Fed Minutes Repeatedly Referenced Brexit Vote in June; Trump Shakes Up Campaign; Trump Meets With Security Experts On Fighting Terrorism And

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Up Campaign; Trump Meets With Security Experts On Fighting Terrorism And

ISIS; FBI Hands Over Documents Regarding Clinton E-mail Scandal - Part 1>

Elizabeth Macdonald, Alan Colmes >

Barnes, Mike Baker, Dan Mitchell >

Elections; Politics; Government; ISIS; Terrorism; FBI; Hillary Clinton>

PETER BARNES, FOX BUSINESS NETWORK SENIOR WASHINGTON CORRESPONDENT: Trish, await on data, especially the inflation data. That's the message from the Minutes from the July Fed FOMC meeting. Let me read from some of the text here, "Many participants judged that it was appropriate to wait for additional information that would allow them to evaluate the underlying momentum in economic activity and the labor market and whether inflation was continuing to rise gradually to the Fed's 2 percent target as expected, but several participants, some participants, rather, concluded that the committee should wait to take another step in increasing rates until the data on economic activity provided a greater level of confidence that economic growth was strong enough to withstand a possible downward shock to demand in the economy. However, some other participants judged it that another -- that another increase in short-term interest rates was, or would soon be warranted with a couple of them advocating an increase at the July meeting."

Now, of course, the July jobs report came out, after that it was much s stronger than expected. Brexit, is mentioned several times in the Minutes as well, but that was in June. And they seem relieved that the markets came back after the Brexit vote in June. Trish?

REGAN: All right, thanks so much, Peter Barnes. Let's get some more analysis as we watch these markets continuing to trade lower, now off 30 points on the Dow. You can see the NASDAQ down 17. We have with us, Michael Block, the chief strategist at Rhino Trading Partners, and Art Hogan, the chief strategist at Wunderlich Securities.

All right, it seems although these guys can never kind of make up their minds. There is a lost discord there. But some want to wait on data on inflation, and I think you might be waiting a big darn, long time, Michael Block, for that data on inflation because you've seen recent prints, for example, producer price indexes showing that producer prices are going down. I worry more about deflation. How are they going to comeback that?

MICHAEL BLOCK, RHINO TRADING PARTNERS, CHIEF STRATEGIST: But you're worried about deflation and they're worried about deflation. It's in the American psyche to worry about deflation. Everyone goes back to the great depression. It is in our DNA. But here's the thing, you know, everyone talks the data dependents, or the market dependents. I got say they're hot potato dependent.

The last statement what we just heard in those Minutes, they're worried about inflation before they worried about global turmoil. They're funny any excuse they came not rock the boat here. They don't want to raise rates. But we did hear something interesting in this Minutes which is a little more hawkish, it mean, the only way they could have been more dovish in the statement it would have been if they did a soap commercial.

But, you know, so -- you know, it came down to -- when them talking using that word, may not be warranted, that's a little more hawkish. And look what Dudley did yesterday with your colleague Peter Barnes. They're getting .

REGAN: Sure.

BLOCK: . more hawkish, now I think the market start to reflect that. Do they mean it though?

REGAN: Well, you know what, do they mean it, I mean, that's the big question. Let's not forget who these people are, of course, Art Hogan, we're talking about a bunch of academics like sitting around and think that they can tinker with the economy because they know better. And they think that by printing more money or leaving rates as low as we've left them for unprecedented amount of time you're actually going to stimulate the economy. Hate to tell them, but you need a little bit more than just one part of the equation. Fiscal and monetary policy must work together. What good is this going to do?

ART HOGAN, WUNDERLICH SECURITIES, CHIEF STRATEGIST: You know, Trish, the point you're making I think is pretty well-known at the Fed. The Fed is very clear every time Janet Yellen speaks to Congress. We can't do this alone. We need fiscal policy. We don't have that. I also believe that that the entirety of the voting members of the Fed believed they've waited too long. And I think they're running out of excuses. Brexit I think was the last stop there. So we know they're going to raise rates this year. It's either September or December. And, you know, September would be fine. I think markets are ready for that.

REGAN: Let's jump in there. September would be fine? I mean, you got middle of an election?

HOGAN: Yeah.

REGAN: Don't you think Hillary Clinton is going to say, ha-ha, I don't like the idea of rates going up in September, because the thinking would be that the market of course would move lower, Art?

HOGAN: Right. Well, yes and no. And I think that -- If the Fed thinks that rate is warranted that means the economic data is coming in better. And arguably though the data is coming in better we're creating 200,000 jobs a month, right? And that's reflection capitalization just as earlier this week, much better than expected. The consumer isn't dead. It's a shopping in different places. I think there's enough good news here. And, oh, by the way, we're talking about 25 basis points to get to the 75 basis points. I think we need to move.

REGAN: OK, you're creating 220,000 jobs. I take it. I like it. But you're not seeing enough wage growth to correspond with that, Michael.

BLOCK: No, the wages aren't there. And here's the problem, economists assume that if you get more tightness in terms of unemployment going lower you need wages to go higher. The problem here is structural though. Guys are get laid off from manufacturing jobs can't go to get programming jobs at a hospital in Nebraska right away. There's a structural mismatch here. I want to -- seems the labor forces are more homogenous than they are actually are. It's not the same. There's a mismatch here, there's structural problem. Fiscal policy is the answer.

REGAN: OK, so if fiscal policy is the answer, and I don't want to get too political with you guys because you guys are looking at this through an economic prism, so let's keep it that way, lower taxes, would that do something to help stimulate this economy? A lower corporate tax? Let's not talk about who is advocating it, you know. But -- a lower corporate tax?

HOGAN: (Inaudible) and regulation, right?

REGAN: Less regulation.

HOGAN: You're talking of those running a business, but two things they're concerned about is how much they pay in tax and how it's not competitive, right? And how much regulation there is, and then how much more is being written. So I think some combination of simplifying the tax code, whether it's corporate taxes or taxes across the board.

REGAN: You know, it's amazing because we actually we're almost there on corporate taxes. President Obama was talking about lowering corporate taxes. Everybody seemed to come together on that. It didn't happen.

HOGAN: Right.

REGAN: And now we're in the political environment, well, one side is saying no we can't possibly lower corporate taxes, because, you know, then big bad business is going to get away with something. But if we really actually want to roll up our sleeves and forget about politics and fix this economy, is it lower taxes and less regulation? Do you agree, Michael?

BLOCK: I like less regulation. But in terms of lower taxes where is the motivation here? It's got to be something, it's got -- A, get companies spending more money. And B, that money has to go to the right places. If it is just A, we're going to work in on their asset bubble here. We're going to get money flowing into non-producing assets. We saw this in the naughts.

REGAN: But don't we have that right now? I mean .

BLOCK: Yeah. I agree with that.

REGAN: The money flowing into the stock market and these companies are not earning the way they previously had.

BLOCK: It's not going towards job retraining and education, the things that will reduce that wage -- that mismatch. Get wages higher, get quality of life higher. I know I sound like a heretic on Fox Business, but, you know, this is really where I see the money going. If they can go there, if either Trump or Clinton to make it happen, it goes. One without the other is problematic. It's not going to solve the problems.

REGAN: Thank you -- go ahead.

HOGAN: To Michael point that's correct. That all you have to do fix that is tie and repatriation of capital tax code to something that has a go to job training.

REGAN: There you go. I've said that all along. I don't get it. You get $2 trillion sitting overseas. One offering that money back, and maybe make a stipulation, so hey guess what you can onshore that money with no taxation provided you go to creating a new a plant, say, you know in area that needs it. And you create U.S. jobs. Michael and Art, thank you so much.

I got to run. We're going to get to the political equation now, because Donald Trump is shaking things up, announcing some major leadership changes in his campaign with less than three months until Election Day.

Trump naming Steve Bannon, a Breitbart News as CEO, and promoting pollster, Kellyanne Conway, to campaign manager. You know, Kellyanne she comes on this program quite a bit. The controversial Paul Manafort, will retain his title as chairman though it is unclear if his role will change. The changes come as poll show Trump trailing Hillary Clinton nationally in key battleground states.

But we should point out there's an Indiana poll that has him ahead, by what do you know, 11 points. So can he change things around right now? You know, the campaign is going to be airing some TV ads, in Florida and Ohio and North Carolina, Pennsylvania this week. That might make some difference.

Joining me right now is Trump surrogate Boris Epshteyn, and Fox News Contributor Jonah Goldberg. Good to see you guys.

BORIS EPSHTEYN, TRUMP SURROGATES: Good to see you.

JONAH GOLDBERG, FOX NEWS CONTRIBUTOR: And here.

REGAN: All right, you know, Boris, I'm kind of struck by the fact that all of sudden Donald Trump sticking to the teleprompter, sticking to a message, a message that I add very policy focused. Is this part of the turnaround?

EPSHTEYN: He's been doing teleprompter speeches for a while now, Trish. Is it a turn around .

REGAN: I'm sorry, he's been doing what?

EPSHTEYN: A teleprompter speeches for a while now.

REGAN: No, but he still did a few of those rallies with some landing him in trouble along the way.

EPSHTEYN: And he'll keep doing it. You're going to see -- continue seeing a candidate who does those policy speeches like a really strong one yesterday in Milwaukee and the night before on National Security on Ohio. But he'll also keep doing the rallies because it's important to reach people. He is the most relatable candidate we had probably a very long time, probably since Ronald Reagan.

So, you will see a candidate that does both .

REGAN: OK, but .

EPSHTEYN: . as far as changes go, it's an expansion of the team that happens a lot in August, September in campaigns like this. And it's a very positive .

REGAN: I'm not criticizing, Boris, I'm not criticizing the expansion of the team.

EPSHTEYN: I know.

REGAN: It's probably something that needs to the happen. I mean, you're in the final stretch right now. And you want to win this thing, I get it. And the question, are these the right people? Jonah, you know these folks. How can they help Donald Trump in your view or hurt for that matter?

GOLDBERG: Yeah, look, I have known Kellyanne for a long time. I think she's great. Clearly she knows how to communicate with Donald Trump. And that's probably a big asset for the campaign. I also know Steve Bannon, not as well, but I have known Steve for a long time. I think in many ways if you're working from the position that Paul Manafort was right a long with a lot of other political professionals, that Donald Trump desperately needed to pivot and start running like a general election candidate, rather than continuing to sell himself to constituencies that are already on board, then this was a terrible idea. Because Steve Bannon's idea is to say, he is guy that bringing on board to let Donald Trump be Donald Trump.

All the reporting and I trust the reporting for it's a lot of different source, all reporting says that Donald Trump was tired of hearing Manafort and other people tell him he needed to pivot, that he needed to change. He needed to moderate.

REGAN: And yet he didn't. I mean, Jonah, you saw the speech that he gave on national security.

GOLBERG: I know, that's the ironic thing.

REGAN: Where -- you know, and some commentators said and pointed and I actually -- it's interesting I was thinking that he says he was giving the speech. He tried to evoke sort of a Reagan style of tone. I mean, he wasn't yelling in your face. He wasn't going off on tangents.

GOLBERG: I agree.

REGAN: He followed a pretty logical path there, laying out his argument, laying out the case in a softer tone.

GOLBERG: I agree. There's -- it's probably been the best 48 hours that Donald Trump has had in a long time. Which is makes it so weird that they decided to bring in Steve Bannon, whose argument is, you know, you need to go back to bombastic populist nationalism stuff, be off-the-cuff stuff and exactly the moment where it seemed like Trump was actually starting to take direction. I think it is very strange. It'll be very interesting to see if Donald Trump if he -- you know, if he does in fact go back to these rallies, how much he starts to steps on his own message again. How much he makes his gaffs the issue rather than Hillary Clinton's standards.

REGAN: He's walking a very delicate line. I get it, because you need those people. He's been -- he's inspired so many members of the base. But at the same time, you know, let's not forget how many people dislike Hillary Clinton, right, Boris? I mean people just don't like her.

EPSHTEYN: Absolutely.

REGAN: She's not a great candidate. So, in theory this should be a referendum on Obama, and on Clinton. All he does is have -- he has to show up in some ways.

EPSHTEYN: You know, Trish. It's a binary choice, right? It's a binary choice between Hillary Clinton who's been a lifelong failure at everything, on failing the D.C. bar, to be in the worst secretary of state in this country's history. If you look over the world, we're worse off now, Libya, Syria, Russia, China, Mexico, worse off all over the world. We are now than before when she became secretary of state. So, it's a binary choice between her and Donald Trump.

Now, I disagree with Jonah respectfully, of course. I think Donald Trump is somebody who is a very authentic candidate. That's why he did so extremely well and knocked all those other 16 very strong candidates out of the race, 14 million GOP voters to not vote. So .

REGAN: You know, and you know -- I don't think Jonah is disputing that. He just said his authenticity is actually what, you know, sometimes gets him in a little bit of trouble however. So, on the one hand yet help .

(CROSSTALK)

EPSHTEYN: Right .

(CROSSTALK)

GOLBERG: It's not a general election strategy.

REGAN: It's not a general election strategy, OK. But let me -- let me .

(CROSSTALK)

REGAN: . quickly go to Jonah because, you know, everybody keeps citing these polls, and saying, "Ah, you know, there's no way he can recover." I think that's a mistake though because it is still early in the game and we've seen, for example, in '88 with Dukakis that he was able to turn things around. You know, I mean, Dukakis was actually leading, but yet, got nowhere near of the Oval Office. So, it could change, Jonah.

The other question I have for you is, are there people out there that are not answering polls correctly? In other words, they're embarrassed because mainstream media has effectively shamed them into thinking they can't vote for Trump and Lord knows they can't tell friends they're going to vote for Trump.

GOLBERG: Sure. In political science that's often called the Shy Tory phenomenon. Where people don't want to admit that they're voting for the Tory party in England or -- and that kind of thing it's happened a lot of times. I don't think it explains why Donald Trump is at 29 percent in Colorado. I don't think it explains why he is in double-digits behind in Virginia. It explains some of it, probably, maybe, but he's got real structural problems and that he is not winning over people outside of his base.

One in five, one in five Republicans aren't on board yet. That is his problem. And I don't think that listening to Steve Bannon saying, always double down, fight more, more cowbell is necessarily the way to win.

EPSHTEYN: I think you're ignoring .

REGAN: I don't know that Steve Bannon. Do you really think Steve Bannon will go in that direction, Jonah? I mean, he wants to win the thing too.

GOLBERG: I'm -- we'll see. I would be shocked if Steve Bannon said, moderate, moderate, moderate, pivot, pivot, pivot. That is not been the first.

EPSHTEYN: I think you're completely ignoring the fact that Kellyanne Conway is becoming campaign manager, right? So, it's very interesting combination of Steve Bannon, somebody who is been a very successful businessman and successful in media. And Kellyanne Conway, who is been very successful on politics side and is widely known as somebody who is a good -- strong moderate voice.

So, it is very strong team and although there are a lot of strong voices in the room combined with Paul Manafort and others on this campaign.

REGAN: All right. We'll, we're watching that with bait the breath as you well know, Boris and Jonah. Thank you so much.

GOLDBERG: Thanks.

EPSHTEYN: Thank you.

REGAN: All right. Donald Trump saying he is the law and order candidate, in a big speech in Milwaukee. The latest city plagued by horrendous violence, really anarchy they're on the street these anti-police protests.

And Hillary Clinton is standing with Black Lives Matter. Donald Trump, making it clear he stands with the police amidst rising crime across this country. Will his tough talk resonate with voters though? That's next.

(BEGIN VIDEO CLIP)

DONALD TRUMP, (R) PRESIDENTIAL NOMINEE: To every lawbreaker hurting innocent people in this country, I say your free rein will soon come crashing to an end.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

TRUMP: The violence, riots and destruction that have taken placed in Milwaukee is in the soft on the right of all citizens to live in security and to live in peace. Law and order must be restored. The war on our police must end and it must end now.

(END VIDEO CLIP)

REGAN: You know it's crazy, right? I mean to think that your own police officers are at risk, for just trying to patrol their own cities. I mean, that's really a form of anarchy. And say, you see Donald Trump, campaigning on this promising to restore law and order. Trump making it very clear that under his presidency, violence against anyone will not be tolerated. He made those comments at just few miles from Milwaukee which a city that has been rocked by violent riots in recent days. And Trump blames the left policies for the mess, so many cities like Milwaukee are in. Listen to this, here.

(BEGIN VIDEO CLIP)

TRUMP: My opponent, Hillary, would rather protect the offender, than the victim, big problem in our society. Hillary Clinton backed policies are responsible for the problems in the inner cities today and they vote for her is a vote for another generation of poverty, high crime, and lost opportunities.

(END VIDEO CLIP)

REGAN: So, is this going to resonate with voters? Joining me right now, the author of, "War on Cops", Heather Mac Donald. Good to see you, Heather.

You and I have talked about this before. I mean, you know, we have come so far as a country, really. I mean, you know, and there is still racism that exists. However, it's nothing like it previously has been and yet, Heather, we're dealing with that in the streets of Milwaukee right now? Why?

HEATHER MAC DONALD, WAR ON COPS, AUTHOR: Well, because we've had a, what Trump rightly called a false narrative about the police for the last two years. Started by the Black Lives Matter activists, but amplified by President Obama, echoed by Hillary Clinton, that says that cops are on a lethal homicide surge against blacks. That is simply false, but we shouldn't be surprised when you have the president of the United States, you know, leading Democratic contender for that office constantly telling blacks that they are being preyed upon out of the most vicious racism by the cops. We shouldn't be surprised when we have outbreaks, assassinations of officers, and outbreaks against the very foundation of a civilized society which is people's livelihood, property and lives.

REGAN: Let me get away from the cops for a moment. And by the way, just you know, I think our viewers know this but this was the black officer shooting, a black man. So, it's not as though this was a race thing. This -- you know, but yet people want to make it into that. But let me talk about these communities and why they're struggling so much? I mean you've seen the statistics Heather. Single -- the babies being born to single moms, 78 percent of babies today being bond to single moms in -- by African-Americans. I mean, it -- the numbers are kind of staggering and you think of the social economic disenfranchisement that they're dealing with. And, in some ways it's no wonder that there is far more crime in these communities.

MAC DONALD: Well, Trish, you've put your finger on the most important cause of this violence, which is kids growing up without fathers. And as importantly, kids growing up without the expectation, boys growing up without the expectation that they have to become bourgeois citizens and marry the mother of their children. Until that problem is solved, we are going to be dependent on the police to maintain order because families haven't .

REGAN: But Heather, how do you solve it, when you know, a woman may preferred to be married to Uncle Sam than married to the father of her child because it's easier, less headache, and you get a paycheck every week in the form of welfare.

MAC DONALD: Well, yeah. I think you need to actually restore the stigma to single parenting. And we've got all of feminism but we're going to have to fight to do that. But I think society has to be just univocal and insistent in saying that fathers have an essential role to play in raising their children. Feminism has taught us to forget that truth. And we think that males are somehow an expendable option, when a mother is deciding to have a child. That is just not the case.

REGAN: Yeah. Well-said, well-put as always. Heather Mac Donald, thank you so much.

MAC DONALD: Thank you, Trish.

REGAN: The FBI handing out some of its documents from the investigation into her e-mail scandal as several Republicans say, she perjured herself when she testified before Congress. Will it matter with voters? Stay with us. We're back in two.

(COMMERCIAL BREAK)

REGAN: All right. Breaking right now. Donald Trump is meeting with law enforcement and security experts as we speak, to discuss defeating radical Islamic terrorism. You see the picture coming to us right there from New York City. You have General Michael Flynn, Mayor Rudy Giuliani, Michael Muchowski, Senator Jeff Sessions, Congressman Peter King, all there among the many experts that Mr. Trump is speaking with.

Now, Trump earlier of course this week, they recall on Monday laid out a pretty bold plan to defeat ISIS and terrorism both here and abroad. And then last night in Milwaukee, he laid out the plan to support law enforcement to combat crime and poverty here in the U.S. It's all part of his effort to get his campaign on track to keep on message because these are the policies that matter to Americans right now. They want to be secure and they want to hear how he is going to make us secure.

The FBI, handing over some of Clinton's documents to the House Oversight Committee as Republicans insist the Democrat nominee perjured herself during testimonies to Congress last October. The materials reportedly contained classified and other sensitive material. The Clinton campaign is pushing back. Concerned Republicans would leak those materials in the weeks leading up to the election, and this isn't all that's haunting Clinton. I mean, today, even the left leaning Boston Globe had an op-ed out calling for Clinton's Foundation to stop accepting donations, arguing that it's a conflict of interest. You think?

The inherent conflict of interest, the paper reads, was obvious when Hillary Clinton became secretary of state in 2009. She promised to maintain a separation between her official work and the foundation, but recently released e-mails written by staffers during her State Department tenure make clear that the supposed partition was far from impregnable. But that was about at State if the Clinton Foundation continues to cash checks from foreign governments and other individuals seeking to ingratiate themselves with a President Hillary Clinton, it would be unacceptable.

There you go. Yeah. Unacceptable. I mean, how on earth is the Secretary of State somehow still conducting business with these other countries where she's accepting money, and for her charity, a charity which by the way isn't really a charity because only 10 percent of the profits actually goes to charities. Anyway, at what point does this really resonate with voters?

A recent poll shows the two-thirds of Americans are with Bernie Sanders. They're tired of hearing about the e-mails. Joining me right now from the Weekly Standard is Fred Barnes.

All right, I'll tell you this Fred. If they're tired about hearing about those e-mails, they ought to hear about this pay to play issue between the State Department and the Clinton Foundation, because, you know, I keep looking at it and I think, you know, she's a smart woman, right, Fred? She's a smart, smart person as is her husband.

So she either knowingly accepted these donations while still knowing that at some point she'd want a future political career or she didn't. So, if we assume she was just dumb and didn't understand it, then she's just a dumb. And if she did understand it, then she's obviously corrupt?

FRED BARNES, THE WEEKLY STANDARD: Well, she's not dumb.

REGAN: All right! I -- you know, I don't know, you know, she's not dumb, you're right.

F. BARNES: Yeah.

REGAN: So?

F. BARNES: Well, look, I think the step that you brought up by the Boston Globe, saying that -- take a very small step of not talking any more contributions is maybe just the beginning. The mainstream media has been seemingly dead set against writing stories and doing investigations about the Clinton Foundation. And they've passed up on material that was given to them by the author of Clinton Cash, Peter Schweizer.

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