there? we will check back in with matt later in the hour. >> we are following another big story here at home. the federal reserve is making a large and controversial move in the u.s. economy. we are live in washington. >> the feds do something to try to spur economic growth and bring the unemployment rate down. this went further than a lot of people expected. the market liked what happened yesterday. the dow shot up over 200 points

juiced over this big announcement. the fed will continue printing more money by bobbling up 40 billion month in mortgage bonds with no end in sight. the idea is to drive mortgage rates even lower that could lead to spending and help unemployment as the president makes his economic pitch. >> we saved the american auto industry on the brink of going under. manufacturing is start to go come back in the united states. but so much more work to do. there are still folks out there hurting. >> a lot of people needs jobs. it's impossible to ignore the implications for the presidential race. mitt romney says the fed's actions proves the white house economic policies has been a

failure. >> what bernanke is going what the president is saying is wrong. the president is saying the economy is making progress coming back. bernanke is saying no it's not. i have to print more money. i don't think what he is doing is going to get the economy going. >> even with all of the new money sloshing around the economy as a result of the actions. unemployment at 8.1 percent shouldn't drop below 7.6 percent according to the feds through all of next year. now it is time for your 5@5:00. the other top stories making news for you at this hour. the u.s. and more than 2 dozen allies planning maneuvers in and around the persian gulf next week to counter the threat of anti ship mines. the exercise not about a specific country or a direct response to iran's threat to

shut down the strait which is located at the mouth of the gulf. it is the path of 20 percent of the word's oil. presidential nominee mitt romney will start getting intelligence briefings from the obama administration within days. he is almost done going through the security clearance process. those briefings are standard for presidential candidates after they are nominated after the convention. house law americas taking steps for a government shut down. >> the joint resolution is passed. the $1.047 trillion spending bill will keep the government open for another six months. john boehner urging president obama and democrats to work with the gop to avoid the so-called fiscal cliff. >> paul ryan returned to capitol hill for the first time since

being picked to vote for the bill. activists are paining an effort to stop the most cont ver that will part of the immigration law there from taking effect. they filed an emergency junction. it encourages racial profiling. it upheld the provision in june while striking down other parts of the law. mohammed ali is making his site outside of the ring. he received the liberty medal for his work on humanitarian causes. he established a research certainty for parkinson's disease. ally did not speak but stood with his family anyway to the crowd. that is your 5@5:00.

time now for the first degree weather update. janice dean has it for us. cooling down maybe? >> yes. good news it's friday. we need good news today. don't we, ladies? a cold fronth that leaves cooler more refreshing temperatures and much needed moisture across the area. heyed of this front a little warm and sticky but it will get to you. the radar ahead of the front that is where we are eeing moisture from texas to the great lakes. in between dry air-conditions for most of us. this is trap col storm nadine. not going to effect the u.s. or bermuda but could effect them in the next couple days. still very active. the rest of the country looks good. if you are traveling today

boston, dallas, los angeles looking pretty good. laud des? >> we will take it. >> janice dean thanks a lot. 10 minutes to the top of the hour a strong warning the protests in the middle east are much more than air spray. >> there's no sense there is anybody on the bridge of the ship. >> tony schafer says the warnings from his sources on the ground are much stronger. he is next. >> a couple of school kids kicked out of wal-mart on the victims of 9-11.

>> 14 at the top of the hour. 350,000 kids still out of school as the chicago teacher's strike drags on for a 5th day. bothed sides are optimistic they are close to a deal. >> she violated federal law by campaigning for president obama in an official capacity. the white house says there is no need to punish kathleen sib b l sebelius. taxpayers were reimbursed for the trip. those abses are enough. >> patti ann? >> thainthser. now to stories you can bank on this morning. get ready to shell out more

money to fly. a look at which airlines might be hiking ticket prices. it will cost you more money. $10 on 10 percent of the flights. they are typically met by others in the industry. since the beginning of the year there has been five successful industry fair hikes. since you are the grim reaper many cannot afford prescriptions. >> increasing number are not filling them because of the medications they can't afford to. results show that 45 percent of people under age 65 who don't have insurance coverage they do not fulfill the prescription because of the cost.

additionally 84 percent say they had taken some kind of action like spending less money on groceries or paying another bill in order to pay for their medication. more than half are going to the doctor they are even cutting pills in half to save money and make the prescription last longer. >> that is really not good. >> the apple iphone now on sale. tech gurus happy for that? >> this is the cure for all of the evils in the world. you can preorder starting now. as customers flock on-line to do so it is on the way to becoming the fastest selling gadget in history. analysts expect 10 million to sell by the end of september. as many as 58 million by the end of the year that could generate 36 billion in sales for apple. the iphone is the biggest money maker. 70 percent of the annual revenue. this new iphone by most estimates really has all of the bells and wileses users have been waiting for, twice the speed, thinnest on the market

better battery. i don't know the community is really bull lish. >> you should never buy the f t first version of anything they put out. >> i don't even have an iphone, do you? >> i do not. >> lauren simonetti fox business network. thanks as always. >> i have an iphone. >> she is on top of it. >> what model? >> i don't know what model. it is just an iphone. >> it is 18 after the top of the hour. coming up next, where was the intelligence on the attack of the libyan embassy? tony schafer says a shift in policy could be to blame. they are supposed to uphold the law so why are some employees at the department of justice on the job without background checks? stay tuned.

>> it's 21 after the hour. they are closing the book on controversial program. outrage for having taxpayers foot the bill for illegals to take on-line courses in immigrant and labor rights for $2,500 tuition. that's thousands less than what legal residents would pay. ucla said professors started it on their own. first the tsa now the justice department failed to meet the requirements of background checks on new hires. it found only 31 percent for the security clear rense rances. >> i think they sense weakness. they have seen the governments of libya and egypt failed to provide protection for diplomats and embassies.

that was replicated today in yemen because they were on the gates to the embassy. i think our personnel are at risk not just our official diplomats private americans but tourists in the region. we are in a dangerous period. there is no sense that there is anybody on the bridge of the ship of spades. >> a strong warning from ambassador john bolton. our next guest agrees. intelligence officers on the ground to the middle east have been put in. he is professor for advanced study. i want to talk more about what bolton said. perceived or a sense of weakness on the part of the administration not only putting our diplomats but americans at risk. >> the security is not working by the evidence before us.

you have to have strong security telling what's over the horizon around you. incredible intelligence warnings possibly from the libyans as well. i think we are going to find more in the next few days about what be know and when we knew it. larger elements of these groups are trying to strike out and get past where they are at. libyans base of operations are going to europe and frankly in the united states. now we have to be doubly vigilant about where they are going to strike american targets here and overseas. we have to be more vigilant go t about the fact we have groups globally. >> we have four americans dead christopher stevens information management officer sean smith, and former navy seals two of them glen daughterty and tyrone wood. we know daughterty was there trying to find weapons. talk to me about the weapons

that are missing? >> pal dupart of the deal we have been continuing to find armed groups that hopefully are on our side. we are arming people we don't fully understand at the same time they are not doing the hard intelligence operations to pen straight these groups. more importantly early warning of larger planned attacks globally. if you are not doing these hard things, you are not doing your job. what i am hearing are intelligence officers her being told sit back and play nice. if you are playing nice constantly not trying to rile anything up or do anything that will get you embarrassed you are not doing your job. you have to get in these groups you have to take risk. risk is critical. ralph peterson yesterday several said it we have to get better human intelligence or you will be put off guard again.

>> we could have put them into the hands of people not. >> one of the concerns is as they go back to do the investigation the fbi is there now, one of the greatest fears is where the weapons that came from that killed these folks. >> thank you for joining us. we appreciate it. >> the time now patti ann what's coming up. >> there is one way heather to avoid the possible lines for the iphone 5. can you say i rob? private eyes may be watching you but one state is putting up security cameras to watch other cameras. really?

>> welcome back to fox and friends first. i am heather childers. >> i am patti ann browne. it is 30 minutes after the hour. cairo egypt violent anti-american protests are now in their 4th day and they are spreading across the milled east. >> we have learned four people now raised for the disturbing attacks in libya that killed four americans including u.s. ambassador christopher stevens. gregg palkot is live for us in london with the latest.

>> heather and patti ann we have been seeing violence protests. this is the day of holy prayer after they go to the mosques. we are girding for trouble through out the day. first we are looking at cairo. showing some skirmishing some clashes between rioters and police and rocks being thrown tear gas being shot back. a large blockade pushing out a couple hundred yards from the embassy to not have a repeat of tuesday's performance in which the walls surrounding the testers flags taken down. the center of cairo have failed. there's a million man march proposed by the muslim brotherhood. we will see how that develops during the day. over in yemen what we are

hearing about is police pushing away also from the u.s. embassy from the capital of yemen. that was the scene of yet another assault on a u.s. embassy with protestors scaling the walls and flashing down gates. they are getting reports of more u.s. marines arriving to bolster the defenses there. we are trying to confirm that. rierd there is in egypt upset about the film. they are critical of the muslim prophet mohammed. over in libya as you noted evidence over the terror manhunt there related to the ransacking the killing of the u.s. ambassador and three others both libya and u.s. investigative agencies working hard to track to down those involved thought to be involved with the terrorists.

>> now to a look at who is talking in the family of chris stevens. the ambassador to libya is talking this morning. >> speaking to robert steven's stepfather speaking about the security and protection his stepson had. >> he always had good security. it happens in this particular job when he went to benghazi to participate in the opening of a cultural center that it was under staffed and he didn't have as much security protection he had when he was in benghazi before. certainly not as much as he had in the embassy of tripoly. that's what it was. he knew what was there. i am a little surprised that he apparently was caught so

unawares and didn't think of the possibilities of what piet happen. >> he also spoke about whether stevens was ever worried about his safety. he said he never expressed or showed any sense of apprehension or concern. >> we are following another major story at home. federal reserve announcing an aggressive effort to stimulate the economy. it is not sitting well with everybody. >> doug luzader is live with these details. >> maybe the third time is a charm here. the defense thinks this action is going to do two things spur economic growth and lower unemployment. the fed starts buying up mortgage bonds and a lot of them to the tune of 40 billion a month. that means they are printing money. what that will do will make it easier for potential home buyers

to more money which should lead to higher value which could lead to more spending which could lead to more jobs. that could help president obama as he tries to make the best case he can in a weak economy. >> we saved the american economy in the brink of going under. manufacturing is starting to come back here in the united states. but we have so much more work to do. there are still people out there hurting. >> the election is less than two months away. moit room knmitt romney stakingh on economic expertise says the fed's decision speaks volumes about the president. >> what the president is saying is wrong the economy is making progress. bernanke saying no it is not. i have to print more money. i don't think what bernanke is doing is going to get the econ mow going.

>> there are risks. first-time homebuyers could be shut out of the market. all of the additional cash floating out there could create more inflation. we are already seeing this morning oil prices have gone up. that may be a response to the fed's actions. >> doug luzader in washington, thanks. >> the economy and the future still the focus on the campaign world mitt romney and obama believe they will be able to turn the economy around. >> piecer doocy has more on what the candidates are saying. good morning, peter. >> good morning, patti ann. the focus on foreign policy on the campaign trail is starting to fade away a little bit because the candidates are once again hammering each other on the economy. president obama is saying he knows things aren't great right now. >> absolutely. this is going to be a close

race. i am running in an environment where the economy isn't where it needs to be. i am working my tail off trying to present a clear choice to the american people. one thing i hope i am able to communicate from this campaign is what my values are, what my plan is. a possible endorsement can be found in a fox news poll taken this week. 44 percent of likely voters say the economy is in a recession but doing better. 18 percent of the poll answered they think the recession is over and 36 percent think we are in a recession but things could get worse. mitt romney is in the camp of both who thinks if the president is re-elected things are going to get worse. consequences of both are severe. if you keep getting on the path

we are gone. >> just about a half hour ago romney campaign launched a brand new tool where you go on-line to punch in your safe to see which jobs plan will benefit your community more than you have the option of e-mailing or facebooking or tweeting the results with your friends. this is just the latest way the campaign is trying to rally support on-line. >> patti ann and heather. >> thank you very much. peter doocy live from washington. >> some of the stories making headlines the republican controlled house taking steps to keep the government open for another six months. >> the yeas are 329 the nays are 91. joint resolution is passed. >> the spending bill will avert a government shut down.

boehner urging president obama and democrats to work with the gop to avoid the so-called fiscal cliff. congressman paul ryan returned to capitol hill for the first time since being picked by romney's running mate to vote for the bill. the chilling 911 calls fromm th shooting in new jersey. >> there has been a shooting here. they are shooting. >> where are they shooting? >> >> store employees went into the store on august 31st and shot

two co-workers before killing himself. >> florida elementary school kids wanted to honor the victims of 911. instead someone called the cops. ♪ >> 75 choir students from coconut palm elementary school were supposed to sing a tribute at a local wal-mart on 9-11. when they showed up the manager refused to let them into the store. they moved the tribute into the parking lot that's when the managers called the cops saying it was a flash mob situation. >> i started crying because i didn't think it was right. i wanted to honor the people who lost their lives. >> wal-mart since apologized to the choir saying it was a miscommunication and they plan to invite the kids back to the store. >> this is a waste of money. prince georges county in maryland getting cameras to

wat watch other cameras. they cost between 30 and 100,000 dollars each. police insist the cameras are not the case of big brother but are for keeping drivers safe and making sure camera vandals are caught. >> it is time for your first degree weather update with janice dean. >> we are dealing with a little bit of a cold front that is goings to bring much wanted moisture. >> no severe weather expected today. this is going to push eastward through the eastern third of the country. drought monitor last week not great but there is a little bit of improvement this week. you can see from the extreme exceptional across the midwest and central plains not great

obviously but a little improvement. 77 chicago 86 memphis. 83 atlanta moving eastward bringing nicer temperatures if you like the wall you are going to enjoy it. we could see a few delays in dallas some of the showers and thunderstorms a pretty good day and forecast as we head into the weekend. >> looks good to me. >> the time is 42 after the top of the hour. >> one was food chain says obama care is not so finger licking good. diane mess doe breaks down the latest warning from kfc.

>> 45 after the hour. a group of burglars employed a car into the front of an apple

store in california. they scooped up as many iphones as they can. the cops caught the driver. he has pleaded not guilty. >> the airport plan to go put 30 goats to eat over grown grass and weeds. they will be outside of the security fence and a goat herder will watch over them. >> full-time employees at kfc may soon see their hours slashed and they say it is due to obama care. here to explain is diane macedo. >> they are warning other franchise owners that the affordable care act will cut his profits in half and force him to cut employee hours or pay a fine nor not covering their health insurance. barr who owns 23 stores and covers health insurance for 30 of the 109 employees broke down his math at the international franchise convention in washington this week. with healthcare coverage running

5,000 a year per individual you would have to layout mhalf a million annually for full tierms. it equals half of his oannual prophet he will either cut worker hours replace them with machines or dump them on the health exchange and pay the fine for not insuring them. he adds most low wage workers he would have to cover couldn't take it anyway because even with insurance they would have to pay almost a thousand dollars a year out of pocket. some say once the new law goes into place insurance prices will go down but that is what david has happening in his restaurant. there are many others like him and heather for that matter. interesting to see how this will all play out. >> not so finger licking. >> the time right now 47 after the hour. still ahead rush limb paw going after the main street media over journalists open mike collaboration.

>> the answers that romney would give to any of those questions are irrelevant. the only point they have here is to set up a narrative all day long where romney is the problem. >> is he right? we report you decide. >> people claim the movie is to blame for the center lines in the middle east. some people are saying that. our next guest says that it is just an excuse. pam geller an expert on islam explains next. >> right now let's check in with brian kilmeade on fox and friends. >> like you ladies are on egypt and tunisia and investigation of the murders of our bam ambassador and two others in libya. we have key battle ground states. we have a great lineup congressman mike rogers fbi guy investigating this murder. geraldo rivera, chris wallace and all of the coverage happening in the middle east. mitch albom will be here he has a book called "the timekeeper."

it ends with me out of time in this promo. kind of odd. back in a moment.

>> welcome back. time for another look at whose talking. this morning rush limb paw with strong relackses to members of the mainstream media caught on open mic coordinating questions for governor mitt romney before his news conference. it doesn't matter what romney's answers were. >> so the answers that romney would give to any of those questions are irrelevant. they wouldn't care what they say they don't care what the policies are, they don't care whip. set up a narrative all day long where romney is the problem. romney spoke too soon. romney is unpresidential.

romney is unqualified. that's the objective. that is something that happens every day in the media. every day. they don't have to collaborate although they now say that they do. they all think alike. >> limbaugh saying he does not believe the reporters whaerd are the only ones who collaborate. patted at this ann. >> they are blaming a movement for the up rising. john bolton says not so fast. >> we should not be operating under the belief that the film is the real problem. the problem is religious fanaticism and hatred of the united states that motivates the leaders of the muslim brotherhood in egypt and al qaeda and other terrorists. that's what we have to deal with. >> let's bring in blogger author and stop thezation of america.

>> we don't consider egypt an ally or an enemy. under must be reck it wmubarak considered an ally. how much has it changed with the new government. >> they were key allies for 30 years the first muslim country to sign a peace accord with israel. it is shocking when you go back to june 2009 when obama made an address in cairo he had invited the muslim brotherhood to hear him speak which was shocking at the time because the muslim brotherhood had been banned in egypt for decades. the idea that the president would invite the muslim brotherhood to hear him speak in egypt this is the beginning of what you consider to be his sanctioning and empowering of the muslim brotherhood. they could never have taken over with obamobama's approval. you can see with myself and my

colleagues that the muslim brotherhood would take over. they are hostile to freedom. shirea is the opposite of freedom. >> to be clear he is an islamist a member of the muslim brotherhood. he was democratically elected. this leads to questions whether this air rap spring was this push for democracy not really democracy in the sense that americans view it. >> the only real freedom revolution the only real arab spring or persian spring was in iran. in june, july and august in 2009 iran has been living under the boot since 1979. as you look at the people of the street it was led by women. you don't see women at these jihadists revolutions. they were wearing lipstick and makeup. they weren't entirely closed or absent. even in egypt they are absent from the streets.

>> we have not that much time. a billion dollars actually to give in aid. should that continue? >> of course not. it's important people understand what's going on here. they ha they are sanking the laws under shirea. obama is submitting the united states to that. it is a dangerous trend. >> thank you so much for joining us. 56 minutes after the hour. we will be right back. [ male announcer ] if you believe the mayan calendar,

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>> thank you for watching "fox and friends" first. keep it right here on fox for the continuing coverage of the crisis over seas and we'll bring you all of the breaking details throughout the