>> sandra: fox news alert, the top of a brand-new hour and we are expecting big news on wall street that could have big implications for main street. the dow jones industrial average has been rallying to the federal reserve interest rate announcement where once again the federal reserve is going to hike interest rates, trying to tame inflation. for the 7th time this year, the

federal reserve will be hiking those rates, trying to bring prices down at the consumer level. we have been dealing with 40-year high inflation in this country, and it has been tough on all. we are going to speak to larry kudlow about all of that when he joins us live coming up. we'll ask him, john, if the federal reserve might be going too far. a lot of times you don't see the actual impact of the interest rate moves for months down the road. so, are they going too far with this? that's a question we will put to larry kudlow. welcome, everybody. i'm sandra smith. "america reports" as we roll into hour two. >> john: keep an eye on the fed and the markets, one of the fast-moving stories this hour. also border crisis, one week until the biden administration lifts title 42 and the border patrol warns things are going to get a whole lot worse. a democratic lawmaker from the border pleading with president biden to stop this from

happening. congressman henry cuellar is here later this hour. >> sandra: a chinese tech company from doing business in the united states, senator tom cotton says it's a national security no brainer. why hasn't it already happened? senator tom cotton, how big a threat chinese-owned tech companies are to all of us. >> john: russian spies right under our nose, and a story straight from hollywood. >> what the hell? >> it's a couple. >> get in. >> go. >> take them, take them! >> sandra: that was hollywood's take on russian spies in the hit tv show "the americans," a husband and wife seem like the perfect american couple next door. >> john: so deep into their cover stories, even fooling

their neighbor, an fbi agent. we know that that plot was not outlandish at all. >> sandra: new hampshire, 25,000 people in a town. >> john: the braymans, a typical suburban home, blue shutters and a big yard, they sell night lights through etsy. >> it's a cover-up, a one stop shop for funneling information to russia. they say they fabricated shipping documents and invoices, repackaging and reshipping items to destinations around the world before arriving in russia. >> john: delivery driver described the pair as the nicest family, according to the boston globe. molly line is live with this, and john lecari could not have written it any better.

>> fascinating tale. the federal investigators say they have busted a smuggling network that worked to send millions of dollars in sensitive technology to russia to fund that countries war machine with some of the goods shipping through this quiet neighborhood. we are in merimac new hampshire, alexei lived a suburban life with his wife, but a frequent "trans shipment point," military grade, and to europe and then on to russia. some of the electronic components can be used in the development of nuclear and hypersonic weapons. >> i would see a bunch of boxes sort of stacked up in the garage and i remember telling my wife, oh, they must be moving, all packed up to go and i walk back again, and is it ill there, and that's just what they had, i did

not know it was an online business, who knows this day and age. >> brayman appeared in court wearing red, white and blue, facing conspiracy and fraud charges, released on $150,000 bond, and ordered to wear a monitoring bracelet. court documents say a u.s. citizen often shipped packages to brayman, opening many bank accounts for shell companies, and another suspect arrested in estonia, a man self-described as a colonel in the fsb, russia's security and counter intelligence agency. he allegedly attempted to smuggle u.s.-made ammunition, including bullets for a sniper rifle into russia, and several additional russian suspects remain at large. >> john: a tale of intrigue. and we know what the fed is doing and what it may do in the future. >> sandra: hiked for the seventh time here, 50 basis point, a

half a point. this was unanimous, it appears, the increase of 50 basis points. the market has been reacting as you can see, it was up all day, john. up a couple hundred points before the announcement and while it's not negative in a big way, the drop from where it was is pretty significant to know, the note is saying that it has seen modest growth in spending production but does say, the fed, there will be ongoing rate increases in 2023. so the federal reserve is basically saying in order to continue to tame inflation in this country, it's going to have to continue to raise interest rates, and that affects all of us. >> john: not done yet. see how high they go and how low the dow goes. >> sandra: and the fed is saying it remains committed to 2% inflation. we are still dealing with, you know -- 7, 8% is where we have been, 40-year high, to get to 2%, john, that is that really

tough balancing act that the fed is going to have to manage because as you raise interest rates, you don't really know the impact of that for months, sometimes years down the road, and so the fed has to try to tackle inflation without driving us into a recession. of course, that is the fear. >> john: you have to land the plane without killing everybody on board. >> sandra: we'll watch that and the market reaction and news from there as we see it. 11 days to go to christmas, 11, holy moley. parents are not just worried about the cost of everything under the tree but also critical antibiotics and fever reducing medications that are needed for so many children that are getting sick right now. fox business lydia hu is live at a pharmacy outside of new york city for us. how are the pharmacies handling the shortages? >> hi there, sandra. it's really difficult, this pharmacy here, it's running very low on amoxicillin, a common

drug used to treat many children during this time of year. they say 2 to 3 weeks on back order right now, so this particular cvs are in touch with other locations in the area trying to get parents what they need. but the problem is this is an issue that is affecting all corners of the country because the ingredients needed to make many of our medications are foreign. according to the u.s. non-profit, 83% of the companies that are manufacturing critical ingredients that make drugs like amoxicillin are foreign, like china and india, disruption in the supply chain there means a disruption to our supply here. take a look at this, you can see how china and india have grown their supplies, india, the part shaded green, associated with 20% of drug ingredients back in 2000. by the end of last year, that

has grown to 62% for the year. china, the portion in blue, 4% to 23%. the red part shrank from 15% to just 4. we talk with the ceo of u.s. antibiotics, only licensed u.s. manufacturer of amoxicillin brand products, he says other countries allow medications at very low costs, squeezed out american companies in the race to the bottom for prices. >> just in the area of amoxicillin, china, the chinese government made a very conscious decision to invest heavily in developing very large production facilities in china. so they drove a lot of companies that were in the united states producing amoxicillin and those companies went out of business. for a number of reasons, but i think primarily it was just the

price dropping so low. >> u.s. antibiotics says it is in touch with the fda about boosting the supply of amoxicillin specifically, but the real conversation is bringing the supply chain and manufacturing back to domestic soil. until that happens, pharmacies like this one will experience shortages moving into the future. sandra. >> sandra: so frustrating for so many parents and their children, and lydia, a few months ago you were covering every day the baby formula shortage, and now to have this happening, where people cannot get much needed medicine, not even on the store shelves, this is -- this is tough stuff. lydia, thank you. good to see you. john. >> john: destructive winter storm from the mexican border up to canada bringing everything from deadly twisters in the south to blinding blizzards and minus 12 temperatures up north. authorities say a young boy and his mother were killed when a tornado struck near shreveport, louisiana, the same system

dumping heavy snow and bringing whiteout conditions to the northern plains as it treks towards the northeast over the next couple of days. we have live fox team coverage. max gordon is in denver, colorado, the snowy conditions there. begin with robert ray, he's live in four forks, louisiana, got hit pretty hard. >> john, a terrible situation here today, just less than two weeks from christmas in this rural area just southwest of shreveport, louisiana. two people lost their lives yesterday as an et2 confirmed tornado by the national weather service popped down and took the lives of an 8-year-old boy and his mother, the 8-year-old boy found under a pile of debris yesterday evening, his mother found at 2:30 a.m. about a block away, she was taken out of her home by this tornado. multiple injuries here in the

area. more than 25 structures destroyed, trees down. there are electrical poles down in the area, police and officials keeping it really to a very limited space, not allowing media in. we went in earlier today and got a first look at the video as you are taking a look at right now, and unfortunately there is a lot of clean-up and a lot of mourning here in the area. meanwhile, john, there is another massive severe weather outbreak with tornadoes and straight line winds happening right now across the south in states like mississippi and onward into alabama. it is not over yet by any means, and as you stated, this all started on the west coast with snow and is going to tick up into the northeast with freezing rain and snow in the coming days. but again, an 8-year-old boy and his mother passed by the tornado that came in yesterday here in northwest louisiana. john. >> john: such a tragedy.

robert, thank you. sandra. >> sandra: so heartbreaking. head west where max gordon is tracking the blizzard portion of the storm, the plains slapped with snow. you are in colorado, how much snow did you get there? >> here in the rockies, a healthy amount of snow, over two feet in some areas. but really, the area of concern is to the east of us on the plains. blowing snow is a threat in eastern colorado today. they are under a winter weather advisory until 6:00 p.m. local time. blizzard conditions continue from eastern wyoming and montana into the northern plains with gusts from 40 to 60 miles per hour in western nebraska, many roads have been considered impassable, in north dakota, no travel advisories for most of the state after roads were unsafe and for a while, a large swath of 94 from dickinson to fargo was shut down. significant icing is also developed in the eastern dakotas

and northwest iowa, up to a half inch of ice reported. numerous downed tree branches and slippery slopes. and the rockies, cold temperatures in the wake of the snow. temps in the teens, excellent skiing conditions if you can bear it. back to you. >> sandra: max gordon on that for us, this is some whether, john. moving across the country. >> john: it is. but in the mountains where you are supposed to get the snow, it's a paradise, i was just looking at vail mountain cams, 11 inches of snow in 24 hours, the back bowls are filled with snow and with skiers. but with lake powell 173 feet below full pool, you could get that much snow every day all winter and would not be enough to fill the reservoirs back up. >> sandra: incredible. a couple weeks before christmas. >> john: guess who is on his way. larry kudlow will walk through

the fed hike. we will watch wall street react. >> sandra: glad he's coming. what happened? all green all day, and then the federal reserve interest rate decision came in and lost all the gains and more. migrants are flooding the southern border ahead of title 42 expiration one week from today, sparking a rise in kidnappings, the sight of dangerous criminals preying on desperate people. one mother's journey and the message for her family back home. >> john: we are digging into that with texas democratic congressman henry cuellar and the flow of deadly fentanyl across the border. nearly took the life of a florida police officer who was exposed to the drug during a traffic stop. >> breathe, come on, breathe. hit her again. she's not breathing, hit her again. >> out again? >> yes. orking hard to build a better future.

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>> sandra: fox news alert, the markets are reacting to the latest move from the federal reserve to tame 40-year high inflation. as expected, it was a rate hike and a half a basis point, 50 basis point, yet another effort from the federal reserve to bring down prices and the federal reserve basically said prices are coming down slower than they anticipated, jackie deangelis from the fox business network is here ahead of your big show in january, and we are watching this breaking news and the markets are certainly reacting negatively. what is the reaction that you are hearing? >> dow was up 200, it's now down 100 and the reaction i'm hearing is there are head winds ahead of us, sandra in 2023, and the

market might have been a little by aggressive. got 50 basis points it was expecting, modest growth next year, unemployment expectation, 4.6%, we are at 3.7% right now. inflation is declining at a slower rate than projected. we are talking about a target of 2023, the fed funds rate between 5 and 5.25%. that means more rate hikes, yes, maybe not as aggressive as this year, but we are not through the woods yet. the market wants to see the fed engineer what they call a soft landing, that is very difficult to do. >> sandra: especially when your target inflation rate is 2% and we are at 7.1%. so the really sensitive difficult challenging balance the fed has is to somehow achieve that target interest rate goal, sorry, inflation goal of 2%, but you have to look at

the moves the fed is making now and predict where things will be a few months from now, a couple years from now, because we don't truly see the impact of these rate hikes, you know, tomorrow. >> for a while. and if the fed does not act aggressively, people will say jerome powell is not doing enough, because people are suffering. even at 7.1% year over year inflation, people are feeling the pinch and saying we need to be moving faster in the reverse backward direction. food, gas, all these things are costing a lot more, and the fed also mentioned the russia and ukraine war is adding some pressure to inflation as well, people are looking at how long the conflict could be a factor here that jerome powell has to indicate. and the labor market has not cracked yet, and part of what the plan is, he told us, powell back in jackson hole, he said we are going to have to see some unemployment. 4.6%. >> sandra: ongoing rate increases in 2023, jay powell

saying a few minutes ago we have not seen clear progress on slowing inflation. that is a big warning flag to these markets that continue to move lower, and the fed is now projecting raising rates as high as 5.1% before ending this inflation battle. jackie, could you kind of just tell our viewers what that means for them at home? we have already seen the affordability on housing really getting hit hard by this. people can't afford to get into new homes right now, the housing market is affected. mortgage rates are going up, car payments are going up, all of these things are costing us more so we are in effect paying for all these policy mistakes, big government spending that led to this inflation, we are now paying for that trying to get these prices down. >> when the fed does when it tries to raise rates in this way, slow the growth and the overall economy. consumers are spending.

when the cost of borrowing goes up, you are 100% right, and mortgage rates go up, less people are buying new homes. auto loans, less people are buying new cars. that's fueling the inflation and stimulating the economy, it's all projected to pull back a bit, but that makes it harder for the average person to live and exist. by the way, if you have depleted your savings and now you have turned to plastic and starting to rack up some credit card debt, expect those interest rates to go up as well. so, while we will see inflation come down, there is definitely a direct economic cost here and that's to the american people. >> sandra: the wall street journal, they ran a headline, how did the housing market get so unaffordable for so many. while prices are coming down, the cost to own that home, the mortgage costs are going sky high and it's harder and harder for the average american family to get into a home. a lot of predictions we will see a big dump of houses go on the

market in the new year. >> that happened quickly and people in the market or had been dragging their feet but were looking, told me the home we could have afforded six months ago or end of last year, we can't afford it now because the rates make the payment expand in that way. >> sandra: fed raising rates by a half a point to try to tame inflation, markets are reacting, dow is down about 94 points, not a huge selloff, about you down after being up all day waiting for that announcement. thanks for jumping in, jackie. >> john: murder case in idaho, investigators there are hopeful a new tip from a gas station clerk could help them crack the case. the tip comes more than a month after four students were found gruesomely murdered in an off campus home. matt is live in idaho with the latest, and i think this almost speaks to how little the police really have this one tip may be their best attempt to crack this

case. >> john, we are standing in front of the police station right now. they insist the case is not cold, they are getting hundreds and hundreds of tips, but you know, the viewers on the ground know a lot of frustration and skepticism where the case stands. and the latest piece of video, the tip, police have asked the public to be on the lookout for the 2011 through 2013 hyundai elantra, and a gas station employee decided to scroll through the surveillance video and she found a white car speeding by around the time of the murders on november 13th, and police have since taken hours and hours of video from that surveillance camera. you can't really definitively make out the white car in the video, so not sure what police will do. they say it is important and police have not defined what role the car plays in their

investigation, just that they want to speak to the occupants, and another development, a possible piece of evidence there was video from police officers' body camera, he was stopping to talk to some students for apparent underage drinking and look in the background of the video, looks like 3, 4 people walk by, all you can see is silhouette, and an investigation on the ground and the 3 or 4 people in the background appear to be walking from the vicinity of the crime scene, of that murdered house. so, police say obviously that's very important, these four people in the background spotted about 3:12:00 a.m., we know the homicides happened between 3 and 4:00, could they have seen something, related to the case, they are looking into it, john. >> john: the latest from moscow. thank you, matt. now the threat from chinese tech. arkansas republican senator tom cotton pushing to block huawei and other companies from

accessing u.s. banks, he calls attempts to steal american's data, and getting support from lawmakers across the aisle. let's bring in senator tom cotton to talk more about this. you and senator rubio have a pair of things, rubio wants to ban tiktok. huawei, 5g companies, chinese tech and american infrastructure and tiktok, how big do you believe this threat from china really is, senator? >> john, the threat from china is severe across numerous fronts, in particular the technology front. many years going back to the trump administration, the government has been working to keep huawei 5g equipment out of the telecommunications network. it just happens to show up in small rural telecommunications companies next to the intercontinental ballistic fields or sensitive military basis. we don't want any americans' data security or privacy or national security to be threatened by huawei, i have introduced legislation to cut them off from the u.s. financial

system, would not just hurt them here in the you state, but the market dominance allows them to get into the united states. senator rubio and congressman gallagher have introduced legislation that would take on tiktok, as i said repeatedly, if you have tiktok on your phone, delete it now and get a new phone as well. it poses a severe threat to your privacy and to your security, and that's a lasting threat for the rest of your life. you may just have a daughter who looks at baton twirling videos or son who watches football videos, but that app is hoovering up all the information on their devices and will keep it for the rest of their lives. just two examples of the severe threat that the chinese technology poses to americans. >> john: tiktok is like a perfect trojan horse operation, available in 150 countries, more than a billion users. young people are as addicted to it as addict to heroin and every time they go on and use it, it is vacuuming up all of their data and sending it lord knows

where. >> yeah, and it's not just the fact it's vacuuming the data and keeping it in china. also the content on there. in china, young people can only use tiktok so many minutes a day and most content is respect your elders, do your homework and eat your vegetables. here, challenging what it prevents to minors. some of the most violent and degrading pornography or videos and recommendations how to implement eating disorders, targeted toward minors. i think the american people will be shocked, with american youthers have us chinese youth. >> john: why is it so difficult to convince american companies or allies, general jim jones, barack obama's first national security adviser, pounded his head against the wall for years trying to convince our allies not to put huawei equipment in

their 5g, and got some on board, some not. >> john, there are different reasons for that. with the american people, a lot of americans did not understand the danger of something like tiktok on their phones, privacy and security, that's why it's so essential that we try to inform them about this risk and take steps to protect them. with huawei, huawei has an intentional goal like so many chinese-supported countries, of mass producing products and then undercutting any competitors in the competent national market to develop a dominant position. you hear from some rural telecommunications companies here in america or allies, say huawei charges so much less and we don't really have an economically viable alternative. one reason we want to cut them off from the u.s. financial system to prevent them from developing that monopoly position around the globe. >> john: like the drug dealer who comes up to the kid, the first one is free.

a reason why it's cheap. >> exactly. that is a great analogy. with you should have never gone down the road of relying on chinese telecommunications equipment and never allowed the economy to become so entangled with the communist chinese economy. it's critical we start disen tangling it in sectors like telecommunications and technology. >> john: a small group of republican senators calling themselves the breakfast club, want to put some pressure on mitch mcconnell to make sure conservative issues are addressed in the next congress. we don't know for sure who is in the breakfast club, they will hold a news conference later this hour, senator mike bram, lindsey graham, panned paul, ron johnson, ted cruz and rick scott. do you support what the breakfast club is doing? >> we actually had a very good conversation of all senators, some of you just mentioned asked to have a full conference meeting.

all 50 senators here and the 49 senators in january have a lot more in common than we do with any of our liberal democratic colleagues. we may have slightly different ideas about how to get to a good positive result for the american people, whether it's stable prices, a growing economy, energy abundance, or protecting our borders, and protecting america around the world, we are more aligned to work with the democrats in the senate. we want to find solutions to bring together the entire party and the new republican house majority. >> john: what mike braun said about the need, he said mostly folks concerned about a broken process that has no participation and no transparency and politically fraught, it has not been working in recent elections. lindsey graham says republicans need to match democrats in picking issues that both motivate their base and broader appeal. do you agree there is a need for that? >> i don't think any republican

senator from mitch mcconnell on down likes the process. chuck schumer will have the defense bill on the senate floor in the final days of the senate calendar, did it last year as well. we will be asked to vote on a spending bill that did not go through the committee process, written behind closed doors, many cases senators and congressmen will not know what is entirely in there. we talked a lot this morning as a conference about how we can use the power that we still have, even though we are in the minority, democrats need at least nine republican votes next year to pass legislation to try to get back something like a normal budgetary process, where the american people can have the transparency they deserve about how their tax dollars are spent. every republican senator agrees with that. >> john: a lot to watch for. appreciate it. tom cotton. >> sandra: fox news alert, watching markets at this hour. just shy of the final hour of trading and look at this.

jay powell, the federal reserve chairman is now speaking after raising interest rates a half a point to tame inflation. he's talking about concern over the labor market and the economy in the new year, and the fact that prices are not coming down as fast as the federal reserve had hoped. larry kudlow is going to weigh in on this current market selloff that is happening now when we return. cash out loan from newday usa. it's called the newday 100 because . not just 80% like some typical loans. that extra cash can make a huge difference in these times of skyrocketing prices. here's more good news: home values have skyrocketed too. that means even more cash! take out an average of $60,000 to pay down your high-rate credit card debt, consolidate your second mortgage, personal loans, and car loans, and lower your payments by $600 every month. best of all, there are absolutely no upfront

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>> john: one illegal migrant's message to her kids in nicaragua, stay there. kidnappings, she was released only after the family sent all of their money for her freedom. and like so many others, the circumstances she hoped to escape are even worse.

>> i left my four children and grandchildren in nicaragua. they want to come to the united states, but it's better for them to stay there because it has been a very hard trip. everything gets stolen on the way. you go hungry, everything. >> john: criminals are taking advantage of the jaw dropping explosion in migration. thousands flooding the border each and every day. 1500 to almost 2,000 people cross the border into el paso on sunday night. all ahead of title 42 ex peration one week from today. we have team coverage for you now, including congressman henry cuellar we believe is just ahead, but peter doocy, hearing lawmakers are asking the biden administration for extension of title 42. the courts ruled against it. how can they get it? >> the democrats are basically saying officials here need to fill them in about what happens after title 42. you got john tester, democratic

senator from montana, saying that mayorkas at dhs left him hanging when he asked what the plan is post title 42. >> we sent a letter have he similar three weeks ago that said hey, where is your plan, we never got a response back. >> would you ask them to wait? >> i think if they don't have a plan, they need to wait to end. >> as another bipartisan group of lawmakers say they are relying too heavily on 42, it could mean they lose the ability to send a lot of border crossers back. >> this did not used to be this way. and what's going to happen in one week from now, when title 42 is lifted, so all your viewers understand what that means. title 42 simply says when someone enters the country illegally from another nation, we send them back to their country. when you do that, it stops illegal immigration from coming. >> this is not just an

immigration policy issue, though, it is a national security issue, so here is john kirby and his latest from today. >> it's going to remain a case after title 42. individuals who attempt to cross our border unlawfully and don't have a legal basis to remain here will be subject to removal. and i think we'll have a little bit more in terms of detail to provide incoming days. >> and there's a report in the el paso times, one of the largest groups of border crossers in years is huddling just to the south of the u.s. border. they know what the rules are now and they know a potential rule change or vacuum of new rules could benefit them. john. >> john: we are hearing the biden administration is going to ask congress for another $4 billion to deal with the rescission of title 42. we have talked to experts who deal with the border every day, and they say that putting money, throwing money at this is just going to make the situation worse. what that money will be used for

is quickly process people, means more may cross the border. what's the read on that idea from the white house? >> that's because this administration has not explicitly told people -- there are two parts of this. joe biden, when he was a candidate and in the transition said the people should come, essentially. they have since said people should not come, but they continue to come because as we have seen reporting from our teams at the border, there is a lot of money, government money going to nongovernmental organizations that pay for transportation, they pay for hotels, and so yes, the concern among critics is that if there is another $4 billion, it's going to go to relocating folks into the u.s. where some are given court dates, some are not. and again, we just don't know what exactly the administration wants to happen next week because they are not saying. >> john: all right, well. you can bet we are going to keep watching this, no question about

that. peter doocy, thank you. sandra. >> sandra: thank you very much. we are going to bring in texas democrat congressman henry cuellar, his congressional district is located along the southern border, you are a huge voice in all of this. what is your message to the white house this hour, knowing you and your fellow republican and democrat colleagues have penned a letter to the white house to do something. >> you know, you got to listen to what's happening to the communities at the border. the border communities are asking for help. the men and women in green and in blue are asking for help. so, we have to change something. just acting if everything is ok or the border is secure, which it's not secure, we got to do something. we got to with mexico, tougher with mexico, work with other countries like guatemala, so we can stop them from coming in. as long as they feel that the border is open, this is not

going to stop. >> sandra: i mean, there are some in your party who won't even say that. they won't even say the borders are open, and they are. we see people pouring in record numbers over our southern border each and every day. why do you believe the white house is not listening? >> three groups of people you need to listen to. immigration activists, that's one, i understand that. but you also have to listen to the men and women in green and blue but also got to listen especially to the communities on the border. i live at the border, i don't just go and visit there, i listen. there is not one single mayor, county judge that i know of, sheriff or police chief or other land owners are saying everything is fine. they are -- we are the ones who are facing this on ground 0 and we just got to make sure that we do something else besides acting like the border is closed. it's not closed. it's not closed.

>> sandra: at what point do things have to start changing here? i mean, we have men and women in this administration that are assigned to the border to fix what is happening there, and it's only getting worse. at what point do people have to start losing their jobs? >> well look, we have a lot of career people that know what needs to be done, they do. but they have to be given the opportunity to do their work. this is not a political decision. this is something that has to be decided on the facts, and the facts are there's a lot of people coming in, there's a lot of people waiting on the other side of the rio grande that waiting for title 42 to go away, and you are going to see not thousands, you know, small amount of thousands, but you are going to see thousands and thousands of people that will be coming over because they are waiting. the criminal organizations are promoting this because the more people that come -- get across, the more money they make. they make money off drugs and

smuggling and trafficking people into the united states. and think about what's happening. migrant, all they have to do is just get to the texas, or the u.s. border. then after that, taxpayers dollars are used to get them to their point of -- where they want to end up. so it's a great deal. all they have to do is just pay for half the trip and the other half of the trip will be paid by american taxpayers. >> sandra: so congressman, you have penned this letter, a portion of it reads this. never before in our nation's history have we experienced this scope and scale of illegal border crossings and we remain concerned that your administration, pointing to the biden administration, has not provided sufficient support or resources to dhs, termination of the cdc title 42 order at this time will result in a complete loss of operational control over the southern border. you did not mince words here,

sir. have you heard anything back from this white house? >> i haven't, i don't think senator joe manchin has, i don't think senator cornyn, my good friends tony gonzalez has. we have not heard from them and again, time is of the essence right now. there is a way that you can provide respect and dignity to the people who are coming to the border but at one time or another you have to enforce the law, and if enforcing the law means deporting some people not supposed to be here, or changing the rules where asylum seekers can seek asylum somewhere and do it in an orderly way through the ports of entry instead of in between ports, there are things we can do. sending more money for technology, for equipment, for personnel, all of that is important, i understand that. but you got to have the right policies in place. >> sandra: and end with this final question, not sure what your answer was. do you have any idea why -- do

they get it? the white house, you see the drugs, terrorists discovered in the lines flowing over the border, you see as you say taxpayers on the hook once all these folks get here. so, why is the white house doing nothing? >> well, again, i'll give you the same answer. i don't know. that's something they need to answer. all i'm looking at, or the repercussions from inaction from the administration. i'm a democrat. i want to be constructive to the administration. i don't just go and visit the border once in a while, i live there, i talk to the men and women there, and we -- and the communities there. we have to have some changes without a doubt. >> sandra: come back once you hear something from the white house. we have seen your letter, you and your colleagues are putting the urgency on it. thank you for joining us, appreciate it. >> thank you so much. >> john: sandra, inflation has

sent food prices sky high and now it's changing how americans eat. one discount retailer in chicago says he's seeing lines out the door lately and says more families are turning to expired or nearly expired foods, just to keep costs down. rod rojas continental sales, lots for less. your store is a huge success, some ways a good thing but other ways a bad thing, shows how desperate people are to save money in the inflationary spiral we are in right now and demonstrates the hardship that your customers are having. >> well, hi, john. really appreciate you having me on the show. yes, it is -- it's been good for business, but like i said, there is some tough times happening out there, but we kind of just try to focus on serving our customers and the community the best way we can. >> john: when you take a look at

how prices have increased, according to the bureau of labor statistics, meat and poultry is up, november to november, 4.3%. cereal and baked goods up 16.5%, canned fruit and veg, 18.5%, milk, 14.7, eggs, 49.1%, that is a lot for the average family to deal with. what are you hearing from customers when they come into the store? >> well, as you can see with the long lines that were mentioned before, there is a huge demand for savings right now and we are hearing a lot of it and i mean, they are waiting in line up to like some, on certain days like 200 feet lines to check out and waiting to get in the store just because of the deep discounts that we provide. >> john: so the groceries that you sell are either coming up to their best before date or up to six months after the best before

date. how does your pricing scheme there work? >> well, i wouldn't call it a scheme. >> john: i'm sorry, pricing structure. let's call it pricing structure. >> yes, thank you. the way we price our things is we try to hit based on the quantity we get of product and try to be at minimum 50 off the big box stores, and sometimes more when it goes past the expiration date. it could be 70, 80, 90, and silly prices when we get to that point. the customers, they really just, they really just buy it up. >> john: a lot of people might look at this and say my 11-year-old son, he is concerned about best before dates, will not even touch anything after a best before date and we tell him no, it's ok, that's just a suggestion. you sell things up to six months past their best before date and some people may ask is that a safe thing to do.

you've been doing this for 40 years, we should point out. is it a safe thing to do and ok to buy something either coming up to or past the best before date. >> yeah, absolutely. i was walking from one part of the store to the other the other day and a customer was contemplating buying a case of this salsa, we were selling the whole case for a dollar, like three months past of the expiration, and i can buy four for a dollar or the whole case for a dollar, yeah, and if there is anything you don't like, if -- anything -- anything that you don't -- you are not happy with the product, we take it backhands down and the customer goes i've been coming here ten years and i've never had an issue. so, it was just -- that was just two days ago. i can't even make that up. >> john: just for folks at home, how long after a best before date is a packaged item good for? >> well, some products like

canned goods can be up to a year, some harvard studies i've seen, and as we know i think there's been a joke out there of how long twinkies can last. >> john: that's true, slightly longer than cockroaches. what the usda says best before dates, if the date passes during home storage, the product should be safe and wholesome if handled properly until the time spoilage is evident. to reduce food waste, the dates applied to food are for quality and not for safety. ron, it's a really interesting business model you have there, clearly people are finding it's a necessity these days. we wish you anthem well, as you go about trying to work together to make sure everybody puts food on the table. thanks for joining us. >> well, thank you very much, appreciate it. >> john: sandra. >> sandra: larry kudlow now, on just that. larry, a grocery store owner dealing with inflation that is

sky high and fox news alert, breaking news, a major market selloff that has been happening as a result of the federal reserve trying to tame those prices. they are raising interest rates yet again, we had green all day in the dow, and now we are in the red. what do you see happening? >> food price is up 10.6%, dairy up 16.4%, the cleveland fed median cpi up 7%. what the fed said. very hawkish, unusually hawkish, took the market by surprise. in a word, the fed will continue to fight hard against inflation and they are looking for recession next year. estimates are for half a point of gdp, 0.5, virtually a recession forecast from the feds. >> sandra: pause that for a second, i think the microphone is underneath your lapel. we want to hear you clearly. the market is falling because the federal reserve, jay powell came out and sounded very

hawkish, that means he's saying he's going to be aggressive with inflation, he plans to continue raising interest rates, even though we are starting to feel the pain of this, so what does this mean for the average american consumer in the new year? >> get ready, head for the hills. fed is expecting the unemployment rate to go from today's 3.7% to 4.6%. again, institutionally, that's as close as you'll get to having them say we are looking for a recession. so people out there -- very cautious. they are going to continue to raise interest rates as you said, and -- >> sandra: but still, the president, if we can cue the sound, still the president is saying this about inflation. >> inflation is coming down in america. most americans can see the progress, food inflation load last month, providing much needed relief for millions of families at the grocery store. things like televisions and toys are going down, good news for

the holiday season. >> sandra: so anyway, he still believes there is no inflation. >> it's not that there is no inflation. inflation has come down, ok. the fed is working, it just takes time. pr prices are very sticky, he said we are going to continue our assault against, they say it will be the last rate hike, no more after this, and wall street estimate by early next year they will cut rates. that's not what the fed says. recession is buried inside the numbers and forecast. fasten your seat belts, fasten your seat belts. >> sandra: leave us off on a good note. >> republican house, stop spending, no omnibus spending

bill. spending causes inflation, they can help the story. >> sandra: larry we will see you at 4:00, and en fuego, larry kudlow. he's here on the breaking news. >> john: i try not to spend, but things are so expensive, it's impossible not to. >> tie prices are going sky high. >> sandra: tie inflation says larry. >> john: "the story" with martha starts right now. >> good afternoon, right now on. good afternoon. i'm martha maccallum. stephen moore here in new york as the fed raises interest rates again. the market is taking it hard. the signal is that we're not through with this financial difficulty and could be headed to a recession. more hikes are on the way. they're struggling to hit the brakes on the inflation despite

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