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This is a rush transcript of "Your World with Neil Cavuto" on December 15, 2021. This copy may not be in its final form and may be updated.

NEIL CAVUTO, FOX NEWS ANCHOR: Martha, thank you very much.

President Biden is set to speak any moment now, after touring the devastation left behind from those tornadoes in Mayfield, Kentucky, now visiting Dawson Springs, Kentucky.

When the president speaks -- and he is with the Kentucky governor, Andy Beshear, who will be introducing him -- we will take you to that on a day we have learned right now that there are 71 known dead in Kentucky alone, but some good news on the unaccounted-for front now at around 59, as power revs up again, cell service resumes, and we're able to identify a lot of folks who hadn't communicated or weren't able to that they're OK.

Welcome, everybody. I'm Neil Cavuto. And this is YOUR WORLD.

Before we go to Kentucky, do want to alert you to another development today. It was that the corner of Wall and Broad, where stocks were racing, even on the notion that interest rates are going up, maybe not just a little bit either, the Federal Reserve indicating that it's going to be seeing inflation for what it is, a problem, and addressing it by aggressively moving to tighten money.

We will get into the implications of that. It might surprise you stocks were up on the notion that finally we might have some closure on a way to address inflation.

We shall see.

Now back to Kentucky and FOX Weather's Robert Ray on what's happening as we speak -- Robert.

ROBERT RAY, FOX WEATHER MULTIMEDIA JOURNALIST: Neil, good afternoon. It is breezy and cloudy here in Mayfield.

President Biden left here about 45 minutes ago, and headed towards Dawson Springs, about 60, 70 miles away from here. He toured Mayfield, walk to the ground, toured it from the air as well. He spoke to one woman on the side of the road who was sitting on a pile of bricks just like -- behind me, and discussed with her what she has gone through.

He saw the damage from the air, tremendous amount of damage here, as day four after this tornado, and the activity of people picking up still and trying to figure out exactly what came through here, whether it was an EF-4 or EF-5, National Weather Service looking at that.

Biden did give some remarks. Let's listen to what he had to say.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES: There's a lot of -- who are going to need help. And a lot of the businesspeople are going to be wondering what's going on.

There may be things available that will be helpful six weeks and six months from now that you're unaware of. And so, we're -- I've instructed my team to make you all aware of everything that is available from a federal level.

(END VIDEO CLIP)

RAY: Now, President Biden and his team also put out an amendment to their Kentucky disaster relief, saying that they would give more funds for the pickup here.

And so we are -- as we await to President Biden to speak in Dawson Springs, this region is reeling, and people trying to pick up the pieces as the loss of life continues.

CAVUTO: Robert, thank you very much for that, my friend, Robert Ray following all of that.

Now, Kentucky Governor Andy Beshear, he has been touring the area with the president of the United States today. Let's take you there.

OK, maybe not.

This is Marcus Coleman, right, guys? All right, I apologize.

Now, the governor introducing the president of the United States.

(JOINED IN PROGRESS)

GOV. ANDY BESHEAR (D-KY): As a people we're not alone.

The generosity and outpouring of love, pure, unconditional love, from around this country and around this world has been overwhelming. Millions of dollars, and more, water, diapers, sweatshirts, household goods than we could ever count have poured in.

As a state, we're also not alone. President Biden and the federal government have offered more aid and acted faster than we have ever seen in the history of the United States of America.

I received three personal calls from the president on day one, first, when he could get through and then at the end of the day, saying, what else do you need?

We got an immediate disaster declaration, which doesn't happen, and just, I think on the same day, not even a full day later, a major disaster declaration.

And you know what? Starting yesterday, there were people here in FEMA shirts walking house to house to start processing people's claims to get them back on their feet.

We have gone from looking for our dead to starting to haul away the death and destruction around us. And the steps to start rebuilding have already begun. I cannot thank the president enough.

And I know our federal delegation feels the same way. They have been hugely supportive.

Thank you, Congressman Comer, for being strong for this community and for pushing for everything we need in Washington, D.C. You have been a wonderful partner.

I hope the people of Kentucky know that I care deeply about them. And the president does too. He's here in Dawson Springs, Kentucky, because we're hurting.

And I'm so thankful for the full, unwavering support of our federal delegation. I'm so thankful for the president that has said ask to every ask we made.

And now he's going to have some news about another ask that I made, one that I thought there was no way that we could get a yes to. But it's going to mean the federal government isn't just here, isn't just doing things we have never seen before, but is fully behind every single family that has suffered any loss.

On behalf of Britainy and I, to the people of Kentucky, we love you.

And I never thought my life I'd be able to introduce a president. And I wish they were different circumstances, but I'm still very honored to be able to do introduce a president in my dad's hometown, President Joe Biden.

(APPLAUSE)

BIDEN: Gov, thank you.

I want to introduce you to a new friend of mine. This is Dane. Dane lived down the street. And Dane and all his -- he has cousins who are all together. And one cousin, I don't know where she is. There she is. Come on up here, honey. Can you see -- come here.

She is about to graduate from UK on Friday -- on Friday. and I just want you to meet them.

I -- I'm sorry to keep you all waiting, but I got a chance to hang out with the whole extended family down there. And I want you to meet a soon-to-be- graduate who wants to go on to graduate school. Come on up here, honey.

(APPLAUSE)

BIDEN: What's your first name?

UNIDENTIFIED FEMALE: Abby.

(APPLAUSE)

BIDEN: Abby is here, and we're going to figure something special for her graduation day. But imagine that: This Friday, she graduates from UK.

I kid and say, The best thing that ever came out of Kentucky was my sister- in-law. And she is -- she's all blue. She went to UK, then she went on to Duke Law School. And she married my brother. We're all thankful to everybody for her marrying my brother.

And at any rate -- so, you got to remember me when you're President. Right?

UNIDENTIFIED FEMALE: Yeah.

BIDEN: OK. Thank you. I just wanted you to meet the folks I was just hanging with.

Thank you, honey.

UNIDENTIFIED FEMALE: Thank you.

BIDEN: Andy -- thank you, Gov, for the introduction. I -- your forbearance is commendable. I -- this has to be an emotional moment for you and the family, for the congressmen -- for all of you congressmen. Thanks for the passport into your district. Appreciate it.

And the -- I want to also thank everyone here that took the time to be here. And one of the things -- back in the 1900s, Dawson Springs was a place where people came to be healed because of the mineral waters. Literally, it was a place you came to heal. Now it's our turn to help the entire town to heal.

You know, I granted the request for the first emergency declaration and the major disaster declaration the moment I received it, because I got to know the Governor's father, and I knew nothing would come if it wasn't real. I mean it. For real.

And yesterday I also approved an emergency declaration for the state of Illinois and Tennessee. And I intend to do whatever it takes, as long as it takes -- as long as it takes -- to support your state, your local leaders, and -- as you recover and rebuild, because you will recover and you will rebuild.

You know, the scope and scale of this destruction is almost beyond belief. When you look around here, it's just almost beyond belief. These tornadoes devoured everything in their path. And as I flew over here in the helicopter, you can look down and you see a house 20 yards away from a house that's devastated, and the house is in good shape.

I mean, it's just -- tornadoes are such devastating storms.

Back where I'm from, we're used to hurricanes and floods and high water, but these tornadoes are just something totally different. And they're not - - you devoured -- it devoured everything in the path: your homes, your businesses, your houses of worship, your dreams, their lives.

And the Governor confirmed there were, I think you said, 74 fatalities so far, Gov, in Kentucky and making these among the deadliest tornadoes to ever strike this state.

Almost 14 people are confirmed dead in other states, with dozens of people still -- still fearful of where they -- where they are.

I met one of them. I don't have permission to use their name, but I met one couple on the way up, said they're still looking for four of their friends. They don't know where they are.

And those who have lost someone -- there's no words for the pain of losing someone. A lot of us know it. A lot of us understand it, especially around the holidays, when everything is supposed to be happy and joyful.

It was a long time ago I got a phone call around the holidays and found out that my -- I was in Washington as a young senator -- not sworn in yet -- about to be hiring staff. And I got a call saying, from a first responder, that there had been an accident. A tractor trailer broadsided my wife with a Christmas tree on top and my three kids inside. My wife and daughter were dead.

But my mother, God love her, used to always say, Out of everything terrible, something good will happen. Something good has to happen out of this. It just can't be all bad. We've got to make it better.

And so, folks, those who have lost someone know -- know how tough it is. And you know how tough it is.

You know, in Mayfield, just hours before the storm -- and we just came from Mayfield -- the Gibson Pharmacy had been full of families with children waiting to meet Santa. Now it's completely gone.

And so many businesses that are vital to the community have been so damaged and destroyed in your town as well.

There's a saying in small towns: People know about it when you're born, and they care about it when you die. They know about it when you're born, and they care about it when you die.

Well, in so many places, destruction was met with compassion, neighbors and first responders racing to help and save each other's lives and support.

I mean, I asked -- I'm not joking -- I asked, when I got to Mayfield, what the first thing my first -- my first responders -- FEMA and the -- and where -- what they heard. And they said they were amazed. All they heard was about people just going out, helping one another -- everybody. Everybody just stepping up. It's incredible. It's incredible how you all step up.

And so, folks the fact is: I'm going to make sure the federal government steps up and make sure we do every single thing.

For years and years, as U.S. senator and then as Vice President, we -- I come from Delaware, and we have a lot of serious storms -- hurricanes, oceans rising, a whole range of things.

But you know what? It always took a long time. There's no reason why it should take any time. We have the wherewithal to get it done. And we're going to get every single thing you need. And I'm going to make sure the federal government does what's needed.

At the state's request, four FEMA search and rescue teams are working here in Kentucky right now. For those without power, FEMA has already provided 61 generators. The Army Corps of Engineers has temporary power install teams to -- ready to assist if needed.

And we've provided critical supplies thus far and a lot more to come -- 144,000 liters of drinking water, 24,000 [sic] meals. You know, I just -- 74,000. And, look -- thousands of cots and blankets. There are seven -- seven shelters open in Kentucky, which are now taking care of 300 occupants. But a lot more is going to occur.

Of course, housing is a key. Because of COVID, we want to make sure people are out of those shelters as quickly as they can, because of COVID. And, ultimately, we want to start to provide some certainty for people.

I've been involved in responding to a lot of disasters, and you can see it in people's faces: What they're really looking for -- And look around, I say to the press -- what they're looking for is just to be able to put their head down on a pillow, be able to close their eyes, take a deep breath, go to sleep, and make sure their kids are OK. That's what people are looking for right now.

But a lot of hard work is going to happen in the next two and three months to bring it all the way back.

And so, folks, the Governor -- I want to -- Gov, I want to provide you the certainty as well. I just approved the request that I wasn't sure I had the authority to do, but turns out I do.

The government is going to cover 100 percent of the costs -- 100 hundred percent of the costs -- for the first 30 days for all the emergency work, from clearing everything to -- every single cost the federal government is going to take care of. And it includes debris removal, cost of overtime of law enforcement, emergency service personnel, and shelter. And that'll get you through.

And by the way, I want to thank your wife. She started a toy drive for this part of the state to make sure -- how many...

Come here. I'm taking credit for something I have nothing to do with.

BRITAINY BESHEAR, FIRST LADY OF KENTUCKY: How could you?

BIDEN: But tell them you got so far.

B. BESHEAR: Well, as of this morning, we think that we have around 20,000 gifts donated. And we've got three more days to go.

BIDEN: Twenty thousand gifts so no kid is going to sleep -- wherever they get to sleep tonight -- without a gift.

(APPLAUSE)

BIDEN: God love you.

And look, we also need to recognize that people have suffered mental and emotional injuries. The cost of this sometimes are unseen and unknown.

You know, people talk about post-traumatic stress in the battlefield as I traveled through Afghanistan and Iraq. Well, guess what? There's a lot of post-traumatic stress that comes from lying in your house and all of a sudden the roof goes blowing off and you wonder whether your kids are around. I really mean it. So, you know -- or the shock of losing a home and a business, the grief of losing someone.

It's happening right before the holidays, as I said, and we're going to make sure that you have all the help you need, including the kind of mental help that is needed to help people through difficult times.

And, folks FEMA has opened Mobile Disaster Recovery Centers in Mayfield and in Dawson Springs. And it has disaster survivor systems teams on the ground here in Kentucky to help people register for assistance.

As I said when I talked to the governor, not only that we're going to get what you need, we're going to make sure you know everything's available, because you don't always know all that is available -- all that is available. And that's what we're going to do.

And, folks if you live in the affected areas, which all of you are standing here watching me do, you know you visit DisasterAssistance.gov -- DisasterAssistance.gov or call 1-800-621-FEMA. That's 1-800-621-3362.

I promise you: You're going to heal. We're going to recover. You're going to rebuild. You're going to be stronger than you were before. We're going to build back better than it was.

And when I come back, I got one beautiful lady and her husband who promised me a meal. She's apparently a hell of a cook, so I'm coming back for the meal.

So, thank you, thank you, thank you for being here.

And to all of the families here: Keep the faith. We're going to get this done. I promise you, the governor is not walking away. Your county judge is not walking away. Your congressman is not walking away. No one is walking away. We're in this for the long haul.

Thank you very much for your patience.

(APPLAUSE)

QUESTION: Mr. President, did you say you're going to cover the costs for 30 days?

QUESTION: Does FEMA need more money for Congress in order to fund this response?

BIDEN: Not now. We don't need it yet. We don't need it now.

You know, there has been, because of weather disasters just this year, over $99 billion in losses -- $99 billion in losses.

And as I flew over -- I was telling folks here -- as I was out with the governor of California and Idaho and other states, as you fly over those territories for the better part of an hour, looking down, every single solitary thing is leveled because of the fires. Nothing there -- the forest, the homes, the businesses.

And guess what? So much area has burned this year because of weather and climate changes that is larger than the entire state of New Jersey -- the entire state of New Jersey. That's how much land has been burned to the ground.

So, we got a lot to do. We got a lot to do, but the American people are ready to do it. This is the United States of America, there's not a darn thing we can't do.

Thank you.

CAVUTO: All right, you have been watching the president of the United States with the governor of Kentucky, Andy Beshear, his wife as well, who has championed a toy drive that yielded already better than 20,000 toys for kids in the area.

We have seen some changing numbers and improving numbers from some of the original statistics we got out of the area, 71 confirmed dead. There had been reports of 74. Apparently, there were duplicated lists, the same on the number of unaccounted for.

You might have recalled, early this morning, they were still having no idea that better than 100 people who simply were missing or unable to be tracked down. Now, as power returns to some, not all areas, but some areas, they have had a better chance for those people to let the world know, hey, we're OK, everything's OK, now 59 unaccounted for.

So, again, very early on in this process, and the process the president plans to provide ample federal aid that will, at least for the first 30 days, be entirely paid for by the federal government.

Marcus Coleman is part of that effort. Marcus is the Federal Emergency Management Agency -- the director of the DHS Center for Faith-Based and Neighborhood Partnerships.

Marcus, thank you for all you're doing.

How are things looking there?

MARCUS COLEMAN, DIRECTOR, DHS CENTER FOR FAITH-BASED AND NEIGHBORHOOD PARTNERSHIPS: Thank you very much, Neil.

So, I have been on the phone with faith-based community-based partners since Saturday. In fact, as we speak, there's a call happening right now with more than 100 faith- and community-based partner, from Operation BBQ, which we have seen a little bit about earlier, Samaritan's Purse, the American Red Cross, all trying to coordinate and collaborate with each other to help support the needs of disaster survivors.

I have been able to sit with a pastor whose parishioners have lost loved ones and their church is destroyed. And I'm just -- I'm grateful that, despite that pain, that those faith and community leaders continue to provide hope and healing to disaster survivors.

And we at FEMA, alongside the state of Kentucky, will continue to stand with our faith- and community- based partners as they continue to lead the way for recovery and we continue to support all disaster survivors that have been impacted. Markets,

CAVUTO: Marcus, maybe you can help us out wondering -- because a lot of folks want to help you out -- what do folks need? What do you recommend?

COLEMAN: So, cash is best.

One of the things that I'd recommend -- and I think that you have a lot of people around this time of year who may be already donating to a nonprofit organization of choice that provides humanitarian relief, Operation BBQ, as I mentioned, Samaritan's Purse, Team Rubicon. I know that you all are promoting Red Cross as well to help donate.

Those are sources of -- trusted partners that are collecting donations. If you're looking for a list of organizations that are active on the ground in Kentucky, NVOAD, that's the National Voluntary Organizations Active in Disasters, more than 70 national partners all coordinating together to help provide support for this disaster and other impacted areas across the country.

CAVUTO: As you have pointed out, Marcus, it's not all something tangible.

For a lot of people who are just shell-shocked, their homes gone, their loved ones in many cases gone, what do you say?

COLEMAN: So it's a hard process.

One of the areas that we're coming alongside to support is, as has mentioned, this is a large emotional and spiritual care mission. And to your point about being shell-shocked, we want to make sure that folks that are under distress know that they have a resource available to them as well.

So, what I will say is, I encourage everybody to dial 1-800-985-5990. That's Disaster Distress mental health line. That's available 24 hours a day, another service that's provided to anyone who needs it. And we understand that the recovery process is going to be long for many people.

After they have that call or they get that emotional, spiritual care. We want people to dial 1-800-621-3362 to start their disaster recovery process. And so we know that it's a hard process. As President Biden mentioned, we have people on the ground. We're going to do the best that we can to give directly to the neighborhoods, directly to the people that are impacted, and make sure that they have people that can help them walk through a process in a very difficult time of year.

CAVUTO: Marcus, thank you for all you're doing.

Marcus Coleman, the Federal Emergency Management Agency, director of DHS Center for Faith-Based and Neighborhood Partnerships, certainly trying to help out there.

All of this at a time when we're getting word of still more tornadoes, not specifically for Kentucky, but not too far for that neck of the woods.

FOX Weather's Marissa Torres with the very latest on that front.

What's going on here, Marissa?

MARISSA TORRES, FOX WEATHER CORRESPONDENT: In the light of everything that just happened last week, so this is the worst thing that we're seeing really unfold throughout Nebraska, where we actually have confirmation of tornadoes on the ground in part of Nebraska at this point, all part of a very destructive system.

You can see that area of low pressure swing through this line of thunderstorms, at this point cutting through Nebraska. We have several severe thunderstorm warnings, as well as tornado warnings and, again, confirmation of tornadoes on the ground in Nebraska.

And we're watching these tornado watches spread out from Nebraska through Iowa, even part of Minnesota. These will likely be upgraded in through tornado warnings as we continue to progress in through the evening hours.

These storms are moving very fast, anywhere from 70 to 80 miles per hour. So that's the pace of a racing car on the highway. So this is a dangerous situation, a destructive situation, the severe storm threat really highlighting much of Iowa.

We see that line coming through Nebraska. And it is taking aim at parts of Minnesota, even parts of Wisconsin, areas that still have snow on the ground and are seeing some record warmth in spots.

The damaging wind threat. So, ahead of this storm, we're also seeing areas see winds in excess of 60 to 70 miles per hour. So you're seeing the winds ahead of the front. You're seeing the strong winds in the front. We could have some damaging straight-line winds coming out of this.

The damaging threat here, where you could see 80-to-100 mile-per-hour gust, we're talking about the potential for hurricane-force winds on the ground in these same areas. It is very likely, especially where you see those hash marks there.

And these wind alerts, now, here's the a typical thing. You're seeing a dynamic system, where you have storms on the front end, we have squall warnings, snow squall warnings behind it at this point. And even once it passes, we're talking about some high wind warnings for a good portion of the country from New Mexico all the way through the Upper Great Lakes.

And that would be Wednesday through Thursday. And keep in mind this is in the wake of this front passing through. So we're watching it here at FOX Weather. We're tracking these tornadoes and these tornado warnings and watches. And we will be watching them throughout the evening -- Neil.

CAVUTO: Marissa, just a general question.

It is December. We know that this tornado activity is the worst on record for December, and obviously complicated by the cold weather after they hit. What's going on?

TORRES: It's a great question, right?

So it's just what we saw last week. So, ahead of this cold front coming through -- and I will see if I can reverse it for you -- you have warm, you have humid air coming up from the Gulf of Mexico. That's why we're seeing some record warmth in spots.

Behind this system, you have very cold, very dry air. These are two conflicting air masses. So when that cold air comes rushing in, it is scooping up and pushing up all of that warm air. It is very dynamic, in the sense that it is activating some very strong and dangerous storms. It's, again, very similar to the setup that we saw last week, and not something you typically see this far into December and a week away from the official start of winter.

CAVUTO: Marissa, thank you so much for that.

We will be keeping an eye on all of this.

Also keeping an eye on a party that ended officially today, the Federal Reserve announcing it's taking the punchbowl away. We have been getting spoiled by interest rates that have been ridiculously very low for a ridiculously long amount of time, the Federal Reserve indicating today that stops, the interest rate hikes will soon start, and things will quickly change.

But the markets liked what they heard. We will tell you why -- after this.

(COMMERCIAL BREAK)

CAVUTO: Build Back Better? From Joe Manchin, maybe not so fast. Growing indications that he's in no rush to get it done before Christmas, and maybe in no rush to get it done at all.

We're on that -- after this.

(COMMERCIAL BREAK)

CAVUTO: On your mark, get set hike.

The Federal Reserve is now putting an end to the days of easy money, or at least promising to. And that will likely mean higher interest rates, maybe a lot higher when all is said and done. But in case you think that this was rattling stocks, it didn't. Why is that?

Let's go to Susan Li -- Susan.

SUSAN LI, FOX NEWS CORRESPONDENT: Yes, hey, Neil.

So, in probably one of the most anticipated Federal Reserve decision since the pandemic started, confirming today that inflation and higher prices are pushing the Central Bank to cut back on stimulus and raise interest rates earlier than they just indicated six weeks ago.

Now, as expected, the Fed will be cutting their monthly bond purchases by $30 billion a month. And this is part of that emergency stimulus plan to get the economy going once again during COVID. So, the Fed will also likely raise interest rates three times next year. And that's to deal with higher- than-expected consumer prices.

But they did reiterate that they do expect inflation to come down significantly next year with easing, they believe, and they say, in the supply chain prices. You also heard from the Fed chair, Jay Powell, who has now dropped the term transitory from his language and says that he's focused on fighting skyrocketing prices.

(BEGIN VIDEO CLIP)

JEROME POWELL, FEDERAL RESERVE CHAIRMAN: We understand that high inflation imposes significant hardship, especially on those least able to meet the higher costs of essentials, like food, housing, and transportation.

We are committed to our price stability goal. We will use our tools both to support the economy and a strong labor market and to prevent higher inflation from becoming entrenched.

(END VIDEO CLIP)

LI: Powell also pushed back on criticism that the Federal Reserve is behind the curve when it comes to tackling inflation, with November's producer and consumer prices hitting record and multidecade highs.

You saw Wall Street relieved. You had that stock market rally in the last hour. And investors like certainty, as you know, Neil. And this was pretty much what they had expected from the Central Bank, and maybe even less aggressive than they had forecast.

CAVUTO: Susan Li, thank you very much.

And you're right. The evidence today, they like at least the certainty of knowing what they were uncertain about a little more than 24 hours ago.

To Charlie Gasparino on that aspect of this.

A weird day. What do you think, Charlie?

CHARLIE GASPARINO, FOX NEWS SENIOR CORRESPONDENT: It's very strange.

Listen, I think the word out from Powell was, maybe we're going to raise rates more. If you heard it, there was a lot of maybes in his language.

And I think what the Street took from this, at least my read and the read of traders I have been talking to since this afternoon, is that he's a little weaker than they thought he'd be, that they think there's a lot of wiggle room in his language, that, if COVID keeps spiking up, that he may back off the rates. And we do have a -- we do have a significant spike in COVID right now with the new variant.

So you put all that together, and there was a relief rally. And you could see it not just in the overall stocks. I saw it in crypto, which is generally an inflation hedge. It went up today, right? Crypto prices went up. So did the meme stocks. So there was a clear sort of everybody's thinking that these rate increases, it may not be that big of a deal, right?

And here's the sort of irony here, Neil, and the sort of -- or maybe contradiction of sorts, is that I don't think that just because you have a spike in COVID and maybe more shutdowns or businesses not doing as much business, and then, because of that, not bringing their workers back to the office, I still think we're going to get inflation.

And I think some of this inflation is just the nature of what's going on right now with the supply chain. The supply chain is -- has problems because there's so much welfare benefits that are being pumped through the system, and even would Build Back Better -- or it looks like that's not going to happen.

But, even without that, you still have all this incentive for people not to go to work. And that is really disrupting the supply chain. And that is going to cause true -- that's going to continue to cause inflation. And the real problem that Powell has is that he's been -- I think, going forward -- and because you got to watch the inflation numbers now -- is that he's been unreliable on this.

He's been horrible. He missed the boat so many times.

CAVUTO: Well, we will see what happens now.

GASPARINO: Are we supposed to believe only three rates -- hikes are good enough? I wouldn't.

CAVUTO: All right, we shall see.

Charlie Gasparino, thank you very much.

Charlie referring, of course, to the fact that the Federal Reserve has been tapering.That is sort of addressing all the Treasury notes and bonds it's been buying, about $120 billion, $130 billion at our peak every single month. The Federal Reserve hopes to bring that down by another $30 billion in the months to come, so that, by March, April, at the latest, it's done, it's done buying all that stuff.

It stops buying, the notion is that interest rates start rising. We shall see.

Stay with us.

(COMMERCIAL BREAK)

CAVUTO: All right, for the second time in as many weeks, a top public official has claimed that all these smash-and-grabs going on in stores, well, retailers could be doing a lot more in the stores where it's happening.

Kelly O'Grady in Los Angeles with more on that -- Kelly.

KELLY O'GRADY, FOX BUSINESS CORRESPONDENT: Hey, Neil.

Well, I'm at the grove where that Nordstrom was hit just before Thanksgiving. And to keep these out, they're actually installing barbed wired-like fences every night. It's not really the holiday decor you would have pictured at the mall.

And this is all really turning into a blame game, as you said, between officials and retailers. Now, yesterday, California's Attorney General Rob Bonta convened businesses to discuss response strategies. And online marketplaces were a big focus.

Crime rings often resell their stolen goods online. And that's led to finger-pointing at many tech companies that provide such a platform. In a statement of FOX Business, though, an eBay spokesperson said the company supports Bonta's tactics, though asserted it has -- quote -- "zero tolerance for criminal activity on our platform. We have programs and policies in place to monitor our marketplace for stolen items."

The shortage of police resources, as well as lax bail and sentencing policies in California are also being blamed. So I decided to ask L.A. residents what they thought we should be doing about crime.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: There needs to be stricter penalties and fines if people get caught.

UNIDENTIFIED MALE: Well, I think just more security. It's scary, especially for business owners and small business owners.

UNIDENTIFIED FEMALE: I'm not going to lie. I carry a Taser on myself now, just because, as a woman, I have to keep myself safe, because, I mean, if we're not going to have police patrolling the area and a mall such as this place like this, then I have to do what I have to do to keep myself safe.

(END VIDEO CLIP)

O'GRADY: Well, there you have it. Angelenos actually want more police officers in some cases.

I had a conversation with the California Retailers Association president, and she said accountability is the key. When these criminals know they're just going to be let back out on the street without consequences, they're just going to keep doing it -- Neil.

CAVUTO: Yes, and they have, repeatedly.

Kelly, thank you very much, Kelly O'Grady following all of this.

Even one of the nation's more premier fashion designers has essentially given up.

Elle B. Mambetov joins us right now, the owner of Elle B. Zhou, of course, a major, major draw for Los Angeles, who love the stuff that she had. But now, of course, she gave up dealing with all the crime.

Elle, good to have you.

Explain what happened.

ELLE B. MAMBETOV, FASHION DESIGNER: Hi.

So it was really great to open in the Beverly Center. We had really great neighbors with Tiffany's and Fendi and Burberry. However, those are labels that do draw a lot of grab-and-runs, unfortunately.

And we were sitting ducks and in the Beverly Center, unfortunately. There wasn't the level of security to really look out for us as retailers, even from how we would access our stores. It was accessible to everyone. The doors automatically open, and anyone can walk through that hallway, check to see if your store is open and steal from your store.

So, not only were there grab-or-runs. When we do report things to security, there is -- we're told essentially there's nothing that they can do. And we are just really left open and exposed. And, unfortunately, with the level of products that I had in the store and the price points, I just wasn't able to leave myself as a sitting duck in such a location.

CAVUTO: It's very sad, obviously, because you had some great stuff. People swore by it. And then, when they heard that you were closing, they swore at what happened to you.

And I'm just wondering, it kept happening a lot of times in broad daylight.

MAMBETOV: Yes.

CAVUTO: When did this all accelerate?

MAMBETOV: You know, it's interesting, because, in California, there was the EDD.

And once EDD kind of stopped that payment, it seemed like there was just a level of desperation that arose IN people across the board. And, unfortunately, there's not really a profile, because it's not just the grab-and-runs on and smash-and-grabs.

We also recently had a celebrity stylist of Brandy Norwood try to borrow a rating and disappear with the ring. So there's just all kinds of different levels of theft happening right now that are unimaginable, really.

CAVUTO: What was security doing or what were local police doing?

I mean, when you ask or wanted help, what was going on?

MAMBETOV: You know, in instances with the security at the Beverly Center, when you report something, they say, we will watch out for them, but there's nothing that we can do.

They will say, sorry, that person said they don't have anything. There's nothing that we can do. So a lot of stores were just watching people walk off with their merchandise, which is very frustrating.

CAVUTO: Incredible.

MAMBETOV: And if the measures aren't put in place by the actual center to even help us prevent such measures, we're really at a loss.

And even when we had to report the celebrity stylist to the police, we had to talk to three, four police before we can actually get to a detective.

CAVUTO: Is that right?

MAMBETOV: So we were told at first, make the report online.

It's a $50,000 ring. How can I record it online?

CAVUTO: Incredible.

So what do you do now?

MAMBETOV: You know, now it's really about trying and always to find the safest place possible.

I used to say, OK, if I'm in Beverly Hills, these types of things probably won't happen. But then you have the robbery of the Richard Mille watch at gunpoint at a Beverly Hills restaurant.

CAVUTO: Right.

MAMBETOV: You have the things that have happened in Hancock Park.

So, as a retailer, it's not only about protecting my brands, but I also have to protect the people that work for me. I can't ask someone who works for me to protect a diamond ring when someone could have weapons, guns, knives.

So it's really such a volatile climate. And it's really difficult to navigate and find out where's the best place to open and how do we open and still stay safe.

CAVUTO: Well, I hope you stay safe. And I hope you are OK.

But, man, oh, man, Elle B. Mambetov, please keep up posted. A lot of people are saying that they hope you reopen again or somewhere else. But be well. Be safe.

MAMBETOV: Thank you so much.

CAVUTO: Just incredible, right?

Enter Summer Stephan. He's a San Diego county district attorney. She. I apologize.

When I heard about this, Summer -- and I have heard others recite almost line and verse the same story, what's going on? I mean, last year at this time, we would see sporadic incidents. Now they seem to be much more frequent. There's no help. And there doesn't seem to be any concerted effort to help these folks out. What's happening?

SUMMER STEPHAN, SAN DIEGO COUNTY DISTRICT ATTORNEY: Yes, Neil, it's really terrible to watch the images on television and to see the lack of accountability.

What's happened is, unfortunately, in some regions of California and across the United States, there are some district attorneys that don't believe in the rule of law. They don't believe in accountability. They kind of create consequence-free zones.

We don't have that issue in San Diego. Actually, law enforcement likes it when there is a series of these kinds of situations where you have these organized retail thefts, and they end up in San Diego, because that's the wrong place to be, because we prosecute. We have an organized team. We work with CHP, our law enforcement, and we go after them.

And we make sure there is accountability. The criminals out there, they know. They have a pulse as to what's happening. And, unfortunately, the pulse that they're getting from some regions outside San Diego is that anything goes and that there are no victims' rights.

CAVUTO: But what happens then?

When the L.A. district attorney, Gascon, was asked about this problem, he said, one thing, it's overhyped in the media, and that there are obligations that go way beyond his office. And yet we do know that these issues are not addressed, that people are not apprehended.

And I used to think it was back not too long ago when there was a limit on how much you could steal or take out of the store before you would be brought up on charges, let alone brought in to an establishment.

So, I -- what is he saying to you about this?

STEPHAN: Well, he's not saying anything, unfortunately, that makes any sense. And that's the problem. There is no clarity.

Criminals know that they basically have a free card to do whatever they want. The policies, they not only sanction these economic thefts. They also sanction violence.

(CROSSTALK)

CAVUTO: What happens, district attorney, when these incidents occur?

Because, oftentimes, I see the perpetrators walking, not running, out, and not in the middle of the night, in the broad daylight. So what happens?

STEPHAN: Well, store owners in retail, I just met with them this morning, especially small business owners.

They are not even calling police because they feel like they have given up, that there is no accountability. That is not happening. We just did a case that has $700,000 loss that we took from the entire state. So this is just -- you have to have the rule of law. You have to have district attorneys that follow the law.

And that way, police can count on that, when they do their job, that we will bring a case, and victims know that they have that accountability. What you're seeing is a -- is the result of a series of really bad decisions that prioritized crime over victims and community safety.

CAVUTO: Just amazing.

Summer Stephan, thank you very much, the San Diego county district attorney.

We did reach out to the L.A. district attorney, Gascon, to respond to these criticism that he's not doing enough or making light of it. We have not heard back.

All right, in the meantime, following what's happening on the Build Back Better front, we might know a thing or two more about interest rates likely going up. Right now, we have very few indications that this thing is going to even be voted on before Christmas.

Stay with us, because Senator John Kennedy of Louisiana is here.

(COMMERCIAL BREAK)

CAVUTO: You see these smash-and-grabs?

Well, the Senator John Kennedy of Louisiana says, enough is enough. He is calling for hearings into this crime surge, and isn't accepting any excuses.

Kind enough to join us now.

Senator, what do you want with these hearings?

SEN. JOHN KENNEDY (R-LA): I would like to ask our colleagues from the Biden administration to come over and talk frankly with us about, A, the problem.

We can discuss the reasons for the problem, but I'm more interested in solutions. I have my own opinion, but -- which we can talk about if you would like. But I think that people respond to incentives.

And I will put that another way. What you allow is what will continue. And for a variety of reasons -- well, let me put it slightly differently. If you don't arrest criminals, if you don't prosecute criminals, if you don't put criminals into jail when they deserve it, you're going to have a rise in crime.

Why? Because the criminals are not unhappy. They can get to be criminals. And I think that's what we have in our country. I think the genesis of part of in anyway was the defund the police movement. And it wasn't just defund the police. It was also disrespect the police.

It caused a lot of our police officers to retire. It caused a lot of them to be more cautious. Caused a lot of them to become disillusioned. And some of these cities did cut the police funding. And...

CAVUTO: You're right. It did feel on itself.

But, Senator, in Chicago, and even in California and some cities, the finger-pointing goes to the retailers themselves, that they're not doing enough. What did you think of that?

KENNEDY: I thought that was nonsense.

The first responsibility of government is to protect people and property. I mean, that's why we founded a social contract. And it's government's job to do that. And if any public official tries to blame it on the victim, shame on them.

CAVUTO: If I could switch gears, sir, because there's a lot going on, only a couple of minutes with you, which I treasure, of course.

The Federal Reserve is indicating that it's going to start hiking interest rates, maybe at least three times next year, three times a year after that. What do you think of all that?

KENNEDY: We have got a problem, a big problem, with inflation.

I know President Biden's economists say that COVID caused inflation. And I agree with them that inflation is spreading. But, as one commentator put it last week, people aren't walking around coughing inflation on each other. Inflation is caused by too much money chasing too few goods.

It's caused, in this case, by the breathtaking spending and borrowing by the federal government. It's going to require our Federal Reserve to raise interest rates much, much sooner than we thought. I'm really worried about the impact of that on our economy.

We don't have a choice. We have got to control inflation, because it's a tax on all of us. But, on the other hand, I don't want an interest rate class to throw us into a recession. And I'm biased.

CAVUTO: Do you think that's going to happen?

KENNEDY: Well, I don't -- I hope not.

CAVUTO: As you know, the administration has already claimed, you pass Build Back Better, none of that happens.

What do you say?

KENNEDY: Well, I think the Build -- the -- I think that's just rhetoric.

I think Build Back Better will be a -- cause a massive increase in inflation. I mean, it's -- the bill is breathtaking, Neil, in its scope. It's $5 trillion. It's $3 trillion of borrowing, $2 trillion of new taxes.

I think the administration is really playing with fire here.

CAVUTO: All right, we will watch it very closely.

Senator, always good having you, Senator John Kennedy, beautiful state of Louisiana, looking into crime, looking into inflation, looking into all of these issues.

By the way, the figure he was quoting, the $3 trillion extra, that's from a CBO report that analyzed, if a lot of these programs didn't expire as they're intended to, what would be the real cost of that package, and they came up with something closer to $5 trillion, not the $2 trillion that it's billed for.

In an inflationary environment, that is generally not the news you like to hear. But, for now, the inflationary fight is on. We will see how that goes with the Fed.

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