>> marshall gains for the stock market. while the dollar keep strengthening. "bloomberg markets" starts now. kriti: let's dive into the price action here. we see green on the screen and we are up almost .7% when it

comes to the s&p 500 but the stock market has since paired the gains. we even went to the negative territory, only a .2%. it is the vix catching my eye, a 29 handle on the volatility gauge. we know from the last six sessions we see 30 become the market, the resistance level if you're into the technicals, between 29 and 32 becoming the short-term range for the volatility. we will keep an eye on that. anything above 30 might signal more conviction in one direction or the other. let's talk about the bond market. 275 on the tenure and we will keep an eye on that, especially as we continue to see the dollar strengthened. even though it does not have the yield push it has right now. let's dig in more into the market story and bring in abigail doolittle. abigail: we do have arc kids super chappie -- super choppy. last week for the s&p 500, the big question is, are we ever going to get some sort of bounce? i can march we had one.

if we look at the start of the s&p 500, you can see the s&p 500 rolling over down about 15% into the march low and then roughly a 12% ounce up that happened as the other side went from oversold to overbought. so down down down. there is the brief market last friday on an intraday basis. it seems likely this year the s&p 500 will drop down to let's call it 3500, 3400 but in the near term, this range makes the case you can see a bounce up toward 4500. that number comes in as time goes on. it is also supported by the idea the rsi not while oversold is near the bottom, maybe they will have the buyers coming but it seems we need a lack of bad news and maybe even good news. kriti: abigail doolittle, thank you as always. for more of today's market moves and where we are in the market cycle, i am pleased to say we are joined by steve parker, head of advisory solutions by jp morgan bank.

a special pleasure for me. we go way back to our audience. let's start where abby ended, this idea a bear market rally as possible where you have some house in the market saying perhaps the stock market is bottoming out. what is your take? steve: they say markets move on better or worse, not good or bad. there's a lot of pessimism priced into the market. whether you look at fun vendors -- fund managers sitting on their highest levels of cash. when we think out over the next 12 to 18 months, we think this will end up looking back as a nice entry point for the stock market. at the same time we have to have the humility in the short-term to recognize the fact we are dealing with a couple of factors , war, inflation, things that most investors in the market do not have a lot of experience with. what's we are doing a staying patient, staying diversified, focusing on quality, but we are at normal levels of risk in our

portfolios. kriti: i love you said most traders, most investors do not have the experience. as a journalist i do not certainly have that long vision. i have to ask, does that really matter in this environment given over and over again we are talking about the same unprecedented and also we knew inflation was coming. this is something we were talking about say a year ago before the consumer felt it. steve: we did know it was coming but i don't agree realized how long it would last and how high it might persist. i think that is one of the challenges investors are grappling with at the moment. i think the reality is we are watching signs inflation will be the number one thing on people's nines -- people's minds. it is a sign things are rolling over. we think inflation signs are going to be easing, whether easing of concerns in the labor market, wage pressur abating, economy shifting to good bass consumption, whether the supplies can bottlenecks exist, to more services

consumption where there is less inflation pressures and we are seeing cooling in the housing market. three of the big factors contributing to inflation we think will begin to abate and i think that will make investors happy. kriti: that is good news, especially when the stock market is hearing recession, volatility. as the fact the idea that recession is inevitable in say by the end of the year this contraction of the economy, the economy is still growing. are those fears overdone? steve: i don't think they are completely overdone. we think the risk of recession is higher today than when we came into the air but not as highs what markets are reflecting. kriti: what is the driver? what changed that? the war in ukraine? steve: a number of things, the persistence of inflation, the worn ukraine, some structural factors with slide the fed to take in more bearish stance in the way they approaching -- they are approaching raising rates. i don't think markets were

prepared on how aggressive they need to be. markets have done a lot of repricing for financial conditions tightening, rates have gone up, mortgage rates going up, so i do not think we will need to wait for the fed to finish hiking rates for markets to recover but it will take a little time and guidance that we -- that there is a soft landing potential. kriti: let's go -- he took me where i wanted to go and that is talking about the federal reserve. cannot have a market conversation without that. we have been -- we have been in this quantitative easing cycle once before and i can wishing the counter that, 2016 through 2019. during that era, the stock market rally. if we are going by that precedent, what does the stock market have to worry about when the federal reserve quite literally is tackling the inflation it was criticized for not tackling? steve: i think that will be good news. when we see signs that it is working that will get investors excited about the market. i do think one of the things we have to recognize the, the playbook we have seen the last decade, a slowdown, the fed's

ability to cut rate stimulus economy, is probably not going to come back in the same force we have seen it over the last decade. so what we're focused on is a focus on quality companies, strong balance sheets, investors that spent the last five years focusing on how much revenue you can give me 10 years from now and now they focus on how much cash for you can give me today. kriti: for so long they were trading liquidity. one of the most attractive pieces of apple, microsoft, it was not the fact they were the fastest growing companies, it was the fact they were sitting on billions of cash. i have to ask, if we are going from a liquidity trading story to say trading on margins, took trading on supply chain issues or whatever that may be, what is the next signal to buy into some of the stages, specifically into big tech? steve: i think big tech is well-positioned. when we talk to our fundamental analyst and we go talk to companies, you see headlines

around some earnings and revenues and generally speaking the message from big tech's demand is still strong. i think when you consider the valuation dynamics of a lot of these big companies, it is going to take time and patient investors will be rewarded for looking at some of these big tech opportunities. we are not as excited as some of the more speculative parts of the market, the "high flyers". i think financing and capital raising will become a lot more difficult. on the other side of the cycle. that is where i want to focus on quality with big tech. kriti: i'm really glad you we used the word valuation -- you use the word valuation. one other warrants were hopping into the stock market is if you look at some of these valuations, they are back to pre-pandemic levels. if you rewind to january 2019 or january 2020 and the last quarter of 2019, i remember one of the big conversations there being the stock market is overheated, tech is overvalued, what are we going to do about this? getting back to those levels, is it positive? steve: when you look at the

valuation story, a lot of froth has come out of the market. stay focused on quality, stay focused on the companies that are going to be able to grow into those attractive valuations, and i think staying in a place where we are closer to long-term historical averages as opposed to looking for the historical highs puts us in a good spot. it means overall returns on the equity market are probably lower than what we have seen over the last couple years but that is completely normal in a good environment to be investing in. kriti: thank you so much, steve parker, of the jp morgan private bank. we are so to have him back soon. let's get to headlines regarding s.e.c.. they are taking their biggest app yet to stop money managers from this leading investors when they claim their funds are indeed focused on esg issues. the agency is set to propose wednesday a slate of new restrictions aimed at ensuring esg funds accurately and

describing their investments. take a listen or listen to me about what the sec jerry gessler said in the statement. he commented important or -- commented investors have competent disclosures about strategy so they can understand what data under lands -- underlies funds claims and choose the right investment for them. we will have more details on this ruling is the day progresses. for now, let's get to bloomberg's first word news with mark crumpton. mark: authority say all those killed in elementary school where in the same fourth-grade classroom. 19 children were killed along with two adults. a number of others were wounded yesterday. the gunman was shot and killed by border patrol agent. kriti: we will come back to you in a second. let's head to break here. we will bring more headlines once we come back. this is bloomberg. ♪ another crazy day? of course it is—you're a cio in 2022. so what's on the agenda?

morning security briefing—make that two. share that link. send that contract. see what's trending. check the traffic on your network, in real time, with the next generation in global secure networking from comcast business. lunch? -sure. you've got time. onboard 37 new people, with 74 new devices. does anybody have any questions? and just as many questions. shut down a storm of ddos attacks. protect headquarters and the cloud. with all your data on the nation's largest ip network. whoa, that is big. ok. coffee time. double shot. deal with a potential breach. deal with your calendar. deal with your fantasy lineup. and then... that's it? we feeling good? looks like we're feeling good. bring on today with comcast business. powering possibilities™.

>> the war in ukraine rages on. turn to bloomberg for up-to-the-minute reporting from around the world and analysis of what it all means to you. >> the intention is to increase the pressure on sanctions front. >> i think the united states policy is that sanctions continue until president putin is no longer there. >> for continuing coverage from ukraine and around the world, keep it tuned to bloomberg television and radio. kriti: this is "bloomberg markets." twitter's annual shareholder meeting just kicking off now. joining us for the latest is ed ludlow, standing outside twitter's headquarters in san francisco, california. always a pleasure. walk us through what we are expecting to hear.

what of the big issues at this meeting? ed: hello from a windy san francisco. i'm not quite sure things are as turbulent inside of the building behind me because elon musk's bid to buy the company is not officially on the agenda. it is being discussed. let's be under no illusion, that is what shareholders want to know about, what is the status. as you will remember, elon musk said the deal is temporarily on hold. he had concerns about the number of bots or percentage of users on the platform but what we are really trying to understand is where the bid stance from a pricing perspective. we are a long way from $54.20 per share and all of these merger specialists bloomberg is talking to increasingly paint a picture where we are somewhere between a scenario or mosque walks away from the deal and there could be legal consequences to follow that and a new lower price below the $54.20 per share offer muska has an.

kriti: let's put muska side for a moment. there has been this made her talk about twitter reframing. they made rules in terms of monitoring some contacts, flagging content that poses an issue. on top of that, they had a major round of layoffs on the junior and senior level. how much of that is going to get undressed in the shareholder meeting? ed: it is interesting because one of the resolutions, official agenda item, is management compensation. you see a number of pension funds voting is the management proposal because they feel performance is not been good. -- has not been good. you have a situation where you have a number of senior partners from the company put on hold because they are in limbo essentially. we talk to insiders all the time working on specific products, carrying out specific engineering in a building -- the building behind me but they do not know where they stand. if it is elon musk is

successful, he has his own ideas for the platform. if he does take the company private, we do not have a clear picture of what day-to-day involvement will have. we know based on extensive reporting and well-documented occasions that he has been a micromanager at tesla and spacex, so everyone inside the building is bracing for it but from a shareholder perspective, they want to know where they stand. is the deal going to happen or not? kriti: let's macro this out a little bit. we heard from snapchat. his twitter in the same boat? ed: yeah, twitter is vulnerable. we talk about advertising in the first thing to suffer in a weaker microenvironment's advertisers or money, especially -- pull money especially when they have concerns about consumer confidence. i'm sure shareholders will ask about the future of twitters at is this during the meeting. kriti: ed ludlow joining us outside of twitters headquarters in san francisco, thank you as

always. let's continue the conversation on twitter and bring in and cam partners executive director and really dig into this issue -- in m km partners executive director and really dig into the issue. we heard about these macroeconomic fears. how much of the fears will seep into the twitter story? >> [indiscernible] twitter does more brands in the first thing as an said, the first thing they would pull back is brenda spend. so this will not work in a vacuum. they will definitely see headwinds compared to what snap a seeing come of the industry is seeing, and others are seeing. kriti: i have to ask about whether some of the fears are overdone. the market is largely trading on recession odds, this kind of slowdown that has guaranteed.

but a recession is not the same thing is a slowdown so is that revenue story really a function of the fears that may or may not be warranted? kohit: i feel the market is jumping ahead to a certain degree with regards to almost getting to like a self fulfilling prophecy but i feel there will be a recession, we may go into a recession, and we are in a recession right now. perhaps that is where the market is. i'm not a macro person but that is where if we see some of the stocks, where they are with valuations they have in the longer outlook they may have, that is where we are getting to a point where absolutely it is very attractive. having said that, it will be downside to numbers and downside to second-half numbers and last year, first half, all of these companies had a tremendous first half of 21 which led to very tough columns in the first have a 22 but everybody expects pinterest to escalate revenues and second-half because of what

happened in the second half of last year. if that does not happen, this is probably a leg down to some names despite the correction we have seen. kriti: as we speak, we see twitter shares higher up 2.4%. we are trading at a 36 handle, far cry from the $54.20 elon musk has to offer. a lot of that has been deal on pause as elon musk phrased it. i have to ask, what are the odds the deal will go through? rohit: in my opinion, given what we are hearing from twitter, from musk, the public realm of things, the deal, the likelihood of the deal happening is higher given probably musk is willing to negotiate at a lower price. if you look at what a variety of these arbitrage qualities are, twitter is trading about 32 to 35 points below the price. activision is trading 20 to 25

below the price. microsoft is willing -- price that microsoft is willing to pay. that might create arbitrage for twitter. that arbitrage is probably markets we are seeing that musk is willing to come back to the table with a slightly lower offer and that is where opposers. kriti: let's talk about the monetization of it. you talk about the contents i, how does twitter actually make money aside from the ad revenue story they put out things like super follow, twitter blue, twitter spaces. how will twitter make money say 10 years from now? rohit: twitter believes they can make money the way some other companies like instagram or facebook have been doing over the last six to seven years. twitter is 85% to 90% of revenues come from brad advertisers -- brand advertisers. that has left emphasis on or did

not expend as such. facebook, they do their response. twitter believes 50% of the revenues come from direct response. add onto that what musk believes that a chunky size of the business could come from subscriptions. so musk believes a brand response and subscriptions, maybe one third, one third, one third. so a lot of revenues but it remains to be seen how to execute that. kriti: for sure, 30 seconds, what is twitters biggest problem? rohit: execution. i feel they have had a lot of turn recently. a younger ceo of the tech background i feel it is a story, they have a good story but they have to execute on the plan. kriti: rohit kulkarni, mkm partners director, thank you.

twitter shares are up in the shareholders meeting underway. still had, we hear from the new york state dfs superintendent about the state of crypto regulation, a key topic as we talk about adoption. more coming up next. this is bloomberg. ♪

kriti: this is "bloomberg markets." now to something that caught my eye, anderson how are wits raised $4.5 billion crypto fund industries -- the crypto fund industries largest today in the firm is dedicating $3 billion to venture investments and $1.5 billion to seed investments. the fourth crypto dedicated investment vehicle brings its total digital assets focus to this, $7.6 billion. galatians a big part of the crypto universe.

earlier today, david westin spoke with the new york state department of financial pairs superintendent about the issues tied to crypto regulation. >> a very robust regime we have a regulating virtual assets and we have been at it for a long time and standards are very high. it continues to attract companies to new york and having that engagement with washington is helpful as they seek to regulate the space because they are learning from us. david: one form of digital assets, cryptocurrencies, are changing pneumatically. we've seen the last two to three weeks a plummet in value. what has that done to inform how you approach the regulation of those. >> it really does help us think about not only the value of the regulatory framework we have but how we think about the things going forward. with stablecoins, when they are licensed by dfs, we require one to cash and cash equivalents. one for every coin on chain. we require third parties to

attest to the reserves of our licensed companies and require internal and external audits as well. we really have quite a rigorous framework here. david: that takes me back to a prior question, which is other people are not requiring it. other jurisdictions are not requiring it. how do you make sure new york does not fall behind the race for cryptocurrency when other jurisdictions, whether the united states or elsewhere, are not requiring reserves on stablecoins? >> we -- >> it's to the contrary of what might be a popular belief, we see that clarity, those rules attract companies to new york. in 2021, 46% of capital investment in cryptocurrency was in new york-based and regulated companies. it's more than silicon valley, more than miami. we know having those rules of the road is good for consumers and markets and can be good for companies as well. kriti: andreessen horowitz dfs superintendent speaking earlier with bloomberg's david westin, a

crucial conversation when talking about the adoption of cryptocurrencies broadly. even as we speak we see bitcoin higher to the tune of .5%, not the same standard deviation move we see. compare that to the broader market and you see a slightly risk on kind of vibe. the s&p 500 flat on the session but in the green. you are seeing the 10 year yield as well, 275 basis points there, still once again screaming risk on across-the-board generally speaking. coming up, we await the latest on the fed minutes. this is bloomberg. ♪

mark: in texas, authorities say all those killed in an elementary school shooting yesterday were in the same fourth-grade classroom. 19 children were shot along with two adults. gunman was shot and killed by a border patrol agent who rushed to the scene.

president biden his demanded action to curb the violence. boris johnson says he bears full responsibility for illegal lockdown parties at downing street. report was released today. speaking in the house of commons, he reiterated his apology. >> i am humbled by what is happened and i renew my apology for the gathering in the cabinet room on the 19th of june 2020, for which i received a fixed penalty. mark: the prime minister told parliament he was only briefly at the parties in question and did not know about the bad behavior that happened later. labor contracts with more than 22,000 workers are set to expire at the end of june. contract negotiations between

the international longshore and warehouse union and 70 employers represented by the pacific maritime association have started. both sides say they are committed to keeping cargo moving throughout the process. water officials in california have voted or's local agencies to step up their conservation efforts because of a drought that is expected to get worse. local agencies have to put in place plans for up to 20% shortage in water supplies. governor gavin newsom warned this week he will have to impose mandatory restrictions. global news 24 hours a day on air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪

kriti: let's dive into the price action. it is green on the screen. this is important as we talk about the volatility down 1% to 2% one day then coming up the next. that is not a healthy market. how much of this is caution? how much is a return to normalcy? we will dive into that in the next 30 minutes. the vix, you are seeing a 29 handle. keep an eye on the bond market. not a lot happening ahead of the fomc minutes. interesting to see no movement in the bond market or limited in the face of a stronger dollar. what is the dollar reacting to? jon: a great sector to look at for the conviction story is the technology sector. to your point about green on the

screen, we are seeing names that have struggled down anywhere from 40% to 50% this year. moving higher, the tesla story and docusign front and center. do growth stocks find a place in portfolios again? still so many sensitive on the outlooks and we will be watching nvidia closely after the bell about what they have to say on the road ahead. >> let's turn to the economic picture which has been a key factor in the volatility we have seen in the markets so far. we caught up with the ceo of the teachers pension plan board in davos. listen to his thoughts on inflation. >> our mission is to provide stable returns over longer-term. inflation is what we are watching the most. jon: we may get more insight on

inflation and the path of rate hikes when the fed releases the minutes from his latest meeting 30 minutes from now. joining us for preview is the chief economist at the conference board. what are you thinking about as we get a closer look at what they have been talking about? >> we will be looking for any clues in terms of how many more rate hikes of 50 basis points should we expect? june, july, what about after that? will we look at a pause where the fed takes a breather? we're also interested in understanding what neutral means. is the neutral range to percent to 3%? does the fed plan to go above that this year or next year?

kriti: stick with us, we are to come back to you. it looks like we're are getting live comments from governor abbott of texas. he is speaking at a live press conference. >> intelligence, counterintelligence terrorism division and victim support. they are also supported by the texas division of emergency management. fbi as well as ultimo federal partners including the dea, atf, hsi, and border patrol. then the valiant local officials . the shares department -- sheriff's department, police department, independent school district police, county constables, the mayor, the county judge, the district attorney's office, local public works and surrounding police department and the san antonio

police and fire department also. let me walk you through some of the facts of what is happened. there has been a lot of things said, some are correct some are incorrect. let me tell you the best information we have at this time understanding importantly that this is an ongoing investigation and ongoing investigations often reveal new information as those investigations progressed. the first thing that happened was the gunman shot his grandmother in the face. then she contacted police. the gunman fled and he had an accident outside of the elementary school and he ran into the school. officers approached the gunman and engage with him at that

time. the government entered the back door and went down two sure hallways and into a classroom on the left-hand side. the gunman entered into the classroom connected to another classroom. border patrol consolidated officers, police, sheriff officers converged on the classroom. and border patrol officer killed the gunman. texas rangers are leading the investigation accompanied by federal, state, local law enforcement officials. at this time, we know that 19 children 19 children have lost their lives.

two faculty members. lost their lives. in addition to that, there are 17 people injured, but their injuries are not threatening. all family members of all of these students and faculty members have been contacted and informed about the circumstances. officials are working with parents to ensure the parents are going to be able to see their children. parents should contact victim services at the county fair plex. we know that their parents still striving to make a connection. all parents are welcome and urged to contact victim services at the county fair plex.

the gunman was 18 years old. reportedly a high school dropout. there reportedly has been no criminal history identified yet. he may have had a juvenile record, but that is yet to be determined. there was no known mental health history. of the gunman. he used one weapon which was an ar-15 using two to three rounds. --223 rounds. there was no meaningful forewarning of this crime other than what i'm about to tell you. as of this time, the only information that was known in advance was posted by the gunman on facebook approximately 30

minutes before reaching the school. the first post was to the point of he said i'm going to shoot my grandmother. the second post was i shocked my grandmother. -- i shot my grandmother. the third of post less than 15 minutes for arriving at the school was i'm going to shoot an elementary school. i mentioned that during the shoot out the took place at the school, in addition to the students and faculty, there were three officers injured who all remain in good condition. one deputy sheriff lost a daughter in that school. before coming out here, we had a

long discussion with law enforcement at all levels. we had a discussion with community leaders elected officials. i asked sheriff and others an open-ended question and got the same answer from the sheriff as well as from the mayor of uvalde. the question was what is the problem here? they were straightforward and emphatic. they said we have a problem with mental health illness in this community. then, elaborated on the magnitude of the mental health challenges they are facing in the community and the need for more mental health support in this region. i want to make sure everyone

understands the mental health services that are available at this time with me making one clarifying point in advance that i will double down in the aftermath. whenever anything as shocking and stored in your and disturbing as this event is occurs, there is an urgent need for everyone affected to access to health. i cannot be more emphatic than saying with great urgency, everybody in this community, i mean everybody -- victims, the families, family members friends, the law enforcement, the entire community is in utter

shock about this. some physical wounds that were sustained by the officers, they will heal in the coming days. the mental and emotional wounds are far harder to see and masked far longer. state of texas working with federal local officials and agencies, we are going to be here for a long time. one key point we will focus on is making sure that everybody in this community has the access they need for as long as they need. to address with the mental and emotional health care needs that they have. we will list various agencies and make sure these are made available to the public. the mental health services

currently available are from victim services from across the area from federal, state, and local levels including the family resource center at the uvalde county fair plex. teams at the civic center. they provide wraparound services for families who are affected. the texas child mental health consortium created by the state legislature in 2019 is available to assist. the bluebonnet children's advocacy center is available to provide services for children. the texas health and humans services commission is on site and available for ongoing services. supplemental counseling services. the texas department of public

safety is providing counseling services for law enforcement. the fbi is also bringing in mental health services for law enforcement. it cannot be overemphasized the importance of law enforcement officers, all of them seeking out and obtaining this metal health counseling. the district attorney's office for victim services has a phone number available for all victims and the entire community. i was provided their number to get out to you publicly. this is the number for the district attorney's office for victim services. 830-278-2916. at this time, i will pass the microphone to lieutenant governor dan patrick.

>> excuse me. excuse me. sit down, you are out of line and an embarrassment. sit down. sit in your place. you are out of line. you are out of line. you are out of line. please leave this auditorium. i can't believe you -- to make a medical issue. [indiscernible] why don't you get out of here. [indiscernible]

[shouting] [shouting] their family members who are crying as we speak. their family members whose hearts are broken. there are no words that anyone shouting can come appear and do anything. to hear the brook -- to heal the broken hearts.

every texan, every american has responsibility. we need to focus not on ourselves and our agendas, need to focus on the healing and hope that we can provide to those who have suffered unconscionable damage to their lives and loss of life. we need all texans in this one moment in time to put aside their personal agendas, think of somebody other than ourselves, think about the people who are hurt and help those who have been hurt. at this time, the lieutenant governor will speak. >> i was just about to say that there will be plenty of time to discuss and analyze what happened yesterday and everything that we can within

our power to hopefully prevent it from happening again. now is the time people watching around the world in this country and this state to focus on these families as the governor just said. right now, when it to put -- we need to put our arms around the victims, families, students, teachers. this is not a partisan political issue. this is an unimaginable moment that will impact the lives of those who lost their children and those who survived. the adults, teachers, men and women of law enforcement who were there. we are better than this as a country. we are better than this.

these types of crimes when you see children killed, they go to the core of us all who have children and grandchildren. kriti: that was governor greg abbott speaking at a media briefing in uvalde texas. to recap some of what we have learned. he said there was no meaningful warning of the crime outside of facebook posts the indicated the government was going to do this. he did not have any prior history when it comes to a criminal record. you did see some comments from beto o'rourke talking about whether or not this could have been preventable. he has been a major advocate for gun control. we will bring you more headlines as the press conference unfolds. this is bloomberg. ♪

jon: as we were discussing at the top of the half-hour, we will be getting the minutes from the recent fed decision on interest rates. patiently waiting with us is dana peterson, chief economist at the conference board. you talked about watching for any clues on how aggressive the key members of the fed will be. i know you have been measuring confidence among ceos and how they feel about a recession right now. what data points can you share with our audience? >> our survey of ceos published last week shows 57% of them anticipate that inflation will slow over the course of the next year. there will be a recession. a brief and shallow recession but a recession nonetheless. it is pretty much tied to the

events we are seeing but also monetary policy. even though we think the fed is going to be aggressive, the fed will come back and help calm things down if we go into a recession. i can interpret that as hiking above 3% then cutting rates. ultimately, the fed may pause after several rate hikes to see where we are. ultimately, many businesses are convinced that we are headed toward a recession. kriti: what does that mean for the balance sheet? >> for the balance sheet and fed policy in general, the fed has signaled that it is willing to do whatever it takes to arrest inflation, to wrangle it to the ground. however, the chair has said we want a soft landing. that leaves open the possibility of recession. in terms of the balance sheet,

the balance sheet has implications for the real economy. chair powell has suggested that some are saying that dowling back the size of the balance sheet is equivalent to a 25 basis point rate hike so there's not much going on there. interest rate hikes will come -- calm consumer spending. some are saying they are delaying purchases in the rise of dutch in the face of rising interest rates. consumers are saying they are buying cheaper goods, looking for discounts and driving less. kriti: thank you. let's get it quick check on the markets ahead of the fomc minutes. we are seeing marginal gains up to 10th of a percent. jon: we also have to wait and see what happens with a lot of other economies around the

world. we are seeing a little bit of buying ahead of the fed minutes particularly in hard-hit technology stocks. we will have the details coming up next and watched the market reaction to all of that. this is bloomberg. ♪ at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect.

>> we are minutes away from the fed minutes. >> keeping an eye on the markets. all indices have spent a good part of the day in the green.