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Pull off a coup are on defense trying to explain why they needed to fire former speaker Kevin Mccarthy, and why throwing the house, into chaos is a good thing, congressman by many burchett saying came to mccarthy taking too many days off leading up to government funding deadline. Take off august but decided to take over two more weeks, i feel that is a failure of leadership they are the ones set scheduled speaker, not where buck stops somewhere diverting attention somewhere else i think wrong. Where why are you smarter than jim jordan, 210 plus republicans why are you smarter . I represent my district, brother, why are you splatter than me you are condemning me because i stand up on my own that is what i do. I am telling you out for blood after gates pulled off motion to vacating from former speaker Newt Gingrich saying gates should be be expelled. Why think better to beat two solid conservative continuing resolutions you know why matt gaetz hates Kevin Mccarthy. Was determined to find a way to get to today. Believe me. I think a disgraceful i hope they expel him from conference. Gates could be kicked committees banned with republicans, the big money show cohost Brian Brenberg rest of the hour big news, your reaction. This i am going to keep open mind, but old saying, if you broke it, you bought it think its matt gaetzs deal are they getting changes regular order you know whoever next speaker is, everyone looking down the aisle at gaetz is this your guy if he says question could be scalise, somebody else if things dont change, everything goes the way going, i can only play this once, if you are matt gaetz cant play it again cant go back say now this guy has to go everyone is going to say this is your guy, this is i dont your plan, this is your deal. The question is does have a plan i dont know. I think a great point we will see what do you think . , are , glad you played Newt Gingrich there was a time you could compromise with other side of the aisle bill clinton, right last time a balanced budget in this country was when a republican speaker worked with democratic president we had a surplus this very far, we had welfare reform under good evening rich, how would gingrich do with matt gaetz in Congress Slim minority if if to negotiate with democratic president probably you ousted, matt gaetz doesnt live in reality you have a slim majority in Congress Democrats control senate shouldnt have midterms winable races in pennsylvania georgia nevada arizona a democratic president you have to compromise at this point scalise House Speaker Byron Donalds seems to have momentum if 45 days from now another continuing resolution maybe matt gaetz hays nothing changed get rid of this guy to a chaos to matt gaetz to quote a line from game of thrones chaos is a ladder. Speaker contest on tuesday, have people in to interview then wednesday we will see a vote. We will see a vote, my question how far right are we going to go there is a number to talk about the question what is is going to be different with any one than with Kevin Mccarthy, a lot of people think scalise it seems out there is he any different than Kevin Mccarthy, the rules dont change, you have one person can put forward this vote how is anything going to change i like the idea, that everybody is going to say this is, you know gates, but most say republicans to own to me unfortunately, so many problems fighting about are actually problems that wereborn out of democratic policy not republicans republicans going to own problem because of this. That is i think. Weve got to they are republicans they have to own this collectivity i think wasnt great for republicans bragging with historic conferences under mccarthy got thing done making sure held the line but people at heernlt popping champagne corks saying these are glory days they are not saying that, i think that was part of the problem, even in defending mccarthy, making it sound like they had done something historic that is not true for main main street america. Republicans werent ordnance of the problem the democrats owning all problems right now why are democrats still own the problem crime is spiking across the country because of bad policy, democrat policy you know, inflation was 40year highs because of bad spending, you know democrats spending you think people are questioning that . Who is behind some of this horrible. No, but ultrasonic when talking about crime, but i think republicans now people are going to say i thought the republicans were ones able to fix inflation the ones going to fix economy fix all issues now look like cant fix their own party that to me is a really big problem. Let me just say i dont understand why taking a week to figure out howe who next speaker is. Here is the thing nobody has vacated the biden Administrative State that is still going fum steam ahead without a speaker, republicans cant do anything about that so in my view going through whole thing they ought to be meeting today having to tryouts today the interview today, if they dont why told to go home for the weekend. It is wednesday. Wednesday. Friday. Wednesday, unbelievable. Maybe this is one of the issues. This is stay there work. Think about 2022 midterms all issues, lined up for republicans just as they are now, around inflation, wages, crime, the border immigration, education, you he name it, the right side of every issue barrel got a majority lost the senate, the reason why, when you look at exit polls was yeah. We know democrats screwed this up we dont trust republicans to fix the problem either complain one end execute on other right now doesnt look like they can execute. A short break when we come back, day two of Sam Bankmanfried trial, fox business kelly ogrady outside the courthouse kelly. Good morning, maria. That is right, day two prosecution is calling could be one of the biggest financial frauds in history coming up after the break i tell you what happened yesterday what were looking for today, how Sam Bankmanfried political donations will factor into the trial. That is next. Why choose a sleep number smart bed . 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Great to see you, expected to wrap up of by midmorning then Opening Statements sides first witness as late as this afternoon a number have been dismissed based on negative feelings about cryptocurrency multiple compared to madoff. Interesting moment played out publicly on social media towards end of yesterday the prosecution indicated a number of witnesses that they may call, interestingly, father and brother on that list that is surprising because they arent cooperating witnesses experts tell us could mean in for hostile questioning what we may get out of that testimony, is a window into how sbf curried political influence accused of funnel customer funds to political campaigns during midterms donated over 40 Million Dollars, to democrats allegedly used as a straw man for further donations, to fun evil over 24 Million Dollars to republicans prosecution expected to use that as evidence for fraud i will highlight george soros gave more than Sam Bankmanfried. Michael lewis profiling sbf reportedly crypto king to funded Midterm Senate candidates to beat out those aligned with trump considered paying former President Trump directly to sit out 2020 election, biggest takeaway from yesterday, is that the judge confirmed no plea detail offered by prosecution indicates they think their case is airtight back to you kelly ogrady. The trial of Sam Bankmanfried on fox news podcast. So much to talk about as far as, Sam Bankmanfried most of all the fact a story out 60 minutes, piece i dont know if you saw it a book coming out saying that Sam Bankmanfried tried to bribe or thinking about bribing donald trump not to run to tune of 5 billion dollars. Insane i guess not because not his money it is what he stole from other people. And the fact that even he thought donald trump would consider Something Like that remember donald trump ran for president , back in 2015, life quite nice apprentice maralago liberals loved him did a skit at emmys not long before that never take a bribe in a thousands years. Cheryl 89,000, adp very weak estimate was 153,000, believe it or not, this number, is even lower, than the range, the range of economists expectations was 125 to 200 calm in 89 this is much, much weaker than august, 177,000 this is this third month of this number actually fallen, obviously, this is kicking up into friday get september jobs report looking for 170,000 jobs, announcement rate 3. 7 , kind of precursor this is to friday jobs report remains to be seen this is a big miss. Maria big miss markets higher wondering if markets are viewing this as a good news that economy is slowing down, maybe means Federal Reserve doesnt raise again the end of the month october 31, november 1 is next Federal Reserve meeting, Jeffrey Gundlach said to me yesterday he thinks we are going to see layoffs pick up in middle management sector, your thoughts. You know, markets hated jolts report yesterday because it was bigger than expected, this i think ought to counter act that waiting to question a long time recession everyone waiting for, but when layoffs happen hiring slows down doesnt usually trickle off, it false off a cliff so i think that is the question here, adp number harbinger of that coming cliff or not. We talked about bank of America Small Business survey one of the things that was in that survey, is businesses frp ramping down investments for the coming year they were talking about being less likely to Grow Business more skittish about hiring, that is all consistent with this number, so i think you have to bring back on table the question of could we be coming to big hiring dropoff maybe seeing that. Maria we are about a week and a half away from thirdquarter earnings hearing from management what they are seeing we talked about that yesterday with double line ceo cio jeffrey gn gun guest at 8 30 a. M. Expecting this economy to turn lower we will get thoughts coming up stay with us. Is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Explore endless design possibilities. To find your personal style. Endless hardie® siding colors. 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Golo is real and when you take release and follow the plan, it works. Maria . Today critical decision by the democrats my fear is institution fell today. Because, you cant do the job if eight people, 94 of or 96 entire conference but eight people can partner with whole other provide. If i lose my yob over doing what i truly believe is right i am very at peace with it. Maria california congressman Kevin Mccarthy yesterday after eight republicans voted him out as speaker of the house first hours leader in American History to have he gavel tan away Patrick Mchenry temporary leader until house takes a vote next week joining me right now by senator ron johnson Member Senate budge finance Committee Thanks very much how do you read all of this. Good morning, maria. Well as you well know i am not of this world i am from private sector to me washing d. C. Ultimate universe bizarre this is grossly dysfunctional a process from children importants future seeing play out we go from manufactured cries to manufactured cries debt ceiling, shutdown building up to massive 2003 page omnibus spending bill nobody sees before passed passed in a couple days quickly forgotten leaves a trail of destruction in terms of deficit spending high inflation we need structural changes the republicans have been chewing spitting out speakers, at rapid rate not quite sure who is going to want that yob, but weve got a huge problem in this country, in government, but not going to be fixed by Milling Around edges i see hundreds of members of congress, acting like nero fiddling rome bills whistling by graveyard we need fundamental change. How is it disfunction on republican side democrats not talking about dysfunction got several bills through spent borrowed six trillion dollars last two and a half years they were many of them bad for American People but success as you say successes. We have a party in terms of process to mortgage kids future democrats onboard could care less how much we spend plunder future we have a few fiscal conservatives in house and senate to try to bring fiscal discipline up against uniparty, Mainstream Media which are leaders for rest radical left uni party we have digs cord a few not many who are concerned about the fact were, 33 trillion dollars in debt people dont know how much we spend this year 6. 4 trillion dollars, more than two trillion dollars, more than we spent four years ago, 4. 4 trillion dollars, that is absurd level of spending completely out of control yet, here we are with whistling by graveyard, distracted by the way, why any shutdown i have been pressing for four years, government shundz why didnt we pass Something Like that why put ours through types of supposed crisis it is because, the uniparty want it how they have process honed to mortgage our kids future. Maria what about investigation, being where do they stand hunter biden pled not guilty to federal gun charges yesterday out of special counsel david weiss investigation talking influence peddling charges bribe against a sitting president the what happens to that investigation with Kevin Mccarthy gone . A maria, you are well aware of the fact senator grass and i laid out more than evidence Mainstream Media covered it honestly joe biden wouldnt be president but house doing excellent job we have whistleblowers adding to record filling in puzzle showing Biden Crime Family is corruption obvious ubs obvious to me since 2020 will never be obvious number for media to cover it honestly that is a problem my guess jim jordan, james comer going to continue to investigation no reason why are they shouldnt. I know what you are saying, about you know the media, and clearly the media is not covering, any of this, but what about the democrats . Okay . Your colleagues, are defending joe biden, and saying that there is no evidence. So what about that . You say the evidence is in plain sight even working on this for so many years with Chuck Grassley opened this can of worms exposed so much, but now what how come your democrat colleagues dont see it your way. Never held accountable by biased media the bias Mainstream Media part and parcel to Democrat Party democrats can get in front of camera be completely hypocritical lie baldfaced never accountable i want free press a immediate unbiased holds both sides equally accountable we dont have that the biden family, commodity american president we have corruption in federal Law Enforcement, we have corruption in media. The because corruption in media because not holding federal government of course allows corruption in federal Law Enforcement to continue as well. Maria women joe concha go ahead. Senator would it make sense i have seen you do this before on meet the press nbc, for example, for more members of the senate from gop, and in congress for that mattergoing into the lions dense to cnns even msnbcs of the world write opeds in New York Times Washington Post is way to get message out there to confront head on doing interviews with outlets we dont see that enough from your colleagues i have seen you do it not enough from your colleagues. I am happy to do it i dont get invited, i mean simply dont invite me i reached out to chuck todd, why dont you bring me back in talked last time doing remote bring in in have studio a real debate, he just simply wouldnt do it it is hard i cant force myself on those networks i have to go on where i am welcomed, truly preern the opportunities maria gives me frequently. Maria what about this issue of term limits, many people feel that lawmaker get in place then forget who they are working or, they are there for decades, i want to get your take on where the bill for term limits is because i know that speaker mccarthy, at the time was pressed, to bring that bill to the floor. You all have to vote on something that would limit your time in washington is that the issue, whether i got here 2011 people pretty solid on idea of term limits saw what happened in states bureaucrats completely took clarnl i think reasonable term limit might be appropriate you he need to be very careful if you are kwhurng elected representatives you increase power of bureaucrats congressional staff, that is the problem omnibuses members of congress dont read those dont write those that is the permanent staff that has all connects to outside lobbying groups, that are largely responsible for mortgaging our kids future be kaefl in terms of turning congress too zbhieblg should be part of term limits joni ernst object with me for term limits so far as deep state is subject those people you talk about wind surveillance quote unquote swamp deep state should have term limits. That would be a process control, in might make some difference we need fundamental things, like probably scrap the budget 1974 doesnt work at all, go to twoyear budgeting cycle you can appropriate six appropriation from the oversight on other six reverse next year, i would look into having authorized committees actually doing appropriations themselves as opposed to all powerful Appropriation Committee that is not accountable to even conference quite honestly there is fundamental changes we have to make not saying going to be a panacea, but their things we need to start doing why werent we passing appropriation bills in april, may last year . We need to start doing that this year again, leadership doesnt like it takes power away from them, the uniparty has very well honed process. Uniparty i like that ron johnson in d. C. Doubleline ceo Jeffrey Gundlach here on impact on markets economy policies investors focused on spiking Interest Rates were talking with one of the leading investors in bonds, selloff if stocks this week as well back to bad policy my exclusive interview on the other side of this break. It starts with a grill. But it becomes so much more. An extension of your home. Not just a weekend retreat, but an everyday getaway right in your backyard. Newage makes it possible with beautiful allweather cabinetry, grills and appliances that transform your backyard into a complete outdoor kitchen. Visit newageproducts. Com to book a free Design Consultation and create the Outdoor Living space youve always wanted. upbeat music woah. Constant Contact delivers the Marketing Tools your Small Business needs to keep up, excel, and grow. Constant contact. Helping the small stand tall. Maria welcome back, just hours after Kevin Mccarthy was you have ousted former house he Speaker Nancy Pelosi was ordered to immediately vacate her capitol hide away office, cheryl casone. Cheryl yes amid chaos of last night, another casualty Nancy Pelosis office. The former House Speaker evicted from private Capital Office by new speaker pro tempore mchenry confirm mchenry gave order to vacate by today she is out one of the congressmans first acts as top house lawmaker, judge in Donald Trumps new york civil trial issuing gag order at former president a sharp rebuke to trump the judge pulling out a poster trump took i am a at court clerk without facts called her quoteers girlfriend judge said disparaging about member of staff day three underway this morning, there is this, the wall street journal is reporting that amazon, used a secret algorithm project messy to raise prices in redacted part of fec lawsuit against company you accuses amazon having outside influenza, prices reportedly going up at netflix after sagaftra strike ends wall street journal exclusively reporting plans to raise price a few months after strike ends we dont know prices but interesting plan for netflix if true journal is reporting this morning. Maria prices going up everywhere not surprised, all struggling, with with lower numbers for streaming than they thought revenue has to come somewhere. Netflix doing so well, during the strike, because, all old tv shows coming back old movies you had a audiences, like suites. I want gilded age, one thing i definitely want to watch. A look at futures, Interest Rates, adp weaker than expected private jobs in september lowest job growth since january 202 12shgs markets rallied we are expecting a report that is confirming maybe Federal Reserve may not have to raise rates, in the next meeting october 31, november 1, yields earlier this morning, yields continuing a move upward now we have seen reversal after jobs data 10year 30year yields hit 16year highs this morning, now, the 30year is 4. 872 down 5 1 2 basis points 10year 4. 748 after hitting 4. 8 plus earlier this morning, lead bond investgundlach said b likely a hit a. Another big selloff is this beginning of investors figuring out a much Slower Economy bad oil resulting in bad outcomes. I think the sharp move up in Interest Rates is creating, far too much competition. For the market, bonds were crazily overvalued versus stocks at high of stock market bonds crazily you know early 2022 late 2021 completely reversed, because p e on stocks through the sky bond yields up 400 basis points some sectors 500, 600 basis points relative valuation comparison is from stocks worth bonds worth doubly rich to stocks two years ago now other way around a 4x revaluation of stocks, versus bonds favoring the fixed income side where you can get pretty decent returns as a consequence of what fed is doing so far bonds were trading at 100 couple years ago, that treasury bonds, 50 now trading, credit bonds at 100, we are getting 3 1 2 now 65, and yielding as much as 9 to 11 totally different change risks should be taken in parts of the credit market risk reward far superior to two years ago. I want pt to ask pack story about to go into earnings to see economy slowdown further, how do you think this plays out how would you assess the mack Macro Economy i think everybody but employment is showing stresses, and going on for awhile now, since did stimulus in terms of economy from outperforming on expectations, i think that is because government response was so riledly outsized the 2021 free money that is puzzling brought on inflation any one sensible should have known it would but was hanging around so much money, that it was still spillover effect into 2023 to greater extend i think than people realized i thought that money was going to run out, around midyear i think that is pretty much what is happening. But, the consumers rampedup credit card spending to fill that gap. Which is not sustainable, classic once you start borrowing on credit card to pay credit card you are in a spiral, we have indicators have been helpful in the past strongly suggestive of weakening economy in 2024. We have yield curve compare short rates to long rates it had been that usually short rates lower than long rates people cant to get paid more when fed gets aggressive make short rates end up higher than long rates, when that first happens, people start taking notice but, dont get panicky it is after it stayed a long time, and, then starts to move the other way, so suddenly short rates starts relatively lower veers long rates that has happened, and that has happened in a way that is pretty convincing that we should see economic weakness say in first half next year. Also, we have sentiment consumers remains pretty good, about the presence a little bit more pessimistic one year forward view but that differential has been narrowing hanging out completely differential for about 24 months typical period once the other way has begun, a recession is pretty likely on that indicator, so one that is left is employment, we know, jobs have been, pretty abundant, and announcement rate is low but not falling any longer moved above average of the past year, which is a reason to start paying close attention to it if it starts if it goes up even a few tenths percentage point more would be in context historically that has in every avoided a recession. When Unemployment Rate goes up from low, by only one half of 1 , or more, there has been a recession, every single time. And other things i could go into but those are the ones i really think bear watching, and based on that i think we will probably looking at economic slowdown first half next year. And recession . I think recession is what i mean, yeah. Next year. I think also, you know people have to pay taxes again was is not happening for awhile. Maria what kind of exposure do banks have. Another sector higher for longer creates really big problems trillions of dollars loans mortgages, folks, part of it written, over a multiyear period when Interest Rates were zero on fed funds, and 2 or lower, pretty much on entire treasury market, you know, and so now, the loans are sitting there left money call 3 , now fed funds rate 5 1 2 so if funding those loans fed funds rate they are hemorrhaging money logging 250 basis points on all loans cant be refinanced a big problem i think makes it wise to avoid, broadly speaking the banking sector, of the u. S. Market. Interesting comments from Jeffrey Gundlach we will have part two of my interview tomorrow brian reaction. Yeah. He is telling the story that i think, is the prevalent one we got all that money he is right it was that last tranche 2021 tranche huge fueled inflation question has been how long will it take for that to run out the answer is nobody really knows because weve never done that most people thought would run out earlier than it has but he hit it right on, midyear this year, when you started to really see shift from people having savings to dip into to credit card borrowing living on borrowed time i think the expect is having to pay Student Loans again going to hit big time into consumer spending, then you really see that scenario like he said early necessary year called it a slowdown you called it recession. He called it recession then i repeated what he said. Either way i think the answer is, if you get a slowdown like that, going to be day recession. Maria i thought it was really into about banks he was not shy about saying it is wise to avoid banks there is more exposure that banks have in an we all know, important, because weve talked a lot about commercial real estate and change in terms of going to office, we dont know how that is going to play out. We dont know politically, 2024 if in a recession, think about last time anybody has run for president reelection in recession took down george h. W. Bush once 90 approval during presidency end of bill clintons presidency recession hurt Al Gore Donald trump because of covid economy wasnt doing well as a result how does joe biden polling so low, particularly on the economy, handle being somebody running for reelection during an official recession . It is a bad narrative for him. The other thing pointed out was jobs how no one there has never been a way to avoid recession when jobs number changes, i can see that interesting to see. Maria , this morning, expecting that to continue as well, more interview with Jeff Gundlach tomorrow at a time spiking Interest Rates, we will have that for you tomorrow morning, you are watching mornings with maria live on fox business, well be right back. About a cashew farmer from mozambique named carlos. Carlos lifted himself out of poverty with the help of techoserve. Go to technoserve. Org and see how you can support struggling farmers like carlos. Its a different way to make a difference. Youre probably not easily persuaded to switch mobile providers for your business. But what if we told you its possible that comcast business mobile can save you up to 75 a year on your wireless bill versus the big three carriers . Have we piqued your interest . You can get two unlimited lines for just 30 each a month. There are no Term Contracts or line activation fees. And you can bring your own device. Oh, and all on the most reliable 5g mobile network nationwide. Wireless that works for you. Its not just possible. Goli, taste your goals. Its happening. I am poised to vote to to to remove him from speakership i just think we need we are going to have like i said he is my friend tough decision i prayed about it go with conscious or go with my friend the speaker. I personally like burchett i called tim burchett i read his quote i said i read your quote you are going to pray about that somehow he con industrious that unchristian i read his quote back i thought still an opening, i wanted to talk to him about it i never mention anything communicating like that. T. Tennessee congressman tim burchett on program yesterday before he voted to remove congressman Kevin Mccarthy as speaker of the house, mccarthy addressed burchetts vote saying he tried to take to him about it, brian, there is a lot of Division Going on right now, in the republican party. But i think we also have to recognize, why, there is division they want change from democrats they want reckless spending to stop the corruption he to be cleaned up it is still ongoing. Well ron johnson said it i agree with him he said were not nibbling ash edges cant nibble around edges big things have to happen, that is what this fight is about, in my view, now. He referred to uniparty, being one party, people democrat and republicans, targeted union party neefsh goes to congress think they are there for their own agenda what they want to get done like entitled to this job i think americans are saying, i want all of that to go away i want to see real results, now next speaker is going to have a a heck of a time getting results i dont think they are going to have more leverage than mccarthy there is opportunity donalds, fiscal ieds goes to everybody says i dont want this job, but if i do it, you better have my back because i am going to swing for the fences dont come back 50 days telling me i havent gotten anything done that is the leverage i think next speaker has i think theyve got to use that unless somebody can give republicans lockstep pointed to fighting uniparty politics going to be same darnedening that we just saw yesterday. Maria they will try to roll over whoever it is as speaker. How do you conduct that fight what i mean when you say sprint for fentsdz go big does that mean all the way actually, getting to the point government is shut down, that was 35 days, not like remember all where we were at that time, because everything still worked, still garbage picked up could call 911 are rvpz willing to go that far mccarthy one of thes. Be mr. Unpopular everybody said you cant shut down government but goodness look where we are with a tool in kit i think donald trump right never takes any tools off the table, like him or not kept it on table when he talked keep the tools on the table. Trump said let government shut down fine. You have to have leverage about leverage nobody has any leverage taking the most powerful told a off the table before we even get there. Showing cards, well be right back. Maria a look at futures this morning which are higher. Weve got the dow up 71, nasdaq up 67, s p up 12. 30 minutes before the opening bell, some final thoughts here. Brian. I just want to keep an open mind on the road ahead. I think theres a lot of tough challenges for congress to figure out. I dont know if what happened yesterday is going to change the path a, but id love to see republicans create leverage where none exists, id lo to see real, meaningful changes to spending. I think itd be great for america if that happens. And youve at least got to give this process a Second Chance to do that. And if it doesnt, then weve learnedded a lesson about, you know, the way that politics is being conducted in d. C. And with republicans and who these actors are and what theyre up to. We will find out. But i just agree with senator johnson that nibbling is leaving us starving as a nation when it comes to good government. Maria yeah, youre right. Meanwhile, the world is coming apart led by the united states. Look at the economy here. We were told to expect things to get much worse. He said watch out for the banks, they are exposed to this weakness. Well see about that, joe. Wow. If we just go back to the speaker of the house or the lack thereof, the margins are the margins. In the senate its two seats, for the republicans in the house, its four or five seats. As long as those margins are so thin, there has to be some compromise until you have a solid majority. Maria lee, or final thoughts. 63 of americans think the government does a poor job of representing the American People, and i think this is just further evidence. I think its going to be even worse. Thats 10 worse right now than it was just a year ago. I dont think we see any changes. Maria i agree with that. All right. Tune in tomorrow for more of my exclusive interview right here tomorrow. Brian brenberg, joe concha, lee carter, thank you all. Ashley webster in for stu this morning, take it away. Ashley thank you,

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