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This is a rush transcript of “Your World with Neil Cavuto” on September 21, 2022. This copy might not be in its last type and could also be up to date.
NEIL CAVUTO, FOX NEWS ANCHOR: All proper, you are not kidding, Martha.
The Dow sliding, now at session lows right here, ending the break day 522 factors. You in all probability know the acquainted drill. Rates go up, shares go down. And one thing the Federal Reserve did at present signaled that charges may proceed going up, possibly at an aggressive tempo, possibly so much longer and so much greater than anybody thought.
By day’s finish, we had been shellacked, with the chairman of the Federal Reserve primarily saying, I feel I’ve bought a deal with on this, nevertheless it may very well be a bumpy journey.
Welcome, all people. I’m Neil Cavuto. And that is your, nicely, purple world, a number of purple, a number of promoting, all the foremost market averages, once more, on the prospect that we’re taking a look at a lot greater charges down the highway. We bought our third three-quarters-of-a-percent hike in a row, with indicators that possibly, by year-end, charges may very well be wherever from some extent to point-and-a-quarter greater than the place they’re proper now, or nicely north of 4 %.
And some now questioning whether or not even that will likely be sufficient to cope with inflation that’s double that.
Let’s get the learn on what occurred at present and why.
Jackie DeAngelis — Jackie.
JACKIE DEANGELIS, FOX BUSINESS CORRESPONDENT: Good afternoon to you, Neil.
This is the Fed’s fifth rate improve this yr. It’s the fourth improve in a row and, as you identified the third time the market is seeing three- quarters-of-a-percentage level. Now, the market was buying and selling greater for many of the session earlier than the choice, indicating it was anticipating a 75-basis- level hike at present, quite than the complete level proportion level that solely a small group of market watchers nonetheless thought was potential.
But then, when the information broke, markets retreated. And they did that as a result of the underside line is that this. As the Fed hikes charges making an attempt to tame persistently excessive inflation, the financial system will sluggish, shoppers and companies will see greater borrowing prices, and that is going to affect the financial system.
The client aspect, actually necessary. The rate on a 30-year mounted mortgage is over 6 %, in comparison with 2.86 % presently final yr. If you had been shopping for a $500,000 home, a $400,000 mortgage, you’d see a forty five % improve in your month-to-month cost.
And it would not finish there. Car loans may break by 6 % as nicely. And bank card rates of interest, already on the very excessive aspect, could proceed to creep up too. The flip aspect of this, you are lastly going to earn somewhat bit extra curiosity on your financial savings. Some high-yield financial savings accounts on-line are paying near 2 %, extra for C.D.s.
Some folks argued these charges needs to be a lot greater. But, nonetheless, Americans are seeing their financial savings dwindle, together with their retirement accounts, due to inflation and all this market volatility. That’s the rationale bank card borrowing is up 13 % yr over yr.
Now, the federal government will not be exempt from greater charges both. The Committee For a Responsible Federal Budget had a warning: This rate hike may add $2.1 trillion to federal deficits over the following 10 years — Neil.
CAVUTO: Incredible. All proper, Jackie, thanks for that.
To Art Hogan proper now of B. Riley Wealth.
Rather a lot much less wealth at present, Art. And I seen we had violent, manic swings, up as excessive as 300 factors, down — we closed out our lows of the day, 522 factors. So no matter traders briefly took from this that was optimistic, they shortly had been disavowed of that notion.
Who’s proper?
ART HOGAN, MARKET STRATEGIST: Yes, I imply, it is fascinating.
These Fed determination days are at all times unstable. And the — and, often, the primary transfer is the flawed transfer. And I feel that what occurs between 2:00 and 2:30 is mostly a knee-jerk response. And so all we’ve got is the assertion and the dot plot and the abstract of financial projections.
But then, if you get into the tone of the presser and the Q&A, you actually get the sense that Jay Powell desires to stay as agency in his battle in opposition to inflation as he mentioned it in Jackson Hole again in August. And, clearly, the shock right here — and Jackie pointed this out properly — is that our estimate for the place the Fed funds rate can be on the finish of this yr coming into at present was 4.25. And now it is 4.4 %, in accordance with the Fed, proper?
So that’s — that is the large shock. And the Street would not wish to be shocked. As a matter of truth, we are likely to overestimate how far the Fed will go. And the opposite shock is their terminal rate, which is able to occur within the first quarter of ’23, which means after they cease elevating charges and depart charges the place they’re for a time period, is 4.6 %. That was at 4.5 % coming into at present.
So though it would not sound like a lot, it definitely is greater. And then the opposite piece of the puzzle, it sounds prefer it’s going to be for longer. It seems as if the Fed would not reduce charges till someday on the finish of ’24 to ’25. So we’ve got bought a better, for longer mentality within the markets now.
And the markets simply wanted to readjust to that.
CAVUTO: Art, in listening to Jerome Powell, the chairman of the Federal Reserve, in talking about this, he was type of bumming me out, as a result of he was type of saying, nicely, I feel we’ve got bought a deal with on this. I’m paraphrasing right here. Not precisely positive. We’re going to proceed combating in opposition to inflation.
So he has as soon as once more eliminated any doubt that he is going to lighten on the gasoline pedal as he continues to do that. But I ponder if individuals are studying into that, A, this goes on longer, charges go greater than we thought, however, within the course of, we fall into one thing fairly dangerous, like a recession?
What do you assume?
HOGAN: Right, sure.
The pushback in opposition to that — and I do not disagree with you in any respect, Neil. I actually consider that it is a Fed that does not know precisely how far they must go, as a result of they do not know how shortly inflation will possible come down.
And we’ve got seen some inflation come down, industrial metals, gasoline, and, to a sure extent, the housing trade, however not sufficient. And I feel that that is — I feel that is the message he is making an attempt to get throughout.
But by way of going to date that we’re going to slam right into a deep and lengthy recession, form of juxtaposed in opposition to the place we’re with the labor market proper now, actually would not line up. So, to the extent that we possible will likely be in a recession, it possible will likely be brief and shallow.
But the underlying financial system stays fairly sturdy. So the purpose at which inflation lastly will get near the Fed’s goal for long-term inflation and with inflation expectations type of anchored at some fairly cheap ranges, we’ll possible see some financial harm. We will possible see unemployment go up, however I do not assume we’re speaking about something like 2008 and 2009, and definitely not going again to 2000.
This is way more of a form of backyard selection recession that is going to unfold some ache round.
CAVUTO: Yes.
HOGAN: But it is the value we’re going to should pay to get inflation again underneath management.
CAVUTO: Yes. And these costs we pay nonetheless get pricier. And that is the issue right here. Can this begin to have an impact on bringing these charges down?
Thank you very a lot, my good friend.
Art Hogan on that.
The political fallout is sweeping, as you may think, Republicans seizing on this as proof proper now that the financial system may very well be going to hell in a handbasket and charges are going to be going up for as lengthy and far as the attention can see. Democrats, within the meantime, seizing on the nice financial information that reveals job positive factors are nonetheless good and the backdrop for that is nonetheless good.
Therein lies the talk, however all of this after all, in a midterm election yr. You might need heard a factor or two a few massive election lower than seven weeks away. Normally, when the Federal Reserve is busy tightening in an setting proper as much as Election Day, as this may very well be, it isn’t good for the occasion in energy.
Jessica Tarlov right here, Democratic strategist, Kellyanne Torrance from The New York Post, so — Kelly Jane. I apologize.
Kelly, one of many issues that first got here up was this concept that possibly the Fed can cool it. People had been hoping they may calm down and cease with these massive rate will increase. The sign at present from the Fed was, no, no, no, that is not going to be the case. And historical past means that rate hikes proper by an election may be dangerous for the occasion in energy.
So play that out.
KELLY JANE TORRANCE, NEW YORK POST: Yes, superb factors, Neil.
And I feel Joe Biden could come to remorse protecting Jay Powell on as Federal Reserve chair. We’re seeing the inventory market dip, because it has with these rate will increase earlier than. And I feel this one was vital. You had two quarters of financial contraction. As you famous, mortgage charges are going sky-high. Could have a crumbling housing market.
So we’ve got already seen some deflationary proof. And so I do not assume actually this rate was — a rate hike this excessive was wanted. So what’s it going to do? I feel it would harm the financial system. It may make any recession we could also be in or about to be in even worse.
And Republicans, after all, nobody desires to want a foul financial system on the nation, nevertheless it definitely…
CAVUTO: It’s not an amazing — to your level, not an amazing setting.
And if you’ll give it some thought, Jessica, the setting the place you could have charges rising, otherwise you’re coming over a interval the place charges had been rising, or the impact of what occurs as these charges are rising, it is very robust for the occasion in energy, even if you happen to return, definitely, again in 1980, the place you had a rising rate setting.
That not solely bought much more Republicans elected. It bought that individual president thrown out, Jimmy Carter. And I’m simply questioning, with that as a backdrop, and the truth that that is extra typically the case than not, ought to Democrats be nervous?
JESSICA TARLOV, FOX NEWS CONTRIBUTOR: So, I feel that it goes past simply the affect of an setting the place we’ve got a variety of rate hikes, the truth that historical past in general reveals that the occasion in energy, particularly when you could have had management of the entire levers of energy — we’ve got the Senate, the Democrats, and the House — lose, and typically lose tens, dozens of seats.
And that was the expectation going into this. If we had had this dialog originally of the summer time, I’d…
CAVUTO: But do you assume that is worsening it, Jessica? You’re fairly proper, as a result of it appeared like — and it nonetheless could be the case — the place Democrats are making some positive factors…
TARLOV: Yes.
CAVUTO: … possibly based mostly on the Roe v. Wade, however this form of will get us again to, it is financial system, silly, and we do not like this.
TARLOV: Absolutely.
The financial system stays the primary problem, nevertheless it has come down in ranges of significance. And I feel, at this level, as a result of there’s been so many months of getting conversations about 7, 8, 9, 10 % inflation ranges — and we do have so as to add that it is a international phenomenon and Jay Powell is doing the identical factor that individuals are doing all throughout Europe to attempt to comprise the inflation.
But folks have a baked in perspective on what they consider the financial system. Just as a result of Jay Powell did this at present does not imply that somebody who thought the financial system was nice yesterday awakened and was like, oh, no, really, I feel it is rubbish. I’m going to begin voting for Republicans on this.
(CROSSTALK)
CAVUTO: Well, I do assume the backdrop, to not belabor that time…
TARLOV: No.
CAVUTO: And, Kelly, possibly you possibly can assist me with this, that the backdrop is what’s necessary. So I feel individuals are reminded about greater costs on a regular basis they go to the shop, whether or not they’re Republicans or Democrats. We all bought to eat and paying much more for that.
And I’m simply questioning, Kelly Jane, from this and the expertise prior presidents have had in an setting like this, it is a bounce ball. In midterm elections, an setting like this does put the occasion in energy behind the eight ball. But it would not essentially imply that that interprets two years later.
In different phrases, presidents had come again from this form of morass, even Ronald Reagan in 1982, when it appeared like he was a sure one-termer after they misplaced 26 seats. But he got here again to win fairly handily. The similar with Bill Clinton in an setting like this in 1994, and, after all, he got here again to win fairly handily.
So, separating the 2, what do you assume?
TORRANCE: Yes.
And, after all, Barack Obama talked about getting shellacked within the midterms and then got here again. But, sure, I imply, folks do vote with their pocketbook. As you say, it is the financial system, silly. And, sure, points like abortion or having extra impact than we thought they might have a yr in the past.
But, sure, I feel, as you go searching what’s going on, we’re seeing what occurred in some states that attempted to place big restrictions on. Some folks fought again and voted in opposition to it.
CAVUTO: Right.
TORRANCE: So I feel the financial system is going to once more develop into the problem. And, after all, sure, I see the costs going up day by day. And all people I do know is speaking about this.
And you bought to remember, too, with what the Fed has been doing, after all, in response to its simple cash of — within the final couple years, has despatched inventory markets down. And folks have misplaced — we’ve got misplaced about 40 % of GDP and family wealth.
Now, I do not take into consideration that an excessive amount of as a result of I’m not planning to retire anytime quickly. But a number of Americans are, and particularly a number of Americans who vote are. And that is the draw back of the 401(ok)s going down. That impacts them too.
CAVUTO: No, you are proper. That’s the chance. By the best way, in terms of retirement, and lots of people urge me to take action each single day. It actually hurts my emotions.
(LAUGHTER)
CAVUTO: But, Jessica, let’s step again from this and the place this goes, since you’re fairly proper. The underlying job market could be very, very sturdy. People are nonetheless shopping for stuff.
They cannot hold sufficient of those new Apple iPhone 14s on the cabinets. They’re going like loopy. They’re not low-cost. So, you are fairly proper. There’s a little bit of a dichotomy going on right here. But I’m questioning the way it’s translating, as a result of possibly these are simply wealthy of us shopping for stuff.
Or how do you take a look at it?
TARLOV: Well, if you happen to take a look at the stories out of massive banks, like Bank of America — you look — AT&T launched a report — they’re saying that they assume that the financial system is lots wholesome. Your final visitor mentioned that as nicely, that we nonetheless have a sturdy financial system, and we could be in a shallow recession proper now or heading into one.
And we have not actually seen that earlier than. Larry Summers, who has clearly been a focus concerning the dialog on what’s going on with the financial system, and he was the deciding issue, primarily, getting Joe Manchin on board with the skinnier model of the Inflation Reduction Act, has mentioned that it is a weird recession, whether it is one, that we have not actually seen it play out like this.
And so we’re following all these conventional indicators which may not…
CAVUTO: Yes, nevertheless it does damage, Jessica, does it not, if you inform folks, don’t fret, issues are nice?
TARLOV: Oh, I…
CAVUTO: There was that outdated joke that economists would inform me. Neil, it doesn’t matter what the numbers say, if individuals are telling you it looks like a recession, then it’s.
TARLOV: 100%.
CAVUTO: Yes.
TARLOV: I imply, I really feel it myself. We all do. You take a look at your Amazon card, and it is the identical because it was three weeks in the past even and you are like, oh, wait, that value like 30 cents greater than it did at that time.
And, clearly, there’s that picture of Joe Biden signing — having the signing ceremony with the Dow down 1000 ticker proper to the aspect of it, actually horrible stuff that, in Democratic strategists’ thoughts, this — worst midterms nightmare, and I’m about to begin residing it.
So, clearly, these items usually are not essentially positives for the Democratic case.
CAVUTO: All proper.
TARLOV: But I do assume it’s baked in at this level what folks really feel about what’s going on within the financial system.
CAVUTO: Yes, all of us see it for ourselves.
All proper, thanks, girls, each of you.
TARLOV: Thanks, Neil.
CAVUTO: Again, the Dow down about 522 factors, across-the-board shellacking within the markets right here. Might be a short-lived occasion. Things stabilize tomorrow. We swung with an 800-point vary. You do not see that day by day.
In the meantime, so many different massive developments to let you know about, together with the president of the United States on the U.N. hammering the Russians, and notably Vladimir Putin. But that message, particularly when it got here to Mr. Putin, let’s simply say, falling on deaf ears — after this.
(COMMERCIAL BREAK)
CAVUTO: All proper, we could be irritated on this nation by rates of interest that go greater and greater.
I consider, in Ukraine, they’re nervous about extra critical issues, life- and-death issues, and, after all, this wild card the place Vladimir Putin is realistically trying on the possibility of utilizing nuclear weapons in Ukraine.
The president spoke out about that earlier at present on the United Nations.
That’s the place you can find our Peter Doocy — Peter.
PETER DOOCY, FOX NEWS WHITE HOUSE CORRESPONDENT: Neil, President Biden has not in New York and won’t in New York name as well Russia from the U.N. — from the U.N. Security Council, despite the fact that he says that what Russia is doing is violating the very constitution of the United Nations.
(BEGIN VIDEO CLIP)
JOE BIDEN, PRESIDENT OF THE UNITED STATES: And, to be very blunt, allow us to converse plainly. A everlasting member of the United Nations Security Council invaded its neighbor, tried to erase the sovereign state from the map.
(END VIDEO CLIP)
DOOCY: Russia is rounding up extra troops to ship to battle in Ukraine. And they’re threatening to make use of nuclear weapons in Ukraine.
And President Biden talked about all that, however he did not point out one other massive piece of the puzzle.
(BEGIN VIDEO CLIP)
NIKKI HALEY, FORMER U.S. AMBASSADOR TO THE UNITED NATIONS: … he did not do, which I want he would have gone additional, is name out the international locations which are serving to Russia. Call out the truth that China helps. Call out the truth that Iran is sending drones. Call out North Korea for doing rockets.
He may have made {that a} larger isolation, if he would have referred to as these international locations out.
(END VIDEO CLIP)
DOOCY: In addition to Russia, President Biden says he sees the opposite defining problem for these diplomats gathered in New York as local weather change.
And he desires some credit score for doing his half by signing that Inflation Reduction Act.
(BEGIN VIDEO CLIP)
BIDEN: Our investments will even assist scale back the price of creating clear vitality applied sciences worldwide, not simply within the United States.
This is a world game-changer, and none too quickly. We do not have a lot time.
(END VIDEO CLIP)
DOOCY: And that is the most important admission but that the Inflation Reduction Act is not actually about inflation discount. It is about local weather change. And that’s what the president was bragging about on the world stage earlier at present — Neil.
CAVUTO: Yes, somewhat off-putting there.
Peter Doocy on the United Nations.
Thank you, Peter, as at all times.
With us proper now — and I’ve talked to this girl from the very starting of this warfare, at all times was struck by her bravery, her countrymen’s bravery right here. She’s with us proper now. Kira Rudik is a Ukrainian Parliament member, sort sufficient to hitch us.
Very good to see you within the flesh and all of that.
KIRA RUDIK, UKRAINIAN PARLIAMENT MEMBER: Good to be right here. Thank you a lot for having me.
CAVUTO: You know, we had been chatting through the break.
I can bear in mind when folks had been considering when the warfare began it could be over in days. Here we’re, seven-plus months, and the tide has turned, hasn’t it?
RUDIK: It has.
And, at present, I’m right here in New York. I used to be protesting with fellow Ukrainians alongside the U.N., demanding that Russia will likely be kicked off the United Nations.
CAVUTO: It would not appear to be it is going to occur, although. How do you’re feeling about that?
RUDIK: Well, calling — Neil, six months in the past, no one believed that we are going to stand for greater than couple of days.
CAVUTO: Very good level. Very good level.
RUDIK: Then no one believed we’ll obtain heavy weapons.
CAVUTO: Yes.
RUDIK: Then no one actually believed that we are going to be going on counteroffense. Now watch us.
So, proper now, I can solely let you know, we’re on the job. And we wish to kick Russia off the U.N. And we do consider that it’s going to occur, possibly not at present.
CAVUTO: What did you make, although — right here Vladimir Putin now speaking concerning the nuclear possibility. That’s somewhat scary.
RUDIK: Well, I do not assume that it was any totally different like six months in the past or 5 years in the past.
But, at present, when he made the speech, when he mentioned concerning the mobilization and nuclear weapons, I feel the voices which are there saying, Putin desires peace, will likely be extra silent. The voices that will say, oh, there’s a option to agree with him, would really cease, as a result of what we see, he solely understands one language, is the language of energy, language of power.
And because of this the plan that we’ve got within the Ukraine has not modified because the starting of the warfare. We will combat him. And we’ll proceed asking for extra and extra help.
Look how efficient we’re once we lastly began receiving the weapons that we want so badly. Look how nicely we are able to push him again and his forces.
CAVUTO: He’s simply referred to as up 300,000 reservists, on high of 137,000 further troopers. So he is trying all over the place for extra manpower to cope with this, however nothing appears to be working.
RUDIK: Yes, he mentioned that he misplaced solely, what, 6,000 males, however, for some motive, he wants 300,000 extra to proceed combating.
CAVUTO: It’s a great level.
RUDIK: So, like…
CAVUTO: But what’s it like for you, like, if you return? And you clearly have mates there.
How are Ukrainians simply placing up with this, seven months, on and on, never-ending?
RUDIK: It’s robust. Of course, it has been robust on everybody.
But it additionally — we all know that it’s on us to guard what’s ours, to guard our motherland. And I do know that each single Ukrainian is waking up with a query: What am I going to do at present to deliver our victory nearer? This is what I’m asking myself. This is what the Ukrainians all around the world are asking themselves. And because of this we…
CAVUTO: And you need Russia out, interval, proper?
RUDIK: Absolutely.
CAVUTO: This thought the place they annex among the jap lands and all that, they bought to go.
RUDIK: Of course they bought to go.
We are sovereign nation. We are free democratic state. And we’re defending what’s ours.
CAVUTO: So, these Russian-aligned jap province, they simply bought to get with it, that is all Ukraine, solely Ukraine?
RUDIK: Yes. This is straightforward as that.
CAVUTO: Got it. All proper.
Kira, so good seeing you. Continued good well being. You’re outstanding, as are her total folks, by no means giving up. And she’s proper to boost each single instance she simply did. When folks mentioned, it would not — it would not be very lengthy for the Russians to take over the nation, all the pieces would evaporate, Putin would come out answerable for all the pieces, it by no means occurred that means.
General Jack Keane on what occurred and why that occurred, as a result of the general, just about like Kira, mentioned, by no means surrender the combat — after this.
(COMMERCIAL BREAK)
CAVUTO: Donald Trump says it is simply the newest witch-hunt, New York’s attorney general going after his enterprise practices really going again greater than a decade. Is there something there?
We’re on it — after this.
(COMMERCIAL BREAK)
CAVUTO: All proper, Vladimir Putin is reaching out to get extra troopers, calling up one other 300,000 reservists. That has not occurred in that nation for many years. And that is on high of the 137,000 further troopers he form of culled from just about all around the world, wherever they had been, to get to Ukraine, and quick, to combat the nice combat.
But that good combat is, nicely, not going so good or nicely for Russia and Vladimir Putin. And he appears determined. But by additionally utilizing a nuclear possibility or saying he is open to 1, is that desperation getting actually harmful and scary??
General Jack Keane again with us. Always be taught so much speaking to the general. Kind sufficient to hitch us.
So, General, you typically remind me, sir, a few chief who’s trapped, a wounded animal in a nook can lash out in all kinds of the way, however clearly sending a sign to engulf the remainder of the world with him.
What do you make of it?
GEN. JACK KEANE (RET.), FOX NEWS SENIOR STRATEGIC ANALYST: Well, I feel principally the specter of the nuclear weapons is about fearmongering.
I imply, what he is trying to do is — clearly, I imply, he is shedding this warfare. It does not imply he is going to lose it. There is definitely is a chance for the Ukrainians to inflict that on him. And they do have the momentum. And that is all good.
And, all of the sudden, what he desires to do is reduce off the help. He is aware of that the help that they’ve obtained, notably from the United States, but in addition from the U.Ok. and different international locations, has really been fairly decisive in serving to the Ukrainians obtain this operational momentum.
And when all people talks about, nicely, it is a part of the DNA for them to make use of tactical nuclear weapons in the event that they’re combating a warfare, nicely, that situation is after they’re combating a warfare in opposition to a superpower just like the United States.
Here’s — we’ve got to unpack this somewhat bit, so it is sensible to the American folks, by way of what the results are. First of all, militarily, one tactical nuclear weapon wouldn’t do the type of harm, I feel, Putin would wish to do to the Ukrainian forces and the disposition of the folks as nicely.
But, politically, in all probability one can be sufficed. But what can be the results of that? Well, initially, they should cope with the radiation themselves, Russian forces on the bottom, and probably the Russian — the Russian folks themselves. And so that could be a horrible consequence for them.
The second factor is, a nuclear weapon exploded in Ukraine, in Europe virtually ensures that the United States would enter the warfare, as would NATO. And, pay attention, which means, for a truth, Putin loses. There’s little doubt. If the United States got here in unilaterally, he loses. We would not put 400,000 or 500,000 troops in there.
CAVUTO: But he has to — nicely, how does this finish, then, General? How does it finish?
If you consider it, his choices are few, however he cannot depart with out one thing, proper? And I simply talked to a Parliament member right here, who mentioned he isn’t leaving with any of our land, that is for positive. He’s not leaving form of taking these jap provinces and making them his personal. That’s not occurring.
So what does he return to point out the Russian folks for all of this?
KEANE: Yes, so I feel the place his head is now, I imply, after the Donbass area, he wasn’t in a position to be utterly profitable there, or solely about 40 % profitable.
After this profitable counteroffensive, he is aware of full nicely that he — this warfare would not finish in weeks or months, that he is in a protracted warfare, and that — he is enjoying for the lengthy sport, Neil.
CAVUTO: Yes.
KEANE: What he desires is put on and tear on the Ukrainian folks. And you could have mentioned this your self.
They get worn down by these casualties to their forces, lack of life to their households. The second — the second factor — and he is additionally counting on the Europeans and even the United States, however principally the Europeans, additionally to get worn down, vitality disaster this coming winter, financial points, inflation, all of that taking its toll. He desires to see Europeans within the streets protesting.
CAVUTO: Some of them are, General. Some of these European international locations are. They’re uninterested in it.
KEANE: Well, there is no doubt.
CAVUTO: Yes.
KEANE: And, pay attention, the Germans and the French have by no means been on this factor, Neil.
So he sees all of that. He’s enjoying for the lengthy sport right here. And that is what he desires. And I nonetheless assume, in his thoughts, he can nonetheless take a lot of that southern coast and name it a day sooner or later by negotiations because of. That, I feel, is type of an endgame.
We can solely speculate. But the concept of him utilizing a nuclear weapon and the consequence of him — that warfare increasing, and guaranteeing him a loss then, I feel that is distant.
CAVUTO: All proper.
KEANE: And, definitely, it is a risk as a result of he is thrown it on the market. But I feel it is largely fearmongering.
CAVUTO: Let us hope so.
General, at all times nice seeing you. Thank you, General Jack Keane, served this nation with nice honor and distinction as nicely.
All proper, the buses simply hold on coming proper now, these migrants arriving in New York once more. The numbers are getting fairly eye-popping right here, however a reminder from Republicans following all this and listening to all of the criticism, nicely, that criticism is not truthful and balanced — after this.
(COMMERCIAL BREAK)
CAVUTO: All proper, again to the border, extra buses from the border making their option to New York City.
Of course, this has been the drill currently, the place lots of people are complaining in these sanctuary cities of all of the buses coming to them and planes, within the case of Martha’s Vineyard, and a authorized battle again on that.
Alexis McAdams with the newest from Eagle Pass — Alexis.
ALEXIS MCADAMS, FOX NEWS CORRESPONDENT: Hi, Neil.
Well, lots of people are speaking concerning the migrants that had been in Martha’s Vineyard. But, actually, that is the epicenter of that migrant disaster. Right right here behind me, you possibly can see the Rio Grande River. We’re speaking hundreds of migrants each single day crossing that border.
And we noticed it once more this morning. Take a glance right here on your display screen. This is simply the newest group our cameras caught up with proper out right here in Eagle Pass, Texas, at the least 200 folks crossing the Rio Grande River into the United States now being processed by Border Patrol brokers, who’ve to go away patrols to do all of that paperwork.
This comes as sources inform FOX News that, for the primary time ever, the Del Rio Sector has surged previous the Rio Grande Valley, clocking in additional than 463,000 migrant encounters this yr. It’s not simply folks crossing on foot. Smugglers are additionally out in full power on Texas highways. Take a glance right here, this man posing as a driver for a transferring firm right here in Texas busted after investigators discovered almost a dozen migrants hiding behind that truck. Watch.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Oh, man, no good. All proper, you go and put your fingers behind your again for me.
(END VIDEO CLIP)
MCADAMS: And he was taken into custody fairly shortly, Neil. And that is type of the identical scenario out right here for lots of those drivers making an attempt to get by.
Now, as migrants pour into the United States, brokers inform us it is troublesome to know who even has a felony file or who these individuals are within the first place. Just this month, brokers arrested a Mexican citizen convicted of third-degree intercourse assault out in Connecticut. That’s the mug shot of Hilario Martinez-Ruiz there. Ruiz was deported again in 2015, however noticed by border cameras this month, arrested and will likely be deported once more.
Now, take a dwell look the FOX drone staff digital camera proper now. This is the look from the sky alongside the Rio Grande River, the place all this motion occurs right here day-to-day. Officials say many of the migrants are coming in from Venezuela, Nicaragua and Cuba, not a lot Mexico anymore, which is necessary to level out.
This morning, about 60 folks from Nicaragua had been in that group that ended up right here in Eagle Pass.
And again out right here dwell, Neil, I can let you know that individuals we’ve got talked to who’re developing and speaking to us simply right here as a result of they dwell fairly shut by and they wish to see the motion right here come up and speak about, when is the federal authorities going to step in and when is the president going to point out as much as Eagle Pass?
Because he would not should be right here for very lengthy to see these migrants cross in. And one other piece of stories that we simply bought in just some minutes in the past, Neil, is that the governor of Texas, Greg Abbott, issued an government order nearly an hour in the past designating Mexican drug cartels as terrorist organizations, pointing to that menace of fentanyl that is killing so many Americans each single day, Neil.
CAVUTO: All proper, thanks very a lot, Alexis McAdams in Eagle Pass on all of that.
Other developments we’re focusing on at present included a authorized problem for one Donald J. Trump, New York’s attorney general taking a look at how he and his family ran the Trump Organization and all of these companies over the higher a part of a decade, to say there was a number of inflated rigging of actual property properties and liabilities that oftentimes had been understated.
Suffice it to say, it is a authorized mess and, to listen to the previous president inform it, yet one more witch-hunt.
Let’s go to David Lee Miller with extra — David Lee.
DAVID LEE MILLER, FOX NEWS CORRESPONDENT: Neil, New York’s Attorney General Letitia James has filed a civil lawsuit that, if profitable, may forestall the previous president and three of his kids from persevering with to run their actual property empire right here in New York state.
According to the submitting, Mr. Trump, his son Don Jr. and his son Eric, together with daughter Ivanka, fraudulently inflated the worth of a number of properties by billions of {dollars}. The lawsuit says Trump exaggerated the scale of his New York City triplex residence. He claimed his Trump Tower apartment was 30,000 sq. ft, when, in truth, in accordance with the swimsuit, it was just below 11,000, additionally fraudulently inflated, in accordance with the lawsuit, property on Wall Street.
While an impartial appraiser mentioned it was price $220 million, Trump claimed its worth was 530, and attributed that greater worth to the appraiser. Also cited is Mar-a-Lago. Trump valued that property at $735 million. The A.G. says it is price about $75 million.
Now, the attorney general says inflating property worth resulted in quite a few monetary advantages.
(BEGIN VIDEO CLIP)
LETITIA JAMES, NEW YORK ATTORNEY GENERAL: Mr. Trump and the Trump Organization repeatedly and persistently manipulated the worth of property to induce banks to lend cash to the Trump Organization on extra favorable phrases than would in any other case have been out there to the corporate.
(END VIDEO CLIP)
MILLER: Responding to the lawsuit, the previous president posted on social media.
The publish reads partially: “Another witch-hunt by a racist Attorney General Letitia James, who failed in her run for governor, getting almost zero support from the public.
The post then continues: “I by no means thought this case can be introduced till I noticed her actually dangerous ballot numbers. She’s a fraud who campaigned on a get Trump platform, even if town is among the crime and homicide disasters of the world underneath her watch.”
Now, what he’s referring to is that Letitia James, a Democrat, is up for reelection this fall. Now, the attorney general is calling for $250 million in restitution, plus banning Trump and his family from serving as directors or officers at any New York-based corporation. Additionally, Mr. Trump, if the suit is successful, would not be allowed to take part in commercial real estate deals for five years.
Now, while this is a civil lawsuit, the attorney general says she believes it’s possible that federal laws were violated and she’s going to refer the matter to the U.S. attorney for the Southern District, as well as the IRS. She calls the pattern of alleged fraud astounding — Neil.
CAVUTO: Just incredible.
David Lee, we will look at where this goes and the possibility of criminal charges being filed, but a distinction with what the attorney general was saying was that that might be filed along with the IRS and have them look into it and their Criminal Division, but it gets kind of complicated.
And, as I often say, Tom Dupree, he’s the guy who gets complicated and translates it back into English, the former deputy assistant attorney general.
Tom, they’re already saying timing is everything. Others have looked at the same issue and not done anything. She has a political agenda. To be fair to the attorney general, she gets fair and balanced hate mail. After all, Governor Cuomo in New York is out of his job because of that, and none too pleased with her.
Where do you think this goes?
TOM DUPREE, FORMER JUSTICE DEPARTMENT OFFICIAL: Yes, well, Neil, a few interesting things about today’s filing.
For one thing, it’s super long. It’s much longer than I anticipated. I mean, the complaint itself is over 250 pages.
CAVUTO: Wow.
DUPREE: And it puts a lot of evidence in there — I should say allegations. We will see if she can back it up with evidence.
One interesting thing here, Neil, is that she’s pursuing civil charges. If she had brought a criminal case against the former president, she would have had to prove her claims beyond a reasonable doubt, which is the highest standard of proof known in American law.
She doesn’t have to meet that burden because this is just civil, although, as the reporter just noted, she is trying to start up some interest among prosecutors by making a criminal referral to the federal prosecutors in New York, as well as to the IRS.
CAVUTO: But she could start out that way, and she didn’t, sort of like a jump ball and threatening that. And so does it lose its impact?
DUPREE: It might lose its impact a little bit.
In other words, look, federal prosecutors and the IRS, I mean, they get referrals fairly often. And just because they get a referral doesn’t mean they’re going to act on it. And I think would be a fair question for them to say, well, why didn’t you bring the criminal case? Why are you giving this to us?
CAVUTO: Right.
DUPREE: And, I mean, it’s possible, there could be laws that she doesn’t have jurisdiction to enforce and it gets kind of complicated.
But, to your point, she made the decision to go to civil route. She’s basically trying to ban President Trump and his family members from running businesses in New York in the future. She’s not, at least at this stage of the game, trying to put them in jail.
CAVUTO: But can she do that? You just read my mind. That’s one thing.
Forget about the Trump Organization if this follows through: We don’t think it’s a good idea for you or your family to do any business with any company, your own or others, in New York, in perpetuity. That seems like a bit of a leap.
DUPREE: Well, what she’s going to have to do is prove that all the family members had personal involvement in this scheme, right? In America, you don’t have guilt by association.
Just because you belong to a family that owns a company that did something wrong doesn’t mean that you personally are to be banned from doing business.
CAVUTO: That they — the charge is that they were cooking the books and inflating values. And that’s just a no-no, if they can prove that, right?
DUPREE: If they — she can prove it. That’s exactly right.
CAVUTO: Yes.
DUPREE: If she can prove it. And she is going to have to link each of those individuals to this fraudulent scheme if she wants to impose the kind of sanctions that she’s contemplating.
CAVUTO: Yes, very tough to do, forget — for any company, but let alone real estate trusts and companies have transactions that can change on days and weeks. That’s a business leap.
We will see what happens. Tom, thank you so much.
DUPREE: Thank you, Neil.
CAVUTO: All right, Tom Dupree.
Speaking of banks, some of the heads of the biggest on the planet were on Capitol Hill today. They were supposedly witnesses giving testimony. It had the feeling of being more like pinatas getting hit hard.
(BEGIN VIDEO CLIP)
JAMIE DIMON, CHAIRMAN, J.P. MORGAN CHASE: Can I just add one other thing? I don’t think…
REP. BRAD SHERMAN (D-CA): Not on my time, you can’t.
DIMON: No one is doing…
BERMAN: Reclaiming my time, Mr. Dimon.
REP. MAXINE WATERS (D-CA): The time belongs to the gentleman from California.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
CAVUTO: Financial CEOs on Capitol Hill, bank on trouble, literally.
Chad Pergram, what happened?
CHAD PERGRAM, FOX NEWS SENIOR CAPITOL HILL PRODUCER: Hey there, Neil.
Sobering economic news from the nation’s leading bankers appearing on Capitol Hill today. Jamie Dimon of J.P. Morgan Chase said that lawmakers should be prepared for the worst. He fretted about geopolitical crises.
(BEGIN VIDEO CLIP)
DIMON: The real issue is global stability relating to Ukraine and China and kind of more forward-looking.
The financial industry here could easily handle a hard landing.
(END VIDEO CLIP)
PERGRAM: Of course, the Fed is trying to navigate a soft landing with today’s interest rate increase.
In June, Dimon told lawmakers to expect what he termed an economic hurricane. There’s lots of introspection about how Congress and policymakers responded to the pandemic, infusing the economy with trillions in cash. Dimon testified that the response was the right call initially.
(BEGIN VIDEO CLIP)
DIMON: We’re paying the price of too much fiscal monetary stimulus. I don’t want to second-guess all the people doing that. That might have been predictable at the time. They’re taking the right action to reverse it.
But I don’t think you can spend $6 trillion and not expect inflation.
(END VIDEO CLIP)
PERGRAM: Despite Dimon’s testimony about global instability, he tangled with Democrat Brad Sherman about J.P. Morgan and links to Russian oil.
(BEGIN VIDEO CLIP)
SHERMAN: Have you cut the ties to Gazprom and Vitol?
DIMON: We are following the instructions of the American government, as they asked us to do it. I think they’re doing a great job.
SHERMAN: So, you are not — Mr. Dimon, it’s a yes-or-no question. You have not cut your ties to the Gazprom and Vitol?
(END VIDEO CLIP)
PERGRAM: Bank profits are down because of geopolitical challenges and interest rate hikes. Megabankers appear before a Senate hearing tomorrow — Neil.
CAVUTO: All right, that went well, Chad.
Thank you very much, Chad Pergram on Capitol Hill.
When we come back: the great exodus from New York to Florida, why it’s on and gathering steam — after this.
(COMMERCIAL BREAK)
CAVUTO: All right, the cover of The New York Post today showing record number of New Yorkers moved to Florida in August, and that pace is picking up steam.
Doesn’t Ashley Webster know it? He’s been talking about this. Madison Alworth has been following the implications of this. They both join us now.
So, Ashley, the bottom line is…
ASHLEY WEBSTER, FOX BUSINESS CORRESPONDENT: Yes.
CAVUTO: … it’s folks just seeking out lower-tax, lower-crime, lower- hassle domain.
WEBSTER: Yes.
CAVUTO: And Florida is the winner, right?
WEBSTER: Yes, it’s interesting. When the pandemic first started, it was the billionaires, followed by the millionaires, followed now by the middle class, especially young parents, who are concerned about the crime in New York, New York City in particular, and the state of the schools
And that flow of people has not slowed down.
CAVUTO: You know, Madison, I’m just wondering, does it pick up steam?
Because this number looked at people who swapped licenses. In other words, they just didn’t go down to Florida to get a second home or vacation. Thousands of individuals — and this is thousands every month — are saying, no, I’m moving out. And I’m applying for a license in Florida. And I’m never going back.
MADISON ALWORTH, FOX NEWS CORRESPONDENT: I mean, it definitely does indicate that permanent change, because, if you have ever been to the DMV, that’s not something you do for fun, right?
So these are people who are there, and they’re there to stay. And it makes sense, because we have opened up with remote work. And I think the pandemic showed you can leave, and people have chosen to do that. I mean, summer in New York, it’s the smell of hot garbage. Summer in Florida, it’s really, really hot. So, both are tough. Both are tough.
(LAUGHTER)
CAVUTO: It’s just really hot. It is very hot, yes.
ALWORTH: Yes, but I would choose extreme heat over that floral New York summer smell.
CAVUTO: Well, Madison, you should go with Ashley to the DMV there, because they just put him right in the front of the line.
(LAUGHTER)
CAVUTO: But you always wonder, Ashley, the same transplants from New York changed the complexion of Florida. Everyone becomes an awful driver. No offense to Floridians. But what happened?
(LAUGHTER)
WEBSTER: Yes, it’s interesting, isn’t it?
And, listen, there are going to be some people who turn around and go back. But, to Madison’s point, what isn’t to like? It’s the business-friendly atmosphere. The economy is booming. There are plenty of jobs. There’s a very — there’s no state income tax, a very low corporate tax rate of 5.5 percent.
You put all of those things together, you can put up with a hot and sweaty summer, because you have got the great beaches to go to. I don’t see many people turning around. I think the move is a lot more permanent than it used to be in the past.
CAVUTO: Madison, don’t get any ideas. We like you here in New York. But you can see the appeal, right?
ALWORTH: I mean, absolutely.
So I actually lived in Florida before I took this job. I think the appeal of New York, the work opportunities, thank you, at FOX News, FOX Business, for moving me from Florida to New York.
But I think unless we really see that return to office, people can get the opportunities of New York or of the Northeast in Florida.
CAVUTO: Very true.
ALWORTH: So I would choose that sunshine if I could. I just love this job, and so I’m stuck again with that lovely garbage smell.
But I have no regrets.
(LAUGHTER)
CAVUTO: But, real quickly, Madison, then could you let Ashley know where you got your start in New York to try to learn the ropes, so to speak?
ALWORTH: Yes. Yes. I started here on this show as an intern.
CAVUTO: Oh. See that, Ashley?
ALWORTH: So, had to come back, Neil.
WEBSTER: Wow.
CAVUTO: Well, that’s what we call power.
WEBSTER: Great story.
CAVUTO: All right, guys, very good seeing you.
We will just see what happens. But you go where you don’t have to put up with the grief.
Here’s “The Five.”
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