Witness. If you didnt believe a witness yesterday. Chances are you wont tomorrow. Dont get too excited they now have a star witness. Editorial board calling on bob mueller to resign over conflicts of interest. This is a big week. Republicans set to unveil their highly anticipated planned to overhaul our countrys tax cut happening on wednesday. One of the big challenges, pushback over at eliminating deductions. More on how republicans are now appeasing those highstakes congressmen. President trump expected to announce his pick to lead the Federal Reserve this week before he departs for asia we are breaking down who has the inside track coming out. Marcus this morning taking up the weekly is. Dow industrials down 30 points. S p 500. European indices with the Economic Data this morning. Ft 100. Nine. Caci three points come in dax that 13. I had of the president s fiery strip saturday, shanghai composite down, squeaking out again, hang seng lower the cost be higher. Very much a mixed story, very close to the flatline. Rising tensions over north korea to report as the Nuclear Safety drills. Former General Electric ceo jack is us facing questions over his use of the private plane at the company. While the board was reportedly kept in the dark about a second jet being used on trips flying next to the jetty was then. Out loud finishing his 10 as it puts the astros one game away from the big world series. Driven me to talk about all of that, Fox Business Network dagen mcdowell, wall street journal Jon Hilsenrath and Lea Gabrielle is here. Good to see you. Welcome back. Dagen good to see you paper your you paper you are kicking all kinds of in saudi arabia. I dont know how you manage it. All the different people you got to interview. It was incredible. Maria i didnt realize the enormity of it. Sitting there interviewing the future king of saudi arabia. We are going to stomp out the extremists and open up our country and their ibm in my suit, my jacket and pants. All of these subliminal messages he was sending was really powerful. Are real password. Do you believe that . They have huge challenges because this is the changing of an enormous culture. But this is also the impact of President Trump because these two allies have gotten together and strengthen their relationship because they have a common enemy. This is a major change. I mean, weve seen many movements. Was there a notable difference. What happened was the whole country was buzzing about what he said. There were some security guards there. One came in the next day. He said my mother was crying on night after seeing that. It impacted the women of saudi arabia so importantly because this is the first time the future king of the country saying these things. We want to live normal lives. We want women to drive. He was being interviewed by a woman. Thats what im saying. The enormity was incredible. Talking about that. Weve got iran, but this week, tax reform. What do you think . Are they going to come out with something passable . Maybe, maybe not. More aggressive on ones in terms of what we eventually getting bills. It is worth noting kevin brady and orin hatch in the house and senate have been working together for weeks and weeks so they are probably going to roll out something that at least in some form gets past not only in the house but also the senate. We could assign this beacon of how challenging this will be with the National Association of Home Builders came out. We dont like this plan. We dont like what it does for homeowners, Home Builders. With you about pricing. Dagen and still about to blow my stack because of the potential changes to 401 k because i dont believe they know what they are messing with. Of the details unfold, more opposition for both sides do more lobby groups get out in front of these ideas with their own opposition. Talking about 401 k , the president has vowed to get it a cut to middleclass tax. That is the core middleclass saving mechanism. Thats what theyve been driving home. Dagen im not going to give away your interview with Kevin Mccarthy because you interviewed him yesterday and well have that later in the program. The language they are using that people have this huge tax burden in retirement because of pretax dollars to pay back now when you take money out of the 401 k plan. You make these changes to reduce the amount of money people have available for compounding you are basically going to tax them at lower rates in retirement than current rates. They want you to pay taxes today on money going to retirement plans because you pay more in taxes than you do when youre retired and not working. Not only that, the simplified tax code. If they change it, thats complicated. Maria at the time nobody has any savings. Thats one of the crises they talk about. Set to unveil their longawaited bill this wednesday. The National Association of Home Builders already vowing after lawmakers expressed openness to return the mortgage Interest Deduction without replacing it with a new tax credit. One of the big challenges to the builder means eliminating the reductions. The top tax writer in the house said he will allow a deduction for some local taxes to remain. Income tax reductions has to be fully analyzed because thats a major district in my issue in the district also. Theyve got nine months to put together. This is a bill that will affect generations to come. We cant afford to have this. Right now im certainly not on board. This involves my district for years to come. Im not going to sign on. The factory did it at the 11th hour raises real issues. Keeping the property tax reduction on theres not enough enough. House republicans also say blowback from the president and others after cutting 401 k and others. Is that going to be enough . If its only property tax. It comes from the high income taxed area and they are going to lose places like that in new jersey, new york, potentially california, potentially connecticut. What we see with the 401 k , state and local deductions, National Association of Home Builders is theres a lot of assistance and a lot of happy talk about the lower taxes, lower taxes. This is building up underneath the surface to the losers in this bill. We will see this come out on wednesday when they finally put all the details of the document on the table. You really want a look at the whole bill, the entirety of the bill to understand if you will go lower. One yesterday when i said data and local Tax Deduction means higher taxes for new yorkers as Governor Cuomo keeps saying if the amt affects that. I dont know how you feel about that. One issue you say and look at the enormity of the plan. Maria the danger is they take a hatch to the state and local Tax Deduction and not fix amt or make it like a temporary fix which has been a kind of ongoing problem with congress for years. You know, the other thing we are seeing here come especially with the 401 k that statue so worked up, dagen. Dagen makes me furious because again when these republicans can fix Social Security could and they are going to basically mass with the most important way people save for their own retirement. Right now they are trying to trick people. They are using statements like will give you an option to not be taxed later in life. That sounds really good to people. It is absolutely misleading. Kevin mccarthy said to maria will expand the amount you can invest to give you an option to not be taxed later in life. But again, they are not telling the truth to the American People. What happens right now is you reduce your taxable income by putting pretax contributions into a 401 k plan at 218,000 for people under the age of 50. If they cut back to 2400 a month and push into iraq we dont get tax and the money comes out at retirement, the whole idea of a 401 k plan is when it comes out at retirement, you are taxed at a lower rate because youre not working anymore and you have more money working for you. Not only that, but a dollar saved is worth more than the dollar you look at 10 years from now. When i was going to say is we are seeing here the attention of paying for this good looking up 401 k s because its a huge money pot. Maria trying to put together as much money as possible. The whole state and local tax reduction is on . 3 trillion. Even if they put tax on salaries like you can deduct that if you make 400,000. Thats going to take that revenue down to 800 million. They are looking for as much money to pay for the taxes. True to wait one second. U. S. Business on friday on friday and i didnt have advanced there but i have an answer now. They change the 401 k contribution. 1,802,400. The estimate on how much that would raise over 10 years is only 263 million. So you are going to take a hatchet to the way we save for retirement today to come up with about a quarter of a trillion dollars over 10 years when they need trillions of dollars potentially. I asked her the question on friday. She wanted to make sure she had the right answer. Thank you. Dagen its taken so beautifully explained the problem with what they are trying to tell the American People the way she put it is perfect in explaining to tax pairs but the changes ultimately going to be. Thank you for doing that. People are trying to spin this and taxpayers dont understand what will happen if 401 k changes are made. Maria will keep talking about this. Not enough to move the needle is the bottom line. So many stories on tax to get to. 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The executives to notify until this month that it used if i is their business jet used when he would travel. The report had an extra aircraft following on some of its bigger overseas trips. Immelt told the journal he too didnt know it was fine. Sure is about 34 this year. Little changed in the free market. Houston astros brought out to texas favorite sons for game five last night. Former president george w. Bush throwing out the first pitch of the world series. His father, h. W. The fourth world series for the younger bush. The Houston Astros fans. Coming back three times to beat the dodgers. Third team12. 10 innings. Game six back in now way. Weve got a lot of very sleepy productions. Maria coming up, an indictment is looming this morning. The first charge is set to be announced from bob muellers russia investigation. Who will be led away in custody with the latest over the leak. Facebook reporting earnings this week. 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Nows your chance at completely clear skin. Just ask your doctor about taltz. Whentertaining us,es getting us back on track,hing . Nows your chance at completely clear skin. And finding us dates. Phones really have changed. So why hasnt the way we pay for them . Introducing Xfinity Mobile. You only pay for data and can easily switch between pay per gig and unlimited. No one else lets you do that. See how much you can save. Choose by the gig or unlimited. Xfinity mobile. A new kind of network designed to save you money. Call, visit or go to xfinitymobile. Com. Maria welcome back to the future of the Federal Reserve in focus this week awaiting President Trump pic for the next fed chairman reportedly down to Jerome Powell, the more conservative stance for john taylor in the current chair gina gallant thats what he told me in the interview a week ago. The president added a dramatic flair to the contest over the weekend with a little teaser for the position. Watch this. People anxiously awaiting my decision not to do the next head of the fed will be. Ill be announcing a sometime next week. It will be a person who hopefully will do a fantastic job and i have somebody very specific in mind. I think everybody will be very impressed. Genocide talk about it is the chief market strategist, senior managing director tony dwyer. Good to see you. Talking about jay howell getting the job. What would that mean for market. Honestly, i think this is one of those stories that doesnt need to keep going. It doesnt matter. When you look back at all the money down she raised rates three times in a row, i renamed him sundering band, that initially cost by not being easy enough even though its his reputation. Its about the data. Its always about the data. Maria whether john taylor or john powell you look at the data differently. They run a very different kind of sad. Theres much more of a consensus building, much more transparent. What they are saying versus two months when you seek at the fed minutes two years ago. Out of the market reacted if the president said its janet galan. I think it would just go like it is going, grades and higher. I love to talk about this on tv. Gina gallant and jay powell are similar. You dont really know what youre getting. You say the markets okay. You might have been reaction. Youre not going to get a surge ultimately. As you know, the market correlate and that remains positive. All of this stuff similar. All the noise that the cycle. We used to talk about Alan Greenspan and the market by not saying it doesnt matter. Dagen if you are an investor and you are dismissing comment therein lies the risk. The 4. 5 trillion Balance Sheet that they are going to begin reducing. It is going to be higher longerterm. That is going to happen. The rates will ultimately go higher. They were invert every single cycle and thats how the rally and speak as landed in a recession. So if you use the curbside file, which is the consensus view of shortterm Interest Rates will be, do over the curb in the Third Quarter of next year assuming the rate stays here, which should have been. The fed is raising rates, then decelerate Economic Growth. That is how the seidenberg. They would not be surprised to see the recession in the second half of the team. Maria just because recessions typically happen every eight years and we havent had one in eight years. The invert the curve ndjamena version is 15 month. They know the history and they know inflation is very low. Buyers so sure they are going to keep raising rates in an environment where they might cause a recession in the inflation is very low . There is that. I dont think that there is anybody watching on planet earth where there he or she is the next fed chairman or not they can to you exactly how this will play out in the financial market. What they did was virtually unprecedented. We know how its playing out in the financial market. Theyve been raising rates since 24 at teen. [inaudible conversations] if i told you at the end of 23rd teen the treasury owners, china and japan are going to actually sell her treasury, wasnt going to the increase in the Balance Sheet, what to expect rates t