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Elect Trump Taps Betsy DeVos To Be Education Secretary; SC Gov. Nikki Haley
Accepts Pres-Elect Offer To Be U.N. Ambassador; Ben Carson Hints At
Possible Trump Administration Position; Thanksgiving Travel Rush; Judge
Blocks Overtime Rule; Dow Hits Lifetime High; Eli Lilly Alzheimer's Drug
Fails Key Clinical Trial; Obama's Final Turkey Pardon - Part 1>
Rothman, Elizabeth MacDonald, Kat Timpf>
John Rowley>
Markets; Economy; Business; Donad Trump; Betsy DeVos; Nikki Haley; Ben
Carson; Mitt Romney; Pharmaceuticals; Eli Lilly; China; Barack Obama;
Politics; Republicans; Democrats; Government;
ASHLEY WEBSTER, FBN HOST: OK, lets just cue up Peter Barnes is waiting in Washington, D.C. with the latest details. Peter?
PETER BARNES, FOX BUSINESS CORRESPONDENT: They will be raising rates relatively soon, Ashley, as long as incoming data provided some further evidence of continued progress towards the fed's objectives on inflation and on jobs markets. So we hear that phrase, relatively soon, once again. This was the meeting in the beginning of November, just a week before the presidential election.
So the fed, as you recall held steady at that time, did not change its benchmark Fed funds rate at that time. And so, now this term, relatively soon, has been interpreted to mean that this upcoming meeting in December, mid-December, is the likely one for the next rate hike.
However, the minutes also show that some participants are concerned about the fed's credibility, saying that the recent Fed communications were consistent with an increase in the Fed funds rate in the near or term, or agreed or, I'm sorry, in the near term or argued it to preserve credibility such an increase would occur at the next meeting. So, once again more concrete point, pointing more firmly towards December. Ash.
WEBSTER: All right, Peter Barnes, thank you very much. Wow, that's relatively soon phras. Again, let's get into this.
Joining me now "Wall Street Journal" U.S. news editor, Glen Hall, along with Heritage Capital president, Paul Schatz.
Glen, let me go to you first, OK, they're worried about the credibility. I'm assuming from what Peter was saying if they don't raise rates, is that right?
GLEN HALL, WSJ U.S. NEWS EDITOR: That's right, they been signaling for a long time that they wanted to move and they have been following the dots, and they've been going in the right direction. So this anticipation is very strong that the time is to move. And we've also heard Fed chairman Janet Yellen worrying that if they don't act soon they might be forced to make an abrupt action later on which would be more disruptive.
WEBSTER: All right, let me bring in Paul, OK, we heard again. We got to keep an eye on inflation and employment, Paul. What exactly are we waiting for? What are the actual trigger points on those two particular topics?
PAUL SCHATZ, HERITAGE CAPITAL, PRESIDENT: Well, first I can't find anywhere in the dual mandate where it says credibility is one of the reasons the Fed should take action. I'm floored to hear that, frankly, I'm embarrassed for the Fed. And I'm at big fan of the Fed. I cannot believe they actually put that in the minutes. That is number one.
Two, I'm an outlier on this. I don't think they should raise rates but if they're going to, now is certainly the time. They've laid the path -- I mean, literally brick by brick, Lincoln log by Lincoln log to raise rates in December.
If they didn't every person on the street would laugh even more than they already do. So the Fed is looking at -- clearly looking at inflation data, looking at jobs data, looking at GDP, none of them, none, lead to an overheating, hot, worrisome economy. But the Fed is going to do this anyway. I think it is wrong, just raising rates another quarter point or two or three more rates hike for next year is not going to give them, frankly, any bullets in their arsenal when they actually to lower rates at end .
WEBSTER: That's a good point.
SCHATZ: . of 2017 and 2018.
WEBSTER: That's a good point. Glen, should they be raising rates? Paul says no, but if this meeting was before Donald Trump won and, of course, we seeing the markets take off. What's your feeling?
HALL: I think if you look at the markets some people are calling that the Trump trade effect.
WEBSTER: Yeah.
HALL: There are certainly some optimism in there about how business climate might change under President Trump. But I think they (inaudible) is also an expectation that rates are going to rise. And you're seeing the transition a little bit away from the fixed income and more into the Stock Market, again. So, I think the markets are expecting this .
WEBSTER: Should they vote? To Paul's point, should they be raising rates?
HALL: Look, they have to at some point reload, right? They don't have levers yet that they can pull again if things should go wrong. So there is a appoint in which if the economy is strong enough, and it seems that all the indicators are there, now, it's not rampaging but strong enough to sustain a rate increase that gives them flexibility in the future.
WEBSTER: Paul, I'm reading you a notes that you -- you predicted the markets with the Dow would hit 19,000, but you're a little, perhaps, it did it too quickly if I'm reading your writings correctly, you know, it's correct, why are you concerned to the markets gone up too fast?
SCHATZ: That's right, I called 18 and 19 and in 2010 I said before this bull market ends we're going to see at least 20,000. I stick by that although I may be too conservative.
The rally from the day before the election until now has been very steep. There's nothing wrong with it. You've got phenomenal leadership from banks, from discretionary, from transport, from summits; you've got defensive issues getting hit over the head pretty hard. The bond markets has really been the decimation point.
So, I'm a little concerned that bond yields have really skyrocketed as much as they have. There's nothing wrong with the rally over the intermediate term, over the short term I'd like to see a little bit of pause. A little digestion, a little less exuberance from people who are bearish all along and all of the sudden woke up, and said, wow, we have a new president- elect. Let's start buying equities en masse. That's not great over the short term.
WEBSTER: Yeah.
SCHATZ: Long term, all systems go.
WEBSTER: Yeah, you're not the first to so say that. Paul, Glen, look, the economic landscape has changed since the Fed had this meeting, we're just getting the notes on with stocks are up, bond yields are up, the U.S. dollar is up. The markets in record territory, how does that change the thinking of the Fed do you think or doesn't?
HALL: We'll, I think we'll see when we get deeper into these minutes. But part of the equation there is understanding, you know, what is the economic climate going forward. And we had a lot of uncertainty walking into that election. At least we have a little bit more clarity down toward past the election.
So, that changes the dynamic and the equation a little bit for the Fed in terms of trying to see what the future might hold for the economy. They don't want to see the economy overheating but they also don't want to see it underperforming. How much stimulus can they believe in the marketplace is the big question.
WEBSTER: Right, good question for Paul as well. Paul, you know, look, the Fed -- the Fed is going to have to live in a Trump world. Trump-nomics whatever you want to call it. How does that change things for them?
SCHATZ: It doesn't, first of all, we're still living through the typical post-financial crisis recovery. It's uneven, it is uncertain, it is teasing, tantalizes and terrifies. This is normal recovery which frankly President Obama has stuck his foot on the throat of.
So, I would argue that as we lower individual tax rates and corporate tax rates and repatriate and cut regulation and perhaps do infrastructure, you're going to give this economy a really good swift kick in the rear end. If that doesn't work then I'll argue we've got structural issues like Japan has had for 30 years.
HALL: Yeah.
SCHATZ: So I'm giving the U.S. economy the benefit of the doubt. I think we'll going to see GDP growth more than three percent by the midterm election of 18. I think the Fed is going to probably continue to raise rates. Maybe they go to every other meeting next year. But I think everything is lined up to the give the economy its best chance of success since 2006.
WEBSTER: Well that's encouraging. Let just hope the Fed isn't constantly questioning its own credibility. We're out of time, Glen, thank you very much, Paul as well. Appreciate your comments.
Turning to politics, now, President-Elect Donald Trump appointing just moments ago, former Michigan Republican Party chairwoman and child school advocate Betsy DeVos to be education secretary, no Michelle Rhee.
The pick coming just hours after he tapped South Carolina Governor Nikki Haley to be the next U.N. Ambassador.
And, Dr. Ben Carson says an announcement about his possible cabinet position is forthcoming, just last week he send anyone an invitation but he posted on Facebook just a short time ago, "After serious discussions with the Trump transition team, I feel that I can make a significant contribution particularly to making our inner cities great for everyone."
All right, so, will Ben Carson be the next HUD secretary? And, are these the right people to help Trump run the country? And more importantly, unite the country.
Joining me now, executive editor of "The Weekly Standard", Fred Barnes.
Fred, great to see you as always.
FRED BARNES, EXECUTIVE EDITOR, THE WEEKLY STANDARD: Nice.
WEBSTER: What do you think of these picks? We can start with Betsy DeVos if you like but .
F. BARNES: Yup.
WEBSTER: . what's your general impression so far?
F. BARNES: Look, these are pretty dazzling appointments. And they're not necessarily people who backed Donald Trump in the campaign. I mean Ben Carson ran against him. Let's start with Ben Carson, here's a guy who was doctor at John Hopkins in Baltimore, in the inner city of Baltimore actually and grew up in the inner-city of Detroit, who -- I mean HHS, Health and Human Services is exactly the right place for him because he knows -- he knows what -- he knows the subject matter there very well.
Betsy DeVos had been education reformer for years and years and is very much for school choice and of course the teachers unions will go berserk.
And Nikki Haley was strongly anti-Trump. Remember during the presidential .
WEBSTER: Very much.
F. BARNES: . of the Republican primaries is very much, very critical. And here, she's going to be U.N. ambassador.
And, look, you have two women and one African-American. Remember when the media was saying a couple weeks over, maybe a week, or maybe just a few days ago that, oh, it's just going be the white male loyalists to Donald Trump au contraire.
WEBSTER: All right, talk about white males, how about Mitt Romney? I saw Newt Gingrich saying, this is a terrible idea not something that Mr. Trump should be thinking about is that more, what new things or is it, hey, Newt saying what about me?
F. BARNES: No.
WEBSTER: You know, I think Mitt Romney, could look -- could be, has the gravitas perhaps to represent this country around the world.
F. BARNES: Well, I'm a little dubious of it but Donald Trump seems to be moving in Romney's direction. I thought when he went and invited him in for a talk a couple days ago that was just, you know, unifying the party and being nice to everyone and broadening his base and so on. But, everything I hear is that Donald Trump takes Mitt Romney seriously, as potential secretary of state. We'll see.
I'd like to see somebody who knew more of the subject matter there, John Bolton I think would be very good. But Romney seems to be the number one contender.
WEBSTER: You know, it's interesting, it's almost like opposite world. The Democrats or those who oppose Donald Trump simply -- probably seems to be saying, you know what, this guys isn't as a bad. He seems very measured. He seems everything he wants on the campaign trail to a large degree whereas Donald Trump's base is saying what the heck is going on? You're supposed to be draining the swamp too many establishment people, kind of a strange dynamic right now.
F. BARNES: Well, it's a strange dynamic, but Trump I think to his credit is getting the people who are the most talented.
WEBSTER: Yeah.
F. BARNES: I mean, it's not, you know, these are not a bunch of Trump cronies.
Now, he obvious knows his national security advisor and he knows Jeff Sessions, that about a senator who is put in the Justice Department. Well, but the rest of these people are not intimates of Trump at all.
And, so, look, his search process has been very, very good, finding the best people for cabinet jobs, completely different from what the press was saying about him earlier.
WEBSTER: You know, I just want to come back to that point. One of the chants that we heard at Donald Trump rallies was lock her up, lock her up! And in fact during the debate he looked right into Hillary Clinton's eyes and said I'm going to get a special prosecutor and I'm going to lock you up. Now he's walked over that back. Does that hurt him?
F. BARNES: Well, no, I don't think so at all. Look, remember that supposed -- that I think a lot of people including many of his followers didn't take those things literally. I never though he was going lock her up? Did you think that? I mean it just doesn't make sense. Look .
WEBSTER: I think some of his supporters did.
F. BARNES: Well, maybe some of them did, but it would be good for the country anymore than .
WEBSTER: Yeah.
F, BARNES: . locking up Richard Nixon would have been when he was pardoned by Gerald Ford back in 1974. And I think it's the right thing and I kind of expect that Trump to do that all along.
WEBSTYER: It's been fascinating to follow and we follow it .
F. BARNES: It is.
WEBSTER: . every second of everyday, from Trump Tower to down to D.C. Fred Barnes, as always great stop thank you so much.
F. BARNES: And you're quite welcome.
WEBSTER: All right, if you're on your way to grandmas for Thanksgiving, you better give yourself extra time for travel. We say this every year, but it's true, AAA, expect this, by the way, to be the busiest Thanksgiving travel period in nine years. They estimate nearly 49 million people will travel this Thanksgiving. We have got Fox Business team coverage on what you can expect at airports and roads and everywhere else, next.
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WEBSTER: Hey, a record number of people are set to travel for the holiday, making security of course a top priority.
According to Airlines for America, more than 27 million people will hit the skies this Thanksgiving, that up nearly 3 percent from last year. So, what can we expect at airports? Crowds I would imagine.
Let's go to our very own Adam Shapiro, he's at one of the nation's busiest airports, beautiful Newark International Airport in New Jersey, Adam.
ADAM SHAPIRO, FOX BUSINESS: Newark by the interstate. Yes, we are here at the united counter. And it starting to pick up a bit but, listen, this is not the horrendous lines and dooms day crowds that we've seen in years past. Although there are some lines, you should know that TSA and Port Authority have requested that we not shoot the security area. But I can tell you that the lines that I'm watching process right now are no larger than you would have midweek on a regular business day. They're moving through that line in less than 30 minutes.
So, we are expecting more people here as you said, over a 12-day period that starts before Thanksgiving run through the holiday and afterwards, 27 million people expected to flight. And then when you consider AAA believes that 49 million people will go by train, plane, bus, or automobile traveling somewhere, it's the most people that traveled for Thanksgiving since bout 2007.
So, that might seem to be an optimistic sign unless you're stuck in traffic or a line at TSA, at one of the airports where the lines are pretty uncontrollable.
One of the things Ashley they have done to speed people through TSA at airports are the automated TSA lines. In which scenario is that to wait for the cart to come back so you can put your stuff in and send it you through. Well, those are now automated, for instance, Atlanta has been experimenting with that. They have it here at Newark, speed things up by about 30 minutes. And then finally you might recall in the spring there was a big nightmare at Chicago midway .
WEBSTER: Yeah.
SHAPIRO: .because the lack of TSA agents, they've got more agents hired. They've got about 2,000 new or part-time switched over to full time. And the other thing, they wanted everyone to sign up for TSA pre. Not as many people signed up as TSA wanted. But that seems to be helping as well about 10 million people who signed up for TSA pre.
So, look, if you're about to fly out here and you're going to Newark and you're flying united, guess what? That's about 45-second hassle. I think I can take that.
WEBSTER: I think we predicted such nightmares in the media, the people has said, blow it, I'm not going to go. So, we created our own .
SHIPARO: Yeah, like the media never gets it wrong, right?
WEBSTER: Never. Adam Shapiro, who is never get it wrong. Thank you so much, Adam.
All right, let's go to the other part of the story. To Connell Mcshane who's at one of the nation's busiest crossings. He wanted to go to a local bar. We said no, you have to go to the Holland Tunnel. What are we seeing there, Connell?
CONNELL MCSHANE, FOX CORRESPONDENT: Well, have you know, Ashley, I've been holding up for the last 10, 15 minutes, a honk if you're an Ashley Webster fans of the year, the horn is going in once year during my report, that's the simple reason why.
There is fairly big line. That comes as no surprise for us normal watchers of the traffic patterns around the holiday as I certainly. And I know Adam was making some of the points about the records that are supposed to be set, thank you the two big Ashley Webster (inaudible).
Some of the records that are supposed to be set this time and how this is supposed to be the biggest travel year since -- really before the economic blow up in 2008 going back to 07. You know, mostly people drive like nine out of 10. So, for all the attention we put on airports, most people drive that are heading out for Thanksgiving. And they love the low gas prices the last couple years. Look at nation's average this time around $2.13 a gallon, right? Historically that's quite low, it's actually $0.08 higher around the country that it was this time last year. But again historically, the last couple years we've been helped out by low gas prices.
Also, economically we've been helped out on the roads by other economic indicators. Wages have started to go up a little bit, consumer confidence started to go up here in the second half of this year. So all those things are helping, I don't think it's helping any of this -- the moods of any of these people, thank you very much, as they head out into the tunnel.
Now, I'll show you one last piece of graphical evidence, Ashley. I'm not sure how much this will help either, but Google map just put this together. Take a look around the country at the worst times to leave. It's pretty much right now if you're on the East Coast of the United States, New York, or Atlanta, 3:00, next hour is about the worst time you could leave, middle of the country in Chicago it's 5:00 maybe a little different out West, but the point is, don't travel now if you don't have to. I should make this on a bullhorn a public service announcement the time to have left would have been very early this morning like 6:00 in the morning when nobody is on the road .
WEBSTER: Yes.
MCSHANE: .these people probably didn't have a choice.
WEBSTER: Do you have a popular Google captain obvious map. And also, by the way, say hi to my .
MCSHANE: You're Welcome.
WEBSTER: . relatives because they are the only ones that are honking the horns as they go around and around the block. So say hi for me. Connell Mcshane at Holland tunnel. He wanted to be at the bar, but not.
President Obama's legacy taking a hit as the federal judge stop his administration's new overtime rule, puts a whole to it for now. It's a win for small business owners but will the White House find another way to declare war on businesses? We've got the details next.
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WEBSTER: A federal judge is putting President Obama's overtime pay hikes for 4.2 million workers on hold. The White House is vowing to fight that ruling even though employees are warning of job cuts to deal with what they call are the ever ballooning cost of regulation. Here with more on this now Club for Growth president, David Macintosh.
All right, David, you're with the Club for Growth. I would imagine you're happy with the ruling from this judge.
DAVID MACINTOSH, CLUB FOR GROWTH, PRESIDENT: Yes, indeed. I think it was a tremendous ruling. It was right on the law, and more importantly it will free up small businesses to be able to have flexibility in hiring people and not have to pay overtime if they're not getting value for it. One of the things that people realize when they sign up for salary job is that, that's not part of the deal.
WEBSTER: Now, people who disagree with you, though, David, they say unfortunately as a result of this ruling, unfortunately for the time being workers will continue to work longer hours for less pay thanks to this obstructionist litigation. How would you respond to that?
MACINTOSH: Two things, one, people will be able to get fair pay for the hours they put in, but more importantly, what will happen is, businesses won't have to have extra costs that they pass on to consumers and roughly about $2 billion worth is the estimate of this. Basically it's very good for the economy, likely actually to create more jobs as the employers have flexibility, knowing the heavy hand of Washington regulators aren't going to come in and re-negotiate all their salaries.
WEBSTER: Yeah, it's interesting. We have a start up there now. This law would have nearly doubled the threshold to which executive administrator from professional employees are exempt from overtime from 23,660 to 47,476 on the screen there. What kind of impact would have had on small business, David?
MACINTOSH: It's a tremendous impact. It would have cost them over about $2 billion, and that, they have no choice but to pass that on to their consumers. But many of them would say, I'm going to hire one fewer people if I have to pay for this overtime, could it have had impact on the number of jobs created as well.
WEBSTER: So what do you think at Donald Trump presidency does for small business? I mean he has to take the steps, but are you optimistic?
MACINTOSH: I am. I think he's going to have a thorough review. One of the best things he's announced already is he's going to require the agencies to remove two regulations before they put a new one in. That will help get rid of the old and very costly rules especially a lot of them President Obama and his administration have put in the last eight years.
It also sends a signal to the markets. We're not going to continue this grinding out regulations that cost us in the energy sector, cost us in manufacturing, cost us in the finance sector with all the bank rules under Dodd Frank. There's a lot of work to be done, but it will have a big impact on the economy, likely to increase growth by 2 to 3 percent.
WEBSTER: Well, you know, listen should the government be in the business of telling small business or any businesses for that matter how much they should paying their employees?
MACINTOSH: I think it's a free market, people should negotiate that, when they've got good skills they'll be able to make a lot of money. If they don't have good skills then they'll get what they're worth in the labor force.
WEBSTER: Because the bottom line is we've took about the five to 15, the increase in the minimum wage, but for those small businesses living on the edge that can very easily just push them over that edge and then no one has a job, right?
MACINTOSH: That's right. Then all everybody else loses their job when the business goes out of business. These regulations have huge unintended consequences. They end up hurting some people. And, some people benefit with the slightly higher wage but they have to earn that or the job will go away.
WEBSTER: Very good point. We'll leave it right there. David Macintosh, thank you so much for joining us. Appreciate it.
MACINTOSH: My pleasure. My pleasure, Ashley.
WEBSTER: President-Elect Donald Trump proving once again he is willing to work with anyone who is willing to work with him to make America great again. He wants former critic, Governor Nikki Haley to be U.N. Ambassador, and he's even reportedly considering a Democrat, yes a Democrat, Harold Ford, Jr., for a job in his administration. So is this a positive sign that our president-elect can unify this country? We debate next.
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WEBSTER: Pharmaceutical giant Eli Lilly's experimental drug to calm back Alzheimer has failed in a major clinical trial. Not only is it a devastating blow for families that are dealing with Alzheimer's but the stock too tumbling today on that news. Our own Lori Rothman is at the New York Stock Exchange with more on the story, Lori.
LORI ROTHMAN, FOX BUSINESS: And Ashley, this was supposed to be the first medicine to slow the progression of Alzheimer's disease. The company staff Eli Lilly said it is an absolutely heartbreaking development. For "Wall Street" too, look at the shares, they are down about 10.5 percent, Eli Lilly is the worst performer on the S&P 500 today. And it's also dragging down some of the other pharmaceutical biotechnology stocks as a result.
In particular, have a look at shares of Biogen down 4.3 percent. Biogen is also developing an Alzheimer's treatment, Merck, Celgene down as well today as the results of the outcome there.
The Alzheimer's Association basically saying that Alzheimer's disease could strike an estimated 28 million Americans by mid century, but a lot of the analysts today are out saying, you know, don't lose hope yet. Similar in the treatment of cancer it could likely take a combination of drugs to combat Alzheimer's disease and this particular drug so lot. It's a long many sellable drug name and the "Wall Street" analyst repots to it as (inaudible) could be one of many drugs in the future that could ultimately slow or gash this in fact (ph) to put absolutely just stamp out Alzheimer's disease all together. But for now that's where we are, Ashley.
WEBSTER: Yeah, so they keep the faith. All right, Lori Rothman at the NYSE, thank you so much Lori, appreciates it.
Turning to politics why not, President-Elect Donald Trump's priority right now is to make America great again even if that means working with former critics and folks on the left.
Mr. Trump also moving to the middle on his shoes like water boarding and climate change. But, if this, Senator Elizabeth Warren and Representative Elijah Cummings say the transition is, "chaotic and in disarray", and they're demanding that the government accountability office investigate Trump's transition effort.