Here lunatic Dagen Mcdowell look at her face. [laughter] let me start with you, dagen you only dare say that because im not in the studio with you, and i cant punch you in the throat. Connell there is that. [laughter] heres what janet yellen said, theyre concerned about the jobs report for the month of august. It looks like she gave herself some room and the ped some room about hiking in the month of september, but it definitely seems like a hike in november or december is likely given the strengthening of the economy. Listen, i know that the Second Quarter gdp came in at 1. 1 . That was dreadful, if you will. Worst recovery since 1949 overall. We had two, the last two months of job gains came in at 547,000 jobs, so there has been firming there, and thats what the feds looking for. Connell let me go to jeff next and brian can maybe give us a Bigger Picture point of view. We were up triple digits on the dow, and now were down almost 15 points. What are people reading into the yellen comments . Or what are you reading into them . I know everybodys parsed every word she said, but i think the overriding thing here is that she went out of her way to say, you know, were or very close to raising rates. And the markets didnt read it that way initially. They basically said, you know, the rates are gog stay low, and the dow went up. And usually the first move out of a statement out of the fed is a wrongway move, and thats what weve got here today. Connell that is true. Looking at these days, because you react first, then you start to think about it a little bit more. Brian, the Market Reaction is what it is, but the Bigger Picture as i said wed come to you, picture of the economy, is what . She talked about, quoteunquote, sufficient enough growth to further improvement in the labor market. Is that what you see as sufficient enough growth . Hows the economy doing . Its hard to say sufficient enough growth. I think the problem she has is we have this twofaced economy. On the one hand, you have jobs numbers that look pretty good on the whole, but you have Economic Growth numbers that look very bad, and what do you do with this . Its not a clear indication of moving one way or the other. Each though shes trying to sound more hawkish, markets are still really not quite buying into that, and thats why even for a december rate hike i think markets are still saying its likely but not overwhelmingly likely. Connell okay, lets talk about the timing a little bit. Dagen, how much do you think politics plays given the election and december would be a month after the election, how much of it is simple politics, or is it economic timing . For her sake, shes been bashed on the campaign trail. It would be easier for them just to wait until after the election. Connell right. So shes not caught in the crossfire, if you will. But i want to say the fed started out this year saying it was going to raise Interest Rates four times this year, so its essentially been dead wrong. One thing that you did see which was interesting, stock market volume very light in this kind of dog days of summer trading session. The treasuries, money started flowing into treasuries, and the treasuries got a little bit of a bid. And if you look at her forecast for longerterm Interest Rates, you know, over the next several years, shes really she came out and gave a range of potential possible Interest Rates. And so that, shes really shes, essentially, saying listen, rates could be low for a lot longer, and thats one of the reasons that you saw the people buying treasuries. Connell what do you guys think of timing, jeff first, then brian. Is there a political influence on that or just what dagen is talking about in terms of how the economic timing looks . Well, if fed will tell you that they are not political, but i lived inside the d. C. Beltway. I have very good contacts on capitol hill, and the Federal Reserve does, indeed, look at politics. Now, ive said for the past four months i dont think shes going to raise rates until after the president ial election, and im sticking with that call. Connell so december makes sense. Do you agree, brian, that it would make p sense to stay out of this . Its going to be a quarter point anyway, you may as well wait for december . Yeah, theres no upside for moving. They have a credibility problem, thats what dagen was mentioning, and thats still the case today. They make that credibility problem worse if they try to do anything in september, november. Connell four hikes a year, whatever happened to that . And she came back earlier in the summer, so huge credibility problems. Again, thats why it just doesnt make sense for them to move in september. But if they can create a clear runway for december, they can actually guide and execute which is exactly what they need to do. And dont forget garbage growth in the Second Quarter. Connell it really was. And remember that may jobs report . The economys been all over the place, and the fed just kind of watches it like a tennis ball. Connell no, youre right. Were going to be talking about what the political campaigns been like the last couple of days, but if it wasnt about that, it could be about this. Dont you think, jeff, trump could be making a case, say growth is horrible and, you know, the economys in real trouble, that maybe is he missing a chance to do that . What do you make of the politics of it . I think he has missed a chance to do that. Its the nastiest president ial election i have experienced in 67 years on this, on this planet. I will add one thing. I talked to my economist after the yellen speech, and he thinks the number is 150,000 for next friday. If thats the case, rates are not going up in september. Connell right. Okay. And well wrap it on that, brian, what do you think . Is that a number that you would work with or thats a really tough number actually. But i do agree, if its 150, that takes it completely off the table for september. Connell i know the whole thing is a crap shoot, but what is your number, brian . Sorry, dagen. I would say closer to trend over the last couple months, maybe 190 well, the trend is 292 and 255. Good luck getting to those highs. Connell all right, guys, thanks a lot. Boy, i apologize, dagen, for that teleprompter at the beginning, threw me off. You think. [laughter] connell the Federal Reserve watching this disappointing number that we talked about on the u. S. Econo. My there it is, dagen brought it up 1. 1 . Thats the growth point on an annual basis. Kind of following what we were just talking about, could donald trump make a bigger issue of this . The last time a gdp figure came out, this was following up on that. He got off message and was talking about another topic, but now the president ial race has turned into, you know, whos a racist, whos a bigot, all this kind of stuff that well talk about in a few minutes, but the economy is not great right now, is it . No, it isnt. And i think he certainly could make a case about that, and it hasnt been great for seven years. This is the slowest recovery weve ever had by a huge factor. But he doesnt talk about policy much, so i dont know that he will. Connell what do you think is going on then in the actual economy right now . Youre right about the longer term and people put in the statements about president obama since he took office, weve had an annual growth rate of just 1. 7 . So the 1. 1 is a little lower than that, but its been below 2 . What is Holding America back the most right now, your view . Well, i think its we have the wrong monetary and fiscal policies. The policies that have worked in the past have been ignored. We have unconventional monetary policies. And probably the biggest factor we have is an extreme level of regulation. Two or three times greater than any other administration, and thats why our productivity is low and why businesses have practically no confidence in the future growth of the u. S. Economy, because of that and because the worlds economy isnt doing well. So these combination of factors. Connell that is something that could be fixed if trump, say, if he were to win, he could move in with executive orders and do a lot of that, couldnt you . Wouldnt even need the legislation. Or are you talking about something much bigger . No, no, absolutely. I think a lot can be done. And i think the bully pulpit of a president who says they are going to do something about the economy and do work on productivity and less regulation and, certainly, no increase in costs that have occurred to Small Businesses particularly because of obamacare. All these things have been very, very negative for Business Growth and job growth. Connell Corporate Taxes. Thats Something Else thats come up, comparing us to other countries, right . Were not as competitive as we could be there. What do you think the Corporate Tax rate should be . I think that the rate theyre talking about around 25 is about right. You could be a little bit lower than that, but i think 25 s a good place to start, and i think theres actually bipartisan agreement on that. And that should be something that could be passed in 2017, whichever party is in power. Connell its not ridiculously low. Its not like ireland at 12 or some of the numbers, trump has talked about going much lower, i think 15 . Finally, income taxes, upper income people, what percentage of their income should they be paying in taxes . I think the 39 is a reasonable number, but what i really would like, what i really would like to see is a much lower rate, marginal income tax rate and eliminate deductions. Wa 2530 rate, but eliminate all these deductions so that we have, you know, relatively level income coming in by the lower tax rate, because the deductions wouldnt be allowed. Thats a much better way to have the economy grow is have lower marginal tax rates. Connell right. Then people pay the actual rate as opposed to getting all those deductions. Thank you, sir. Thank you very much for coming on. Were going to switch gears and talk about this battle for the white house that has turned into over the last couple of days a battle over race. Both candidates just releasing dueling videos, and in those videos they attack each other on that issue. They also have been going at it on the campaign trail. Watch. Donald trump has built his campaign on prejudice and paranoia. Its the oldest play in the democratic playbook. Youre racist, youre racist. More and more it seems as though his real message seems to be make america hate again. To remember these three words shame on you connell okay. All of that fuels the debate over whos best to fix inner city economic problem. We do have Ebony Williams with us in the studio as well as new york gop strategic adviser, john burr net. Boy, its been burnett. Boy, its been a couple of days. We talk a lot about the economy. To some extempt, this is an economic extent, this is an economic discussion, but its really gotten ugly the last couple of days. Whos been the winner and or loser here . I think they both come off as incredible losers here. Yes, both of them. Youve got two nonblack people talking very much about black people in this negative narrative. But really its a bunch of blaming and namecalling. Hes a bigot, shes a bigot. What i see is the actual black Community Becomes a pawn in this. Connell right. I dont hear a lot of actual discussions about how to actually fix some of these challenges the community has. Connell do you agree with that, first, john . Well, i think that hillarys attacks should be expected. Why . Because donald trump is making a play for the mothers milk of the Democratic Power base which is the black vote. Connell hes at 1 or 2 of the vote in the black community but hes going after it. Connell the only reason i asked that is some people have been saying this is really much more about suburban voters, many white women, for example, traditionally republican that donald trump has been losing in some of the polls, that his rhetoric is more about that than the actual black community. What do you say about that . Again, donald trump is going after the mothers milk of the Democratic Party base, and with that comes a lot of attacks. But i do agree with ebony, donald trump has to say on message. He has to state why his policies are better. Black people, including black lives matter, already know the history of the clintons, the crime bill and everything that they have done that has decimated the black panel black family. So trump needs to make sure he gives black voters a reason to go to the polls. Connell has he done any of that . Hes started. Connell really . Give me one example that says, you know what . This would help in the black community. As far as jobs. Connell okay. He met with a group of not just black political leaders, but everyday, common folk. And he listened to, you know, what their gripes are in terms of jobs, education, criminal justice reform, things connell well, that is true. That was a group of black leaders, black people not where his rally, the criticism is as you brought up, donald trump speaking to largely white crowds. Thats right. And, look, hearing grievances and gripes is a start, i agree with you, youve got to start somewhere. But im talking about policy proposals, talking about advancing entrepreneurship opportunities u school choice, daytoday things that are going to make life better economically and otherwise for the black community. He does this. He does that and he will continue to do that. Just to back up a moment, when he launched in terms of his advocacy in terms of the black vote and going after it, he stood up in front of a crowd of white people to tell them that, listen, there are a lot of issues in the black community that need to be addressed. How many other people have done that . And then he followed up with other meetings. [inaudible conversations] i was going to say, i would have been a little more persuaded had when he went to jackson, mississippi, which is 80 black, a, you know, ginormous black community, there would have also been a more diverse crowd. I think in this situation youre damned if you do, damned if you dont. Connell his Campaign Manager, Kellyanne Conway who was on with Stuart Varney today and respond toking to some of the attacks from the Hillary Clinton side on donald trump. Watch this. This is all hundt has. Its not like he can tell us, hey, its a good idea that millions more are in poverty or obamacares a complete disaster, that i had no policy for Energy Independence in this nation or rebuilding our stuart she says donald trump empowers the white supremacists, empowers the racists by and im personally offended. Im the Campaign Manager of that campaign, and im personally offended thats where she would take this conversation. Connell the one thing id say, ebony, is that Hillary Clinton did need, a lot of people would argue, to change the subject. Youre talking about emails, the Clinton Foundation [laughter] this is how she chose to do it. And thats nasty. Connell so you think its completely inappropriate. Its using the black community as a pawn for her political advantage, and i agree she doesnt have a leg to stand on in terms of credibility. Youve within in proximity to power for 30plus years, mrs. Clinton. What have you done that has tremendously helped this group of people . Connell finally, do you think donald trump wants to talk about this topic . It seems like hes doing it on purpose. Hes going to go into the black community, some cities like detroit and others. Does this work for him, or would he be were better off avoiding . Absolutely not. Donald trump, if hes going to be a leader for everyone, he has to reach out to everyone, and hes doing that. Connell hes doing it. Hes putting action behind it as well as policy. Again, hes listening. Just like he does in terms of when hes erecting a building. He doesnt only talk to the project manager, he goes to the electrician and the plumber, and thats what hes doing now. Connell thanks, guys. I appreciate the conversation, thank you. Connell well, coming up next, well talk about a number of these issues as carew toe coast to coast continues, but well also get into the epipen outrage. This has become a huge story. You know, is it being blown out of proportion . Are the critics wrong . Were going to get into all that. Then the big banks have a big warning about the market, and its about donald trump. Cavuto coast to coast, Interest Rates, janet yellen, politics, telecom, whatever. Well be right back. You didnt read your Car Insurance policy. You just stuck it in a drawer somewhere and forgot about it. Until a dump truck hit your pickup truck and now you need a tow truck. Does your policy cover the cost of a tow truck . Who knows . You didnt read it. You cant even find it. The Liberty Mutual app with coverage compass™ makes it easy to know what youre covered for and what youre not. Call Liberty Mutual for a free quote today at coverage compass™ gives you the policy information you need at a glance. Available 24 7 on your mobile device. Switch to Liberty Mutual and you could save up to 509. Call thats liberty stands with you™. Liberty mutual insurance. Connell so on this epipen story, theres one person, and there he is, taking the companys side, mylan. Know the exceo Martin Shkreli who battled congress, he is defending the price hike for the epipen. Heres a tweet from mr. Shkreli, so the second mylan has a decent hit for a product, we all go nuts. Cant someone succeed and not be shamed anymore . And another tweet, mylan sells 400 products at 5095 off brand products. This is their big, one success and all of a sudden we want to burn them for it. Gary b. Smith is here. What do you make of that, gary . I kind of agree, i guess. Connell okay. I mean, it gets to my question is, do we let congress an