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This is a rush transcript of "Your World with Neil Cavuto" on October 10, 2022. This copy may not be in its final form and may be updated.

SANDRA SMITH, FOX NEWS ANCHOR: That young woman capturing one of the deadly attacks on Ukraine, this as Russia launches airstrikes on major Ukrainian cities today in response to an attack on a critical bridge linking Russia to Crimea.

Welcome, everyone. I'm Sandra Smith, in for Neil Cavuto. And this is YOUR WORLD.

We have got FOX team coverage to kick things off for you. Trey Yingst is on the ground in Kharkiv, Ukraine for us on Vladimir Putin's warning of more strikes to come, Mark Meredith on how President Biden's Armageddon comments could be complicating matters, and Lieutenant General Keith Kellogg and how the U.S. should respond to those attacks right now.

We begin with Trey. He's on the ground there, as I mentioned, in Kharkiv, for us, the target of some of those attacks.

What is the latest from there, Trey?

TREY YINGST, FOX NEWS FOREIGN CORRESPONDENT: Yes, Sandra, good afternoon.

We are getting new reaction today to the Russian attack on Ukraine earlier that decimated this country in many cities. Antonio Guterres, the U.N. secretary-general, calling this a -- quote -- "unacceptable escalation of the war."

Ukraine is bracing for additional strikes after more than 75 missiles targeted major population centers like Kyiv, Lviv and Kharkiv. At least 11 people were killed and dozens more injured, including the head of the national police cyber unit in Kyiv.

Black plumes of smoke were seen rising from the city center of the Ukrainian capital after the attack began. While the Russians say they were targeting military infrastructure, images from the ground tell a different story. A pedestrian bridge, a playground and a main street were damaged in the strikes, prompting the mayor of Kyiv, Vitali Klitschko, to say this:

(BEGIN VIDEO CLIP)

VITALI KLITSCHKO, MAYOR OF KYIV, UKRAINE: A war against civilians. Putin need Ukraine without Ukrainians. And Putin attack Kyiv a couple of weeks ago, months ago, a couple of months ago, and Kyiv was targeted and still targeted by Russians.

(END VIDEO CLIP)

YINGST: The U.S. State Department also weighed in, tweeting -- quote -- "Our hearts are with the people of Ukraine on this awful day. Slava Ukraini," which translates to "Glory to Ukraine."

Much of Ukraine is without power, as critical energy infrastructure was hit during the initial wave of strikes. Russian President Vladimir Putin spoke today about the attacks, saying they were in response to a bridge explosion over the weekend that damaged the only connection between Russia and Crimea.

We are learning tonight that President Biden spoke on the phone with Ukrainian President Volodymyr Zelenskyy promising Ukraine advanced air defense systems to shoot down these Russian missiles -- Sandra.

SMITH: Trey Yingst on the ground there for us.

Trey, thank you.

President Biden, meanwhile, condemning the Russian airstrikes, while vowing to support the people of Ukraine for as long as it takes.

To Mark Meredith now. He's at the White House. He's got the latest from there for us.

Hi, Mark.

MARK MEREDITH, FOX NEWS CORRESPONDENT: Sandra, good afternoon to you.

As you mentioned, the president is condemning Russia's latest actions. He says the attacks in Kyiv and other Ukrainian cities are only the latest sign of the utter brutality, which is being carried out by the Russian military.

The president did not stop to speak to reporters when leaving Delaware this afternoon. He just got back to the White House a few minutes ago as well. But, as Trey mentioned, he also has spoken by phone today with Ukraine's president, President Zelenskyy saying that they did discuss air defenses. In his own statement today, the president said the Russian airstrikes serve no military purpose and were meant to kill civilians.

President Biden going on to say -- quote -- "These attacks only further reinforce our commitment to stand with the people of Ukraine for as long as it takes. Alongside our allies and partners, we will continue to impose costs on Russia for its aggression, hold Putin and Russia accountable for its atrocities and war crimes and provide the support necessary for Ukrainian forces to defend their country and their freedom."

Tomorrow, G7 leaders are expected to hold a conference call with Ukraine's president to discuss the war, President Biden saying the U.S. is going to continue to provide Ukraine with military assistance. However, critics say these latest attacks proof more could have been done to hold Russia back off all the start.

(BEGIN VIDEO CLIP)

MIKE POMPEO, FOX NEWS CONTRIBUTOR: We waited six months to give them anything. And then we say we're going to give them artillery. We give them four.

We should be providing them the full firepower they need to impose real costs on Putin. And if we do that, it's the only possibility of convincing him to withdraw.

(END VIDEO CLIP)

YINGST: As I mentioned, the president now back at the White House. He did not stop to speak with reporters when returning today.

But the White House is still facing some questions about the comments the president made last week off camera at that private fund-raiser in which he said the threat of nuclear war remains very real.

Over the weekend, top White House aides insisted there are no signs that Russia has changed its nuclear posture -- Sandra.

SMITH: Mark Meredith live in Washington for us, not at the White House, at this hour.

But, Mark, we thank you.

How should the U.S. respond to Russian President Vladimir Putin's latest attacks on Ukraine? Former National Security Adviser Lieutenant General Keith Kellogg joins us now.

How would you define this moment in this war, General? Good to see you.

LT. GEN. KEITH KELLOGG (RET.), FOX NEWS CONTRIBUTOR: Yes, thanks, Sandra. Thanks for having me on today.

Look, in any war, war is a province of risk and opportunity. And there's an opportunity right now. It does come with risk. What President Biden should do -- and he shouldn't be doing it over the airwaves or a DNC fund-raiser, I think.

He needs to pick up the phone and needs to call Vladimir Putin and say quite clearly to him, look, we are going all in. We are going to provide Ukraine with every bit of armament they need to defeat the Russian army in the field and force them out of the field. And that means Crimea as well. And then you turn it over to Putin and said, OK, it's over to you now. What are you going to do?

I understand the risk behind that. But we haven't done that. As I said earlier, we haven't given the armament he needs. We haven't given him the air defense that he needs. Give it to him. Press the attack going forward. Then you basically tell Putin, it's up to you now. Do you want to escalate or do you want to negotiate?

And if you escalate, we're prepared for that. If you want to negotiate, we're prepared -- prepared for that as well. But we haven't done that. And I think we have not helped the Ukrainians win this fight as much as we should. And the opportunity is there. And we should follow that.

SMITH: So, you agree with Secretary Pompeo that it took us a while to get there, but now that the strategy is in place, we need more and we need sooner to get to Ukraine, so they can continue to defend themselves.

As far as these Russian attacks on these many Ukrainian cities, as Trey Yingst was just reporting, that this is widely seen as an escalation of this war, what do you believe is going to have to happen next? I mean, you have got this major attack on the bridge there connecting Russia to Crimea.

KELLOGG: Yes.

SMITH: Vladimir Putin labeling that as what he sees as a terror attack. Where does this go next, General?

KELLOGG: Yes, Sandra, Putin has misread this fight from the very, very start.

He thinks, by going after civilian targets, it's going to break the will of the Ukrainian people. It's not. They're going to be more resolved in the fight going forward. So, he's attacking targets that he thinks is going to affect the will and they're going to break down -- bring down the government. That's not going to happen.

He's losing the fight in the field. And what Zelenskyy needs to do, but he needs our help to do it -- he needs the alliance help as well -- to press the attack forward. And I really look -- and I have said this before -- look at the south.

If that attack on Kherson keeps going the way it's going and he's able to cut off Crimea, and he's able to take Crimea -- and the reason they hit the Kerch Bridge was that is a supply route into Crimea -- then Putin has got a major problem. But escalate to a level that Putin has to make the decision, do I escalate more or do I negotiate?

And then there his problem escalation is, he's going to become a pariah among the United Nations. But all of his allies are going to desert him as well. I just cannot believe the Russian military, nor the siloviki, the strongmen within Russia, or the Chinese want him to escalate much further than he is right now.

You're going to see the Chinese walk away from him. And when that happens, he's a man alone.

SMITH: I have only got about 30 seconds left or so, General. But I just wanted to get a final thought from you on this.

The British foreign secretary, James Cleverly, condemned the attack as unacceptable, the Russian strikes, that is, calling it a demonstration of weakness by Putin, not strength. It seems to me you agree with that statement.

KELLOGG: Well, I do, but we need to follow up on that. We can't just have rhetoric. You got to give them something with -- beyond the rhetoric. And that is weaponry. They need to prosecute the attack going forward.

We haven't given the air defense system. We haven't given him ATACMS. Give him everything he needs. But we need to tell Putin, there are certain guardrails and we're coming to do this and we're going to defeat -- the Ukrainians are going to defeat the Russian army in the field. And if you don't want that, then you better negotiate or pull them out.

SMITH: General Keith Kellogg, great to see you, and thank you for joining us.

KELLOGG: Thanks, Sandra.

SMITH: All right, Vice President Kamala Harris making the midterm rounds in Texas over the weekend. But guess where the administration's border czar did not go? Meet a border sheriff who isn't surprised.

And drivers might be surprised that gas prices are speeding closer to four bucks a gallon as a national average. Former Energy Secretary Rick Perry saw this coming. He will be with us shortly.

But Kelly O'Grady is out in Los Angeles. She's hearing about a new blame game for those rising prices.

What are you hearing, Kelly?

KELLY O'GRADY, FOX BUSINESS CORRESPONDENT: Yes.

Well, Governor Gavin Newsom has been trying to put the blame on oil companies. Coming up next, we will tell you why.

(COMMERCIAL BREAK)

SMITH: Hitting the road is starting to hit you in the wallet again, gas prices up for 16 straight days now, and lawmakers already pointing fingers at the oil companies.

We will talk with former Energy Secretary Rick Perry about that in just a moment, but first to Kelly O'Grady.

She is in Los Angeles for us with the latest round of pain at the pump.

What's happening now, Kelly? '

O'GRADY: Hey, good to see you, Sandra.

Yes, I mean, of course, people across the country are feeling it, but nowhere more so than California. And you can see it is $6.49 here for a gallon of regular. But, like you said, right, we have been seeing gas prices rise for the last 16 days.

Now, the national average, it's $3.91 today, close to $4 a gallon. That's already 12 cents higher than a week ago. And I want to highlight it's 63 percent higher than when the president took office. And that could get worse, largely because of OPEC's planned production cut of two million barrels per day.

Many, of course, are calling that announcement a slap in the face, after the president visited Saudi Arabia. Prices, oil prices have cooled a bit today, but we are still seeing double-digit growth because of that vs. a week ago.

And one path the administration is considering, to continue tapping the Strategic Petroleum Reserves, not only is it a short-term solution, but those reserves, of course, are intended to be used for disasters like Hurricane Ian, and are now at their lowest low levels in 40 years.

I do want to draw attention to what's going on with diesel prices, because we have now gone over the $5-a-gallon mark, 19 cents higher than a week ago. So that pain that you're feeling is not just going to be when you go fill up your car, but diesel is known as the canary for inflation. And that's because it gets our groceries and our holiday presents to the store.

So this week's inflation number that I know we're all eagerly awaiting won't include the increase at the pump that we're seeing now. But come November, come December, we will start to see the impact of that. And, certainly, if inflation goes up, we will also see the Fed continue to likely get aggressive with rates.

So it's kind of just this snowballing domino effect that we're seeing in numbers like that at the pump, Sandra.

SMITH: Thank you very much, Kelly O'Grady, on rising prices at the pump.

Our next guest is not a fan of what the White House is doing when it comes to the pump.

In a new FOXNews.com op-ed, former Energy Secretary Rick Perry is writing in part -- quote -- "Biden's war on American energy has him begging foreign countries for oil, instead of drilling here."

Rick Perry joins us now.

Very good to see you, sir. Thanks for joining us on this.

Everybody wants those prices to come down. It inflicts a lot of pain on the American consumer. American small businesses are reeling because of this as well. So what is your take? Is this the administration's fault, why we continue to see sky-high gas and oil prices?

FMR. GOV. RICK PERRY (R-TX): Yes, well, happy Columbus Day, Sandra. And it's a privilege to be with you under, let's say, austere conditions in the country because of policies that this administration has been involved with, particularly the oil and gas industry.

They started sending a message on day one, we're going to try to bring the fossil fuel industry to its knees. And they basically are doing a pretty good job of that. They're overtaxing, over-regulating, overlitigating.

And if you want less of something, that's how you do it. You go in and government overtaxes, over-regulates, overlitigates. And that's what this Biden administration is doing, shutting down pipelines, not allowing the offshore drilling, not allowing federal leases.

All of that collectively sends a message to the companies, whether they're small independents or whether they're the big oil and gas companies, that you better be really careful if you're going to go expend monies to explore for and deliver oil to the refineries.

And, as a matter of fact, I think we're about a million barrels last refining in the U.S. since the Biden administration took over. So, all of that together, Sandra, sends a clear message that a lot of this recession that's happening is driven by the cost of energy.

And America was independent for the first time in 67 years in 2019 because of the policies that President Trump put into place. We were producing. We were doing a great job. We were working with our foreign partners. And the supply of energy around the world was in a lot better place.

Europe is going to pay a huge price for their decisions about doing away with fossil fuels this coming...

SMITH: So, let me ask you about how we can fix this problem, because, I mean, this question needs to be put to Republicans who could regain control of the House and/or the Senate in the fall.

So, they're promising they can bring those prices down. What do you do about it? If that refining capacity is offline to the degree that you just described, and there's solid evidence of that, well, does pumping more help or buying oil help or releasing more from the reserves help, if we can't refine it into gasoline?

PERRY: Well, and I think sending messages -- if you want more of something, you incentivize it. It's that simple.

This governing is not rocket science. And so the point is, when the Republicans come into place, they need to use every tool that they have to be able to send the message to the fossil fuel industry, and also at the same time -- and this is a little longer-range process, but send the message to the small modular reactor industry out there that is -- has the potential to really do some good things.

It's going to take a while for that technology to get into place, but it'll be faster than you realize.

SMITH: Yes.

PERRY: So, fossil fuels, small modular reactors, those together can send the message around the world that America is going to get back into the energy business in a big way.

SMITH: Secretary, final question for you.

There seems to be still blame putting on the oil companies themselves, even some -- in some cases, the mom-and-pop gas stations in this country, and warnings to them not to price-gouge. You heard it from the president during the storm, in the aftermath of the storm. You hear it from Gavin Newsom out there in California.

And in my research today, I was surprised to see a White House pool report from you several years ago, 2017, I believe, and you too, during Tropical Storm Harvey, made a similar warning to not price-gouge at the fuel pumps in the wake of the storm.

PERRY: Yes.

SMITH: Why put those warnings out there, if there's not a lot of evidence that that's actually happening? Have you seen that happening? What rendered that warning then? Because we're getting a lot more of those now.

PERRY: And during hurricanes, we always send that message out there that, if you're thinking about, just because of the supply and demand issue, this is not the time to do it.

And I think it's always been, from my perspective, a message that gets sent during hurricanes. But that's not what this administration is doing. This administration is doing it to try to cover up for bad policies that they put into place. There is no doubt that this administration wants to force Americans to quit using fossil fuels and go to wind and solar to power their grid.

And it's just not going to happen. You have got to have fossil fuels and nuclear power to be the baseload for your electric grids. And this administration would rather play politics and blame everybody in the world, instead of looking in the mirror and going, you know what? We were wrong.

Just stand up and say...

SMITH: Well, it's the lower-income, hardworking Americans who are paying the price for it. That is for sure. And those prices are on the way back up oil, closing above $90 a barrel yet again today.

Secretary, great to see you. Thank you very much for coming on the program today.

PERRY: Thank you, Sandra. Good to be with you.

SMITH: All right.

How will gas prices heading higher impact voters heading to the polls? Our panel will debate.

Plus, the rainbow fentanyl scare hitting right before Halloween. Aishah Hasnie on what lawmakers are doing about it.

And why a top Obama economic adviser is now saying a recession is more and more likely. Steve Moore on that coming up.

(COMMERCIAL BREAK)

SMITH: Containing the border crisis. They were used to plug gaps in the border wall in Yuma. Now meet the sheriff looking forward to you seeing them in his area.

And see more on the recession warnings that are ramping up from some interesting figures -- when we return.

(COMMERCIAL BREAK)

SMITH: Four weeks from tomorrow, you will help decide which party controls Congress. And with gas prices spiking and inflation remaining a top concern for Americans, are Democrats worrying?

Let's get the read from Democratic strategist Ari Aramesh and Hadley Heath Manning for the Independent Women's Forum.

Thanks so much to both of you for joining us.

Ari, I will start with you first.

How worried is your party or how worried should your party be?

ARI ARAMESH, DEMOCRATIC STRATEGIST: I am worried. I think the California Democratic Party is worried, although California is doing pretty well in terms of its population voting Democratic pretty steady.

But, in general, national Democrats, especially on -- in certain House races, because Senate, as you know, it's very different. It's a different ball game. We don't have gerrymandering.

But, in certain House races, especially given how narrowly divided the House is -- it only takes very few seats for Kevin McCarthy to become speaker. Gas prices going up hits everybody in their pocketbooks. It hits the middle class, the working class, and even -- unless you're making billions, when you're pumping gas -- and I pumped while I was driving to LAX a couple of nights ago, and I saw $7.21 or $7.29 a gallon...

SMITH: Wow.

ARAMESH: ... which is unheard of. But, again, it's around Beverly hills, and then on the way to LAX right off the Howard Hughes Highway, and that's more towards Inglewood going to LAX. So you don't have an option. You got to pump gas.

Having said that, let's back up a bit. The trajectory of Democrats losing a ton of seats, sort of 1994 style, that's about -- that's sort of forgotten at this point. I think we're going to do a pretty good job in the Senate. Thank you to -- thanks to Republicans for running such poor-quality candidates, from Pennsylvania, to Ohio, to Georgia.

SMITH: Well, let's get Hadley in here.

ARAMESH: But when it comes down to the House, it's a little different.

What's that?

SMITH: All right, so, Hadley, feel free to respond to directly to Ari on that.

HADLEY HEATH MANNING, INDEPENDENT WOMEN'S FORUM: Well, look, if the voters of this country vote on the issues, then Democrats are in trouble, because, in terms of what the biggest issues are, inflation, the economy, energy, gas prices, those are issues where Americans are looking for a change in leadership.

They're dissatisfied with the way things have been going. President Biden made the decision to drain millions of barrels of oil from our Strategic Petroleum Reserve, and that temporarily decreased gas prices. But now they're coming back up.

I think, if he was looking for the political solution, the Band-Aid for this problem, he probably pulled the trigger on that decision too early. But Americans want long-term solutions. They want to know that they're not going to keep paying record high levels of inflation for groceries, for gas and so forth.

And so, if voters vote those issues, Democrats are in trouble. If they vote the candidates, that's another question. It's always a challenge for both parties to get the right people out there, the right messages out there. But, certainly, in terms of the issues, the American people are more in agreement with the GOP right now.

SMITH: Ari, it's pretty hard not to tie this president to the high prices that everyone's experiencing today. And in the wake of those high prices that we're arguably -- and Republicans are making the point -- they were avoidable in the first place.

But this administration seemed to turn a blind eye to inflation. But why do you believe this White House hasn't gone out of its way to show voters that, no matter whose fault it is, that they're going to rein in those high prices, and they're going to start pumping more oil domestically to bring down your gas prices if, in poll after poll, it shows up as the number one concern of the American voter, no matter your party?

ARAMESH: So, two big issues. If people are going to vote candidates and persons, oh, boy, we have got a huge advantage over Herschel Walker and Dr. Oz and that fellow J.D. Vance in Ohio, character-wise, personality-wise, and candidate-wise.

Let's come down to oil. And this -- and it bothers me. It's really rich, actually, to hear from Trump supporters who convinced MBS -- that's the crown prince of Saudi Arabia -- or at least are in a meeting of mind with him. This is the Saudi Arabian government, one of the largest, if not the largest, OPEC producers, to side with the Russians, and decrease oil production, OPEC oil production, to keep oil prices high.

Now, if you're a U.S. ally, you do what helps us right now against Iran and against Russia.

(CROSSTALK)

SMITH: So, you're blaming OPEC for the high oil prices.

Hadley, go ahead.

ARAMESH: These are Jared Kushner's buddies.

(CROSSTALK)

SMITH: You have gotten a lot of time, Ari.

(CROSSTALK)

ARAMESH: These are Jared's bedfellows.

HEATH MANNING: There's going to inherent insecurity for Americans and anyone else who puts our oil and gas and energy future in the hands of international bad actors.

That's the problem in the first place.

ARAMESH: Jared Kushner.

HEATH MANNING: We need to focus on American domestic oil and gas energy production. That gives us not only a break when it comes to the gas pump in our pocketbooks, but that changes the equation in terms of our national security, in terms of international politics.

We need to be independent of some of these relationships that Ari is talking about. We need to be able to say that we are secure in our energy future and our energy prosperity.

SMITH: Well, hey, look...

HEATH MANNING: And the only way we're going to do that is here at home.

SMITH: And this debate was pretty much only about inflation. We haven't even gotten into the border crisis and crime in this country that is running rampant as well, two big issues also that Republicans are trying to bring home to their voters as best how to handle that.

Thank you to both of you. Appreciate the conversation, as we are now just - - I guess we're under 40 days out from Election Day. Hard to believe.

Thanks. Thank you to you both.

No border stop for the border czar. Vice President Kamala Harris taking a trip to Texas to raise money, and that has lawmakers there raising eyebrows.

To Griff Jenkins on that.

GRIFF JENKINS, FOX NEWS CORRESPONDENT: Hey, Sandra.

The border surge showing no signs of slowing down, more than 10,000 migrants in the first 10 days of this fiscal year, and they're coming from a lot for the Central America. We have got that story when we come back.

(COMMERCIAL BREAK)

SMITH: No border stop for the border czar.

Texas Republican Tony Gonzales slamming Vice President Kamala Harris for not visiting the border on her trip to his state over the weekend.

FOX News correspondent Griff Jenkins is live there in Eagle Pass, Texas, with more for us.

Hello, Griff.

JENKINS: Hey, Sandra. Good afternoon.

And it's worth pointing out that Vice President Harris last visited the border last June when she went to a processing center in El Paso. She's never been here, Sandra, and seeing this.

Let me take you up to our FOX sky drone and show you what you can see here. This is ground zero for migrant encounters, last fiscal year, more than 470,000 to the Del Rio Sector. And the migrants are coming from more than 40 countries right now. Over the weekend, some 13,000 migrants across the entire Southwest border from as far away as Somalia, Syria and Iran.

Now, let me show you some video of some drone we shot this morning Sandra. This is a group of about 100 or so at a pecan orchard. They come every morning around the same time at daylight with the efficiency of having perhaps your Amazon package delivered. The Border Patrol, National Guard, and Texas DPS wait for them, process them, and send them along their way.

It's a daily occurrence like clockwork. I want to show you. Take a look at this video we shot with our drone on Sunday, though. This is the large groups we're getting, upwards of 200. In this one, there were 178 total; 21 were children, among them, a woman from Cuba, Sandra, that I asked how much she had paid a coyote to cross the river.

She said $1,500. This is all a part of what Congressman Gonzales really wants Vice President Harris to see and why he's so frustrated that she won't come and see it. Here's a little bit of what Representative Gonzales had to say. Take a listen.

(BEGIN VIDEO CLIP)

REP. TONY GONZALES (R-TX): She doesn't have to visit me. I'm a Republican. I get that. But guess what? Henry Cuellar is a Democrat. Vicente Gonzalez is a Democrat. Veronica Escobar is a Democrat.

She could visit anywhere along the border. The fact is, they have put their head in the sand. They have abandoned -- they have abandoned us along the border.

(END VIDEO CLIP)

JENKINS: And the other thing that she would see is the human smuggling that cartels are profiting on so much.

In the 10 days since I have been here, October 1, when the new fiscal year began, in just this area, they have thwarted 10 smuggling attempts. That, of course, doesn't include the ones we don't know about that successfully may have gotten through -- Sandra, send it back to you.

SMITH: Griff Jenkins, yes. Griff, thank you very much for your reporting on all of that.

Now to a sheriff who is dealing with this crisis firsthand, Cochise County, Arizona, Sheriff Mark Dannels.

Sheriff, thank you very much for joining us.

It's hard to imagine why the vice president, the border czar, in the middle of a border crisis, wouldn't make a stop there to see what is happening firsthand.

MARK DANNELS, COCHISE COUNTY, ARIZONA, SHERIFF: Well, good afternoon, Sandra.

And I agree 100 percent. The impacts these border communities, to include my own, is facing is nothing but negative, totally negative when it comes to public safety, national security, or humanitarian.

You look at the five million that have breached our border, the million got-aways, 1,000 that died on U.S. soil. And then you look at respect -- like in my county. We're pushing 1,000 people been booked in my rural county jail for border-related crimes. These are state violations that have been booked in my jail.

And I can't get this president, this vice president or leadership in Congress to engage us, recognize us, or even act upon it. It is a complete insult. And I agree with the congressman. We have been left abandoned down here.

SMITH: Wow. That's a huge statement. I mean, engage with us. Work with us.

To that point, how much contact have you had with this White House on this issue?

DANNELS: Sandra, I will just say that this is the first president that has failed to meet with sheriffs, our National Sheriffs Association. We have invited them. They have failed to meet with us. It's like we don't even exist.

(AUDIO GAP) four weeks ago to a conference here on the border with sheriffs from all over the country. Not even an answer that we can't make it. They just totally ignore us, first sheriff in history -- first president in history not to meet with this country's sheriffs.

SMITH: Wow.

Just give us a sense of what your communities are dealing with there, Sheriff.

DANNELS: Well, right now, we're putting containers on the border, thanks to our governor, trying to secure our border. We deal with pursuits every day. We deal with crimes every day as a result of this border.

We have 100 percent got-aways in our county on the southeast corner of the state that I deal with. I think we lead the nation, the Tucson Sector, which we're part of, when it comes to smuggling by the cartels, drugs. You name it, we're seeing it here on the border. And it's nothing positive.

It's destroying the quality of life that we should be addressing here on the border that we're being neglected upon. This border is a reality for this country, not just for the 31 border counties. American needs to stand up and unite when it comes to our border in this country.

SMITH: So, Sheriff, we have been showing images of containers lining up, getting ready to put them in place, some already in place, getting hauled in.

To your point about that effort, when you do this, what are you seeing is the actual impact of that? Are they working?

DANNELS: Well, they're still going in place. I know they have already installed them and stacked them in Yuma County, Arizona. Talking to the sheriff out there, he says it's making a difference and slowing them down.

And it sends a message that, absent the federal government, our state governor, our sheriffs in the state that are engaged, that we're going to do everything we can to protect our citizens and, most important, our state in this country. So, shame on the federal government not being a partner with us on this, because that federal border is their responsibility, not the state and locals.

But we're doing their job. And we will continue to do it to protect our country.

SMITH: Well, Sheriff, we certainly sense the urgency in your voice.

If you had the ear of this White House, if they did reach out to communicate, which you said they have not yet, what would be your first request? What would be the biggest resource that you need today, Sheriff?

DANNELS: We need a message. We need a message from this president that the border is going to be secured and there will be consequences for violating our laws in the country. Those that come across our country illegally will be addressed properly.

And we also need them to engage with us. Every -- right now, we have none. And as long as they stay absent to this, the problem is only going to get worse in Texas, New Mexico, California, Arizona, and all other states in this country. It is not a positive thing. We got to have a president that cares about Americans, that wants to protect us all, as his oath of office states and mine does too.

SMITH: To that point, this is no longer just affecting those border communities. It is all over the country experiencing the vast number of people that continue to flow over that border.

Sheriff, thank you very much for joining us this afternoon. Appreciate your time, sir.

DANNELS: Thank you, Sandra.

SMITH: All right. And thanks to the sheriff.

With 29 days to go, the border a top issue on the ballot for Arizona border voters.

FOX News correspondent Rich Edson is reporting on that for us. He's got the latest details.

Hello, Rich.

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

Apprehensions along the Southern border have hit a record high. Migrant encounters are up significantly over the prior year in the Arizona border sectors of Yuma and Tucson. That's according to the latest data from Customs and Border Protection.

In the middle of that, major campaigns in Arizona for governor and U.S. Senate. Republican Kari Lake says, if she wins the governor's race, she will use state power to administer federal immigration laws.

(BEGIN VIDEO CLIP)

KARI LAKE (R), ARIZONA GUBERNATORIAL CANDIDATE: I will issue a declaration of invasion and we will work to stop these narco-terrorists from human trafficking and drug trafficking into Arizona.

(END VIDEO CLIP)

EDSON: Former President Trump held a rally last night for Lake and other Republicans running in the state. Democratic Secretary of State Katie Hobbs spoke with reporters.

She says Lake is spreading conspiracies about the 2020 election. She's also blamed Trump and her own party for the state of the border.

(BEGIN VIDEO CLIP)

KATIE HOBBS (D), ARIZONA SECRETARY OF STATE: Trump centered his whole immigration policy around finishing the wall. And it's not done.

And -- but Biden does need to step up immigration and border security.

(END VIDEO CLIP)

EDSON: Hobbs also called Lake's plan to declare an invasion empty rhetoric that will bring chaos to Arizona.

In Arizona's Senate race, a FOX News poll late last month shows voters found the most important issues in that race as border security, the preservation of American democracy, inflation, and abortion.

Democratic Senator Mark Kelly is trying to defend his seat against Republican challenger Blake Masters. Kelly has broken with Biden, called the border chaos and a mess, and that the administration changing border rules was dumb. Masters called Kelly a rubber stamp for Biden's agenda -- back to you, Sandra.

SMITH: Rich Edson reporting on that for us.

Rich, thank you.

And as parents get ready to take their kids out trick or treating this house Halloween, they are getting a warning from Republican senators: Check what is inside your kids' candy bags.

FOX's Aishah Hasnie on Capitol Hill with more on that for us.

Hey, Aishah.

AISHAH HASNIE, FOX NEWS CORRESPONDENT: Hey there, Sandra.

And you know what? That warning, well, some are now calling that a scare tactic just about 20 days ahead of the midterm elections. But we talked with one mom who has gone through tragedy not once, but twice, and she will -- she's going to tell us all why it's not a scare tactic.

That's coming up.

(COMMERCIAL BREAK)

SMITH: Republican senators are sounding the alarm over the dangers of rainbow fentanyl, as kids across America get ready to trick or treat this Halloween.

To Aishah Hasnie now. She's on Capitol Hill with that for us.

Hi, Aishah.

HASNIE: Hi there, Sandra.

That's right. So about 12 GOP senators have put out this PSA really warning parents out there to be on the lookout for this candy-colored fentanyl, extremely dangerous, especially to kids, as they are now being targeted. They have issued this dire warning. Watch.

(BEGIN VIDEO CLIP)

SEN. MARSHA BLACKBURN (R-TN): The powerful drug cartels are coming after your kids, your neighbors, your students, your family members and your friends.

SEN. STEVE DAINES (R-MT): Even just handling these pills or powders masquerading as candy can kill a person.

(END VIDEO CLIP)

HASNIE: So, the senators say, Mexican drug cartels are targeting kids with not only fentanyl that looks like candy, but also fentanyl powder that's disguised to look like sidewalk chalk.

Now, some in the mainstream media have called the ad a scare tactic, pointing out that Halloween lands just about a week before the midterm election. But it also comes less than a month after a bipartisan group of attorneys general sent a letter to President Biden calling on him to classify fentanyl as a weapon of mass destruction.

Again, these are Democrats and Republicans. And they wrote this: "Enough fentanyl has been seized in the last year to kill every man, woman and child in the United States several times over."

It's scary. One woman who lost her son to a drug overdose back in 2018 and then her 13-year-old cousin to fentanyl last year says this is no scare tactic.

(BEGIN VIDEO CLIP)

DEBI NADLER, CO-FOUNDER, MOMS AGAINST DRUGS: It is not a scare tactic. What are the chances of it happening? Who knows at this point. We're in a new world with the drugs.

We are losing 10-year-old kids, people experimenting for the first time.

(END VIDEO CLIP)

HASNIE: And so that is why we're hearing from these families of victims that are saying, Sandra, talk to your kids. Don't worry about how young they are. Really sit down and have an open, honest conversation with them just to make them aware that just one pill in this situation can kill them -- Sandra.

SMITH: Aishah Hasnie on a really important story for the country. Thank you very much.

HASNIE: You bet.

SMITH: And coming up, the recession warning from a top name in the Obama era and one of the top CEOs in America.

(COMMERCIAL BREAK)

SMITH: Next time you dine out, you might want to be on the lookout for a new sneaky trend, restaurants reportedly serving up airline-style fees on some bills to avoid raising prices.

FOX Business' Susan Li has more on that story for us.

Hello, Susan.

SUSAN LI, FOX NEWS CORRESPONDENT: Yes, so call it fee-flation or call it drip pricing.

If you have eaten out at a restaurant or hailed a ride or even looked at your credit card statements lately, you may have noticed a few extra added charges. And customers have complained that restaurant bills, food delivery, ride sharing, and credit card statements are much more expensive these days.

And that's because, instead of outright raising prices to cover higher costs, businesses are charging you a little more in added fees to cover rising inflation and wages, probably most notable on your restaurant check, with restaurants accused of serving up those airline-style fees, where your final bill might actually be 30 to 40 percent higher if you add up the 20 percent mandatory tips, the extra percentage charges on top for health care taxes to cover workers, state sales taxes, even wellness fees or macroeconomic surcharges, as restaurants cover perks to attract workers.

Now, we know that inflation is still near 40-year highs. The jobs market is still tight, with restaurants and hospitality adding workers last month. And prices are forecast to jump another 8 percent-plus from last year in September. And that data due out on Thursday morning.

And, Sandra, that's a slight cooldown from August, but, still, as you know, historically high.

SMITH: All right, Susan Li on that story for us.

Thank you, Susan.

Former Obama economic adviser Larry Summers now saying a recession is more likely than not in the next 18 months. J.P. Morgan Chase CEO Jamie Dimon echoing that very same point today.

Joining us now to discuss is economist Steve Moore.

I suppose, if you're making that prediction or that forecast, Steve, then you would be someone who is not in the camp that we are already in a recession. I mean, by most traditional definitions, economists say a couple straight quarters of negative GDP, you're in a recession, which we have. But, anyway, I digress.

STEPHEN MOORE, FORMER DONALD TRUMP CAMPAIGN ADVISER: Yes.

SMITH: There are some serious warnings out there nonetheless.

MOORE: There are.

And when I heard those two economists -- well, Jamie Dimon and Larry Summers, say that, I'm like, what do you think we're living in right now? I mean, come on. Over the last nine months, the economy has contracted. But it's not just the loss of GDP. The average family has lost about $4,000 in purchasing power over the last year.

You have seen $10 trillion of losses in the stock market this year. Employers are having the hardest time getting people back to work. I mean, I could just go on with these litany of problems. You got gas prices, Sandra, that now look like they're headed back to $4.50 to $5 a gallon.

And so, yes, we're in a recession right now. And what they're saying was, maybe we will have one a year from now. Come on, it's here.

SMITH: You know, you can't blame these restaurants either, right? They don't want to take the blame for raising prices. They don't want you to sit down at their restaurant and see that their prices went up and their customers to say, hey, what are you doing here?

They want to clearly show that this is what we are passing down to you. We're keeping our prices the same as we -- the best that they can, at least, but we're going to show you what we would otherwise be passing along to raise prices. They don't want the blame for it.

MOORE: Well, this is such an important point you're making, Sandra, because the Biden administration's response to all of these higher prices and this crummy economy is to blame, oh, the oil companies, the gas stations, the restaurants for all the -- the drug companies for raising their prices.

And all of them are saying exactly what you just said, Sandra. Wait a minute. We have got higher costs because energy is more expensive. Food is more expensive. Wood is more expensive. Construction is more expensive. So it all gets passed on to the consumers. We're getting crushed, as I mentioned, $4,000 a year in lost income.

That's like a $300-a-month pay cut for people. And then people said, well, we're not really in a recession right now. It is a cost of living recession. And it's hitting the poor and the middle class the hardest.

SMITH: There's a lot of different ways consumers are paying for this, Americans are paying for this, living paycheck to paycheck, 60 percent of the country, more Americans working two full-time jobs -- full-time jobs to pay for inflation.

I will draw your attention. You have got like 10 seconds when I give it to you, Steve. The markets, the Nasdaq, new low for the year.

MOORE: Yes.

SMITH: Stock market continues to lose steam. Real quick.

MOORE: Yes, $10 trillion of losses this year.

And, look, the way a lot of people are dealing with this, Sandra, they have to get two jobs now.

SMITH: Yes.

MOORE: A record number of people working two jobs.

SMITH: It's an interesting time, big election coming up. We will see what voters decide.

Steve Moore, thank you very much for joining us here today. Good to see you.

All right, thanks so much for joining us. Neil will be back here tomorrow. You can catch me live weekdays on "America Reports" with John Roberts 1:00 p.m. Eastern time.

Thanks for joining us.

"THE FIVE" is next.

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