fall of rome to compare to get us out of the mess that we are in right now. particularly with the economy. >> there was no one fall of rome. i don't think there was one fall of america, our best days are still ahead of us. >> amen, congratulations on the book. drops on tuesday. "america reports" now. >> john: harris, thank you. dow plunging this hour on the heels are a worse than expected inflation report. up over 8% as food and housing costs soar. >> sandra: great to be with you, sandra smith in new york. this is "america reports." stocks are falling sharply as investors react to the state of the u.s. economy. reminder that inflation could be here to stay for the long run. the dow off 900 points just a short time ago.

it's backed off a bit, but if you look at the tech heavy nasdaq, it is off 4% and plunging. >> john: debbie dingle standing by with her thoughts on how this could affect her party's midterm chances. but first, to jacqui heinrich live on the north lawn this hour and rather ironic the president has a celebration of the economy this afternoon. how are they reacting to the cpi report? >> either the white house expected numbers a whole lot better than this or someone in the scheduling office had an unfortunate oversight and getting an earful. it is ironic they are hosting a bunch of democratic lawmakers here today to mark the signing, last month's signing of the inflation reduction act just as those new numbers come out showing inflation, core inflation shot up last month 6.3% in august, up from 5.9% in july. and that is a key metric that the fed watches very closely and these numbers are more than the

6.1% that economists predicted, the next set of rate hikes will likely be quite aggressive. the white house is completely ignoring that part of the report, instead they are clinging to headline inflation, the president saying today's data shows more progress in bringing a global inflation down in the u.s. economy, overall surprises have been flat, welcome news for american families with more work to do. president obama's former economic adviser sees trouble ahead, jason furman saying a lot of things to bring down inflation have happened. to the degree energy prices have passed to core, we should be seeing the reverse. i am skeptical of magnitude, labor force returning, and the white house has to stop the spending. tom cotton says biden should

transfer the plan to cancel the loan debt to taxpayers, but the president is defending the spending as recently as yesterday. >> and by the way, when you hear your republican friends or anybody else tell you boy, they are spending a lot of money, guess what, we cut the deficit this year by over $1 trillion this year. >> the committee for responsible federal budget calls that a moot point because the student loan debt cancellation wipes out more than double the amount of deficit savings from the inflation reduction act that they are celebrating here today. john. >> john: nobody wants to talk about that either, all right. jacqui heinrich, thanks. sandra. >> sandra: bring back in democratic congresswoman debbie dingle, we are going to get back to the white house, a briefing soon where likely, welcome to you, by the way, congresswoman, likely will see the white house pressed on what's the celebration, 8.3% inflation

today, 1.4% when president biden took office. and this is an opportunity for republicans to remind voters just how wrong this white house has been. first it was inflation is transitory, then last month president biden saying 0 inflation, this is real pain inflicted on the american people. what's there to celebrate? >> you are asking me that question, sandra? >> sandra: yep. >> good to see you. first of all, i want to say it's not just members of congress that are going to the white house today but people from all over the country. because the inflation reduction act is taking a number of actions, over the long-term will reduce prices starting with healthcare costs, capping insulin at $35 per month and capping what seniors and medicare recipients will pay $2,000 a year. and the next couple of years, and i could go through a number of that. look, i've just -- i've been home for five weeks, talked to people every day.

i know inflation is real to them, but gas prices are continuing to go down, they have almost every day for the last couple of months. you have to analyze the figures that came out today, the last two months we have not seen inflation go up, this is a comparison, and year to year. i take this very seriously but i'm also going to tell you that we have reduced the deficit and the same -- the bills that we have passed this summer are going to -- they are going to increase taxes on corporations n that are not paying their fair share and on billionaires and will add income into the revenue and focus on reducing the deficit, reducing the cost of inflation, and helping everyday working men and women. and that's what all of the bills we have done over the summer have been focused on doing. >> john: hey congresswoman, it's john roberts. dig in a little deeper what you just said inflation reduction act shows no inflation reduction during the year 2022. the rest of it. in 2023, projections are anywhere between reduction

of .1% and increase of .1%. but back to inflation, because yes, it's true gas prices have gone down. but when you look at core inflation which excludes volatile gas and food prices it's up .6% over august now to 6.3%. is that something that you want to take to voters and say here is a good reason to put democrats back in control of congress? >> you know what i'm going to say, i'm prepared to go to voters in november and one issue they care about and i never discount what people are feeling every single day. but i'm also going to tell you it is not something that happened overnight. this started with a pandemic the way that it was initially handled, a war in ukraine, and this president is dealing with multiple international and national threats and i think that -- i think this partisan bickering we see every day in washington has to stop, we have to be working together. there are 100 some economists

and everybody knows that says we are going in the right direction. i want to work across the aisle. i want to keep addressing these problems. we do have problems but i think we are making progress and i'm proud of the progress that we are making and we are seeing it every day. we have had more jobs created than anybody, we are actually beginning to fix our roads and bridges, address broadband, get lead out of pipes and those are creating jobs and you know what's important to me more than anything, john roberts, addressing supply chains, bringing jobs back home from overseas. supply chain resiliency. i'm tired of being dependent on china and other countries, we are bringing those jobs home and that's what the bills have been targeting at. >> sandra: we are watching the rail strike and how that's going to potentially affect the supply chain crisis. i am worried about that. we hear you being sympathetic to those suffering through the sky high prices, that's one thing and i'm sure people appreciate that. but people living paycheck to paycheck, going into debt trying to pay groceries in some cases.

it does not help them, the sympathy. they want this white house to acknowledge it and say they are doing something about it. this is the food prices, you've got the main things you put on the dinner table at night, poultry, eggs, flour, all these things are up double digits, energy prices still sky high and you are talking about just year over year gas prices up 25%, electricity prices are soaring, utilities, fuel, oil, is this president doing a good job? >> well, quite frankly, i think he's doing a lot better job than the last administration and i'm tired of seeing this country divided. you are for getting what the country was like when he took office and the pandemic. scared to death if they didn't have what was happening to their jobs, didn't know where their income would come from, didn't know if they could afford to get a vaccine, didn't have childcare, i could go through a whole list of list that have

addressed. this is complicated stuff and this did not happen overnight. it happened since this pandemic, this country and -- and a war. >> sandra: most economists acknowledge that spending more will only exacerbate the problem. do you approve of the massive amount of spending, on green energy? >> we are going to build chips plants. we have been debating the -- germany has plant another chips plant. i support him doing that. sometimes you have to invest to create and do i support the green economy? global climate is real. if we don't think we have seen enough of flooding, wildfires, drastic temperatures, how long was it 110° out west. that's real. i'm tired of everybody bickering about it. we can do both. we have to come to this table

and we have to worry about economic security, national security and environmental security. they are all real and it's not easy, it's not simple stuff, we have to roll up our sleeves and work together to address all three. >> john: in terms of spending, there is also this potential trillion dollar boondoggle out there to relieve people of their student loans. committee for responsible federal budget which is as non-partisan an organization as you can get says that it will wipe out by a factor of two any deficit reduction from the inflation reduction act. do you support this student loan program that the president has unveiled? >> when you guys are talking about what you are hearing when you talk to people about what they talk at the dinner table, can i tell you how many people came up to me in the last month in tears thankful they are getting some kind of relief at some asking, can i get any more, they are scared and i do believe we are going to keep working at

reducing the deficit and that's what we have to do to continue budget issues and i'm focused to continue to reduce the deficit and also understanding what's happening to working men and women across the country. >> john: i mean, if you are a supporter of reducing the deficit, the student loan program would go exactly in the opposite direction, increase the deficit. let me ask you this question. dearborn, where all the cars are made, is your district. how many auto workers have said wow, this is a great idea, relieve the student loan debt of people who went to college even though i never did. >> actually you would be surprised how many have and i've spent a lot of time with those uaw workers from southeast michigan. they have kids whose tuition they have been paying. yesterday, i'm getting ready for the president to come to the auto show tomorrow, some of the auto workers were telling me about how one of their, their son wants to go to medical school. i can't afford the medical school for his son, he doesn't know what he wants to do, he

doesn't want to deprive him of education. i can't tell you how many people have come up to me surprisingly, i have gotten very, and you know i listen, not afraid to tell people, they are thanking me for what he did. and i might not even totally taken that approach but hearing from people they are thankful. >> sandra: we want to get your thoughts on democrats to throw a lot of money, tens of millions of dollars behind some of the maga candidates by democrats to try to boost their party's chances in some of these title elections come november. do you support that move considering the president has raised the alarm on these maga candidates and said what a threat they are to american democracy? >> ok, so i've been clear, didn't approve of it when we did it, i kept my mouth shut, i don't want to hurt anybody but i was not a fan of it when they did that against peter meyers and i am concerned about the

fear and the hatred in this country, the division. united we stand, divided we fall. so, members of my caucus know how i feel and some other members feel and i have not hidden how i feel about that. >> john: i want to put up call for number three, your senate colleague, mark kelly, is in a tough race in yesterday. he was asked yesterday whether or not he thinks joe biden is doing a good job and whether he would support him in 2024. listen to this exchange. >> has he done a good job, do you think? >> you know, first of all, it's not my job to give him a report card. i would say mixed reviews. an do you think biden should run again for re-election in 2024? >> hey, it's not my job to decide whether he should run. if he runs i'll support him. >> john: he had a difficult time particularly on the job question. you said this president has done a better job than the last one. leave the comparison aside.

is this president doing a good job for this country, and would you support his re-election in 2024? >> if he decides to run for re-election i am going to support him. and i think it's important that we unite. i do believe joe biden was the right president at the time. i said it at the time. this country was divided. i had been outside my own home with assault weapons, forget about what's happening in this country. and joe biden is not somebody that's afraid to reach across the aisle, sometimes it does not appear to work but i'll keep doing that, too. i get dinged by people in my own party for you work with republicans too much. i work with everybody. i work with americans. we are americans first. joe biden is trying to do that. he's had a good summer, he's going to keep focused, people love to take shots at him, he doesn't give up. he keeps going. i don't know what he's going to do in 2024, if he chooses to run, i will be supporting him. >> sandra: to be clear, you believe this president has put out a strong effort to unite the

country despite -- >> yes, i do. >> sandra: despite the rhetoric he has used recently against the republican party? >> you -- i've been very clear and i want to make this clear to you that i don't think it's divisive to call out some of the vitrile and the anger and the hatred that we have seen. you know, everybody who came to washington on january 6th was not somebody who came to washington other than to express their opinions or freedom of speech but there were people who came to the capital prepared to kill people. there are two different kinds of people. i have lots of people i know that vote 99% of the time vote republican but we talk to each other, respect each other. but this hate, this fear, the kind of ugly -- i mean, the messages that i get and i'll get after just doing on fox but i never run away from doing fox because you talk to everybody is terrible. we have to treat each other, we can disagree, agree ably.

treat civilly and respect and dignity and i think that's what joe biden is trying to say to people but i think he's trying to call out the vitrile and say hey, people shouldn't be outside people's homes with guns, people shouldn't be threatening to kill each other. we had a horrific event over the weekend where a man shot his wife and his daughter and his -- the daughter that survived that was shot said it's because his father was listening to some of this maga stuff. i don't know how much that is, but i am worried about the hatred in this country, the violence in this country. i'll work with everybody and i respect everybody. >> john: we also had a person who was going, threatening to kill one of the justices of the supreme court who just happened to be conservative. >> wrong, totally wrong. >> john: clearly but the white house did not have a whole lot to say about it. >> i think joe biden made it clear it was not ok. >> john: and protests against the conservative justices as well. never a call from the white house to stop the protests. >> nobody should do that, and

i've made it very clear how i feel about threats against anybody or any person, even though they may hate me or outside my house with guns. i don't think anybody should threaten anybody. wep shouldn't be acting like that in this country and there's something wrong that's become so easy to do. >> sandra: and congresswoman, to your point, you do come on, we invite you, you say yes, we invite a lot of democrats every single day, they don't always do that. but we appreciate the conversation and appreciate you joining us as always. thank you very much. >> john: we do. >> thank you both of you, it's good to see you. >> sandra: and you know, there's a lot to be said for her coming on and having that discussion and all democrats, we invite them every day are invited to join us. john, to this point on inflation, it's a tough one for them defend, why you have seen a lot of the messaging from the white house avoiding that conversation but the reason we asked her specifically about this, the president and his team

have announced that he's going to be speaking 3:00 eastern time today to celebrate the economic news from today which is not good. it's 8.3% year over year inflation, these are sky high prices that are hurting hard working americans. >> john: and the cost of basic goods like poultry, eggs, bakery products, flour, up double digits, in some cases close to 50% more than before. energy, even though gas prices have come down, still way up. and again, the point that we made to congresswoman dingle is that if you take out volatile food and gasoline prices or fuel prices, your core inflation is up greater than the cpi was, and typically it's the other way around, that the cpi goes up, core inflation stays relatively stable. between july and august there was a marked increase in the core cpi. >> sandra: dow watch, dow down

860 points, it's not like an out of control selloff but big one, and the tech heavy nasdaq is suffering even more, down about 4%, we are watching it and clearly a reaction to the worse than expected inflation report, john. >> john: see where it goes. sandra, a familiar issue taking center stage in the race for a new mexico governor. michelle grisham neck and neck with her republican competitor. why he believes the issue of education will lead him to victory. >> sandra: and some ukrainians have been seen on video rejoicing as the army there takes back territory in the northeast and forces russia to retreat. how will a frustrated vladimir putin respond to all this? we are expecting a white house briefing any moment now. national security spokesman john kirby is set to speak. we will take you there live to the white house when that happens.

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stunning video from our border in arizona this time. fox cameras rolling as illegal immigrants dressed in camouflage seen there using a rope to rappel down a border wall and then ran and got away into open desert and are still on the run. bill is at the border for us, he's in eagle pass, texas. bill, stunning new video. you are reporting on it and the crisis obviously from this is not just limited to texas based on what we are seeing. >> bill: sandra, no, it's not. as a matter of fact, border patrol tucson, arizona sector has the highest number of got-aways anywhere on our southern border and that's exactly where we shot this

video. pull it up. it is remarkable footage out of nako, arizona, 45 minutes, well over a dozen illegal immigrants, dressed in camouflage, by the way, scaling the border wall, using a rope to rappel down and then running off into the open arizona desert. and these are not asylum seekers. these people are not turning themselves in. they don't want to be caught, they don't want to be seen and this is something that happens out there very constantly. keep in mind all these people you are seeing on camera here, not a single one of them were caught. all of them got away. border patrol did not catch a single one of them. they become got-aways, and now more than 500,000 of these got-aways at our southern border since fiscal year 2022 began back in october. a staggering number, and that's despite the fact that vice president kamala harris continues to insist that the border is secure. take a listen.

>> 2 million people will cross the border the first time ever. you are confident the border is secure? >> we have a secure border in that that is a priority for any nation, including ours and our administration. >> bill: also in arizona, take a look at these photos out of the nogales port of entry. cbp agents made five smuggling busts over the weekend, seizing 186,000 fentanyl pills, 3.35 pounds of pure fentanyl powder, 106 pounds of meth, all of it hidden in vehicles and strapped to human bodies, some of it inside human bodies as well. and back out here live, circling back to the got-aways, since the beginning of fiscal year 2021, now more than 900,000 got-aways at our southern border. population bigger than the city of san francisco and the border patrol union tells us it's a direct consequence of not having

enough agents on the front lines. a majority have been pulled off to do paperwork and processing. back to you. >> sandra: just staggering. bill, thank you. >> john: just extraordinary footage. new mexico's democratic governor michelle grisham facing a tough battle in the battle for re-election. ronchetti, says education is a key issue. mark meredith is in albuquerque, new mexico. we saw how big an issue education was in the virginia gubernatorial election, is that going to drive people to the polls in new mexico in november? >> john, that's what republicans are betting on. they believe parents in new mexico will be so outraged at recent test scores they want to see a change, but democrats say they believe new mexico like other states is simply adapting to a post-pandemic world.

there was some new data that came out indicating where the state stands in education with only 35% of students in new mexico on track with english and language arts. only 25% of students up to speed on that. new mexico schools fully reopened in april of 2021, and since then the state has addressed money to address learning laws but mark ronchetti says the state is moving too slow, he wants to address rampant truancy, and more parents should have access to the education process. >> i think everybody in the state knows we are at a crisis point. also know the legislature of the state of new mexico has failed children for too long and so has this governor. when a republican starts talking about it, i don't think parents care what party they are from. i think they want a say in education. >> the state's current governor says education is improving. she points to the recent effort to raise teacher pay. she's investing in education.

mimi stewart, retired special education teacher, says she believes the state so on the right track. >> yes our scores are down, every other state's scores are down. they are going to go back up. it will take us a couple of years. you never do anything fast in education. it always takes a while to get programs into place. that's why i'm sticking with michelle. >> latest polling shows the race remains a toss-up, new data showing democrats slightly outraising republicans in the race but the gop is putting a lot of effort in the state. they think it's a seat they can win back from democrats. >> john: mark, in the come back up scenario, did she say how long it would take to come back up? >> years, take a couple of years and they say because they do the investment now, it will take a while for it to get there. like you imagine, so many kids

and parents wondering what about the present. >> john: exactly, what about the kids in school now. big question to be answered by voters. mark meredith, thank you so much. sandra. >> sandra: any moment we are expecting to see and hear from the white house press secretary karine jean-pierre, and hold a briefing, and likely challenged on the brand-new inflation numbers and the president who says he's about to celebrate them. and also what about that plunging stock market? the dow off 800 points. john kirby will also be joining her at the podium on the latest on ukraine. we will take you there live when that begins. >> john: a big turn around happening there. democrats appearing to pull closer in the race for control of congress but one of the country's top pollsters says everything may not be what it seems. is the blue wave fizzing out, or another blue mirage? our political panel weighs in.

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>> sandra: potential turning point in ukraine. zelenskyy says his troops have reclaimed roughly 2300 square miles of occupied territory since the beginning of september. this prompting celebrations among ukrainian civilians and soldiers as they raise blue and yellow flags on top of buildings there after the military successful counter offensive in the northeast. in just moments, as we just mentioned, we are going to be hearing from the national security spokesman, john kirby. he's expected to join the press secretary in the white house briefing room in moments. but first to jeff paul, live on the ground in kyiv at this hour.

hi, jeff. >> we are already starting to get a small glimpse how russia is responding to the counter offensive in ukraine, in the form of long range strikes, particularly in the kharkiv region. that is where many of these territories have been liberated. so without russian soldiers in the area, it appears russian forces are now striking all over that particular region. yes, some could be characterized as military targets, but many of the images we are seeing coming out of the region are civilian buildings. leading to deaths and power and water outages. but, what it's not doing is crushing the spirit and the momentum this counter offensive has built. ukrainians say putin is waging the only war he knows how, largely against innocent people who are mostly defenseless. >> he became angry, he does not know what to do and he will strike here even more. just on infrastructure. he will strike so we don't have water, electricity, to create more chaos and intimidate us. but he will not succeed because

we will survive. >> beyond the tough words from ukrainians, it now appears there are some in russia who are criticizing the russian defense ministry from russian state media, pro war bloggers in favor of the war, all piling on russia right now, we will wait and see how moscow responds. >> sandra: jeff, thank you. >> john: political caldron, 56 days to go to the midterms and as democrats look to defend their senate and house majority, political analyst is warning the current polls may be overestimating support for their candidates. mercedes is here, and a frequent person i would see every day at the white house, and we will get

to the nate cohen story but tackle inflation. cpi went down .2 compared to august when you look at year over year numbers, but up .1, core cpi was up more than half a point. how big a problem as we look toward november? >> inflation remains stubbornly high for the administration. you saw the president touting an increase in wages especially for hourly employees, i think you are going to see that emphasis on wage increases and also in emphasis on declining gas prices, the sureest indication i think for american consumers of where inflation stands and it's been down 13 weeks is something the administration is touting. >> john: something that republicans can capitalize on, the democrats seem to have controlled the narrative in their opposition to the dobbs ruling. >> summertime to the big red

wave and the democrats got their groove back to then all of a sudden, well, the democrats, it's less impressive, their numbers, and tightening up. look, i just saw a poll saying 56% of the voters still want republicans to make a strong case. they have made a strong -- but still, think about it. they are saying the republicans have not made a strong enough case and let's lay this all out there. you are talking about the lack of border security, although kamala harris, border czar said the border is secure. you know, you are talk about the fact that americans don't feel economically secure and what's the democrat solution, they want to spend and spend more money. and i think when you continue to see the slowdown of the economy, add to that the education issues i believe is impactful for so many of these parents when they go out and vote, you know, the republicans, i think, have the edge in this case. >> john: we saw with bill's report a short time ago, kevin,

the border is anything but secure. let me put up call for number 2 here, because you mentioned that the democrat lead in some areas with this idea they are coming back is beginning to fade. nate cohen, analyst with the "new york times," said democrats are polling well and exactly the places where surveys missed most in 2020. when he does the calculation, cohen and rather involved article if you've had a look at it, don't know if you have, places where democrats are leading, like in wisconsin, north carolina, ohio, he says when you factor in potential error in polling, republicans win. so, could this idea that the democrats are coming back merely be a blue mirage? >> it certainly can. i have flashbacks to 2016, i don't believe any poll until election day but i do look at trend lines. and we picked up two special

election seats in alaska and new york hold, when democrats first, republicans on the ballot we held those seats and flipped alaska,s they get sworn in today, i'm confident looking at that and of course what we see to mercy's point, lindsey graham had the abortion ban after 15 weeks, they said let's allow the states to do that, and it should be the economy to the republicans point, i think they will be more successful on that front. >> john: i want to close on this, something we discussed during the break and debbie dingle. you have the last primary of the season, bolduc against morris, and democrats have poured $3 million into his race, more than he spent on this race and he's a maga republican, if you will, he has the support of donald trump. the very same people president biden is saying they are a threat to our country, don't let them get elected and the democrats are funding then.

>> i think it's a strategy that while we are talking about this earlier, could be hypocritical, it's effective to get the republicans they call far right, i will argue a lot of grassroot republicans are winning. they are connecting to the maga republicans, connecting even to some of the moderate republicans and you are going to be surprised, you are seeing in georgia, herschel walker in the last three polls has been up. you'll see many of these, what you would say nontraditional folks that have not run before, not politicians, they are celebrity types like dr. oz, they are going to make in-roads. i believe the democrat strategy can fail. >> john: hear from a democrat, effective but is it hypocritical. >> effective, i'll say that, and time will tell, 56 days from now whether it will be a winning strategy. >> john: is it hypocritical.

>> i think it's problematic to play in the party elections but keep a majority of republicans that voted to decertify this evenings out of power. >> sandra: plenty of election deniers on the democrat side. >> john: we have to run. >> sandra: president biden meanwhile admitting it's going to take a lot more time to bring down inflation after august hot inflation report just out this morning. and while prices do remain at historic highs, president biden says the white house is celebrating. why? jackie deangeles is here. >> john: police in illinois sounding the alarm over a new state law that will end cash bail. and one sheriff saying how much more dangerous things could get with the criminals on the streets. only get this far with his cholesterol. taken with a statin, leqvio can lower bad cholesterol and keep it low with two doses a year. side effects were injection site reaction,

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>> john: 165 years ago today, milton hershey was born in dairy township, pennsylvania. now a household name, hershey's first two candy businesses failed, leaving him penniless at the age of 26. but, the stroke of genius, figured out how to mass produce chocolate using fresh milk, changed the way america eats candy and the rest is history. >> john: have you been to hershey park? >> sandra: i have not, but when at first you don't succeed, you should try, try again. no to hershey park, eaten a lot of hershey chocolate in my life, it's a bit addicting. >> john: take a look at the candymodim. a trip you will never forget. >> sandra: stocks taking a tumble following the inflation report, another sign that prices

continue to rise. all eyes shifting back to the federal reserve tasked with bringing these prices down, and there are big concerns about americans who are suffering through the sky high prices. let's bring in jackie deangelis, nowhere to run, nowhere to hide. it's food prices, it's energy prices, it is shelter prices, rent prices sky high, you have the rates going up, just try to combat the inflation so mortgage costs are skyrocketing, nowhere to run. >> and the market is pricing that, jerome powell has to be more aggressive, than three-quarters of a percent and probably 1%. with respect to the numbers, no victory lap to be taken here. the fact that the overall cpi dropped from july slightly to 8.3% is nothing to celebrate right now, and frankly i see

people saying we are going in the right direction, it's not. and strip out food and gas, what the fed does when they look at the core number. core number is in the wrong direction it was up month over month, and over 6%. it's time the administration and politicians start to understand this has gone on for a long time and having an impact on people. >> sandra: fair enough. we have put together, to the point the white house would probably try to push the idea that inflation was flat when you strip out the food and energy, you see the energy prices did come down, we had debbie dingle on because democrats are liking to say gas prices have come down a bit. but when you look year over year, double digits. >> down 26% from the high of 5.02 but up 25% as you say from when joe biden took office. there is a problem with that. and people are still suffering, not to mention the fact we have not priced into gas and heating, right, the e.u. embargo on

russian supplies at the end of the year, that's what the market things will jump things up. even if interest rates go up and demand cools a bit, if you keep shrinking the supply it still can push the prices up. >> sandra: miriam webster dictionary, we reported on this yesterday, added shrinkflation. and year over year, double digits. important to see that food prices continue to go up, electricity prices continue to go up, the price of new vehicles continues to go up, shelter, obviously we continue to talk a lot about rent prices skyrocketing. these are just month over month changes, but this is the report that the market is reacting to today because the fed is tasked with bringing these prices down and it is not going to be easy, and it is going to have to inflict a lot of economic pain on the american people to bring those prices down, jackie.

here is what the white house is saying, and we are waiting for the briefing, we expect to hear from the president a short time from now. biden is saying the data shows more progress in bringing global inflation down. prices flat in the country over the last two months, more work still to do. tell that to folks living paycheck to paycheck or working two full-time jobs to read the grocery bill. >> a statement from mcdaniel, voters know democrats' wreckless spending put us in the mess and the only way to clean it up is vote them out. they take an out of touch victory lap, americans struggle to fill their grocery carts. >> sandra: and nikki haley is pointing out that inflation when president biden took office was 1.4%, inflation is now 8.3%. tough to celebrate that. she says families are having

trouble making ends meet and throwing a party on the south lawn is not the thing to do. biden is treating the american public like fools. >> essentially he is, that's what the statement is. it's very insulting to the person struggling, credit card debt pile up, savings dwindle, paying for necessities taking away from vacation or whatever it is. people feel it has gone too far, and that's what stagflation is. may not be 8.3% the whole time but a high number and goes on for a long time and takes a toll on the budget. i myself look at my own budget and there are things i want to do, but you are paying more for rent, transportation, more for food and takes a big bite. it's really a tough pill for people to swallow. >> sandra: dig into the stock market selloff, dow is down over 800 points, and s & p is down,

nasdaq, big technology names, it is down about 4% in today's trading session. it has taken a really big hit. why is the stock market reacting so fiercely to the latest economic data? >> interest rate hikes are bad for companies, they are bad for corporate earnings. to make ends meet when companies are paying more to service their debt, what are they going to do? we have this this conversation, they start laying people off. wall street journal report, these are the things that i said after the fall after everybody gets back from the big party we are going to start to see and the stock market is pricing that in, that companies are going to have a tougher time and that trickles down to everybody. it's all an engine with different parts and components. they have to work together. we were just talking about the consumer, this is about corporate earnings and you need that to function properly for the whole economy to chug along. >> sandra: consumers are changing behavior as a result of the sky high inflation and the hit they are taking to their

pocket book. shifting from discretionary spending to essentials. when you stop buying things you want and only buy things you need that, is a big shift in the economic environment in this country. polling shows 56% say price increases are causing financial hardship for their families. 67% of republicans say families are being hurt, 44% of democrats. that's a big deal. jackie, thank you very much. john, to you. >> john: 1600 pennsylvania avenue, john kirby has now just taken the podium to talk about new developments in ukraine. listen in. >> armenia and azerbaijan, frankly, and pakistan, just a quick update on our assistance during this difficult time of flooding and i think you have all been seeing that and covering that, the devastation is pretty severe. 33 million people affected, 1400 have died, almost 13,000

injured. infrastructure literally washed away to include almost 2 million homes and more than 4 million acres of farmland. united states continues to stand with pakistan and the communities inside pakistan and we'll help them as much as we can. you may have seen on friday usaid administrator was in pakistan to meet with the flood-affected community, and she announced additional $20 million in humanitarian assistance to support the people of pakistan. that brings to $53.1 million total of our support this year just to support disaster resilience and flood response in pakistan. with 50 million for emergency flood relief and 3 in resilience programming. but it not just financial assistance, and you'll probably hear more about this from our folks at the pentagon, but yesterday a total of nine

aircraft run by u.s. central command delivered more than 400 tons of relief supplies through usaid dubai warehouse in support of the flood response. and our assistance to the people of pakistan is being determined of course by u.s. personnel on the ground. usaid has a disaster assistance response team to lead the humanitarian response efforts in pakistan and we will support them as much as we can. armenia and azerbaijan, you probably saw our statement yesterday, the one that secretary blinken issued, we remain deeply concerned of reports of attacks along the border, including shelling and significant damage to civilian infrastructure. we are actively engaged with both the arnenian and the azerbaijan government to see

what we can do to end the violence. secretary blinken spoke with the president of azerbaijan and the prime minister of armenia. no military solution to this conflict. we urge restraint from any further military hostilities. we also encourage both governments to reestablish direct lines of communications across diplomatic and military channels and to recommit to a diplomatic process to resolve the crisis. steve. >> witnessing a turning point in the war in ukraine? >> i think what you are seeing is certainly a shift in momentum by the ukrainian armed forces, particularly in the forth. now, we have been talking about this for quite some days now, this long planned counter offensive, it's really two counter offensives, one in the north and one in the south. clearly we have been watching closely and the events in the north are more dramatic than what we have seen in the south.

i would let president zelenskyy determine and decide whether he feels militarily they have reached a turning point. but clearly at least in the donbas there's a sense of momentum here by the ukrainian armed forces. so what we are going to do is continue to support them as best we can. >> does it feel like the russians are just turning tail and running, or what are the russians doing here? >> well, i want to be careful not to speak for a foreign military, but i mean, certainly in the north we have seen russians evacuate, withdrawal, retreat from their defensive positions, particularly in and around the kharkiv -- they have left fighting positions, they have left supplies, they have -- they are calling it a repositioning but it's certainly they have withdrawn in the face of ukrainian armed forces that are clearly on the offense.

but steve, i mean -- obviously these are some dramatic events we are watching, but it's war, and war is unpredictable, and i think we are going to watch it as closely as we can but it's really the ukrainian armed forces should speak to the progress they are making. >> we have to get out of here at 2:35 -- go ahead, john. >> what early signs are you seeing at a russian response to the counter offensive and what fears do you and the western allies have for putin is taking the defeats may escalate things further. >> good question. you have already seen over the weekend the russian military hit some infrastructure targets in ukraine, looks like they were going after the power grid, mixed success, not all the strikes hit the targets or at least damaged the infrastructure to a maximum degree, but that was certainly what we would anticipate or what we analyzed as a response to what the

ukrainians were doing up in the north. it remains to be seen what the next steps are going to be here as the ukrainians remain on the offensive up in the north and to continue to pursue a counter offensive down in the south. they were invaded. they have a right to defend their country and territorial integrity, and that means going on the offense. that does not mean just defending and jonathan, i know everybody is focused rightly so on what we have been seeing the last few days, but i think it's important to remember that even from the get-go here, but way back in february and march, the ukrainians were still on the offense as well as on the defense in this war, and it's a very dynamic situation. >> is there any concern that russian repositioning would include repositioning in armenia, because of the response? >> we have not seen that. i -- what we want to see -- what we want to see is hostility

stopped. now the russians apparently brokered a ceasefire overnight almost immediately broken. so obviously we want to see there be a ceasefire that can stay in effect. the but we have not seen any indication that russian forces are repositioning. now, i will remind and i think you know this, they did have a peacekeeping presence there, and as far as we know that peacekeeping presence is still there. >> a couple more. >> thanks, john. u.s. and allies have taken the careful consideration the dynamics on the ground as they have considered new support or assistance for the military, current state of play changed or shifted what type of capabilities the u.s. is willing to send to ukraine in this moment? >> i won't get ahead of future security assistance packages. i think you will see another one here in the coming days, phil, we are in lock step with the ukrainians talking to them every day, secretary austin just held another contact group last week,

50 some odd countries and the ukrainians were present. so there is realtime discussions going on about what the military needs are, and i would also add that many of the systems that we have been providing in just the last few weeks and couple of months have proven instrumental and effective in the ukrainian's ability to go on the offense and to be actually quite effective in the last several days and weeks to include the rocket systems we have talked about so much. they are using them with great effect. >> thank you very much. two questions, please. unprecedented expressions in public by various officials in russia, whoever it is, or elected officials discontent what's going on, even if they are coming from different directions. any indications that putin faces a threat to his two decades in power? >> i think that's up to the russian people to decide.

we have taken note of public statements by public officials, and certainly it's not -- not insignificant. not the kind of thing you typically see. mr. putin has tried to obscure the war in ukraine since it started. actually, i would go so far to say before it started, calls it a special military operation, it's a war. and he has not been honest with his own people about what he's doing there, why he's doing it, and what he's doing it with. and certainly has not been honest with the russian people about the struggles that the russian military have had in the conduct of this war, to include casualties and losses of equipment and systems. so yeah, we know he's coming under more criticism but it's going to be up to the russiay he that. >> john: all right, john kirby giving an update on the situation in ukraine and elsewhere around the world saying in ukraine there has been a shift in momentum in the donbas region. the u.s. continues support to

the ukrainian military. himar system among the munition systems the united states has delivered there, although he said that war is unpredictable, we need to see how this is going to go, sandra. >> sandra: very interesting. meanwhile, seeing the live pictures coming in from england as queen elizabeth's casket has arrived there. the plane touching down just a short time ago. the royal air force flying that plane in before being transferred to buckingham palace. we know there dozens of officers were waiting to greet the queen here as members of her family, including her daughter anne. john, a statement was just issued from the princess royal anne, i was fortunate, she says, to share the last 24 hours of my dearest mother's life. it has been an honor and a privilege to accompany her on her final journeys. witnessing the love and respect shown by so many on the journeys has been both humbling, she says, and uplifting. we all share unique memories. i offer my thanks to each and

every one who share our sense of loss. we may have been reminded how much of her presence and contribution to our national identity we took for granted. i'm also so grateful for the support and understanding offered to my dear brother charles as he accepts the added responsibilities of the monarch, as she arrives there with the casket, the late queen elizabeth ii, her mother, in england returning home. >> john: you see members of the 63rd squadron raf regiment, formed up a bearer party and guard of honor. the queen's casket has been taken off the plane, it will be loaded on the royal hearse, take her down the a-40, it's about the same distance from london as heathrow is, a similar direction, travel down the a-40, it will go through paddington,

significant given the queen's appearance through the jubilee, down the marble arch and the east side of hyde park and then on to buckingham palace. why don't we take a moment and listen in here. ceremony is about to get underway, bring in martha maccallum, who is in downtown

london where the queen will arrive at some point probably in the next hour or so. and it was quite a journey as illuminated by princess anne there, martha, the journey from balmoral to edinburgh. >> martha: john, good to be with you and sandra. obviously this has been a very emotional journey through balmoral and edinburgh. watch as the military and the coffin comes off.

bearer party, six paces. outward, march.

bearer party, inward, turn. >> john: and the queen has been placed in the royal hearse and it will be leaving raf northholt shortly for the journey to downtown london. martha maccallum is still with us. i don't know at what speed the hearse will travel along the a-40, but it is expected that a lot of people as we see princess anne and her husband tim lawrence there watching as the casket is loaded. i imagine there will be a lot of people along the route who are out there to pay their tribute, their respects to the queen. >> martha: absolutely, john. we have seen that all throughout this journey. in some ways it might remind

americans of the journey by train of the coffin of abraham lincoln, people along the route came out to pay their respects. it is kind of like what we have seen in this journey from edinburgh to london by various modes of transportation, it also strikes me, you see the e with the crown on the side of this hearse, and i also noticed on the swords being held by some members of the military, you would also see the er. that symbol has been all over this city, all over the country, all over people's uniforms, all over the currency for 70 years, and it will remain a symbol of elizabeth r, the second queen elizabeth of the united kingdom and we see the beautiful flowers from balmoral, the royal standard of scotland still draped on that flag and a member of the clergy bowing his head at this moment and you mentioned

that beautiful statement from princess anne who has made it her duty over these past several days to stay by her mother's side every step of the way. she said i'll read the top part again, i was fortunate to share the last 24 hours of my dearest mother's life. it has been an honor and privilege to accompany her on her final journeys, witnessing the love and respect by so many on the journeys is humbling and uplifting, and goes on to thank everyone for the support and understanding offered to my dear brother charles as he accepts the added responsibility of the monarch. queen elizabeth home in london as she makes her way to buckingham palace for the last time and those waiting for her are the extensive members of her royal staff, many of whom have worked with her for decades, and for many of them, the end of their career as well as charles will bring in many of his own

staff members, but it is such an important part of the royal family's life, the people that they trust to surround them as closely as these individuals do, and you'll see a lot of people trying to get a glimpse of the coffin on the route home to buckingham palace for the very last time tonight. >> john: and i think it's significant, too, the coffin is draped in the scottish royal standard. england was her home but she loved scotland and a big part of scotland is coming back to london with her. martha, stand by as we continue to watch this. >> sandra: steve hilton is joining us now, former director of strategy for british prime minister david cameron. steve, thank you very much for joining our coverage here as we look at live pictures, a moving moment, yet another one, and you are reminded watching this and

brings to mind over and over how many lives she has touched as so many of those mourning are lining the streets there in london just to catch a glimpse as she arrives home there, going back to the statement from the princess, from her daughter anne who has been with her all the hours of this journey, steve. also from that statement that stands out that she said we may have been reminded how much of her presence and contribution to our national identity we took for granted. it's interesting hearing that from her in this moment. >> yeah, i think that's right, sandra, and i think that it fits really with what i've been thinking as i've been watching the scenes. i have to say my eyes were welling up again as i saw that coffin being brought off the plane, and people might be thinking, you know, here is another moment, right, and we saw the scenes yesterday and there will be more in the days

ahead, and people might be saying you know, isn't this enough, you know, and i think what princess anne said there captures it. no, we have all these moments and the british people i think expect and demand all these moments because it is so momentous what has happened, you know. this is -- each day it seems to get more emotional for so many people, and i think the country, certainly the u.k., needs this extended period and all these opportunities to show their respect and grief and admiration and so on because of the incredible role that she played, which is exactly as princess anne said, just coming to terms with now. and the points that martha is making about scotland so interesting and i would add to that by saying it was really, really special to see of course we know the queen loved scotland, we have talked about that a lot, but how much scotland loved her.

enormous respent for crowds in edinburgh were something, and the political context, a lot of conversation about scotland leaving the united kingdom, that's going to be a live conversation, but even the leader of the scottish national party who had been very, very present throughout those ceremonies in scotland, she's made it clear that, and she's the one arguing for scottish independence. made it clear even if scotland leaves the u.k., they still want the monarchy, they still want the monarch to be the head of state for an independent scotland, and the love for the queen from the scottish people in some sense, you could say it's even stronger than the english people. and really evident, interesting. and princess anne, she's really a remarkable person and i think people need to be aware that, i mean, we'll see how the public respond to kingdom charles, but

certainly up until this moment princess anne was easily the most respected member of the royal family after the queen herself and that's because she carried herself very much in the way the queen did, never got involved in controversy, worked incredibly hard, her sense of duty was very clear, it was not always like that with princess anne. a bit of a rocky start, a few decades ago she was unpopular but over the years she really earned the respect of the british people and i think she's really showing in this moment exactly why. >> john: as we watch the royal hearse on the journey to london, and martha, some of the famous english rain falling, a pretty healthy clip. as the royal hearse proceeds do downtown london and buckingham palace, while she is in a closed hearse today, tomorrow she will

be in an open gun carriage from buckingham palace to the westminster palace, the houses of parliament where she will lie in state at westminster hall for a number of days before her funeral, martha. >> martha: that's right, john. she will be received tonight by prince charles, king charles iii excuse me, and the queen consort camilla, and the prince and princess of wales, first time we have seen them in the official capacity, a lot of outreach to wales and create a strong relationship with wales. so, we are going to see quite a bit in terms of the ritual that is carried out here over the next couple of days. and you mentioned the gun carriage. it's actually a deep green color gun carriage. it is the same carriage that carried her father's coffin, her great grandfather and her great-great grandfather, and pulled by 138 sailors by the

royal navy, and gun carriage and the reason it is hauled by sailors goes back to queen victoria's funeral and apparently during that the horses attempted to kind of bolt and the sailors grabbed it and carried it the rest of the way, and that's a tradition that has continued ever since. and obviously queen elizabeth very admiring of queen victoria, her great-great grandmother, so a very strong connection there between all of these lines. and the powerful women who have been the monarchs of this nation. winston churchill loved to point that out. the two elizabeths and victoria, there were six total women who have ruled as monarch in the history of the united kingdom. but those three really represent some of the longest reigns and some of the most important reigns in the entire history of the country, john. >> sandra: beautiful aerial shots coming in as the hearse continues to take its slow

15-mile journey across london to buckingham palace. people obviously there as you saw a moment ago lining the streets. despite the rain that john mentioned, according to the palace, the queen will then travel down the a-40 as she is, until paddington before heading to buckingham palace ultimately. coffin will rest overnight and tomorrow will be moved to westminster hall where the queen will lie in state. hundreds of thousands of mourners are expected to file past, martha, until monday morning, which is, of course, the day of the queen's funeral. what an amazing display, seeing so many lining the streets awaiting her arrival. >> martha: i heard someone say today, the hundreds of thousands of people who are coming, and you see them lining the streets now as the coffin makes its way en route to buckingham palace, they are not mostly, you know, just curious to see what's going

on. when you speak to them, they talk about the fact that they want very much to pay their respects, that they want this opportunity to thank her and i think back to charles' words that first night when he spoke and you see the people, see the shot right now on the side of the road getting out of their cars and standing as it passes and we also understand that during the funeral, when the bells chime at westminster abbey, all the trains and busses will stop, literally a sense of everything, softly raining, a very typical london evening. so far the sun has shone almost 100% over every one of these, even in ireland when charles was there, it was a sunny, beautiful day and we remember the rainbow that came out over buckingham palace when it was raining shortly after the announcement of the queen's death. two beautiful rainbows over the

victoria statue in the circle in front of buckingham palace. so, just a really truly beautiful moment as this coffin moves its way slowly towards buckingham palace tonight, sandra. >> john: londoners are used to the rain, no surprise they're out there. tomorrow will be quite the ceremony when the queen arrives at buckingham palace tonight, she will rest in the bow room, named after one of the large windows that looks over the gardens, and direct access to the gardens, and we know from the schedule the first part of the journey that the queen will take from buckingham palace to the houses of parliament, which really is a little bit more than a half mile away as the crow flies, start with a tour of the 39 acre queen's gardens, open to the public many times during the summer. then down the mau, and will make

a turn and come down there through the horse guards and horse guards arch down whitehall to parliament street and then on to new palace yard to westminster hall, which in total will take a half a mile distance end turn it into a two-mile long procession. and if you think that there are a lot of people on the streets watching this, just wait until tomorrow. let's bring in our chief correspondent jonathan hunt. speak of the queen coming back from scotland to england and what we will witness over the next 24 hours. >> jonathan: her final journey back to buckingham palace, the queen's final night at buckingham palace, the place that has been her residence for the entire 70 years of her reign. prime minister winston churchill, her first prime minister, who persuaded her she should take up residence in buckingham palace. we wait to see whether king

charles will follow her example. he seems at the moment intent on staying in clarence house, very near to the palace, of course. but this is an extraordinary moment as the queen's coffin is brought towards central london now. i imagine it will slow even more than it is currently as it goes along the a-40. once it comes into the streets of london, the crowds will get larger and larger and then as the hearse comes down the side of hyde park, having passed marble arch and then wellington arch and finally down constitution hill to the palace itself. there are thousands waiting here right behind where martha and i are right now. they have been standing in this rain all day. it has been a steady rain coming from clouds hanging very low over buckingham palace. a very typical english day as you say, and martha was talking

about how sunny it has been. i was looking at the weather forecast, interestingly enough for tomorrow, it is supposed to rain all morning and through lunch time and then if the forecast holds, the rain is due to end right around 2:00 p.m. local time and at 2:22, of course, is when the procession is supposed to start as the queen's coffin leaves buckingham palace and heads on what will be a 38-minute and we are told it will be precisely 38 minutes and the brits are very good at making their pageantry precise, 38-minute journey to the palace of westminster and into westminster hall, the oldest part of the palace, nearly 1,000 years old, and there, of course, the queen will lie in state for a full four days, and we are told, by the way, john and sandra, that officials expect that they will be able to get in the region of 400,000 people the

opportunity to file past the queen's coffin in westminster hall over those four days. i'm sure there will be a lot more than 400,000 wanting to do that, but they hope they will be able to get that number who will have the opportunity to say a final good-bye to queen elizabeth ii. >> sandra: jonathan, martha, if you can stand by, steve hilton as well, continuing coverage of the arrival in london but first the white house, karine jean-pierre is pressed on the new inflation numbers and why the president is celebrating. >> that this would be the inflation reduction act would -- would be beneficial to extra $300 billion in deficit that is really important as we have right now 1.7 billion deficit deduction under this administration. it will help lower that even more, which is incredibly important. and so look, we have heard from

republicans and democrats who were u.s. treasury secretaries who said it would lower inflation. we have heard from more than 126 economists said it would lower inflation. and so i think that is -- that is also an important fact that we point to when we talk about the importance of the inflation reduction act, the importance of lowering costs for american families, even as you look at the energy costs as well. >> but some of the savings that you're pointing to wouldn't kick in until 2024 or 2026, so is it fair to suggest to people that somehow they are going to see some inflation reduction right now while they are all righting the most? >> well that, is actually not true. so just, this is just for folks who are watching, consumers, families and small businesses, owners can head to clean energy.gov as it relates to the energy cost component, the lowering of costs to learn more about how they can start saving

money immediately. thanks to the inflation reduction act. tax credits and rebates, that is real, inflation reduction act credits and rebates available today include a 30% credit to cover the costs of installing rooftop solar, up to 10% credit to cover the cost of insulation materials and other energy efficient windows and doors, 30% tax credit for heating, like a heat pump or air-conditioner, and up to $7,400 for purchasing an electric vehicle, rebates are available to folks, tax credits are available to folks today. i'm going to go around. >> sandra: so that was karine jean-pierre getting pressed on

the sky high inflation americans are living through, inflation at 8.3% year over year, it was at 1.4% when the president took office. the dow jones industrial average has been reacting throughout the trading session today. reaching new lows, while she was answering questions there, down almost 1,000 points right now. it's about a 3% drop. as this white house tries to answer for more spending and incredibly inflationary time. when you continue to spend during times of sky high inflation, it will only make matters worse. so the fear is that inflation will only continue to go higher, the white house certainly challenged on that, and trying to answer for that, the dow down almost 1,000 points. we'll be watching it, john. >> john: your 401(k) taking it on the chin, no question about that. louisiana senator republican kennedy, a half hour from now, a

grand event on the south lawn of the white house, president biden saying four weeks ago i signed the inflation reduction act, tune in at 3:00 p.m. eastern time as i offer remarks and for those who made it happen at the house. cpi numbers higher than expected, increase last month, increase in core inflation from last month, is there a lot to celebrate in your opinion? >> well, the white house, any white house can always find a handful of economists to prostitute themselves and say anything the white house tells them to say. i will note two prominent democratic economists, mr. summers, mr. furman, have both said that inflation is gutting the american people like a fish. certainly the stock market, the capital markets as you pointed

out, john, are not impressed with the inflation reduction act because they are crashing. they, meaning the markets. this is what the inflation reduction act did. it took a quarter of a trillion dollars out of the pockets of the american people at a time when the economy is slowing, prices are rising, and 401(k)s are crashing and gave that money to the green new deal industrial complex which is going to spin that money in a way that will cause energy prices to rise without reducing world temperatures a smidgeon of a degree, and it represents a gross misallocation of capital. and we are seeing that reflected in the capital markets, the stock markets today. >> sandra: the press secretary just took a few questions on this, she was challenged on the

dow falling as a result of this really, you know, a really warning about the american economy and where inflation is going from here. but still she says we are going to hear from the president a short time ago would said this is reason for celebration. listen. >> for some time now when it comes to his number one economic priority is to deal with inflation, to make sure that we are lowering costs for the american people, for american families. americans who have to come around the table, you know, once a month and particular to figure out how are they going to pay those bills. again, this is why the event that we are having in less than 45 minutes to celebrate and talk about, you'll hear from the president about the inflation reduction act is so critical. that is why democrats and this president took the, you know, did the hard work to get that done is to lower costs on healthcare, to lower cost on prescription drugs, and also

energy costs as well. >> sandra: to be clear, we have had the white house on this program, senator, and asked them, what exactly will this do to the inflation everybody is experiencing, and by their own estimates talking to economists. they are still only touting it will bring down inflation a small fraction of a percentage point. so we are not really talking about bringing prices down big time and the president to her point is prioritizing inflation and this is where we are today, someone should tell them it's not working. >> i know the president is going to speak a little bit. frankly every time the president speaks he shows us how much he doesn't know. i don't dislike the president. is he a perfect person, no. does he try to get better every day, also no. and therein lies the problem. the inflation we have today was made in washington, made by the biden administration. and the things that they have been doing is going to make it

worse. the inflation reduction act spent raises taxes once again with prices rising and economy slowing. he did not forgive student debt, just transferred that student debt from people who owe it to people who don't owe it, it's a massive expenditure reduction of income and all of this if you talk to economists other than those that just prostitute themselves to a democratic president, they will tell you the president does not have a plan to solve the inflation problem that he himself created. and the inflation reduction bill, i know why they called it that, but unless you still live with your parents you know that the inflation reduction act is a throat punch so the american people at a time when they can least afford to take the blow. >> john: it's our understanding, senator, the president is going to have some not so kind words

for you and your republican colleagues for not supporting this act. apparently also going to single, not you particularly, but republicans out for opposing the hiring of 87,000 irs agents, which are critical to this plan. what do you say? >> well, i say that the internal revenue service is not exactly a model of efficiency. i can't think of an agency in washington that's more dysfunctional. they are going to spend that money to hire 87,000 people, not to improve service to the american people, but to target them. and to give you an idea of how many people they add -- after president biden gets through with throwing irs, the irs will have more soldiers or agents than the israeli army, and some say the entire army in great britain, and i don't think they are there to make our lives

better. they are going to try to raise taxes indirectly on the american people, the middle class, by auditing them and when the people can't afford to defend themselves hiring a lawyer, they are going to collect all this extra money and give it to the green new deal. >> sandra: senator, we are talking about a lot of problems here with the economy. we obviously still see serious problems at our southern border with just today brand-new video showing some of these illegal migrants climbing over the border wall in camouflage, dropping down on a rope and then getting away, many of them. we see crimes spiking in american cities, yet it seems that the potential margin of victory for republicans in the midterm elections, you can put the clear politics line chart up, showing democrats are clearly closing the gap here. so are republicans getting their messaging wrong here? >> i went through this two years ago and two years before that

and two years before that. this time two years ago, sandra, the so-called experts had lindsey graham down by ten points, susan collins getting beat, tom tillis getting beat, mitch mcconnell getting beat, they all won. and a lot of the pollsters including but not limited to the ones hired by some of the major newspapers are about as good at forecasting the future as some of the -- we see advertised on television. i don't have a lot of confidence in them and a lot of the states that they are talking about, these are purple states, basically 50/50 states, and they will be determined by voter intensity, by turnout. i don't think it's a news flash the races were going to be close. republicans are being outspent, we are always outspent. but as long as you have enough money to get the message out

we'll be fine. i think we'll take back the senate and take back the house. i will say this to the american people. i've tried -- republicans are not perfect, they aren't. but the other side is crazy, and i've tried working with the zealots in the biden administration, you can't do it. the only place to find cheaper prices and sanity is in the voting booth. >> john: see you soon. >> sandra: also watching the dow, senator, thank you, just dropped more than 1,000 points, sinking to the lows of the session just over an hour left in the trading day. we are certainly watching that, john. >> john: yep. celebrate good times, come on. let's bring in chief political anchor and executive editor of special report bret baier in the studio. pick up on what senator kennedy was alluding to there with sandra, and this was an article

that nate cohen had in the "new york times" yesterday where he was suggesting that the polling we are seeing out there, democrats look like they are going to be better than first thought may not be accurate. here is the headline from his piece. yes the polling warning signs are flashing again. democrats are polling well in exactly the places where the surveys miss the most in 2020. he is suggesting the polling was off in 2020, off in 2016, and just as off now in 2022. >> bret: it's very possible and i think you look at the states, wisconsin and the polls heading into wisconsin, they were off not just by 1 or 2, they were off by 10 or 15 points. pennsylvania was the same way, so you have states where senate races look like the democrats are opening up big leagues, they are getting tighter, we should point out, but there is a sensitivity to these polls that perhaps either they are not answering the right questions or, two, people are not answering pollsters and they are

not getting the right results. >> john: saw that in 2016. >> sandra: and we are about to hear jacqui questioning the white house press secretary in the briefing room, if that happens, we will do to that. this is a white house being challenged of a lot of problems, including inflation. the point we just asked senator kennedy, bret, and hello, by the way, closing of the gap of democrats and republicans and potential victory in the midterm leanings, what is it that republicans are not getting right when you have so much going wrong? >> bret: i think the inflation story is really big. i think this report is really heinous overall, and if you think about what people feel at the kitchen table, this is it. i do think the dobbs case and the u.s. supreme court overturning roe v. wade had a big effect on independents,

suburban areas particularly, and are republicans going down the wrong road with the nationwide abortion ban after 15 weeks, after saying it's up to the states in the wake of dobbs. so i think there is some leeway there for democrats and they are going to pounce on that. you already saw chuck schumer doing that today. inflation, though, i think it's going to drive the day and how people are feeling about what they spend. >> john: you mentioned the dobbs decision and the democrats have leveraged that and it's been seen in increasing voter registration for the democrats among women in some key battle ground states and the republicans have not had an effective response to that. can they now, with inflation remaining high and higher than forecast to be and core inflation increasing more than a half percent between july and august, can they leverage that economic message in a way that

overrides the dobbs message from the democrats? >> bret: that is the question of november. that is the election question. and today you have senator mitch mcconnell and top republicans talking about inflation. you have senator chuck schumer and top democrats talking about abortion and senator lindsey graham's bill. i think the premise of senator graham was to say put a 15-week number on it so that you could have some candidates that say i sign on to this. democrats, do you sign on to abortion after 15 weeks? and then turn the tables. i'm not sure it's working like that today on this first day of that bill coming out or him talking about it. >> sandra: if i could ask our team to tee up, if they can, the sound, debbie dingle joined us top of the last hour and we talked to her a lot about inflation and also asked her about the democratic strategy to throw a lot of support, a lot of money, millions of dollars behind some of these maga far right candidates to boost their chances in some of the tight

races, bret. we asked her about that strategy and can she support that, considering the president's own warnings that these maga candidates and maga supporters are a threat to american democracy. here was her response. >> okay, so i've been clear i didn't approve of it, i kept my mouth shut, i don't want to hurt anybody either but i was not a fan when they did it against peter meyers and i am concerned about the fear and the hatred in this country, the division. >> sandra: more and more democrats will be asked about that, bret. >> bret: yeah, vice president harris was asked on "meet the press" and did not have a good answer, dodged the issue, it's a big issue and democrats will be asked about it. it's a double-edged sword and it could go the other way if you start running ads saying maga republicans are threats to democracy but then your campaign or your party is funding the

very maga republicans that you are worried about. it's a tough message, does not fit on a bumper sticker. >> john: shrewd political strategy, but hypocritical. and we will be right back in a couple moments as we watch the queen making her way from raf northam down to buckingham palace where she will rest until tomorrow afternoon and then taken to westminster hall, houses of parliament, where she will stay for four days before the journey to her final resting place. we'll be right back. and some you'd never expect. it's going to take funding innovation in renewable energy, helping reduce carbon footprints, and big bets on environmentally conscious construction. citi has committed 1 trillion dollars in sustainable financing to help build a better future.

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>> sandra: illinois set to eliminate cash bail in a few months. it's a move that law enmorsement says will make communities less safe. >> john: the criminal gates will be open. let's bring in the sheriff. thanks for joining us. >> sandra: i'll ask the question because so many in our beloved city of chicago are dealing with this spike in crime. they're suffering the consequences of this no cash bail. now it's effective in the entire

state. what does that mean for your county, what does that mean for people that live in illinois? >> it's definitely going to make the streets more dangerous. criminals -- they're calling it a pretrail fairness act. when we use that in illinois, fairness or fair tax, it's definitely not fair. it's a -- when they pass the safety tax -- the safety law, it was -- they said it was to reform police. what it's disguised as defund the police. and then they slid in this pretrail fairness act, which is really a pro criminal act. we won't be able to hold people and protect victims. >> john: you know, sheriff, a lot of people said oh, the no cash bail thing is a perception, it's not actually increasing crime. so we were interested to have the direct attorney of yellow county, california on recently that did some empirical evidence

and found out that 70% of people let out on no cash bail were rearrested for another offense. 29% for a violent crime. here's what he said about it. >> john: you got the same thing in illinois. so based on what he found, does it make any sense to do this? >> it really doesn't make any sense. you know, more importantly, we focus on kidnappings, one of the offenses. second degree murder, robbery, burglary. but even more important than that, being able to arrest somebody on -- and take them to jail overnight where they have to post bond the next day or they have a bond hearing, released by a judge. that takes someone out of the

situation where further harm isn't done to anybody. when somebody is just ticketed and we can't remove them from the scene, what i worried about is vigilanteism. we're going to have people acting on their own behalf. i live in johnson county. it's a great county. we believe in responsible gun ownership. a lot of people have firearms, a lot of people obey all the laws that they're supposed to. they have a car. they have their conceal and carry. not all of them understand in illinois, you don't have a right to use deadly force to protect your property. so you have to articulate in order to use deadly force, it's that you feel as though you're going to be harmed. what i'm worried about is when someone is burglarized seven, ten, 15 times, when are they going to cross that line and now the victim is the perpetrator?

>> sandra: why did this pass with so little debate in your state? with the warnings that are out there about what this will do to safety and crime? >> well, you know, crime is committed in the shadows, in the dark of night. this bill was passed in the dark of night with like 30 minutes left in the session. it was 700 something pages. i don't know how quick you can read, but when you look at legal briefs, 700 pages, quick to read in less than 30 minutes and now you're hearing people back-pedalling saying i voted for it but i didn't know what was in it. that's how it got passed. >> john: just the idea that zero cash bail is the headline, i think you wouldn't have to read much into it. we saw in memphis people that are let out of jail earlier now charged with heinous crimes. we'll have to wait and see how this goes. the one thing that seems to be clear is places like chicago can't deal with more crime than they have now. sheriff, thank you.

>> sandra: thank you, sheriff. john? >> john: the white house scrambling to avert a nationwide railroad strike that could start in days and could cripple the supply chain. kelly o'grady live in the port of los angeles. kelly, how many workers could go on strike there? >> good to see you, john. right now we're three remaining holdouts. that equates to 60,000 workers. that will be over 100,000 in the rest decide to strike. to that end, railroad execs are confirming they're following protocol and beginning to halt transport of hazardous materials to avoid fertilizers being left unattended. a new report estimating a nationwide strike would cost $2 billion a day and require 467,000 long haul trucks on the road. a number of industries could be paralyzed. 75% of new cars are moved that way. we could see empty shelves,

manufacturing shut downs and hundreds of thousands of amtrak customers being put out. the white house secretary touting trucks as a contingency the administration is exploring. the industry is already short 80,000 drivers and the trucks to support that shift don't exist right now. railroad industry experts say it could wreak havoc saying transportation and logistic partners are not positioned to take up the slack in the first half of 2022. more than 75,000 rail shipments began each day. these would sit idle. the president's cabinet has been monitoring the situation closely and the white house will continue further senior level engagement today in hopes of averting a complete shut down. even if no strike happens, this underscores this deep tension between two of the administration's top priorities. we've heard the president be vocal about his support of unions, but he doesn't want a melt down of the nation's transportation infrastructure, john. >> john: yeah, we don't want

that to happen. thanks, kelly. sa sandra? >> sandra: more live pictures as the queen's coffin continues to make its way to buckingham palace. night has fallen. the crowds are lining the streets. more beautiful sights and scenes there as they await the arrival of the queen back home to the palace. on a lighter note, john, a video going viral of the new king charles during a signing ceremony in ireland. i believe there's sound as well. let's listen. >> sandra: oh, gosh, i hate this pen, he said. the new king irked with a leaky

pen. >> john: you can be the monarch but still have a pen stain. >> sandra: it's the worst. >> john: which is why when you're king you should have a pocket protector. >> sandra: a light moment there as we continue to look at the arrival of the queen heading to buckingham palace. a quick check of the dow after that inflation report this morning. markets do not like it. the sell-off continues. lows of the session as we enter the final hour of trading. dow down nearly 1,100 pounds now. >> john: that's not a good day for the dow no question about it. president biden will be celebrating the inflation reduction act coming up in just the next few minutes. we go back to pictures of the queen again. she will be at buckingham palace from now until 2:22 tomorrow afternoon london time. and then she will be proceeded to the houses of parliament, to westminster hall where she will lie in state for four days.

so many hundreds of thousands of people expected to pay their respects between now and monday. >> sandra: really something, arrive ago short time ago to the royal salute there. we will continue our coverage here on the fox news channel. thanks for joining us throughout. a lot of news today. i'm sandra smith. >> john: i'm john roberts. we turn it over now to martha maccallum who knows so much about everything going on. she's live in london with the latest. martha? >> martha: thanks very much, john and sandra. good afternoon, everyone. i'm martha maccallum live in london. we have two big stories we're watching closely at the top of the hour. any minute now, president biden will celebrate his inflation act which passed under his watch despite what you're seeing going on with the dow today which is down 1,000 points as we head to the close. high prices persist. we'll talk to senator mike braun, bret baier all joining us on this really big story o