This is a rush transcript from "Your World," August 7, 2019. This copy may not be in its final form and may be updated.

NEIL CAVUTO, ANCHOR: Well, Shepard, you are right. This was one for the crazy record books today at the corner Wall and Broad.

We're going to get to that in a second, because what transpired today is something we have rarely seen in a lot of days, in fact, in a lot of years. More on that.

But, first, you are looking live right now at El Paso, Texas. The president and the first lady are set to arrive shortly, visiting the city to honor the victims of last weekend's mass shooting and thank emergency workers for their heroic actions.

All this following a similar visit earlier to Dayton, Ohio, the scene of the second mass shooting.

We're going to speak to the Republican governor of Ohio, Mike DeWine, who has some ideas to how we can rein back on guns and easy access to guns. It's separating him from many in his party, but he says the time right now is to do this sort of thing right now.

All right, now back to the story of the moment, stocks. Take a look at how we closed the day. You might just sort of shrug your shoulders and say, well, why is Neil making a big deal of this?

Because we were down for a while close to 600 points. We were looking at a freefall based on interest rates tumbling and tumbling and tumbling some more. So what the heck happened?

Stephen Guilfoyle, AKA the Sarge, is a Wall Street legend, and he can make sense of this.

Because I'm telling you, Steve, this was crazy. How did we come back from a tumult?

STEPHEN GUILFOYLE, FOUNDER, SARGE986: Actually, even -- even though from P&L, a profit and loss standpoint, I benefited, I am concerned, because the Chinese have taken control of our equity markets by stepping away from currency markets, by stepping back into currency markets, and today by making it known that they were more than willing to come to Washington in September -- that's what turned this market around -- to discuss trade with the U.S. team.

CAVUTO: And that offered a ray of hope that maybe we can bury the hatchet between ourselves. But there's no guarantee of that.

GUILFOYLE: No, but that's why you saw -- that's why you saw yields at the long end of the Treasury curve improve, if you might, actually selling in bonds, but their yield improved. That's why...

CAVUTO: But rates were tumbling, right?

I mean, in Europe, and in places like Germany and France, they are negative interest rates. We were quickly following suit, it seemed, for a while. Yields had gone to multiyear lows. How did we stabilize on that front? Did we?

GUILFOYLE: Well, the yield for the German 10-year is, I think, negative 58 basis points. That's the last, which allows the U.S. 10-year to go as high as 175, 178, that range. So we're still below where we could have closed the day.

So you might still see a little bit of selling overnight in treasuries or maybe in the morning.

I have got to tell you, the Communist Party in China has a big shindig, a big 70th anniversary party that they're going to have in October. They're not going to give an inch in September.

So we're not out of the woods. I want folks to narrow their focus as far as investment goes. I want them to understand where they could go in either direction and do their best to manage this risk.

CAVUTO: All right. So, when you talk about the risk, it's trade-related. And so, when firms like Goldman and -- have come out and said, look, there's a distinct possibility we don't have a trade deal done by the election, then what?

GUILFOYLE: Well, if they -- if we get past October, and there's still really no progress, then we're go to November, we're going to the following November, not November 2019.

CAVUTO: Right.

GUILFOYLE: At that point, the Chinese will likely decide that they can't deal with President Trump. And they're going to hope that someone else replaces him the next year.

If not, if they -- if he comes back and wins reelection, which they are probably praying doesn't happen on the Chinese side, well, then they're going to have to negotiate in earnest.

CAVUTO: All right, now, we know interest rates have been coming down. The Federal Reserve is expected to cut rates at least two more times now, if you just what the market bets are. Do you agree with that? We will see at least two more rate cuts?

GUILFOYLE: Yes, because of what is going on around the world.

This is a global -- the Earth might be in a depression for the last 10 years that has only been alleviated through artificial means, which means irresponsible fiscal policy, irresponsible monetary policy.

So we may -- maybe we should have been in a depression the whole time. That's my concern. And that's why yields are negative all around the country, all around the globe, for that matter.

And that's why we -- we very high interest rates relative to the environment. People have to understand that.

CAVUTO: The other guys are negative. And we're around 1.5, 1.75 percent.

And I guess that does seem...

GUILFOYLE: This is not accommodative policy. This is a restrictive policy in this environment.


GUILFOYLE: And the only way to alleviate the yield curve, which is real important for purchasing managers -- this is the only way they go ahead and spend on their businesses -- is to steepen the yield curve.

And you can't do anything about the long end because every time it moves, the Germans come in, the Japanese come in.

CAVUTO: So what do you tell your investors? What do you tell the people who seek out your guidance?

GUILFOYLE: For one, try -- seek names that don't have that much exposure to China. That means the FAANG names. That means the software names.

These names are probably overvalued by traditional metrics. But this is -- when they get thrown out with the semis, when they get thrown out with the overexposed names, that's when you have to get them on a discount.

And that's kind of what you saw today a little bit, at least in the early going, when the market was so negative.

CAVUTO: So technology came well off its lows, a lot of financial issues as well off their lows, but still getting clobbered around.

I mean, for the faint of heart, I mean, I was talking to quite a few on FOX Business, which, if you don't get, you should demand, who was saying, I went out, I can't deal with this.

GUILFOYLE: Well, I believe you have to deal with it. You have to -- you have to face your fears. You have to face what haunts you.

You can't just walk away. If you throw it out, throw the portfolio away and say I'm done, you're going to do so at the wrong prices. And you're going to cost your dependents. And who do you -- who depends on you more than your children and your spouse? These are the people you have to go to bat for every day.

CAVUTO: Well, it depends how you feel about your kids on that given day, right?



CAVUTO: Sarge, thank you very, very much, Steve Guilfoyle with the read on that.

You know what is interesting? It's August, right? That, you know. And August, as Steve could tell you, is a notoriously tough month. So far for the Dow, it's resulted in about a 3 percent decline, close to 4 percent for the Nasdaq, a little bit more than 3 percent.

But it has a history. And we're going to be rifling through this on some prior years, August 1990, when we were dealing with Iraq invading Kuwait. We saw the Dow fall more than 10 percent that month. In '97, when we had the Asian contagion.

We're going to be going through this to show you there is something about August, maybe when people take vacation, and they don't realize that everything gets clobbered while they're away.

The read from Lindsey Piegza. We have got Bob Iaccino and Jonas Max Ferris.

Lindsey, there is something about August maybe, and maybe all this just sort of dovetails with that. But this month is still young. What's going to happen now?


And I think there's a lot of concern, particularly on the Federal Reserve side. The concern at this point is that the Fed is going to be in this one-and-done scenario, as they described the latest July rate cut as this mid-cycle recalibration, rather than committing to the beginning of a longer-term trend of rate redactions.

And so there is a lot of uncertainty in the marketplace about whether or not the Fed is going to step up and support the economy, support the market.

Now, that's not our call. We do expect the Fed to reduce rates as early as September. But that is the level of uncertainty and concern. Of course, that being said, the market wouldn't be clamoring for additional accommodation from the Fed if we didn't have these layers of international uncertainty, including slower global growth and, of course, deteriorating trade relations.

So there is so much that the market is looking at, trying to parse through, to decide how much of the risk is going to come to fruition. And if we do see that risk come to fruition, will the Fed be there to provide a backstop and provide additional stimulus for the market?


CAVUTO: I'm sorry, Lindsey.

It looks like, without reading too much into the signals the Fed is sending, Bob, that it's going to be as accommodative as necessary to deal with this trade thing.

But I'm beginning to wonder, given how low rates are abroad, that they can keep up with that, or they want to keep up with that.



CAVUTO: Bob first. Bob first.

BOB IACCINO, PATH TRADING PARTNERS: Yes, they can't race to the bottom on rates.

And you saw the Thai Central Bank cut rates today. Royal Bank of New Zealand cut rates 50 basis points. They have only done that three times, during the Christchurch earthquake, great financial crisis, and after 9/11. India cut rates,.

The Fed, it needs to keep up. But I don't believe it has pressure to keep up. I believe there are economic rain clouds. That German number this morning, to me, was the reason the yields collapsed here.

If you give $100 to Germany, you get $94 back after 10 years.

CAVUTO: That's incredible.

IACCINO: Those who have a mandate to buy treasuries came here this morning in droves. We saw the money coming in.

That reaction by the stock market I think was normal. It's a lot of quantitative reaction. But as you see with the comeback, nothing economically changed in the short term here. And the new tariffs have not been imposed yet.

They have just been threatened. So there's a lot to go on in terms of people bargain hunting, at least in the short term.

CAVUTO: We were just showing gold today, Jonas, had a nice jump. It's been actually bucking the trend, maybe a safe place to park cash.

What do you make of that?

JONAS MAX FERRIS, CONTRIBUTOR: It's not so much to say -- it's not a safe place, first of all. It's one of the most volatile assets you can buy.

It is strictly a bet that rates are artificially too low temporarily and that we're going to have inflation in the future. That's kind of always the gold bet thing, that somehow these negative rates all over the world are going to create massive inflation that we're never going to be able to get out of.

That hasn't happened. It hasn't happened for 10 years. Inflation, we can barely keep it above 2 percent at all. So I personally -- look, there's a complicated story here about the tariffs, how -- where those are going to go. Are they going to kick in? How low are central banks going to go with short-term rates?

There's also a very simple side. Right now, rates are low. They have dropped a lot since last year. There's a lot of mortgage refinances going on.

But what ultimately happens is, is the consumer going to start spending a lot more money because of it? Leases on cars are going to get cheaper. New home purchases are cheaper at these prices, because the payment is lower.

That hasn't happened yet. And if it really is a head-fake, and there's a strong underlying economy now, you're going to see some real fast action going on in the economy, which will make stocks go up, or we are on the edge of a European-style economy, where we deserve to have 1 percent or lower interest rates, and people aren't going to go run out and buy a car or a house just because rates are lower.

CAVUTO: All right, yes, it's hard to say, hard to gauge.

We do know we came back from a nearly 600-point freefall in the Dow to essentially unchanged by day's end. We will continue following it.

Guys, I want to thank you.

In the meantime, so much going on today, including the president on pace to go to El Paso, Texas. He and the first lady will be there shortly.

The Ohio governor, Mike DeWine, here as well -- why he has said enough is enough, we have to rein in these guns, we have to rein in who purchases these guns.

He's coming up.


CAVUTO: All right, we're told the president about 10 minutes away from landing in El Paso, Texas, to visit families, victims of those first responders who addressed the shooting their.

Garrett Tenney at a memorial site in El Paso with the latest -- Garrett.

GARRETT TENNEY, CORRESPONDENT: Well, Neil, when the president arrives here, he will be welcomed by a protest that was organized to tell him, we don't want you here.

Right now, there are more than 500 people in downtown El Paso participating in an El Paso Strong march. And according to organizers, that event is to take a stand against white supremacy and terroristic gun violence.

Several Democrats are participating in that march, including Beto O'Rourke, who has been outspoken that President Trump shouldn't be coming.


BETO O'ROURKE, D-PRESIDENTIAL CANDIDATE: He has sought to make this country afraid of us, has sought to keep us down. We will not allow him to do that. We will proudly stand together for one another and for this country. And that's what I'm doing with my community.


TENNEY: And, Neil, it's important to note that we have also heard from other folks, including some of the family members of some of the victims, who say they are glad President Trump is coming. They welcome him.

And they hope that this visit will change his -- the way he views and thinks about both the city and the Hispanic community across the country -- Neil.

CAVUTO: Thank you, Garrett, very, very, very much.

Now, before Texas, the president was visiting victims and first responders in Dayton, Ohio. Not everyone was happy to see him, however.

Mike Tobin in Dayton with more.

Hey, Mike.


With the arrival of the president at this spot for sad reflection, became a spot for friction over the great political divide one more time.

Trump and anti-Trump supporters packed the sidewalks here on Fifth Street in the Oregon District, where the gunfire happened. And they shouted at each other. It's a scene we have seen repeated many times. But this time it happened on ground where, just days ago, nine innocent people lost their lives.

Now, the president, before his visit, said he now supports background checks, doesn't support a ban on assault weapons.


DONALD TRUMP, PRESIDENT: I can tell you that there is no political appetite for that at this moment, if you look at -- you can speak. You can do your own polling. And there's no political appetite from it, from the standpoint of legislation.


TOBIN: One of the people greeting the president here was Republican Ohio Congressman Mike Turner.

Turner's daughter Jessica was here in the Oregon District when the blood was shed. That Republican congressman now supports the ban on assault weapons -- Neil.

CAVUTO: Thank you, Mike, very much.

Well, the Ohio Republican governor, Mike DeWine, meeting the president in Dayton earlier today. The governor is pushing state lawmakers to pass new gun control laws in his state.

He joins me right now.

Governor, thank you for taking the time.

GOV. MIKE DEWINE, R-OH: Thank you very much.

You know, Fran and I had the opportunity to be with the president and the first lady. And I can just tell you that, in every room he went, there were family members and there were victim -- and sometimes victims -- and they were all very happy to see the president. He was happy to see them.

The first lady does an amazing job as she talks with the victims and their families. The president also wanted to thank the police officers who made sure that people were safe. You know, that assailant got to the door, and these police officers literally stopped him.

So, the president went out of his way. He wanted to thank the six or seven officers who did that, and all the people, though, at the hospital, the other first responders, the emergency team, that cared so very, very well for all the victims.

CAVUTO: Governor, did you get a chance to share with the president your ideas to sort of rein in guns, or at least those who get access to guns?

I mean, it is fairly unprecedented coming from someone in your party. I don't think it's a fair rap against all Republicans that they're anti-gun, but certainly the efforts you're taking go beyond what others have done. Did you bounce that off him? What did he say?

DEWINE: Well, I did.

And the president said, "Why don't you send me a summary of that?"

He was very interested in what we're doing, because we're doing a number of things. One of the things that I have asked the state legislature to pass is what I think is a very well-thought-out process that respects the Second Amendment, respects due process of law.

But when you have someone who is a threat to themselves and or a threat to others and who has guns, there ought to be a procedure that you can -- the family members can go into court, or the police can go into court, and present the evidence, and have those guns temporarily taken away from that person.

We think it's going to save a lot suicides from actually occurring. We think it's also going to save lives of other individuals as well. We're really putting a real emphasis in the budget that was passed by the General Assembly, that I asked them to pass just a few weeks ago, on getting mental health help to kids in school.

We really have an epidemic. For whatever reason or reasons, we have more and more kids who have mental health problems and who are suffering trauma, trauma maybe because they had a -- have a parent who is an addict, maybe because of extreme poverty, other reasons.

But trying to reach these kids early is just really very important. And so we have set aside $675 million in this biennium budget to do that, to give our schools the resources they need to try to reach these kids early on.

CAVUTO: All right, now, part of that is following up on the so-called red flag law that alerts or can alert authorities to those deemed to be of questionable behavior, or they might be going down a dangerous path, or they're talking to their friends or relatives about doing some dangerous things.

Now, 17 states already have variations of this in effect. How would it be different in Ohio?

DEWINE: Well, we put -- I don't know how the other states have done it or what their process was.

But we reached out to our friends who are really strong believers, strong advocates of the Second Amendment, and said, look, we all agree there's a problem. You agree there's a problem. Help us put this together, so that we respect the Constitution, that you feel comfortable with it, but that we actually are able to get guns away from people who simply shouldn't have them, because they're a threat to themselves or a threat to others.

What we rolled out the other day, we had several people in the audience who we invited who are some of our strongest Second Amendment supporters in Ohio.

And I can't speak for them, but they were a part of putting this together. So we think it's well-thought-out. We think it respects Constitution. And it also is going to go to save lives.

CAVUTO: Now, the president hasn't been so much focused on guns as he has other issues, mental health, for one thing, Governor, but violent video games and the like.

Do you address any of that?

DEWINE: We don't address violent video games, nor do we really get into things that you really have to take a national approach to.

What I charged my team with doing and what we have tried to do is to do things that will matter, do things that we can control, and where we can see some results.

And the package that I put forward yesterday, I believe, will do that.

CAVUTO: All right.

DEWINE: Some of the things that we proposed yesterday, we have been working on for quite some time.

CAVUTO: Governor, thank you very, very much. Very good having you.

DEWINE: And to you.

CAVUTO: And my best to your people, been through a lot, as have you.

DEWINE: Thanks, Neil.

CAVUTO: By the way, fair and balanced, we're also going to hear from Dayton's Democratic Mayor Nan Whaley. She was with the president as well today.

She's coming up.



TRUMP: Well, my critics are political people. They are trying to make points. In many cases, they're running for president. So these are people that are looking for political gain.

I don't think they're getting it. And as much as possible, I have tried to stay out of that.


CAVUTO: All right, the president says that a lot of the Democrats criticizing him over the deadly shootings are just trying to score political points.

But do they risk going too far, politicizing the very tragedies that they say the president is politicizing? Back and forth, we go.

RealClearPolitics' Tom Bevan.

This is a time to remember victims and the families. And I'm wondering if the back and forth here is productive, but your thoughts on where this is going?

TOM BEVAN, CO-FOUNDER AND EXECUTIVE EDITOR, REALCLEARPOLITICS.COM: Now, it's not productive. In fact, it's destructive.

And I think we just had a poll come out last week showing that Republicans and Democrats and independents, people are concerned about the rhetoric. They want to see it toned down.

And I think what we have seen is an escalation of rhetoric, particularly on -- by Democrats -- and Trump mentioned the ones who are running for president, Beto O'Rourke in particular, using language like this is the Third Reich, other people saying that he's a white nationalist that condones this kind of behavior.

You have seen TV hosts saying that Trump sort of wants these things to happen. I mean, the rhetoric has really ratcheted up. And I think -- I think that makes people feel uncomfortable. And I think it's also -- it doesn't play the Democrats' benefit, I don't think, when they try and really pin this, lay this at the foot of Donald Trump.

We -- this is -- these mass shootings are things that have been happening for decades. We have never blamed one individual leader. We haven't -- we have tried to stay away from blaming political parties for this stuff.

So it's -- I think it's one of those things, Neil, we will watch it play out over time. But I'm not sure that it's benefiting the Democrats in the way that they think.

CAVUTO: Well, the coverage has been almost nonstop on the politics part of it, and should the president go there or not.

A lot of critics say he shouldn't go there. But when you're president of the United States, you assume also a role of being, sadly, because of these incidents happen so often to Republican and Democratic administrations alike, the consoler in chief.

And he's trying to console people. So I always think that, whatever your politics, just leave it at that.


And, look, I think Trump has his own issues with rhetoric and the way that he tweets and the language that he uses. But he condemned these shootings when they happened. The following day, he came out and condemned white nationalism, which is what everybody wanted him to do. He did it. It wasn't good enough.

And now he's going and visiting these cities and trying to console and meet with victims and first responders and law enforcement officials. And, again, to the extent that Democrats continue to criticize him, and say that he's not acting appropriately, that he's -- that he's supporting this kind of behavior, that -- again, there's a disconnect there between what he's actually doing and the rhetoric.

And I think, again, people -- people want to see the president unite the country. He's trying to do that. And we will see what the -- what the public ultimately feels.

But it's a bad situation, though. It's destructive for the country, when we have a tragedy like this, Neil, which we have had over and over and over again. And it's the same script that plays out. People just play partisan politics with it.

And it's unfortunate.

CAVUTO: I'm just wondering where it all goes. Sadly enough, in this environment where political candidates running for office to try to take his jobs -- you could say the same about Beto O'Rourke and whether he has seized on this for political gain.

So, cynically, it can prompt the same response from either party or either challenge to a party. But I just think that now, this week, is not the time for that.

BEVAN: No, it's not.

But that's kind of -- we're in the middle of a presidential race.

CAVUTO: You're right. You're right.

BEVAN: And, again, this is a scene of a -- people -- I think people understand, Neil, that these -- this is a complicated issue. There is no - - there is no silver bullet solution that will solve this problem, that it requires a lot of effort.

And it's not -- you can't just sort of say it's one person's fault or it's this or that. And politicians have struggled to get a grip. And I think that's what's frustrating for the American people, is, we play a lot of politics. People like to play politics in the aftermath of this, but we get no closer to the solution.

And this keeps happening. That's part of the frustration.

CAVUTO: Tom Bevan, thank you very, very much.

BEVAN: You bet.

CAVUTO: And in this political environment, we have a crazy day on Wall Street, accusations back and forth having nothing to do with this and everything to do with what the Chinese are doing or not doing.

It is a very confusing world. But, sadly, it keeps reappearing the same way -- after this.


CAVUTO: All right, the president now has arrived in El Paso, Texas, amid some protests.

We're told there were similar protests in Dayton, Ohio. But to those victims' families he met and those who were injured, he was well-received.

We will see what happens now -- after this.


CAVUTO: I know every crisis feels like the only crisis, but if you have been around these markets a while, such as my next guest, you have seen them before.

Sometimes, history might not exactly repeat itself, but as legendary investor Byron Wien can tell you, it sometimes rhymes.

I'm happy to have him with us right now to step back and take a big picture look at this.

Byron, thank you for coming.

BYRON WIEN, VICE CHAIRMAN, BLACKSTONE PRIVATE WEALTH: Well, always good to be with you, Neil.

CAVUTO: So let me get your take on what the heck is going on here. Is it a worldwide recession we have to worry about?

WIEN: Well, you can worry about it, but I didn't think we were going into one. And I don't think we have to have one.

But if the markets keep on going down and interest rates keep on dropping, you're going to destroy confidence. And if you destroy confidence, and consumers don't want to buy, and businesses don't want to spend money on capital equipment and inventory, then you could create a recession.

CAVUTO: Have you ever seen something where so many countries, at least five now, have negative interest rates?

WIEN: Yes.

CAVUTO: Does that worry you? What is that telling us?

WIEN: Yes, it's $16 trillion.


WIEN: But that's not only related to the economy. It's related to the creation of money that took place over the past decade.

In 2008, the central banks had on their balance sheet $3 trillion. That was the size of the major central banks, European Union, the ECB, the Federal Reserve, Bank of England and Bank of Japan.

Today, they have $16 trillion.


WIEN: So there was a tremendous amount of liquidity in the market, some of which was looking for a place to hide.

And that's why we have negative rates.

CAVUTO: Yes, no place to hide now.

I guess what I'm curious about is, how much do you blame this rift with China for all this?

WIEN: Well, I don't blame it -- all of it on it.

But the rift with China is very important, because I think the market was oriented toward the fact that there was going to be a deal with China. And as the prospects for deal with China diminish, the markets became turbulent.

CAVUTO: So let's say we don't get a deal. I think some of your old friends on Wall Street are saying we don't get a deal before the election.

Then what?

WIEN: Well, then I think the markets remain unsettled.

CAVUTO: Really?

WIEN: I think the markets count are counting on a deal.

I think Trump needs it politically. But I think China needs it economically. We were buying $530 billion worth of goods from China. And with these tariffs, it's just questionable whether -- how much we will buy.

Now China has lowered the value of its currency, because it hopes to sell more goods to countries other than the United States.

CAVUTO: Are they a manipulator? The president says they're a manipulator.

WIEN: I don't think -- no, I mean, I think that's...

CAVUTO: But they play fast and loose, right?

WIEN: No. You know, it's a sensible policy.

If you can't sell to a country where there are tariffs, you try to have your currency cheap enough to make your goods attract somebody else.

CAVUTO: To absorb the body blows, right?

One of the things that's come up, Byron, maybe you can help me with this, is a lot of people who have looked at the gains they have had in stocks are saying, boy, this is a good time just to get out, lock in my profits, get out. I don't know how this is all going to sort out. But I don't like it.

What do you say?

WIEN: Well, that's what you have seen over the last few days.


WIEN: But, at a point, stocks become attractive in relation to earnings, unless earnings are going to fall apart. And up until now, we didn't think we're going to have a recession in the U.S. and earnings are going to be good.

Now we think maybe earnings will be hurt somewhat. But this will still be a good year. We should..

CAVUTO: So, you're still optimistic, you're still bullish, cautiously so?

WIEN: Yes, I'm still basically positive.

CAVUTO: All right.

WIEN: Because I think...

CAVUTO: The president -- I'm sorry, Byron.

But the president's getting off Air Force One. As you know, he's in El Paso right now, the political heat back and forth, and the controversy and the protests with him there.

How do you think he's doing through all this?

WIEN: Well, I don't think he's doing well right now. But I think he has the tools to do better.

He doesn't want a recession. He doesn't want to be running for the second term if we're having a recession. And he's going to do everything possible to prevent it.

CAVUTO: So when you look at the markets right now, he has said already -- he's been a big critic of the Federal Reserve -- had they not hiked to the degree they did, and how rapidly they did, we'd be up thousands of points higher on the markets and the economy would be sprinting ahead at 5 percent-plus.

What do you think of that?

WIEN: No, I think the Fed did the right thing last year. And I think -- I don't think they needed to cut rates. I think the economy was doing just fine.

They did that in response to rates around the world. And I think they were probably politically motivated as well.

But I think rates were fine where they were, and I don't think the -- the Fed's mandate only is two points, one, low unemployment. We have low unemployment. Two, low inflation. So we have got both of those objectives. I don't think the Fed should have cut rates.

And I certainly don't think they should cut rates further.

CAVUTO: Young people look at this and say, I shouldn't be in the market. It's too volatile, too crazy. What do you tell them?

WIEN: I tell them that the market is a great place to build wealth.

This country is still a great country. We will survive this current turbulence. And they should look to try to understand the stock market. There are going to be good times and bad times.

And when everybody is negative, as people are getting to be now, that's an opportunity.

CAVUTO: The president has said, Byron -- I know you try to eschew politics -- that if any one of these Democrats were to defeat him, you're going to see the markets crash, you're going to see the economy do a reversal.

What do you think of that?

WIEN: I think there's something to that.

I think the progressives in the Democratic Party are not only scaring the president, but they're scaring some other Democrats. I think you need a more moderate Democrat to compete effectively with Trump.

CAVUTO: Do you think he will get reelected?

WIEN: Right -- up until now, before this, before this current market unsettled period, I thought he would get reelected.

If this continues, and if we're in a recession, I think he's in trouble.

CAVUTO: Byron, always good catching up. Thank you very, very much.

WIEN: Always good to be with you, Neil.

CAVUTO: All right, a Wall Street legend. He's seen so many crises. He's calmly gotten me through them, when I would be a young reporter breathlessly asking him, is this the end? is this the end? He would just shake his head: "Neil, no, calm down."

Very good perspective. I thought we all needed that today.

We are focusing as well on the president right now. He has arrived in El Paso. He was earlier in Dayton, Ohio.

Democratic Mayor of Dayton Nan Whaley was with him. She joins me right now.

Mayor, thank you for taking the time.


CAVUTO: How did it go with the president?

WHALEY: I'm sorry, can you say that again?

CAVUTO: I know it's loud there. I apologize.

How did it go with the president today, Mayor?

WHALEY: Look, I think the victims were super grateful to see him. And the first-responders gave him something from the Dayton police.

So they were honored to meet the president of the United States.

CAVUTO: So, you have been pushing very hard for some sort of action on guns.

WHALEY: Right.

CAVUTO: The president seemed to intimate that there might be a way to do that.

Did he specify what ideas he had in mind?

WHALEY: Not at all.

We talked a bit about -- both Senator Brown and I talked to him about the assault weapon ban and how important that would be. And that would be the greatest gift he could give the first responders.

But there was no real sense that there was "This is what I'm going to do" kind of action.

But I -- we intimated that he has a lot of power and that, if the president wants to get it done, he can get it done. I just hope he's not one of these all-talk/no-action politicians.

CAVUTO: Now, he has talked about trying to meet with a lot of the Internet and a lot of these high-tech guys at the White House on Friday to talk about violent games, that sort of thing.


CAVUTO: What do you think of that and whether that could be a contributing factor?

WHALEY: Well, you know, the country, Neil, that has the most violent games, video games, is actually in Japan. And Japan has no gun violence. So I don't think that correlation really works.

What we're looking for is real commonsense gun changes, and things like, in the state of Ohio, where 90 percent of Ohioans agree on universal background checks, on an assault weapons ban, around red flag laws, around straw purchases.

And even Governor DeWine, who's a Republican, has introduced these kinds of things...

CAVUTO: Right.

WHALEY: ... like straw -- straw purchases and universal background checks in Ohio.

So we're looking for that same kind of leadership from the president.

CAVUTO: All right.

And we had the governor on earlier, Mayor, to that point, to say he thinks there wouldn't be enough bipartisan support for that.

But the president, when it came to assault weapons, didn't think there would be the environment or the votes -- maybe he was talking about the United States Senate -- to make that happen.

So, short of that, are we looking at tighter background checks? Are we looking at more of these red flag, beefing up the laws around them to alert people to those who are deemed dangerous and to keep an eye on them?

Is that where it will end up being, you think?

WHALEY: Look, I think the people of Dayton would be just pleased if, in this great tragedy, something moves.

And the red flag law that Lindsey Graham and Blumenthal are moving in the Senate is some place that we would be happy to see some movement on. There could be even an opportunity for them to introduce a pilot in Texas and Ohio, where cities could do -- go right to federal court on red flag laws.

I mentioned this to the president's chief of staff while we were visiting victims today. That's the kind of action that we're looking for, not some stuff that's on some video games that has no proof that, like, aligns to gun violence.

CAVUTO: All right.

But did the president signal to you, Mayor, that he thinks that, on the issues you talk about, there could be progress, that there's enough of a good will -- you mentioned what your governor is doing, the Republican governor, at that -- that there might this time be progress on that front?

WHALEY: He said he was going to look at it. He didn't give me any sense of like, Mayor, we're going to move.

CAVUTO: Right.

WHALEY: But I intimated to the president that, like, I know he's a man of action.

And so I'm hoping that he will show us this on gun -- on the gun control issue.

CAVUTO: Now, I know you were meeting with him with your senator, Sherrod Brown.

There's been some friction between some prominent Democrats and the president on this issue. The protests obviously were very real in Dayton. They're very real in El Paso.

WHALEY: Yes. Yes.

CAVUTO: Many argue he shouldn't even be there, he shouldn't have gone to Dayton, and he shouldn't be in El Paso.

Are you glad that he came?

WHALEY: I think, for the victims and for our first responders, they were happy to see him. And that was -- they have been through an awful lot.

But, Neil, I'm not going to lie. It's hard on the community. I mean, the minute that he announced he was coming, we just saw this hyperpartisanship that we didn't see before the announcement.

And I think that's what's so hard for us, when we know we're a fragile community. We have just been through a lot of pain. That tension was real. We saw it on the streets of the Oregon District earlier today.

And we didn't see any of that until the president's announcement. And that's just really what's sad about some of the rhetoric overall. I mean, it's just so extreme and so intense.

And, in Ohio, with both Congressman Turner and Governor DeWine, we're starting to see real people come -- real -- both sides coming together to find win-win solutions around this gun violence issue.

I just wish that, nationally, they could do that, too.

CAVUTO: Do you think that extremism works both ways, Mayor, that everyone, maybe if they just step back, calm down, that stuff could get done?

WHALEY: Yes, I really think everyone needs to breathe. I do think it's on both sides.

But I know that the president exasperates it. So we were fine until he announced he was coming. And, I mean, Neil, I saw it on both sides. It's painful, because we really want to bring the community together.

CAVUTO: But, personally, he was good with you, there was no friction with you, or you with him?

WHALEY: We had a pleasant conversation.

But it was -- Senator Brown and I did push him to do something, particularly around the assault weapon ban.

And he kind of said: "Well, you know, Obama couldn't get this done."

And I said: "Well, you know, Mr. President, maybe you can get something done that President Obama couldn't get done. I bet that's something you could do. You could find the votes."

CAVUTO: That's a challenge he would probably respond to, the way you framed that.

Mayor, thank you very, very much.


CAVUTO: Very good seeing you.

WHALEY: I don't know. I have never met him before.

So, great to talk to you, Neil.

CAVUTO: Same here, Mayor Nan Whaley of Dayton, Ohio.

We will have more after this.

The president now is in El Paso. He is virtually everybody here. And they want to get to make sure that he sees victims' families and those injured as well, just like he did in Dayton.

We will have more after this.


CAVUTO: All right, this is how scared they got in New York City, Times Square last night.

It actually ended up being a motorcycle backfiring. But it sounded just like a gun going off multiple times. People were freaking out, justifiably. These are the times in which we live.

Psychotherapist Dr. Karen Ruskin here to help us all out.

You know, Doctor, you think about that, I can well understand people panicking. It's a crowded place. They just run for their lives when they hear something that sounds like a gun. And that certainly sounded like a gun.

How do you advise folks through these times right now?


So their behavior makes sense in the context in which it's in. It's not unlike post-traumatic stress disorder, where our country, our culture has become an anxiety-ridden epidemic. We have anxiety reactive response, even when something happens that is not anxiety-producing.

And my main message is about riding the wave. It's that we cannot control the wave, we can only control our reaction to the wave. We have lost faith in humanity, in people. And by reestablishing faith, that will help us to remain in a state of calm when we are an environment where there is a trigger and recognizing what your triggers are.

Those are the keys.

CAVUTO: But how do you advise people when they're in a crowded situation? We have had former FBI agents, terrorism experts who, to a man or woman, when they have been on this show, they have said, well, first of all, you don't stay around the area, you flee, you try to get out of there as rapidly as you can.

Hence what you just saw unfold in New York's Times Square. And parents telling their kids much the same. Here's what you got to do if, God forbid, something like this happens at your school, or happens in a Walmart.

Perhaps it is, to your point, Doctor, a sad commentary on our times, but I'm more interested how we keep average folks, particularly kids, calm.


RUSKIN: Right, right.

So, when it comes to human behavior, there are several key ways in which we react to scary scenarios. So, some people freeze. That is their instinct reaction. For other people, they run. It's like a fight or flight. And for other people, they stay there and they're looking for people to help. And for others, it's disbelief and denial.

So we have these core ways that we instinctively react. If we want to create and produce a particular way to react, which goes to your question, in essence, remaining in a state of presence, awareness of what's happening around you, calm, and do what you need to do to stay safe, that can be produced literally by deciding.

The human brain is so powerful. It may sound hokey. It's true, though. The human brain is powerful. And if we consciously decide that how we want to live our life in response to everyday stressors and other stressors that may come around us with a state of focus and calm, that is the difference that makes the difference.

CAVUTO: I hope you're right, Doctor.

Thank you very, very much, Dr. Karen Ruskin, psychotherapist, joining us out of Phoenix.

A quick look back at El Paso. The president is there right now. He's he's trying to meet with those who are directly affected by the attacks, including those injured in them.

The latest on that -- after this.


CAVUTO: The president meeting with first responders and victims in El Paso, Texas, as he urges against any form of hate. But some say he's unwelcome there, as he was unwelcome, they say, in, well, Dayton.

Is that fair? Is that right? Is that even remotely balanced?

Fox News contributor Deroy Murdock on that.

You don't think it is, right? You think he's getting an unfair rap.

DEROY MURDOCK, CONTRIBUTOR: Yes, yet again, he's getting on for rap from the left. That's about the only gear they have is to beat up on the president.

Look, these people said, look, we want him to unify the country, calm us down, bring us together. So, he says, OK, I'm going to go to El Paso and Dayton and meet with the victims, thank the first responders.

How dare? You're not welcome here. Don't come to El Paso. Don't come to Dayton.

So which is it? Do they want him to come and unify the country or they want him to stay away? They can't seem to decide which of the two they want him to do.

CAVUTO: Do you think that the protests here have a double standard, though?

Because other presidents, no matter their party, sadly, crises are part of the job. Being the consoler in chief is part of the job. But he gets extra scrutiny on this one. Do you think his own words or the way he presents racial issues -- even Nancy Pelosi, a big critic, says she doesn't think he's a racist, but he uses racial words.

What do you think?

MURDOCK: I mean, look, I think he could tone down his language, for sure.

But he's been saying -- he's been speaking out against racism and hatred since the beginning of his presidency. He had conciliatory words in the inaugural address. His very first address to a joint session of Congress, he said, while we may be a nation divided on policies, we're a country that stands united in condemning hate and evil in all its forms.

That was February 2017, first time he talked to Congress. He says this all the time, but a lot of media, other than us, don't report this. They cover it up.

You may remember when the gunman went and shot up that synagogue in Poway, California, near San Diego.

CAVUTO: Right. Right.

MURDOCK: A few days later, the rabbi of that synagogue was there, he thanked the president for his words of conciliation, for healing him over the phone, et cetera, very moving and very touching.

You know how much time ABC, CBS, NBC evening news broadcasts spent on that? Zero. Nothing. None. It is not helpful when people are looking at the president to calm us down, and the big three networks decide not to cover that.

All that does is keep us tense, keep us divided, and say to people who are racists and anti-Semites, whatever, it's OK, keep doing it because nobody cares.

I think the big media are in a league with these haters by not announcing or not sharing the words of the president who denounced them for their hatred.

Shame on them.

CAVUTO: So, when you hear from African-Americans that they don't think that he really cares, he comes back and says, all right, well, I'm providing record low unemployment for all types of minorities, African- Americans, including Hispanics, record levels. That must prove my actions speak louder sometimes than my clumsy words.

You say?

MURDOCK: I think that's true.

I think he certainly needs to -- if I were the president of the United States, I would be talking in black churches every Sunday. I would be visiting black businesses.


CAVUTO: Why doesn't he?

MURDOCK: I don't know why he doesn't. He really should.

I think it'd be very good for him. It's very hard to call a man a racist if he's shaking black hands and kissing black babies.

One of the very first things he did was bring in the presidents of historic -- presidents of historically black colleges and universities, about three dozen of them, into the White -- into the Oval Office, said that he would open up an office in the White House to help them out and so on.

And they have been very appreciative of that. That didn't get a lot of coverage. That's one of the very best things he's done. He did that in about the first six weeks of his presidency.

CAVUTO: It's a good point. I forgot that.

MURDOCK: And a lot more since.

CAVUTO: All right, Deroy Murdock, thank you very, very much.

MURDOCK: Good to see you.

CAVUTO: I apologize, all the breaking news.

MURDOCK: It's quite all right.

We're still monitoring the president's trip there.

But, again, the tensions, to Deroy's point, on both sides are over the top right now. And if we want to do any good, maybe we talk less, listen more.

Here comes "The Five."

Content and Programming Copyright 2019 Fox News Network, LLC. ALL RIGHTS RESERVED. Copyright 2019 ASC Services II Media, LLC. All materials herein are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of ASC Services II Media, LLC. You may not alter or remove any trademark, copyright or other notice from copies of the content.