. so it is interesting to see that the white house again going to that well that the way to deal with inflation in this country and high gas prices is by pushing a green agenda. >> sandra: and that's really the spending that got us into this mess in the beginning. one other thing, the quoting of larry summers, formerly a democratic administration, obama administration, he's an economist raising the red flag on inflation and the problems for months that was eventually correct, it was pretty rich to have the president then quote him saying this bill is fighting inflation, again, the inflation that was caused by the government spending they are pushing more of. we'll have the panel in a moment. >> john: the advisors are cherry

picking quotes from larry summers, no questions about that. christie nome, great to have you in person. from south dakota. you've always been in that little box. an great to be here with you. >> john: the president resisting idea we slipped into recession because of a second consecutive quarter of negative growth. do you believe we are in a recession? >> i do, and what's interesting, he denies reality when the american public very clearly agrees that we can't continue down the path we are on. what he just talked about by spending more money, bringing forward more mandates on using energy sources that we can't even produce in this country right now, and then telling people they'll be paid for out of their pocket books by tax credits, while raising taxes on all of those individuals that supply them with the goods they need in their life, it's so out of touch with what every day americans are going through, it's hard to imagine someone advised the president to do this. and senator manchin, the turn

around, i don't know how he survives at home. >> john: he said if i can't go home and explain it to the people of west virginia, i can't vote for it. >> the e.p.a. said they are going to shutter coal fired energy producing plants early ahead of schedule to make us more reliant on other sources of energy that we can't even produce yet. so what this kril is going to do, make us more energy dependent on our enemies and the president is jeopardizing the country for the long-term. >> john: plenty of evidence that inflation is really hurting people who live in rural states like south dakota. when we take a look at where inflation is year over year, june 2021 to june 2022, gasoline up 59.9%, airfare up 31.1%. fruits and vegetable, up 8%,

used cars, 7.1%, particularly in a state where travel distances are, you know, if you go from one city in south dakota to another, you turn left, 400 miles and then left again. >> that's true. >> it's hitting home. >> i tell people it's hot in the summer, cold in the winter, a long way to drive in the state and agriculture is the number one industry so we are growing the country's food. and for 15 years i've been talking about food security as a national security issue. what this white house is doing is driving up the food costs and they are doing it by making us much more reliant on other countries who are buying up our fertilizer, buying up our chemical companies, they own our processing facilities now countries such as china are buying up land when they control our food, they will control us. and announcements like the president made today make that come more quicker. >> john: and what joe manchin

said about his, for lack of a better term, flip-flop, because he was absolutely against more spending. he said rather than risking more inflation with trillions in new spending, this bill will cut the inflation taxes americans are paying, lower the costs of health insurance and prescription drugs and ensure our country invests in the energy security and climate change solutions. we are not getting trillions in new spending but are gets hundreds of billions. what do you think led to his change? did he just succumb to the pressure? >> when people dig into the details of the bill, something in there that he wanted. it's interesting, it's health care reform, changes to the medicare program that democrats have long wanted, it's got a lot of elements to it that maybe have not surfaced all the way yet that were not in the president's speech and that's what's going to be the problem for this country and what is so broken about washington, d.c. >> john: and china, president biden had a two-hour call with

xi jinping, and in the readout from the chinese side, xi jinping said we firmly oppose taiwan independence, separatism and interference by external forces and will never leave any space for taiwan independence forces in any form. playing with fire will set yourself on fire, he went on to say i hope the u.s. side can see this clearly. how does the president respond to this? >> take that clearly as a threat. that is a threat direct from china and they obviously perceive us as very weak, and do not take this president seriously. what we have done on food security, supply chain issues has weakened american and now we have china emboldened to declare they will sell us on fire if we have taiwan's back. it's clear. >> john: we'll see what the white house says in its readout,

i expect it will not be as comprehensive. >> no, nor probably as direct. >> john: governor, great to see you. see you again soon. >> sandra: thank very much, great discussion there. guy benson, host of the guy benson show on radio and david asmen is joining us. what we just heard from the president, even though we kind of new knew it was coming, it's jarring. on the day where we have now officially entered recession, two straight quarters of economic decline, you've got a president pushing for tax hikes and more spending, david. >> precisely the wrong thing to do. extraordinary, what he outlined there, what we just heard the president outline, exactly what you don't want to do going into a recession, or in the midst of a recession. it's actually very interesting because there were two times it has happened, the fed raise interest rates, and going into a recession. one in the 1980s with ronald

reagan, and got ut out of recession was lowering tax rates and regulations, that saved us from the recession meant to curb inflation. another example when obama was president, coming out of a bad recession we increased taxes and increased regulations and we had the slowest economic recovery in the history of american economy. so, he's saying that exactly what got us into this mess is what is going to get us out of this mess, and just makes no sense. but the bottom line, this is biden's recession, and any chance of him a second term 0 to nil. >> that's showing up in the polls, guys. cnn poll, 2024, when asked, who should democrats nominate in 2024. biden only 25%, those who want a different candidate, 75%, guy. and you've got this president after the speech we just heard not changing course, even seeing

polls like that. why. >> i don't think he's capable of changing course. number one, this president is not going to declare himself officially a lame duck less than halfway through his term. i know some people are calling for him to do that, to save the midterms, i think it's not likely and sort of crazy but i also don't believe he will be the nominee of his party in 2024. as we just heard from him, take a step back, we are digging through what's in the agreement and there are i think a number of potential poison pills for virtually every republican on capitol hill embedded in there. step back and look more broadly, we are in a period of hyper inflation, people are getting crushed, families are hurting, and in the last two days the senate has voted to spend hundreds of billions in new money and agreed apparently to spend hundreds of billions more on top of that. more north combined, more than

half a trillion of new spending in the middle of this inflation and a few hours ago officially in recession, based on the traditional definition we have all been using for decades, and hours after that became formal, based on the data coming out today, the president comes to the podium, reads some words off the teleprompter to triumphantly announce tax increases as we are either in the teeth or heading into this looming recession, it's so backwards, and then he gives a few little talking points about how it's not really recession for these good reasons, no questions, good-bye and walks out. it's breathtaking. >> by the way, can i just -- i'm going to credit you fully because you just told me about this. i didn't realize in this new manchin approved plan there is apparently a tax on coal? >> tax increase on coal. >> he's from coal country. how can he agree to that? >> sandra: as we see polls like that, and speeches like the one we just saw and heard from the president, and i go back to it

is double digit percent that paying for these policy mistakes, that they are paying for inflation and it is hurting them the most. you've got democrats now trying to distance themselves from this president, very publicly. we had on the democrat from ohio, running for senate, congressman tim ryan and it was a very simple question, here is the exchange. >> i'm working on my own election, all i'm focussed on right now. a little under four months here in ohio and we are running a great campaign, up in the polls, and working really hard. so i'm just going to focus on that and then we can chat about that after i win and get in the senate. >> will you support president biden in 2024 re-election bid? >> no, they are not going to. and i also saw on the interview, you had a terrific interview, he said he was not for higher

taxes. the bill -- >> sandra: it blew larry kudlow away. >> the last thing you want to do going into recession is raise taxes. the president talks about corporations not paying their taxes, as though there are one group of rich people affected by that and that's all. unfact, hundreds of thousands, millions of people that have jobs with the corporations he's going to raise taxes on. guess what they have to do to cut expenses? fire people. >> tim ryan with the tie loose and blue collar guy, could not possibly comment on joe biden, he voted for build back better and last year he voted with joe biden 100% of the time in the house. so he can pretend oh gosh, i'm not attached to him, who knows if i would support him. when it counts he has supported him every single time in the state of ohio. >> sandra: you guys were a fantastic panel. we might have to do this again. great to have both of you here. john, continued reaction we will get to the president's remarks. >> john: i'm trying to figure

out what turned manchin, particularly if there is a tax on coal that's buried in the bill, pipeline. >> pipeline going through west virginia. i'm told that had a lot to do with it. >> john: interesting, ok. david has the skinny on that. >> sandra: he does. >> john: big reversal for manchin, people in west virginia were hurt by inflation, but jumped without seeing the numbers. >> sandra: one thing, big board up if we can, i think a lot of people are going to wonder, based on, you know, officially entering a recession, two straight quarters of economic decline, people are going to ask why the heck is the dow up 300 points? you know, if potentially the federal reserve sees the economy is doing as poorly as it is, talking about this is a significant economic decline this country is experiencing right now, if that's the case, wall street might be looking at the federal reserve and saying

well, maybe they won't have to, you know, have such aggressive rate hikes in the future if the economy is already doing this poorly because the idea of the rate hikes is to run the economy into the ground, you know, and decrease demand for products so the prices come down, maybe they won't have to act as aggressively as they just did at the next meeting. >> john: inflation seems to be independent where the economy is going right now. i don't know if there's an actual disconnect or appears there is, so you know, if you don't raise the fed rate does inflation continue to grow. any minute now, we are expect today hear from janet yellen, the treasury secretary. >> sandra: can't make it up. >> john: set to hold a news conference as the u.s. economy slides into recession. we will listen in live once it gets underway. >> sandra: and the state department offering russia a prisoner swap to bring two americans home. we will speak to whelan's

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and i was remembering the details that i was supposed to. prevagen keeps my brain working right. prevagen. healthier brain. better life. >> john: state department announcings a prisoner swap with russia is on the table, bring home britney griner and paul whelan. griner in jail since february on drug charges, and paul since 2018, and 2020 was sentenced to 16 years in prison for alleged spying. david, paul's brother, good to see you. even though you have been in touch with the state department on not a constant basis but a frequent basis, the announcement yesterday took you by surprise. what was your reaction when you heard it? >> i think it was very positive reaction. we don't always get insight into

what the u.s. government, state department, national security council is doing on paul's case and for a lot of families it can mean when you don't hear anything that you are not confident something is happening. not only great to hear an offer had been made to the russian government hopefully they will at least respond to and perhaps negotiate to a resolution, but also the extraordinary step of secretary blinken saying out loud, here is an offer and expect russia to consider it. >> john: usually it's quiet and behind the scenes. the fact he came out publicly, do you think that's because russia has been balking at the deal? by articulating, do you think they were trying to put pressure on lavrov? >> may not be as clear a sense, it may be there are different

audiences that need to hear about it. the other thing may be the u.s. government is starting to treat wrongful detentions of americans differently from how it used to treat hostages, different types of cases and different approach. >> john: how do you think the britney griner case helped propel this forward. in april there was disappointment whether there was a swap for trevor reed and paul was not included in that. do you think griner's case, a high profile individual held in detention and currently on trial might have helped propel this forward? >> i think it's helped awareness around paul's case in particular because he's also in russia, and other wrongful detention cases. but i think you can look at the offer that was made in june, must have taken months to put it together. there was the executive order from president biden about wrongful detention and punishments for people who participate in them, in late june or july, and they have been works in progress. so i don't know that they are necessarily related but good to

see the u.s. government responding so quickly. >> john: the deal on the table as we understand it, swap paul and britney for victor boot, nicknamed the merchant of death, and responsible for making attempts against the lives of american, wanting to kill americans and a myriad of other things. this would be trading a very bad guy for two very good people. your thoughts on that. >> well, i mean, it's a hard call and fortunately i'm not the president of the united states. if the president makes the difficult decision, i would absolutely support paul's release, if that's what the outcome of it. i don't really know what the state department has offered, or the u.s. government has offered, they talk about a substantial offer and may be that person. there are other items so interesting to see what it is. >> john: i know you have not spoken to your brother since october of 2018, although your

parents have on occasion. how is he doing? >> not so great. he's lost weight, they have cut back food rations at the prison so not eating well, it was never very nutritious, a hard life and i don't think it will get easier as long as russia is continuing to attack ukraine. >> john: we hope the phone call between secretary blinken and lavrov goes well and they will soon be on their way back home. thank you for joining us. approach it. >> fox news alert, janet yellen is holding a press conference, a reminder that the treasury secretary admitted she got it wrong on inflation, earlier on, saying that inflation only posed a small risk and not likely to be a big problem. she has admitted she was wrong, she's now speaking after the second straight quarter of g.d.p. contraction. let's listen. >> could pre-pandemic trend in

just two years. by comparison in the last two recessions this never happened. and during this time we also reduced the deficit by $1.5 trillion. these statistics are not abstractions, they represent american workers back at work, families with more financial security, and businesses, small and large, that have been able to hire and grow. new phase in recovery, focussed on achieving steady, stable growth without sacrificing the gains of the last 18 months. we know there are challenges ahead of us. growth is slowing globally. inflation remains unacceptably high and this administration's top priority to bring it down. we know how difficult higher prices can be for families, how

they can squeeze a household budget, and how challenging the past two years disruption caused by covid-19 have been, and that's why this administration mounted an historic vaccination campaign to get the pandemic under control and we are laser focussed on bringing down crisis. the same factors that have driven inflation to record levels international in peers like canada, united kingdom and the eurozone, those factors are hurting americans as well. these challenges also include vladimir putin's illegal and shameful war in ukraine. more than half the inflation experience in 2022 reflects rising food and energy costs. global fallout from russia's invasion. and it also reflects the

lingering impacts of the pandemic, particularly in china, where repeated lockdowns from brought their economy to a halt. the federal reserve has primary role in bringing down inflation. the president and i are committed to taking action to drive down costs and protect americans from the global pressures we face. that includes the president's historic release of 1 million barrels a day from the strategic petroleum reserve, which helped reduce the price of gas by between 17 and $0.42 per gallon according to a treasury analysis this week. americans have seen additional relief on this front and in the last few weeks, prices have declined by over $0.60 a gallon in total. our efforts also include the work we have done to develop a cap on the price --

>> sandra: so janet yellen continuing live at the treasury department. we wanted to make sure we took some words off the top, this is obviously somebody put in charge of a huge task of working with this administration to bring down these prices that are crippling american families coast to coast. she said "that inflation and fighting inflation is the administration and treasury department top priority to bring down those prices." john, you have to ask yourself, a reasonable question, why wasn't it a top priority to prevent the inflation we are all now suffering through? this was preventable. >> john: let's rewind the tape to what janet yellen said a few weeks ago, that i got it wrong, we didn't see it coming. powell, didn't see it coming. able to take a look at the economy, forecast where it's going and react accordingly did not see this coming and to bring

larry summers back into this again, you pointed out the president quoted larry summers in his address a short time ago. larry summers was the one who said the lights were blinking red on inflation and nobody paid attention to them at the time. >> sandra: and now they are quoting him today in a presidential speech. funny if it was not so awful for everybody who is living through this. 4.28 is the national average for a gallon of gasoline today. this administration seems to think that it's ok to tout this recent drop in gas prices when people are still paying historic highs for a gallon of gasoline. that's hard on truckers, that's hard on consumers, hard on everyday families, commuters. you are still looking at sky high inflation, john. and to see what they are going to do to tackle it is something, considering she just said that the president's effort to bring down gas and oil by tapping the strategic petroleum reserve is the answer is another instance where i believe you could make the case this administration is

not committed to doing this without being married to their green energy agenda. >> john: i paid 4.99 for premium gasoline the other day and i thought wow, that's a bargain and then shook my head, no, wait a minute, that's $5 a gallon, that's no bargain. >> sandra: no, no bargains, not yet at least. we did take her remarks there, we will continue to monitor the situation there in washington, meanwhile, a fox weather alert out of kentucky. governor andy beshear says three people have died from catastrophic flash flooding, but that is expected to climb. will live on the ground, obviously we see the flooding there behind you. >> yeah, this is very much an ongoing emergency situation. there is still rain in the area as recently as 45 minutes ago, so it's just not letting up as emergency workers try to rush into that area.

more than 8 to 9 inches of rain has fallen in 24 hours, waters rushing down the hills and hollows in this part of eastern kentucky, and flooding into valleys where people have their homes. i came back from lost creek in hazzard, kentucky, and a quarter mile from this, more than a dozen homes were splintered apart, nothing left of them. 1:30, 2:30 in the morning rescues, so people are unaccounted for and that's the reason why they were running up on homes that had been splintered apart and washed down streams. they are trying to get an accounting of everyone, that is complicated by the fact more than a dozen bridges have been washed out here and numerous roads as well. the national guard has been mobilized, as well as helicopters, rescue boats trying to get to these areas. but, as i speak, this is the eastern fork of the kentucky river behind me. it is rising and will continue

to rise. there is debris floating by. chairs, refrigerators, children's toys rushing out of the creeks and ditches and valleys where people call home, it's meeting here and washing downstream. heartbreaking scene here just beginning. very much in the search-and-rescue operation of this. fox weather is all over the scene. ongoing coverage today and tonight right now on your free fox weather app. >> sandra: we will all stay tuned to that. john. jonsz as we have been talking about, the economy shrinking for the second straight quarter signalling that we are in recession. but the white house refusing to admit it. grover norquist is here on that and what it means for already struggling americans. >> sandra: chicago streets plagued by gang violence and gunfire. fox spoke to some current and former gang members there, why they say they have only two options, either they die or go to jail.

>> gangs surrounding, something that was a product of my environment. didn't have a choice, really.

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>> sandra: we have the official readout from the white house of president biden's call with xi jinping, basically saying that this -- that the two presidents discussed a range of issues, very similar to the chinese readout, important to the bilateral relationship and other regional and global issues and tasked their teams to follow up on today's conversation, in particular the white house says, to address climate change and health security on taiwan, president biden underscored the u.s. policy has not changed and the united states strongly opposes unilateral efforts to change the status quo or undermine peace and stability across the taiwan strait.

interesting to see the comparison after having the chinese readout first, a bit more fiery as you were reporting earlier with the governor of south dakota, john. >> john: yes, no mention of playing with fire will set yourself on fire in the white house readout. we will watch more of this, more coming up. meantime, a fox news exclusive. looking beyond the numbers on rising gang violence across chicago. some gang members telling us they commit crimes because they do not fear any consequences. adding that guns of life when you are growing up in chicago. mike tobin is live in the windy city with more. troubling findings, mike. >> mike: yeah, and john, 1500 shootings, more than that so far this year in chicago, almost 2,000 people shot, 366 people have been killed. and 34 of those murder victims are children, almost all of it is gang-related. and gangsters say they live this

way because they don't have any other opportunities. even the gangsters say a major contributor to the bloodshed in chicago is the gang structure itself has fallen apart. these active gang members agree to be interviewed with the condition that we don't give up their names or affiliation. >> there's no one who people look up to. everyone takes order for themselves. you want to kill that man, they are going to go kill that man. >> with the founders and leaders locked up or dead, the big gangs from the 1980s and 1990s, disciples, black disciples, four corner hustlers and advice lords, went to conservative advice lord, on and on. broke down from there, to where they are just clicks, friends with guns ready to shoot over any petty offense. >> what does it take for somebody to get shot? >> stepping on somebody's shoe in chicago. people get shot over dumb reasons, shot over someone

sneaking with another person's girl. >> getting a gun is the easy part. >> i have legal one. >> do you have illegal guns? >> yes. >> which was easier to get? >> illegal. >> they say chicago cops do what they can with limited resources but gangsters are not afraid of the police, they are afraid of the other guy with the gun. >> what happens to guys in your line of work when they grow o old? >> die or go to jail. >> as far as the spike we have seen with carjackings, the gangsters say the kids start with video games and then try to take the real life here on the streets. john. >> john: a lot comes back to video games, no question about that. mike tobin with the findings of our reporting there. mike, it's an eye opener for a lot of people, i think. thanks so much. >> sandra: the u.s. is in recession officially now and small businesses are struggling to hang on in this environment. hiring remains the top challenge

we are hearing for many across the nation, including our next guest. his restaurant having to close every monday and tuesday due to the lack of employees. let's bring -- wish it was under better circumstances for you and your small business. why is your story one that is all too familiar across the country today? why is it so difficult for you to find workers? >> you know, i don't know. first, thanks for having me on, appreciate it. and i appreciate the opportunity to tell our story. but this is the story that is really nationwide. it's a problem with the whole hospitality industry in general and we are wondering where our workers went. the workers we do find, they apply, they might come in for interview but don't show up for work. the employees that we do have and thankfully for myself, we have a lot of long-term great loyal employees, we are having

to pay them more than we had to pay them before. >> and that's additional struggle for you, who obviously restaurants are dealing with sky high inflation when it comes to food prices. do you think you can hang on in this environment? >> it becomes more and more difficult every day, you know. we made it through the pandemic and that was difficult enough. this should be the time our industry is recovering and able to grow. we lost tens of thousands of restaurants across the country with increasing costs, not only just on labor, but as mentioned on all the products that we need to do, just to do business and to serve our customers is getting higher and higher, so we are having to accept less and less, you know, we are lucky to break even on any given day, any given week, and that just can't keep continuing. it's not a recipe for success for the long-term. there are certainly many, many restaurants across the country

that are having the same problems that we are, and it's harder and harder every day to open those doors. >> sandra: the name of the restaurant the packing house, according to local news reports, a stone's throw away from milwaukee mitchell airport, you used to be open 365 days, a popular spot and i can imagine how frustrating considering you are just starting to see some of the customers return that were hesitant to go inside restaurants during the covid pandemic. they are coming back now, but you are struggling to get staff to serve them. >> yeah that, is the problem and that is the frustration with it because you know, for such a long time, for two years we struggled to get people into the restaurant or even to take a meal to go. now that demand is starting to return, even with the increase in prices and increase in menu prices, but there are some nights, you know, again like you mentioned, we are closed mondays and tuesday it is, hours are shortened on days we are open because we don't have the staff. the staff that we do have on,

they are really working hard, many are working overtime just to be able to open five days a week that we are, but there are some nights we can't even seat the entire dining room so we have the demand but don't have the staff in order to take care of them. >> sandra: i think that's what a lot of people at home feel when they go back into a restaurant after avoiding them for a long time. they are ready to get back out there, so they sit down, the restaurant is not able to accommodate them, all feeling it in some way. restaurant losses during the pembina from february 2020 to may 2022, a loss of 500,000 restaurant jobs, i mean that, is what you are dealing with today and trying to lure those workers back. chris, i bet you probably sit back on some evenings when you are able to take a quick break and you must think like what's really going on here? to what do you attribute in your own mind for this struggle?

it sort of seems unprecedented as far as what you are dealing with in the restaurant industry today. >> well, it truly is unprecedented. we have never ever seen this. we have been in business, my parents opened this restaurant back in 1974. we have been in business nearly 50 years, and we have never seen it. we have seen the good economies, seen the bad, but something like this has just never happened and when i talk to my fellow operators, not just here in milwaukee and wisconsin but nationwide, we have the same concern. just like where did all our workers go? we don't know, and you know, some think well, it was all the money handed out, right, kind of incentivize people to not come back to work, but we just don't know. it just does not seem to make sense. and with the increased costs and labor for the employees we do get in, it's really become, you know, it's horrible, it's bad. >> sandra: and chris, you are a good midwesterner by the way and so am i, i appreciate you coming

on and talking about your story and i know everybody listening to you are cheering for you and hope for the best. hope you can hang in there. >> thanks so much, sandra. appreciate the time. >> sandra: we'll check back. >> john: new at 2:00, the u.s. in the grips of recession. but president biden and the white house still deny it. grover norquist breaks down what the shrinking economy means for you. plus, katie pavlich on woke comments from the cybersecurity czar, michael waltz, and some surprising new echo friendly trends. that's next hour as "america reports" rolls on. stay with us. ime in history to turn your home equity into cash. because home values have climbed to all time highs. and so has your equity. turn it into cash now. the newday 100 va cash out loan lets you borrow up to 100% of your home's value. you could take out more than $60,000. pandemic. e debt.

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>> sandra: play with fire and you are bound to get burned. that blunt message from china to president biden warning the communist country will retaliate if speaker nancy pelosi goes through with her trip to taiwan.

>> that is a threat direct from china and they obviously perceive us as very weak and do not take this president or administration seriously. >> john: the most direct threat yet over the controversial trip which beijing has said is a red line the u.s. cannot cross. so exactly how far would the communist country go if the united states refuses to bend to its will? >> sandra: that is the question. and just as importantly, what are the consequences now and far into the future if nancy pelosi or the biden administration buckle under the red threat. hour two on this thursday afternoon, sandra smith in new york. hi, john. >> john: john roberts in washington. the china threat does not stop there. parents worried about schools turning far left might want to also focus on the far easteast. the troubling new report on how communist china is pushing propaganda at american schools. we'll talk with congressman michael waltz who calls this a matter of national security.

>> sandra: maybe someone needs to inform president biden's people, a different risk to national security. that threat to our nation, systemic racism. you can bet katie pavlich is fired up on that. and also on deck, grover norquist, and more at 2:00, all kicking off with the kick to your wallet. >> we have a record job market of record unemployment of 3.6% today. we created 9 million new jobs. that doesn't sound like recession to me. thank you very much. >> i see inflation as our biggest issue. >> it's simply inconsist with a recessionary call. >> what happens prior before recession in u.s. history you see jobs lost and that's not what we are seeing right now. >> it's not what we are seeing

right now when you look at the economy. >> president biden and his team flat out denying that we are in a recession, that despite our economy shrinking for a second straight quarter. the very definition historical in the country of recession. >> today's report not even close to what economist expected would happen, and as the president tries to pump up the economy, republicans say he's completely out of touch. >> he continues to deny reality when the american public very clearly agrees that we can't continue down the path we are on. >> sandra: grover norquist is here to help us clear the air when it comes to your money. >> john: but first peter doocy is live at the white house. what does the white house think the impact of today's g.d.p. report is going to be on everyday americans? >> talking about it like it's nothing. the president and the remarks he just gave never mentioned the economy contracting a second quarter in a row, instead brought his own stats. >> and this is probably the

strongest rebound in american manufacturing in over three decades. creating 613,000, 613,000 manufacturing jobs. that doesn't sound like a recession to me. >> inflation, the president does admit is an issue, and now endorsing a new tax and spend bill by senate democrats he thinks would lower prices by raising taxes. >> it's a big deal. also for the first time in a long time begin to restore fairness to the tax code, by making the largest corporate -- large corporations in america pay their fair share without any new taxes on people making under $400,000 a year. >> biden critics on capitol hill are not satisfied with the spin from the white house arguing the president is misrepresenting new

jobs data. >> he says yes, but unemployment is low, unemployment is low. well, there's a reason for that. people are not working. you don't look at the unemployment number, you look at the labor force participation rate. and we have had a lot of people retire and we had a lot of people who refused to go back to work. >> president biden did not entertain any questions at his event this morning but has another one in the next 30 minutes or so some c.e.o.s already beaming into. we hope to get further insight into his thinking about recession or not then, john. >> we'll be watching that, peter. thank you. >> sandra: grover norquist, president of americans for tax reform, you look like you are about to jump out of your seat there when we showed you in the tease grover, what do you have to say? >> this is sad and contemptuous of the american people. they are going to buy gasoline every day and for a year he told

us there was not inflation. now he's admitting to inflation to not deal with the recession. you are covering up one problem he created with another. you can as jimmy carter taught us have both and biden has accomplished that. low growth, negative growth for six months while inflating the currency at 9%. used to think you couldn't do that. this bill he put together, i don't know why manchin put his fingerprints on it, said when he was running for office, you never raise taxes during recession, he just agreed to a $300 billion tax increase on new investment. when they talk about a minimum tax, they mean companies that invest all of their earnings in building the company, hiring more people, paying people more, building factories and no income because they put it into the company, those are the people the president are suggesting are cheating and he wants to tax investing growing companies.

that is a pain out to workers, 70% of the corporate income tax is paid by workers in lower wages and fewer people working. the rest is raising the cost for everybody else. >> sandra: you could make -- you can make the case he's out of touch with the country, you can make the case he's out of touch with members of his own party who are looking at how bad this is. tim ryan from ohio joined us yesterday, he would not answer the question when i asked if he would support the president in his re-election bid but even went on to call for tax cuts in this country to deal with this. this is yesterday, listen. >> people are getting hammered, we need a tax cut for working people, whether it's the earned income tax cut, a general tax cut for working people and small businesses, it's like -- stuff is bad, it's real bad for people and so ignoring that or trying to somehow sugar coat it, i think does a disservice to the people who are out there struggling every single day.

>> so there is a democrat calling for tax cuts, the president gave a speech, calling for more spending and tax hikes, on a day an official recession is cleared but taken aback by the sound bite from tim ryan, he's saying how bad it is and so many people feeling how bad it is in this country, they are looking for that from this administration. for the president to step up to the microphone and not offer a full denial how bad it is and rework the definition of recession, but to say he sympathizes and knows it's a difficult time for people in this country. >> it's a challenge for biden to do this, he caused both of these problems. his spending created the inflation. his regulatory tax, a tax, his threatening tax increases all the time. his effort to have a minimum tax across the world so that the united states cannot compete by having the lowest taxes, we have to compete by having the lowest

wages. thank you very much, mr. president, for nothing. >> sandra: let me get this in here. again, at odds with the country and the way they are feeling, at odds with members of his own party, 75% of which in a most recent poll say they would not support biden a re-election bid and at odds with economists like democratic from the obama era, said message is clear from the negative, unfavorable myth on u.s. economies. slowing at a significant rate. add to 8.7% price change in today's data, deepening stagflation and recession risk. here is the press secretary for the president butted together with sound of brian deese, the man who advises the president on the economy, and these were two ways they reacted to that g.d.p. this morning. >> now what we are seeing is a

transition into stable and steady growth. >> we are certainly in transition and we are seeing slowing as we all would have expected. >> sandra: so grover, it's not a recession, it's a transition. your reaction. >> so is inflation. remember, inflation was a transition to higher priced energy which will be green, it will be less effective, won't be on all day, but it will be green. this spending spree they've got is a collection of earmarks and paint it green, nothing new. just old things less effective and don't create energy all day, or when the sun is not there, or when it does not blow the wind. >> sandra: janet yellen was speaking a moment ago on the economy, offered nothing new and no new solutions how they will tackle this, but somehow she said our inflation rate is lower or similar to other -- i just had my brain room pull it,

printed and put it front of me, u.s. is higher than u.k., canada, italy, germany, france, japan, our inflation rate is above many other parts of the world and that's what we are dealing with. quick on that, i've got to go. >> it's sad, unfortunate, the president needs to start telling the truth. >> sandra: grover, appreciate you joining us. thank you very much. there you go, john. pulled the numbers. with inflation where it is today, we are still higher than many other parts of the world. >> john: there are some countries little worse off than us, but the idea that we are jacking up interest rates to try to bring inflation down and it runs away from us, i think is cause for concern for a lot of people and do we have the right people who are pulling the levers here. don't forget, the people that missed it in the first place. >> sandra: point taken. >> john: fox news alert, the

border crisis no longer just a problem for the southwest states. even liberal cities waking up to people flooding their cities, at rates local governments say they have not keep up with. the d.c. mayor is now pleading for help. what's bowser asking for? >> just a moment ago she told reporters in this press conference that she believed migrants coming on these busses into the district is now a humanitarian crisis and she is prevailing on the federal government for help, she's going to call in the national guard and says the responsibility as such is really, excuse me, the responsibility here is for fema, for the u.s. military and even president biden himself to now get involved. take a listen. >> we need the federal government to be involved. so i've asked for the deployment of the guard as long as we need the guard to deal with the humanitarian crisis that we expect to escalate. the number of people crossing

the border seeking asylum we expect to only go up. >> a moment ago the pentagon confirmed they have received bowser's national guard request. they are reviewing it. d.o.d. the agency that has statutory authority to activate the guard, bowser is not pulling any punches assigning blame for the arrival of undocumented migrants here in washington. >> well, it's obviously politically motivated, and the reason why we are different in this is that people aren't coming to d.c. as their final destination. what we see is that they are moving on to their final destination through d.c. >> this comes as the department of homeland security reports over half a million people are known to have crossed the southern border into the u.s. illegally without being detained by border patrol. this in the past fiscal year, since it began on october 1st. the number has far eclipsed last

year's number, 390,000 so-called get-aways, what secretary mayorkas testified to in 2021, this just in right now, a statement from governor greg abbott's office, he says washington, d.c. finally understands what texas has been dealing with every single day as our communities are overrun and overwhelmed by the thousands of illegal immigrants, thanks to president biden's open border policies, he goes on to say if the mayor wants a solution she should call on president biden to take immediate action. something he has failed to do. so a lot of blame going around here. >> john: i saw new york's mayor eric adams complaining about much the same thing as bowser and blaming it on callous border governors. greg abbott is not sending people to new york city, some bus loads of volunteers from texas did come to washington, d.c. doug ducey is not sending them to new york city, it's the government doing that.

>> he said it's politically motivated, inferring the opposite, sending people they are to make a message. >> john: every state is now a border state. >> sandra: hi to gillian as well. f.b.i. as well, the chief warns that china's hacking program is bigger than every other major country combined, and is our largest threat. the white house's new deputy cyber director says we need to focus on systemic racism. >> john: katie pavlich has some thoughts on the white house's priorities. the new threat from china's president. the most blunt warning to president biden so far.

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>> sandra: flooding swamping parts of kentucky, blamed for at least lee deaths now. high water rising to home's rooftops, trapping, even drowning people inside. a line of slow moving thunderstorms dumped rain over the eastern part of the state requiring water rescues. also sweeping away cars and even some homes as rivers and creeks overflowed. the kentucky governor has declared a state of emergency and activated the national guard. we are following it for you. >> john: terrible situation there. president biden's new cyber defense deputy says systemic racism is one of the biggest threats to national security. but opponents say it should be on foreign adversaries like china, russia and iran. camille stewart is saying systemic racism is the primary

threat to our cybersecurity, would seem to ignore some real threats that come in the form of russia, iran, north korea, china. >> where the united states are in terms of cybersecurity are sobering. look at the experts in san francisco, people from yale, harvard, silicon valley, they say five years ago we were more secure in terms of cyber than today. recently in june the iranian-backed government did a cyber attack on boston children's hospital. last year, colonial pipeline shut down for a week, causing mass chaos up and down the east coast. that happened as a result of russian cyber hackers, which of course are backed by vladimir putin's government. this idea that we are going to spend any amount of oxygen and time on the issue of systemic racism within the national security realm of cybersecurity is absolutely ridiculous. and not only does it set up the country for attacks because you

are not focussed on combatting serious aggression from china and iran and russia and other bad actors, private and state-backed, you are setting up a situation that's chilling to recruitment. as we have seen with the military, the defense department, witch hunt for white supremacy and extremism with the ideology, includes anybody who disagrees with left wing ideology, so the military has missed recruitment numbers when it comes to people signing up to join the military to defend the country. the same thing will happen in the cybersecurity space at a time when they need to be completely focussed on this threat and they are very far behind, especially as technology advances and everything becomes increasingly digital. >> john: the point she made at a 2020 column she wrote, said technical and policy mitigation cybersecurity challenges will never reach their full potential until systemic racism is addressed and diverse voices are

reflekted among our ranks at all levels, saying there's not enough diversity in the cybersecurity realm and that is a threat to our national security. >> ok, give her that point. where do we get people to work for the government or for companies, we get it from the education system. in the woke education system around the country, we are seeing advanced placement classes taken away. seeing a nonfocus on math, actually told a student who makes into advanced class for math or science that it's unfair to minority students and therefore we have to eliminate any kind of opportunity for academic success, so serious of having diversity, a good thing based on experience and focussing on the threat, not on just fulfilling quotas for the sake of some woke agenda, she would look at the education system and say ok, this idea we are saying math is racist and

students performing in these gifted programs and classifying that as racist, that's where she should begin, getting students in disadvantaged and diverse communities into these programs where they can succeed in the realm in this country, whether it's the private sector or the united states government. >> john: this is an issue that is obviously taking up a lot of her time, in her writings and on social media she is criticized the united states as being intrinsically racist society. >> which is absurd. she's working for an administration now giving her the opportunity in america, especially in the sciences, you can succeed as long as you do the work, i did not become an engineer because i was not so good at the math. this is country that afforded anybody they want opportunities throughout the government or the private sector and you cannot do that if you judge people by their skin color and say based on that rather than performance and the issues getting people

into those jobs in the first place. >> john: always good to get your thoughts. >> sandra: nothing subtle about china's threat to president biden warning that if the u.s. plays with fire, it's sure to get burned. we'll have that update for you next. >> john: plus the chinese communist party back to influence peddling on college campuses. astepro is the first and only 24-hour steroid free spray. while other allergy sprays take hours astepro starts working in 30 minutes. so you can... astepro and go. i'd like to take a moment to address my fellow veterans because i know so

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>> great to hear an offer had been made to the russian government to respond to and negotiate to the resolution, but also the extraordinary step secretary blinken saying out loud. >> john: david whelan is optimistic a deal can be reached to bring his brother paul home after antony blinken revealed the u.s. made an offer to swap

him and britney griner for a russian who is in custody here in the united states. news comes as wnba testified in russian court and claimed she was ordered to sign documents without guidance on what they were or what they meant. and testified a translator only explained a fraction of what russian officials were saying to her. she was arrested in february for carrying cannabis oil when she entered the country. sandra. >> sandra: thank you. so, if you play with fire you will get burned, what china says the leader warned president biden during the high stakes phone call earlier today. the call, of course, coming as beijing has been threatening military action over house speaker nancy pelosi's planned visit to taiwan. congressman michael waltz says the president should not let china dictate a single thing.

jacqui heinrich is live at the white house. no mention of speaker pelosi or tariffs in the readouts. >> not a lot of readouts, waiting more information out of the white house briefing but it was the longest call between the two leaders since biden took office, two hours and 17 minutes. we just got a photo from the white house showing it backdrop of speaker pelosi's planned visit to taiwan, u.s. military has made ready overlapping rings of protection on the air and the ground if pelosi chooses to go. china says if she challenges china's red line on taiwan, it would be met with resolute counter measures. neither readout mentions pelosi, but those who play with fire will perish by it, it is hoped the u.s. would be clear eyed

about this, goes on to say biden reiterated the one china policy has not changed and will not change and the u.s. does not support taiwan independence. and note the white house readout of the call does not explicitly state that, it says united states policy has not changed and the united states opposes unilateral efforts to undermine the status quo and peace and stability on the taiwan strait. and it's unclear who might attend. john kirby downplayed any impact that pelosi's plans may have on the discussion saying the talk had been planned for weeks and include other topics, like the war in ukraine and trade practices. on trade, into news on potential tariff reduction as a result of this call. as of this morning, kirby told me the president had not made a decision on whether or not to lift trump-era tariffs on chinese-made goods, despite this

weeks' long divide internally in the white house, but whether it might ease inflation or whether it could have a negative impact on union workers, sandra. >> sandra: and we are watching for the live event to begin at the white house, the president meeting with business leaders on the economy. we will go to it with news that comes from that. jacqui, thank you. >> john: republican congressman michael waltz from florida, served as a green beret commander and on the house armed services committee. the phone call between president biden and president xi jinping, readouts from the white house and the chinese. the chinese readout differs a little bit in translation, depending who did the translation. basically xi jinping said we firmly oppose taiwan independence separatism and is interference by external forces and will never leave any forces in any form. playing with fire will set yourself on fire.

hope the u.s. side can see this clearly. very tough talk. how should president biden responded to that? >> yeah, look, so i think there's a couple of points here. number one, speaker pelosi has to go. to not do so sends a terrible message, both to the chinese, to the taiwanese, and to the entire region, all of our allies, if we are not willing to have an elected leader visit because of a stern warning from the chinese communist party, what does that say for our willingness to actually defend democracy in taiwan and number two, i think we need to seriously rethink the one china policy, which has been rooted in strategic ambiguity, leave it up in the air whether we will defend taiwan or not. with chairman xi telling his country to prepare for war, saying he is going to take taiwan one way or another, even

militarily, we have to move to a deterrent posture. when do we stop feeling about xi and putin's feelings and worry about ours and put deterrents in place. >> we have the ronald reagan carrier group headed to the south china sea, flexing our muscles there. i want to switch to another topic that you are very concerned about, and that's china's continued influence in higher education institution. used to be things called confucius institutes, most have been shut down. but they have been replaced with other programs funded by china. the f.b.i. director has warned it's an exercise in soft power. your perspective on this, they are pretty much outright propaganda. >> no, that's absolutely right. confucius institutes have got to go. whatever you want to call the

replacement has got to go. not only do they provide a platform for soft power, they provide a platform for industrial espionage into the research center, the universities, into some of the most sensitive seeks like robotic, advanced materials, artificial intelligence, and provide a platform to keep the 400,000 chinese students in line studying throughout the united states, and great kids, i want to be clear. i'm sure they have the best of intentions. what people need to realize, if the chinese communist party taps them on the shoulder and says you are going to take some of this sensitive technology out of our research institutions, they have no choice. they have to do it and these institutes are a platform and pathway for the c.c.p. to exert control on our campuses. finally, you also have the thousand talents program, recruits our university professors, many of whom are receiving grants from nasa, the

defense department and others, to then go teach and i say that loosely in chinese universities and transfer that technology. c.c.p. calls them nontraditional collectors. that also has to go. and finally, you have billions from the c.c.p. flowing into the university endowment systems. so, this is a multi-layered threat into our education institutions and when we take power in november on the republican side in the house, we are going to cut it out, it's got to stop. >> john: and you and seven republican colleagues sent a letter to secretary of defense, lloyd austin, wondering how much funding the d.o.d. is putting into some universities that have the programs. that's a big concern for you. ask you just lastly here, this suggested prisoner swap, griner and paul whelan for victor boot. what mike pompeo said about that, former secretary of state. >> to offer a trade like this is a dangerous precedent. without doing this thing, would ut offering up these dangerous

people in prisoner swaps. he was a bad guy, threatening the united states of america. neither paul whelan nor britney griner were engaged in that. >> john: victor, a very, very bad guy. is this the sort of trade we should be making? >> my heart breaks for the families. of course we want americans home but this is too high of a price. this man is responsible for deaths all over the world and there are other ways to do this, to get our americans home. >> john: congressman michael waltz, great to catch up with you. thank you. >> sandra: fox news alert, you are going to see president biden again after speaking earlier today following the second drop in g.d.p. resulting in recession in this country. him still not saying it is one. he's now meeting with business leaders, including c.e.o.s of major american banks, including bank of america. also deloitte, his economic

team, brian deese is in the room, secretary janet yellen, u.s. department of commerce, this is a meeting on a very important day for this country that president, i believe is going to take some questions, he's remarking now, we are going to dip in and listen for a bit here. >> another thing congress should do, pass the inflation reduction act to lower prescription drug costs, which would reduce the deficit, i might add, and help these inflationary pressures and ensure that 13 million americans can continue to save an average of $800 a year in health care premiums. both of these bills are going to help the economy continue to grow, bring down inflation and make sure we are not giving up on all the significant progress we made in the last year. i'm going to stop there and begin the meeting. thanks to the c.e.o.s for joining me, and let me start with you, brian, and thanks for

taking all my phone calls, pal, the bank of america, i want to ask you a question. your bank serves many americans across the country. what do you see right now in terms of financial health of your consumers? what's the bank records tell you about the financial health? >> thank you, mr. president. good to see you recovering. at bank of america, 60 million consumers and 30 million checking accounts for americans, a couple key points. number one, they are spending more money. 10% more than in july of 2021. >> sandra: the president getting an update from the business leaders there, brian moynihan from bank of america is speaking. president said he has brought them to the table, not physically, but coming in via zoom, to ask them about the state of the consumer. as you can here brian giving a response there, john, talking

about the consumer spending more, this has been the environment but they are spending more on things they need. this is the report that we are getting from the likes of other companies, including walmart, where they are cutting back on the things that they want, which is a sign of economic change in this country, and they are sticking to what they need, and more and more of -- more and more percentage of the american income in this country, especially the lower and middle class, is now going towards paying for inflation. and you heard the president off the top in his remarks, on a day we can declare recession, the president is pushing for more spending and most polls show the american consumer attributes this inflation problem to government spending. so it's quite remarkable. >> john: even what was the san francisco fed said 3% of inflation a few months ago was due to all the spending. and it's clear that consumers are spending more. they are spending more for less, so -- what does that tell you in terms of the overall calculation

of where the economy is headed in the months to come. this morning the discussion was that ok, we have had two successive quarters of contraction in the economy but things are going to get worse toward the end of the year as all of this piles up, the -- the price of things, inflation, increased interest rates, people's dollars are not going as far as they used to, and that's going to come home to roost probably october, november. >> sandra: and people are going to continue to spend more on gasoline, on groceries, and now you've got this down turn in the housing market that is a red flag for a lot of these economists who were hold-outs on declaring recession, saying this is another sign things are getting worse in this country and as we see the interest rates go up to tackle inflation, it's going to make housing more and more expensive. >> john: i keep getting notifications from zillow, i still have not gotten of o the notifications from 2017 when i was looking for a home, but ge continuing to see on the

notifications price drop, price drop when it comes to houses, and a result because of the housing market slack and interest rates. attorney general merrick garland facing pressure. head to the justice department for that. >> sandra: and many democrats stayed silent when it came to protests outside the homes of conservative justices but have no problem taking your money to keep themselves safe.

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>> john: house lawmakers will have a chance to boost their home security systems all on taxpayers' dimes. rich edson is here. >> 10,000 bucks and then monitoring. program defenders say threats against congress are up, the same congress that had to approve protection for supreme court justices because of threats to them. democrats in the house are also trying to pass a comprehensive safety bill, effort to deliver moderates more police funding and progressive gun control

measures. that is held up now. differences between the factions have scrapped a vote in the house. democratic leaders say they'll try again next month. the bill features an assault weapons ban, grants for local police headquarters. >> what i hear from the vast majority of the people i represent and certainly the vast majority of my colleagues is we need to make investment in ensuring our police departments can be all that they want to be. >> but the chairman of the progressive caucus told "washington times" additional police funding needs more guardrails and we need to make sure there are strong accountability provisions and we are actually ensuring public safety for everyone. going into the midterms, crime and public safety are major themes for republicans trying to take control of the house. >> when will democrats get the message that people want safe communities? they don't want defunding of the

police yet democrats in washington still want to go after cops. >> house majority leader told reporters that they will vote on the bill as soon as he thinks they have reached a compromise that will pass. >> john: so members of congress who had to be dragged into the house to vote on new security for supreme court justices now get ten grand and then how much a month? >> 150 bucks. >> 150 a month. >> $10,000 will buy you quite a security system. >> not a bad system at all. >> there you go, all right. thank you, rich. sandra. >> sandra: thank you very much. attorney general merrick garland is under pressure from both political parties as they conduct a high profile investigation of hunter biden, and another d.o.j. probe is reportedly focussing on former president trump. david spunt is live from the justice department. attorney general seems to be talking more about a potential

investigation into the former president trump? >> seems that way, doesn't it, sandra. doing more interviews lately, talking about this when asked and longer answers on this. listen, just two years ago merrick garland was a federal judge who quietly went to work, stayed out of the spotlight, did not have to answer questions from the media or reporters. how things have changed in the last two years. every day when merrick garland wakes up and comes into this building where i am, he is in a virtual pressure cooker right now, taking incoming from both sides of the aisle. democrats want him to give the order to criminally indict former president trump, republicans warrant garland to indict president biden's son hunter. first to the former president, "washington post" reporting he is under criminal investigation for a fake elector scheme following the 2020 election. >> the indictment of a former president, candidate for president would arguably tear the country apart. is that your concern as you make

your decision down the road here, do you have to think about things like that? >> look, we pursue justice without fear or favor. we intend to hold everyone, anyone who was criminally responsible for the events surrounding january 6th, any attempt to interfere from the lawful transfer of power from one administration to another accountable, that's what we do. >> hunter biden has been under investigation until at least 2018, a grand jury tasked with looking at potential evidence wrapped up the latest term this month, now in the hands of d.o.j. the son and the former president have not been charged with a crime. >> john: sandra, the political fight spilling on to the ball field in tonight's annual congressional baseball game. lawmakers set to square off at

nationals park hours from now. congressional correspondent chad pergram and died in the wool baseball fan has the prime view above nats park. it will have to be a big home run to make it up to you. >> they have to jack one here, don't they. first baseman glove, my dad had this glove. they are expecting about 20,000 people at the game tonight. democrats have won eight of the last ten ball games, but there is concern about climate protestors interrupting the game. listen. >> that's stupid to begin with, baseball, it's non-partisan. it's a baseball game, raising money for charity for crying out loud. i don't worry about it. it's a safe place. what i'm worried about is throwing strikes and winning the game. >> democrats are expecting peaceful protests here. a democrat from california, the starting pitcher. >> we wouldn't have practiced

this much if we would have thought the game is shut down. we are out there at 7:00 a.m. >> mike doyle is the democratic manager, he's a representative from western pennsylvania. he is retiring at the end of this congress, but he used to play, and a few years ago he was the game's m.v.p. >> i made a pete rose slide into home plate that i didn't really execute the way pete rose did it, and buffed up my nose, and you know, the chalk from the batter's box was like all over my face except for the red blood squirting out of my nose. >> now that attested just how seriously they take this game, get up at 4:30, 5:00 in the game to go practice, they will play tonight at 7:00 eastern time and sometimes this game runs head long into congressional business, in fact champ clark, speaker of the house in 1914, he had to send the sergeant of arms to get members of congress back

to the chambers to have a quorum to do business. >> so is the congressman going to try to repeat with his outside the park homer from last year? >> that's right, he hit one over the wall here, he said god willing, that was the quote. i don't know if he will get one this far, but i'm ready, john. >> john: you are ready with your historic glove. would not expect anything less. chad, thanks. sandra. >> sandra: i love it. >> sydney sweeney, emmy nominated actress, is opening up about her finances. 24 years old, and she says she can't take any time off from her job or else she could barely be able to get by. bring in fox nation hosts and you probably see them on gutfeld almost every night. euphoria, like a hit hbo show, she is a very famous star, making lots and lots of money

and apparently a $3 million mansion in los angeles, views of a golf course, 24 years old, obviously not break but says she can barely get by on what she is making as a hit actress. >> can't afford to take six months off. do you know anybody who does that? like i don't know anybody. >> not even if you have a baby. >> six months off and has a $3 million home but as she explained, she can't afford to put a gate around it, so that's tough. i would have actually appreciated it if she would have said, she goes back and talks about how the family struggled when she was first starting and now if she said i struggled and nou the government is taking half of it. >> sandra: her publicist. her lawyer, business manager, and publicist every month, more than my mortgage. >> yeah, you know, i have -- i'm not charles payne but i do have some financial advice. first thing you do, you fire the publicist. for no other reason than they

let you do this story. that's fireable offense. fire the manager, agent, everybody. because this is a first world problem. you have a $3 million home. nobody cares about your gate problems or i can't take six months off. said no one. >> no one takes six months off. >> john: unless you go to prison. >> sandra: she says they don't pay actors like they used to. a new ecofriendly trend, edible cups, spoons and straws. ok. so now we have moved off of paper, now you can eat the utensils. >> we'll eat -- what are they made of, fruit, corn fructose syrup? more, just more weight to gain, so -- counting calories but the cup is an extra 300, the spoon laced with sugar, bad idea. >> sandra: delicious, healthy and ecofriendly. >> i want plastic straws. i don't -- i'm not a diva, i don't ask for a lot, but i want a straw to be made of plastic to

enjoy my beverage. paper straws don't work and i'm not drinking a drink because i want to eat. >> can you imagine, kids, who ate the fork? no soup, johnny ate the spoon, bad idea. >> sandra: edible straw is not a bad idea, a milkshake, candy straw at the end. >> seltzer water. >> sandra: wish i had more time with you. see you tonight. i'm sandra smith. >> john: john roberts. i only had paper straws when i was a kid. "the story" starts right now. >> thanks. good afternoon. i'm trace gallagher in for martha. the white house hitting the airwaves to ensure voters that we're not in a recession despite the economy shrinking for the second quarter in a row. >> there's a lot of chatter today on wall street and among