and immovable object how prime day sales will hold up it's friday, june 18th "squawk box" begins right now. good morning welcome to "squawk box" on cnbc. i'm becky quick with andrew ross sorkin joe is off today we start off checking out the equity futures at this hour. this is an incredible week fed moves and other things in play after all of that, you see things evening out dow futures off 3.5 points that comes after the 210 points down yesterday and the down day the day before after the fed decision came out. all of this crescendoing at the

end of the week. s&p futures are down fractionally the nasdaq off by 121 points yesterday. the s&p was off fractionally, less than 2 points treasury markets after all of the things we have been watching this week, you see the 10-year note back below 1.5% we pushed above 1.5% and got close to 1.6%. after the fed decision that they are likely to raise rates in 2023 than 2024, this morning, back to 1.489% 2-year is the other one watching the curve has flattened out. 2-year back up to 0.21%. those continue to climb. it is the 10-year that has come back down. > >> commodity prices have been

down lumber up 14%. corn and platinum down 6%. the losses were steeper yesterday, andrew. first on wednesday, we saw the chinese government really making moves to end the high prices we have seen. saying they released some metals to make sure that prices like copper and aluminum and the fed this week. the dollar strengthening on the fed news with rates raised higher than previously anticipated. you saw movement on that things evened out a bit. you are seeing pressure on the commodities that have run up the last couple months sdp. >> we will talk to mr. bullard this morning i don't know if you saw jim cramer he thinks it's over. >> let's hope.

the unbelievable spikes we have seen the fed is really making more of a statement that strengstrengthd the dollar when the dollar strengthens, that is good news to bring the prices back down from the sky high levels. let's talk about the study out of the uk about covid. it is suggesting long-term loss of brain tissue from covid which could have long-term consequences this is dr. scott gottlieb on "the news with shepard smith." >> you could compensate for that over time. symptoms may go away, but you never regain tissue if it is destroyed as a result of the virus. >> dr. scott gottlieb said the destruction of brain tissue could explain why covid patients lost sense of smell. he will join us in the next hour to dig into the implications of the study. lots of conversations to this

very day about whether you should get vaccinated or shouldn't get vaccinated there are people who think younger kids may not want to get vaccinated i think parents think it is better they get covid and the answer is it is starting to be clearer and clearer that vaccination may be the right answer we'll talk to dr. scott gottlieb about that >> you know parents who think it is better to get covid like chicken pox >> i know parents who have a view that unfortunately, not mine, but to each his own. they are not prepared right now if the vaccine was available for their child to get the vaccination. we know adults who have the same view i think as more and more data comes out about the impact and effects of the disease, there are more and more questions

about the implications of getting it >> i have a lot of questions for dr. gottlieb on this, too. he said you can compensate, but if you lose the tissue that was previously letting you get your sense of smell is that a permanent loss is there no way to compensate for that i don't understand how that works. we have him coming up. we have a chance to ask those questions. a new warning on the covid delta variant originally discovered in india. w.h.o. says it has been detected in 80 countries and continues to mutate as it spreads it makes up 10% of all new cases in the united states that's up from 6% last week. data suggests that the delta variant is around 60% more transmissible and the uk variant. the symptoms can be different. top symptom is headache and sore throat and runny nose or fever

younger patients have a weird or off feeling. the astrazeneca vaccine is effective against the hospitalization if you get the delta variant. adobe shares trading at the all-time high. it is the biggest gainer reporting 3.3 cents per share. revenue beating guidance which was higher than expected digital media revenue up 25% over the year. the company's ceo said they had an outstanding quarter of the cloud software and what has become a digital first world becky. boeing's biggest 737 max model is set to take the initial flight today it will mark another milestone since thegrounding

the max 10 is the 737 model to take its maiden flight since cleared new hain november. it will provide extra leeway as boeing works with regulators if you check out boeing shares, they are up .90% 35 cents a share >> when you book, becky, do you ever look at the plane >> nope. >> i think most people don't >> i think -- i don't know so many other things going on. sometimes after the fact, i wonder what i'm booked on. while i'm doing it, i never think of it. think i know you won't book yourself on. cruising carnival cruise line plans to resume service without becky on board, from los angeles, san francisco and ft. lauderdale as soon as this fall.

becky, i'm with you. i'm not leaving you out there by yourself i'm not on this cruise line. the announcement comes after collaboration with government officials and guidance from the cdc which earlier this week eased its stance on travel safety for vaccinated passengers carnival shares on a hot streak this year and this morning it is not because i think i'm going to get covid on board, but because i'm not a cruise kind of boat person. i haven't really done it maybe i'm wrong. >> i haven't done it either. the only time i considered it was a cruise to alaska i think that's the best way to see alaska. >> yup. >> a time when i considered it my dad's never been to alaska. that would be a fun trip. >> we did alaska without the cruise it is doable we can talk offline. when we come back, so much more we wrap up with a has been a

wild week in the markets we talk about the fallout from the fed's decision and some portfolio moves to consider next. later, a rare interview with tony ressler he is the owner of the atlanta hawks. game six coming up he is coming up first in the 8:00 hour. we're right back after this.

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welcome back to "squawk box. take a look at u.s. equity futures on this friday morning we are close to three hours before the markets open. if it did, we would be down 45 points nasdaq is powering higher. s&p 500 off four points. joining us to talk about this is barry and victoria barry and victoria, great to see you. barry, i saw you on twitter. you had to go to sleep early to see us this morning. i hope you have been thinking a lot about what has happened this last week. it does feel like, you know, if we had this conversation monday to friday, a lot has changed i don't know is the growth trade back on? is that what's happening here? >> well, the growth trade is

performing well for several weeks at least, if not longer than that. the initial thesis was we reached peak reopening related inflation. so-called transitory piece of inflation. i wasn't going to mention that word because i heard becky say she is tired of transitory nonetheless, there's no doubt that used car prices and the like hit maximum reopening related velocity that was a reasonable thesis those of us that believe we are moving into a higher inflationary environment post-pandemic, would look through this i would say the same with respect to the fed this week i put out a note to clients ahead of time saying the dot plot had to change it was nonsensical not to expect the rate hike until 2024 this fed is far less interested

or confident in forecast than the case with the greenspan and bernancke or yell een fed i expect economists to walk that back partly because if they let the forecast hang out there, they have gone from, you know, state contingent asset purchases and getting forward progress to time base because they locked in to tapering within a set timeframe by the end of the year i think they will walk that back they are two payroll reports away from getting that tapering process. i think the process will start in the fall. >> barry, before i get to victoria, how are you positioning your portfolio as a result of the thesis >> i've been in the reflation sector and materials and

industrials since summer i upgraded in technical. my long-term thoesis is digita digitalization i have cyclical exposure in tact software and semis in part capital spending was impairedb the pandemic, but impaired by the trade wars we will have a robust recovery in capital spending. that means software. i would never have the growth versus value trade on in its entirety i have been under weight on the defensive sector in health care and the like >> victoria, how have you been positioning your portfolio let's make the point you talk about the inflation stocks you think banks. citigroup is falling look at cat and deere.

they are rolling over. look at the stocks of facebook and google again right? >> i don't think you want to look all one way or the other, andrew you never want to chase the market obviously we have seen the rotation with growth and value and back to growth again we like that exposure. we like the exposure to the secular area you talked about adobe this morning. that is a name we purchased recently we like that internet space. regardless of what is going on with inflation, this is an area in high demand as companies build out i.t. infrastructure and people work remotely and start determining how they allow employees to work from around the world. we like that exposure. you do need to look at some of the longer term trends that developed during covid and continue you are talking about financials and maybe the big banks are not exactly where you wanted to be, although we own jpmorgan chase

look at mastercard and visa. you get reopening exposure, but you still have that financial and cyclical play to it if you see rates move higher which benefits them. you need both in the portfolio one of the recent names we bought is oracle it has the catalyst within the cloud software space this is the time to pull out your shopping list it is not an easy time to build your portfolio you are really going to have to go to the shopping list and get specific names >> barry, i want to know what you take off your shopping list today. >> i don't take anything off i don't believe the larger risk event that transitions us from the early stage of the business cycle to mid stage is going to occur until this fall. i think we will get a round of fed speeches where they walk

back the rate forecast and try to obfuscate it. we will work back where the buy partisan negotiations breakdown and we need to price the long end of the curve or another round of deficit spending. that pushed markets up this year that will happen again that will start the reflation trade. in the fall, i think we will mark that transition and say what do i want to be in through the entire cycle not what am i in because this is the early stages of the business cycle. >> barry, victoria, it is fascinating. we will see what happens this fall and what happens with the infrastructure package and everything else and how the fed may or may not react to it have a great weekend i appreciate it. >> thanks, andrew. when we come back, we dig

into inflation and the fed's next move with st. louis fed president jim bullard. that is coming up at 8:00 a.m. eastern time you don't want to miss it after what we heard from the fed this week we will get jim to give us insight into how they are thinking. it is official juneteenth is a national holiday. frank holland s rehamo about closing the racial wealth gap. that's next. we'll be right back. mentation. fermentation? yes. formulated to help you body really truly absorb the natural goodness. new chapter. wellness, well done. (vo) nobody dreams in conventional thinking. it didn't get us to the moon. it doesn't ring the bell on wall street. or disrupt the status quo. t-mobile for business uses unconventional thinking to help you realize new possibilities on america's largest, fastest, and most reliable 5g network. plus customer experience that finds solutions in the moment.

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since martin luther king day was established in 1983. the day has taken to new meaning with many to highlight the importance of economic equality. frank holland is joining us now and tracking all that down good morning >> reporter: good morning, becky. the racial wealth gap is $11 trillion it could balloon during the pandemic according to the research from duke university. as we recognize the holiday, one united bank is launching the one transaction campaign and listing six decisions to bridge the gap. buying a home, owning a business, investing in the stock market, buying life insurance and improving credit and buying a will these are the building blocks of generational wealth. >> building wealth is like building anything else building a house

if you know how to assemble a house out of raw materials and to construct them in a very specific way >> reporter: buying a home is the biggest investment for anyone black homeownership has declined over the last 25 years white homeownership held steady at 74% according to the report from mckenzie, 60% of the gap annually is created through inheritance. highlighting a need for estate planning and wills and creating a can be inexpensive as $10. a notarized document is legal in all 50 states. >> frank, if you are trying to close the racial wealth gap, what would be the impact be on

the economy? >> reporter: closing the gap would create 615,000 new black businesses according to them, byproduct is increasing prices for homes and stocks and long-term issue if you look ahead to 2028, it raises gdp by as much as 6%. >> wow impressive great to see you thank you. >> reporter: good to see you, too, becky okay coming up when we return, amazon kicking off prime day sales event on monday. we get you ready for two days o consumer prices and deals. as we head to break, a look at the s&p 500 winners and losers we're back after this. i became a sofi member because i needed to consolidate my credit card debt. i needed just one simple way to pay it all off. it was an easy decision to apply with sofi loans,

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good morning welcome back to "squawk box" here on cnbc look at futures on this friday morning. we are down on the dow moving higher on the nasdaq.

dow off 55 points. if we opened up right now, nasdaq looking to open up 22 points i said dow jones should be down 55 points. i misspoke the s&p 500 would be off 4 points for those listening to us on radio, becky. andrew, thanks amazon is moving up the prime day sales to start on monday, june 21st. courteney reagan is joining us with more on the event that will move from the third quarter to the second quarter >> reporter: monday as 3:00 a.m. is when amazon kicks off the seventh and earliest prime day yet. it is eight months since the last prime day in october. delayed from the summer because of covid the date shift into the third week of june puts prime day in amazon's second quarter. that was a quarter last year that saw sales surge as covid-19

raged and consumers turned to online shopping more than ever before typically prime day falls in the third quarter. amazon never discloses sales days like prime day or cyber monday the marketer report shows it will grow 19% to $11.81 billion over the event y beyond the tracking sales, the key goal is attracting new members. you have to have a prime subscription to get the deals. bezos' flywheel strategy extends to the deals discounts and best sellers are the amazon products. firesticks and kindles and other private label goods. as they face scrutiny or being anti-competitive and hurts small business, the giant is trying to

spotlight market sellers it is funding a spend $10 and get $10 propmotion with 3,000 retailers eligible and with global supply chain trouble over 70% of amazon third- th third-party sellers are anticipating shortages becky. >> you are right it was only eight months ago we saw the last one that was a really big one to have in october. remember, they could not do it in july with all of the problems they had from covid and trying to get things and have people in the warehouses then they pushed it to october and it was a big deal. people were already doing holiday shopping by then how do you think it stacks up in terms of the revenue numbers based on what we saw from october? >> reporter: so i do think we will see growth from october, but the growth rate will be less

from years past. when you are looking at a closer year over year comparison. again, right now is a quieter time for retail. sometimes you see back to school spending you have a lot of kids still in school in parts of the country if you move the event up more, that pulls the sales back as well i think we will see an increase from last prime day. it may not be the growth rate as high was we have seen in years past. >> courteney, thank you. great to see you the retail competition for consumers flush with cash right now is heating up as we head into the summer. let's bring in jeronne martis amazon is not the only one doing this walmart and target as well is this a big bonanza at this point? >> becky, this is like the black

friday of the summer season. the competition is fierce and they are coming in fast and furious. when we look at the model, it is evident that they have become bullish on the companies because of the performance during the prime event held this earnings season ain nalysts have been revising e numbers and they are likely to do so because of the high scores in the model when we look at the competition, it is very evident these companies are doing everything they can, especially target. they have been really hyping up the consumer in order to get them ready for next week and offering discounts on gift cards this week to spend the following week >> let me ask you this, it doesn't seem like there have been many bargain was retail consumers are so ready to spend money, you have not seen it.

do you think there will be real bargains when it comes to this or is this going to be a win for the retailers as well because they are not offering deals that are as steam and the margins will be in better shape than in the past >> absolutely. since march, the average promotional discount has been coming down in the united states it is interesting because in a time when the average promotional discount has been going down, target has been increasing the level of promotion with products and amount of products on sale and discounts. as a result, in order to lure the consumers. what is different this year compared to the other prime events, retailers are offering price matching this is where target stands out. they have the capability of not only matching the amazon price, but offering an additional 5% discount if they purchase at

target it is very important to know the psychology of the consumer the consumer doesn't only want to purchase the item, but when they get it, they want to pay the lowest price possible for that product they will r5eally try to figure out the best way to get the best deal for the product that price matching is giving retailers an upper hands >> even with the promotions, we have seen problems even with the ceos we talked to. they are having trouble to secure inventory it is hard with the supply chain problems that cropped up if you offered a discount, how much does that exacerbate that problem? >> it is interesting because that was the biggest topic during the earnings season last quarter. a lot of the retailers were vocal about this we are already seeing that, you know, companies like best buy for example, they are changing structure of the store in order to lower the cost they are

seeing related to shipping retail has had all shipping issues during the pandemic they are reducing the footage of the brick and mortar stores for fulfillment to reduce costs and get them to the customer in an efficient way and increasing customer loyalty we are seeing that already with retailers are talking about that and reducing the brick and mortar footage, they can cater and offer more products that cater to the local community retailers are not lazy about survival they are trying to change the store structure to lower costs >> things have been moving quickly. they had a heck of a last 14 months jharonne, great to see you coming up in a moment, we have executive edge.

we will tell you why major companies are posting job listings which exclude the state of colorado. don't miss our interview with ares founding manager tony ressler with his take on basketball and more. you can watch us live or anytime on the cnbc app. beautiful shot of the capitol a bk teg.mornin wereacafr this ♪all by yourself.♪

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welcome back to "squawk box" this morning on a friday morning. u.s. equity futures and where they stand up. dow up 40 points nasdaq moving higher up 25 points we talked about the rotation trade in favor of growth s&p 500 is off about 2.5 points right now. in the executive edge, we are highlighting remote work you have to read this. big companies are hiring for remote positions that can be performed in any state in the u.s., except, ready for this colorado that's because a new colorado law requires companies with even a few employees in the state to disclose the expected salary or pay range for each open role they advertise the aim is to narrow gender wage

gaps and create pay transparency companies are trying to avoid to make the pay data public web site called colorado excluded tracks job listings and says the work cannot be done in colorado companies like cardinal health and twitter, hilton on the list. the judge upheld the law against the legal challenge from a hiring trade group the journal piece noting many companies, including amazon, do now include pay information specific to colorado on remote job postings what do you make of that, becky quick? >> that is the law of unintended consequences if you have an employer saying you can work anywhere except colorado, unless other states pick up that law. in which case, it is more broadly helping and it gets more complicated. the companies cannot avoid if you have other states picking

up on the same thing, then it is a different story. >> where do you stand on the law itself that, to me, is more thorny. >> i'm torn. i get it how can you possibly know if there's a quality or equal pay going out unless you are making these figures public at the same time, i understand why companies don't want to do that because you have a million different reasons why somebody makes the salary they make is it over the time they have been there is it over the experience they have from other places that they brought in is it the timing sometimes you are lucky with timing you come in at a good time with a tough job market and employers are fighting for talent and you get paid more. employers want flexibility i don't know how you can solve for that question of equality without transparency it is complicated. >> i think i'm with you. i don't know what the right

answer is. you want to know in the broad aggregate. i'm not a believer i know companies are making, you know, salaries public. literally individual salaries public. >> for everybody or people who earn a lot of money? >> no, no, no. there's a bunch of companies out there now making it policy it is sort of the age of transparency the argument is we will tell everybody what everybody makes and everybody knows so there is no gossiping on the watercooler or slack >> that seems like a bit of an invasion of privacy at the time you are not allowed to ask somebody if they had the covid vaccine. >> it is when you take the job, you know going in. a lot of people seem to like it. it is, in a way -- >> humble brag >> i don't know.

in a way, it is the opposite it is almost -- i don't know i don't want to say unionization we will get into a different debate the company says it has the same effect, in a way, because of the transparency i don't know >> transparency is hard to argue in any situation when you dig through what that would mean, especially in companies where it is built up over years you can imagine the bad feelings unless they were quickly able to equalize everybody's pay i know msmaller companies which have done that it is a good thing if you find out all of the women or whatever group is left behind it is probably a good thing. it is hard to argue. i know it is complicated it is hard to argue against transparency check out shares of broadcaster fox. up 3% on news the company is

doubling its stock repurchase program to $4 billion. ceo mu ceomurdoch saying it is increasing the cash flow. check out the times square indicator at this hour there's the traffic taking place. andrew, i have to tell you, people walking and talking about what you see on the streets right now. there is a new report from "the wall wall street journal" which said 30% of office workers have returned to big cities we'll talk more about this after this >> announcer: executive edge is sponsored by at&t business our people and network will help keep you connected let's take care of business. oh,. okay, imagine this... your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown,

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♪ as the country starts toreco see travel and retail sectors rebound. however, the rebound hasn't really included people returning to the office, at least not in force in big cities. "the wall street journal" report found that only 31% of office workers have returned to their work spaces in those big cities like new york, san francisco, los angeles, washington, d.c let's try to figure out how this is impacting the commercial real estate market. joining us is scott roeckler he's the former vice chairman of the port authority in new york and new jersey this has been really interesting. seeing people come back and feeling like things are reopening but we are not anywhere being back in full

force. what do you think is happening >> that's a little bit of a landing indicator. we have seen with all of our clients, they're all starting to come back to the workplace when president biden announced he was going to have every american that wanted to have a vaccination by july 4th, we've seen our occupancies in our buildings double today we'll talk to all of our clients. they expect to be back in their offices in some form no later than right after labor day that's 100% of our clients with 25 million square feet in new york city. so i think it's a process that's happening. and then you see that just in new demand in terms of people retu returning. it all starts with talent. we've seen record numbers of people leasing apartments. in april we had 9,000 rentals which has never been done in

terms of multi-family rentals. the people here, the companies are focused on opening up in a way that gives their employees a sense of comfort that's going to be safe, protected to come back to the workplace but at the same time recognizing that it's a process and when they come back it will be a little bit different workplace environment than before. there will be some mix of hybrid working but they're coming back. >> when you say occupancy doubled, doubled from what percentage to what percentage? >> to your point, we were hovering around 10% and now we're at 20% across our portfolio of people. >> why is there 31% outdated? it sounds like it's less. >> that's major cities around the u.s. new york and san francisco it's more like 20% in those the article was referencing 20%. this is a lagging indicator. i will tell you with all

conviction, i've been a bull in new york, been on your show for this whole last year i'm surprised how quickly we're returning to the new normal, how normal that new normal is. if you are in mid town today, every restaurant is packed you can't get lunch reservations people are bringing their clients back tore lunches, dinners in their offices when they're there. it's returning quickly and i think this last past week when we've hit the 70% threshold in new york state and a lot of restrictions have been removed, it makes it that much easier to bring people back. it's something that i have a high degree of conviction that we're going to see a great return i'll tell you demand from the companies looking at spaces has been kicked up we've never been as busy as we have been with companies that are new companies looking for

new space needs. we went to lease on a 200,000 square foot plan law firms, 100,000, 200,000 square feet. there's activity this market has grown. >> scott, what does the hybrid work life look like for you in terms of buildouts, the space you have or companies are looking at in terms of more meeting rooms, more offices? maybe not even -- sort of open floor plans. there's a great article if you saw it in "the atlantic" talking about whether we'll move to a four day a week schedule in offices over time. >> i do believe the hybrid work is going to be a way of the future, andrew what's interesting, there is an analogy.

there is ecommerce and you buy things online. you have to give them a reason to go to a mall and if not the malls didn't succeed they have to go there and there's an experience and a means to get there the workplace needs to be a place where people come and have active engagement, energized, get a sense of loyalty and purpose. that will require not only space or more designed to encourage that sense of collaboration, ideation thinking more of open areas, mixed workplaces with living places, with common standard areas and kitchens and amenities that are in that mix so it will require more intentional programming and activation what you don't want is people to come back to workplaces and sit in front of the computers and do video conferencing you want to be engaged with team members. part of that is using data to monitor what's actually

happening. >> hey, scott, we're almost out of time. really quickly though, we've been talking this week about what happens when you do have everybody back driving into the city i can tell you with the restaurants taking up lots of parts of the road on the way in, there's not going to be parking for those commuters who used to be coming back into the city there's going to have to be a real big shift i don't know what traffic looks like when and if you have everybody come back after labor day. >> that's a good point if you look at the mobility stats, the traffic on the streets is above where we were in the pre-pandemic levels you look at the public transit still down at 50%. the real answer is, becky, we have to get people back on to public transit do you ever feel safe? the nypd are putting more and more cops at subway stations they have to say, look, i don't want to sit in the traffic we have to have people return to

public transit. >> maybe they say i don't want to sit in traffic so i'm not coming back, they don't want to sit in the subway because it's crowded or the alternative is they say they're not coming back. >> the best example why that is not going to happen is what jim gorman said this past week here's a ceo when things were really dire was questioning whether anyone was ever going to come back. basically he said, there's not going to be patience after labor day. that is a consistent theme we've heard from every one of our clients. right now they're giving people some flexibility >> right. >> after labor day people will be expected to be back they'll be expected to be back. >> scott, thank you, good to see you. >> you, too. thanks for having me. when we come back, a big lineup including darren williams, james bullard and tony

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good morning and welcome back to "squawk box. welcome to cnbc. joe's off today. take a look at u.s. equities at this hour on friday morning, 2 1/2 hours before the market is set to open. the nasdaq will be powering higher the dow will be off about 60 points the s&p 500 is going to be off

about four points as well. here's what's making some headlines at this hour markets are still feeling what i think is the impact of the fed's updated view on inflation and interest rates the u.s. dollar on track for the best week. 9 months after the fed predicted higher inflation possible rate hikes. that's also impacted them. the price of gold is declining on the other side. series of bills coming up in a couple of days the house judiciary will vote on the bills next wednesday committee approval will move the bills onto the full house. meantime, nielsen has unveiled a new ratings metric which shows exactly what viewers are watching and how nielsen says americans watch streaming services 26% of the time up from just 20% last year. they're still spending 64% on network and cable tv

the rest of the time devoted to watching reported shows and playing video games. so if you didn't think that streamers had room to grow, if you thought they had taken over, they haven't yet i don't know what that says about legacy media, traditional linear tv, whether that means it's going to stick around longer it's fascinating to see those numbers. i don't know if you saw reed hastings take a little bit of a dig at hbo max they were not on the list. reed went on twitter and said jason keilar, you've got to get on that list a little bit of a numbering. >> yeah. >> andrew, we ran out of time with our last guest, but i had so much more i wanted to talk about with that. just the idea that i think its workers hate the commute when you're going back in the city, more than you hate being in the office it's not the office that's scary or a pain, but if you are talking about tougher commuter times with 30% of the white

collar workers back and it's worse than it was prepandemic, the street's more congested from the restaurants that spill over, that's what people hate. i had a conversation with brian moynihan off camera the other day. he said you can't confuse people not wanting to go back to work and people not wanting to commute. if you are commuting into one of these big cities, you may have been commuting an hour it was before if you are talking about a longer part of the day, you realize what it's like to get the two hours back to do more work, seeing your family or something else, that's what people complain about. that's going to be the bigger issue. employers may say, that's it, you have to come back. the question is will the workers say, okay, go along with it? will they be saying forget it and find a job somewhere else. >> maybe it will become a regional issue meaning certain areas, if you're out in l.a., that's a long commute. in certain places a bigger commute than others.

other people live closer to work maybe there will be shifts like that over time >> mack's here mack's got a two hour each way commute. >> what did you say? >> mack is here. he has a two hour commute each way. >> right right. >> crazy. >> then there's a question of where people decide to live, which is another big question. maybe people will shift where they live as a result of this. >> could be. >> want to live closer to work if the work requires you being there. >> could be. that's how we're kind of watching things to see how this all shakes out after labor day. let's bring in dom chu he's been following interesting market themes this morning what's on your radar. >> becky, andrew, i was listening intently to the last conversation you were having anecdotally, i've been in studio all pandemic and the traffic is way worse now than it was just a few months ago by the way, look at all of the people who have moved to the suburbs trying to commute back to the city. traffic is an issue. check out what's happening right now on this week an interesting theme is developing here with regard to the outperformance

technology has reemerged as the best performing sector in the s&p over the past week meanwhile, materials, that's that commodity trade, the worst performing sector overall. down week for the s&p so far technology reasserting itself. 26% of the index interest rates a huge part of that discussion this week. the difference between long term and short term interest rates, people call it the yield curve that has been kind of flattening out a little bit you can see it's moving lower into the down side here. it took a little bit of a drop over the last couple of days as some positioning in the treasury market made it so they had to rush in and buy treasuries and cover positions moving interest rates lower. that's a key part of the story that translates into what's happening overall in certain key parts of the market, specifically with regard to the banks. check out j.p. morgan chase, bank of america, citigroup and wells fargo. each is down in the premarket after getting hit hard they had a selloff day today

citigroup is one in particular we want to focus on. right now i'm going to show you a chart on this. citigroup is working on 11 straight down days today would be 12 if it goes lower again. lower in the pre-market. during that 11-day losing stretch we are down 14% for citigroup shares also for the money centers, trading operations whether the comparability is there to replicate the trading values and then one last check here on some of the crypto and meme stocks you can see bitcoin is up just a hair, about half a percent at 37,919 ether is down. 2354 amc consistently one of the top five most searched tickers and clean energy fults, els, numbero the list

up 3.8%. beck yirks andrew, there's a lot of stuff going on. no surprise on the fed interest rate. >> dom, can i just say, you da man. you're the only one who took me up on my photo bomb challenge. i department see it live i just got a copy of it that was sent to me of you photo bombing somebody yesterday you don't have it, do you? >> i don't know if i have it >> i'm going to tweet it out. >> i put it on your twitter. >> you did >> i missed it it was my friday gift to you so i -- you know, becky, i love you. i take what you say to heart so when you call me out on twitter and you say, hey, let's make this a photo bomb day, find somebody, and luckily enough, you know, kelly evans and i have a great rapport, great relationship she's a good sport i was working on "power lunch. i thought i might sneak in the studio and get in a photo fwom

the end of "the exchange." i don't think our supervisors were happy. >> i heard about that. i'm sorry i kind of egged you into this and got you in trouble on that. >> that's okay. >> very sorry. i am impressed it's a friday. getting into summer. lighten up, everybody. it was awesome well done. >> i do it all for you yes, please, keep egging us on we always take our inspiration for you guys. >> got to have fun somehow well done, dom i'm going to check that out. it made me laugh out loud. i issued this challenge after we were on air to anybody who was still on air if you can get a photo bomb we did one with mike santoli impressive fun, right >> i have to work on some photo bombing. if i did it, it would have -- i used to, by the way, try to walk outside occasionally, outside where you are there. >> right. >> and get behind you back in the old days but you could never really see >> i know.

it's hard to see through the windows. >> visual was not good. >> it works. we have a lot more coming up on "squawk" this morning as the nation is preparing to mark juneteenth the ceo of southern bancorp. first as we head to a break, check out this morning's biggest nasdaq movers. stay tuned, you're watching "squawk" on cnbc

welcome back to "squawk box," everybody. things have weakened a bit dow is off by 117 points this comes after losses in the last couple of sessions ever since we heard from the fed. s&p down by 9 1/2. the nasdaq is indicated up by 4 1/2 points now andrew >> thanks, becks juneteenth is now a federal holiday. commemorates the end of slavery in the united states president biden signing that bill into law making it the first new national holiday since martin luther king day was established in 1983. over the past year many in the black community and business leaders have been using the holiday to highlight inequality. frank holland is joining us. frank. >> good morning, andrew. black banks gained an additional $1.5 billion in lending power since the death of george floyd

created by a $150 million increase in equity capital generated by large financial institutions investing in them and higher deposits. the banks offer more than 85% of loans to black home and business owners according to the national black bank foundation really highlighting socioeconomic impact of black banks. mortgage lenders deny black applicants at a rate of 87% higher black business owners are two times as likely to be denied financing according to brand-new research from mckenzie they are emphasizing to large corporations that every dollar invested with a black bank turns into $10 of capitol that might otherwise not be available for black borrowers. >> every corporation, if their values are on paper and their press releases are saying they support equity, support

opportunity for all, they need to think about the institutions in the black community that are fighting that fight and allow black banks to compete for the business. >> in december the national black bank foundation facilitated an historic deal between the nba's atlanta hawks and providing $35 million in financing for a new team facility the owner of the bucs is activitily working with black banks to help them generate more equity capital back over to you. >> frank, before you go, black banks have seen what seems like a big influx in capital. is this supposed to fix the disparities we've seen on the lending side at this point >> andrew, yes and no. for the people who have the ability to access those 18 black banks, absolutely. but we have a graph we can show you. there are so many fewer, 1/3 fewer black banks than there were a decade ago.

the access to the banks have decreased but the lending power that does exist has increased. >> frank holland, appreciate it. joining us to discuss what it means to serve under served black banks is darrin williams he's the ceo of southern bancorp. they serve black rural and agricultural communities great to see you this morning. just listening to frank, i'm curious if you were to opine on why you think there are so many fewer black-owned banks today than there were in the 1950s and '60s >> thank you for having us on today. i think this is an important question so when you think about the structural inequality in society, the systemic issues that black and brown people face across america, the same thing holds true for black owned banks and it just reflects the same

type of problems, inequalities in america that's why you see people join black banks today. >> what do you think of the efforts of big banks today in america? there are lots of advertising campaigns, slogans and whatnot i'm curious how you look at them in relation to some of the work that you're doing, for example >> yeah, so right now minority project institutions, black banks and cdfi. really appreciate corporate america and wall street are choosing to partner with us.

that turns over 10% in leverage in the market we're serving. we will make sure that those at risk communities that have been left out and left behind will have access to that. we want the banks to partner with us through equity look at their lending policy and see what's holding them back we do welcome the partnership. >> what do you make of large corporations, netflix and others, who have decided to deposit some of their money in mission driven banks and how that relates -- you talked about equity there's the deposit issue on one side and the equity issue on the other. >> yeah. that's important as well a deposit builds a relationship. what banks do that takes the deposits, they relend those. the deposits are important right now most bank's kind of flush with deposits. it's equity capital that will

expand leverage, allow you to grow bank of america has made a multi-million dollar investment and so has square. they are a leading payments and financial technology business. one of the most innovative businesses we think the way we scale our business, the way we reach more and more black under served communities is through technology we're excited about the partnership and learn from them in the financial technology space. >> but speak to the equity issue, which is how -- i mean, to the extent that you've identified what are clearly challenges and hurdles, you know, what the investment world needs to do to almost open up these opportunities. >> well, got to pay attention. you have to be intentional you can't solve this problem without being intentional. i applaud what the wall street banks are doing and other corporations are doing

being intentional and saying we want to work, we want to partner, we want to work with mission banks to bridge the gap we see in racial wealth. we want to tear down the systems and structures and to not access the capital for many people. the fdic says 15.8% of african-americans and 12.2% of hispanics don't have a basic bank account they're unbanked you get them in the financial mainstream, they're going to have an impact on the economy. that's going to help everyone. >> darrin, i have a final question a bit of a curveball now that juneteenth is going to be a holiday, should the markets close for juneteenth there are national holidays where the markets are closed and not closed >> sure. sure i think it's important that we recognize the past if you don't sometimes recognize the past, you're deemed to

repeat it. this is an important day for america. i can understand as quickly as this holiday was passed by congress, why they may not be closed today, but i sure hope that they recognize and give honor and respect to this national holiday going forward in years to come obviously i would love to see them close we sure will do that as a financial institution. >> darrin, it is great to see you. we appreciate your time and perspective on this important day. thank you. >> thank you, andrew. still to come this morning, exclusive interviews with st. louis fed jim bullard and ares co-founder tony ressler. time for today's aflac trivia question. in what year was wikipedia launched we'll have the answer when we come back. go aflac!!! what the heck, troy - that's not your kid! the aflac duck is just covering for sophie.

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welcome back, everybody. the answer to today's aflac trivia question. in what year was wikipedia launched it was founded by internet entrepreneur jimmy wales and project developer larry sanger

2001 it's a friday and we are diving into friday at this point. dow futures indicated down another 140 points after losing what was it 210 points yesterday and even more the day before you're looking at the s&p 500 down by 13 points and the nasdaq off by 12. if you want to take a look at treasury yields, that's been where we've been watching things on wednesday you saw a big jump. it's sitting at 1.489% the yield is all the way up to 0.214% i think it hit the highest level it had been in a year. it was all the way up at 0.207 now it's climbed from there. what you're seeing is the yield curve starting to flatten out some you can check on the big banks and see how they're fairing with this come back down a little bit. j.p. morgan chase off by half a percent. citigroup off by .6.

morgan stanley off by 1/2 a percent. >> is this the great rotation? rotating the opposite direction? >> i don't know. you mentioned jim's call about commodities. some have rebounded but i think jim's probably right, hopefully it was the high water mark for some of these commodity prices for some of the inputs they have been under an incredible tear. >> meantime, you want to talk toys >> sure. >> my children want to talk toys investors may want to talk toys too. watch hasbro and mattel. "the new york post" is warning of a potential toy shortage, folks, this coming holiday season the paper saying thousands of toys that are ready for shipment remain stockpiled in china due to a lack of shipping containers that are available forex port. so i don't know. this could be -- in my family, this is a real problem i don't know, i think this could be a problem across the board

but i don't know maybe santa and his elves are working very hard in the china situation. unrelated. >> maybe santa can get us some relief. >> we can hope is there a supply chain problem up in the north pole >> i sure hope not still to come this morning on "squawk box," dr. scott gottleib on the covid long haulers and some of the troubling health concerns we're hearing about. we're going to talk to him about that as we head to break, check out the biggest dow laggards this morning. look at goldman sachs off over a point. down 357 right now stay tuned, you're watching "squawk" on cnbc ♪ ♪ i had the nightmare again maxine. the world was out of wonka bars... relax. you just need digital workflows. they help keep everyone

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good morning, everybody. welcome back let's take another look at the futures because we are crashing into the end of the week at this point the dow futures have weakened. we're down 140 points. yesterday the dow was down 140 points the losses are starting to kind of add up. we'll see where we are week to

date s&p futures down 10. down fractionally. wavering back and forth. if you really want to see some action you have to check out this week's moves in the commodity prices they dipped broadly following an incredible runup lumber this week is down more than 14% corn and platinum both down more than 6% this week. by the way , the losses were don more. the idea the fed is going to increase strengthened the dollar china stepped in and tried to

make a big deal to do things to bring down prices, things like releasing some metals from their supplies, metals like copper and aluminum all coming out and saying they'd crack down on speculators in the market. that added some chilling to it this week we have seen a vast turn around from that nowhere but up move on any of these commodity prices. >> yes, we have. yes, we have meantime, we talk about annual meeting season because it's coming to a close and it happens and ends this week it's been a breakout year for environmental, social, governance issues known as esg leslie picker has been following all of it from the beginning leslie. >> hey, andrew it is near the end of annual meeting season this week one which sought unprecedented action e stands for environmental, huge jump in average support for climate related shareholder

proposals. many large investors pledged to engage with companies to shrink their carbon footprint their votes increasingly reflected that commitment. the s or social came into effect blacks made up 1/3 of new members and female 40% for many experts it was the g or governance changes that came as the biggest development. >> perhaps the most seismic development that we've witnessed so far this year is with shareholders rejecting executive compensation packages and the reason for that, i think, is that investors, mainstream in particular, are getting more and more comfortable voting against management, making their voices heard at the ballot box. >> an unprecedented 4% save on

paper. >> so i'm curious what you think the real implications are this year more importantly, what may happen next year, leslie we asked iss about this, what are companies doing to prepare for next year given the way the votes went this year, which i do think caught a lot of companies by surprise. see said it's all about chris cl -- disclosure a lot of companies in the pandemic moved their goalposts they expected the business to go south amid shutdowns and so forth. investors didn't like that, especially given that the market did so well. a lot of compensation packages did go up. more disclosure on that front. more disclosure on climate and more disclosure on diversity, on the board and in the rank and file of the organization >> okay. leslie picker, great to see you.

have a good weekend. >> you, too. andrew, an update on the corn futures contract we were looking at a minute ago. it looked like it dropped off the cliff, it's because the futures contract role we were looking at july but it rolled to december that's why it was not a bad trade. didn't go crazy. corn prices actually up by 3 1/4% when we come back the ceo of atai, it's going public on the nasdaq today first though when we head to a break, right now we're going to check out the biggest s&p 500 movers on the winners list adobe at the top of the list up by 3% you're watching "squawk box" and this is cnbc

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welcome back to "squawk box" this morning we are still watching the futures. dow down 138 points. s&p off by 11, nasdaq down by5.

boeing's newest version of the 737 max jet is set for the maiden flight this morning that is the largest in the 737 max product line the dow component up by 8 cents. it had been up higher earlier this morning, andrew. >> we've got some other news for you this morning a biotech company using psychedelics to treat mental illness is going public. it priced at $15 a share at the high end of the expected range. expected to start trading on the nasdaq under the ticker atai joining us is the ceo christian angelmyer. good morning to you. >> good morning. >> so tell us about the business for those who don't know about it i have to admit, i've only now read up as much as i can about the world of psychedelics.

>> i'm sure you took it in your youth. yes, treating mental health issues with, as we said, psychedelics to have the potential to soften or even cure them >> so what kind of psychedelics are we talking about what kind of dosing are we talking about? how does this work >> so there's a broad range of them the most famous is magic mushrooms. the active ingredient is psilocybin it was in south america they call it something else there is one that cures addiction and many more. by the way, we also have some non-psychedelic compounds. i love to be seen as the psychedelic company, which we

are, but the mental health community is so huge, 1 billion people suffer, that you need a broad spectrum psychedelics is one group we develop. >> what is the regulatory environment look like for this >> if we stay with psychedelics at the moment they are illegal so you can't take them, at least not in the u.s., europe. there are a few countries in the world where they are legal we want to bring them back in the medical world. they are very, very powerful medications but they have to be taken under supervision. we want to make them medically available for in hospital use or use with a therapist you will be tripping while you're sitting with your they are -- therapist >> tell us about your progress and what would be required to

make it legal for those types of applications. >> we have two, biotech has three. we've been progressing we should be some years away from the first approval. >> what is your broader sense of just the politics of this? because when you say psychedelics, there is a lot of people who the hair stands up on their arms and backs and say we don't want to be in the psychedelics world >> it's interesting you say that because i do think ithas changed the last 12 months i agree. when i started the business in 2017, 2018, this was the reaction i was always worried

some of the compounds we have like famous magic mushrooms have been used in some countries in the last country so it's not crazy. our entire portfolio has strong evidence as i said, it was either used medically. it's really another solution >> thank you for having this conversation what does this world look like >> the world will be a better place. >> mental health issues.

the world we're building, all the tech, it's good for our brain. i could go on for hours. the world we're building is a bad place for our brain so mental health issues will go up but i do think we have some real. >> i hope you come back so you can continue discussing where this is headed thank you. >> any time. bye. >> when we come back, troubling new study suggests that there could be a link between covid and long-term loss of brain tissue however, the story is much more nuanced than just that doing some research. dig into the details we'll talk to dr. scott gottleib about it after this. coming up at the top of the hour don't miss our conversation with st. louis fed president james bullard. stay tuned, you're watching "squawk box" and this is cnbc.

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there's a new study from the u.k. that shows there may be a link connecting the coronavirus and long-term loss of brain tissue joining us to talk more about the findings is dr. scott gottleib former fda commissioner and cnbc contr contributor. scott, it's good to have you here this morning. i was digging deeper into this

there are concerns because this is a small study but it does show that there is potentially some brain matter loss, especially the gray matter in the frontal lobe when you're comparing different patients what did you think about the study? >> right the study's getting a lot of attention in medical circles it was a well-done study they follow a small cohort of people and they track them and look at different health outcomes they look at people who had scans of their brain they looked at those who developed covid and those who did not. they found pretty consistent loss ever brain tissue, cortical matter, in parts of the brains that are responsible for things like smell this could partially explain why some people who have covid experience a loss of smell they may be experiencing some

damage to the parts of the brain that are associated with the smell function but it would also suggest that there could be other sequelae, other effects of this brain tissue. it's not clear what the clinical impact is. it's not clear how durable it is they didn't follow these patients over time to see how some of this loss of tissue regenerated. we know there's limited plasticity regenerated it is concerning to see what appears to be a pretty concerning loss of brain tissue. the final component is the loss of tissue didn't correlate with the symptom severity it's pretty uniform. patients who are more sick and hospitalized didn't seem to be any worse off than patients who have milder symptoms. >> i took a quick glance of it i thought they were comparing patients who actually required oxygen therapy with those who

didn't require oxygen therapy. because if that's the case, that would kind of seem like, okay, that makes sense to me if you have lots of oxygen to the brain, that would certainly lead to more brain damage. >> it was looking across a broad population it could be the case that the effects that we're seeing, so this loss of tissue is some kind of micro vascular effect what's happening is the virus is having an impact on the micro vasculature. we know covid is a very vascular disease. we're finding out the impacts it has on the vascular system it's unclear how durable it is when i spoke to doctors, they wanted to see the patients followed up over a longer period of time. it's unclear what impact it's having, if it's having an impact on function. seeing anatomical changes as a result of the virus in the brain like this is concerning. i think it does change the equation in terms of how we think about vaccination and

natural infection. i think this is a virus you want to try to avoid. >> meaning that you would recommend it for kids, too, because the cdc is having a meeting today. their outside committee on all the risks associated potentially with the vaccines from heart issues and other ideas you would say that this puts a little more weight on the idea that, yes, you should go ahead and get these vaccines >> i think that that's the case. i think this tips, you know, the equation more in favor of vaccination for kids who were presumed to be at lower risk i think also the delta variant does that as well which seems to be more contagious and perhaps more pathogenic. i think the accruing evidence tips heavily in favor of vaccination. there are a small number of people who still say covid doesn't seem that bad, i'll acquire immunity through natural infection. i don't think that's a sound judgment if you have the opportunity to acquire immunity, you should take that opportunity. >> the delta variant that you bring up is concerning because we did see a big jump in the

number of delta cases here in the united states. i think it was 6% a week ago of all cases where the delta variant and now it's 10% how concerned should we be about that what's kind of the trajectory that we should expect? >> yeah, there's some good modeling floating around policy circles. it compared 75% of the eligible population being vaccinations which is where we'll land versus 85%. you do see a resurgence of infection in the early fall, starting in september. certainly not at levels that we experienced last year. now when you break this down and look across the different states, there's wide divergence. in connecticut there's no up

tick in infections in the fall but in states like arkansas, alabama, mississippi, missouri, you see a sharper uptick i think what's likely to happen is fall is likely to see a regional effect and states that have low vaccination rates, we'll see an up surge. all of these models don't take in the effect of natural immunity i don't think the effect will be as stark as it shows it shows a surge in the 23fall >> with that as the backdrop and you realize when kids go back to school in late august or early september, anybody under age 12 won't have been vaccinated we've been talking about this. folks think it's not as

dangerous. with the delta variant and what you said with the study for potentially cutting into making you lose brain matter, those are a little more concerning what would you say to people as kids are going back to school? keep the same restrictions in place with the masks until that population is vaccinated, too? >> look, some point we will have a vaccine available for kids under 12 moderna is working on one too. as long as we take steps in schools, we have a high vaccination rates among adults, i think it will substantially reduce the risk for kids israel, u.k., when the adults get vaccinated the risk of outbreaks in children go down substantially. in many cases kids are catching the infection from adults, not other kids there is a way to create a safe environment in schools by vaccinating the adults and taking some steps in the

schoolhouse setting to implement it and avoid outbreaks >> more than what we've seen this year? most people think next year will be a more normal year. that's not the case? >> i think it will feel like a normal year. we will start with mitigation effects. i think it's likely to be the case that many schools will start the year with some form of social distancing and perhaps masks in schools with states that allow it. that wouldn't be imprudent that would be a prudent thing to do heading into the fall we don't know what the situation is going to look like and whether or not the resurgence is mod modeled. that's what the models show. i think the summer's relatively secure even though the delta variant is going to become the most prevalent strain. it will be relatively low

levels remember when we saw the outbreaks in michigan, for example, we saw the big resurgence in michigan, a lot of spread was driven by schools when the schools reopen. the schools have shown they can be a source of community spread. >> dr. gottleib, thank you always great talking to you. have a great week end. >> thanks a lot. we've got another big hour of "squawk box" still ahead. you don't want to miss our exclusive interview with st. louis fed james bullard. he'll take us inside the room of the fed and all that took place over the last year plus ares co-founder and atlanta hawks owner tony ressler ahead of game 6 here "squawk box"ilbeacafr is wl bk te with a hybrid, you can do both.

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from corn to copper. tracking for big weekly declines after a new message from the fed on possible rate hikes and a spike in the u.s. dollar this hour we'll help you make sense on a wild week for the markets. we'll be speaking with jim bullard and tony ressler as the final hour of "squawk box" begins right now. good morning, everybody. welcome back to "squawk box" here on cnbc i'm becky quick along with andrew ross sorkin joe is off today we're watching the u.s. equity fut futures. dow down 150 points. s&p futures down by 12 nasdaq off by 15 week to date, dow is already down by 1.9% for the week to

date s&p is off by 0.6% the nasdaq has been higher up 0.7% for week to date treasury market important to be watching right now, too. after the fed's decision, you did see the 10-year yield really bump up almost to 1.6% that has come back down. check in on deflation. the 10-year note yielding 1.47%. the 2-year is up 0.216%. you now are talking about the yields on the short end of the curve moving up. we are keeping a close eye on commodities after we've seen things like lumber, corn, soy beans and copper fall drastically this week. china announced a plan earlier in the week to release reserves

of key metals and wednesday the messages about higher inflation and a likely sped up time line did put upward pressure on the dollar that is a negative for commodity prices many have reined in the gains and come back down here's the dollar index. you saw that big move on wednesday. it's been holding steady keeping the gains we've seen this week the fed's latest message is where we're going to start fed chair jay powell gave no time line when the first post pandemic rate hike would come. now pointing to potential increases by the end of 2023 rather than waiting until 2024 as had been previously forecast. joining us to talk about this is former fed chair jim bullard do you think the market has

taken the right message away from this, that it looks like things are going to be moving sooner rather than later there's definitely concern about higher inflation and the fed is more on notice at this point >> yeah, becky thanks for having me it's a pleasure to be here i think the committee has been a surprise to the up side over the last six months. if you look at the december 2020 seps, we were projecting 4% real gdp growth in 2021 now we're saying 7% real gdp growth faster than china has grown in recent years we were projecting 1.8% oncor pc inflation, now we're saying 3% oncor pc inflation we've got unemployment coming down dramatically through the year to 4.5% through the end of the year this has been -- we were

expecting a good year, a good reopening but this is a bigger year than we were expecting. more inflation than we were expecting and i think it's natural that we've tilted a little bit more hawkish here to contain inflationary pressures. >> jim, that's what people are kind of watching, the inflationary pressures it would have been hard for the fed not to acknowledge the gains we've seen when you look at this, would you sayok t , okay, this is good nes or wait a second, we need to be hawkish and concerned because this could lead to inflation that got out of hand >> surely overall it's very good news you love to have an economy growing as fast as this one. you love to have a labor market improving the way this one has improved unemployment way down from the

14.7% weak at the last spring. so i -- and i think we'll continue to see lots of improvement in the labor market. the inflationary impulse is more intense than we were expecting the 3% oncor pc inflation, how long has it been since we've seen that? i think there is some up side risk to that you have more reopenings to occur in the second half of the year here. some states and cities just opening up now so i think you could see even some up side risk to the inflation forekcast but that's okay we're going to achieve that in 2021 and 2022. then we're going to approach 2% inflation from the high side i think that will be a good path for the u.s. economy and that will help cement longer run

inflation at 2%. so so far so good but we do have to be nimble here. these are big numbers. >> jim, on the fiscal policy side, if, in fact, the biden administration and congress end up passing an infrastructure bill, and i don't know what size you think it may end up being, how do you anticipate that impacting your dot plots, if you will, in terms of what the fed will ultimately do >> infrastructure is a longer run and what do we need to replenish that and how will it impact the longer run? the spend out on that extends over many years and i don't quite know where this stands but we are looking at pay fors

in my estimation this is a different thing than the stimulus packages that were passed during the pandemic and meant to handle pandemic insurance for disrupted workers. this is more about the longer run growth rate of the economy i don't think it would affect monetary policy all that much over the next couple of years. >> hey, jim, how much of a conversation do you guys have about what's happening in the equity market? how much liquidity there is just all over the globe, what we're seeing in the rise of cryptocurrencies and the like? >> you know, the committee has -- excuse me, the committee has a regular review of the state of froth i guess you would say or the idea that there might be market excesses we've gotten much better at that over the last decade than we were before the global financial

crisis so we do have regular discussions. it is a topic and it has been a perennial topic way back in 1996 so i do think we have our eye on this we do keep track of it you can talk to the individual members how much that's impacting the proper path of monetary policy. >> jim, just last month you had said right here on cnbc that you department think it was necessary to start tapering just yet, that that was something you would be waiting to take cues from fed chairman jay powell what do you think now? it's been a month and a half since then >> well, the chair officially opened the discussion at this past meeting and now we'll have a chance to have more in depth discussions coming ahead here.

i don't know quite how the chair wants to organize that, but i do know from past discussions on the committee that it's quite a complicated thing. there are lots of moving pieces in the taper the pace you've got mbs versus treasuries when do you start? how state contingent is the paper? i think these are all key factors and i'd like to emphasize the state contingency aspect in the 2013, 2014 taper we went on automatic pilot and didn't do much we said we would react to income data to be fair, i think we didn't have to in 2014. this time around, look at this data look how outsized all of the numbers are and how volatile everything has been. i think we are going to have to be more stay contingent than we

have been. >> that's interesting. at this point the fed is about half the treasury market would you anticipate you move out of treasuries first or you move out of mortgage-backed securities >> you know, there's a lot of discussion about the mortgage-backed securities i don't know where that's going to be. i'm leaning a little bit towards the idea that maybe we don't need to be in mortgage-backed securities with a booming housing market and even a threatening housing bubble here. >> right. >> according to some people. so we don't want to get back in the housing bubble game. that caused us a lot of distress in the 2000s so we'll see where this comes out some people argue there's not much difference between mbs and treasuries so there's no reason to go one way or the other i would be concerned about feeding into the housing froth that seems to be developing. >> and when you talk about this idea that it's going to have to be data dependent, you'll do

this and see what happens, is that an indication you won't say we're going to cut by x amount this month and continue to do that every month it will be you see meeting to meeting how much you think needs to be happened and that is what is telegraphed to the market after the fact >> that will have to be part of the debate, but i've long been an advocate of being more number bl and being more stay contingent in 2014 we didn't have to exercise that option but this is a situation where we might have to exercise the option you don't really know where inflation is going to go or the economy as a whole you've got a lot of reopening to come here. not just in the u.s. but across the world during the second half of 2021 and 2022 the world is

booming the way it is today. we'll see have to be ready to make adjustments as necessary as we go along this path. >> jim, somebody came on our air yesterday, i can't remember who it was, they said, look, here's what we anticipate the fed has signaled it will be watching inflation closely you can bet you will be watching fed presidents and fmoc members coming out and walking that back so the market doesn't get spooked. you're not doing that. the dow has taken another leg down as you started talking about this if you were looking at this, you would say it's not that we're walking it back, movement will come sooner rather than later both in terms of when you raise rates and when the tapering starts too >> you know, the taper discussion is open and the chair made that very clear but it's going to take several

meetings to get organized on all these different points it's going to be a healthy debate, i think. the chair has said we'll give markets plenty of time to react. we'll be very methodical he said all of these things in the press conference i would echo all of that that is all completely true. that is what's going to happen, but i would also say it's a complicated debate and, you know, actually i'd welcome input from financial markets and how they think we should do this you know, the pandemic is coming to a close here and so it's very natural that we start thinking about how to pare back emergency measures, but we want to do it carefully and thoughtfully and in a way that i think is consistent with, you know, continued boom in the economy,

continued improvement in labor markets and continued containment of inflation pressures. so i think we'll do this very well in coming meetings, and i think the chair will guide this process excellently. >> jim, i don't know if you had the chance to see it but paul tudor jones was on with us monday he is deeply concerned about inflation. so much so that he said 5% of his portfolio is now in gold and 5% of his portfolio is in bitcoin. and i was curious what you think of that. >> well, i wouldn't give him advice on how to allocate his portfolio. on inflation, we were expecting inflationary impulse but this has been more than what we were initially expecting. now the committee is saying 3% for all of 2021 oncor pc

inflation which is a committee's favorite measure 3.4% headline inflation for all of 2021. that's the committee median guess at what's going to happen in 2021. so i guess, you know, one thing you could say about that is we said we were going to try to get inflation above target and looks like we'll succeed some of that will spill over into 2022. the ideal path in my mind would be the 3% this year will be okay and then we'll get that down to 2.5% next year and we'll converge to 2% from there. but to do that, you know, we're going to have to adjust policy some we've already made a somewhat hawkish move here in june? >> jim, we've had conversations with you about crypto over the years but i am curious about what your take is on those who believe that bitcoin is the ultimate inflation hedge

>> i don't know. if you want to bet on inflation, go to the tips market and that is a clear bet on cpi. that seems like the purest way to play this i know people like to make more plays on other types of assets, but those assets move around for other reasons other than inflation so it's not a pure bet on inflation. >> is there a new view or emerging view that's shifted in the last 12 months around bitcoin and crypto inside the fed? >> we're doing more on central bank digital currency. the chair's given a speech recently, which you can check out on that. governor brainerd has given speeches on this i've commented on central bank

digital currency i think there is a growing realization that we have to do what we can to provide a good product in this space. we've also got our fed now program which is on track to open up next year. i think these things are all related in complicated ways. it's always hard to read how the technology is going to play out. you have other central banks looking at central bank digital currency we'll see where this lands yeah. >> jim, the idea of central bank currency, is that to crowd out or take over the role of these emerging cryptocurrencies? is that credentializing these other cryptocurrencies how do you see the relationship between them look, you would think the fed would want to control the

dollar, right? at some level this is a fiat currency and it could potentially, if the bitcoiners have their way, turn out to be a threat to it, at least that's what they would say they want it to become. >> well, i'll speak for myself my goal with central bank digital currency would be that we're keeping up with technology and providing a good service to the public i think the idea that cryptocurrency is like -- is a technical thing is probably the wrong idea what's different about cryptocurrency is that it's a privately issued currency. i think the last time i was out here i said milton friedman said if you allow private currency issuance, everyone is going to issue their own currency we've seen thousands of cryptocurrencies being introduced

freeman friedman was right he was an advocate that only the central banks should be allowed to issue the currency. that having been said, you have multiple countries issuing their currencies they compete exchange rates are extremely volatile compared to economic fundamentals the same thing is happening with the private currencies being issued, the cryptocurrencies trading at volatile rates against the dollar that makes them not that useful for a lot of purposes. >> hey, jim, i just want to try and figure out where you are in relation to the rest of the fomc the rest of the dots are looking for rate hikes in 2023 but some are looking at 2022. where do you come down where's your dot >> i put us starting in late

2022 but you do have to have the idea that these are related to what the forecast is my forecast said 3% inflation in 2021, core pc inflation, and 2.5% core pc inflation in 2022 but if that's what you think is going to happen, then by the time you get to the end of 2022 you'd already have two years of 2 1/2 to 3% inflation. to me that would meet our new framework where we said we would allow inflation to run above target and then we could bring inflation down to 2% over the subsequent horizon now i'd just caution everybody that other members have other forecasts for inflation and some of those if you look at some of those bets, they're below 2% in

2022 so this is very much a debate about what's going to happen in 2022 is the inflation that we're seeing in 2021 going to persist into 2022 or not and i think for those that have dots further out, they're most likely associated with a forecast that sayings that the inflation will go back down below 2% during that year and then the committee wouldn't have to -- you know, wouldn't be oriented towards raising rates at that point. i would say also about this that these are things far in the future in an environment where we've got a lot of volatility so it's not at all clear any of this will pan out the way anybody's talking about it so we're going to have to go meeting by meeting to see what happens. >> can i tell you just as you've been talking, we went from the dow down 150 to the dow down 324 and we're looking a the the 10-year right now. i know you can't see this necessarily on screen. we were looking at 10-year yield

of 1.44 and change and now it's 1.51 that's happened just since you've been talking. does that surprise you. >> did you say 1.51 on 10-year >> yeah. >> to me that doesn't sound too different from where it's been in recent trading sessions it was up around -- >> it's not. it was there it's different than where we were 20 minutes ago. >> yeah. yeah >> so, no, guess not >> yeah. you know, i don't know markets move around. i think, you know, giving an accurate description of where i'm at on the policy outlook. >> it's fair you were one of the more hawkish members on the dot plot. >> the median is in 2023 i would say about that that, you

know, it's unclear the way we do the dot plot, it's unclear it's at the beginning of 2023, the end of 2023. when you submit the dots you don't have to say too much about that whether somebody put, you know, late 2022 or early 2023, you know, you can't really tell based on the way we do the dot plot >> jim, want to thank you for your time this morning we always enjoy talking to you so thanks for being so generous with your time and we hope to see you again soon. >> happy to do it. have a great weekend. >> you, too. that's st. louis fed president jim bullard. andrew we should probably point out today is a quadruple riching friday that's not what several people had anticipated hearing from some of the fed presidents this week >> right. >> it may have been rick rieder who told us that yesterday, barry knapp mentioned it this morning, too they anticipated the fed gave its toughest talk already and

maybe what we would see is a parade of fmoc members coming out and talking it back. that's not the case of jim bullard. one person on the fmoc dow are down by 360 points when we started that interview 20 minutes ago the dow futures were down by 150 again, you can see a similar move in the treasury market for the 10-year too. >> more hawkish i think than some had necessarily anticipated. we're going to talk about that and so much more when we come back with another can't-miss interview private equity investor tony ressler will talk to us about markets in the second half of the year after they moved the rate hike projections earlier. stay tuned you're watching "squawk box" on cnbc

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"squawk box" this morning. take a look at futures they are moving and moving in large part i think based perhaps on some of the comments we've heard from jim bullard a bit more hawkish than i think had necessarily been anticipated. nonetheless, the dow looking like it would open down 321

points nasdaq has moved down lower. 86 points down s&p 500 off 30 points. we're going to talk a lot more about the comments from bullard and the stocks moving from the break. back in a moment wondering what actually goes into your multivitamin? at new chapter, its' innovation, organic ingredients, and fermentation. fermentation? yes. formulated to help you body really truly absorb the natural goodness. new chapter. wellness, well done.

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hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world. we were expecting a good year, a good reopening, but this is a bigger year than we were expecting. more inflation than we were

expecting and i think it's natural that we've tilted a little bit more hawkish here to contain inflationary pressures. >> that was st. louis fed president jim bullard on "squawk box" a few minutes ago he had a lot more to say he came out sounding more hawkish not only on that front but has said the chairman has opened the door in terms of looking at when they can start tapering on some of those asset purchases that the fed has been doing both when it comes to the tresh ril market he's not sure the fed will be in it at all. he doesn't want to add anything more to the housing boom or bubble that's getting a lot of attention in the markets now too. dom chu has been looking at some of the charts moving on the comments you have a lot to choose from.

>> hei was watching what was happening with the charts and interest rates and all of it was happening during that conversation as we take a look at the market impacts and ripple effects of this, we take a look at lumber, it hasn't moved yet. some of the commodities we are going to deep an eye on. soft ones like soy beans and corn, gold, platinum showing to the up side. curious, copper showing a little bit of a decline again, coming off some of the highs we've seen overall you can see down 1/2 of 1% the hard and soft commodities will keep a close eye on that's part of the commodity picture. lumber, of course, the bubble-type move we've seen. other places that we're watching right now as we've seen longer term interest rates actually tick higher, it's still not helping out the banks. we're going to watch that difference between longer and shorter term rates to see if that has any real momentum

j.p. morgan chase off 3/4 of a percent. citigroup could be having a 12 day losing streak at this point. morgan stanley and goldman sachs still in focus whenever fed speakers come out and interest rates move on the markets. other places we'll keep an eye on the megacap technology and communications stock, the faang names and more facebook off 2/3 of 1% amazon half a percent of a decline. alphabet and apple these move when interest rates do if we are seeing a level of higher interest rates, that could bode at least poorly for some of the growth oriented technology in media and communications technology stocks all about valuations and assumptions. we'll keep a close eye on those as well. it's really interesting, becky any time a fed speaker comes out and makes the comments james bullard of the st. louis

fed not a voting member of the fmoc this year that falls to raphael bostick, evans and daily and williams always with the new york fed any time a fed speaker comes out and makes these comments you can see the market effects we'll see if we can add to any of the moves that we've seen so far, becky. >> people obviously watching really closely after that big fed decision, a bit of a change in statement we'll be listening to every one of the fmoc members who come out and talk and figure out where they are on the dot plot are they the more hawkish? that may be one of the biggest questions. it's quadruple witching day. you might see more activity in the premarket than you usually do keep that in mind. when we come back, we'll have much more on the big market move after the interview with st. louis fed president jim

bullard. rick santelli's next plus, we have a rare and exclusive interview with billionaire investor tony ressler. chte hikes, taxes on the super ri it's all on the table. that and much more when "squawk box" returns

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welcome back, everybody. let's get to rick santelli he's been watching what's happening in the bond markets. rick, what's the reaction there? what do you think? >> yields have actually firmed up just a smidge yesterday's low yield in 10s was 1.47%. i can't stress how important that is. a few hours ago we briefly traded a yield a bit below that, a price higher than that the all-time low yields prior to covid, becky, was in july of 2012 and july of 2016, right around the 1.37, 1.38% area. those are significant support levels i will tell you, there is a lot of talk in the treasury complex about reversing this reflation trade and the fact that it isn't over you can see it show up in the spreads. you were talking about 2-year

being sticky at 22 basis points, the flattening of the curve and the 30-year exactly the opposite scenario it has been sticky in the other direction. if you look at 5s and 30s in the u.s., it's hovering the flattest in the u.s in europe it's the flattest in three months and the u.k. flattest in six months when you think of the extra volatility, today's single stock expiration, witching today, about 815, 818 billion of single stock options are going to expire from what i understand on a goldman writeup, that is the second largest in history, only second to january 2021 so if you are watching yields today, look for the ongoing buying spree globally and flattening of the yield curve along with volatility and equities we digest big reversal in commodities and i just think that we're going to

have a very wild session. >> rick, one of the things i think that was so interesting that bullard was talking about was just this conversation that's now taking place. a month ago bullard told cnbc that they weren't ready to start talking about tape perfecting, that they would wait for the chairman to open that conversation he said now the door's been opened the conversation has begun obviously everybody on the fmoc is going to have their own opinion on these things. bullard is not a voting them year but he does have a seat at the table and he does have a voice to talk through some of these things the idea of will they kind of taper down on mortgage-backed securities will that be something they do more quickly he's said he's concerned about them being involved in that market when you've seen housing skyrocket and take off they don't want to be building a bubble in that arena again. >> yeah, no, listen, without knocking the fed, there isn't anybody on the street i talked to who hasn't been dazzled by

how much horsepower we're coming out of the covid in. we can debate treasuries i think it's crazy to continue to be buying, but the mortgages, they're just -- every writeup, mortgages do not need this extra boost and when we look at how much the fed's buying in relation to how much the treasury's issuing, these numbers are just crisis centered and we're not in the crisis anymore. listen, i get it i totally get it that jay powell does not want to be the name on the door that pull the policies too early, spend all this money doing the right thing when covid was at its worst only to pull it back too quickly i understand the nervousness there. i think that bus has pulled out of the station the train is down out of the track. we need to see less. stepping in, i have no problem i think central banks -- our central bank in particular led a charge that will go down in history as great policy, but i really think they've over stayed and i think ultimately the

treasury market is going to penalize them for that. >> rick, thank you good to see you. right now let's get down to the new york stock exchange and check in with jim cramer jim, maybe what rick was just talking about with the quadruple witching explains what we're seeing >> rick's right. the interview is amazing bullard was i thought eminently reasonable in saying a lot of things people feel came out of the meeting. the commodity collapse is so evident that you could argue powell did everything he needed to do to shake people up unfortunately today and tomorrow are seasonally among the worst days of the year the 22 out of 22 times -- literally 22 out of 22 times these two days have been down, this period. and so i'm not eager to jump in here and start saying we've got to buy stocks. watch adobe. adobe was unbelievably good. if that can turn around, maybe

there's hope i think it's early to buy stocks i enjoyed bullard. there was another time he came in and he said he was sanguine when things were ready to fall apart. we put that behind us and he's one of the most thought full people involved with the federal reserve. >> jim, jim bullard is very thought full about this stuff. the question is how much do you take away from one man >> oh, no -- >> how much do you think this is part of a broader strategy, meaning a communication strategy, or do you think it's just one individual? >> no, i actually thought it was a communication strategy and i do feel that there is some belief that some of the things that they're buying don't make a lot of sense you've got to start with bullard and work your way over this is how you kind of shake things out but i do think that the collapse in commodities is astounding we've got to talk about it commodities. oil can roll over, the saudis

don't want it in any higher because we'll start pumping. the banks are doing awfully. the banks and machinery companies. lee meisler has charts on twitter. let's throw in nike. they are hideous things are rolling over. lumber looks like k2, right on the right side and i do think what we're seeing is the fed talking it down and it's doing a great job bullard's part of that effort. >> you think it's orchestrated, jim? >> i don't think bullard just comes on and -- there's no freelancing. >> oh, you don't think we've had freelancing over the years >> no, no, i'm saying that bullard -- that bullard is not freelancing right now. that jay is very sophisticated and bullard doesn't suddenly appear, however, i think he's playing the heavy. i like what rick said about that

jay still -- remember, jay still wants people to be employed. he is not going to pull the plug on that, but i do think that they can get things to calm down when you look at those charts, i mean, you want to own those stocks those stocks have collapsed. those are stocks of when the economy is over heating. i think things are moving on course what we have to have the next couple of days be down and then we'll have a nice july rally and everything will be fine and bullard will have gotten it done and powell will have gotten it done and the over heated part of the economy is going to die down i wish they would make semiconductors. >> what are you buying >> buying? nothing. >> you said in july you have a rally. how much has to dip, if you will, get under -- >> it's the 18th it's the 18th. andrew, it's the 18th. there's a lot of ball games between now and the july rally

>> so you've got -- >> oh, lighten up. will you lighten up. >> wait a week. >> come on, it's friday. you probably have plans. you're doing stuff, right? you do stuff, right? you're not like favor? no, i think you've got a couple of days that will be harsh and we'll look at it at the end of the week i'm buying adobe down 15 and you'll say, that's pretty interesting. all be good. just get through the down turn first? no becky, your throat sounds better andrew, you look like you're going on that island diller island. i can toll you got tickets >> i don't have tickets. i haven't gone back. you have to get tickets. >> if you can get me, cut the line i can't even cut the line at the coffee cart these days you know what, i think it's not a disaster it's fine. let it come down let kathy wood -- let ark do average downing. that's something they've become

unbelievable at. let's wait we'll get a great chance here. i didn't say you sent the market down i never said that. >> very kindly very kindly. just implied thank you, jim have a great weekend. >> that's the smile i want i want the smile >> in the meantime, let's show you some of what st. louis fed president jim bullard told us earlier this hour. >> the committeehas been a surprise to the up side over the last six months. if you look at the december 2020 seps, we were projecting 4% real gdp growth in 2021 now we're saying 7% real gdp growth faster than china has grown in recent years joined now by a very special guest to talk markets, the fed and so much more maybe a little basketball as well ares management and co-founder tony ressler

he is the owner of the nba's atlantic hawk. ahead of a pivotal game 6. great to see you i'd love to get your reaction to what we just heard from jim bullard, a much more hawkish tone about how early we could see the fed move than i think had been anticipated what do you think? >> i don't know. i guess i didn't hear it the same way you guys did. what i heard is the u.s. economy is doing beautifully gdp growth i exp expected unemployment is lower. we know we have strong balance sheets both in the consumer and the corporate. consumer spending, of course, is incredibly strong coming out of a pandemic all of these positives and what i thought i heard is, hey, the fed is very focused on controlling inflation because of the really pretty incredible gdp growth and enormous government stimulus, of course.

that's their concern frankly, that should be their concern. so i heard a very good economy, better than expected, and a fed that's trying to be very much aware and do what they're supposed to be doing which is focusing on their greatest concern. >> how concerned are you about inflation? >> again, whenever you have a combination of incredible gdp growth and really unprecedented government spending coming out of something that none of us have experienced, all of us should be concerned. i would argue that inflation is the risk of a very, very strong economy. we've had very low interest rates and therefore very high asset values for a pretty significant period of time the question is should we be concerned about inflation and should the organization in terms of the fed have its priority in this area. to me, it makes me happy that's

its focus, as is mine. >> given what you do in the real estate space, i'm curious what you thought about his comments, jim bullard's comments, on letting up on mortgage-backed securities >> again, i think there's a recurring theme. let's focus our attention on places we need it. why get involved in mortgage-backed securities i support the real estate markets. if they're doing just fine if access to capital and real estate and real estate development is going well, and if interest rates are reasonable and people have access to capital to do what they have to do again, i do think the fed to their credit, is focused on areas that need their help, as opposed to areas that may not. i do think real estate development -- >> i'm sorry. >> no, no, i was going to say you're in the business of credit, a big part of your business is credit, how are you realigning your portfolio, given what's happening in the environment right now? >> let me just say, from

realigning the portfolio, there are areas of management, we would argue, a pretty darn good private credit, public credit business and the vast majority of assets are floating rate, so the idea that we're in the senior secured floating rate business, ie prepared and frankly comfortable if in nation returns, if inflation returns in some comfortable amount, comfortable if interest rates rise somewhat, so we would argue that our existing focus on floating rate credit assets, i'd say that's a positive, and it's been that way, and management for the past 20 years, so we feel pretty good about where we are, and listen, let there be no confusion, rate goes up, volatility goes up, i would say the world of alternative assets continue to grow, continue to grow at a faster share than the rest of the investments. >> given how strong things are right now, do you look at this

as a moment to harvest, to sell, for example, or do you look at this as a buying opportunity >> listen, as you could appreciate, most alternative managers, our investors don't come to us to stay in cash they come to us to be thoughtful about the markets we live in and generally, when markets are incredibly attractive, you're a very aggressive buyer, maybe in all types of quality levels if you will, but when markets are very, very strong, as they are today, when interest rates are low and asset prices are high, i would say asset managers are supposed to focus at least we think, are supposed focus on quality rather than yield. and really, if you will, sometimes compromise the rate of return in some of your credit products, so the quality of the type of investment, so again, so that's generally what we've learned over the past 20 or 30 years of doing what we do, but different people have different approaches, and that's ours.

>> i'm curious if you could weigh in, as public policy or fiscal policy issues as well, which is to say there's a big infrastructure plan in washington which i'm sure you know a lot about, and there's questions now about if you're going to take your foot off the gas, on the fed side, do you want to put more gas on the fiscal side right now? >> again, under the category of a very strong economy, one shouldn't look at massive government spending in terms of inflation, but in terms of i infrastructure, where a bipartisan approach, where people on both sides of aisle conclude what is a reasonable amount of dollars and whether or not user fees can help fund at least a large portion, those are the types of things where negotiation is not a dirty word, or compromise, i hope, is not a dirty word, when you come up with a meaningful infrastructure

plan and that's precisely what i hope comes about. >> tony, i have a public policy question for you and it revolves around billionaires and you had enormous success and you were one of them. there was a pro public ka article last week among taxes in america and taxes for the richest in this country, and really identified that in certain instances, some people weren't paying taxes at all. not that it was being done illegally but that the policy if you will that we have in this country allows for it. and in some cases, it argued, i think underneath it, there was an argument around whether we need a wealth tax or a different way to tax people to either capture unrealized gains or to capture some kind of minimum tax. what do you think about that >> i think that every time you look at taxes, you have to look at economic growth and whether or not you're going to help or

hurt, and i am a big believer of course, shoe look at alternative ways of taxing, of course, we should look at corporate taxes, and personal tax rate, and capital gains rates, and see whether or not we can generate meaningfully more revenue, in any of the above look at other forms, but some of the times you just have to take a step back and say, are we woiling to hurt the economy -- willing to hurt the economy for some public relations opportunity, and please understand, as a wealth tax, has a wealth tax ever worked to help an economy grow? which fundamentally is part of what a tax plan should do. so i'm not opposed to higher taxes, i'm not opposed to more creative taxing, i'm just saying, please use tax strategy as a method to help the economy, not hurt the economy >> but what about carried interest on the private equity side, you've been a beneficiary of that, and we saw an article from the "new york times" over the weekend of private equity trying to classify management fees in certain cases as carried

interest >> listen, my view has not been that taxes have to be lower. again, under the category if we're going to grow government spending, if we're going to spend more, sometimes you have to tax more. i don't have a problem with any of the taxes being discussed, except taxes that we know will hurt the economy, which makes no sense to me. listen, we have an economy that's the greatest in this, or on this planet, for a reason, which is we've helped incent people to grow and develop companies. that's a good thing. i hope we can agree on that. so what -- >> tony, we're up against a hard break, but just, you got a big game tonight and i also want to just mention that you have been working on a lot of social injustice, injustice issues in this country through the team, and as we honor juneteenth, i'm curious sort of what your take is on what, on where we are and

what it is going to look like. >> well, that's a lot of questions there. >> i know. >> we have a big game tonight but in atlanta we have been doing a whole lot of things that we're pretty proud of but frankly we've been doing a lot of things with the alternative finance foundation, ie trying to bring more minority college students into the alternative asset management industry. we just launched something in terms of financial literacy for all that we really do believe in i know this is an area of focus of yours as well, but making financial literacy accessible and kind of much more important to people trying to develop their financial skills tony, unfortunately we are going to hit a hard break, i just want to thank you for the work you're doing on all of these things and i hope we can have you back and continue this conversation, and hope you have a great weekend, and a great win tonight though,

i know i'm going to get skilled by the other side of -- killed by the other side of your competitors this evening for saying that. but good luck, tony. commercial real estate exchange. and it's fast. if i could, i'd ten-x everything. like our lunch. (laughs) amazing! see it. want it. ten-x it.

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good friday morning. welcome to "squawk on the street," i'm scott wapner with jim cramer at the new york stock exchange, carl and david have the morning off. let's look at futures right now because they are reacting this morning to st. louis fed presiden