and interest rates are not budging. one rate cut this year, it hasn't happened yet. welcome everybody, i'm neil cavuto. rustica yearly, how all of this is playing out. >> is like christmas morning for economists. he got the fed decision and the ci reading all in one day be! now rates remain unchanged for now, but the messaging did provide something to chew on. rismond to bring it down to the cpi report and then want to give him -- it give you his reaction to it. cpi headline numbers came lightly cooler than expected, looking for yearly up 3.4 percent, that came in at 3.. month over month, it remained unchanged so that was good but with that all in context, it is still well above the fed's target of 2 percent. let's switch to court cpi, that is when you strip out food and energy, you see if it's sticky, they came in at 0.2 percent, cooler than expected but higher than the headline month over the month. does that mean? inflation is more ingrained in the items i don't flecks as much. the biggest driver of that stickiness is sheltered, your home prices rent, taking up 0.4 percent month over month, 5.4 percent yearly. onto zoom out to what president biden took off his january 2021, shoulder up 21.4 percent. we have seen the polling, it is a big issue for young voters. as a hold, cpi came in cooler than expected and a big reason was energy, prices down 2 percent month over month still up 3.7 percent for the year. but with the right direction, foreign powell address today cpi report in the feds decision press conference, here with his reaction. >> we did see today's report as progress. building confidence. we don't see ourselves as having the confidence i would warrant, beginning to loosen policy at this time. >> so progress but not there yet. that was really the overall messaging. i will note, his tone was confident. we are seeing a demand pool, while retaining a strong labor market. the signal we got from him as one rate cut it this year but not until they are confident we are moving towards at 2 percent target on a sustainable basis and will close with this, you remember that famous powell visit at the end of last year the end up being premature? that caution you hear from him is understandable. >> neil: kaley o'brien he, thank you very much. that is where we stand, one rate, maybe this year. when we started the year with the markets thinking we would see six of them, of course at number never materialized. four cuts next day, four cuts the year after that. the fed saying the lending rate right now standing right now as these food prices and continuing to rocket, will go down from around 5.25 percent, vibrant represent. in a couple of years, maybe down to around the 3 percent neck of the woods twomak that is what has been telegraphed as doable. the former dallas fed advisor, which she things of that, danielle? argosy the best plans cannot be undone but this is a lot of plans and down. i am surprised there's not a more of a shock effect. >> you know what i am to. i am surprised they are not taking a little bit more of a victory lap, assaying for the better part of the last few years they were concerned that services inflation was what was to sticky and that largely reflected americans doing all kinds of traveling to. i see on that side of the screen, bacon, i love bacon. but we are as a year-over-year declines in rental call rates, hotel rates, airfares. so it is pretty apparent to the fact that we had to spend so much onto the food we put on the table, in the gas on the gasket tank, in the shelter over our heads which by the way, for generation z., that is more important. the rent is more important in the generation z. generation than the overall economy. but the price that americans having to pay for their essentials is making it to where they can't spend on things they want to spend on. and that is a real problem given we are less than five month of from the election. >> neil: you know we made a big deal of this may retail inflation, the cpi, inflation at that level increasing 3.3 percent year-over-year. does a focused on the federal reserve, this 2 percent ago. without getting wonky about it, do we have to be at that before it moves much further along a ford moves? >> while given policymakers themselves slashed from three anticipated rate cuts now one this year, i mean theoretically where going all the way out to the december meeting. i think they have said unequivocally, we have to be much more convinced that we are headed from 3.3%, and started to present or with the core pce which is in eva -- even stricter measure -- two%. and started the eraser inflation expectations for the rest of the year and that's indeed what caused them to lower expectations for there to be rate cuts this year. this is not good news though for the housing sector, for the interest rate tentative automobile sector, it is very difficult for average working men and woman in america to gain access to credit right now. >> neil: and the backdrop for this, we have a lot of debt, and that debt is affecting interest rates right now staying stubbornly high. arrays those with a former house speaker paul ryan were yesterday, and he looked at it as sort of a bipartisan issue. onj to respond to this, this is paul ryan yesterday. >> robot because's and democrats are spinning too much, too much debt, vise versa. they don't get past psychotic we had to do something, you have to do all of this because that is political suicide. by donald trump made clear he does not want to touch that. >> and that is my point, it is not political suicide. fast-forward to myself, in the house republicans for eight years we passed those votes, -- >> neil: but warned each of those -- >> we still won our election. >> neil: was at you? >> no, summary that look like me. [ laughter ] my point is we do not have series politics right now and have debt crisis. >> neil: by this something we continue to was a past the graveyard. >> we can only whistle for so long. at some point we have to have a bipartisanship working for every american man and a woman. we know donald trump wins the election, those cuts, additive to the deficit immediately. you can day that 35 trillion and put it at 36 trillion on day one and we will have to serve as the costs of all that interest, with the federal reserve told us today is going to be much more stubbornly high. if nothing else neil, may be keeping interest rates as high as the fed intends to keep them at will force policymakers, will force politicians to the negotiating table to say you know why, we got to chip away at this for the sake of our national sovereignty. >> neil: you know daniel, of the market rates have been coming down. the feds have no control over that. i wonder what you make of that, the markets anticipating a slowdown? anticipating eventually rates over which the fed does have control will come down? or is or something bigger and missing? >> out of thank you're missing a thing to. i think the markets are reflecting the reality -- i do not think you are missing a thing -- we restored 1.358 million jobs in this country in the last six months at a loan of her are refilled them to the same extent with part-time jobs to make this income destruction. there's a reason americans feel that inflation is higher than it is, why is that? because her paychecks are not keeping pace with the growth of inflation, inflation adjusted basis, americans feeling they are falling further and further behind immaculate is highly problematic and that is being reflected in market rates. markets are reflecting a slowdown in the u.s. economy, six tenths of a percentage point increase in the unlimited rate behind that, every one tenth of a percentage points, there are people losing their incomes. >> neil: boy very well. thank you very much. daniel on foxbusiness and fox news. that is a full-time task my friend. again the federal reserve staying where they are, that is a seven strata meeting they have been keeping it is pause in effect with little wonder and little hope right now that they will be aggressively cutting rates anytime soon. only one rate cut now is anticipated. remember we started with the markets banking on six, that did not happen. that is what i tell you, the markets are sometimes impressive but not always. ♪ jardiance! ♪ ♪ it's a little pill with a big story to tell ♪ ♪ i take once-daily jardiance ♪ ♪ at each day's start! ♪ ♪ as time went on it was easy to see ♪ ♪ i'm lowering my a1c! ♪ jardiance works twenty-four seven in your body to flush out some sugar. and for adults with type 2 diabetes and known heart disease, jardiance can lower the risk of cardiovascular death, too. serious side effects may include ketoacidosis that may be fatal, dehydration that can lead to sudden worsening of kidney function, and genital yeast or urinary tract infections. a rare, life-threatening bacterial infection in the skin of the perineum could occur. stop jardiance and call your doctor right away if you have symptoms of this infection ketoacidosis, or an allergic reaction. you may have an increased risk for lower limb loss. call your doctor right away if you have symptoms of infection in your legs or feet. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. ♪ jardiance is really swell ♪ ♪ the little pill ♪ ♪ with a big story to tell! ♪ the smooth writing, longest lasting pilot g2 has long been the hero of gel ink pens. and what hero doesn't have a dark side? 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>> hello, right now we know these eight suspected terrorists are all in federal custody being held by ice. for now, a source familiar with the case tells me a majority of these guys were all arrested right here in new york city. i talked to a democratic councilman who said he is sick of hearing but what is happening out of the border, is a fed up and thinks new yorkers are not safe anymore, listen. >> it is a frightening. we're headed for another 911. i predicted that, i think we should have a secure border, we should know was coming into our country. we don't. millions of migrants and illegal aliens have gone through. it is a situation where we just really rolling the dice here. >> in at just the last few days, the group has been from tajikistan were arrested, of us to get us believe they have ties to isis according to sources these guys are "fully vetted" at the southern border but somehow nothing was flagged so they were allowed into the united states. we can tell you it wasn't just a stinger by ice and federal officials in new york city but also in los angeles and in philadelphia where they made a majority of these arrests. according to the new york post, the feds used a wiretap try to listen on these guys who ended up being arrested hearing one of the guys talking about bombs. one of these men that chinese men have not been charged with any crimes, the are in ice custody case ali will be held and then can be sent back to tajikistan. >> neil: thank you very much, want to go to nicole parker, making sense of this fearmongering. this time thought about fearmongering, this is a legitimate terror threat. of course a former fbi special agent, fox news contribute her. nicole when i heard that among the countries cited here were those from tajikistan a customer chided, nowhere near our border, at our border and taken our border. i'm wondering what is going on here? >> first of all kneeled, this is anything about fearmongering cupe this is a fact, over nation is in a very vulnerable and dangerous situation right now. for the last three and a half years, the united states apart and opened border and it's an open invitation for any to come across the border, all out welcome and that is a problem. foreign terrorist organization groups are capitalizing on this open border. and they are taking advantage of this for every single moment that they can because there's nobody stopping them. they can come in as they would like. i think the important point to discuss is vetting cupe vetting is virtually impossible. you're trying to bet individuals, customs and border patrol agents save their hands are basically tied. they are told we have to get this many people through and processing and a goes through. you need to shorten the mud of questions you're asking. on top of that you have got a ways back no idea where they are. haven't even encountered anybody from law enforcement. and some individuals are providing fake ids, why would they provide proper identification? they have the terrorist screening centre cut a database used to look up and say this individual is a potential terrorist, are they on a watchlist? that system is only as good as the data entered into the system. individuals that have never had an encounter in the united states, no derogatory information or any information at that. how we supposed to stop a terrorist when there is no information, you don't even know if it's a true name? this is the problem for the united states and the problem for the fbi. >> neil: wonder how we as a country got those. a lot of people, whole generation and getting my two sons born after 911, it's in their history books but they have not lived it, we all went through and are member would have been in moscow coordinated by isis, the theatre centre in public buildings, that was only a few months ago. it is not resonate for a lot of americans upfield all right, that is over there, it is not over here. what detail those folks? >> what i have to tell you is that i myself was a witness to the 911 terrorist attacks the morning of september 11th, was in the world financial centre and have never forgotten that david eby never, ever. to see individual's jumping to their death, it is unacceptable, it is evil and they cannot occur again in our country. but with the glow's gross incompetence and negligence of this current administration, allow an individual's to come to our country undivided, we don't know who they are, we don't know when they are and how the fbi's on to the feds. i wanted to be on the offense, owners to be on control what was happening, now america are like sitting ducks! i know fbi agents now who don't see but well at night, because you know we get attacked, he will be the ones picking up the pieces. >> neil: we talk about the numbers apprehended at the border, leaving aside the numbers, it was more than five years ago that they were primarily from about five or six countries including mexico, guatemala, ecuador, that sort of thing. now includes editor than 120 some countries. is a more diverse situation, from some of these terrorist states. that does not happen accidentally. >> not accidentally at all. they are capitalizing and they are saying look, we have the surgeon window of time and we're going to go for it, nobody will stop us stop us. you think that china, iran, india, all these individuals coming from these countries that hate as, there is nothing they would like kneeled into recap absolute havoc, destruction and terror in our country. that cannot happen. now let's hope for the past but i hate to tell you this, this is just the tip of the iceberg. >> neil: i hope you are wrong but he have been pressing on the stuff, good seeing you. i think we needed to hear from you. former fbi special agent, nicole parker. not to put more fear and you now but from crews trips to ghana shows, have you seen that this pentagons and the caribbean? imagine you're on a crews ship, and you are seeing this russian military vessel, there are several here. what the hell are they doing? that is next, here. after this payment hate parallel parking, and occasionally, your right foot gets a little heavy. the lexus es didn't begin in a studio — it began with you. ♪ (vo) if you have graves' disease, your eye symptoms could mean something more. that gritty feeling can't be brushed away. even a little blurry vision can distort things. and something serious may be behind those itchy eyes. up to 50% of people with graves' could develop a different condition called thyroid eye disease, which should be treated by a different doctor. see an expert. find a t-e-d eye specialist at isitted.com >> neil: house republicans still get to vote on holding the attorney general marry garland, refusing to these demands to get audio recordings of that presidential interview with biden. were on that after the. >> you know it's crazy? 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(mom) my turn. let's get the rest of these plants in. organic soil from miracle-gro has grown me the best garden i have ever had. good soil, and you get good results. this soil will blow you away. it's the martha stewart of soil. >> neil: all right, provoking us and i were known -- oleh neighborhood in the caribbean? looks like where the russians are up to, reminders since a lot of their ships are coming in and out of cuba or in that neighborhood that it's 1962 all over again and a possible crisis, the russian say nothing going on here, move on. general jack game concern, fox news contributor, and so much more for the study can waste chief of staff, general, this is weird, right? we think of prerogative behavior at sea, in other areas, the indian ocean, this is a little awed and so is bringing up some history that is not too pleasant, would he think? -- awed. >> the russians have done this routinely for a number of years but haven't done it since 2019. obviously offer the short of the united states in cuba. i think there's a couple of things happening here. one, support through their allies, cuba which is having a devastation a time with their economy. so many ships will likely go through venezuela for the same reason. the other thing strategically i think russia and also china, they know that the united states is always had a preoccupation whether the western hemisphere, sort of belongs to us and we are protective of it. they would love to see as get vomited down by the fact that they are involved in the western hemisphere. multiple administrations, republican, democrats, will not fall for that.