Prices offsetting higher bond yields. Key coat quotes on Interest Rates. Majority of participants noted a stronger outlook for Economic Growth raised a likelihood further gradual policy firming would be appropriate but members agreed strengthening in the near Term Economic outlook increase ad likelihood that gradual upward trajectory of the federal funds rate would be appropriate. That is it why they added the word further to the statement. Further gradual increases. Quotes on tax reform impact to the economy. Quotes, several participants expressed considerable uncertainty about the degree which changes to corporate taxes would support Business Investment and capacity expansion. Ing of on wage growth, key quote. While some participants heard more reports of wage pressures from their business contacts over the interveeping period, participants generally noted few signs of a broadbased pick up in wage growth in available data. That said, a number of participants judged that the continued tightening in labor markets was likely to translate into faster wage increases at some point. Finally on the economy, spending on durable good, quote to replace those damaged during the hurricanes in september may have provided a temporary boost to consumer spending. The key head line here, is that it would appear from the mines of the january policy meeting that the fed is less hawkish on Interest Rate increases. Back to you. Trish these are eternal doves were talk about, these academics believe they alone hold the solution to our economy. Reporter trish . There is a key issue that gets brushed over here but in the labor report from january we were talking about 2. 9 wage growth yearoveryear but in actuality for nonsupervisory employees, that is majority of the people in the country, wage growth actually fell to 2. 4 yearoveryear growth. And that is something they dont talk specifically about in this but it is an issue. Trish that is still pretty decent, adam . Reporter actually below the 2. 5 . Im not saying whether it is good or bad but below what we experienced. That is a key issue on wage growth people are not talking about. Everybody is talking about 2. 9, when in reality for majority of americans the pace of wage growth fell. Trish januarys that was before the tax cuts had taken effect. They dont know if the tax cuts are going to work. That seems to be doubting. That is good news for the markets, hey, party on. Adam shapiro thank you so much. Joining me with reaction, bullseye brief author and publisher adam johnson, Janney Montgomery scott chief strategist, mark luschini, gerri willis live on the floor of the nyse. Theyre up certainty whether tax reform will work. They are uncertain that giving back to money to the people that earn it and corporations will help the economy. Incredible. Trish wage growth, 2. 4 is still growth, not talking about a reduction in wages. I realize it needs to keep pace with inflation, you know, they just cant help themselves. This is a great example of you give the government an inch it will take a mile. Only gave the central bank all this authority. You guys will run Interest Rates. You will run money supply, do what you think is right. They did. Way back in 2009 and 2010 we needed them. The fed did a wonderful job. But they dont want to give up the power. That is what were seeing today. We dont need them anymore. Trish fundamental growth frankly first time in a decade. They dont want to give up the power. Theyre government employees. That is the way the government works. Trish dow up 212. Were up near the highs of the session, as soon as the news came out the market took off gaining 50 points there. Mark luschini, are you surprised . Not at all, trish, given commentary from the reporter with regard to the notes that came out along with the minutes from the january 31st meeting. It suggests to me that fed will be exceedingly gradual. The market had been probably bracing for something much more hawkish, perhaps, three rate hikes left for yate and possibly four. Now that jeopardizes whether we hear three coming out of the fed given uncertainty around all variables you were talking about. Trish what a pessimists over there at the Federal Reserve. Look, gerri, the market is going to like this. They like to know the fed is there, ready, willing, able, always desiring to help lend a hand but you know it does seem as though were shifting in to a new kind of time for our economy. We need to know that our fed can actually be there should things be not so good. You know i like to think of this back to the future, right . Were going back to a paradigm a lot of people on this Trading Floor dont even remember when there was actually inflation, the economy was growing. This is a new reset for some people out there who have been threw it before. I want to say, look at these markets. The dow up 214 points right now. At about the time your show opened it was up 150. S p up 23 points here. Nasdaq up about 86 points i believe. And so what youre seeing is this big hullabaloo, big excitement over the fact that the fed will be here. I think youre making a great point here but it is not surprising at all the markets would be in favor of this. I have to tell you, this is interesting reading these comments and their interpretation of what is going on here. They dont see this fundamental burgeoning demand so many people here talk about, whether theyre ceos or traders, people visiting the floors, or people here all the time. Demand for products, goods, Services Innovation going on in the tech sector we hear about every single day transforming consumer culture, forming manufacturing. You picked up on the right theme here how the feds are doing this. Apple, microsoft, google, on a tour. Well take the cheap money. Trish as they say do not fight the fed. Investors learned anything over last decade it is certainly that. The market is up 260 points. Here is what i caution everyone, okay . Adam, you heard me get on my soapbox about this before. Please do. Trish i worry that if the Federal Reserve continues to indicate they will be there, dovish as always holding our hand in times of need or not. Trish it disincentivizes people to do things today, because they know they can borrow just as cheaply tomorrow. Right. Trish so we actually need inflation, right . We want a little inflation. But if the fed is going to continue raising at such minuscule pace, then how do we ever get any . Right. Trish i should point out yields are a bit higher, you can see trading above, above, fine anally 3 on the 30. That is incredibly low. The problem on low rates it creates no urgency. If rates staying low, i dont necessarily need to refinance my mortgage now. I dont necessarily need to buy a car and finance it now. I dont necessarily need to buy a new piece of equipment for my factory to work a little harder. There is no pressure. There is no your again system that is part of the urgency. That is part of the problem you make lazy uninformed decisions when you dont have to. It allow businesses that are weak to hang in there. Rates are low. They can always borrow. High every rates signal growth. Higher rates encourage efficiency. I want us to get back to greater efficiency. We dont need the fed anymore. But the problem is, as we were saying trish, once you give the government that kind of power trish i talk to a lot of people involved with the fed and there is a consistency of thought shall we say, mark lou seen theyre academics they fundamentally believe they can tinker as they do with rates and with qe and that is going to result in a better, healthier economy. I disagree with it. I mean i think they can affect things on the margin but as they work aggressively to pump money into the system during those president obama years we saw it did not have much of an effect at all because it wasnt changing fundamentals. It wasnt changing supply and demand. Is now going to be any different . Well, i mean, trish, ben bernanke himself said quantitative easing works in practice, not in theory. The humor that theyre running models like everybody else and models are not perfect. Signaling mechanism keeping rates low basically suggests that the economy warrants it. That the economy need lifesupport in order to sustain this advance, therefore is choking off the kind of activity whether you say buying today, whether deferring the purchase to tomorrow because there is no rush to do it. It is inviting risktaking that has yet to manifest itself may incur at subsequent recession encounter, two, three, whatever years now. Investors are being encouraged to take capital to invest it in ways that are maybe dubious or taking on additional risk they would otherwise do if they were behaving under normal Interest Rate regime, consequences of which well see once the tide flushes out. Trish yeah. Lets go back to the yields again quickly, 10 and 30year both moving higher. Do we have charts for you . Do we have intraday chart for you . That be even better. Making the control room do work. If we have intraday, boy i would love to show that you would think yields would actually be going lower right now, yield on 30year right now up. I, here is what i think is going on actually, trish. I think traders are stepping back, saying to themselves, wait a minute if we have 20 Earnings Growth in this country, which is some of the strongest growth weve seen in many years, if we have people getting more money after tax, thanks to tax cut, average americans getting 2,000dollars pay hike for this year, 95 of americans are getting a pay hike, and if you have rates staying incredibly low for a longer period of time, guess what, you will create inflation. I think that is what traders are responding to. Why youre seeing yields tick up even though fed says they want to keep rates lower. Sorry, fed, we see between the lines. We understand what is going on here. You are seeding the seeds of much higher inflation as we look into the back half of 2018. Trish this is amazing. Were up nearly 300 points right now. If we show you intraday, at least of equity market, the dow, you can see exactly when the news came out from the fed, as adam shapiro was reporting it, take a look at that spike higher. Hey, do not fight the fed. This is good news for the market. I dont know if it is good news for the fundamental economy. We continue to look at having a debate. Party on, adam, mark, gerri. Thank you so much. Get to the other big story, President Trump meeting with trade Union Leaders at white house, the president vows to get tough on trade deals. Trade deals hurting american workers. White house released assessment of the economy. The administration is very confident that the president s tax cuts will spur huge Economic Growth over the next few years. You see the difference between how the fed is thinking, theyre not sure it is going to work and how the administration is feeling. But why would administration offered tax cuts unless they thought they would work. Latest blake burman live at the white house. Hey, blake. Reporter trish this paint as pretty rosy picture. This is president s report on the economy from the council of economic advisors. A 500page document outlines how they see the economy in the first year under the president and where they see it going here on out. Youre right it, touts the tax cuts a basis for good economy running forward as the president s top economic advisors see it in terms of gdp this president talked about 3, 4, 5 growth. This is the projection from the cea, short term, above 3 gdp. When you get into the middle of the 10 year window, exactly 3 range and back end of the 10year window slightly under 3 gdp they warn the president s top economists. Challenges remain in yate for longer term, increased opioid dependence, increased Labor Productivity around wage growth and downward pressure on the lable force participation from demographic shifts. By the way President Trump is meeting with top Union Leaders and the issue he is talking about is trade. It is six of the biggest Union Leaders in this country. Among them heads of aflcio, teamsters and the steelworkers sitting down with the president right now. The president has talked about his trade policy being America First. The critics though say this is an administration looks too much inward, too protectionist. When you go to this report just released today, there is kind of this warning from this administration on trade, they write quote, even if fair and reciprocal trade leaves u. S. Better off in the aggregate, does not necessarily mean expanding trade flows leave all americans better off. Trish . Trish thank you very much, blake burman. Lots going on here today i do want to point out. The market is off highs we saw moments ago. Hanging on there, up 236. You will recall we started this hour up 150. We got news that the fed is less hawkish, surprise, surprise, than people thought it would be. Theyre not as confident as we say as the president on the strength of the economy right now joining me with trade, more on policy out of washington that will benefit our economy, we have from north carolina, member of the committee on financial service, congressman robert pittenger. So good to have you here. Thank you, representative, for joining the show. Good afternoon. Trish i want to start on the fed here, right because the fed, theyre a little pessimistic. Theyre not going to things will be great as white house thinks they are going to be. Where do you think it will all shake out . I think they are paid to hedge their bets. I think you expect them to be much more conservative where there his tore kick basis for these tax cuts and and transformational effect on economy and white house analysis i think is on target. I think we can look forward to strong and steady growth in the years ahead. I hope so, i hope so. I sometimes think the fed might want to get out of the way so we have the opportunity to have that growth. I dont think they know they could be hindering things. They could be but i think when we see redeployment of assets, reinvestment back into our economy by major companies, 350 billion, 50 billion there, north carolina, we have some companies here that reinvesting back in expansion, ive got some counties that have are very poor counties but they have good businesses there in manufacturing, they will being expanding. Trish thats great. The tax cut gave extraordinary amount. Trish it is tax cuts, right . Yes. Trish that is part of why they want to expand here now. The tax cuts are having a huge effect and of course expensing and being able to expense their investments. I think we can be encouraged what can happen. Look what already happened. Who would predict where we are with the markets with, 401 k s. Trish certainly not the fed. Not trish certainly not the fed. Theyre, surprisingly pessimistic but the market likes that let me ask you this, the president is having these meetings right now with Union Leaders on trade. One of the most remarkable things i think about this administration its ability to cross over into areas really dominated by the left and by democrats. Richard trumka is there at that meeting today. He has had on and off again relationship with the president , positive relationship occasionally going negative but for the most part i think a lot of these Union Members are very receptive to the idea of America First what is it we need to do, congressman, to be more competitive with the likes of china we dont turn into france and . I think difference is today, the president who is businessman, not a politician. He knows the numbers. He knows reality. He knows what will work. He can sit down and not allow these union folks to overwhelm him. He understands whats reasonable, what can be done, what can assure american markets are open. That we have free and fair trade with china or with canada or with mexico. I trust the man, his ability to negotiate. I think all of us would be wellserved if we understood that the president and his u. S. Trade representative, robert light hauser are fully capable. They understand the process and where they can move this ball. Trish congressman, good to have you here. Thanks very much for joining us. Good to be with you. Trish nancy pelosi, everyone is digging in her heels here. I say she sound increasingly like a modernday marie antoinette. She is not doing herself or her party any favors because heres the latest. She is now calling tax cuts unpatriotic. I want to know since when is it unpatriotic to let americans keep the money that they have earned . I mean maybe this is why democrats are taking heat from their own allies for their trump fixation. Well debate all that next. Make something for dinner. But some of us make something much more. With blue apron, any night is a chance to see what cooking can do. Trish nancy pelosi proving once again how out of touch she truly and really is. She is out there. Warning of dire consequences from the republican tax cuts. She is actually calling them, unpatriotic, i kid you not. Here we go. If what youre doing is cutting the taxes at the highend, and therefore not being allowed to invest in the future, youre doing a great disservice to our country. [shouting] unpatriotic. Trish unpatriotic. Do we have the heckler there, as well. She got a, little bit into it with a heckler there, you said, hey, arent you worth hundreds of millions of dollars . I guess big question here, is really unpatriotic to keep the money that you have earned. We do the have the heckler. We have some one in the audience criticizing her for some of those crumbs comments. Most people are not in debt and poverty but some are, but pose people have to struggle how much are you worth, nancy. Are you in abject poverty . Were not talking about that. Trish so here is reality, not only totally out of touch, she is fighting with many right now, including big democratic financial donors who say she has put forward a losing battle right now. Dont forget, not one single democrat voted for tax reform. Most recent generic ballot poll show democrats have roughly 8 point lead, compared with 13 points after Congress Approved the law. A look where this is all heading rnc National Spokeswoman kayleigh mcneney. And jessica tarlov. Most people 1000 is unless youre like nancy pelosi that is a lot of money. Unpatriotic was a suggestion from the audience. Clearly was not in her prepared rashes but would like to draw our attention to new Morning Consult poll, 25 americans noted a bump in paycheck. 40 of 100 grand see an uptick. 16 of those under 50 grand. Donald trump who has a few dollars in his bank account as well. Went out there he would helping those that need it most. He is helping corporations. Better let it trickle down, help peoples individual rates who should have been slashed more than that. Trish i will give you that. He is helping corporations but lets not forget. Corporations are employers. If shareholders pass it on. This has been a problem. We had record corporate profits under barack obama. They didnt pass it down. Trish they have already, kayleigh, came out and announced bonuses and wage increases and better maternity benefits at walmart, for example. It is up to us as well to hold them accountable toned make sure they do pass it along. I think the president can make that message loud and clear as well. Absolutely. That is already happening. Had more than 370 Companies Giving extra benefits to the employees in form of higher wages and bonuses. Not only that, it is a fact 91 of americans seeing a Tax Deduction and paycheck increase. That is a fact. They are seeing it in their paycheck. For nancy pelosi and democrats to engage in this out of touch elitism saying unpatriotic to give people more of their money, that is a losing argument, a losing one. You will not win the midterms. Internal polling at rnc shows margin of 8 in Battle Ground states people are seeing net benefit from tax cuts. Trish jessica saying not enough, right, jessica . Would you like to see more in the way of taxes . On individual level. Trish on individual level, one of the things that nancy pelosi said there last night as well, was, it is same old, same old, its a tax cut for the wealthy. It is tax cuts for high earners. I would just point out that that talking point needs to get lost pretty quickly because it is just plain old wrong. I mean this is not a tax cut that is disproportionate to the wealthy in terms of earners. In fact in california, and new york, and new jersey and connecticut where a lot of very wealthy individual are, where a lot of tax revenue, california and fork contribute one of quarter of our gdp. I mean these are high, high income areas. Yet, people there will pay more money. Absolutely. That is why our congresspeople voted against this bill. We live here in new york. Trish my point is that talking about, how, is not right. What is right about it is to talk about the disproportionate benefit to corporations and to the wealthy. I appreciate kayleighs data from internal rnc poll, love her to respond to the Morning Consult poll showing people over 100 grand seeing more benefit than those under 50 grand. Oh, this is how it should be on some level, i dont know if youre earning 50 grand youre getting more help. Trish half the country doesnt pay tax. Pay tax, et cetera. This was messaged something would lift up and middle and lower classes. It has. Trish let kayleigh respond to that. Absolutely has. Your polling depending on people identifying in their paycheck it has gone up because of tax cuts so that takes a messaging leap there to understand benefit not coming from the employer, it is coming from the federal government in form of lower taxation but the fact is, estimated by the leftleaning Tax Policy Foundation that 80 get a tax cut. I mean that is fact. My dad run as small business. All 150 employees saw a tax cut. He noted that in a letter to them. Employers need to note it to their employees this is happening. Well leave it there. Kayleigh, jessica. Thank you so much. Jessica, go talk to the fed because the fed i think is worried as you are right now. But you know what, everyone . That is good news for the markets as we watch a dow up nearly 250 points right now. The fed indicating that it has got some concerns. It is not certain that wages are going to grow. It is not certain there will be benefits to the overall economy as a result of lower corporate taxes and because it is not certain about any of this it will not be as aggressive we thought when it comes to hiking rates. So a less hawkish tone from the Federal Reserve descending the market up better than 1 . We have got more on it right after this. In miami, but to the nation how great we are. And how great we can be. Ill stand by you. Ill stand by you. And ill never desert you. Ill stand by you. I want you to pick a new truck for your mom or dad, knowing that they could possibly pass it down to you one day. Cool. But before you decide, you should know that chevy silverados are the most dependable, longest lasting fullsize pickups on the road. 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Dont sweat your booking. Tripadvisor. The latest reviews. The lowest prices. Trish more than a dozen students from Marjory Stoneman douglas high school, the site of last weeks Deadly School massacre, will meet with President Trump in the white house in a short while from now. The listening session comes as the president vows to improve school safety, even signaling he is open to new gun regulations. For the very latest, go right now to Fox News White House correspondent kevin corke. Reporter youre right, trish, 15 to 20 students from parkland, florida, is expected to meet with the president and other white house official for this conversation. Their voices will join the many gathered, just in fact outside of the white house fence right now this afternoon, calling for a commitment to do more to protect americas schoolchildren. Also at this hour, hundreds more are gathered, not just across the country, but in particular, outside of the state capital in tallahassee, florida, again looking for a solution to americas gun violence. Here this afternoon, at the white house as you point out, students and teachers will take part in the important listening session. A source telling fox news, the president is open to the idea of advocates for a rise in the minimum age, that is for owning a gun which would ultimately be a state issue. Here is what he said yesterday on twitter, in case you missed it, whether we are republican or democrat, we must now focus on strengthening background checks. Is this all happens, it is unfolding as teenagers back in the state of florida, actually went to the statehouse over in tallahassee yesterday hoping to get lawmakers there to have a conversation about a possible assault weapons ban. They were unsuccessful. Like the white house here, there are democrats also saying now is the time for change. This isnt about gun control. It isnt. We have to stop talking about that. Ask, ask politicians, ask people who represent their constituents if they support school safety, if they support public safety, if they support taking act shun to prevent more slaughters like the one that happened in parkland from happening any place else. That is the way this debate has to go. Because of these kids, i think that is the way it is going to start to be addressed. Reporter bottom line, trish, were talking about a multilayered approach to a devastating problem for our country. The white house is interested in talking about mental health. Theyre talking about restrictions perhaps to bump stocks. You heard the president mention that. Theyre also looking at possibly rising, raising the age restriction for gun purchases. Just a conversation, if nothing else. And again looking at legislative action all important as we look forward to the first of two listening sessions here at the white house, the first today with teachers and students. Tomorrow it will be state and local leaders. I will have all details for but for now, back to you. Trish thank you so much, kevin corke. Really interesting, this may be one of those nixon china moments t may take a President Trump, a republican, someone who was backed by the in. Ra to actually increase the background checks or to put in new rules regarding what age you have to be to buy a gun. It may take a President Trump to provide a path to citizenship for people who are in this country illegally. It is amazing when you think about it. I dont know what you think will be left for the left to pick on if he gets all of those things done, and has our economy growing. Speaking of our economy, we want to head back to the florida of the New York Stock Exchange momentarily because we have a nice market on our hand, off the highs of the session. We have been up roughly 260, doing pretty well, plowing ahead here, with financial leading the way. More right after this. Yeah. Yes i do. Okay so you diet, you exercise, you manage your a1c . Thats the plan. What about your heart . What do you mean my heart . The truth is, type 2 diabetes can make you twice as likely to die from a cardiovascular event, like a heart attack or stroke. And with Heart Disease, your risk is even higher. But wait, theres good news for adults who have type 2 diabetes and Heart Disease. Jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit. Jardiance is proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and Heart Disease alower your a1c. 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A kohler walkin bath provides independence with peace of mind. Call and ask about saving 1000 on your walkin bath, or visit kohlerwalkinbath. Com for more info. But im not standing still. And with godaddy, ive made my ideas real. I made my own way, now its time to make yours. Everything is working, working, just like it should trish have fed to thank for this one. Stocks rallies, up 250 from the dow. Federal reserve minutes, kim out at top of the hour. What did they tell us . They told us that the fed, like usual is going to, be a little bit on the dovish side. The fed is not convinced that wages are growing enough. The fed is not convinced that the tax cuts that the Trump Administration put in are going to work. So it is going to be there, ready and willing, and able to do whatever it need to do, which may mean not increasinging rates we have gary kaltbaum. Tjm managing director timothy anderson. Gary, wow, ive been saying they have a group of pessimists there. You know, i understand they want to be careful and everything but, this is perhaps the opposite of what the market was thinking just a week or so ago, right . Im not surprised and theyr. I think they saw a 12 in the market and they watch the markets more than anything at this point in time. They have showed that through the years. And the new fed head in 2012, im almost quoting, stated that we stand ready and is investors know we will protect them from big losses if they do occur. Trish oh, my gosh. I do believe it is easy money forever. Were 1. 25 and that is too easy for them. Remember it is not about us as much anymore. Europe is still negative. Japan is still negative. Both are still printing money. And that is what you get, markets react to again at this point in time. Look, i think well be here for a very long time. Trish wow. Wow. Tim, they just cant give it up. Look the fed is always going to wait for the data. They will not go through their own version of dynamic scoring and anticipate what the tax policy what effect the tax policy is going to have. Trish well they are anticipating though, tim. They are. They are anticipating that it is not going to be a good effect. What more do they want . It says they will wait for the data, one of reasons they always have the criticism of waiting too late when an economy turns one direction or the other. I think it is also very important what they didnt mention. This meeting was the tuesday and wednesday after the market made an alltime high on friday, january 26th. They did not mention that they were concerned about stretched asset valuations. Trish they should be. Look, here is the reality, right . Where are you going to put money in last 10 years . You had to put it in the stock market. Thats right. Trish that was only place to go. You certainly wouldnt gain anything at a local bank on a cd. So you put it into the riskier assets. In doing so, what the fed has failed to recognize perhaps that is was creating through the laws of unintended consequences no choice in the matter. Consequently, gary, the only people that could benefit in that kind of environment were people with assets, people with cash they could invest. So they did nothing to affect the middle class and just increasingly contributed to that hourglass economy i keep talking about. Lots on top, lots on the bottom, middle getting increasingly squeezed. Trish, they screwed the savers. They got rid of the riskless income investment. I remember when money markets were four and 5 . You get squat now. And it forced savings into doings things they possibly be doing, theyre praying the bubble of bubbles of bubbles doesnt pop. Bernanke said we know they will University Hit the saver, they will get it back with better economy. Thanks, big ben. This is where were at. The good news theyre lucky as all heck. We never want to get it point where Interest Rates spike so high because of their inaction on anything thats going on. So far so good. Keeping fingers crossed. Trish yeah, so, in spite of them, maybe, tim, i just have to say also that the idea that the fed is watching our markets at all and responding to that they may just as well make that part of their mandate, right . That is what they have become. And i think there is some risk in that because they cant be there always, willing, ready, able to help. You dont have normal functioning market. I agree with that complete i. It will be interesting to see in the march meeting still a month away to what degree they mention the market volatility, which really didnt start until after this last fed meeting. So, it would concern me tremendous men doesly, which they have in the past, managing market volatility that would not be a positive sign. Trish an interesting day. The fed, interesting as always. Hopefully, hopefully they dont talk too much about it. You know, timothy, i have a feeling they will. Gary, tim, good to see you guys. A lot more on the marketswere pulling back from some of those gains. Perhaps investors realizing as i have said here this is not necessarily good. You dont necessarily want a fed that is there ready to bail everyone out at all times. You do want things working on their own, functioning on their own. So you can see we are paring toes gains. Where do we go from here . More next. Today, the new new york is sparking innovation. You see it in the Southern Tier with companies that are developing powerful batteries that make everything from cell phones to rail cars more efficient. Which helps improve every aspect of advanced rail technology. All with support from a highlyeducated workforce and vocational job training. Across new york state, were building the new new york. To grow your business with us in new york state, visit esd. Ny. Gov. What were trying to do going all over the country is to have a giveandtake with the community about how these budget, this tax scam, which is a rip off of the middle class, gift to the highest, at 83 goes to the top 1 . Oh, my gosh, how unconscionable. Trish tax scam. Gosh, she must have been talking to the fed. House democratic leader nancy pelosi, again, talking about how unpatriotic tax cuts are. Perhaps this is the tax cut tour of lack of patriotism. She is now calling it a tax scam. Joining me right now, former advisor to president george w. Bush brad blakeman. Brad, im sorry, how is it a tax scam when im the one out there earning the money and the government is taking it and now i have anp student to keep a little bit more of what i earned . Somehow that is a scam . Yeah, we need to be scammed more in america if that is the case. The real scam is on democrats because, were not sending more money to washington for them to spend our money for us. Were getting more money in our pockets, not only from the tax cuts but also repatriation of offshore profits which democrats said corporations will use to rebuy their stock that hasnt happened to the degree of the money that is going back to employees. And to shareholders and buying equipment and plants. So were at full employment. Were growing at 3 . The democrats cant stand it. They have less money to spend. I wan more of the policy and tax cuts. Trish the other problem with her logic on this tour that she is going on about the tax scam is that she keeps saying that people who earn a lot getting a break and that is actually not the case at all. Not the case. Trish in fact, yes, i mean if you live in texas or New Hampshire or florida, your tax rate will go down, but you still got to pay your property taxes and trust me, im from New Hampshire. Theyre pretty decent in terms of the size of the property taxes. And you dont get to deduct those anymore, in the case of new york city, you get the 4 municipal tax. You get state tax. You cant deduct anymore of that. So for her to say, and for other democrats to say this is just a giveaway to the rich, it actually false, correct . It is absolutely false. The moral of the story is, the top 10 are still paying the majority of the Tax Liability for allamericans. And there comes a time when we have to stop growing government and we have to return to growing the private sector. This is going to help everybody. And it makes the democrats crazy. They have less money to spend. Trish they didnt vote for it. Not their idea. It is working. And they cant give credit where credit is due. Trish i think it is going to work. It has already shown evidence of working but were in the minority on that one when it comes to at least how the fed is thinking about it. You saw the fed minutes today. Theyre not certain this whole tax plan is going to work. Maybe they have been talking to nancy pelosi too much. Anyway, i got to leave. With the fed you know you have to catch a wave to surf. They have missed this wave. Trish and theyre also looking at old data. Absolutely. Trish not anticipating enough. Brad, good to see you. Well be right back with much more. Dont go anywhere. . Trish gosh, were right back where we started. Up 165, 15 points higher than where we started this hour, and the fed came out with its news, that its going to sit by and watch this very carefully. Its not certain whether the tax cuts are going to work. It is not certain whether or not we are going to get wage inflation. Tell that to the white house, who once again, today, through the president , reiterating his belief in the economy. Well see how this goes. Still an hour to go, and anything could happen. Liz, has you covered. This surprises me, trish. As soon as the fed minutes report came out, we spiked. We were up about 250 points, but some were wondering what was so great about the news . The fed handed us, the market perceived it a goldilocks report, not too hot, not too cold, the markets took off up 250 points, now lost a lot of that, still up about 142 points. But is it the right balance for the bulls . The dow solidly back above 25,000. Off the highs, but the release of the fed minutes sparked the markets at least the attention, wiping out at least much of yesterdays losses, but weve got to see if we can hold on this hour