and it has already as i mentioned in my remarks -- opening remarks, the. >> referee: roe has been faster tan we expected. part of that just is very hard to predict given we have never seen an even like this part of it is just the strength of the fiscal response which i think will look good over the years. longer term, you know, to -- that -- the first part is about avoiding scarring. i think we have not avoided all of the scarring but we probably avoided the worst cases there. and i hope we keep at it -- we will keep at it with our policies of course to do everything we can to make sure that that continues. longer term, though, what it takes to drive productive capacity per capita or per hour worked to raise living standards overtime is investment, investment in people's skills and apartment attitudes, vemt in plant equipment, in software it takes a lot of investment to support a more productive economy and raise living

standards. and that -- you know, that hasn't been the prince pell focus with these measures, our measures, certainly. we don't have those tools. what congress has been doing is main will he replacing lost income and beginning to support people as the economy returns to normal but there should be a focus on -- a longer term focus i think would be healthy on the investment front >> thank you james coleady. >> thank you chair powell. i wanted to ask a question about the euro zone. while the outlook for the u.s. economy has much improved, progress in the euro zone has been far lessen couraging, and it's showing signs of serious weakness due to the slower vaccination rollout and renewed lockdowns and restrictions how worried are you about transatlantic economic divergence and the possibility that trouble in the euro zone and weakness in the euro zone could drag down the u.s.

recovery as it did in a way in the aftermath of the financial crisis >> you are right the pace the recovery is -- we are having diverging recoveries here, as we did after the last crisis in this case as well as the other one, the u.s.'s recovery is leading the global recovery and you, we conduct policy, of course, here our focus is on, you know, our objectives are domestic ones et cetera maximum price stability here in the united states woe monitor what's going on abroad because we know those can affect our outcomes. i think u.s. demand -- very strong u.s. demand, as the economy improves, is going t support global activity as well over time. that will be through imports,

and you know, when the u.s. economy is strong, that strength tends to be -- tends to support global activity as well. so that's one thing. i don't worry in the near term -- i mean i would love to see europe growing faster, i would love the see the vaccine rollout going more smoothly. but i don't worry too much about us in the near term because we are on the right track, very strong fiscal support coming, now vaccination going quickly and cases coming down. i think we are in a good place it's all ahead of us but the data should get stronger fairly quickly here and remain strong for some time here. >> thank you hannah lang. >> hi. thanks so much for taking our questions. i wanted to ask if the fed is planning on extenting the same restrictions on bank dividends and share repurchases that are

currently in place into the second quarter and if you are considering at all the scenario analysis and mid cycle stress tests that were in place last i don't remember this year. and kind of what would make you consider doing something like that again >> we haven't made a decision on that we are a couple weeks away from announcing that decision i won't foreshadow it here today. i will say we are going to continue our data-driven approach you know we restricted buybacks and dividends, so the firms are preserving capital through 2020, the banks actually increased their level of capital, and their level of reserves. in the december stress test it showed that banks are strong and well capitalized against the two stress tests come out in

june it layers significant stress on top of the stress from the lastier, with unemployment going above 1% and stock prices falling. all of that, the result of the stress test and decisions on distributions, all of that is to come fairly soon as i mentioned >> thank you edward lawrence. >> thanks chair powell for taking these questions you laid out the standards to lift off back in june of 2020, you said you are not even thinking about raising rates. but i see seven members seeing liftoff in 2023 and 2024 next year how much debate and how can you characterize that conversation has there been about moving off the lower bound earlier than signalled? >> it all depends. we have set up very clear criteria for lift off. we want the see labor markets

conditions that are consistent with our estimates of maximum employment that doesn't mean just unemployment it is a broader criteria we want 2% and inflation on track to run moderately to 2%. it comes down to what is your projection for the economy people will have a range of assessments for how good the economy is going to be we don't -- i would say that we are in a relatively highly uncertain situation. if you look at the uncertainty, people on the committee broadly say uncertain about the forecast is very high compared to the normal level we haven't come out of a pandemic before. we haven't had this kind of fiscal support before, totally and all up you are going to have different per picture issives from committee about how fast growth will be, the labor market will

recover how fast inflation will move up. these things estimate where people write down a decision of liftoff. it is not a decision to lift out now. we will make that decision then. it is assumptions based on growth it is many to be a tool to generally show the public how our objective funk works, how we think about the future it isn't meant to actually pin down a time when we might or might to the lift off. you know, we are mott going to make that decision for some time chances are the economy in that time and place will be very different from the one we think it will be sometimes with the dots, i have to be sure to point out that they -- they are not a committee forecast you know this, but they are not a committee forecast it's just compiling these projections, really of individual people. we think it serves a useful purpose. it is not meant to be even a promise or even a conviction of when the committee will act.

that will be very much dependent on economic outcomes, which are highly uncertain >> thank you we will go to brian chung. >> chairman i wanted to elaborate on your commentary about the fiscal stimulus. it sounds like you see the case for maybe even more investment from congress to support ruktive economy. we just had $179 trillion in spending where do you see the fiscal space right now? do you still i guess maybe see the country in a place right now where it wouldn't be a concern if there would be more spending at this time. >> brian, it's not up to us to decide what congress should spend money on or when i was answering gina's question, which really was, how did woe assure lack of damage or -- scarring or lack of damage to the productive capacity of the economy. i think what's happened so far has done a pretty good job of that really i wanted to make the

longer run opponent to work on productivity over longer periods, that is -- that comes down to a number of thing. one of those things is investment investment in people, in their skills, education, aptitude, all of those thing i am not in any way suggesting that that's something congress should work on right now or that -- you know, that's just not my -- that's not our job i am just saying that is what -- what fiscal policy can do that really monetary policy can't do is invest in the future productive capacity of the economy, raise potential growth. those things are complete will he tools that congress has again, i wasn't making a comment at all on the current fiscal setting. >> thank you next, michael derby. >> great, thank you for taking my question. i wanted to get an updated view on your sense of your view on

financial stability risks and whether or not you see any pockets of excess out in financial markets that concern you either specifically to that area of the market or as in terms of like the threat that it could propose to the overall economy? >> so, as you know, financial stability for us is a framework. it's not one thing it's not a particular market or a particular asset or anything like that it's a framework that we have we report on it semiannually the board gets a report on it quarterly. we monitor every day it has four pillars, four key vulnerabilities. asset valuing as, debt owed by business asks households, funding risk and leverage among financial institutions those four things. i will quickly touch on them if you look at asset valuations you can say that by some measures, some asset valuations are elevated compared to history. i think that's clear in terms of households and

businesses, households entered the crisis in very good shape by historical standards leverage in the household sector had just been gradually moving down and down and down since the financial crisis now there was some they gotive effects on that, people lost their jobs and that sort of thing but they have also gotten a lot of support now so the damage hasn't been as bad as we thought. businesses by the same token had a high debt load coming in and many saw their revenues decline but they have done so much financing and there is a lot of cash on their balance sheet. so nothing in those two sectors jumps out as really troubling. i mentioned funding risk is the last one we saw, again, in this crisis breakdowns in parts the short-term funding market. they came under a tremendous amount of stress they have been quiet since the spring and we shut down our

facilities and all of that but we don't feel like we can let the moment pass without just saying, again, that those -- some aspects of the short-term funding market and more broadly non-bank financial intermediation didn't hold up so well under great stress, tremendous stress and we need to go back and look at that a very high priority for us asing are will iters and supervise is going to be a go back it will involve all of the other regulatory agency, it does involve all of them as well and see if woke strengthen those thing. that's sort of a broader, detailed look. >> thank you michael mckey. >> chairman, can you help me understand something about the sep and your forecasts in the inflation that you are talking about for this year, say s transitory then by 2023u back down to 2.1%,

there is no forecast for a rate increase for 2023. if you get to 3.5% unemployment but inflation is only at 2 or 2.1%, are you willing to leave rates at zero going forward from this or roughly zero going forward from this? in other words could we be in a japan-like situation where rates just stay low because inflation does >> begun, i wouldn't read too much into the 2021 march dot plot it is a compilation of individual projections by individual members they are all making assessments. they have different forecasts. economic forecasts, some have more optimistic ones, some less optimistic and also remember that the sep doesn't include all the things that go into maximum employ. it only includes unemployment. i would just say we have set out

clear guidance the message from the sep that i would like to leave with people is, we sent out clear guidance i mentioned what it was. it's inflation -- sorry. it's labor market conditions consistent with our estimates of maximum employment and that's not just unemployment. it's all the other indicators. but overall totaling up to maximum employment it is inflation at 2% and not on a transient basis and inflation on a track to exceed 2% moderately for some time those are the criteria we are committed to robustly implementing that guidance that's what this says. that's really all it says. we are going to wait until those requirements are met and again, you know, the state of the economy in two or three years is highwly uncertain and i wouldn't want to focus too much on the exact timing of a potential rate increase that far into the future. >> if i could follow-up. i'm wondering that before 2019

you say you were focused on the problem of having interest rates too low. now are you saying we are willing to live with it until we reach those goals even if you get the future goal on maximum employment >> so what i would say is we are committed to giving the economy the support that it needs to return as quickly as possible to a state of maximum employment and price stability. you know, to the extent, having rates low, and support for monetary policy broadly to the extent that raises other questions, we think it's absolutely essential to maintain the strength and stability of the broader financial system and to carefully monitor financial stability questions if that's what you are getting at you know, we do that we monitor them very carefully i would point out that over the long expansion, the longest in

u.s. history, ten years and eight months, rates were very low for -- they were at zero for, you know, seven years, and then never got before, you know, 2, 2.4%, roughly during that, we didn't see, actually, excess buildup of debt we didn't see asset prices form into bubbles that would threaten the progress of the economy. we didn't see the things -- we didn't see a housing bubble. the things that have tended to really hurt an economy and have in recent history hurt the u.s., we didn't see them build up despite very low rates part of that just is that you are in a low rate environment. you are in a much lower rate environment. and the connection between low rates and the kind of financial instability issues is just not as tight as people think it is that's not to say we ignore it we don't ignore it we watch it very carefully and we think there is a connection i would say there is, but it's not quite so clear

we actually monitor financial conditions very, very broadly and carefully. and we didn't do that before the global financial crisis 12 years ago. now we do. and we have also, you for example put a lot of time and effort into strengthening the large financial institutions that form the core of our financial system are much stronger, much more resilient. that's strew of the banks. i think it is true -- we want it to be true of other non-bank financial intermediation markets and institutions so i think that's -- that's -- you know, moneyer to policy should be, to me, for achieving our macro economic gains financial regulatory and supervision should be for strengthening the financial system so it is strong and robust and can withstand the kinds of things that it couldn't and we learned that in 2008, '09

'10. this time around the regulated part of the financial system held up very well. we found some other areas that need strengthening and that's what we are working on now >> thank you anna kim, cnn. >> thanks for taking my question could you talk to us about the relationship between the persistent pandemic unemployment -- >> i'm sorry repeat that. you broke up there for a second. >> oh, no. i was hoping that wouldn't happen can you hear me now? >> yes, into okay. great. i was asking if you could talk to us a little bit about the relationship between the persistent pandemic unemployment and the expected increase in inflation. i am wondering whether the former offsets the latter, and to which degree you are monitoring this? >> you are asking about the relationship between

unemployment and inflation is that the question >> yes exactly. >> okay. >> do they offset each other, the persistent pandemic unemployment. >> i think i am hearing you correctly. i would say a couple of thing. there was a time when there was a tight connection between unemployment and inflation that time is long gone we had extremely low unemployment -- not extremely low. we had low unemployment in 2018 and 2019 and the beginning of 2020 without having troubling inflation at all we were at 3.5%. we were bouncing around unemployment, 3.5% to 4% it wasn't just unemployment. participation was high wages were moving up it was a very healthy thing. and we didn't see price inflation move up. there is a relationship between -- between wage inflation and unemployment but that has not -- what happens is that when wages move up

because unemployment is low, companies have been absorbing that increase into their margins rather than raising prices that seems to be a feature of late-cycle behavior. so we're -- we are not -- when we seek to achieve low unemployment, high levels of employment, which is our mandate, you know, we think we have the freedom to do that based on the data without worrying too much about inflation. >> thank you going to greg robb >> hi. thanks for taking my question. i wanted to follow up a little bit. i understand what you are saying about the dot plot, and the message you are trying to send with the dot plot. does the same apply for the taper tantrum? you said that it is going to take some time to get some fundamental progress on your goals. but it seems like some time could now be any time.

>> well, so we've said substantial further progress now, if you go back november, december, and january, progress in the labor market slowed very sharply. so you had an average of 29,000 jobs per month if you go back and look at the level of job creation before that, it was very, very high very high. so we weren't making any progress on the labor market from november through january. february, we saw a nice pick up, a good jobs report 379,465 private sector that's good. it can go so much higher, though and you know, it would be nice to see -- to really make faster progress that's different from substantial progress wold like to see it be higher than that. i think it will be that's the expectation is you will see now i think really strong job creation return

not as high as it was in the very early days of the recovery, the reopening of the economy, but nonetheless, very strong okay so what i am saying is to achieve substantial progress from where we are, having had three months of very little progress is, going to take some time and it's -- we don't want to get into -- i don't want to get into trying to put a pin on the calendar someplace because it's going to be data dependent when we see -- when we see ourselves on track to make substantial further progress, we are going to say so. we understand fully that that test is one that involves judgment if you remember, during the global financial crisis recovery we said quantitative easing number three was -- the test was the substantial improvement in the outlook for the labor market what does that mean? well, it means a substantial improvement in the outlook for the labor market it meant we would communicate when we had that

this is just like in a ay. substantial further progress toward our goals of we will tell people when we think -- until we say -- until we give a signal, you can assume we are not there yet. as we approach it, well in advance, well in advance, we will give a signal that yes, we are on a path to possible below achieve that, to consider tapering that's how we are planning to handle it. yates not different really from qe 3 i think what we have learned from the experience of the last dozen years is to kmookt very carefully, very clearly, well in advance, and then follow through with your communications in this case, it's an outcome-based set of guidance. as our rate guidance and it is going to fend on the rate of our recovery that's why it is not important to start pointing at dates yet into thank you. >> thank you don lee, l.a. times. >> hi, chair powell.

as you know, house votes are sitting on a lot of excess savings -- households are sitting on a lot of excess savings. i wonder if combined with that you have an unleashing pen up demand, how much do you think that would affect inflation? would you expect that to be transitory. >> you know, we, and everyone who is forecasting these, what we are all doing is we are looking at the amount of savings. we are looking at -- we have reasonably good data on that and we are looking at the government transfers that will be made as part of the various laws and we are trying to make an assess member on what will be the tendency of people to spend that money the marginal propensity to consume. from that, you can develop an estimate of the impact on spending, on growth, on hiring, and ultimately, on inflation

so that's what we are all doing. and we have -- you know, we have -- we can look at history, and we can make estimates. and those are all very transparent and public and you can compare one to the other. and of course we have all done that and i think we have made very conservative assumptions and sensible mainstream assumptions at each step of that process what it comes down to is what i said before, which is there very likely will be a step up in inflation as march and april of last year dropped out of the 12-month window because they were very low inflation numbers. that will be a very significant pop in inflation it will wear off quickly, though, just because of the way the numbers are calculated past that, as the economy reopens, people will start spending more. you know, you can only go out to dinner once per night but a lot of people can go out to dinner and so -- they are not doing that now not going to restaurants, theaters, that part of the economy -- and travel, hotels,

that part of the economy is really not fuchging at full capacity but as that happens, people can start to spend it also wouldn't be surprising -- you are seeing this now in the goods economy, there will be bottlenecks. they won't be able to service all the demand maybe for a period those things could lead to -- we have modelled that other people have, too what we see is relatively modest increases in inflation but those are not permanent things you know, what will happen is the supply side -- the supply side in the united states is very dynamic people start businesses, this reopen restaurants you know, the airlines will be flying again all of those things will happen. so it will turn out to be a one -- a one-time sort of bulge in prices, but it won't change inflation going forward because inflation expectations are strongly anchored around 2%. we know that inflation dynamics

do evolve over time. there was a time when when inflation went up, it would stay up that time is not now it hasn't been the case for some decades. we think we don't suddenly change to another regime these things ten to change over time and tend to change when the central bank doesn't understand that having inflation expectations anchored at 2% is the key to it all. having them anchored at 2% is what gives us the ability to push hard when the economy is really weak. if we saw inflation expect'ses moving materially above 2% of course we would conduct policy in a way that would make sure that that didn't happen. we are committed to having inflation expectations anchored at 2%. not materially above or below 2% that's -- i think if you look at the savings, lock at all of that, model it, that's kind of what comes out of our assessment there are different possibilities.

i think it's a relatively unusual variant, unusual situation to have all these savings and fiscal and monetary support. nonetheless, that is our most likely case. as the data come in and the economy performs we will of course adjust. ow our outcome based guidance will adapt immediately we think to meet what the actual path of the economy is. >> thank you we will go to scott hoarsely for the last question. >> thanks chairman, powell my question is about the supply chain bottlenecks especially on the good side. are they getting better or are they getting worse they were sort of a doctoring on the industrial production numbers that came out yesterday. what do you expect them to do to pricis at least in the short run. >> it is impossible to say frankly with any confidence.

i would expect -- it is very possible, let's put it that way, that you will see bottlenecks emoerge and then clear over time and you will probably see that over a period of time because, really, the strong data are ahead of us. right now, the checks are going out just, just now and that will -- that will add to spending. covid cases are coming down. vaccination is moving now quickly. you know, the really strong economic data is coming. it should be coming, assuming we stay on this track and that's when you will really know where the bottlenecks are. but you can see, though, they are not -- these are not permanent -- it is not like the supply side will be unable to adapt to these things. the market will clear. it just may take some time some of the answers to that may be price n. many cases it won't be price you will so that people will be reluctant to raise prices. a little bit in the story in

the -- the wage phillips curve show as wages move up, companies don't want to pass along the price increase to their customers. you will see a lot of that here. anyway that's my basic sense thank you very much. >> thank you >> fed chair jay powell staying all in in the fed support for the economy. welcome, everyone, the "closing bell." i'm sara eisen along with wilfred frost. stocks giving a thumbs-up to powell's remarks just now. the key takeaways, wilfred, no change in policy when it comes to interest rates, stimulus, or even guidance. no hint that he's thinking about changing policy. now is not the time yet to be talking about talking about tapering or pulling back on stimulus he acknowledged the better growth prospects facing us in the economy. acknowledged rising inflation but said he thinks the inpolice station is going to be temporary

and not lasting and wants to see more data-driven proof and not just forecasts before thinking about making any moves he told the reporters that in 100 different ways that was his clear message. >> i would say you know the big upgrade of course in gdp growth. we did see that before the press conference began we got a hint there there will be a formal announcement on the supplemental leverage for banks. banks have a special exemption from it until ten of this month, probably going to see an extension of that. the other thing i would point to sara is the massive turn around of course we saw in markets. in particular for the nasdaq. >> yeah. >> we had tech sectors performing the worst today because the ten-year pushed up to 1.67. the ten-year pulled back to 1.62, where it is now and allowed some of the higher pries higher multiple stocks to rally the most intraday. the other thing i would point out is the dollar in terms of

intraday charts with the most stark reaction that didn't pare that reaction back at all. u.s. dollar against the euro seeing the euro turn around significantly, up .6% on the day. >> weaker dollar, stronger stocks, flat bond yields at least on the ten-year. let's bring in our panel sara bloom raskin, paul mccully, and mike santoli all with us sara, i thought it was riveting as far as fed press conferences go what was your big takeaway >> it was indeed you saw chairman really quite loose, a lot of times really off script, giving very full, you know, off the cuff hasn'ts, i thought really quite good. but defensive about two things in particular, did not want to engage on the extension of the

supplemental leverage ratio question i thought that was interesting and those dot plots. those darn dot plots i mean, really what he is seeing and what the questioners were noticing is that some of the fomc members are moving their projections. that signals that chairman powell has a corralling issue that could potentially emerge. the dot plots while they have caveats and assumptions embedded in tell they are still out there. i thought they caused a little bit of a problem for him during this particular press conference. >> sara, if you didn't think people would be interested in the supplemental leverage ratio, you have come to the wrong place. paul i want to come to you not particularly on that point of the it looks like we will get information on that in a couple of days.

what was your standout take away from this. i guess from the last couple appearances on our show you were expecting him to stick to his guns despite the upturn in gdp progress. >> i like sara's word, riveting. i thought it was riveting. we got substance to the fed's knew strategic brainwork and reaction function which was implemented last year. but this was the first time for the fed to put some real meat on bones with numbers they upgraded the forecast at the same time, they said we are not going to be preempting i would look at this press conference today as the funeral for the doctrine of preemption and i think that's a glorious thing. >> mike santoli, as far as the market reaction, it was big. and it was positive. we are now locking at session highs. the dow is up more than 200 point. big turnaround

was the market expecting the fed to start hinting about tapering or start acknowledging maybe more of the progress we've made in terms of the economic outlook? >> i don't know about expecting, at least not in a rational way based on what the fed has said before before it reveals what the market was at the margins wary of, what it was afraid of, the idea they were going to have to pull forward the tightening story. only in the response does the exact top of mine fear get revealed the dollar goes down short treasuries and the mid matures like the five-year go down if yield. that showed you that they are taking rate hike expectations out of the margaret that they put in there without the fed wanting them to. that's kinds of what was going on and maybe one of the rebounds powell was loose was that almost everything he had to say was the reiteration this framework yes with more kind of granular data attached to it kind of proving it

also,it is about outcomes, not about expectations their going to wait. and also this idea -- you know, the way they characterized the inflation mandate. you know, it's going to be at 2% with a reasonable expectation of getting above 2 for some time or something like that. that didn't sound so scary in that sense even though they are saying we are going toet will it run there. by the way, the ten-year yield has done a lot of work up from half a percent to 1.6 in evan is, eight months. it is time enough to allow it to row lacks and allowed some of the growth market to have a recovery. >> let's bring in steve liesman fresh from asking chair powell a question we were wondering when he would start to get spooked about the ten-year levels rising. >> i was trying to get a specific answer and a general answer i think the answer is going to be parsed. there is trillions of dollars at stake. how people interpret this.

i usually don't do this. but look at my twitter page. there is a robust discussion going there. i want to play the sound i asked him is there a level on the ten-year you are concerned about, is there a level you would be concerned about and how do you generally feel about it >> i would be concerned by disorderly conditions in markets or by a consistent it tooening of financial conditions that threaten the achievement of our goals. we think the stance of monetary poll so remains appropriate. oured by thence on the fed wrath ral funds rate and on asset purchase is providing strong support for the economy ander with committed to maintaining that patiently accommodative stance until the job and well and truly done. >> he's not doing it now for sure he didn't rule out doing it. what i heard him say maybe there is a level higher that might bring him in but it is not here right you no i have been doing this for a couple decades, you know, if

somebody told you the fed was going to forecast 6.5% growth this year, 3% next year, 2.2 the year after that and unchanged fed funds rate forecast, pce, inflation above 2 ores at 2% all three of those years, unemployment coming down to 3.5% -- this is an historic day. to repeat what mccully said, or the idea here that the fed is really serious putting into fbs what was a change in poll so, this is the first time sara and wilf that we are seeing this in numbers. that the fed is saying we are going to let all this stuff happen and we are not changing rates. i have never seen it before. i don't think anybody else has this is real right now. >> sara, is there a risk that he's not pricing in sufficiently the risk of an asset bubble, even if we don't see the economy overheat or inflation overheat in the real economy, what about markets? >> i think he has to be thinking about that

i mean that has to be going on sort of behind what he's saying x. there are certainly members of the fomc who care, quite, quite a great deal about what these asset bubbles might be looking like and whether there is sort of undue kind of seclation going on because of course as we know, you know, you keep rates this low for this long, a period of time, you are going to have a reach for yield. when you have that reach for yield of course you do add to the riskiness of a lot of this asset growth yeah, he's got to be thinking about that it would be actually inco inconceivable if he's not. >> paul, i don't get why they have the dot plot. i feel like half the press conference was him saying don't pay attention to the dot plot. it just represents forecasts and opinions the fed members and shouldn't be taken as policy or a snapshot of where the policy

is going yet it is hard not do that when they are giving their forecast for growth and inflation and both moving up, which would signal a approximately so change why did they even have it? >> that's a really really good question it was introduced by ben bernanke in 2012 i thought it was a humanly important innovation because that's when the fed essentially start forecasting itself and revealing its reaction function. so i think it has an incredibly useful his troe. but quite frankly, i think a lot of its usefulness has gone away. and i would be a strong supporter of modifying the whole process of the sep because i think it gets the chair too much into the weeds about things and do what they have to do today. i think it is probably still useful but not in this particular form. while i am not forecasting it, i certainly would not be surprised

and would be an advocate of reforming the thing so as this it creates more information and less noise >> guys, we have to leave it there. thank you all very much. sara bloom raskin, paul mccully and steve liesman as well. if you haven't filed your taxes yet, ylan moi has good news for you >> the irs is planning to extent the deadline to file your taxes by one monday according to two sources familiar the date is moving from april 15th to may th democrats and republicans have been calling for this extension. this morning, senator mike crapo, the top republican on the senate finance committee said the new covid rely package has created extra paperwork for tax payers and require tax preparation firms to repeatedly update their systems house ways and means chairman neil has been also pushing for more time. he cited a 25% drop-off in the

number of returns that have been filed so far the irs and the treasury department are under enormous pressure right now as the tax filing system and the implementation of the american rescue plan collide. today ohio sues the biden administration arguing the coercive offer of federal funds violates the constitution. the treasury deputy has issued a statement about this issue for broadly. it said that states are free to make policy decisions to cut tacks. they just cannot use the pandemic relief funds to pay for those tax cuts so, guys, we are starting to see some of the unintended consequences of the sweeping new law. >> thank you. 18 minutes to go before the bell here's where we stabbed. powell turn around the markets and they are headed higher into the close. near session highs the dow is up .6%. leaders include boeing,

caterpillar and mcdonald's s&p up a third of 1% the nasdaq up half a percent was under pressure this morning on the rising rates. they have come down sense powell and the fed. the russell 2000 index of small caps up half a percent up next, we will hear what ceo bob chapek has to say about the reopening of disney parks. and mike mayo has been called the nsin oeitef banking. we will ask him about his new call sales are down from last quarter but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh]

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welcome back dow up 160 tide and despite sizable challenges from the pandemic shares of disney have double over the last 52 weeks julia boorstin spoke with ceo bob chapek earlier in a news-making interview and joins us now with the highlights. >> announcing on cnbc that disney's southern california parks are open on april 30th and they hope to start operating the desny crewsline by the fall. >> our shurdle to make sure we cover our variable costs to make a positive contribution.

we set out to do that from day one. the very first time we opened up a park in a post covid world we have been able to do that successfully around the world and disneyland will be no exception into chapek also weighing in on the growth of disney+. more than 100 million subscribers saying he is not concerned about competition because they are unique in the marketplace. he also said they expect growth across the board and not just with families. >> we have also seen a real surprise in terms the number of families or households without kids necessarily that have sub described to disney+ across the world. so it is a real four-quadrant business fours we think the future growth is going to come domestically and internationally. >> chapek also weighing on disney's pending deal with the nfl over football rights he wouldn't give any details on when the deal is going to close but did he say it is crucial that disney gets flexibility to

put thing on espn+ as well >> well worth checking out more of the interview on cnbc.com as well as the interview with kevin myer lots of disney related contep on the website. the ceo of starbucks speaks out, a new executive aruo.t bi those stories and many more as we go inside the "market zone. we are up half a percent on the dow. of more environmentally friendly refrigerants, for a greener, more sustainable impact on our future. emerson. consider it solved.

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the action going into the close. cnbc senior markets commentator, mike santoli, is here to break down these crucial moments of the trading day. and today we have got josh brown with us as well. a nice green jumper, josh, too let's kick thing off with the broader markets. we are set for a record high on the dow. will or thereabouts on the s&p the nasdaq is not quite there. but up do you to the dovishness in chair powell's news conference the fed left rates unchanged and noted an improving outlook for gp and expectations for higher inflation. mike, led this bounce by the nakds of the nasdaq 100 names, which were toward the bottom of the pile today, now at the top energy as well everything sort of got a bounds. energy had been lower and had a great intraday rally off the back of this. >> there had been a little bit of a relaxation trade going on after the fed.

it was a of doish message. i don't know why it was a surprisingly defense herb message but they are taking a break and allowi ing -- the fedi going to wait to see evidence itself therefore, easy money for a while. now i think you have could keep in mind sometimes there is a rethink after a fed day. the afternoon after the press conference is an unwine. market clearly can absorb this message pretty easily no usually it is the other way around usually the market deputies on fed chair powell and then rebounds the next day when everybody realizes he's not making any change to poll so which he made abun danley clear josh brown this the news conference today

was it a green light four? >> i don't worry about the fed i used to. i outsourced all of that to perot boockvar i let him worry about the federal. then i read his stuff and then i do what i was going to do anyway before i read it when you look beneath the surface at what's going none the market really all we are having in front of us is continuation the trends at that were in force prior to today's non-event there was big put activity on the tlt. talked about it earlier this week that bet seems to have been right so far still some pressure on long term bonds. even in a bounce -- you look at zero coupon bonds, that's not what a 31% drawdown. the duration bet is losing almost everything else is winning. bitcoin was lower this morning right at 2:00 p.m. when the statement came out about bot plots and 2023, it zoomed

higher could make another new record high the home builders reversed there are issues there betting lumber, et cetera, but realistically, we are unhoused in this country, household formation is exploding we just wrote a check for $400 billion. not sure where the money is going to but it is going to 257 million americans in $1,400 increments that money will be spent, almost all of it, locally on main vita n the real economy we are going to boom the fed's not moving i don't really know -- like if you read something or saw something different get at me. hit me up on clubhouse but i didn't see anything different and it is appear on wayne, party on, garth. >> well, it is nothing different, but to some that was a surprise want to hit starbucks because i know you have thoughts on that, josh it held its july share holler meeting today. kate rogers spoke to the company's ceo and joins us now with highlights. >> sara, the company holding its

meeting and also kicking off its 50th anniversary celebration the ceo telling us starbucks is really ready for the great human reconnection as vaccines roll out and we all adjust to the new normal starbucks announcing the opening of its coffee up ovation park in 2022 in china where sustainable coffee production will be the focus. gold beverages continue outperform driving $1 billion in sales growth they will be introducing cold pressed espresso to that portfolio. in we now see more than 50% of the beverages that we sell at starbucks are cold if you think about cold brew and that's sets of beverages, we have now introduced these iced shake and he is creditso beverages that we just introduce along with at milk as you opponent out we are going to continue to innovate around thing like cold pressed espresso in jenson also reacting to

comments that josh proun did make about its pivot during covid retooling the business model saying we have transformed the company from with a we think are consumer behaviors at that will stay going forward. thinking ahead about the new normal and how we have all kind of shifted over the last year. back over to you >> kate rogers, thank you very much great interview. josh, you dot reference there. the stock is up almost 90% over the last year. is there still room here to run? >> i think so. i am sticking with it. i had bought it during the crash. it was hard for me to envision a scenariowhere we weren't still trinking coffee both during the pandemic and after so it was not a tough decision the buy. it might be tougher to hold just because in addition to the fat that the company's business is recovering the multiple has already front run that recovery to some extent it is not a cheap stock. i have a confession to make. i am brutally addicted to the

sous vide egg bides. they are shaped like the candy buttons you used to pull off the paper but they are protein i am going to stick with my starbucks. >> are you purchasing those digit lee or going in store? i am buying them on the app and then pulling the car into a shady corner of the parking lot where nobody can see me and literally eating six, eight. it is disturbing back to you, wilf. >> thank you very much roibd making a big hire ahead of its ipo. kate rooney has the details is this wilf, roibd is hiring a top google askedive as its first chief product officer. they are bringing in aparna who spent 1 years at google leading products worked on google search and youtube. roibd beefed up its staff in the

wake the gamestop controversy. announced on monday it with buy recruiting firm bink to double the size of its hiring team. roibd has hired from wall street and silicon valley in recent years this latest hire comes ahead of a highly anticipated ipo in the next coming weeks. back to you in just over one minute left, green across the screen on spds. >> not as great certainly. more stocks up than down looking a the voss it is improved but not necessarily an overwhelming positive number. wanted to look at fixed income indicators high yield hyt etf versus the investment grade etf, holding up good versus investment appetite. powell said he wasn't current approximate the level of yields unless it meant tightening financial conditions volatility, locks like we mike crack 20 again

that might be two straight close understand 20. some people think that's signature zmoont as we head into the close look at the major averages the dow is up 190. a little more than half a percent, near session highs after fed chair jay powell's message of support and no change on message our guidance. nasdaq also rebounding in today's trade as yields come off the highs up .4% small caps join the party, up .7% and lead the charge higher on a very strong close on a fed day. >> a record close no less for the dow. just about for the s&p as well welcome to "closing bell," i'm everyone i'm wilfred frost and sara eisen and mike santoli, cnbc senior markets commentator. as we just mentioned, the dow closing up .6% or 190 points close to its session high. and enough for a record closing high s&p at record close as well. up .3% the nasdaq up .4% itself

though a little way from its own record the bottom performing sector was utilities. the best performing sector consumer discretion father coming up, kkr's henry mcvay, plus wells fargo's mike mayo on the rally we have seen in banks and stocks he thinks will continue to roll on. josh brown still with us and joining the conversation are bored chief -- conference board chief economist dana peterson and david dove as. fed chair powell of course wrapping up his news conference moments ago noting an improving outlook and stood by the fed's current policy decision. >> the tools we have are the tools we have. what i am telling you is that the stance of monetary policy we have today we believe is appropriate. we think this our asset purchases in their current form which is to say across the curve, 80 billion in tress re40

billion in mortgage backed securities on net we think that's the right place for our asset purchases. now, we could change them of course in a number of different dimensions should we deem that that's appropriate for now woe think that our policy stance on that is appropriate. >> david, green light to keep buying stock in the short-term >> certainly seems that way. i don't think the chair wanted to get in the way of the market. i don't think he wanted to embrace the market's expectations for three rate hikes in 2023. we didn't think he would think way. but i think he really worked hard against this idea that there is some kind of falling behind the curve, credibility issue. he wants to see inflation shoot above 2. you saw it in the dots they have a 2.4 in the head lin. they bumped up their 2023 longer run pc to have an overshoot even before they are lifting off in

2023 according to the median these numbers were very comfortable numbers for the new framework of trying to make up for past mistakes on inflation misses, which we've got about nine years of now, wilf. we've got nine years of missing the pc inflation target by something like 60 or 70 basis points on average each year. and they want to do it let's go. >> he said inflation used to go up and stay up and that's not the case anymore and went back to the transitory transient central bank speak for temporary. david, my question is, you know, if yields continue to rise, then what how much longer can he take this policy stance of do nothing about it if we continue to see growth and continue the see inflation and continue to see rising treasury yields, despite what he has promised >> you know, i think they are going the watch those inflation expectations pretty carefully.

if we see some unruly behavior in the long end, and i mean unrule lee is probably 50, 75 basis points more, something like 2.25 ten-year notes or above, then i think they are going to try to say okay wait a minute, what have we going doing on here? is there something we are missing or need the calm the market down. if it is not sewing up in inflation and more just rates rising i think they will be happy with that. but that's where the rubber will meet the road for them it is going to be hard for the ten-yearing to beyond that if they are pinning the inflation at 2%. which they are trying really hard to do we are early days in the ten-year note being a drag i mean it is almost silly to talk about a 1765 ten-year note as a drag.

imagine transporting yourself back in time and saying that on live tv. people would laugh at you. et cetera just not a drag. even at 2.25, it is in the a drag i mean, the market is embracing it and i think it will continue to embrace it as a sign of success and liftoff in the future that will be carefully done by the fed in a controlled way. >> dana were any big surprises for you from the press conference no surprised by the year on year growth pace for gdp. indeed the feds that 6.5%. when we look at consensus forecasts, it is a little bit lower, closer to 5.9, 6% it seems like the fed really is anticipating a strong liftoff from the fiscal supports but nonetheless, we think the rest of the report of the forecast rather are pretty consistent with what we are expecting in terms of inflation, may be a little bit of a pickup

above target for a short period of time and then returning back to target over the next two years. >> for me, mike, another big takeaway was how he emphasized a number of times that this is doing to be data driven. we are going to wait this will we have proof of the better growth and better jobs numbers and higher inflation and not be forecast based i wonder if we are going to get into a situation this the market where the good news turns into bad news, where there is really good strong data points and then there are immediately questions about taking away the punch bowl. >> there no doubt will be those phases but what he is telling you is the fed itself is mott going to be anticipatory aboutet. the fed is essential will he saying for sec aids we were criticized for being behind the curve. we are intending to be behind the curve. it naeds to see what the market pain points are, a challenged equity valuation or a slow down

in the housing market at some point. i think powell would say you have $179 trillion hitting the market we are talking about 65% growth. nominal growth stretching toward 10% today. it is nothing that a 1.7 or higher ten-year treasury yield is going to stand in the way of considering for two years we had 2% growth, 2% inpolice station and 2% yields and people didn't think it was yields that was slowing us down. i think everyone can work together with this framework reasonably well. doesn't mean the stock market is the sky's the limit because it is sub to the overpositioning and crowding and exuberance that sometimes gets in and causes the pullbacks. >> lortstown motors releasing its quarterly results. phil lebeau. >> tees are the first quarterly results since lordstown motor competed its spac ipo. when we are getting for the first time here, no surprise, there is a prerevenue company.

a gap loss of 23 cents share really nothing to compare it with not much reaction on the number alone. no revenue to speak of at this point. what is of interest here is what they are saying in response to hindenburg research coming out last week and saying essentially look this 00,000 orders that's fictitious in the words of hindenburg research. they are not saying a lot. the call starts in a little bit. what they are saying, interest in the enturns pickup truck remains robust, they are working with fleet management companies to secure orders for that truck. these are reservations, not orders these are not people who said i will pay that money because i am interested in buying the truck they are scheduled to start construction on the endurance pickup truck if late september the finance call starts in a few minutes. the comments of hindenburg you can bet will be front and center on that call

we will look forward to reports from that call mike santoli a guess this is a sign of the froth. >> it is retrenching it is already i think trying to figure out and sort through what's real and what's not in there. >>, et cetera not going to be the only one when the opportunity is that big, you are going to get a lot of these kind of opportunistic capital raises we will see if this is the witness that has the real story toi kneel josh, are you in any of these ev plays. >> no. the one that i am really interested in but it is too expensive is kwan up scape i am waiting for like a general crash to see if i -- that's also preprevin. i actually think they have the answer solid state batteries versus the industry standard now. but it's like three years before their selling any of them, as great as the science is.

the valuation that you are paying, much like for all the other names in thespace like you really just have to hold your breath and pray they can get the commercialization. these -- i am not saying they are bad. i think it is great that so many companies are working on getting us to this electric future but i don't want to be the can on fahder in that every and most of these companies probably won't make it and i am not smart enough to figure out which one will at this early stage in the game. so i'm really not there. i am a share holder in gm, though and i think i will get the benefit this revolution by being in gm. and mara barra seems to be making all the right moves for electrifying that company. so that's how i am doing it. >> yeah, stock has taken off lately. we have more earnings. retailer, five below on the tape courtney reagan with the numbers. >> this is a pretty impressive fourth quarter from five below they are putting up eps of 220 the street was looking for 211

wretch stronger than expected at 854 million. the street was looking for 838 million. the first first quarter guidance also is higher than the street had expected but it's unclear if the street was accounting for 60 new stores to be added in the first quarter. but the guidance for the company accounted for those 60 new stores' earnings of 66 to 68 sens and 540 to $560 million comparable stales up 13.8% for the quarter. five below shares higher by 7.6% back to you. >> dana, pivoting back to the broader economic outlook if the fed is right and the u.s. is going to grow 6.5% this year, will we be seeing much higher inflation than perhaps people expect or do you think it is understandable the fed remains so dovish? >> i think the he could thing is

transitory inflation, also inflation expectations remaining well anchored around 2%. i think those elements will remain very important to the fed. again the fed already raised its inflation forecast and is still not thinking about ending tapering -- starting tapering rather, or even raising interest rates. not any time soon in the next few years. so i think that, you know, as long as this scenario plays out for the fed, that we probably won't see much differentiation in the forecast or even expectation for what the fed might do again there is still a lot of upside risk. our forecast with the conference board is very close to 6% for q 1. 4 q we are expecting the unemployment rate to fall close to 4% and still many people in different demographics having still very weak market indicators with all of that, the fed is

really looking to get to a broad sense of full employment and also to see inflation slightly above the 2% target for quote, unquote, some time before they actually move. >> we will leave the conversation there thank you to all of our guests, dana peterson, josh brown, david zervos for joining us today on a big fed day. bank stocks have been pulmoing with a more than 20% gain this year up next, wells fargo's mark mayo on the stock he upgraded and why he calls the company's ceo the einstein of banking. plus, an highser busch teaming up to create a spiked setter how this drink wl ilbe able to stand out in an up creasingly crowded space. "closing bell" back in 90 seconds.

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for a prospectus containing this information. read it carefully. let's recap where we finished on wall street. record close for the dow and the s&p. the dow was up close to 200 points big rally following the dovishness from the fed. the nasdaq had been down close to 1%. finished up .4%. sara >> mike santoli, what are you looking at today >> looking at small caps and whether in fact this real run that smaller stocks have had against larger stocks is maybe due for a rest look at a longer term chart. the catchup move the russell

2000 and the large cap of the russel 100 has been dramatic years and years of persistent underperformance it has close to catching up. an amazingly steep run the russel is more speculative than it used to. ned davis has taken a look at previous cycles, how this recovery in small caps around a major bear market low when there was a recession compares the prior instances. i mean it almost doesn't compare. the current cycle, how far it has come in a rapid amount of time this is just a generic kinds of all bull market when they start average. so clearly we have gotten ahead of ourselves also been an oddball cycle this time it was not a traditional recession. we didn't have the same setup. but it should not be surprising to anybody if maybe this thing

these a pause on a relative basis. >> amazing how much they underperformed until sort the election period. >> the switch was period. >> take off since then. still ahead, henry mcvaynd a now concerned investors should be on invasion, plus mike mayo on banks in a couple. how about us? yeah, how about us? great question. wait, can i get one in green? got one for me?! hey, what about me? what about us? is there an ev for me? ev for me? us? what about me? me? for me? ♪ ♪ (dog whimpers)

welcome back again, a quick check on markets. up nicely by the close, a record close for the dow, and the s&p bank stocks have been on a tear so far this year the sector which underperformed the broader market in 2020 has seen a dramatic turnaround in 2021 wells fargo out with a note signature they expect the outperformance to continue mike mayo, thank you for joining us the question now is what type of bank stock rallies last i don't remember was a year for the investment banks over the retail banks is that going to be the same this year? >> well, bank stocks are off to the best start on an absolute basis and relative to the s&p 500 in modern history. we expect that to continue in our view, banks are holding a four leaf clover

one part is the curve, the yield curve, the ten-year yield has gone from under 1% to over 1.6% just this year the second part would be credit costs where we expect railroad reserve releases, given the pace of the economic recovery the third part would be capital markets, which are staying stronger for longer. and the fourth part would be cost control we are seeing the biggest revolution in technology in banking's history. that should cause a better relationship between revenues and costs, so between the curve and credit costs and capital markets and cost, banks are sitting in a very nice place. >> what about buybacks i mean we are all all-time high force some of the stocks, certainly, 52-week highs obviously for all of them. should they still buy back as much as they had originally planned or is it better to use that elsewhere now >> i think there is a combination. if you look at -- you know, u.s. bank stocks relative to the s&p

500, they have still underperformed since the start of 2019. if you go back further in time, i still think these are some attractive valuations. having said that, there is buybacks, there should be long growth ahead but there is also investments. let's take a look at jp morgan this is also the birthday week of albert einstein jamie dimon likes to quotine stipe in that make things as sir as possible and no more. they put that into use e equals mc 2 for jamie dimon is invest during a downturn many asked what is he doing. they increased investment spending two or three times over the past years now it is looking extremely fortuitous, all this investing just at the time when tough

benefit to vaccines and stimulus and better economic growth maybe jimmy diamond is the einstein of banking object maybe he is holding a four-leaf clover but the whole tech investment spend aspet is certainly a good way the use your capital. >> always good metaphors, mike is this your top pick in the sector right now if show, which others do you like >> look, our top pick, you have a lot of what jp morgan has and a lot of different things is bank of america. it has been our top pick subpoenas the start of the year. they are the most sensitive to interest rates a couple fomc members are thinking about rate increases in 2022, 2023, any increase in rates certainly helps bank of america then citi group with their new ceo. and jp morgan as our best in class global bank led by jamie

dimon who really -- i have had my run ins with him over the years but i think really right now he is in the speed spot. >> what about morgan stanley and goldman sachs? strong 12 month performances are they less attractive to you right new or not >> worry going with goldman sachs over morgan stanley. gorman repositioned morgan stanley, but i think this is goldman's forte. organic revenue growth and they have record backlogs. trading activity is strong their legacy strength of over a century is coming through in spades if you think about it, they are number one in mergers. they have been number one in mergers for the last decade. and every single industry, and every country has to rethink their business plans so they are all talking to the likes of goldman sachs and so this is when they monetize their mine share into market share

>> mike mayo, we will leave it there. thank you. from wells fargo. when we come back, spiked seltzer sales are sizzling anheuser-busch is hoping its new partnership with travis scott just out today will make a splash had the highly competitive market the company's ceo jones us next. first, march is women's history month. we are is jenny herring ton with some advice in i would tell women to take risk early, stretch and lead and see what it feels like to succeed and see what it feels like to fail and do that at a time when your failures don't matter, when they are just learning experiences. and get used to sitting in the front row and raising your hand. if your question doesn't get answered, keep your hand up. m an idea in a chicago apartment nearly 20 years ago to a listing on nasdaq today. we help seniors compare and shop for medicare options

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shares of anheuser-busch still in the red for year. the company releasing a new spiked seltzer today in partnership with rapper travis scott who introduced the new product to fans with this commercial during the grammys. spiked seltzer sales surged over the past 12 months, over 130% year over year can the trend continue or will it fizzle out. joining us now for an exclusive

interview is anheuser-busch ceo michel dokeras it is a crowded area what are you hoping to do here >> this is one of the fast growing categories this we see in this space between beer, spirits, and wine. a lot of the new generation engaging with these products and we believe this will continue the grow double digits this year. in our case, we have like a portfolio approach we have bud light seltzer, bud light seltzer lemonade we michelob ultranow, zero caches, zero calories, real juice. the last to arrive on our production line, cacti it is different than the regular seltzer. it has more chore. has more flavor. has three surprising elements

when you have the aroma, when you drink, and the earthiness on the taste because it is made with agave from mexico and it is crewed together with a strategy hands on. we together have gone through the development process. we tasted several different prototypes and got into one that is very different, amazing, creative manifestation of this new beverage. >> we have covered here on the show the business, and really the influence of travis scott, when we have seen proof in mcdonald's he announced merch with this release. has it sold out yet? how did this partnership come together how involved is travis in the creative control and the whole process, the back story? >> that was an amazing launching. it took place yesterday. and we've been continuously

listening from retailers that they sold out in day one several of them are saying that they have never seen like this before, sold out in one day. and now our e-commerce platforms they all ran out of products yesterday by noontime, 1:00 p.m. we have seen people lining up in front of stores for half an hour, one hour to be able to grab the product we are ramping up production and deliver ree because we sold out completely yesterday as i said before, travis is all over since the ideation of what was the product that was -- he was looking for, he was super hands on on the development of the product itself, the flavors, the logo he was the director of the commercial that you saw during grammy's so he's really hands on all the time as much as we are from the

inside. >> does growth for this brad area of hard seltzers mean declines for beer? >> no. that's actually a gift for the beer industry, that you know the climate between 2010 and 2019. there was growth in revenues but volume was declining but because specifically hard seltzers source absolutely half the volume from spirits and wine we have been seeing the last 12, 14 months the beer industry everyall growing, driven by seltzers, but because seltzers are this the same aisle in the same stores as beer, people are going back to beer as well and beer becoming more refreshing, for more occasions, and more co-ed as well, seltzers they address a lot of consumer,

young generation, legal drinking age generation but is bringing new energy for the geyer category we are very glad the see that beer is back on growth pour the last 14 months. >> just on the category itself you mentioned you already have a lot of place, 16, 16.5 market share. is this a fight the number three against coors and consell thing ato be the number three market share player what do you think is going to happen to those ends as croak coala and spent drift enter into the category >> today we are the number three player by the end of february we got 19 plus market share and the consolidated month of february was above 17 share the other players are on a much lower -- you mentioned two players that are around 3% sharing the category and of course, as any growing category, wohl see a lot of proliferation of brands playing.

and we all welcome competition, because i think that makes the whole category much more exciting the leader lost close to 15 points of share in the last one year we gained, we doubled our share in the last one year and we are super excited with our portfolio and our lineup for this year. our whole objective here is to grow double of what the category is growing and we are super confident that we are going to deliver that with innovation, which is what consumers want, with brand differentiation, for example, what cacti brings, what michelob ultrabrings, and we believe that we have a very strong goal to market. our seller network, our relationship with retailers is strong and we continue to innovate because consumers want innovation and high quality. this is with a we are here to deliver to them. >> clearly this, category has a lot of similarities to beer, though it is not quite brews as

-- brewed in the same way in your history as a brewery. have you considered totally new categories, zero alcohol regular bevs or hard alcohol beverages in the also year, particular chi during lockdown? >> yeah, our core as you said is beer we have amazing brewers and brewing capabilities that's why we are able to innovate so fast this the hard seltzer space because it is a brewed beverage. we launched at the edge of last year budweiser zero. it is the fastest growing zero beer now in the market we are very glad with the results. the liquid is amazing. it is 50 calories, very low sugar and carbs beer we also have a brand in san

diego. it is a canned cocktail. all the cocktails you can imagine in a can we areincreasing distribution. so the brands that we have, the capabilities that we have as a company, we will always depend on our brewing capabilities and our beer business, but we definitely are expanding or horizons as a company beyond beer in categories that are premium, fast growing and things that consumers want so we can provide to them in the portfolio of offers that we have several options, same consumer, same capabilities that we have as a company, core is beer but we are definitely going beyond beer to adjacents that we can explore as a company. >> michel thank you for joining us. >> thank for having us pleasure -- >> cheers. cheers to you for that sad will he i am not able to join you medley. maybe later.

earns from william sonoma are out. also pager duty, josh lipton into pager duty reporting q 4 results here a loss of 7 cents the street was looking for a loss of 11en is. revenue better 29. q 1, a loss of between 9 and 10 cent revenues better than forecasts at 61 to 62 million. same deal for the year, a loss of 6 to 64 cents revenue better than the street was looking for, between 264 and 2 0. back to you all. >> josh, thank you big move letter for that stock let's get to courtney reagan with williams sonoma numbers >> very strong quarter here for williams sonoma. 395. the street was looking for 339 record reference at $2.29

billion. the stret was looking for 2.175 billion. brands up 26%, each of the brands up that much as well digital sales growth of 48%. e-commerce is about 70% of total. that's very big for a retailer of course this is a large catalog and on line business as well gross margins up 450 basis point to 42.1% the ceo is talking about a strong start to the year they are also raising the dividend and issuing a $1 billion stack buyback program. shares of williams sonoma up 9.5% in response back you the. >> court thanks. the fed afoupszing a bullish economic forecast for the year coming up, kkr's henry mcvay on why the growth story could last past 2021. lorts lordstown just reported a quarterly ls.os

the call is under way. we will bring you any highlights the stock is down. this is how you become the best! [music: “you're the best” by joe esposito] [music: “you're the best” by joe esposito]

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rahel solomon. a twister has leveled homes in mississippi, and another hit in alabama they prepare for more tornadoes, heavy rain, and some areas will receive hail as big as tennis balls. robert long has been charged in deaths of eight people at three atlanta area spas. authorities are investigating the motive for the killings. in japan, gay rights activists are celebrating a landmark ruling. for the first time, a court has found that the nation's ban on same-sex marriage is unconstitutional a new law would be needed before same-sex marriages can take place my how about this? a yard sale fine of the century sold for even more than expected this 15th sentry chinese bowl was bout for $35 at a yard sale in connecticut. the buyer brought it to sothebys where it was valued at $300,000 to $5 horse power,000. today it was auctioned off for

more than $720,000 from $35 one of on seven in the world quite rare, and apparently quite expensive. >> a big jump. that's crazy rahel thank you. stocks finishing the day higher after fed chair powell's press conference up next, kkr's henfree mcvay shares his takeaways and what he is forecast forth the rest of 2021 "closing bell" will be right b back

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become an agent of innovation with invesco qqq. ♪ dow and s&p closing at record highs following today's press conference fed officials ramping up growth expectations here's what chair powell said to expect on the inflation front. >> talking about inflation is one thing. actually having inflation run above 2% is the real thing so i -- you know, over the years we have talked about 2% inflation as a goal but we haven't achieved it. i would say we would like to, you know, perform. that's what we would really like do is to get inflation moderately above 2%. i don't want to be too specific about what that means because it is hard the do that. we haven't done it yet when actually above 2% woke do that. >> henry mcvey, kkr, head of global macro and asset

allocation joins us now. along with mike santoli. thank you for joining us that was the sound bite on inflation, what about the headline point of upgrading gdp forecasts. is that going to be a up with year event or can it last for a while? >> it is going to also for a while. what separates this recovery is the huge amount of savings that we have coming out of the recession. the second thing the cyclical economy that autos and housing are booming. ultimately i think you are going to see more corporate investment if you think about what happened in texas with the power down there people are going to want to build in resiliency issues between china and the u.s. on trade wars people are going to reinvent supply chains. that's going to lead to stronger -- and it is happening at a time when monetary policy has been accommodating and fiscal is quite extraordinary. >> griffin that backdrop, where

do you want to be investing right now, henry what parts of the market >> great question. obviously we are -- asia is leading the recovery we continue to be focused onnisha in terms of real estate, infrastructure, private equity and even credit. what we are really seeing is as companies are doing better they are starting to reposition their footprints [ indiscernible taking place globally in the private equity world one of the things we talk to investors about and we are focused on as a team is more of a cyclical recovery. in the past decade every time you had economic growth all you wanted to do was fade that and buy secular growth stocks. that's why you ended up with the concentrated faang stocks that you have been reporting on what is happening right now -- i saw michael's comments before about the big boom in the small caps i mean that's what we are seeing, right? we had 200 companies globally. we are seeing a real improvement

in the kind of small to mid-sized companies that are benefiting on the good side. what is encouraging right now is we are seeing certain -- starting the come back that's going to accelerate as vaccines get rolled out more, not only in the u.s. but in europe where growth has been more tepid. >> you mentioned briefly infrastructure what does that entail in terms of investment opportunity right now? is it tied to whatever government program might come out? or you know is it about investing in real assets that already exist out there? >> really, when we are seeing from our approach is this huge energy transition. we estimatedit's a $3 trillion annual spend as people go away from carbon towards renewal. you can play that ultimate pell ways w. china the u.s. and europe going green in many ways but all three them are barrelling down the road to

improve their carbon foot inwere second is around fiber people think about infrastructure as a smaller growth industry. what we are seeing is thinking but that data usage is exploding. it helps data centers. finer in the ground, towers, those are all really strong investment >> thank you for coming on henry mcvey. always good to hear from you still to come on the show, an mft tax surprise cryptoolrs hde could be in for a big shock. we'll explain. ♪♪ in boxing or any other business, one day, you're gonna take a hit you didn't see coming.

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said that the orders that have been promoted by ceo steve burns, they call them fictitious they're saying they're not orders they are letters of interest, if you will, and therefore, that is one of the reasons why they believe that lordstown motors is misleading investors the call also included steve burns saying that a special committee has been formed by the board of directors to look into this matter. they will have no further comment until that special committee has finished its review so that's the reason you see shares of lordstown motor now down more than 5%. >> up next, it seems like everyone is getting into mfts. if you're using crypto currencies, you may be in for an unpleasant tax surprise. the details only ahead plus, creating an economy. initiatives to create equity for all. check out a full line-up and register for tomorrow's event at

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could be in for a. at a break >> the irs says if you have a gain, you owe a tax if you're using it to buy an nft let's say you bought ether and it is now worth $1,800 today, use that $1,800 to buy nft you would owe capital gains tax on the gain in that ether. so that's a tax of $340 if you held it for less than a year, that's a short term gauge so the tax would be over $600 the reason is that the irs considers crypto a capital asset and not a currency if you exchange it for any good or asset, you immediately recognize the capital gauge or a loss if you sell your nft for a profit, you also pay a tax of 28% on the gain. so they tax you buying and they tax you selling. guys >> you've been warned. i guess you have another month

the irs just pushed the tax date back to may. >> looking ahead to tomorrow, we've got some big earnings out. fedex, flyinnike after the bell. signet jewellers, we'll talk to the ceo on this show tomorrow and i guess we're looking for any follow-through on the fed rally that we saw today. >> yeah. i think that's right you start to see a little of the assessment of exactly what it means. the market, there's very little change in stated fed policy. they should be able to make some peace with it. it normally is just up to whether this treasury move is finished even though it is in unchallenging levels, it has been trading inverse yields to the nasdaq so it has been a little bit of a head wind. we also get weekly jobless claims so we'll see how that starts to shape up if at all macro expectations, everybody repricing assets for a very fast period of economic growth.

>> strong for gold but not for oil. >> no. oil, that's now a growth proxy and the dollar going down does show you that people pushing out the first rate hike which is ironic in a expense the fed wasn't giving any reason would it happen but some people must have been meaning way. we'll break it hours lows a report claiming fraud. we'll bring you all the details. and later, tonight's fast take did u.s. taxpayers get fleeced by bailing out the airline industry did it even need to happen we're digging in on the sky high outrage. we start the show as we did last night with