Transcripts For FBC Varney 20240703

Take it away. Ashley thank you, maria with. Good morning, everyone. Im Ashley Webster in today for Stuart Varney. President biden holding a prime time address to make the case for billions in aid to israel and ukraine. And while he didnt give a number, it is widely expected to be around 100 billion, maybe more. Some critics not happy that biden is using the war in israel to push for more aid to ukraine. Were going to get into that issue. Meantime, the situation in the middle east intensifying. Smoke rising from buildings in gaza saw as israels ground offensive could begin soon. Israel warning the conflict will be long and intense. Tar heinrich is the spokeswoman for Prime Minister Benjamin Netanyahu. Meanwhile, more attacks on u. S. Troops in the mideast are ramping up, overnight two more were thwarted in iraq. Meanwhile, hamas is calling for another day of rage. Theyre encounselinging muslims a encouraging muslims to stage mass protests against israel. As for the markets, lets take a look at the futures. The markets selling off yesterday among all of this uncertain the city, and you can see the dow, the s p and the a nasdaq all moving slightly lower. Meanwhile, oil back over 90 a barrel, and that could be more of an issue if the unrest continues to escalate in the middle east. Lets take a look at the 10year treasury yield with. This has been the big story. It crossed 5 for the very first time late last night in aftermarket trading. Right now its at 4. 96 . Take a look at bitcoin, also rallying again. This time closing in on 30,000, up 900 at 29,566. And one last worry if you wanted one more, we still do not have a house speaker. It is friday, october the 20th, 2023. Varney company if is about to begin. Muck. Ashley lets get right to it. Smoke rising from the skies over gaza as israel prepares its ground offensive. Mike tobin live on the ground this morning in israel. Mike, good morning to you. Give us the latest. Reporter well, good morning, ashley. What the latest is, is the idf is showing us some of the weaponry they seized after the of course 7th attacks october 7th attacks. This is a hamas ie or d, a roadside bomb. This one is designed to be a shape charge, if you will. The top becomes molten metal at a pinpoint if with the design of penetrating armor, killing everyone inside of a tank. More ieds here, roadside bombs. These are simple mines. As you go in this direction, this is a launcher for a rocketpropelled grenade, and as you see here the store the, whats significant is hook at the color. The green ones are old soviet legacy. If you looked at these gray ones, these are made by north korea. Very significant in terms of where theyre getting their development. If you like across this cache of weapons, you can see a mortar tube, just one mortar bomb on the ground behind some debris there, those are made in iran in 2018. Speaking to the support that hamas is getting from iran. You see a lot of hand grenades, all this stuff is disarmed. This is the, the idf says its 1 of the weapons that they see. Most of the weapons, theyre destroying it, but these are some of the things that theyve put on display just to show the kind of weaponry that hamas fighters had access to and the kind of weaponry that they turned on the civil kwan population. Ashley . Civilian population. Ashley . Ashley mike tobin, fascinating stuff. Thank you for that, mike, appreciate it. By the way, i just want to mention this, you can join the Fox Corporation in supporting the Israel Emergency Fund in association with the united jewish with appeal. You can just scan the qr code you can see on the screen there, or you can donate at ujafedny. Org. All right, President Biden addressing the nation last night. He made the case for billions in aid for israel and ukraine. Take a listen. Were not withdrawing. I know these conflicts can seem far away. Its natural to ask why does this matter to america. Let me share with you why making sure israel and ukraine succeed is vital for Americas National security. You know, history has taught us that when terrorists dont pay a price for their terror, when dictators dont pay a price for their aggression with, they cause more chaos and death and more destruction. They keep going. And the cost and the threats to america expect world keep rising. And the world keep rising. Ashley well, okay. Mollie hemingway joins me now. Lots been said about this speech, some said it was a bit disjointed, all over the place. What was your takeaway from the speech last night . The speech was disjointed, it kind of meandered all over the place, but the bigger issue is that President Biden is trying to take a bunch of popular things like a desire to support having a southern border in the United States or a desire to support israel as it fights off hamas and putting it in with something thats actually not very popular in america which is an escalation in the war in ukraine. Most of the funding that he listedded in that speech would have gone to ukraine, and rather than having a vote on that which may or may not do particularly well in the senate or in the house, he wants to lump it together with popular things and have it be spent. St theres also the issue that hes calling for at least 100 billion in funding. Most of it going to ukraine. At a time when the country is facing some pretty Serious Problems with its economy and with its rising debt. Ashley yes. Youd like to see those issues kind of voted on pratt9ly. I think its 60 billion out of the 105 billion and just 14 billion actually goes to israel, some of that goes to taiwan and some to the southern border. So you think those should be split up. Not just in terms of what you vote on, but also in the argument. So right now you have biden and people who support his Foreign Policy saying that the war that israels engaged in against hamas is the same war as the proxy war against russia in ukraine. Theyre very different wars, and they have very different cases, and the American People view its ally, israel, very differently than they do the war between russia and ukraine. And he knows that, thats why hes radiotrying to muddle it. But trying to muddle it. At a time when money is not in abundance and when you pivot away what we saw in the war in russia recently, the war in ukraine was taking some of the resources that were in the middle east and putting them over in ukraine. That is turning out not to have been a very good idea as we see that the attention needs to be paid in the middle east. Ashley we hear you loud and clear. Im sorry its so short but, mollie, thank you. So much. Thank you, ash. Ashley i want to bring the discussion back at home. Thank you. Fed chair Jerome Powell sees a bumpy path forward as we head into the end of the year. Good morning, lauren simonetti. Does that mean more rate hikes . Lauren let me consult my crystal ball. [laughter] who know, ashley . The fed chair said it doesnt feel like policy is too tight right now so, yeah, he left the door open. I thought he sounded relatively optimistic about the economy. He said its doing a good job of handling tighter monetary policy. Let me show you how much weve tightened. This you go. Eleven rate hikes since march of last year, 550 basis points of tightening. But it seems like this recent runup in yields is doing some of the feds work for it, and thats why investors seem to lean into the fact that the fed is done with rate hikes. Futures are pricing in a less than 1 in 3 chance of another rate hike. So hes left his options on the table. Ashley he certainly did. Lauren, thank you very much. Lets take a looked at those futures again, down slightly after yesterdays selloff, down about, as you can see, a third of a percent for all the major indexes. Lets bring in Kenny Polcari on this friday. Kenny, great to see you. To laurens point, you know, fed chair powell pointed it out that these rising treasury yields kind of doing the job for them, right . It is. And i think were going to see more of that, right . I think, listen, on the one hand while i thought a couple weeks ago the fed should continue to raise, in fact, ive changed my mind partly because of Everything Else thats now going on in the world and the fact that rates have continued to move higher and will probably continue to do so. So that is doing some of the work for the fed, and i think pausing at the moment is probably the right thing to do. Ashley its interesting, isnt it, kenny, because you have to kind of give them some props, if you like, jay powell and the board, because they have raised rates 11 times. Theyre at over 5 , 5. 25, Something Like that, and yet the economy has been remarkably resill yen. He hasnt cratered the economy to try and bring down inflation. Well, he hasnt. He hasnt yet, right . I think you have to qualify it by saying yet because i do think now that rates, especially the 10year, that went over 5 late last night like you said, the 30year mortgage is going to go to 8 and probably even higher, and at that point its going to start to put more pressure on, you know, the consumer, the economy and Everything Else. Im not necessarily saying hes going to destroy it, but i do see the break is coming. It hat to be coming. Ashley i hear you. The markets tend to surge or pick up a bit going into year end, but with these really high treasury yields weve seen oil going up, and it could really skyrocket if things escalate in the middle east. How does that play to the stability of the market heading into years end . I think you have to be a little bit cautious, right . You have to be prepared for more volatility which i think were going to get. But i do think9 that the 10years going to settle right in here at 5 . I dont think its going to 5. A 5 or, god forbid, 6 . I dont think its going there yet. I think you have to look at some of the sectors that have gotten beaten up, the small cap names, looked at utilities, got beaten up. Financials, certainly, i think is a place you want to be. Energy, im going to stay with energy. Im not chasing tech at all up here because thats whey extended way extended, nor am i chasing the discretionary. You can always take your money at the moment if youre nervous and put it in government money market fun or u. S. Treasuries. Theyre going to get you 5, better than 5 at the moment. Ashley yeah. Its hard to turn down, isnt it, especially in this very uncertain environment. Yeah. Ashley Kenny Polcari, wonderful stuff. Have a great weekend, my friend. You as well. Ashley all right. Thank you, kenny. Coming up, President Biden says he will hold iran accountable. Listen to this. Iran is supporting russia in ukraine, and its supporting that hamas hamas and other terrorist groups in the region. And well continue to hold them accountable, i might add. Ashley so how should biden respond to iran . President ial candidate and former very p mike pence will be along here to take that on. Also theres this, wisconsin congressman tom tiffany introduced a pill to prevent palestinian migrants from coming to the u. S. Hes going to tell us how he plans to make that a happen next. Mug. vo Verizon Small Business days are back. From october 16th to the 22nd. Get a free tech check and special offers. Like a free 5g phone. Plus, switch, keep your number, and get up to 300 off. With verizon business. Its your business. Its your verizon. Explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. 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. This is american infrastructure. Megawatts of power, rails and open road, and essential services of every kind. All running on countless invisible networks, making it a prime target for cyberattacks. But the same aipowered security that protects all of google also defends the systems running americas infrastructure. For these services. For the 336 million of us living here. Municipal bonds dont usually get the Media Coverage the stock market does. In fact, most people dont find them all that exciting. But, if youre looking for the potential for consistent income thats federally taxfree, now is an excellent time to consider Municipal Bonds from hennion walsh. If you have at least 10,000 dollars to invest, call and talk with one of our bond specialists at 18002173217. Well send you our exclusive bond guide, free. With details about how bonds can be an important part of your portfolio. Hennion walsh has specialized in fixed income and Growth Solutions for 30 years, and offers highquality Municipal Bonds from across the country. They provide the potential for regular income. Are federally taxfree. And have historically low risk. Call today to request your free bond guide. 18002173217. Thats 18002173217. Hi, im jason. Ive lost 228 pounds on golo. So when my doctor told me i needed weight loss surgery, 18002173217. I knew i had to make a change. Golos helped me transition to a healthier, sustainable lifestyle. Im so surprised just how crazy my metabolism has fired up. I have a trust in golo cause i know it works. Golo isnt like every other program out there, and im living proof of it. announcer change your life at golo. Com. Thats golo. Com. Ashley President Biden calling on congress to help fund the fight for israel and ukraine in their wars last night. Hillary vaughn joins us this morning on capitol hill and, hillary, is many biden going to lump in mr. Biden going to lump in Border Security with this request . Reporter he is, ashley. And the president announcing last night the total price tag for this aid package will be 105 billion. The Associated Press reporting how this is all going to be divvied up. 60 billion for ukraine, 14 billion for israel, 10 billion in the humanitarian aid,ing 7 billion for taiwan and 14 billion for the border to also help fight fentanyl trafficking. But after seeing how terrorists rayed israels southern border and massacred entire families, lawmakers here on capitol hill worry we are not prepared to fight against Something Like that happening. The American People want to know what this administration if is doing to secure our nation. We have watched in horror what happened in israel, and americans that i represent and others across this nation are saying we dont want this to happen here, but we think it could. Over 100 terrorist watch list apprehensionings this year under joe biden. Reporter the House Judiciary Committee releasing a report earlier this month showing that dhs cannot keep track of all the migrant cans saying the illegal of millions of illegal immigrants, quote, dhs can locate only a fraction of them. The report also saying, quote, u. S. Border control does not always record migrant addresses and doesnt always validate addresses prior to migrant release into the u. S. And, of course, the big concern here is if you dont know where to find these migrants, we dont really know who they are. And if they are a threat, we dont know how to track them down to stop that threat. The other big point in this aid package is until the house has a speaker, they are not going to be able to pass this muchneeded aid for israel, for ukraine or for the border. Ashley . Ashley yeah, thats exactly right. Hillary, thank you very much. Wisconsin congressman tom tiffany joins me now. Congressman, you recently introduced a bill to prevent the flow of palestinians into the United States. How is that going to work . So we refer to it, ashley, as the gaza act. And what it does is it says anyone with a Palestinian Authority passport, they shall not be allowed in the United States. Think about it, ashley. Both jordan and egypt said its a red line, that they will not allow people from palestine or palestinians into their country. Why should we across an ocean do that when their neighbors wont . Ashley well, weve talked about the or porous southern border. How do we know that these individuals have not already crossed the border and are in the country now . Yeah, you made a really good point. I think in just the previous segment there when it was talked about the number of people in america that they cant find, theres only 1 of people that the Biden Administration has admitted that they know where theyre at. Ashley yeah. Its insane, it really is. I want to get on to this other big issue because all were talking about cant really happen until we get this situation sorted out in the house of representatives. The next vote on speaker is expected this morning after 11 00. It could go on through the weekend, it depends. You are supporting jim jordan, i understand. So my question to you is, does he have the votes needed, the 217 that he needs . Yeah, i dont know if he has the votes or not, but i think hes doing the right thing by calling a vote. And if you remember, Speaker Mccarthy went through 15 votes earlier this year. It may take multiple more votes to do it, but i think jim jordan is the right guy. Contrast his message this morning. If you watched his press conference with President Biden where President Biden couldnt even in a whole hearted fashion call out iran for what they are doing in the middle and in russia, whereas you get real clarity of message with jim jordan. You know, when he talks about lets fight, lets finish and lets keep the faith of the American People that the American Dream is still alive. It is a clear contrast, and thats why im supporting jim jordan. Ashley are you concerned, congressman, of the optics of all of this . It appears that the, theyre kind of making it up as you go along. Theres, you know, a sense that the republicans cant get their act together. Could there be repercussions for whats going on next year, in next years elections . If it goes on trooping, i suspect thats the case. But, you know, what have we missed, like, four legislative days. Theres a lot of handwringing thats going on, but we should get to work this weekend, and lets get the speaker named. I think it should if be jim jordan because he is one of the best communicators. He has a vision for where we should go to get control of inflation, to bring down Energy Prices and, most importantly, secure the border so we dont have this terrorist threat that may be coming across our border. He clearly understands what needs to be done, and i think the more than people are with him, and they want us to society for jim as the speaker of the house. Ashley well, well see how that works out. Congressman, thank you so much for taking the time to talk with us this morning. We really appreciate it, thank you. Ashley, good to a talk the to you. Ashley by the way same here. Its been more than two weeks since the house has had a speaker. Some are considering giving speaker pro tem Patrick Mchenry of North Carolina more power in the meantime, so what does congressman matt gaetz think about that idea, lauren . Lauren he says he doesnt like it. Theres no jerry rigging of the constitution needed or warranted. Watch. Im against speaker light, im against bud light. I believe it is a constitutional desecration to not elect a speaker of the house. We need to stay here until we elect a speaker. And if someone cant get the votes, we need to go on to the next person. But twisting and torturing the constitution to empower a temporary speaker is having a speaker light. That is not constitutionally contemplated, its deeply infirm, and i will do Everything Possible to stop it. Lauren hes not the only republican saying that. Jim jordan says hes in it to win with it, but theres a lot of republicans who dont necessarily dislike jim jordan, they just dont like that hes strong arming and bullying them to come to his side. Let me tell you the latest on chad pergrams reporting on fox news, hes positing that if enough and the right republicans are absent for these votes, jordan could actually win. But, of course, if the wrong republicans are absent, we might be speaking of speaker hakeem jeffries. Ashley wow. One word comes to mind, shambles. Lauren chaos. [laughter] ashley lets take a look at the futures. After losing ground yesterday, looks like we may begin with a modest loss at the opening bell which, by the way, is coming up next. Stick around. Some things are good to know. Like. Where to find the cheapest gas in town. And which supermarket gives you the most bang for your buck. Something else thats good to know . If you have medicare and medicaid, you may be able to get more Healthcare Benefits through a humana Medicare Advantage dualeligible special needs plan. Call now to see if theres a plan in your area and to see if you qualify. All of these plans include doctor, hospital and Prescription Drug coverage in one convenient plan. From humana, a company with over 60 years of experience in the healthcare industry. Youll have lots of doctors and specialists to choose from. And, if you have medicare and medicaid, a humana Medicare Advantage dualeligible special needs plan can give you other important benefits. All of these plans include coverage for dental with two free cleanings a year. Plus fillings and a yearly exam. Vision including eye exams and a yearly allowance for eyewear. And hearing benefits including routine hearing exams and coverage for hearing aids. Plus an allowance to help pay for essentials. Like eligible groceries, utilities, and rent. Even overthecounter items. And whatever you dont spend gets carried over to the next month. Best of all, youll pay nothing for covered prescriptions, all year long, even the brandname ones; and zero dollars for routine vaccines, including shingles, at innetwork retail pharmacies. So if you have medicare and medicaid, call now to see if theres a plan in your area that could give you extra benefits, including coverage for Prescription Drugs. Plus dental, vision and hearing. And more. A knowledgeable, licensed humana sales agent will walk you through your options. And, if youre eligible, and theres a plan in your area, help you enroll over the phone. Call today and well also send this free guide. Humana. A more human way to healthcare. Ashley the opening bell will ring in less than three minutes now. Expecting a slightly lower open mark mahaney, you follow netflix. Their Third Quarter came in very strong. You had a 500 price target on netflix. Any changes to that . No, ashley. We stuck with the 500 price target. We think they can generate 20 in earnings by 2025. You put a 25 pe multiple on it, and that maps out to the 500 price target. Expectations with were super low for netflix going into the quarter, and so the sub numbers were just a lot better for both September Quarter and how they guided for the next quarter, the december quarter. They were a lot better than people expected. Turns out they had a couple of cards up their sleeves. Suits did very well for them in the u. S. , and there was a bunch of original content shows across europe that led them to have record of new sub adds coming in from outside of the u. S. This companys always been a hit machine, and people just underappreciated some of the hits that they had rolled out in international markets. So we continue to like netflix. Its not a top pick, but its what happens when expectations are super low for good assets. Netflix is one of those. Ashley right. In this very volatile environment, theres a lot of headwinds, a lot of concerns out there for investors. Is there any particular sector that you are honing in on . Im not sure that there is any one sector. You know what im looking for in this environment is really good tactical plays. So i want to the find companies that have got improving fundamentals. And if their valuations are less than normal, less than average, then thats your setup. And thats where i think you are on meta, google and amazon, all three of which report next week. I particularly like the setup on amazon because its sort of similar in my mind to netflix. Expectations are low, and i think the core business is not as strong as it was a year ago, there was a lot of issues between the cloud business, but i think it has the ability to recover. Revenue acceleration, margin expansion, when you find that combination in a stock that thats been somewhat dislocated, thats usually a good stock pickers opportunity. I like that with all three names, particularly meta and amazon. Ashley very quickly, mark, would you say youre cautious right now, leaning more bullish or more bearishesome. I call myself totally tactically constructive. I was tactically constructive at the beginning of the year, im more so now with the with two months pullback we had. I try to stay focused on the fundamentals, and i think theyre going to improve with those three names reporting next e week. Ashley very good. Well leave it there. I like it, very diplomatic. Mark ma happyny, thank you so much. We are up and running, right out of the chute here were down 40 points, a tenth of a percent on the dow. 33,374. Lets talk a look at the s p, losing about. 8 in yesterday s session. Theres the dow 30 stocks, by the way, Procter Gamble at the tom, mc at the top, mcdonalds. The s p also down about a tenth of a percent, and the nasdaq lost 1 in yesterday s session, down begun a quarter of a percent. Just 34 points. When we talk about nasdaq, of course we talk about the big tech names. Lets take a look at those. Mixed ball,s bag, mostly down. Meta managing to eke out a small gain, but microsoft, apple, amazon, alphabet all moving lower. All right. Now well get to some of the individual stocks. Lets take a look at solar edge if we can. Its way down. I say way down, thats not doing it justice, nearly 34 . Lauren, whats going on here . Lauren its a residential solar power company, and they are warning of significantly lower revenue in this quarter. This is a3year low for the stock, and other solar stocks are down also. The ceo said they experienced substantial up unexpected cancellation ares, particularly from their european customers, but also slower installations overall. A big consequence with of the down trend is high Interest Rates. Ashley indeed. Wow, getting whacked, down 35. Lets move on. Coinbase. I believe rallying today lauren yep. Ashley lets have a look, 11. 5 . Whats going on 1. 5 . Lauren bitcoin in general is alsoer for the higher for the sec day. They are confident an extf will be approved by etf will be approved soon, because the sec fail to block gray scale from converting its bitcoin into an etf. What it does is it gives investors a way to own bitcoin without having to directly purchase it from an exchange. In other words, you could say it takes some risk out of the equation. And to that point, bitcoin prices have been relatively stable recently, right . Between 2830,000 on a good day because of the lack of volatility. Thats also why some investors are sitting on the sidelines, because they loved the huge runups, not downfalls. They loved the ride the runups that the volatility did bring to the crypto sector. Ashley that is for sure. Lets talk about the awe the makers, talk of layoffs potentially at stellantis . Lauren another 100. These are temporary layoffs, they start on mono, this is happening at their lead to e doe, ohio, pa moo chain machine plants. This is not including striking workers. Total layoffs at stellantis as the disruption of the strike, its more than 1500. Thats just one automaker. Similar numbers, in fact, bigger numbers at gm and ford, and well get an announcement from shawn fein, the head of the uaw, at 4 00 today, ashley. Ashley very good. I want to talk about ozempic. You know, its a diabetes drug, but everyone now calls it a weight loss drug because thats one of the side effects. Now theres talk about maybe using this drug for kids because of weight loss . Lauren look, obesity among children is a big problem. Bloomberg is reporting that novo nordisk is testing ozempic for children, and eli lilly plans to test its approved diabetes drug mounjaro, that one is just approved for diabetes, theyre planning to test it on kids as young as 6 years old. In fact, theyre already testing it on 10yearolds. So these are are the numbers. 20 of kids are to bees. Thats almost 15 million children. It expands the market for these obesity drugs already estimated at 100 million by the year 2030. But another side to this story, because you never know longterm effects, but sheer laziness, right . That you can just take at shot, take a pill, and all of a sudden look your best . I mean [laughter] ashley yeah. Lauren what about hard work or eating healthy or doing the right thing to be in shape . Ashley thats true. Of but for some people all of that just doesnt help, they truly struggle. But i hear your point. I want to move on to this, i saw this headline earlier this morning, im like, what . Cvs pulling some cold medicines off the shelf. Whats going on in. Lauren i know. And the worry is that walgreens and rite aid could do the same thing. Do you remember that decision, the ruling from the fda a couple of weeks ago, they said theres this common ingredient in these popular over the counter cold many medications like mucinex and they are flew they are flu, that that common ingredient was ineffective . They cited a study, so now cvs is pulling these popular drugs that contain it from store zell shelves. Ashley i dont know, mucinex works for me. Lauren certain ones, yeah. Ashley yeah, i get it. Are we all going to be wearing Virtual Reality devices soon . I know what Stuart Varney would say to that, shul not. March r. Lauren what would you say . Ashley i kind of like it. I play some Virtual Reality games with my children, and i kind of got hooked on it. Lauren it might be easier for you to wear those devices, those headsets, because government regulators are working with the tech industry, with meta, with apple to open up a band of spectrum for wearables. That would enable new applications of these a. R. And v. R. Devices. So it would work when youre not at home, it would work when youre away from a good wifi connection. So essentially, everybody could be, like, on the train or walking down the street not knowing where the road is because, you know, theyre plague a video game at the same time. Playing a video game at the same time. Ashley yeah. What could go wrong . [laughter] lauren i would never be lost, actually. Id have uninstant direction. Lauren, make a right, because with i me over in where im going. [laughter] ashley very good. All right, lets take a look at the big board if we can. Look, its a very muted opening, down 18 points on the dow, even less than puntenth of a onetenth of a percent. On the upside, merck, Procter Gamble, cocacola, verizon, visa. All very familiar names,s up anywhere from. 8 to more than 1 . Take a look at the s p 500 winners. Gm is on there, csx, the train people up more than 2 . Gm up more than 2 , by the way. Philip morris up 1. 75 . And take a look at the nasdaq winners, always struggle when the treasury yields get higher. Again, netflix up there. We talked about netflix with mark mahaney up. 33 , pepsi 1. 33 . Coming up, israeli Prime Minister Benjamin Netanyahu warning of the long war ahead. President biden says israel needs to abide by the rules. Roll tape. President netanyahu and i discussed again yesterday the critical need for israel to operate by the laws of war. That means protecting civilians in combats as best as they can. The people of gaza urgently need food, water and medicine. Ashley well talk to the spokesperson for israeli Prime Minister netanyahu coming up. Also a prohamas was charged after snatching an israeli flag from a new York City College student at a rally near campus. That victim is here to tell us his story. Also fed chair powell says inflation is too high so, question is, how do we bring with it down . Economist peter morici will take that on next. This is Spring Semester at over 13,000 us school districts, which have become top targets for Ransomware Attacks. But theres never been a reported Ransomware Attack on a chromebook. Which is why thousands of schools like the fairfieldsuisun Unified School District switched to google tools for education. So they can focus on teaching and 22,000 students can focus on learning, knowing that their data is secure. ashley just wanted to show you some of these pictures. Youre looking at the capital of yemen. Antiisrael protests currently taking place there. Weve been following all of this. Were going to keep you updated through the show. Hamas has called for another day of rage against israel. That is what is going on in yemen right now. Okay, switching gears, Federal Reserve chairman Jerome Powell says inflation simply still too high. Gerri willis is here now. When he says that, does that mean were going to see more rate increases . Reporter well, hes not promising that now, no. Hes been echoing comments from his fellow Federal Reserve colleagues. Chairman powell praised what he termed clear progress in taming inflation but, look, he stopped short of declaring an end to rate hike, as you mentioned. Although he took a victory lap, the fed chief says he is still committed to achieving the feds longterm inflation target. Listen. We cannot yet know how long these lower readings will persist or where inflation will settle over coming quarters. While the path is likely to be bumpy and take some time, my colleagues and i have united in our commitment to bring down inflation sustainably to 2 . Reporter in prepared comments, powell said the committee is proceeding carefully and that, quote, incoming data over recent months shows yoon going process. Ongoing process. Many taking those sentiments to mean that no rate hike is planned for the Central Banks october 31stnovember 1st meeting. In fact, many now saying that an escalation in longterm Interest Rates over the past month, hey, its doing the feds job for them. Weve been talking about it this morning, the 10year treasury closing in on 5 . That is a 16year high. Rates higher. The fed chairman recognized clouds on the horizon including escalating federal debt which sits at 33. 665 trillion as of just a few moments ago. Listen. All i can say is we know that were on an unsustainable path fiscally. Its not that the level of the debt is unsustainable, its not, t the path were on is unsustainable, and well have to get off that path soon e rather than later. Reporter the fed chair also gave props to regional banks currently urn pressure in the markets because of rapid spikes in Interest Rates, describing those banks as an enormously important part of our banking system. Ash, baqubah to back to you. Ashley gerri, thank you very much. Now want you to take a look at this oped. Its titled stocks and homes are still rising because buyers think inflation will stay high. Guess who wrote that . Peter morici. Guess what . Hes here now. Good morning, peter. Explain to me what youre saying here. People just believe inflation is higher so they know theyre going to pay for . Well, absolutely. The Conference Board does a survey of households, consumers every month, and the expected inflation rate over the next 12 months is 5. 7 . The folks in michigan that do the Consumer Outlook and at the Federal Reserve in new york have numbers in the 3s. If you add them all together, youre up over 4 . To say that the Inflation Expectations is anchored is silly. If they are anchored, theyre anchored in double 2 . My feeling is this makes it easier to take a 7 mortgage although the number of homes being sold is down at the resale level, the prices are being sustained and raising again. Why is that . People expect prices to go up. They expect wages to go up. Ashley what about the fed, peter . You know, should we give any credit to the fed . Because, yes, or they raised rates to this level, but the economy has remained for the most part resilient, or is that changing . Well, the resilience of the economy largely has to do with consumer spending, and we still have about a trillion dollars in the hangover savings from the pandemic, money that wasnt spent. Wells fargo has done a very good analysis of that. And that probably isnt going to run out until the First Quarter of next year. So the recession is coming, but its just coming later. For example, wells fargo has a mild recession the second and Third Quarters of next year. The thing about it is this slowwalking on inflation has longterm consequences. In the short term, its much harder to raise money, for example, for startups right now with these high rates and so so forth. The longer you take to curb inflation, the more you have a problem of it baking in so you cant get rid of it at all, and the longer the period where youre not investing. Look at whats happening to new Home Construction because of this. Even after youve tamed inflation, you will have a smaller supply of homes down the road for the next fed chairman to deal with, with the next round of inflation because you took so long. Really this is kind of like having a bad fever. The only way to knock it out is to knock it out. Not this notion that the you can may games. I mean, after all, when was the last soft landing you lived through . Ashley yeah, good point. Im 74, and we havent had one in my lifetime. [laughter] ashley very quickly, peter, the economy, it has gotten a boost, has it not, from defense spending . Weve got two wars going on in ukraine and israel. Is that enough to help offset bidenomics . No, because essentially the problem with bidenomics is not enough demand; rather, too much spending and too much inflation. The reality is we need to help the ukraine, we need to help israel, we need to strengthen our border, all the things that joe biden wants to do. But we spend too much money on social programs, and that has to stop if were going to be able to afford to do these other things or were going to have continuing inflation. You know chairman powell if enables inflation, but it really tarts in the west wing of the starts in the west wing of the white house. Ashley yeah, spending, spending, spending. As he alluded to, our unsustainable fiscal path. He knows the problem. Hes a good diagnostician, he just doesnt want to do the surgery. [laughter] ashley right. He does not. Well have to leave it there. As always, peter, terrific stuff this morning, thank you for joining us. Take care. Its nice to be with you. Ashley thank you. Same here. Its not too late, by the way, to be on the show today. Dont forget to send in your friday feedback. Email your questions, comments, critiques, whatever you like to varneyviewersfox. Com. And then theres this, a new report from the Manhattan Institute that estimates a nationwide reparations plan would cost taxpayers 15 trillion. So the question is, where does the white house stand on that issue . Where are they going to get the money . We have that report next. vo Verizon Small Business days are back. From october 16th to the 22nd. Get a free tech check and special offers. Like a free 5g phone. Plus, switch, keep your number, and get up to 300 off. With verizon business. Its your business. Its your verizon. Explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. 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. Liberty mutual customized my Car Insurance and i saved hundreds. With the money i saved, i started a dog walking business. I was a bit nervous at first but then i figured its just walking, right . [dog barks] oh. No its just a bunny calm down taco. Sit duchess. Stop sesame no no. Archie walter dont, no, ahhhh. Ahhhhh youre lucky youre so cute. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. In a world moving toward clean energy and electric transportation. The future is in Battery Metals. Ion energy is a driving force poised to support asias booming Battery Metals supply chain. Ion energy. Hi, im katie, ive lost 110 pounds on golo in just over a year. Golo is different than other programs i had been on because i was specifically looking for something that helped with insulin resistance. I had had conversations with my physician indicating that that was probably an issue that i was facing and making it more difficult for me to sustain weight loss. Golo has been more sustainable. I can fit it into family life, i can make meals that the whole family will enjoy. It just works in everyday life as a mom. Ashley cities and states across the u. S. Are looking to establish some sort of reparations program. A new study estimates how much a nationwide reparations plan would cost taxpayers, and i can promise you, its eyewatering. Kelly ogrady joins me now. All right, kelly, what exactly are we looking at . Reporter well, ashley, it would be trillions and trillions, likely of taxpayer dollars. I mean, youve seen this push for reparations explode especially in liberal cities and states over the past year or so. But i want the triangulate that number referenced in the new study. The manhattan the institute says it could cost 15 trillion to close the wealth gap between black and white americans, and the study found that over 30 million black americans could actually with eligible for reparations. And hen you look at a number of different factors like housing, land and depending on the size of the check, it could be less than that number, but it could also be trillions more than that 15 number. And, by the way, thats just across the nation. There are some states and cities that are considering their own individual programs, roughly two dozen cities and counties right now are looking at implementing Something Like that, a couple have actually already done a number of trials. Most notable on that map was california. Theres a task force that made recommendations going back to june. I reached out to the governor, theres no word yet on when we could see legislation, and thats partly because voters actually dont want these massive Cash Payments, ashley. Theres a, cberkeley poll ucberkeley poll shows 59 of voters dont support Cash Payments for reparations. Theres also the reality that most nonblack americans came here after slavery was abolished, and so theres a frustration of, okay, why would they have to pay for Something Like that . Youre probably wondering where does the white house stand . President biden has received a lot of pressure from his democratic creeings, but as of colleagues, but as of now, hes punted to congress. Ashley kelly, interesting stuff. Some very big numbers there, thank you so much. Quick check of the markets, weve been down across the board but modestly so as you can see. The dow off about twotenths of a percent, same story on the s p and the nasdaq, down a third of a percent. All right. Still ahead we have tammy bruce, president ial candidate and former Vice President mike pence as we take a look at the treasury yield, steve hilton and jason chaffetz. The 10 a. M. Hour of varney company,s lots to talk about, coming up next. adventurous music . Numbers right on your phone, so you can always be there for him with dexcom g7. This is american infrastructure. Megawatts of power, rails and open road, and essential services of every kind. All running on countless invisible networks, making it a prime target for cyberattacks. But the same aipowered security that protects all of google also defends the systems running americas infrastructure. For these services. For the 336 million of us living here. When youre looking for answers, its good to have help. Because the right information, at the right time, may make all the difference. At humana, we know thats especially true when youre looking for a Medicare Supplement insurance plan. Thats why were offering seven things every Medicare Supplement should have. Its yours free, just for calling the number on your screen. And when you call, a knowledgeable, licensed agentproducer can answer any questions you have and help you choose the plan thats right for you. The call is free, and theres no obligation. You see, medicare covers only about 80 of your part b medical expenses. The rest is up to you. Thats why so many people purchase Medicare Supplement insurance plans like those offered by humana. Theyre designed to help you save money, and pay some of the costs medicare doesnt. Depending on the Medicare Supplement plan you select, you could have no deductibles or copayments for doctor visits, hospital stays, emergency care, and more. You can keep the doctors you have now, ones you know and trust, with no referrals needed. Plus, you can get medical care anywhere in the country, even when youre traveling with humana, you get a competitive monthly premium, and personalized service, from a healthcare partner working to make healthcare simpler and easier for you. You can choose from a wide range of standardized plans. Each one is designed to work seamlessly with medicare and help save you money so how do you find the plan thats right for you . One that fits your needs and your budget . Call humana now at the number on your screen for this free guide. Its just one of the ways that humana is making healthcare simpler. And when you call, a knowledgeable, licensed agentproducer can answer any questions you have and help you choose the plan thats right for you. The call is free, and theres no obligation. You know medicare wont cover all your medical costs. So, call now and see why a Medicare Supplement plan from a company like humana just might be the answer