"the secretary had every intention of remaining because of the progress on national security issues. the secretary did not speak to the president and is unaware of the reason. he's grateful for the opportunity to serve and still believes strongly that public service is a noble calling and not to be regretted." the verse that the state department and some officials here have put out is that the secretary of state spoke while he was traveling in africa with john kelly friday night. it was still unclear what was going to happen today. and then this morning, the secretary found out and firmly found out that the president was going to fire him after the president had sent out that tweet. we haven't heard directly from the secretary of state and we're going to do that any minute now. i'm sure that is one of the top questions that he will take if he takes questions. the president mentioned this morning on the south lawn of the white house there were policy differences between him and his secretary of state. the president mentioned the iran nuclear deal. that was one of the top policy

issues. the secretary of state had been pushing the united states and the administration to stay within the iran nuclear deal, to work within that frame work. there's been many reports, we've been hearing plenty from initials saying the president wasn't all that happy with the push to stay in the iran nuclear agreement. there's other policy issues when it comes to qatar and russia. when the secretary was on his way back from africa, he said a much more powerful for russia against a nerve agent to attack a former spy in the united kingdom than the white house had. so the policies were out in the open throughout the secretary of state's tenure here. the transition from here, we've heard from state department officials that the secretary will be transitioning out once he officially does so, the deputy secretary takes over until the senate confirms the nomination of mike pompeo or moves forward with somebody

else. >> in regards to the timeline, is it true that the secretary of state cut short his trip to africa in order to return, which would give some indication that he knew something was come something. >> right. we heard this weekend that the secretary of state had missed a day and cancelled a day of his schedule while traveling in africa. the reason the officials gave is the secretary wasn't feeling well. he are resumed his schedule the following day, returned a day early. according to the state department, he came back to washington because he had a number of briefings here, he wanted to work on the north korea-south korea issue and he had a hearing scheduled for thursday. that on top of the fact that he hadn't been in this building at the state department headquarters for some time, he wanted to cut the trip short. given the time line on this, he returned at 4:00 a.m. and five hours later, the president of the united states tweets out that he's replacing the secretary of state. it's suspect why he's here

early. >> stay with us here. i want to bring in bret baier, the anchor of "special report" and he's joining us today. we're waiting for rex tillerson. he's going to take the podium to give his remarks. now he's the outgoing secretary of state. we haven't talked much about the replacement yet, mike pompeo. bret, you had an interview in september where you talked about this policy. >> yeah, it was the regan defense forum. it was circulating that rex tillerson would be replaced by pompeo and that possibly senator tom cotton was being talked about as somebody that could go to cia. following up on that story, i asked him as the first question in a forum with the director of cia pompeo and former director leon panetta about that position. he kind of laughed it off and said he was going to work hard

at the job he currently has, a lot of trust that pompeo has with this president. he briefs him and has briefed him all the time. they established a close relationship. >> dana: i wanted to ask you about what rich edson brought up. there was tension with rex tillerson from the very beginning. rex tillerson always said that he was not a creature of washington. he didn't understand it. he didn't really fit in there and he wore that as a badge of honor. on the policy standpoint, when it comes to the iran deal, there was, as i understand it, differences from what the president wanted to do and what rex tillerson is trying to do to thread the needle, to see if he can keep the europeans on board but meet with what the president wanted to do, which is to drastically change the deal that obama signed. is that at the heart of this? >> it's one of the issues that is a tension. the president mentioned it. the iran deal is on its last

legs. if you look at the people in key positions here, you have nikki haley, who is advocated for the u.s. to pull out. mike pompeo has been the same since being on the intelligence committee. he has all along said there's no positives to the iran nuclear deal. it's only jim mattis of defense that has suggested that the u.s. stay in it. it's a big, big issue. i want to point out on the time line, here's a call from the white house chief of staff as we understand it, john kelly, on friday to a traveling secretary of state that he should resign or before he comes back, he's going to be fired. so he knows that. so i would look at that press briefing on that plane very carefully. because what he said there, he says it with the knowledge that he's hours away from leaving this job. >> dana: it's interesting in some ways because it was rumored that he would leave. i wonder, brett, i'm going to

ask the team if we have enough time as we wait for rex tillerson, he's going to speak at the state department for the first time today. we're going to hear from him. i wanted to ask about the possibility that there might be other national security personnel moves. take a look to former u.n. ambassador john bolton who was interviewed by bamaria bartirom over the weekend. >> there's speculation that you would be offered a job. are you readying to take that job? >> i never discussed that subject. i'm very boring whenever the personnel issues get raised. it's a longstanding view of mine not to discuss it. >> dana: so brett, i'm going to put that in washington speak. yes, he's under comfortable for the job. you think this is a move also -- he's very strong and tough on the iranians and north korea. could you foresee something like this happening and getting all of this changed around before these deals come to fruition?

>> i do think there's more changes ahead from talking to folks around town. several reporters are hearing the same thing. maggie hayward with "the new york times" and others have tweeted something similar. i think there's a number of people that are in positions that have been talked about being changed out, h.r. mcmaster. john kelly, chief of staff has long been -- weather he's going to stick in or not is really a question. i think that this president does seem like he feels emboldened by his positioning now and perhaps this tillerson move is the beginning of trying to reshuffle the deck. >> it's almost like trump 2.0 in the second year. rich, if you stay with us.

servants. i read there was some relief at the state department, that there would be new leadership. what are you hearing? >> a lot of the frustration had to come in a couple ways when it comes to what this administration and what the secretary of state were pursuing here at the state department. first off, the administration was calling for a 30% budget cut here. more than 30%. there were also -- also a hiring freeze here. there's a tough time for career diplomats to move within certain positions. they have frozen a lot of transfers. so there's plenty of people in the state department that are not happy about that. people in the state department that are not happy about the fact that there's many top positions nominated?

does that process begin over again? so there was frustration with the state department called and the secretary called the redesign here, what they were doing with personnel, what they were doing things when it came to the career people and even the political positions that were left unfilled. yes, perhaps those people see a ray of hope with rex tillerson leaving but so is the trump administration. it's unclear if mike pompeo will have more luck getting more appointees here and conducting diplomacy. >> dana: bret, the management at the c.i.a. has gone swimmingly in the first year of the trump administration. she has a very good reputation with career officials. he designated his deputy, gina haspel. she would be the first woman to run the cia.

quite a significant accomplishment. her nomination may not be without controversy as she is already being pillaried in the press. she worked in many administrations including administration of george w. bush, which i also served. she was involved in a very tough process of having to interrogate potential suspects as the war on terror was underway. your thoughts about her confirmation hearing coming up. >> it's going to be bumpy. there were democrats out calling her the queen of torture. obviously a -- she was in charge of interrogations. you're well-aware of that. the policy is what the policy is. this is not something that scares president trump from saying that she's going to be a perfect cia director.

and as you know, inside the intelligence community often, people that have been in the intel community for years and years and years are more preferred in those top jobs because they know the system. as you get ready to see the secretary state here. >> dana: we'll listen to rex tillerson. >> i received a call today from the president of the united states at a little after noontime from air force one and i've spoken to chief of staff kelly to ensure that we have clarity as to the days ahead. what is most important is to ensure an orderly and smooth transition during a time that the country continues to face significant policy and national security challenges. as such effective at the end of the day, i'm delegating all responsibilities of the office of the secretary to deputy secretary of state sullivan. my commission as secretary of state will terminate at midnight

march 31. between now and then, i will address a few administrative matters relative to my departure and work towards a smooth and orderly transition for mike pompeo. i'm encouraging my policy planning team and undersecretaries and assistant secretaries, those confirmed, as well as those in acting positions, to remain at their post and continue our mission at the state department and working with interagency process. i will be meeting by members of my front office team and policy planning later today to thank them for their service. they have been extraordinarily dedicated to our mission which includes promoting values that i have viewed as being very important. for the safety and security of our state department personnel,

accountability, which means treating each other with honesty and integrity and respect for one another. most recently in particular, to address challenges of sexual harassment within the department. i want to speak now to my state department colleagues and to our interagency colleagues and partners at dod and the joint chiefs of staffs. to my service officers and civil service colleagues, we all took the aim oath of office. whether you're career employee or political appointee, we're all bound by that comment commitment. to support and defend the constitution. to bear true faith and allegiance to the same. as the state department we're bound together by that oath. we remain steadfast here in washington and in posts across the world.

many of whom are endanger situations without their families. the world needs self--less leaders like these. ready to work with long-standing allies, new emerging partners and allies who now many are struggling as democracies and in some cases are dealing with human tragedy, crisis of natural disasters, literally crawling themselves out of those circumstances. these are experiences that no lecture hall and an academic environment or a think tank can teach you. only by people going to the front lines to serve can they develop this kind of talent. to the men and women in uniform, i'm told for the first time in most people's memory that the department of state and the department of defense have a close working relationship where we all agree the u.s. leadership starts with diplomacy.

the men and women and uniform under the leadership of secretary mattis and general dunford protect us as americans and our way of life daily at home and abroad. as an all-volunteer military, they do it for love of country, they do it for you, and they do it for me. and for no other reason. as americans, wore all eternally grateful to each of them and we honor their sacrifices. the rewarding partnerships in place is that you can get things done. i want to give recognition to the state department and our partners for a few of their accomplishments under this administration. first, working with allies we exceeded the expectations of almost everyone with the dprk maximum pressure campaign. with the announcement on my very first trip as secretary of state

to the region that the era of strategic patience was over and we commenced the steps to dramatically increase not just the scope but the effectiveness of the sanctions. the department undertook a global campaign to bring partners and allies on board in every country around the world with every embassy and mission raising this to the highest levels and every meeting i've had throughout the year, this has been on the agenda to discuss. the adoption of the south asia strategy, the tool to compel the taliban to reconciliation and peace talks with the afghan government. finally equipped our military planners with a strategy which they can execute as opposed to a succession of 16 one-year strategies. this clear military commitment attracted the support of allies broadly and equipped our

diplomats with a whole new level of certainty around how to prepare for the peace talks and achieve the final objectives. in other areas where progress has been made, much work remains. in syria, we did achieve important cease fires that saved thousands of lives. there's more to be done in syria, respect to achieving peace as well as stabilizing iraq and seeing a healthy government installed and more broadly in the entire global campaign to defeat isis. nothing is possible without allies and partners though. much work remains to establish a clear view of the nature of our future relationship with china. how shall we deal with one another over the next 50 years and ensure a period of prosperity for all of our peoples free of conflict between two very powerful nations.

much work remains to respond to the troubling behavior and actions on the part of the russian government. russian must assess carefully as to how their actions are in the best interests of the russian people and the world more broadly. continuing on their current trajectory is likely to lead to greater isolation on their part. a situation which is not in anyone's interest. so to my colleagues in the state department and the interagency, much remains to be done to achieve our mission on behalf of the american people with allies and with partners. i close by thanking all for the privilege of serving beside you the last 14 months. importantly to this

government with your tax dollars. all of us we know want to leave this place as a better place for the next generation. i'll now return to the private life. god bless you and god bless america. >> dana: that was outgoing secretary of state rex tillerson giving remarks just hours after president trump fired him and replaced him with mike pompeo of the cia who will now have to go through a senate confirmation. i want to bring back bret baier, the anchor of "special report" and karl rove, the former deputy white house chief of staff. both join me now. the secretary saying that he will be there until march 31 until that time a deputy

secretary state jake sullivan will take over. he talked several times about honesty, integrity and respect for one another and acts of kindness, he which seemed sincere. but i could detect some real disappointment in his voice. this is a man as he admitted was need to get our fbi a creature of washington but seems that he was affected by his service in the last 14 months. your thoughts. >> yeah, i was struck by the tone, the same thing. the pickup. he hands over the reins to the deputy secretary tonight. but he will be staying around to finish up things until the end of the month. you do sense in this statement and overall, it's important to remember, that these people don't have to serve. they're serving at the request of the president. here's a former ceo of exxon that came recommended to president trump by bob gates, former secretary of defense, former cia director, by former secretary of state condoleezza

rice. he was a man that trump respected greatly in part because of his job at exxon. his dealings around the world. they never really gelled from the beginning. it was clear the tension was there. in his voice there, you heard somebody that perhaps didn't want to leave now. he had things to do yet on the agenda. that's the feeling i got from various officials behind the scenes. >> karl, i believe you know rex tillerson from your time in texas where rex tillerson served as ceo of exxon. your reflections on his statement just now. >> well, i thought it was very warm and a personal statement ant his service. you could tell he was affected by his time in government. he developed enormous respect for the men and women that not only man the department but work in concert at the defense

department. you can tell high school there was a little bit -- it was subtle but nonetheless, i got a call friday, the president called me from air force one today. no mention of the tweet this morning that emerged obviously hours before he got called by the president. i detected a little note of that. you know, looking forward, this is a -- we have a big meeting coming up in may. the confirmation battle for mike pompeo is going to be a difficult one. it's going to take time. >> dana: why do you think it will be difficult? he was confirmed to the cia. >> first, the paper wouldn't be hard. you have to update this massive amount of paperwork. every one of the senate members will want to have a courtesy visit. they'll want to ask him questions during those visits and is customary, they're going to be some requests to follow up for him to respond with a

written -- with written responses to interrogatories. my sense is the democrats will use this as an opportunity both during this phase and during the hearings to ask tough questions of the perspective secretary of state on iran and syria and north korea and trade and russia, china, wikileaks, his tenure at the cia. these are not going to be softball questions tossed up to you know, make sure that everything gets on the republicans. the democrats will use this as an opportunity to make mike pompeo and the man that nominated him bleed. they're going to be asking tough questions. pompeo is very smart, harvard grad, u.s. military background. great member of congress before. he's going to have to bring his a game to this confirmation fight. >> dana: interesting, bret, with rex tillerson at the podium, tipped through the accomplishments that are not rex tillerson's accomplishments. they're accomplishments of the

trump's administration including maximum pressure on north korea which has led to this possibility of talks between our countries, the south asia strategy, trying to confront china, certainly the attempts to and the success in eradicating isis from that area. he talked about china and putting them on notice about how the united states wants to deal with them in the future. russia was also a part of that. in some ways, the trump administration as it ticks through its accomplishments in its first year, they owe some part of that to the leadership of rex tillerson. >> that's right. i don't have a white board but i agree with everything karl just said and ticked off there about the successor, mike pompeo, have a challenging time. i think rex tillerson would tell you that he did -- he met donald trump when he accepted the job. that was the first time that

they had talked. you know, the relationship just didn't gel over time. sometimes administrations and presidents like having that, an adviser that thinks differently. this president values i think more than most loyalty and kind of being in sync as he mentioned today on the south lawn. the reason that i say that pompeo might have a challenge is more the democrats to make a stand and to make a different point on various issues rather than pompeo not being up to the job or field questions. >> dana: and the democrats are complaining that the trump administration doesn't have their ducks in a row with diplomacy and having enough people there and et cetera. it would seem politically foolish to try to stop pompeo if that's what they're wanting to argue. >> i think that's right. but who will consider -- who

will say that will stop them? the administration has been slow to move on a lot of these appointments to the state department. but even the one they moved on have been slow-walked by the democrats. but yeah, look, it's going to be a tough confirmation. i suspect he will be confirmed but it won't be without difficulty and certainly not done before may. >> dana: bret baier and karl rove, if you can hold that thought. we would like everyone to stay tuned to fox news channel and continuing coverage of this story. i'm dana perino in new york. >> and we're back with bret baier and karl rove. just after rex tillerson arrived at 4:00 a.m., he cut his trip to africa a couple days short to return because he knew that this was coming because we know now that chief of staff general

kelly, john kelly, called rex tillerson and said you need to come home and this is happening. again, i go back to this idea that it was rumored to be a long time and coming. i got the feeling that perhaps rex tillerson for as frustrated that he may have seemed with washington, not with president trump, but with washington that he was getting a hang of the job. >> yeah. you got that sense from people around him. who privately said, listen, rex is not leaving unless he's fired. he was getting -- he was planning trips, he was going on trips, seeing success from meeting with various officials around the world. despite the distance with the president and they apparently did not talk that often, that i think that he was feeling like he was going to be sticking around. that distance however really showed itself on the north korea announcement that had this secretary of state out of place. what i was saying before the break there is that i think gina

haspel is going to for cia director is going to have as bumpy if not bumpier a ride in confirmation. not because of democrat against lone but some republicans that will bring up past interrogation techniques and how the program is run. >> dana: she will have very good answers on that. karl, i remember when there were could be tries that tried to show that there was daylight between. bush and condoleezza rice. they thought it was a strategy and they wanted to cut the secretary of state out. how important is it going forward and i think that mike pompeo and president trump have this to show there's no daylight between the two? >> really important. pompeo has a big advantage here as the director of the c.i.a. has personally briefed the president on a regular basis. i don't think he does it every

day. the daily brief is provided by pompeo. so he and trump have spent time together. if we know one thing about president trump, he fixes in on an opinion and stays on that opinion as long as the behavior continues. he and pompeo hit it off. they continue to be together and that builds a bond of trust. that will serve the new secretary well after he takes the helm at the state department. >> knowing how to brief the boss is one of the keys to success listening. brett and karl, thanks for joining us. >> dana: so the meeting between the president and kim jong-un is on the agenda. how will the latest white house shakeup approach it? tom cotton will join me with his take.

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>> dana: fox news alert. this is live at san diego where air force one just arrived. the president is set to review prototypes for the border well. this comes as rex tillerson bows out as secretary of state. >> it's incredibly important that a nation speak -- that an administration from diplomats to military folks, to the president themselves, speak with one voice. it's very important that that happens. this administration has not shown the capacity not to undercut itself.

>> dana: joining me, senator tom cotton. thanks for joining us today. one of the favorite things to do in washington is to think about who might take what job. it was rumored for a while you were under consideration for the job as a cia director but perhaps they thought you were too valuable in arkansas as a senator. your thoughts on the new announcement today that mike pompeo will be going to the state department and gina haspel will be nominated at cia? >> dana, good to be with you. i'm very happy to be serving the people of arkansas in the senate. i heard secretary tillerson's comments. i want to commend him for his gracious remarks. he's a patriotic american and fine christian man. i think mike will be a great secretary state. i'm very close to mike from our time in the house together and

our work together as a member of the senate intelligence committee and mike as the cia director. we met gina haspel in some of our travels. i think she was a great chose for deputy and the universal respect she commands in the cia to include from some of the obama intelligence officials goes to show what good hands the cia will be in. >> dana: she will be the first woman to run the cia, which is quite a remarkable achievement. listen to me. this is something that senator john mccain put out earlier today in regards to her. she said the torture of detainees in the last decade is one of the darkest chapters in american history. miss haspel to explain the details during the confirmation process. it's inevitable that this topic will come up again even though i think that one, she'll have good answers for the questions, legality, i don't think is the question.

the program has changed drastically since then. is this something that should hold her up? >> no, you're right. but it will come up. gina has included that she will do it. it's important to know that micha michael morell was in charge of the review board in the cia and cleared gina of any wrong doing whatsoever. michael morell supports her nomination as does jim clapper, barack obama's director of national intelligence. that just speaks to the respect that gina has within the intelligence world and why even though it might be a short term or quick move to move mike pompeo to state department after 14 months at the agency, the agency is going to be in very capable happened as the deputy is elevated and someone who has been doing this for more than 30 years. >> dana: all right. senator tom cotton, thanks for joining us on this busy news day. we appreciate it.

>> thanks, dana. >> dana: president trump just landing in california. his visit comes amid controversy over the state's immigration policies. the justice department suing california over laws that limit state agencies from cooperating with federal immigration officers. let's bring in xavier basara, california's attorney general. so the president just landed. the first thing he will do is look at prototypes for the border wall. i know you filed many suits against the trump administration. why now since the walls were authorized in the clinton administration, put forward in the bush, obama and now president trump. what is different with these walls from before? >> dana, thanks for having me. secondly, we've always called for border security. building walls is a medieval technology that doesn't have a

place in the 21st century. we have better ways to apprehend people than to try to put up walls that we've seen can be surpassed and don't provide the protection that we need. we sued the trump administration because the trump administration doesn't have the legal authority to build the wall that he's proposing nor does he have the money, by the way. we're prepared to go to court and make the case that we believe that the institutions of our government, the courts will once again show that the president has acted outside the law. >> dana: we'll let the court know what happened there. on this other issue on sanctuary cities and the like, the administration says and ice, the authority says, that they're trying to deport criminals and california is trying to get in the way of that. you're the chief law enforcement officer. how do you respond to them when they say they're trying to enforce immigration law and california is trying to block it and it's a public safety issue

from a federal perspective and from a local one? >> well, they're half right, half right. they're trying to deport criminals in some cases. we support their effort to deport anyone trying to commit crimes. they're wrong saying we're getting in the way. we're telling them that they have the right as the federal government to enforce immigration laws. they don't have the right to tell the state of california that they must use its law enforcement locally and at the state to do the job for them. we respect that they want to do immigration enforcement. they have to do immigration enforcement. they don't have the right to tell us to do it for them. that's the whole crux of this case. we don't get in their way to do immigration enforcement as long as they abide by the constitution. they can't get in our way to do public safety under the constitution. >> dana: what is your position, sir, on the oakland mayor, when she gave the alert to some of

her citizen there's in oakland that there was going to be an ice raid. the attorney general of the united states, jeff sessions, thought this was out of order. your position on that. >> well, we just heard today the ice spokesperson there in san francisco has quit his job because of the misrepresentations by the folks at the department of justice and homeland security portraying the ice actions. so i think really attorney general sessions, the department of homeland security, ice director holman have to explain themselves because they apparently were misrepresenting the facts. >> dana: i understand -- >> the truth that we have in california, we here are trying to protect people from crime. we respect that the federal government has the role of trying to enforce immigration laws. we allow them to do that. >> dana: what about then -- that will be disputed by james

schwab, the spokesperson from ice. i wanted to ask you a last question. i have many. but i'm curious about what you think about your chances in court. i know you've tried to move the case from sacramento to san francisco in regards to this lawsuit with the united states government. i wonder why you've tried to do that and if you think you would be more successful in this case given that during the obama administration the obama administration very successful getting the supreme court to tell arizona they couldn't do their own thing on immigration. why should california be any different? >> first, dana, we believe that the current case that we have on very similar issues that already is pending san francisco is the proper place to litigate the second case. shouldn't have two cases similarly litigated by two different federal courts next to each other. so makes sense to consolidate the cases. but secondly to the point about the crux of the case, in

california our laws, our state laws are not in conflict with federal law. they work in concert with federal laws. that's again, proof that we let the federal government enforce the law. what we're going to find is that the federal government is trying to jump over the tenth amendment to say that we must do what the federal government wants us to do with our law enforcement officials. that shouldn't be the case. the difference between the arizona case that you cited is one where arizona tried to implement immigration laws as a state. it doesn't have the right to do that. >> they said that arizona put -- >> we're enforcing our public safety laws. >> dana: the supreme court said arizona can't increase legal issues or penalties, but why should california be able to decrease it? that's what i'm wondering how the court would rule differently. >> no, let me explain. arizona tried to enact laws that

don't deal with immigration specifically. the states don't have the right. none of the states have the right to enact laws dealing with immigration. that's a federal authority. so arizona's laws were overturned. so we're enacting laws that deal with our public safety officials here and how they conduct the public safety. we're in the public safety business, not deportation. we don't interfere. the federal government can't tell us we should do their job for them. that's the difference between the case the state lost in arizona and here we say you have the right to do that but we have a right to decide how our law enforcement officials at local and state level administer public safety, not the federal government. >> dana: thanks for joining us.

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>> dana: president trump firing rex tillerson and nominating cia director mike pompeo to replace him at the state department and critics already have something to say. >> he's someone who has tortured in the past. i don't think he's the type of leader for secretary of state. >> sam cane is for the 12th district and served in south korea. tim, you know mike pompeo. you think he's well-suited to the job. you disagree with kirsten gillibrand? >> oh, yeah. he's the right person for the job. today is a day of celebration for the whole country. we have a man that will go into the secretary of state's position who is smart, who is close to the president, understands him and understands

the world and the threats we face. this is assembling the dream team on foreign policy. >> and rex tillerson was not a part of that? >> no. i don't think the chemistry was there. >> dana: there's something to be said, as i said to karl rove, showing there's no daylight. >> and can i add, he's going to be the second secretary of state for this president. reminds me of two people that i worked with, george schultz was the second secretary of state for president reagan and conde rice was the second. and there's some good history there presidents finding who they want there. >> dana: one of the things that mike pompeo has to deal with, the talks with kim jong-un and president trump. and you have written about the korean peninsula. you think we're well-positioned to maintain troop there's?

>> yeah. our troops have been there since 1950 and have been one of the great success stories for the united states and the world and how allies can work together to preserve the peace. whatever we do in south cry has to be in concert with what our allies want to do. we have a man on the job sensitive to that to protect the united states and our allies in south korea. >> dana: thanks, we have a special election for you and one -- >> assuming we win may 8. >> dana: thanks, tim kaine. and the wait house shakeup continues as the president replaces gary cohn as the chief adviser. we'll tell you who it is. which is the only egg good enough for my family?

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to make more staff changes. the president confirming he's strongly considering larry kudlow to replace larry cohn as chief economic adviser. cohn opposed the president's plans for tariffs on steel and aluminum. >> i'm looking at larry kudlow very strongly. we don't agree on everything but we agree on most. i want a divergence of opinion. he believes in tariff also as a negotiating point. >> dana: gerri willis joins me now. how are the markets react something. >> we've been up and down. they don't like the fact that there's so much in and out at the white house. they're concerned. but larry kudlow, when an interesting name to be popping up. this guy is probably better known than any other candidate could be because he had a nightly tv show and he talked

about his views on the politics and the economy and he agrees with the president on many issues. he advised him on tax cuts and immigration, a big agree. when it comes to tariffs, that is a big question. he calls them prosperity killers. >> that was gary cohn's issue. >> it's hard to find a bona fide economist that likes tariffs. kudlow has called them prosperity killers and could cost five million jobs in this country. think about that. the president today saying he changed his mind. i guess we have to wait and see. kudlow big trickle-down guy. believes capitolism is a solution to all problems. >> and one of the things that is a benefit for him, he knows how a white house works. you don't have the get up to speed time. >> he worked for ronald reagan. >> dana: indeed. i wanted to ask you about this other report. i read about it in the "wall street journal" showing

disparities between corporate ceo and their employees. what are we learning about? >> so dodd frank made it require that 50 of the biggest companies had to say here's the median employee pay and here's how it compares to the ceo. humana, big insurer. median pay about what it is across the country. $57,400. the ceo make 19 million. that's 344 times what the median employee makes. another example here. they're really unstruckive. median ploy year makes $19,000. that's because most of them are there brazil. the ceo makes $7 million. 356 times higher. the biggest disparity at marathon petroleum. the ceo makes 935 times higher than the median employee. most of those folks are pumping gas or working in marathon

stores. >> dana: i didn't know that came from dodd frank. >> a requirement that more of them have to do it. it will be interesting. >> dana: thanks, gerri willis from the fox business network. the third nor'easter in 11 days slapping the northeast. the coast of maine and new hampshire and much of massachusetts under a blizzard warning. the snow bringing heavy rain and snow and causing tens of thousands to lose power. parts of new england could get two feet of snow. the storm is expected to last through most of today disrupting road and air travel. so a good deed caught on video goes viral. why one man stopped traffic. up next. rd. we're the number one dairy and apple producers in the eastern united states supported by innovative packaging that extends the shelf life of foods and infrastructure upgrades that help us share our produce with the world. .or .

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no, please, please, oh! ♪ (shrieks in terror) (heavy breathing and snorting) no, no. the running of the bulldogs?

surprising. what's not surprising? how much money aleia saved by switching to geico. fifteen minutes could save you fifteen percent or more. ♪ >> dana: video of a man helping another man cross ago street is going viral. it happened sunday in griffin, georgia when an an elderly man with a walker tried to cross the street. justin jackson drove past and saw what was happening. the good news is he

immediately pulled over and stopped traffic and the man then crossed safely to the other side. another driver captured video of it and posted to facebook where it's been viewed hundreds of thousands of times and hopefully inspiring others to do same things. >> shepard: 3:00 state department where secretary tillerson has just spoken after the president fired him. the source tells fox news secretary tillerson got the news from president trump's twitter account. an aide says secretary tillerson does not know why he is gone. now that aide is are fired. while president trump says tillerson should not have been surprised. >> rex and i have been talking about this for a long time. we got along actually quite well. but we disagreed on things. >> shepard: the president has now nominated the cia director to replace secretary tillerson and promoting a woman with a controversial past to run the cia. we'll check out all of those moves, explain how they