really want to understand them. so you made raid a book that takes a position that you have long opposed just to understand that book. i treat dissents with real respect as well. >> simon. >> reporter: simon, can you hear me? >> yes. >> reporter: great. obviously inflation is some ways away from target. unemployment though, if you look at the projection for the full year, 4.0%, in february, we are already at 3.9%. quite close so the median projection. are you concerned at all, notwithstanding the very strong jobs growth, that in fact there may be some cracks appearing in the employment market? you talked about a significant deterioration in the labor market being a condition for easing rates. what would liz: hi, everyone, you're watching the "claman countdown" on fox markets and the market is

not spooked by anything happening at federal reserve and dow, nasdaq and s&p at records at the moment after the federal reserve held rates stead i did for fifth meeting in the row and fed chair jerome powell answering questions for reporters. let's go back there live. >> early parts of the pandemic recovery have mostly been resolved. you're seeing high job growth, you're seeing big increases in supply. you're seeing strong wage growth but wage growth is gradually moderating down to more sustainable levels in many, many respects and the things are returning more to their state in 2019, which we can think of normal for this purpose. that's job openings and quits and surveys of workers and businesses are interesting on this and how tight is the -- how easy to find a job and how easy it is to find a worker. those have both -- those surveys have both come down. the labor market is in good

shape. you know, you do see things like the low hiring rate. and people made the argument that if layoffs were to increase that would mean that the net would be fairly quick increases in unemployment. that's something we're watching and not seeing it. of course initial claims are very, very low and if anything tracked very closely and when i say unexpected weakening of the labor market and expect the unemployment rate to, the forecast moving up to what we see as longer unsustainable level and that's just a people's forecast and something that's unexpected and that's where i'll leave it though. reporter: steve matthews with

bloomburg. you mentioned at beginning of the press conference that the committee thought it might be appropriate to slow the pace of asset runoff fairly soon. i'm wondering is, when you say fairly soon, does the committee meet about this again in may in&a decision could be reach that had soon and was wondering it you describe the can she be of what the committee is discussing at $95 billion of caps right now would that be cut about in half or something in that nature? thank you. >> so that is what we're discussing essentially is not discussing many other balance sheet issues and we'll discuss in due course and what we're really looking at is slowing the pace of runoff and not much in nbs but in treasuries and talking about going to a lower pace and i don't want to give

you a specific number and haven't had an agreement or decision and that's the idea. and that's what we're looking at. and the in terms of timing, i said fairly soon. i wouldn't want to try and be more specific than that and you get the idea. the idea is this is in our longer run plans and we may be able to get to lower level and we'd avoid the kind of frictions that can happen. liquidity is not evenly distributed in the system and there can be times in the aggregate reserves are ample and abundant and parts that are not ample, there can be stress and can cause you to prematurely stop the process to avoid and it would be hard to restart we think. something like that happened in '19 perhaps. we're looking at what would be a good time and structure and, you know, fairly soon is words that we use to mean fairly soon.

>> and will there be a discussion about returning to all treasuries balance sheet at some point? >> our longer run goal is to return to a balance sheet that's mostly treasuries. i expect once we're through this, we'll come back to the other issues about composition and maturity and revisit and it's not urgent right now and we want to get this decision made first and then we can when the time is right come back to the other issues. reporter: hi, victoria with politico. can you talk about the outlook of the banking sector might impact the balance sheet plans s and deposits shrinking and seeing turbulence? >> we'll be watching carefully but one of the reasons we're

slowing down, we will soon enough is we want to avoid any kind of that turbulence and not thinking about banking sector per se but we had some indicators and the last time. this is our second time in doing this, and i think we'll be paying a lot of attention to the things that started to happen and that foreshadowed what eventually happened at the end of that tightening cycle where we wound up in a short reserve situation and don't want to do that again. now there's a better sense of what are the indicators and not so much in the banking system as around for example where federal funds is trading relative to the administered rates. where secured rates are relative to the administered rates and those sorts of things. we'll always be watching the banking system for similar signs though. reporter: is it also because you're not sure exactly how the

reserves applied will react once the overnight repo facility drops near at zero? >> well, i think we broadly think that once the overnight repo stabilizes either at zero or close to zero that as the balance sheet shrinks, we should expect and reserves decline pretty close to dollar for dollar with that. that's what we think. reporter: hi, jay powell. jean young with market news. i want to ask about the balance sheet. will you -- you said that starting to taper sooner could get to, get you to a smaller balance sheet size and does that mean you don't have to make a decision on when to end qt at this point and will you be setting up the process for deciding that sooner or will you wait until we're close to the end?

>> sort of ironic that by going lower you can get further and the idea is that with a smoother transition, you won't -- you'll run much less risk of kind of liquidity problems, which can grow into shocks and which can cause you to stop the process prematurely. so that's where -- in terms of how it ends, we're going to be monitoring carefully money market conditions and asking ourselves what they're telling us about reservings. are they -- right now we'd characterize them as abun dent t and aiming were ample and little less than abundant. there isn't a, you know, there's not a dollar amount or percent of gdp where we think we have a really pretty clear understands that we're going to be looking at what these, you know, what's happening in money markets and in particular a bunch of

indicators tells us we're getting close. then you reach a point ultimately where you stop along the balance sheet to run off and you, from that point, there's another period which non-reserves, non-reserve liabilities grow organically like currency and that also shrinks reserves at very slow pace. pace off slower pace of runoff and we'll have this soon and another time where you effectively hold the balance sheet and hold non-reserve liabilities to expand and then that ultimately brings you ideally in for, brings it into a nice easy landing at a level that's above what we think the lowest possible ample number would be. we're not trying for that. we want to have a cushion or buffer. we know that demand for reserves can be very volatile and we

don't want to, again, find ourselves in a situation where there's not reserves and we have to turn around and buy assets and put reserves in the banking system the way we did in 201/20. 2019/20. reporter: hi, nancy marshal again with marketplace. chair powell, you said you're waiting to become more confident that inflation is getting to 2% goal before you cut rates. sum up more specifically what data you're looking at that would give you that confidence? >> sure, so we're most importantly looking at the incoming inflation data and the contents of it and what they're telling us. more confident that inflation is coming down towards 2% and we'll also be looking at all the other things that are happening in the economy and totality of the data

including as we make that assessment and most important thing is inflation data coming in. our target is not inflation but it's wages. we would look to the fact that wanes are still coming in very strong, but they've been wage increases that are saying wage increases have been quite strong but they're gradually coming down to levels that are more sustainable overtime and that's what we want. we don't think that the inflation was not originally caused we think, i don't think by mostly by wages. that wasn't really the story but we think to get inflation back down to 2% sustain blizzard warnings, we'd like to see continuing gradual movement of wage increases and high levels but back down to levels that are

more sustainable over time. reporter: thank you, greg rob from market watch. chair powell, could you say whether there were more officials that wanted to be care and feel go slower than about rates than were in the last meeting? was there that sense of maybe it's smart to wait? thanks. >> i'd put it this way. if you look at incoming inflation data that we've had for january and february, i think very broadly that we were right to wait till we were more confident and i think -- i didn't hear anyone dismissing it as not information that we should look at or anything like that. generally speaking, it does go

in the direction of saying, yes, it's appropriate for us to be careful as we approach this question. reporter: thanks, chair powell. brendan peterson with punch chair news. central bank currency stuff. we've been hearing a lot from republicans in congress about what the fed is or isn't doing in a digital dollar. you've said to congress you were going to wait for approval before the fed does anything and launches anything but folks like house majority whip tom emmer said that the fed is actively researching or hiring personnel for implications of the cdc and >> sure, i'll try harder.

we haven't proposed or coming to a cross-examination we should propoise or anything like that that congress considers legislation to authorize a digital dollar and would take us the ability to do a cbdc or retail cbdc with the public and so we're just a long, long way from that. what we are doing and every major central bank is doing is trying to stay in the fran tiers of what's going on in digital finance and it has many, many different areas. they've become front burner in the last five or six years and we need to be knowledgeable about all that and we have people trying to understand things that are but wrong to say we're working on a cbdc and we

have a lab and will spring on congress in the right moment. we don't. i haven't at all in my own mind made a decision that this is something that the u.s. should be doing. and something we need to understand and we have people who are keeping up with that as part of the broader payments landscape. that's how i'd characterize it. reporter: thank you, mark with bank rate. april 27 is the 13th anniversary since a fed chairman began holding regular news conferences. how important is that higher transparency been in your view both with the proper functioning of the central bank and also an n accomplishing your mission, and is there more that you and your colleagues can do on the transparency front and what might that look like? >> i generally think this movement started, you know, 30

years ago, 30 years ago when some academics positive that a more transparent central bank and public understands your reaction that the markets do your work and react to the data. so it all happens that way. there's been a march towards greater and greater transparency and that certainly chairman advance that had and chair yet and we went from four press conferences a year to eight so now every meeting really is live now. i think that's a good innovation. i wouldn't want to turn it back. we also have done a bunch of other things and we have a annual supervision report, financial stability report. i mean, there's a long list of things we've done. i think you -- nothing comes to mind as desperately in need of doing it and we're very

transparent and no shortage of foc participants speaking to the public through the media and that channel is full i would say. so i think it's generally broadly helped and made things better. reporter: any day you want to put that genie back in the bottle somewhat? >> of course ... not. [ laughter ]. reporter: jennifer with yahoo finance. not to harp too much more on confidence and inflation but you did say earlier in this press conference that the reason inflation data hasn't raised anyone's conference but when you testified before the senate a couple weeks ago you told lawmakers you're "not far from receiving the competence needed on inflation to begin cutting rates". are you still of that belief or not? what are we to take by those words, not far?

>> so let me say my main message at -- in those two days of hearings was really that the chit tee needs to see more evidence to build our confidence and that inflation is moving down sustain sustain blizzard ws towards the 2% goal and building rates that we're more confident and if that's a case, i said that any number of times and part of the main message and repeat that had today in our statement. i to the language you mentioned, i pointed out we made significant progress over the past year and what we're looking for now is confirmation that that progress will continue. we had a series of inflation readings over the second half of last year and were really much lower we didn't overreact as i mentioned but that's what i had in mind. reporter: given that you said pce for february 2.8% the estimate and that we have been seeing pce, core pce coming down

by a percent every month, wouldn't you be at about 2.4% this summer, june/july, to a point where you could cut then? >> well, you know, we'll have to see how the data comes in. we would of course love to get great inflation data and got really good inflation data in the second part of next year and didn't overreact and we said we needed to see more, and we said it would be bumpy and now we have january and february, which i've talked about a couple of times. we're looking for more good data and would certainly welcome it. >> thank you. >> thank you. liz: things that go bump in the night did not spook fed chair jerome powell. rock solid on every attempt to shake him off and push him off, you know, hopefully to push him at least on behalf of some of the questions to alter that 2% inflation target, which for the moment we're above. he repeated multiple times the

2% inflation target is where the fed is squarely aiming. we're looking at full blown record highs and the that's partially why the dough jones is jumping 373 points and s&p gaining 43 points and nasdaq up 192 and russell is loving this. up 34 points or 1.7% and dow jones up 1.6% or 255 points. all right, so this would bring the fed funds rate to 4.6% if there are three cuts. the bulls not racing any time and dow at session highs right this minute up 381 points. that is, i'll repeat it again, a

record. s&p topping the 5,200 level for the very first time. right now we're at 5,221. any gain for the s&p is a record. folks, the number to watch for a record close for the nasdaq is a gain of more than 108 points, we're at a gain of 190 points. there's real action in treasury yields, and the action is south. they are pulling back. okay, the 10-year yield, down 1.1 basis points for the second day from the highest since november and then the two year yield, which most closely tracks the federal reserves policymakers and what they think and what they do, below 4.7% for the second day. look at this pullback of 6 basis points at the moment to 4.628%. gold jumping and jumped again immediately after the announcement. earlier the inter-day around

$2,179,000 an ounce and now a gain of $28. bitcoin is interesting and it's higher. when we say higher, it got a lot higher when chair powell just said, this was all happening as we spoke, he was asked about a digital federal reserve coin, a central bank coin. he has said that's not in the works. he reiterated that, but said we want to be at the frontier of these kinds of things, and he said it's important to move these types of issues to the front burner. there is no secret lab where they're cooking up a digital currency, but he did say very interested in making sure that they are on this case. now, i was looking at bitcoin, if you could just keep it up there. before 2:00 p.m. eastern when the announcement was made, bitcoin at 64,110. okay. now it's at 65,292. take that what you think from it, but i think that's pretty

interesting when the federal reserve chair says we want to be on the frontier. in the meantime, take a look at oil. oil is off the $82 a barrel mark and at $81.34 and this has been slow moved to the downside here. powell was asked about resent hotter than expected inflation reports we've been seeing. the january report in particular, we're talking about cpi and then ppi spooked the markets that day, but powell not spooked. >> the january number, which was very high, the january cpi and pce numbers were quite high. there's reason to think that there could be seasonal effects there. but nonetheless we don't want to be completely dismissive of it. the february number was high, higher than expectations, but we have it at currently well below 30-basis points and core pce, which is not terribly high. it's not like the january number. i take the two of them together and i think they haven't really changed the overall story. liz: joining me now, first on fox business since the federal

reserve decision, morton school profession sore emeritus jeremy siegle. there's confidence inflation is moving back to the 2% target and any of that surprise you and what do you think would move him to start cutting? >> well, liz, he was more doveish than even i thought. i thought he was going to be a bit more hawkish, and i think that's why the markets are certainly moving up. that was unexpected weakening of the labor market and when he uttered those words and saw that you had a shy run on that, the dow and the market jumped. if he's going to be responsive to any weakening, that's what the market really wants and so they like that, not overreacting to the fact it is a slow path down to 2%.

yeah, it was a bullish news conference, and certainly a bullish report. liz: i should say. the markets are charging higher, and i am looking at the vicks. the vicks right now down 5% before the 2:00 p.m. announcement. i'm a nerd, i keep all of these things together, the vicks was just up about 1%. up 1% and now down 5% so clearly the markets absolutely love this. still on track, the so-called dot plot taking the temperature of each of the voting members still shows they believe there will be three rate cuts by the end of this year. do you really think that's going to happen when we have a pretty strong economy here? >> economy. yeah, and by the way, three by the skin of your teeth, actually eight that thought one or less and then nine that thought -- i mean two or less and nine that thought three.

it was really pretty divided. i actually thought it was going to go to just two rate cuts and not three rate cuts, which might have changed some of the headlines, even if just one person changes his or her opinion. i think what's really important that we all remember is they really don't know how these numbers are going to evolve. it is, you know, meeting by meeting and the next meeting is may 1 so, you know, we've got the rest of march and all of april and, you know, then they sit down and make their decision. so don't, you know, pin any special insight that they know exactly where inflation or the economy is going to go. we do see, by the way, that goods prices, sensitive commodity prices. you showed oil, it is certainly down today but other sensitive commodity prices, which have been in almost a year down

trend, you know, copper, iron, and the others, have stopped going down. so that's sort of disinflation is not there. one source that is and he did mention it briefly is that terrible lag rental component of his indexes that he thinks is going to kick in on the downside. he says we don't know when, but we expect that by the second half of the year to push those inflation rates down, which would lead to probably some more rate cuts. liz: so many renters are hoping for that trajectory as well for prices to come down. before we go, jeremy, you've got to tell me because you have predicted bubbles bursting and then they have popped. do you see anything that looks truly like a bubble that is close to popping? >> liz, you asked me the question, i'm going to ask more, is this 1996/'97 on the way to

2000? first ophiology, we're nowhere near 2000 or 1999, you know, i mean the pe ratios of these big tech stocks were 150-200 then and now we've got 30, 35. we're really not anywhere there. could we get there? you know, some people say every 25 years there's a mania cycle that was a 50/50 of the mid 70s and it was 2000s and now we're at 2024. i'm not making a prediction but saying we ain't there now. liz: checking nvidia's farred price to earnings ratio, 36. >> not unreasonable at all. liz: okay, dr. siegle, wonderful to have you. thank you so much. look at the dow, folks. up even 400 points at the moment. we told you earlier, all three majors on track for record closes but by far the best percentage performer and small

and mid caps and russell 2000, there's a lot of experts on in the past and a couple of weeks predicting this, and here we go. we have it up about just under 2% to 2,074, gain of 38 points. let's take it right to the floor show because we need much more post game coverage of this fed meeting. joining me is jp morgan chief market strategist gab retoan toes and andy brenner. andy, today's meeting going into it and the markets were like a coiled spring. here they are. they are like a, you know, shrinky going way sky high; right? >> absolutely, liz. you pointed out and people looking for two rate cuts for this year rather than the three. they got the three back as well as paul was doveish. you mentioned what he said about rents, which i think is key. it's nice to see old college professor jeremy siegel talk about it and he pointed out the same thing so he taught us well.

the fed was somewhat doveish and, liz, one thing that came out this week and not part of today, the state of california issued a revision to number of jobs in 2023, which originally said they've created 325,000 jobs. then they revised that to 50,000 jobs. the fed is looking at back ward and bad information. i think the economy is much slower and i think the number of rate cuts the fed will be surprised that there'll be more than just the three they're predicting for this year. liz: does that then mean they'll be forced to move maybe a little sooner and going into today, the may fed funds future is 99% odds no move and 12% rate and there'll be a cut. tiny percentage and i don't know, maybe the market sees something there. >> not going to it with 8-1 type thing against me. i'm going to go and stick with june. june has been my expectation for the last few months and i'm going to stay there and the fed

has got some kind of lock not to disrupt the election. i don't know whether they really do worry about that or not. i think they do so if they don'o start by june and can move in july and then let the strategists talk about november, september and december. liz: why are equities roaring so sky high right now? >> equities heard everything they wanted to hear and repeat from the december fed pivot which was they're no longer afraid of stronger growth. doesn't mean inflation is going to be knocked off course. they're aware of bumps in the road and next move is a cut and much more responsive to weaker economic data and willing to cut more if need be. that's a per spect set. liz: they up the 2024 gdp forecast and put that up on the screen and went from 2.1, two,

2.4% and it was 1.4%. why don't we see. am i getting that wrong? i thought gdp was 2.4. >> it was 1.4 at december and then up to 2%. liz: yeah, that's what it should be. >> clearly more comfortable that growth is strong and economy can withstand higher rates but there's no reason to be concerned about this. the last rate hike was in and july of last year real plus inflation with higher earnings and expect the fed to be there as growth slows. liz: talking about one month up to the 12 month because those yields are coming down more re-siptously, are they not right now? >> because the fed is there and

going to remain slow, you're going to have six month bills and three month bills, whatever five and three eighths, 540 and seems to me that because i figured i'd get this question today. you need to barbell it and barbell between investment grade to possibly high yield corporates and short rates and they need to look at positive carry and if you can get positive carry, i think you weigh on this. i'm a little skeptical buying ten years at 426, 427, 428. i think the max numb is 3 l 5. . liz: 5.31% and 5.46%. >> those are great yields, liz. liz: why not? >> why not. keep rolling them over. that's what i've been doing. >> i worry a tiny bit about the reinvestment risk and the reason is at the moment, investors are pretty bang on with the fed for this year and next year. the trick is when the fed starts

cutting rates, which we think june looks pretty reasonable, those forward looking rates can fall pretty quickly as it finally becomes clear, we're getting going and eventually rates are lower and extend duration a bit from the t bills into more intermediate kind of treasury notes and treasury bills and that's where you've gotten the most last year and a lot of investors looking a the that as a sweet spot. liz: seeing 5%. >> is it really worth 500 basis points though. >> it also gives you protection in case of a recession to take more risk in parts of the portfolio like stocks and high yield credit. liz: great to see you both. gab rendgabriela and andy. amazing to see the dow up 388 points and that's a record and all time record and get you some individual stock stories that are perhaps driving the broader

market. chipotle mexican grill, the big burrito and stock had a record high after 10:00 a.m. eastern blasting through the 3,000 level for the first time ever. it topped out at $3,023 and now at 2900 and up 3.6% and serving as hot sauce on the stock, mexican food chain board approved a a 50 for 1 stock split and first split ever. it lowers price of shares without affecting the company's valuation and makes them more affordable for those that want to buy the stock. if the split is approved at upcoming annual meeting on june 6, existing shareholders re-xiphoadditional 49 shares for each one they own and if you aren't a shareholder and you want to buy one, price going down to about $56, $58. that's a moving target. investors are breaking up with signa jewelers after engagement ring retailer issued a soft fiscal year sales outlook and

blames diamond discounting at independent jewelers as well as soft valentine's day season. industry data shows jewelers are discounting price of natural diamonds due to the rise in popularity of lab-grown stones. so a decade in, lab growns are starting to be more popular here. signa jewelers down -- signet jewelers down 11.5%. top golf callaway grands trading higher after being halted after denying a report of potential sale of the company. the stock hit a hole in one after a report from a south koreaen newspaper indicating the golf which i am the company may be up for sale and the plan is to spin off the top golf equipment business and sell the callaway golf equipment and apparel business for about $2.98 billion. up next, president joe biden on the ground right now in arizona seeing where close to $20 billion from the bipartisan

chips act will go first. intel's growing semiconductor foundry gets the nod. how will the semiconductor standout bring ship making home to america, grow it and how will it help intel move up along the line that is still growing of ai chip makers. intel ceo pat gellsinger about to step on to the screen and reveal his plans and brad gersner is here and talking about whether it'll be successful kicking china in the chips link and the federal reserve role in keeping you as tech vie rant and in the lead. before any gain on s&p would mark 19th record of the year and seeing a gain here and big one and see what's pushing it and names trying to get it there. well, paramount global, ford

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liz: that is a rally and record s&p and nasdaq at all time records and faked or dreaded dot plot shows federal reserve fishes still expect three rate cuts this year, despite lately we've seen firming inflation and central bank leaving rates unchanged for fifth straight meeting but what is wall street saying about powell's remarks and nonmoves, i guess, charlie? >> i'll say what i said on the show a month ago, the consensus among the wall street fed watchers and best ones on wall street are larry fink -- is larry fink. they're going to they're on schedule and he said this a month ago and others saying too, they're on schedule to do it three times, cut three times and first one in june and then let's see what happens. one thing to appreciate about jerome powell. he always telegraphed and really

worried about the market. fed chairman are not supposed to be worried about the market. be that as it may, he is. that's why the general consensus among people like fink and others, is that the june rate cut of 25-basis points is baked in. he's not going to -- because the markets will go wickedly shout if that doesn't happen. this is borrowing some mayor yak we out of the blue -- wacky inflation out of the blue numbers and rates are at 3, he's still worried about a recession because there's other numbers that show a slow down. june is baked in. obviously if inflation numbers after june look sticky and look like they're rising, all bets are off on the other two. liz: i say two. i thought larry predicted a possible two cuts. >> yeah, he did but said three so there could be three. be that as it may, the june

thing is baked in and gets into the weirdness of jerome powell and again, fed chairs are not supposed to worry about the stock market and worry about other things and not supposed to worry about what we're seeing on the screen. but he does. and he's really worried. if they don't cut in june that there's going to be, you know, armageddon here. i think you see, again, barring something really dramatic, and we've on this show reported this well before anybody else. june cut, smallish, 25. wait and see after that and if he has droughtiers, two more at 25. that's all i have to say about this matter. liz: okay. good. >> she's so happy i'm done. liz: done. >> i want to see explosions go

off. liz: thank you, charlie. breaking news, president joe biden in chandler, arizona, right now after just wrapping up remarks on his investing in america agenda. moments ago the president toured intel's chip manufacturing in the state where the company became the first to receive the long awaited chips and science act money. the $8.5 billion infusion it received from the government will help expand the chandler, arizona, campus and intel's operations in oregon and ohio as well. the biden administration also awarded intel with up to $11 billion in federal loans along with the 25% investment tax credit on more than $100 billion in qualified investments intel makes. it's a monumental day for intel and for ceo pat gelsinger who joining us now. pat, congratulations on finally receiving the grant. i'd love to say it's like having a baby but that's only nine months and gestation of

elephants at 22 months. that's taken white awhile. >> liz, it's been quite the journey and thank you for having me on the show and always a pleasure to meet with you and it's a bit over three years ago i took the job and really started to throw ourselves behind getting the chips act across the line. huge bipartisan support for it and august of '22, signing of white house along with the president and now here we are. liz: where do you plan, pat, to commit the first chunk of it, and how big will that amount be? specifically where would we see it as taxpayers and investors? >> yeah, across the four projects we have here in arizona for refurbishment and new facilities you're seeing behind us and i always like to remind people, these are some of the largest construction projects on earth being building the smallest things that have ever been built on earth and also at new mexico site, which is the most advanced packaging that's

being done anywhere in the planet. it'll be in our oregon site, which is really the research hub, the crown jewel of advanced technology and research. and then of course the silicon heart land in ohio, which will be the next major manufacturing site for us for not the note that one that comes up here but the one after that that'll be a couple of years from now and most advanced manufacturing building what i believe will be the ai chip hub of the nation. liz: i was amused to hear another business network this morning dices the decision about the government giving such a big amount and saying you're building older generation less modern chips and amd and nvidia are deep in new ai chips. somebody didn't do their homework and that foundry signed a deal with microsoft to produce ai accelerators and give us more detail on how modern these chips truly will be and when they'll

start shi shi shipping and whent will they do regarding ai? >> yeah, clearly we're on a journey to rebuild leadership position and as we finish that journey, they'll be manufactured here at arizona that silty and subsequently in ohio. these are the most advanced chips in the world. as people measure these, they'll be below two man a meter chips and well advanced beyond any that's being built giorgini taiwan -- by taiwan or any others you mentioned touchdown catch. the most advanced chips in the world will get built right here. and of course we see in many different areas and pcs they'll provide and networking components and cell phones and ai chips has been like the super charger to the industry right now. we expect we'll be building many of those ai chips not just intel's chips but for entry participants as well. for that, they need the most advanced technology to build the most advanced ai and that's exactly what we're going to do

at these facilities and across the nation. liz: that's pat gelsinger of intel and now bring in nvidia shareholder tech venture capitalist star known for his early stage winning investments among them google, meta, booking.com, snow flake and nvidia. brad gerstner is the founder and host of bg2 podcast, which i love. brad, you just heard pat gelsinger on intel chips award and it's bringing critical semiconductor supply chain back state side. is the chips act something you believe will work? >> i mean, it was great -- first great to be here, liz. i'm a big fan of yours as well, and it was great to hear pat make that case. as an american, you can't help but be excited about on shoring american manufacturing and one of the most critically important areas, you know, that we face, which is super building the next

generation of super computers and chips that power them. but, we have our concerns about the ability of these companies to compete with the tsmcs of the world, nvidias of the world and i don't think it's an either or. i think it's an and. the u.s. should be investing in its own capabilities, but we also should acknowledge accident you know, if you listen to founder of tsmc, morris chang that ran a foundry in texas and they'll tell you the difficulties and we can read about them and they're having in arizona and i don't want a single thread to intel's success. america's ai success needs to be multi-threaded. it should, you know, we don't want to be dependent upon die wan and should be en-- pie wan and encourage tissue taiwan and chip mother and fathering in vietnam, india, korea, other nations that help us diversify our supply chain away from taiwan, a sing the threaded dependency upon taiwan and not place or recreate the dependency

on u.s. fabs that may or may not be able to compete with fabs an the world. liz: i get it, but taiwan semi has not done -- rnd here at all. intel has. this chips act is expected to give money to names like wolf, wolf speed, on, semiconductor. i don't know the list because they're giving it out in drips and drabs, don't we want to get it away from the asian markets, which caused so many problems because they were intertwined with china, which during the pandemic showed they couldn't function? >> 100%. you know, i think the prior administration did a lot. listen, tsmc is building fabs and next generation fabs in arizona in order to reduce this dependency so this isn't a question about whether we should be building fabs in the u.s., it's not a question about whether we should be encouraging fabs to be built across the world in countries that are more politically aligned with the united states. this is really just a question

about intel and intel fabs and, you know, while i wish them luck, part of the reason we're in this problem or in this challenge today is because we didn't keep pace at intel with tsmc and other fab manufacturers and other designers around the world. best of breed chips and fabs in the world in taiwan. we need to make sure we encourage them to be built in a lot of other places, and i hope that intel is successful building them in the united states as well. liz. the ai arm's race and if you believe about every smart person in silicon valley or wall street is generational. it is sort of one of these faze shifts that's unbelievable and nvidia is top holding altimeter and nvidia unveiled blackwell platform and all the chips unbelievably powerful for artificial intelligence, but then you've got amd, the chip makers, kla, you've got asml and

of course as always so many other names. is there a winner emerging -- i'm sure you're going to say nvidia but in that chip world, is there another winner emerging at the moment? >> well, let's say this, if you rewind the clock 20 years ago, there were a lot more chip manufacturers around the world and chip designers around the world. the chip industry itself is consolidated and, you know, in the case of nvidia, they took a bet around parallel computing that nobody else really focused on. it was the ark tech travion green drove gaming and the architecture that drove very limited applications and parallel computing and just so happens it's the architecture that's driving transformer models that sit under all of ai compute. now nvidia managed to not only build an ai chip but a chip that

will replace on the accelerated platform a lot of things we traditionally relied on cpus to build. it's great for america and nvidia is a american company and $2 trillion business and it is the single best chip and it's likely to be the single best chip. there's no big dispute over the course of the next 2-3 years and it's hard to know three years and beyond. i will just tell you this, nvidia not only has the lead today, but it's executing at a higher level than any other company i see including amd, including a6 being built by hyper scalers produced in the intel fabs. i think a market where it's winner take almost all today is likely to evolve into a market that's going to be winner take most. nvidia will continue to be on top of the heat, but i believe the infringing and trips out of amazon in the hunt and microsoft have a6 in the hunt and intel will produce some stuff and amd will do things.

liz: brad, qualcomm, i have listened to amon very closely. they are already trying to disrupt the whole process by bringing these chips, these a.i. chips right to the devices so there isn't a lag time. there is also the privacy. you know how this goes, microsoft explorer owned world, he can employerer and google came in you were a investor in, blew away everybody. third came in can win, can they not. >> it is not a question who went first or second. qualcomm came in on the edge. what we're talking about a we have a trillion dollars of global data centers. think of this as the brain that drives all the world's compute functions. that is the brain before we even have a.i. work flows and work loads on those data centers. that is going to be replaced

because they deappreciate over four to five years. when it is replaced it is likely to be replaced with accelerated compute. on top of this we have step function in the amount of the supercomputer the world wants. nvidia, jenson estimated we're going from a trillion to two trillion dollars worth of replacement and those a.i. work loads today can only be run on in video chips. in the future i expect well have a lot run on the edge with qualcomm chips. apple as teased at least the small language models they want to put on their devices. we're in the very, very early innings here. this is not dominated by any one company for the duration of a.i. liz: did it surprise you apple is in talks with google, alphabet, using gemini, the a.i. platform that they have, generative a.i. platform? that is pretty interesting? >> well you know, liz, you may

have heard us talk on the pg 2 pod the other week about apple what they're doing. i think when you think about apple you have to think about three things. number one they have a megasearch deal today with google, where google reportedly pays them $20 billion to be the default search engine on the apple device. they will also put we speculate a small language model that will allow them to build the world's best personal assistant with memory on the device. think about a siri that actually worked. it would be terrific. in the middle they have what i call generative search. these are companies like open openai or gemini, the user can create videos or ask knowledge graph questions and i think what you are going to see on apple if i had my guess, my sense they talk to all those companies,

openai, gemini and i think they will let the consumers choose. at the end of day apple's north star is building best piece of hardware that thrills their customers and their customers don't want to be hard-wired to gemini. liz: we have a minute left, brad. the federal reserve left rates unchanged for the fifth meeting in a row, 5.25, 5 1/2%. stocks run up pretty dramatically already. it is a backdrop less predictable, risk on. are you starting to feel a little squirrely about so much risk-on behavior? >> i think if you look at the markets today, you know, they're bouncing because they pulled back really concerned that the gdp might be a little too hot, pce, might be a little too hot and we might not get the rate cuts expected in the future. i think today it is steady as she goes. we're in the early phase of the shift. gdp growth expected out of the fed coming just over 2%.

the glide path on inflation looks to be steady but yes we have to be cognizant of price point entry. but let me get this plug in, liz. when you see what is happening in the market today, when you think about the next 10 years of american innovation and ingenuity. it is important we put forward a piece of legislation i'm working on, 401(k) account for every child at birth, to keep them going to be capitalist. liz: got you. >> less than half the people under age of 40 need believe in capitalism, we need them to believe in capitalism. [closing bell rings] liz: brad, we want you to come back with more on that. dow at all-time records. see you tomorrow. ♪. larry: hello, folks, welcome to "kudlow," i'm larry kudlow. so jay powell's fed performance it is the hottest broadway show around. so far he is sticking with the