'Your World' on Omicron variant, spending negotiations

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'Many cases' of omicron likely in the US already: former acting CDC director

Dr. Richard Besser says there are already probably many cases of the omicron variant in the US on 'Your World.'

This is a rush transcript of "Your World with Neil Cavuto" on December 2, 2021. This copy may not be in its final form and may be updated.

NEIL CAVUTO, FOX NEWS ANCHOR: Here we go again, a third case of the Omicron variant now reportedly cropping up in Colorado. Officials say that the man, who was fully vaccinated, recently attended a convention in New York City, had not even been in Africa.

This as President Biden is unveiling some sweeping travel restrictions to deal with it. And if Wall Street is worried, well, as I so often say, it has a funny way of showing it, at least today. We are keeping track of it, all of it.

Welcome, everybody. Happy to have you. I'm Neil Cavuto. And this is "Your World."

We have got FOX team coverage right now with Rich Edson on how the White House is responding to all this, and Kelly O'Grady at LAX on how travelers are going to, well, try to deal with all of this.

We begin with Rich.

Hey, Rich.

RICH EDSON, FOX NEWS CORRESPONDENT: Hey. Good afternoon, Neil.

And the White House says President Biden is pulling out all the stops to deal with this new variant, also going in to the holiday season and indoor season in the wintertime. You have got a number of different restrictions and guidelines that the White House has just announced. The president was at the National Institutes of Health doing so a couple of hours ago, where we also said that fighting this pandemic should not be political.

(BEGIN VIDEO CLIP)

JOE BIDEN, PRESIDENT OF THE UNITED STATES: This is a moment we can do what we haven't been able to do enough of through this whole pandemic, get the nation to come together.

Think it in terms of literally a patriotic responsibility, rather than somehow you're denying people their basic rights.

(END VIDEO CLIP)

EDSON: The White House is pushing boosters, at-home testing and tightening travel rules. The federal government will require travelers coming to the United States to test negative for COVID-19 within 24 hours of their departing flight.

Previously, you had 72 hours. The travel industry group says they're hoping this will be temporary until more is learned about the Omicron variant. The administration is also extending mask mandates for public transit and domestic flights.

It's still unclear how effective current vaccines and boosters will handle the new Omicron strain. The White House says the administration is working with Pfizer, Moderna, and J&J to develop contingency plans for other vaccines or boosters.

There are also concerns this new variant could pose new problems for the economy, on top of worker shortages, inflation and supply chain disruptions. The White House says the administration has made a lot of progress to relieve supply chain bottlenecks, maintains the administration has done a lot to prepare for this moment, and will continue to assess where the supply chains are -- back to you, Neil.

CAVUTO: All right, Rich Edson, thank you very, very much.

Just to clarify, there are three individuals we have known who have been testing positive for this variant. It was a man in Minnesota who had visited New York City, never visited Africa, who tested positive. The woman in Colorado, we do not know her situation. I will keep you posted on that.

But as many have said in the medical community, it's a good bet that a good many people here have this. We just don't know how many or whether it's even severe. Even the cases that we have reported out of Africa itself have been relatively tame. So, again, there might be a good deal of much ado about nothing here. But everyone's taking precautions, as are travelers through all of this.

FOX Business' Kelly O'Grady is at Los Angeles International Airport with more -- Kelly.

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

Well, yes, on top of these new travel restrictions as well as the extension of that mask mandate for transit through March 18, I want to remind you that this comes just days after banning travel from those eight Southern African countries.

So, for the travel industry, it's just one hurdle after another. Now, the biggest change for those travel restrictions comes for all travelers coming to the United States, including Americans, now have to test within 24 hours vs. 72, like Rich said, before boarding flights, regardless of their vaccination status or departure country.

One concern about this change, though, is whether countries and airports will even have the infrastructure to handle that turnaround time, as testing is going to increase across the world with Omicron's spread.

Now, the U.S. Travel Association commented on those new measures, saying that they hope it's temporary. And this tightening of restrictions comes as U.S. officials have ordered airlines to disclose the names and contact information of travelers who have visited the eight Southern African countries under the travel ban within the last two weeks.

But with fear building, critics are questioning why there's the rush to implement these restrictions, when even Dr. Fauci himself has admitted we won't know more about Omicron for another two weeks.

I tell you, though, travelers here don't seem that worried.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I don't think it will affect me. I will still travel.

UNIDENTIFIED MALE: If you do it within 24 hours, it's actually -- it's kind of better as far as like, right then and then, you don't have COVID.

UNIDENTIFIED FEMALE: No, not at all. I would travel the same.

(END VIDEO CLIP)

O'GRADY: Now, there were reports that they were considering post-arrival testing, as well as a seven-day self-quarantine period.

But senior administration officials tell us that they won't be implementing that as of now. But, as it feels like restrictions are changing daily, that outlook for an easier travel -- travel holiday season that we were hoping for seems dim, Neil.

CAVUTO: All right, thank you very much, Kelly O'Grady following all of that at LAX.

Now, one of the things that the president has recommended is that you keep wearing masks right through March, as things stand right now, and that coming into this country, whether you are a foreigner or an American, that you would be tested as well.

How far that goes and how disruptive it will lead to the economy is anyone's guess.

But they're all good ideas to my next guest.

Dr. Richard Besser is the former CDC acting director, Robert Wood Johnson Foundation CEO.

Doctor, good to have you on.

A lot of people hear some of these measures, and while none are really draconian, they start calling into question, do I really need to take that trip? Do I really need to go out to the mall? I mean, is this a hassle?

How do you respond to them?

DR. RICHARD BESSER, CEO, ROBERT WOOD JOHNSON FOUNDATION: Yes, Neil, this is one of those situations of incredible uncertainty.

And I remember from my days at the CDC, in a situation like this, where there is a potential threat, and you don't currently know how great that threat is, you want to go at it hard, because going about it any other way, if it turns out that the Omicron variant is more -- more severe and spreads more easily, and is a risk to people who've either had COVID already or been vaccinated, you want to know that you have done everything to try and slow the transmission and protect people's lives.

My hope is that we will take these measures now and, over the next two weeks, as scientists answer those questions, many of these restrictions and changes will be able to be lifted. And that would be a good thing.

I have always been in a position where I would rather someone say that we did too much than to say we did too little.

CAVUTO: Doctor, there are a lot of people -- I guess in kind of both ways, right, there are a lot of people who hear this and say, well, if after all these vaccinations and everything else and shot after shot and booster shots, and we're still seeing this variant, and they're not sure that this variant is going to respond to anything we have out or we will get something to treat it later, why the heck should I get vaccinated?

So, the unvaccinated could say, I'm going to remain unvaccinated. Conversely, they could do what the president seemed to intimate, that they get scared into getting something, and that would be a good.

But how do you see this falling out?

BESSER: Well Neil, I -- there's part of this I don't really understand.

And that's today in America, just about every day, 1,000 people are losing their lives from the Delta variant. And, to me, that would be enough of an incentive, when you look and you see that the vast majority of people who are dying from this, who are being hospitalized haven't been vaccinated, that I would want to get my questions answered, and I would want to roll up my sleeves to protect myself, my family, my community from the Delta variant.

Whether or not the Omicron variant turns out to be a challenge, I don't think we can accept as a nation that 1,000 people across our country die every day from this. But, right now, that seems to be something people are getting used to.

And then the signs I see of that are people not wearing their masks when they're indoors in crowded places...

CAVUTO: Yes.

BESSER: ... and not getting tested if they have symptoms.

CAVUTO: No, but, Doctor, I'm glad you mentioned about, because people think, when we mention about the 1,000 people dying a day, that we're making this number up.

We're not making this up. I'm very eager for people to get vaccinated. I see the wisdom in that. I don't want to weigh in on the mandate thing and all that, but I just think it's better to be vaccinated. Yet, when I mentioned the 1,000 people dying a day, they say, oh, you made it up.

And the statistics are there. But, be that as it may, Doctor, we're learning a little bit more about these three individuals, including this woman in Colorado, and maybe if they had any exposure or connection to Africa, where all of this originated.

Now, the woman in Colorado had traveled to South Africa. So she was fully vaccinated, like the two others, and experienced some minor symptoms, in all three cases, relatively minor reactions right now. The gentleman in Minneapolis stands out, I guess, Doctor, because he had not traveled to the African continent at all.

He had been in New York City, which raises the possibility he might have been exposed to someone who had been there. What do you make of that?

BESSER: Yes, I think that there are probably many, many cases of the Omicron variant in the United States.

And now, as the CDC is ramping up, they were doing 8,000 tests to look at what type of variant it was. That's now going to be 80,000 tests a week. And with that, they're going to see a lot more and we will get a better understanding.

With these three cases, if all three of these cases, the word had been they're all in the hospital, they're all in the intensive care unit, that would really give me grave concern. The fact that they are all mild cases, I like that news. But I will be much more comfortable after systematic studies are done to look at the full spectrum of illness.

CAVUTO: Yes.

BESSER: But it is reassuring to me somewhat that these cases so far have been mild.

CAVUTO: Do you think we will ever get through this anytime soon? Or is this just going to be a part of our life, not necessarily a dangerous, devastating part of our life, but maybe like the common flu?

I just wonder where this goes.

BESSER: Yes, I -- we are going to get through this.

We are -- everyone is so ready to be over this pandemic and over this virus. This virus isn't ready to be done with us.

CAVUTO: Right.

BESSER: But I think we will get there, and I hope we get there with far fewer lives lost than I fear we're going to see.

CAVUTO: Well, Doctor, you have always been a very calming influence and keeping the politics out of this, just talking to people being safe. And I appreciate that.

Dr. Richard Besser, the former CDC acting director, Robert Wood Johnson Foundation CEO, a real medical smarty-pants.

All right, so what do you do now? You got these warnings, and a lot of people saying, maybe I'm not really keen on traveling, I'm not really keen on doing much of anything, until we know what's really going on here.

Let's get the read right now from Kat Timpf, "Sincerely Kat," big host on Fox Nation superstar, Brian Brenberg here as well, FOX News contributor, King's College business and economics professor.

I have always told the professor, I wish I had teachers like him in college, because, otherwise, I was falling asleep in the class.

(LAUGHTER)

CAVUTO: Anyway, Doctor -- Professor, I end it with you.

I be curious about how psychology plays a role in our economy. We certainly see the way it plays in the markets, when it looks like, oh, I'm not so worried about this variant, stocks run up. Yesterday, we were when it looked like it wasn't such a smooth ride.

Do we overdo it? In other words, can we pin ourselves into something that isn't justified?

BRIAN BRENBERG, FOX NEWS CONTRIBUTOR: Well, yes, I think that's really the concern here, Neil, is, we get some news about a strain.

We don't know a lot about it. As we learn more about it, we find out is it's in the U.S. It's clearly in several places in the U.S., based on this Minnesota case that we just saw. The point is, don't panic. Don't risk everything that we need to do to make a comeback from this by instituting restrictions and confusing requirements that people can't understand.

And it causes them to throw their hands in the air and say, are we ever going to get through this? I mean, I appreciate the doctor just said we're going to get through this. But I think people at home right now are saying, well, exactly why?

Because it seems like our government every single time we get new news wants to pull back on life. You're never going to get back to normal if, with every new strain, we go through the same process over and over again.

CAVUTO: What about you, Kat?

As you -- you travel a good deal. Would it make you rethink that?

KATHERINE TIMPF, FOX NEWS CONTRIBUTOR: No, not me personally.

I traveled internationally over Thanksgiving. And I'm fully vaccinated. I had COVID in between shots also. So my doctor says that counts as a booster. I'm not worried about the virus. But I am a little worried about some of the things closing down again, and making plans for maybe a vacation that would be in the future, and not knowing where -- what -- where I'm going to arrive, if it's going to be -- things are going to be open, if I'm going to have anything to do, if things are going to be canceled.

CAVUTO: Right.

TIMPF: Because you have to take time off work. And you make all these plans. So that's the area where I'm concerned.

And I think that's what's going to really impact the economy, even among people who are not concerned about the virus itself, might be concerned about what impacts it's going to have on doing the things that you want to be doing.

CAVUTO: And what other governments are doing.

TIMPF: Right.

CAVUTO: I had a staff member when I was doing my FBN show, which, Brian, if you don't get, you should demand. But you have been on the network, so you know it.

But saying something like that they were afraid of getting stuck in Costa Rica.

TIMPF: Yes.

CAVUTO: And if they were to test positive. I said, well, that's a great place to be stuck.

But, having said that, people are weighing these kinds of things now, at the mercy of foreign governments, let's say, and they saying, well, I don't want to be at the mercy of foreign governments.

BRENBERG: Yes.

And, look, America has got a leadership role in this as well. I mean, we set the tone in many ways for how the world is going to respond to this. Right now, we seem to be following a lot of the places that are reacting most strongly in a knee-jerk way to what's going on.

I have been talking to businesses who are having to rejigger -- you talk about supply chains -- their entire supply chain. And what they end up doing is holding so much more inventory, Neil, which means they're putting more and more money into trying to get more and more product in a warehouse so they can sell it.

They're not thinking this thing's ever going to be over. When they see these restrictions, Neil, they say, my government is not interested in making my life easier. I can't get things across border. I can't get my people around the country? What am I going to do?

The press secretary didn't help today when asked about whether we might have more domestic travel restrictions. We said -- she said, well, they're not off the table.

CAVUTO: Yes.

BRENBERG: Well, my goodness, what in the world is off the table at this point?

You cannot make plans if nothing is off the table.

CAVUTO: But I like your attitude, Kat. You're fully vaccinated and all that, but -- and you take your chances. That's life. But you're going on with life.

TIMPF: Yes, I'm going on with life as much as I can, right, of course.

I mean, I still haven't taken a honeymoon because we really had these plans that we were dumb enough to think that, by next year, things are going to be OK, and we were going to be able to take this overseas trip confidently.

CAVUTO: I told you a million times about the Catskills, and you ignored me. And I kept warning you.

TIMPF: Well, it's looking that might be what -- maybe we will go to Poughkeepsie, right?

(CROSSTALK)

CAVUTO: It's beautiful.

TIMPF: Because you don't -- because we wanted to go to Japan or somewhere. Now it's like, oh, I guess maybe I will just die without ever going there, because this is never going to end.

I know that's a little dramatic. And I can be a little dramatic.

(LAUGHTER)

TIMPF: And I also know that people who are far less dramatic than I am are starting to feel this way, because we will start to feel like things are coming back, and we will start to feel like, oh, wow, I see a little bit of hope.

CAVUTO: Yes.

TIMPF: And then, boom, it all comes crashing down again.

CAVUTO: Well, you shouldn't talk to Brian so much.

(LAUGHTER)

CAVUTO: But, guys, I want to thank you very, very much.

We're examining how people are responding to all of this.

In the meantime, something else for you to worry about, not that it's a big, big worry, but we might have the government shut down tomorrow night. But it's just money and job security and the economy. What could go wrong?

(COMMERCIAL BREAK)

CAVUTO: All right, what to make of this Omicron virus, this variant, and how to really go forward.

My special guest tomorrow will be Dr. Anthony Fauci to respond to this and how we balance the line between alarming people and protecting people. Dr. Anthony Fauci with me tomorrow to give this, well, a good discussion.

In the meantime, another discussion in Washington, in the Beltway areas, is whether the government will be shutting down late tomorrow night, I believe they have until just midnight to come up with something that will avoid the government lights being shut off. At least, that's how it all starts.

Chad Pergram on where things stand.

Hey, Chad.

CHAD PERGRAM, FOX NEWS SENIOR CAPITOL HILL PRODUCER: Good afternoon, Neil.

The House votes later today on an interim bill to fund the government through February 18. But GOP Utah Senator Mike Lee won't let the Senate accelerate the process. Lee demands a vote on his plan to eliminate federal vaccine mandates.

(BEGIN VIDEO CLIP)

SEN. MIKE LEE (R-UT): The choice is between temporarily suspending nonessential functions, on the one hand, and on the other hand, standing idle as up to 45 million Americans lose their jobs.

(END VIDEO CLIP)

PERGRAM: Most GOP senators oppose Lee's strategy, but they don't like Lee using the government shutdown as a means to an end.

(BEGIN VIDEO CLIP)

SEN. JOHN CORNYN (R-TX): Well, I share their concerns about the vaccine mandate. But we know, ultimately, we're going to fund the government. And I don't see the -- this hostage as one that we should take.

(END VIDEO CLIP)

PERGRAM: Senate Majority Leader Mitch McConnell opposes Lee's gambit. He doubts the government will close.

President Biden spoke with McConnell and Senate Majority Leader Chuck Schumer today. The president says the leaders have a plan if someone -- quote -- "decides to be totally erratic."

House Speaker Nancy Pelosi says it's reckless to have a shutdown during a pandemic.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D-CA): I don't think that the Republicans in the Senate want to shut down government. I don't know that they would even have the votes to do so.

But it is yet again a double, a double sense of irresponsibility.

(END VIDEO CLIP)

PERGRAM: The issue in Congress is usually about the math, whether they have the votes to pass a bill or break a filibuster.

But, on this occasion, it's not about the math. It's about time. They don't have the time to overcome Lee's delay before the funding deadline -- back to you.

CAVUTO: All right, we will watch it closely.

Chad Pergram, thank you very, very much.

Let's get the read on all this from California Democratic Congressman Ro Khanna.

Congressman, what do you think? I mean, you talk to members all the time. Is it your sense that, as has happened dozens of times over these many decades, that something is cobbled together at the last second, and we avoid this, or we just push it back to a future month?

REP. RO KHANNA (D-CA): I'm optimistic, especially when you have Senator Cornyn and Senator McConnell saying they don't want to shut down government. There are many folks on the other side of the House who don't want this to shut down.

So one or two senators shouldn't get to shut down the entire government of the United States. That makes no sense. Let's just get this done.

CAVUTO: All right, so assuming we can do something, some say it's akin to kicking the can down the road or dealing with this issue again in February, whenever it is, there is still the debt ceiling issue.

That's on the 15th, and we're told by which time we could be looking at running out of funds, period, and then the whole Build Back Better thing that Chuck Schumer wants to get done before Christmas. Do you think all that is possible?

KHANNA: Well, the debt ceiling, we have to do. I mean, we are never going to default, as the United States of America. No one should wish that we default. We will get that done.

I hope we can get that done with Republicans. Usually, it's always bipartisan, but, one way or another, we will raise it. And I'm optimistic on Build Back Better, because that will help lower costs, lower prescription costs, lower food costs. I think we need to do it.

CAVUTO: How will Build Back Better lower costs? How -- I can understand the prescription thing, if that's going to be the government playing a role. But almost any government spending initiative is inflationary.

The only degree is to how inflationary. So, how is this going to solve rising costs?

KHANNA: Well, on prescription drugs, there's a cap.

For instance, if you take insulin date, diabetes, it's going to be 34 bucks a month -- 35 bucks a month.

CAVUTO: Right.

KHANNA: On the broader issue, it's going to deal with supply chain issues and with labor shortages.

I think one of the reasons you have seen food prices increase, other prices increase is because of a shortage of workers. And if you can get people back into the work force by having child care, if you can get people back into helping with the supply chain with the investments in infrastructure...

CAVUTO: But if you think about it, though, Congressman, there are 10 million Americans who are ignoring job opportunities, really good job opportunities and offers that are out there.

Are you saying the only reason why they're not is because of child care issues, and that will magically change with the passage of this?

KHANNA: No, I'm not saying that. I don't want to be that overbroad.

I -- obviously, there are complex factors. But I do think child care will help. And then just it's lowering costs on American families. I mean, they won't have to pay...

(CROSSTALK)

CAVUTO: I don't mean to hammer this.

KHANNA: Yes. NO, no.

CAVUTO: But if you think about it, we didn't have any of this child care stuff, right, that was put into this legislation when, before the virus hit and the pandemic hit, we were looking 3, 3.5 percent unemployment.

So, that was without any of these child care features, and we were doing just fine then. So I'm wondering why we so desperately need it now.

KHANNA: Well, there's -- the situation has changed with the pandemic.

I'm sure you know, Neil, folks who have their kids quarantined for 10 days, the class isn't open. They have to stay home with their kids. They can't -- there are issues with traveling that are restricted.

CAVUTO: You don't think that sets a dangerous precedent, though, that the government comes to the rescue and funds people, already after spending $5 trillion as it is?

Isn't that one of the big catalysts for the run-up in prices that people are experiencing, that, with the best of intentions, Congressman, you're going to put them further to the wall?

KHANNA: No.

First of all, the spending is over 10 years. So, you're talking really about $175 billion over the next year, and even...

(CROSSTALK)

CAVUTO: On top of the $5 trillion that's already been spent. Whether it's over five, seven or 10 years, that money adds up, right?

KHANNA: Well, the $3 trillion was under Donald Trump.

But most of that money -- look at the $175 billion compared to the $5 trillion. That's not going to help with -- or push inflation. That money is going to help with lowering child care costs. It's going to help with giving people less costs of taking care of the elderly.

I think these are long-term investments that are going to help the working and middle class and that are long overdue. It's going to mean you pay less if you're in the working class or middle class with these policies.

CAVUTO: All right, well, that would be a first, if that happens. But we will see.

Congressman, great seeing you again, Ro Khanna of California.

KHANNA: Appreciate it.

CAVUTO: Well, another development we're following very, very closely is tension, growing tension between Russia and the United States, our secretary of state meeting with his counterpart in Russia.

Let's just say, chilly.

(COMMERCIAL BREAK)

CAVUTO: Santa knows you want one of those hot new Apple iPhones. Now it's getting word from Apple that, well, it just might have them ready for you. What's going on?

After this.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ANTONY BLINKEN, U.S. SECRETARY OF STATE: In my meeting with Foreign Minister Lavrov, I made very clear our deep concerns and our resolve to hold Russia responsible for its actions.

(END VIDEO CLIP)

CAVUTO: All right, he might have relayed the deep concerns, but Congressman Mike McCaul of House Foreign Affairs Committee has his doubts.

He's joining us right now.

Congressman, good to see you.

REP. MICHAEL MCCAUL (R-TX): You too, Neil.

CAVUTO: Obviously, we have got these, what, 100,000 Russian troops poised at the border on the Ukraine. And I have a feeling they're not just taking in the beautiful views. What is your worry?

MCCAUL: No.

My worry is an invasion, the size of which we hadn't seen since World War II. They are very determined, very serious about this. There are about 100,000 Russian troops on the Ukraine border as I speak, with many more on their way from Moscow.

And you have to ask the question, what provoked this? I would go back to Afghanistan and the showing of weakness by the unconditional surrender to the Taliban. This has provoked not only Mr. Putin, but also President Xi and China, as they look at imperial China and Taiwan and the islands in the South China Sea.

This is all happening in real time. And it's happening very quickly after the fall of Afghanistan.

CAVUTO: Now, this troop presence -- and you're right to allude to it -- it's gotten pretty big now. But it has been a steady and very, very unstoppable buildup that goes back to the early part of the spring, in fact.

But I'm wondering why the Russians might risk it when they know the economic rap they will take. They did it before, to your point, in 2012. So that is a legitimate concern. I'm just wondering where you see this going and why they would risk that, when it comes to just the economic harm that would come to them?

MCCAUL: Well, they have always wanted Ukraine back.

I think Putin wants the old Soviet empire. And Ukraine was the breadbasket of Russia. So this has been on their plate for quite some time. They have always wanted to take it back. And I think they're making a calculation that this president is exhibiting weakness, and that he's not going to -- he's not going to respond.

So I think it's important for the administration to show deterrence here and for our NATO allies to show -- demonstrate to Putin, this will come at a high price if you do this.

If they can move in, like China did in Hong Kong...

(CROSSTALK)

MCCAUL: ... they will do it.

CAVUTO: I'm sorry.

When you say a high price, that it would go beyond economic sanctions and all, that would the high price be our sending in troops to respond, NATO to up the ante and militarily respond? What exactly are you saying?

MCCAUL: Well, I think the sanctions will be extremely important and I think effective.

I do think it's important that NATO and our allies have a presence in Ukraine as this threat plays out. But, remember, this is the same president and administration who, when Congress put mandatory sanctions on Nord Stream 2 pipeline that will go from Russia into Europe, President Biden waived those sanctions in the national interests.

I don't know how that's in the national security interests of the United States to allow Putin to complete his pipeline into Russia, making Europe dependent on Russian oil and gas. In fact, in the national defense authorization debate going on right now, I passed an amendment to take away that presidential waiver.

And that is sitting down in the Senate. And this has been Secretary Blinken's number one job right now is to get my amendment stripped out the national defense authorization.

I don't understand this foreign policy that emboldens our adversaries like Mr. Putin. I think he sees that as weakness. And the only reason they did it is because they had a summit with Putin, and they wanted to make him happy in this discussion.

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

Congressman Michael McCaul, very good seeing you again.

MCCAUL: You too, Neil.

CAVUTO: In the meantime here, keeping a close eye on troubles at the White House, not with the president of the United States, so much as the vice president of the United States. Another key player bolts from her.

What's going on?

Next.

(COMMERCIAL BREAK)

CAVUTO: You know, it's only been about nine or 10 months of the Biden administration, and already, Symone Sanders, the senior adviser to the vice president of the United States, is parting company from the vice president of the United States, the second biggest defection we have seen and fears of more to come in the number two's camp.

Let's go to Peter Doocy at the White House.

What's going on here, Peter?

PETER DOOCY, FOX NEWS WHITE HOUSE CORRESPONDENT: That's a good question. What is going on?

One of the vice president's most visible advisers, Symone Sanders, is joining a handful of others from the V.P.'s office heading for the Pennsylvania Avenue gate.

(BEGIN VIDEO CLIP)

KAMALA HARRIS, VICE PRESIDENT OF THE UNITED STATES: I love Symone. And I can't wait to see what she will do next. And I know that it's been a -- it's been three years of a lot of jumping on and off planes and going around the country.

(END VIDEO CLIP)

DOOCY: The V.P.'s poll numbers have fallen. And her portfolio is really big.

She's got root causes of immigration. She's got the Space Council and she has got voting rights. And now her office is reviewing applications.

(BEGIN VIDEO CLIP)

DOOCY: Is the vice president not satisfied with the staffing that she's had so far? Or do people just not want to work for her anymore?

JEN PSAKI, WHITE HOUSE PRESS SECRETARY: Well, Peter, I would say that working on a presidential campaign, maybe covering one too, I would say, to be fair, and working in the first year of a White House is exciting and rewarding, but it's also grueling and exhausting.

(END VIDEO CLIP)

DOOCY: And there's talk about recent poor polling possibly hurting Kamala Harris if she runs for president in 2024, a possibly growing rift with Pete Buttigieg if he wants to run in 2024.

But all that talk really has to wait for the president, Joe Biden, to say that he is not running for reelection. And as far as we know, based on what he has said, he says he's in -- Neil.

CAVUTO: All right, Peter Doocy, thank you very much.

So, if Pete is right -- I have no reason to doubt him -- if he's in, then does that mean, potentially, Kamala Harris could be out?

Let's go to Tom Bevan RealClearPolitics.

Tom, as remarkable as that sounds, it used to be commonplace for presidents to sort of go through their vice presidents like tissue paper. FDR famously seemed to be switching running mates every quadrennial run.

I'm just wondering, since we haven't seen it since that period, whether we're about to now.

TOM BEVAN, CO-FOUNDER AND EXECUTIVE EDITOR, REALCLEARPOLITICS.COM: It seems unlikely, Neil, because it hasn't happened in such a long time.

I mean, the latest -- you go back to the '70s with Gerald Ford replacing Spiro Agnew...

CAVUTO: Right.

BEVAN: ... there were scandal involved, right?

But it certainly hasn't happened in the modern era. And she cannot be fired, obviously. There's talk that she might get some Supreme Court appointment. Someone would have to resign or die from the Supreme Court. So that seems like a bit of a bank shot.

And at the end of the day, Biden could -- if he is going to run for reelection, he could choose to drop her and replace her with Pete Buttigieg or someone else. But he would be under enormous pressure not to do that from Kamala Harris' supporters and plenty of folks in the Democratic Party.

CAVUTO: Normally, everything is right -- I know you have to deal with the earpiece here -- but everything is right when the administration sort of turns itself right, or comes through bad poll numbers.

But that is one of the first things an embattled administration will consider, doing something with the number two. How real are these tensions?

BEVAN: They're very real.

I mean, we -- the fact that we're seeing this, this early in the administration, less than a year in, we're seeing these stories that came out, this one from CNN that came out a couple of weeks ago talking about -- there was -- interviewed people on the record and Kamala Harris' camp talking about the tensions that they're feeling.

They feel like the Biden administration, the president has given her tough jobs, impossible jobs, and has treated other members of his Cabinet, including Pete Buttigieg, been more quick to defend him from assaults from critics.

All this stuff is unprecedented. And so I think that, when they look around and look at those numbers and the dysfunction that is clearly happening within the vice president's office, it does not bode well for Democrats, whichever way this is going to work out as they move forward.

CAVUTO: All right, Tom Bevan, thank you very much, RealClearPolitics big cheese, on all of those developments here.

We were telling you a little bit about Apple a while ago here that surprised some folks by sort of whispering to some suppliers: We might have some issues with consumer demand. Maybe it's inflation, but people are beginning to close up their wallets, or at least not inclined to spend nearly as much on pricey gadgets.

The implications of that -- after this.

(COMMERCIAL BREAK)

CAVUTO: All right, maybe the problem isn't that there aren't enough iPhone 13s, in big demand, but that consumers aren't keen on buying such a pricey gadget, at least right now.

That doesn't mean a sale is denied. If what Apple is telling some of its suppliers, it just could be delayed.

What to make of that with Hitha Herzog, who follows the retail industry better than anyone I know.

So, Hitha, help me with this. Apple seems to be saying there's a chill on here. It's not a huge deal. It's not a huge concern. But this is not going to be necessarily a huge Christmas.

What do you make of that?

HITHA HERZOG, RETAIL WATCHER: I -- Tim Cook had mentioned this in the earnings call a couple of months ago. And he said that this was potentially going to happen.

He didn't say that there was a slowing of demand. But they did cut product -- production of product of these iPhones. Now, this is a marquee product for Apple.

And I have to disclose I do own Apple stock.

And any time a CEO is transparent about what may be happening with their marquee product, investors get nervous. And we saw the sell-off that happened today. But if you look at the...

CAVUTO: But do you think, though, Hitha, on that, he -- and I have seen CEOs do this, nothing Machiavellian here -- that he's just trying to tamp down expectations here and maybe then surprise on the upside?

What do you think?

HERZOG: We have definitely seen Tim Cook -- and even before Tim Cook, we have seen Jobs do that a lot with Apple.

CAVUTO: Right.

HERZOG: They try to temper expectations and then, all of a sudden, they report out a blockbuster quarter.

Now, analysts like me are expecting this new holiday season to be pretty big for Apple.

CAVUTO: Right.

HERZOG: It won't be record-breaking, but it will be a blockbuster quarter. Sales are expected to be about 6 percent up during this holiday season.

And I have to tell you, Neil, I was in the short Hills Mall this weekend. I took pictures of the Apple Store because I couldn't believe what I was seeing. There were so many people in this store.

CAVUTO: Oh, sure.

HERZOG: Granted, this is the Short Hills Mall in New Jersey. And if you're not familiar with that mall, it's pretty fancy. But...

CAVUTO: Very fancy.

HERZOG: Very fancy, right.

CAVUTO: Right.

HERZOG: Apple's products have pricing power.

So when you have pricing power and those products incrementally increase, the consumer doesn't really flinch. They pay for it anyway.

CAVUTO: I do love that mall -- it's by me in New Jersey -- because it has couches it in the middle of the store, and not too far from an Anne's pretzels. So there is a way to sort of work that through.

All right, Hitha, thank you very much. We will see what they do.

This might just be a brilliant head-fake, but we shall see.

HERZOG: Yes.

CAVUTO: Hitha Herzog on those developments here.

In the meantime, even if you make it into an Apple Store and some of the other things, have you seen these rushed robberies? Well, that's scaring a lot of people off, and not only Apple Stores, lots of stores. And, in California, it's gotten so bad, they're saying, this is hurting us economically.

Yes, finally, they realize that -- after this.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

DOOCY: So when a huge group of criminals organizes themselves, and they want to go loot a store, a CVS, a Nordstrom, a Home Depot, until the shelves are cleaned, you think that's because of the pandemic?

PSAKI: I think a root cause in a lot of communities is the pandemic, yes.

(END VIDEO CLIP)

CAVUTO: OK, that could be in the eye of the beholder, I guess.

But Rachel Michelin is here to say, whatever it is, it's got to stop, got to get a handle on it right now. And it's having an economic fallout that's real, certainly in California. She's the California Retailers Association president and CEO.

Rachel, good to have you.

I guess it's gotten so bad that the governor now kind of agrees with you, we have got to do something about it. But what are they going to do?

RACHEL MICHELIN, PRESIDENT, CALIFORNIA RETAILERS ASSOCIATION: See, now, I was thrilled when the governor made his statements.

And we have actually already been in contact with the governor's office. We're in meetings with them on a regular basis now talking about -- really having some great dialogue about policy changes that could be made when it comes to putting an end to these brazen crimes.

It's unfortunate that it took the last couple of days and what we saw in California to kind of move that needle. But we're bringing in our subject matter experts from our retail companies in California. We're having great dialogues. We're putting forward some really great policy recommendations.

And so, as of today, I'm cautiously optimistic that maybe we will be able to get some movement in California to combat these brazen crimes.

CAVUTO: You're the expert there, and you live there, and you know it.

But I think what might have turned things are all these companies that might be rethinking even having conferences or annual meetings there. I know there was a big dust-up with J.P. Morgan to cancel its 20,000-member conference going on. A lot of people are very concerned. That was supposed to be in the San Francisco area. Just cancel it. Don't do it. We have heard about the crime. We want nothing to do with it.

So what is moving the needle here?

MICHELIN: Exactly what you just said.

I mean, while I'm here representing the retail industry, we're contacted by the hotel and lodging industry, the tourism industry. This is having a huge impact. San Francisco, it's going to take years for them to recover from the loss of economics due to the crime issues in the city.

We're starting to see it in Los Angeles. Not only that, but when you think about these crimes being committed the -- a million dollars coming out of Louis Vuitton store, that is sales tax revenue that these local governments lose.

So, you know, they're starting to see it.

CAVUTO: But it's brazen too.

I'm sorry, Rachel.

MICHELIN: I know.

CAVUTO: But help me with how brazen it is. And when did it get that bad?

Now, I know there was this allowance in California where they're saying, well, if you steal up to $2,000 worth of goods, you're safe, we won't pursue you. But it's got to be more than that, because this is happening in broad daylight. Guards are all but opening the doors for robbers and burglars.

When did it get this crazy?

MICHELIN: It's been leading to this.

And you and I have talked before.

CAVUTO: Yes.

MICHELIN: I have been like beating the drum, saying something's got to change. And it has to change now.

And when I saw what happened this last weekend, and I -- in talking to the experts in the retail field, they have never seen anything like this.

But when in California there are no consequences for your behavior, when we have open organized retail crime cases that are ready to go, but yet prosecutors are not prosecuting them, when we need the attorney general to step in and start prosecuting these cases, when that's not happening, then people know that they can get away with the behavior, and they continue to do it.

And as they continue to do it, it gets worse and worse and more brazen. We saw a security guard at Nordstrom sprayed with bear spray over the last couple of days. We have seen security guard's been killed at stores trying to stop these retail thefts.

This is -- we're entering a whole new arena right now. And it has to stop. And the retail industry, we're raising our hand saying we will work with anyone and everyone who wants to help us find solutions to put an end to this crime spree in California.

CAVUTO: Very, very quickly, while I have you as a retail expert as well, this idea that things might be slowing down because people are worried about prices, do you see any evidence of that?

MICHELIN: Not yet.

CAVUTO: Yes.

MICHELIN: I think we had -- I was just reading some numbers. We had a pretty good Black Friday, a pretty good weekend, and Cyber Monday for the retail industry. I think that -- but time will tell.

CAVUTO: Yes.

MICHELIN: Inflation is a big issue. We need to get a handle on that, but so far, so good. As long as we can deal with the retail theft piece of it, we would be in pretty good shape.

CAVUTO: Yes.

You stole my favorite line, Rachel. I always say that. It's an overused line. Time will tell. I always say, well, we don't know. Time will tell.

(LAUGHTER)

CAVUTO: Save that for the boring TV anchor.

Great seeing you again, Rachel.

Rachel Michelin, the California Retailers Association president and CEO.

Things are so bad here right now that they're saying they're going to get help from politicians who normally wouldn't even care.

Here's "The Five."

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