there are so many communities that do their own individual thinks next year. >> emily: and you celebrated with our neighbors across the pond! >> kevin: i was at the british embassy. they threw one heck of a party for the new year. god bless the british and the americans. >> emily: i love that. did they celebrate earlier? >> kevin: i wish. it was at midnight eastern but we could have done a whole day. >> emily: thanks everyone. happy 2023 to you all. to forget to dvr the show. now here is "america reports." >> fox news alert, and there is word the feds to hunt down terrorists had them in their sites. but cops say it wasn't enough to stop the key is islamic extremist from staging an attack on the nations and even the world's most watched in the year's event. welcome to fox news live. i molly line. >> i'm rich edson. this comes to us from a high level source with the nypd who tells fox news the fbi

counterterrorism task force knew the 19-year-old suspect had been radicalized into islamic extremism and had been watching them for weeks leading up to the machete attack on three officers in times square on new year's eve. >> molly: furious city officials saying the world-famous ball drop would never have become a target if the fbi hadn't dropped a ball on its own. >> the failure is that this is the umpteenth time we have heard the fbi say this person is on our radar. if someone is under suspicion of terrorism, that's a good reason for them to follow someone. the wind as the radar screen turned into scrambling the fighter jets? >> molly: and moments ago police announcing the suspect is being charged with attempted murder. just as correspondent david spunt has these breaking details. david? >> molly, members of law enforcement always plan for every possible scenario, especially for an event and the like new year's eve. but there are questions about the readiness, especially because the suspect was known prior to this attack.

>> i want to be clear that the fbi through the joint terrorism task force is working closely with them to determine the nature of this attack, and we will run every lead to ground. >> the unprovoked attack occurred around 10:00 p.m. new year's eve, just blocks from times square. the celebrations at the security checkpoint, according to authorities. trevor bickford from maine pulled out a machete-style knife and started swinging. three officers were injured and sent to the hospital. bickford was sent to hospital after an officer returned fire and shot him in the shoulder. and new year's day investigator visited the 19-year-old's family in wells maine not far from portland where neighbors were stunned by this news. >> is just kind of hard to believe. i have was shocked. this is a very small community, and you think, did this really just happen here? >> this is insane.

i am, like, blown away to think so close to home that someone would go all the way to new york and commit these crimes. >> the officers are expected to make a full recovery. that's the good news. the investigation continues as law enforcement probes whether or not to officially classify this as a terror incident for technical purposes. molly? >> molly: the early part of an investigation still unfolding. david spunt, thank you. for more on how law enforcement officials are responding to this case, we will speak with the national vice president of the fraternal order of police. that's coming up in the next hour. ♪ ♪ >> rich: the idaho murder suspect, bryan kohberger, is set to appear before pennsylvania judge tomorrow where his attorney says kohberger will waive his ex tradition hearings we can quickly be brought idaho to face first-degree murder charges.

as new details emerge on how investigators zeroed in on kohberger as the suspect in the murder of four college students. fox news team coverage, ted williams standing by with analysis. but first to dan springer in moscow, idaho. dan? >> hi, rich. we don't have all the details on what led to the police to arrest bryan kohberger, because that affidavit, that probable cause affidavit, has been sealed and will not be unsealed until kohberger is back in the state of idaho and in front of a judge facing those four counts of first-degree murder. but a police source tells me that dna and a tool called investigative genetic genealogy played a key role in pointing them toward kohberger, who was arrested early friday morning at his parents' home in eastern pennsylvania after being trapped there for four days. we know there was a lot of blood at the scene of the quadruple murders and we also know police bagged the hands of the victims, some of whom had defensive wounds, to preserve any potential dna from the killer. but kohberger didn't have a

criminal record, said his dna profile was not in the federal database. this is where genetic genealogy is used to expand the search and greatly reduce the potential suspects. we spoke with a pioneer in the field whose work has helped police solve 250 cases by analyzing nearly 1 million genetic markers each time. >> and you do that piece by piece by piece. each of us has a unique family tree, a unique set of ancestors, except for our full siblings, so that means if we have enough data, if we have enough cousins, and of matches, we can eventually narrow it down to just one family, and often just one individual. >> the police investigation is not over as they are now trying to answer the question of why. they searched his office on the washington state university campus where he just finished his first term in the criminology phd program. he was also a teaching assistant.

they searched his apartment on campus and police are still getting help from the public with 400 new tips since his arrest. >> the police department believes that the person we have in custody, which would be kohberger, is the one responsible for these crimes. we are still continuing to investigate and certainly we are looking into all aspects, but he has been named as our suspect, and we believe he is the one that is responsible. >> late yesterday, kohberger's family broke the silence with a statement issued to his public defender in pennsylvania. it says, "we have fully cooperated with law enforcement agencies in an attempt to seek the truth and promote his presumption of innocence, rather than judge unknown facts and make erroneous assumptions, and we will continue to let the legal process unfold. as a family, we will love and support our son and brother." kohberger plans on waiving extradition, as you mention, rich, and that means he could be flown back to the state of idaho as early as tomorrow night and could perhaps be in front of a

judge here in latah county wednesday. rich? >> rich: dan springer, thank you. molly? >> molly: we bring now ted williams, a former detective and a fox news contributor. thank you for your work there on the ground. your continued investigative abilities, as well as your interesting background, of course -- you have explained as a defense attorney. in this case, it looks like we are just beginning to see the suspect in this case gives insight and that he will be mounting a robust defense in this case. i want to get your thoughts on what his strategy might be, particularly if there is dna at the scene. >> well, molly, good morning, and happy new year to you. let me tell you what i suspect the defense is going to do here. they are going to want to go into the house over my shoulder, the crime scene. they are going to want to do

their own forensic investigation of the crime scene. this house over my shoulder was once considered a party house, therefore you would have a lot of students in there. if kohberger was one of the students, well, the defense are going to say his dna would currently be there. we do know also that the defense will also be concerned about the contamination of the crime scene, because we know that the next day when students awaken from the second and first floor, they called their friends over, who came into that house, prior to law enforcement actually getting there. the defense in this case is going to be that it wasn't their man, i'm sure, and that yes, his dna may be in there, but he is not a killer. i can tell you, molly, we understand -- and dan springer

has just reported -- that they were some defensive wounds, meaning that some of these victims fought back. if kohberger's skin is found under the fingernails of any of these victims, it's over. >> molly: ted, there is also this potential other crime screen, the white hyundai elantra to ask the community to help look for. they made that call on december 7th and we know the suspect stayed in the area after the date of the murders, which means that the vehicle may have very little been in the area and ultimately was found, as well, all the way back across the country where he was arrested at his parents' residence. did anyone in the family make a call related to that car? did kohberger himself said he had a white elantra? just talk about what this vehicle could mean as far as the case going forward. >> molly, it has been reported, according to the daily news,

that the father of kohberger flew out here to moscow, idaho, and drove back across country in that white elantra, hyundai. i found it troubling that, initially, the authorities knew about this white vehicle two days after the crimes were committed, and they didn't put out anything until december the 7th. i thought they should have put out information earlier. but that vehicle, while it may very well be back in pennsylvania, the authorities have confiscated that vehicle. they are doing a scrap of that vehicle, and that vehicle, i can assure you, molly, may very well give them a lot of information, because there was a great deal of blood at this crime scene over my shoulder, and quite naturally he would have been covered in blood. i would have to believe that,

when he got home, he probably took a shower. at his home, they are definitely disconnecting the drainpipes to try to find out if there is any blood there. evidence, i should say. i believe that once he gets back here they will try to get a body search warrant, and that is that they want to look over kohberger's complete body to try and determine if there are any wounds about the body that they can associate with this crime. >> molly: ted williams, thank you so very much for your insight on this and for your continued hard work out there on the scene in idaho. we really appreciate it. thanks. >> my pleasure. >> molly: rich? >> rich: just a terrible, terrible crime scene, molly. we have jonathan gilliam ahead to discuss this as it takes some time to really unwind and figure out what happened. >> molly: absolutely. as far as we know, investigators have yet to find the murder weapon, so a lot of unanswered

questions. speak to members of congress returned to washington for the start of a new term, but will house republican leader kevin mccarthy have the votes te the speaker's gavel? republican congressman brad wenstrup ahead to preview tomorrow's pivotal day on capitol hill, plus president biden set to return to the white house after spending his virgin islands vacation with his family, discussing whether or not to run for reelection. could the president move of his announcement to sideline younger democratic hopefuls from challenging him? ♪ ♪ >> have you talked to your family about running for reelection, sir? >> is that an election coming up? i didn't know that.okay ♪ ♪ together we support immune function. supply fuel for immune cells and sustain tissue health. ensure with twenty-five vitamins and minerals, and ensure complete with thirty grams of protein.

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>> i will be voting for kevin mccarthy tomorrow. he's part of the problem, not part of the solution. >> listen 24 hours before republicans take control of the house. first up, the party confronts a contentious fight over the speakership. leader kevin mccarthy faces strong opposition from some g.o.p. lawmakers who warned electing him a speaker would be a "continuation of past and

ongoing republican failures." let's bring an ohio republican congressman brad wenstrup, member of the house ways and means committee. thank you for joining us this afternoon. one of the producers on capitol hill spoke very briefly with lita mccarthy this morning. he asked him about all of this. mccarthy maintains that recently he has had some votes moved to yes. do you think that lita mccarthy has enough votes to become speaker tomorrow? >> he's probably doing the accounting more than i am. some say they want to vote for him. it even more members so they won't vote for anybody but catherine, kevin mccarthy, so that puts him in a stalemate before even get going. especially when we are in the majority, not everybody will be on the same page. that's the way it is when you have a majority. we should be grateful to have a majority. personally, i adhere to the majority. when it comes to electing a speaker, and our conference for

kevin mccarthy it was overwhelming, and i'm going to support kevin. that is pretty much the rule that i have. if i have some kind of disagreement from within, i'm going to handle that within. recently there was a public letter put out. within that letter there's really not a solution to get to 218 for anybody. so i think that voters at home see things a lot differently right now, because in my constituency they want us to move on, elect the speaker, and get to work. when you vote for somebody for congress, in particular, you're voting for them to be part of the team, a team that has policies, policies we have worked on and made very public in the last year. so i don't think it's going to play very well if we continue to have a delay in electing a speaker, because it is delaying us moving forward with the policies that the american voters voted for. so some may have an echo chamber to where this may sound great, to try and take down the speaker. well, that's fine, but i don't

think it's what the average republican voter wants to see. >> rich: do you think they're not being part of the team here? you only have a margin of just a few republican votes didn't maintain the majority in the house. what about when it comes to fights over government funding and a number of other issues? do republicans risk looking disorganized as democrats sort of sit back and eat their popcorn? >> well, hopefully we will rally as a team. we know what we have to do, and we all have the same basic values as we have run for office. we run on the same types of policies. we just have to find ourselves in a way to get to where we need to be, and i think we can, because we have really spent the last year working on task forces where every member was able to participate, and to give their input. i think that we have things in place to start moving some bills and policies forward. but this debate over the speaker, i think, needs to be

put to rest, and let's go with what the overwhelming majority of the members of our conference have said they want, and that is for kevin mccarthy to be the speaker. >> rich: end of the issues you focused on was the origins of covid-19 and the government funding that may have gone to research in china. elon musk said he will release what he calls the "fauci files" this week. a number of republicans on capitol hill have said they are going to request fauci appear and testify. he said he's open to it. what would you ask dr. anthony fauci? what would you hope to learn for him in this coming congress? >> well, i have a lot of questions for anthony fauci. who said he is open to appearing before us, that if you look at his deposition that he recently had with the attorney general from louisiana and missouri, 174 times he said he didn't recall. he didn't recall emails that he sent, he didn't recall public statements that he noted. this, during the pandemic that he was supposed to be trying to

manage, a pandemic that was affecting the entire globe and killed so many people, and he doesn't recall. i'm focusing on the origins of covid, and certainly anthony fauci is a big part of this. he was all in favor of chimeric creations, or a gain-of-function research, going back to 2012. the nih was funding this type of research into china, et cetera. we know that china has an association with the wuhan institute of virology as well as their bio weapons program, and they worked specifically in some cases with coronaviruses. so there are so many questions we have to have answered. it's very multifaceted. but we know this capability to create a virus is out there. there's an article in 2015 from north carolina, and our own state department has said that china has been looking into a sense of bio weapons going back

as far as 2005. we have oversight over the intelligence community, and we want to know why the intelligence community is walking away from some of the evidence that is out there, and why they are not answering a lot of our questions. so we may have two use subpoena power, and fauci may be one person we don't have to subpoena, that he will be under oath. >> rich: congressman brad wenstrup, thank you for joining us this afternoon. >> thank you. >> rich: molly? >> molly: but i family has wrapped up a holiday away in sts over possible reelection bid, despite pulling efforts. jacqui heinrich is live in st. croix. jacqui, when can we expect this? >> is anyone's guess at this point, molly. we do know that the president has departed the island. we watched air force one take off straight over that way just a little while ago, and we do know also that he spent his

vacation conferring with family members about his 2024 reelection plan, whether they are to run again or not. the president, though, do not appear poised to make any sort of an announcement when asked on new year's eve what his message is to the american people for 2023. >> optimism. i've never been more optimistic about america in my whole career. you know, we have been through so much, so much difficulty. the pandemic, a whole range of things. and look how the american people thought back and got up. >> but politico reports those in the president's circle believe there is a strong and growing likelihood that he will run again, and that announcement could potentially come earlier than expected, possibly as soon as mid-february around the expected date of the state of union. and that tracks with whipped biden's chief of staff said earlier last month. already the administration is trying to set the 2023 tone, touting progress with one of its

biggest challenges, the economy. officials circulated a memo framing the uss position better than other major economies with solid growth, a resilient labor market, moderating inflation, and more cost savings on things like prescription drugs coming up this month. but republicans aren't moved. >> what we saw it as an administration push a story that inflation was temporary and transitory. it was anything but. the reason is because over the last two years here in washington, d.c. not only the spending, but the spending we have seen under the biden administration. >> a poll show two-thirds of americans would prefer biden not run again, but there are no democratic hopefuls standing in his way. >> i'm not interested. i am very excited for pres president biden to run for reelection and we are going to support him. >> the president has not laid

out a clear agenda yet for the second half of this term, but we know he is going to be highlighting bipartisanship beginning with a trip to kentucky this week where he will tout investments from the infrastructure law that he signed last year, molly. >> molly: jacqui, thank you so much for your reporting over the holidays. we really appreciate it. a chance to stare at the ocean for a minute. we will see. suspense. >> rich: i know. and if it's not the president, who is going to be? that's a tough one. they've got to have someone who would actually run and challenge the president step in if he decides not to run. >> molly: we have a lot of guests today. >> rich: we have richie fowler and jason chaffetz coming up soon. in the meantime, a brutal siege on the mexican border prison. ten guards among the dead, and dozens of convicts wild in the wind. how does this violence so close to the border affect our own border security? how will the supreme court ruled next month whether to keep title 42?

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speak of the mexican national guard says the skulls were flagged going through a security checkpoint yesterday. the packages coming from a region of the country infamous for its cartel violence and we don't know anything about who the skulls belong to, such as their age or their gender. >> rich: armed gunmen attack a mexican state prison across the border from el paso, texas. state officials reported ten guards and four inmates died during yesterday's incident. more than a dozen were entered in 24 inmates escaped. police say they are still

looking for who was behind the attack. national border patrol counsel vice president art del cueto shares his thoughts in a moment, but first matt finn has the latest from the border. he spent a good chunk of the holiday season down there. what is your experience like? >> when you are there in person, rich, you can clearly see the mental and physical trauma these migrants are suffering after making a life-threatening track to the united states. over and over again we see families with their young children who are clearly in need of food and water and medical care, and on their journeys here, migrants carry their young children and put those children's lives in all types of danger and extreme conditions. ultimately, carrying those young children across the waters of the rio grande river. some migrants have told us graphic stories of being robbed and molested on their journeys here. others have told us about the horrors of walking through thick jungles with no shelter, facing the threat of snakes and wild animals. for some, after those horrific

journeys here, once they arrive, they have no money in their pocket and perhaps no guarantee of work or a roof over their head. arizona republican congresswoman debbie lesko has introduced six immigration bills calling for the biden administration to fix the root causes of this border crisis. >> it's an absolute mess. it's a humanitarian mess for the illegal immigrants that are coming here. girls are getting raped, girls are being sold into sex slavery. i talked to the inspector general of dhs and they said they are not properly vetting where these kids are going. >> despite the humanitarian disaster on the border and in towns like el paso, the white house insists the president is working on the immigration crisis. >> the president has done the work to deal with what we are seeing at the border, since day one. >> and the biden administration says republicans have voted against its proposals to secure

the border. rich? >> rich: matt finn live for us this afternoon. thanks very much. molly? >> molly: for more on this, let's bring a national put down my order patrol counsel art del cueto. thanks for starting a new year off with us on this very important topic. we just heard matt finn's reporting and he talked about what these migrants go through, and their difficulties. we know that the border patrol is facing difficulties and it's taking an emotional toll on them. to hear from the white house, they say the president has done the work on this issue. here we are at the beginning of a new year, 2023. what do you anticipate from the white house now to >> you know, just by hearing them say they've done their work, i would like to ask what work they actually think they've done. all they have done is made the cartels and tha lot smaller by removing agents and putting them in administrative roles, and pretty much making them process and process faster. what that has done is it has

made the criminal element empowered to do more, because now they are bringing in more drugs, creating more chaos, taking home more money, so they are getting even richer. this administration has failed horribly, and unfortunately i anticipate it to get much worse, because it has emboldened the criminals and it's making the cartels even more richer. >> molly: one of the things we will keep talking about, at least until the end of february, his title 42, that the supreme court is going to take a look at. i want your thoughts on that. we have one call about how it was utilized under the bed and demonstration, not fully, but we'll see what ultimately happens with title 42. what do you think is going happen? >> once it goes away, if it goes away, it's going to be complete chaos. i will tell you, though it's been something minor, it is something that has helped. is able to direct certain individuals in certain areas to send people back, but ultimately

what needs to be done is they need to bring back policies that work. remain in mexico was huge thing, and it helps, and that alone deters individuals from coming across while at the same time putting more agents on the line. that way they can catch these drug smugglers and the drugs coming in. but if we continue going the way we are going, as i said, the drug cartels will get a lot richer, the criminals will have emboldened themselves more, and we will have complete disregard for any laws or respect for this country at all. not just now, but in the future. stealing money talk about processing, there are other interesting numbers, as well. one of them is the alternative to detention number that has vastly expanded. in 2014, just 23,000 people. today at 321,000. a little perspective on that, the programs come the technologies used to track and check in with migrants released in the u.s. as they go through the immigration process, which we know at this point can take years. your thoughts on the expanse of those numbers and what this

means for law enforcement as they try to keep track of people coming into the country? >> sometimes you see these individuals, they don't give you a right address. you don't know where they are at. this is what i would ask the administration. during the obama administration, when we had the huge number of unaccompanied juveniles entering the country and release into the united states, they were juveniles at the time. those individuals are now adults. has anyone kept track of them and asked them where they are at? none of them will have an answer. >> molly: another thing is this absolutely enormous backdrop. the numbers are historic but there's already an enormous backdrop. with 800,000 people waiting on hearings, just to begin and get this process going, and ultimately it could take 4.3 years for them to get answers that they went through this terrible journey on to begin to get. where do we even begin to make this work for the migrants and also the law enforcement

officials? it could be many years. >> you have to stop the flow now and start moving forward and getting things done right, because a lot of these individuals claiming asylum, they don't have true asylum claims. so a lot of them won't even show up to court. then the other factors, the got-aways. those whose criminal backgrounds are so extensive that they are going the extra step not to get detected. they don't know the real number of those individuals, as well. it's huge domino effect. the individuals coming across, those who don't have asylum, the got-aways, the drugs, it's complete chaos and it's brought on because of the madness this administration has created. >> molly: it is so big and so broad, the challenge is underway. thank you so much for joining us and giving us a baseline as we begin 2023 and clearly outline some of those challenges. >> rich: plenty of them. and to look at what comes next, there is the supreme court. was he a administrations plan? we don't know yet when it comes to title 42 potential ending, and congress working on bipartisan negotiations, but the

chances don't seem great. well, the war in ukraine is intensifying. ukrainian officials say more than 1400 russians were killed just over the holiday weekend. we go live on the ground there. plus, thousands gathered to say goodbye to pope emeritus benedict the 16th. we are live in rome, next. to you, it may just be an elevator. here goes nothing. but for a young homeowner becoming their parents, it's a learning opportunity. come on in. [ chuckles ] the more, the merrier. paris, huh? bonjour! we got any out-of-towners in the elevator? tom. it is not easy. 10th floor, huh? must be a heck of a view. okay, see how everyone else is facing this way? progressive can't save you from becoming your parents, but we can save you money when you bundle home and auto with us. okay, that was terrible. okay, let's hang back. we're gonna try that again.

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pay their respects? >> well, as of about an hour and a half ago, about 60,000 people so far have gone through the vatican to view the body that people have been lining up all day long to pay their last respects to pope benedict xvi, who will be remembered more as a professor than a pastor, though it's an intense passion and love for the faith. early this morning, a solemn procession of clergy and household staff accompanied benedict's body as it was moved from the matter ecclesia monastery in the vatican gardens to st. peter's basilica. and a queue file past the body of pope benedict as he lay under the altar of the basilica. dressed in a red to red cape and a miter, that of the bishops. he died saturday and will be laid to rest thursday in the crypt below the basilica with other popes, and it becomes another historical moment as pope francis is set to become the first pontiff in the modern

era to preside as pope over the funeral of his predecessor. people waiting in line have come from all over europe and the world, and somewhere in rome already on planned christmas vacations, but all really showing reverence. >> he was in his heart also a faithful follower of christ and determined to stay faithful to his commitment as a humble follower of christ, and to let that be the first driving force. >> the vatican is now closed, but people will have more opportunities to pay their last respects to pope emeritus benedict tomorrow and wednesday ahead of thursday's funeral, which will be held in st. peter's square. back to you. >> rich: thank you. molly? >> molly: all three major u.s. indices saw their worst year, and no end in sight.

record inflation, and a study shows just how much the average family lost in 2022. we will see. will he see the economy bounce back in 20 tray three? much to discuss. a small business expert joins us next. ♪ ♪ fe... doesn't stop for diabetes. be ready for every moment, with glucerna. it's the number one doctor recommended brand that is scientifically designed to help manage your blood sugar. live every moment. glucerna. oh, what's this? the sofia vergara collection at america's best? wow, amazing styles and unbelievable prices? now that's quite the duo. get two pairs of sofia vergara frames plus a free exam for $89.95 for a limited time at america's best.

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♪ ♪ >> molly: it was certainly not quiet during cnn's new year's eve coverage as the network missed the stroke of midnight in new orleans, and for all its viewers and central time. take a look. ♪ ♪ ♪ ♪ >> molly: the network only counting down to midnight on eastern standard time. meanwhile, the new year's celebration all around the world it helps her a happy, healthy 2023 it's not like he names the wrong beauty queen. >> rich: sometimes you get a little distracted when having fun. i barely made new year's new year's on east coast time, forget about central. >> molly: i like to pick a country, like ireland, and raise a glass at 7:00 p.m., or pick a country that's not even your

heritage, just when it lets you go to bed before midnight. [laughs] >> rich: exactly. started in australia. u.s. stocks have been the worst year since 2008 as average family lost $4,000 to $5,000 in real take-home pay in 2022 amid high inflation. that's according to the heritage foundation. the dow down 9% compared to the previous year. the s&p 500 fell 25% and the nasdaq dropped a whopping 35%. so what cause markets to sputter, and what can we expect in 2023? let's bring in the president of the group and a small business expert. thanks for joining us this afternoon. what do you expect for markets coming up this year, especially when you have such dramatic losses over the past year? >> thanks for having me on. i really don't think markets are anywhere near their low point, and i hate to be the bearer of bad news as we head into the new year, but i do think we are

going to be seeing at least the next six months of some really tough and challenging economic times. when i talked to my clients, they are suffering the exact same things that you have been reporting about now for months, which is higher-than-expected and manageable inflation, difficulty finding employees, and the other thing that's going to be a whopper for a lot of businesses, particularly small companies i serve, interest rates. they have ticked up significantly and i think we will see the impact of that in 2023. >> rich: that has a lot to do when you want to borrow money to do it to expand your business, a lot more expensive than it was a year ago. there's also a headline saying companies are offering big raises now to retain their employees, to keep up with inflation. by the way, that feeds back into inflation if people are making more money trying to keep up with inflation. what does that mean for small businesses and companies trying to keep up? >> a huge challenge for small businesses. as you know, a lot of small

businesses can't keep up with a lot of big companies offering higher wages. so they have to be more nimble than that. but never underestimate the power of the american entrepreneur, rich. my clients that are small companies, retailers, restaurant tours, small mom-and-pop businesses, they find different ways to compensate their employees. they offer more flexibility, working for small business does come with its advantages. but they're actually going to be challenged in 2023 trying to meet some of these pay increases that a lot of employees are going to need to keep up with inflation. >> rich: this comes as the minimum wage increases in many places. take a look here, montana is a little estate with $9.95 an hour, washington state the highest with $15.74 an hour. a quick look around the country. when you look at that dynamic, what other dynamics to small businesses face, and what

challenges do they face as they head into this year? >> people underestimate the impact that a minimum wage increase has on a business' overall expenses. by the way, i am and supported to handle that at the local level rather than the national level. why should the business pay the same minimum wage in kentucky versus california? regardless, just think about it. if you are running a business and your local minimum wage because of a dollar or a dollar $0.50 an hour, that has a knockoff effect on all your wages. because the employees at higher levels want to make sure they are still making the relative amount they were making versus the entry-level people making minimum wage, as well. so when a lot of people argue for minimum wage, they say it's going to supply that kind of compensation for lower income employees, which is fine, and i get that, but i think people have to realize that it has an overall impact on entire business' overhead and puts a lot of pressure on people to raise prices, maybe cut labor,

invest in more technology. it's a lot of decisions businesses will have to make this year. >> rich: and they have been major changes structurally in the u.s. economy since the pandemic, and after the pandemic you have businesses closing down town, opening up outside of downtown areas. here are smaller businesses that are in the core downtown areas. are they seeing a return? do you think this is a permanent shift outside the downtown? what can small business owners expect as they look to this changing landscape? >> i think you have to be really realistic. i live in downtown philadelphia. i walk around the city all the time. the numbers in philadelphia are that the back to office workers are back about 80% compared to pre-pandemic. you know what the reality is. more people are going to be working from home. you are not going to have the same amount of traffic you had before 2020. if you are operating a deli or a dry cleaner or a newsstand or really relying on that lunchtime crowd, you have to prepare yourself for the fact that your

revenues are never going to be able to catch up to where they were before 2020. the work from home trend is permanent and it's here to stay, and to your question, a lot of these small businesses in downtown areas are going to have to figure out a different way of doing business. it might put some of them out of business permanently. >> rich: thanks for joining us in this early part of 2023. much appreciated. >> challenging it will be. thanks, rich. take care. >> rich: plenty of challenges, molly. >> molly: he really nailed it. the pockets of good news out there but thinks permanently change for a lot of people, particularly small businesses. such a different circumstance than some of t the big corporations. >> rich: and there are plenty of cities trying to bring more residents downtown to try to fill this empty office space. so there's a lot of changing ongoing and businesses have to deal with it. >> molly: trying to get people to come back, but not everybody wants to. >> rich: exactly. >> molly: a fox news alert, new details emerging into the idaho murder suspects, bryan kohberger, who lived just a couple minutes from the

off-campus home where these college students were murdered. so how are police finally able to crack the case after nearly seven weeks of investigating? we will take you live to the idaho crime scene coming up as fox news rolls on. ♪ ♪ (vo) red lobster's finer points of fun dining: the correct answer to starter or entree is who gives a shrimp, when you get both. introducing new dockside duos. get an individual-size starter and entree for just $15.99.

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>> rich: a fox news alert, disturbing new information about the suspect in the murders of four college students in idaho, and it comes out of his court appearance tomorrow. hello, everyone come and welcome back to "fox news live." i'm rich edson. >> molly: and i'm molly line. his lawyer said he will waive extradition tomorrow at a court hearing in pennsylvania. the criminology grad student was arrested in scranton on friday and he reportedly went to great lengths to avoid getting caught, even wearing gloves in public since the killings to hide his fingerprints. there also reports that he

stalked his victims for a week before the stabbing spree in noveer