i'm going to join seema mody on "power lunch" which starts right now. ♪ ♪ tyler, thank you i'm seema mody here is what's ahead on "power lunch "qwest stocks high are today as the markets brace for a lot of fed speak from jackson hole. is the fed near the end of the hiking cycle or full speed ahead? we'll get some stock picks and look at how this is all affecting currencies and emerging markets plus, the twitter versus elon musk court battle begins right after a former employee blows the whistle on the company we'll talk to an analyst who is downgrading the twitter stock today. tyler? >> seema, thank you to you and welcome, everybody let's check the markets as we're seeing some green on the screen with the nasdaq leading the way. some of the high beta volatile names are on the move today. netflix, meta, tesla

remember tesla's stock will be split after the closing bell today, 3 for 1 it will be a $ 300 stock tomorrow cruise lines -- that's what you follow, seema, among the biggest gainers in the s&p 500 today there you see royal caribbean, karn ral and norwegian all with sporty gains there we'll talk a little bit more about live events and the sector ask the cruise experienceal sector culminating with powell's speech on friday. has the fed chair kept his hawkish stance or has the recent drop in inflation changed the tone the answer could determine where stocks move from here. let's bring in doug butler, portfolio manager with rockland trust. what do you say? what do you expect fed chair powell to do and say and what effect do you think it will have on equities? >> expect is one thing

i think i hope that he is a little less hawkish than what we've been hearing the last two days from fed members. so we're concerned that they're going to push a little too far with this, but we remain optimistic that inflation will be sort of kept in check and continue to slide down throughout the rest of this year and should be back, you know, not at the 2% level, but more normalized by q1 of next year. >> do you think inflation has peaked >> yeah. i think -- i think inflation has peaked, and it may, you know, i think the pce coming out on friday may still show signs of aggressive hikes, but i really think -- think about t commodities are down 15% you saw the used car prices which went crazy last year are now down you're starting to see the tempering of everything and as long as you don't get exceptionally hot wage growth going forward which could push

up inflation, we should continue to see it continue to get in line >> doug, if you think inflation has peaked and what sectors or stocks should investors be getting exposed to >> a couple of the names that we mentioned and one of the names that we like here is ecolab and they make every sort of sanitary and cleaning product known to man used at the industrial level. one of their big core input costs are, like, plastics and energy-based commodities so their margins should extend even if the fed goes a little too far. and if we're in a recession now. we think that that stock should hold strength throughout, you know, throughout the coming year. >> are you concerned if the fed takes a slightly different stance than when you're anticipating tomorrow and perhaps says that they may embark on a more aggressive path to higher rates that growth stocks can start to underperform

and they've certainly led this rebound that we've seen in the stock market since the lows hit back in june >> i'm not a huge fan of the hypergrowth names. you know, i was debating whether or not tesla would get back to 420 on its own without the split, but really thinking about if the fed pushes really hard, you're going to see suffering to the growth stocks and you'll see suffering to the bank stocks because frankly, at that point, the degree of yield curve inversion will be really high and that's the difference between short term bond rates and long term bond rates >> as proof of the fact that you are not a fan of the hypergrowth stocks, here's one, verizon. that's on your list and not a lot of stock that gets a lot of shout outs >> no, no, i know. one of the upsides for us and we've been a long term holder, but also, you know, they have disappointed the past two quarters and we really think they've been hit a little too

hard we think they're likely to raise the dividend in the coming weeks or months. they don't report for another two months so they can't disappoint for at least that long, but also they're trading now down at a level at which they're assuming the market is a seoasumming that they won't continue to grant the premium. we think their loss rate will stop and we think that at&t will be less aggressive with their promotional activity in q1 and q2 of next year. the one that seems to be highly proform is t-mobile. thank you so much, doug. we appreciate your time today and we appreciate you. >> thanks very much, tyler >> cnbc is the huge lineup of guests today including james bullard on this program tomorrow at 2:00.

he is a real interesting cat on that fed board fed chair powell friday morning. that is his speech at 10:00 eastern time you'll be there. you will see steve liesman and elk -- there are elk there, seema, as well >> the mecca it is not just the u.s. markets that will be watching jackson hole closely any potential pivot from the fed share could have an impact on emerging markets let's bring in the chairman of rockefeller international and founder of breakout capital. you say what fed officials say over the next 48 hours could be critical to emerging markets specifically china tell us what you're seeing. >> hi, seema i think if you look at emerging markets there are 150 developing countries out there. so i think the fed's decision has a different impact on different markets and clearly the most vulnerable to me is china. we've spoken so much about inflation and how inflation is rising everywhere, but one country that is still suffering from possible deflation is

china. that china's property market is forced to roll out massive amounts of stimulus. not as much as they used to do, but still considerable amount of stimulus and they're cutting rates, but the ability to stimulate and cut interest rates is going to be constrained by the fact that the fed is increasing interest rates because that accelerates capital outflows from china. they don't want a repeat of that the currency has around 7% or so this year. they don't want a very sharp currency so i think china is the one emerging market, possibly most vulnerable to more fed tiedening. >> negative on china, but other markets can get around the stronger dollar and emerging rates. >> if you look at the markets around the world today, once again, some of the most resilient markets have also been

in emerging markets search as brazil and indonesia so i think these are all countries if you recall a decade ago that have the fragile five because of the large current account deficits and bad fiscal positions. it improved significantly from back then. these are some of the countries that a think could keep doing well and have already shown a remarkable amount of res ilwrens and usually a strong dollar would not be good for these countries, but these emerging markets i think have stood up relatively well. >> let me ask you a wacky question would china rather be america economically in other words, with the problems they are facing including a big issue of are we going to be able to manufacture enough jobs for the young people who want jobs. that's exactly the opposite of what the problem is here in the united states. we've got more jobs than we have people seeking them.

what do you -- how do you react to that wacky thought that china may be in a less desirable economic position right now than america is >> that's a great point, and i completely agree with you which is the fact that in fact, projection i'm currently working on is the fact that i don't think the chinese economy will catch up in the chinese economy in the foreseeable future. by now the chinese economy would have overtaken the u.s. economy. i think the gap is considerable and guess what i don't think that china is going to catch up to the u.s. economy for the next ten, 20 or 30 years because the demographic situations are worse the debt situation is arguably worse, and i think the long term growth prospects are not looking good at all, so i don't see the chinese economy doing well and you talk about unemployment. if you look at the key cohort of people in their 20s and the chinese unemployment rate is way higher than the unemployment

rate and i would rather be the american economy than the chinese economy any day. >> you're recommending investors not buy, alibaba, and the tech names and the looming recession there and the nat gas shortage certainly increasing concerns. >> yeah, it is the only silver lining there is that it's in the price and the european markets today are trading at their lowest ever in valuations and price terms against the u.s. market. so i think we need the dollar to stop rising and some value will emerge in europe because those countries also have economic growth unlike mainland europe. it's been a very difficult time for international investing over the last decade, but i've got to believe that over the coming years that's got to change because nothing lasts forever and you have valuations in the u.s. at record high compared to the rest of the world today including europe. >> you just have to be selective. thanks for going around the world for us

ruchir sharma, rockefeller international. >> it's a dollar store bullfight. two are going head to head on what the best play right now is in the dollar area dollar general versus dollar tree, as the first hearing in the elon musk twitter trial kicks off today. one analyst says yesterday's whistle-blower news could be a big help to musk's case. big help to musk's case. he wl ins eailjo uahd. it was just take, take, take. so i broke up with bad banking and moved to sofi checking and savings. now i get higher interest, pay no account fees, and get my paycheck two days early. break up with bad banking. get 2.00% interest, pay no account fees, and get your paycheck up to two days early. download the sofi app and earn up to $300 when you set up direct deposit. sofi. get your money right.

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let's drill down on the dollar store, shall we with the consumer very much in focus with this high inflation environment and dollar general, dollar tree both out with earnings tomorrow and both stocks are up so far this year how about that the dollar tree has been the outperformer which one is the better buy right now? time for our dollar store bullfight. our dollar general bull is rapesh haric analyst at oppenheimer and the dollar tree bull is scott ciccarelli, senior equity research analyst at truist >> rapesh, why don't you go first and state your case and put your stake in the ground >> thank you for having me for dollar general, we think they have the most attractive growth in there are general. it's 18,000 stores and we think they can open up another 10,000

stores over time there are 17,000 store opportunities out there and we think dollar general could capture the vast majority of those. they have the core concept and they have the new concept, which are 5 below in a multipriss point or not so we think they'll gain tremendous share with these comstocks. over time the dg management team has been one of the more consistent performers out there, and they've been out for several years now and they invest a lot whether innovation, and when you go into dollar general store you will see a treasure hunt with the home section and they have the nci initiative and the natural organic and a bigger section for natural organic. they've made improvements with digital coupons and self-checkout and they're testing the entire store with self-checkout. we think they're positioned to

continue gaining significant share and they're the proven executer over time and it's a management team for several years. >> the future ceo is going to come inplace here and we think he will continue to drive strong returns over time. >> well, scott, rupesh has made a strong case. now it's your turn >> i respect that. we have a emtremendous amount of respect for there are general and we raised our estimates based on proprietary gain rjs and the dollar tree concept is pretty simple here they are in the midst of a turnaround they brought in a brand-new -- basically, they refreshed their board of directors and bringing in new management and a new chairman of the board is vick ryling who was previously the consider of there are general

the 2000s, and they know how to make this business work and to rapesh's point, there are general has significantly underperformed two years >> rid now dollar general generates two per tor and it is more than double family dollar dollar tree, on the other hand, they had just raised their price point from a dollar to $1.25 through more value through their products and there's a long way to go. wall street really likes turnaround stories and one they can envision and this is not a super complicated box and then we think the runway for a dollar tree is much more significant than dollar general. >> don't you think he could be riskie at a time we're hearing from walmart, target when they

hear that the low-income consumer is trading down >> yes i think they saw some negative elasticity in the first quarter and yet they still generated a comp because they have a 25% increase and what consumers will do is look for value, right? even though they may not be able to buy something for $8 even and if $1.25 is still at a better price point then something else at a competitive retailer and that still becomes a good relative option for that consumer >> final thought rupesh. >> i think dollar tree is taking the right option i think it is too early to call a turn and they'll turn around and we're still in a wait and see move with a more consistent performer over time. tree, general, take your pick. you made the cases, scott. thank you. >> coming up on "power lunch."

he's known as the elon musk of europe and he's 34 and running the largest ev company and we'll take a look at his auto empire and his plan for robe o taxis a three of today's biggest movers, peloton, bed bath and beyond don't go away. she's in austin between a fresh bowl of matcha and a fresh batch of wireframes. and you can find her, and millions of other talented pros, right now on upwork.com

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>> welcome back to "power lunch. a young, brash billionaire trying to make big changes in the electric vehicle world, but it's not elon musk, perhaps europe's answer to musk, though, robert frank spoke with him. robert >> seema, mate remack built his first ev in his garage when he was just 18 years old and the remack group has 1500 employees and a valuation of over $2 billion. goldman sachs and softbank were part of a $500 million round back in june remack makes multimillion super cars under the bugatti and remack names and its big growth is in selling technologies to porsche, aston martin and hyundai. most companies went public way

too early. we all go public at some moment. i was very kind of frenzy that was happening in most of the thai, share very good company, and a lot of people lost a lot of money especially in the electric vehicle industry. we don't want to do that we want to go when it's the right time and the company has strong financials and we are really close to that >> remack's main push is keeping it under whereupons until 2024 meantime, they are making big profits from old school engines. the new bugatti is a 16-cylinder gas-guzzler priced at $15 million and sorry, tyler, they're already sold out >> how many dollars is the price tag? >> $5 million. $5 million each. they're only making 99 of them,

but they're sold out. >> does this entrepreneur have any relationship with elon musk? are they buddies and they talk to each other on twitter >> i would say he's elon musk minus the tweets and three zeros. they respect each other a lot. they had lunch in new york city, recently and the main reason is they don't compete directly and remack makes components except at the higher end. he'll be big in this industry maybe not e ln musk big, and i think they're going grow thachl oning vehicles for the mass market. is the other day really a niche market player? >> so mate remack's focus is when it comes to building full

vehicles and it's on the super high end and they're all super cars $2 million and they make high performance battery technology and it's porsche and aston martin and jaguar. hyundai, we have yet to see that car, but you're right. those are the different segments and mate is at the high end and musk is more in the mass market and more global. >> thanks so much, robert frank, as always, fun to be with you. >> let's go to deirdre boss a shall we cnbc news update hi, deidre. >> hi, tyler the number of coronavirus stocks have fallen while new infections dropped 9% that's according to the latest numbers from the world health organization omicron is the variant still the predominant covid-19 variant which accounts for more than 70% of virus seek rentes the ger that every firefighter has to protect themselves against fire may after the

international association of firefighters and warning -- all three layers contained chemicals which have been linked to cancer >> first lady jill biden has tested positive for covid-19 president biden spent three days with his wife at their vacation home and continues to test negative you may remember a rebound case after an initial recovery from the virus. >> the great rebounders there. de deidre, thanks very much. #complicated twitter has one analyst tells us why it's a few or the stocks. >> speaking of a murky outlook and the prices fall for the first time in three years. we will break it all down.

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we want to get you caught up on the markets. stocks, bonds, commodities and a bountiful twitter. let's start with bob pisani who is at the new york stock exchange are stocks gaining a bit of steam here in the last 20 minutes? >> yeah. just a little bit. the problem is we don't have escape velocity. we're stuck in a range look at the s&p. we've been 4100 to 4300 for several weeks now essentially and what we've got to do is we've got to get through powell's speech on friday and first, we have to get through the nvidia announcement. a lot of the market, frankly, floundering around and marvel will be reporting tomorrow remember, we have all of these issues out and beta centers have been unsure. so we have a clearer view of what's going on from the semi business from nvidia that's a new low, in fact, that's a five-year low for retail you would have thought the inflation issues were behind aus bit. i'm rather surprised that nord

stom is down 20% the do it yourself business was hit by inflation and high fuel prices didn't we know that already, though macy's is still down after its earnings so this is an ongoing in a correction in the retail spags. energy, we've been talking about these natural gas stocks and occidental is at a 52-week high today and eqt, devon and range resources have been having great moves up as nat gas has hit 14-year highs and consumer staples are a mixed group and that's good when they're for sale because more defensive names are down kimberly-clark was doing well, hershey's and it hit 52-week high in fact, seema, and popefully powell can give us a better narrative, more bullish, more bearish and we're floundering

between the two narratives >> hopefully we'll get clarity now to the bond market where yields to continue to rise ahead of jackson hole. rick santelli tracking the action. >> yeah. there seems to be a lot more clarity when it comes to the fear in the interest rate market everyone thinks the symposium will be very, very hawkish and maybe they'll be correct yields definitely are rising and i don't see any way the fed is present will the hawkish phase and today it got ever closer 15 years at 14.43% as we hovered under 3.4% if you look at what's going on overseas and the same scenario the 10-year in the uk and the ten-year in europe bunds and gilds close at the seventh consecutive higher yield day in a row and as you look at the two-year instrument hovering at 2.94%, that is a 14-year high close.

let's look at our ten year, our close at mid-june, the high was 3.5% a whisker below and you see how low the curve has moved and if you look at the uk guilt you see the 6-1, they took it out. they closed on the last chart. we had the second auction, a role that was below average, but who will step out on a light volume august session in front of the fed symposium the answer very few >> fascinating story playing out here and across the pond oil following the saudi output comments that we have pippa stephens here with the latest numbers. >> seema, off the highs of the day and still closing in the green with brent crude holding

above the $100 level the iran nuclear deal also in focus and the white house submitting its response to the latest proposal which iran is reviewing. discussion around the potential agreement has intensified recently an agreement is probable not imminent due to different plans and political challenges natural gas is modestly higher once again today after that large swing yesterday, although the big mover is european natural gas, surging more than 15% perper megawatt hour and that's e cref lent, so that is more than nine times, seema, as much as we have now.

>> now to the complicated saga at twitter as its trial with elon musk kicks off today. the company is dealing with blowback from a whistle-blower that came out yesterday. the bombshell report creates high riskings for the case of outcome. let's bring in the analyst behind that call, barton crocket. what exactly are you worried about as you read through the revelations that the whistle-blower claims here >> we opened a whole new area of potential risk for twitter we had liked twitter and their stance position against elon musk when it was the debate about spam because twitter made disclosures that were very hedged and very likely we thought to stand up to scrutiny and set up a speedy process and the judge is onboard with that what we are seeing now, though

is a totally different area of concern which addresses security which twitter has had a problem with over the years. from the person making the complaints and i think the risk here is twofold. one, that the judge pauses the expedited process and takes time to let this be investigated and time is twitter's enemy in this proroes is and the business struggle that it gives him them, i we put those together and the assumption is twitter has less leverage than we thought we thought what would be the outcome is a negotiated settlement and it will be less favorable most likely than we have before. where the stock is right now you would have to be very bullish to be going into this

>> does budge, the nome degarre of this individual did he say anything about bot accounts that is what elon musk is declaring is his principle concern that i.e., that twitter has a lot of bot or fake coulds. >> did musk today -- that's not driving us what did you think could happen if only get can gets pulled into this case. the security issues. >> right security issues and those have not been pulled in and there's hearing today and we'll hopefully hear more soon they get pulled in, increases the risk that twitter is more compelled to have the settlement than before. >> you brought your price target from $52 to 37

it's currently trading at 40 walk us through. why do you think 37 is the right price? >> we think that twit or the stand alone would be a $20 stock trading at three times this year's sales and in line to the low end of peers, and if they get the deal done at the musk price is 54.20 so it splits the difference saying essentially they just come together in between with both sides having good leverage. musk gets support on security and i don't think he does. twitter has a very strong agreement. so they have some reasons to musk, as well, and we think the compromise in the middle is the host -- and social media, and tell us why you brought social

mead why that is the decoit, and these guys are the leadinggateway to tv and the stock's been hammered, but we think the position is as strong as ever and the money will three thissing a presence with netflix moving in, disney moving in, i think we'll see innovation once we get past the excitement of roku which is why we're keeping that as a recommended stock today. >> okay. we'll leave the conversation there. roku trading at $69 a share. barton crocketet at rosenblat secure theities. >> we have demand, singing and spas it's taken off helping shares of everything from dick's sporting goods to live nation, booking holdings can that trend last? remember, you can now listen to

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shares of homebuilders higher across the board today despite a huge drop in pending home sales compared with last year diana olick joins us now to make sense of this latest round of data hi, di >> hey, ty there was a lot of data and i'll start with the pending home sales which were signed contracts on existing homes. they fell in june and are down 19% year over year and that's slightly better than the street expected and this is the straight monthly decline and the eighth in the last nine months the realtor's chief economist said the smaller decline in july reflects a brief retreat and rates have since popped higher again and we saw that reflected in the weak mortgage demand and applications were down 19% year after year they were already at at 5.4 today.

we got exclusive numbers from black knight showing a sizeable crack in the prices. they dropped 0.77% that doesn't sound like a lot and it is the single largest drop if prices, during the great recession seeing a larger single-month drop in prices. prices almost always rise from june to july because the market is seasonal and families buy during spring and summer so they can move during school breaks. tyler? >> do we see prices fall during the great recession and drops of the scale? >> no. absolutely not this is not that kind of market. you will see price drops, i imagine and i'm seeing them in the hottest markets. l.a., san francisco, denver and where they skyrocket like las vegas and phoenix and overall you're not going to see these massive, national home price drops because it was a completely different scenario during the great recession and

the subprime mortgage crash and that was not the case today. >> you've had a lot of bow borrowers. >> exactly home equity now is sky high, are there markets in the center of the country that are holding up better than the coastal marks, you would think so in the midwest where prices are lowest and you're seeing weakens and where you are seeing the pri pri priprices holding up strongly because the demand is still there and supply is still there, but we'll be watching that closely. >> we're looking at rates resuming their rise this week. the rate getting close to 6% what does that tell you about the outlook for housing going forward? >> a lot of that is because of investors' concern over what you will hear from jackson hole whether it will be more

recession related because it started last friday. you started to see rates pop up sizeably again on monday and again yesterday and another big jump today in fact, we were up nearly 40 to 50 basis points from just a week ago. so that again is in anticipation of what's said and also a concern over the greater economy. so we may see them go a little higher we have tested that 6% ceiling a couple of times. we'll see if it breaks >> and what it means for the economic data. >> sure. three big headlines and big movers and an inventory build from nordstrom, peloton and bed fene a w beyond getting a lilinde have the trade on all three of these stocks next hotics use foot mapping technology to give you personalized support, for all-day pain relief. find your relief in store or online.

president biden speaking now at the white house on his plan for student debt forgiveness let's listen in. >> and i drove down to newark, delaware, where my dad worked in an automobile agency, and i walked in, and i had my spikes and the reason i was going down, when your dad works in an automobile agency, the advantage is you get a new car to go to the prom

you think i'm joking i'm not joking so i went down in my '51 plymouth with beach towels for seat covers, and i had my uniform on, my spikes off. i ran in and the woman whose name was mary that ran the place. i said mary, where's dad he's out in theshop. i give my word, true story, and my dad was a well-dressed, refined fellow i walked out and my dad was pacing back and forth between the big garage door going into the repair shop and the door going out of the showroom. and i looked up, joey, honey, i'm so sorry i'm so sorry i thought, godding something happened this was before cell phone i thought something happened to my brother or mom. what's the matter, dad i went to see charlie, who was the vice president of the farmers bank, which was a state-owned bank that did a lot of financing of people wanting

to purchase a car. i went to charlie and asked to borrow the money he said, he won't lend it to me. i'm so ashamed i'm so damn ashamed. my dad was like millions of parents all across the country, want to help the kids get to school but there was no way to be able to do it because he believed, as i do, education is the ticket to a better life. it's something jim and i, kamala and doug and i believe and i'm sure the vast majority of you do as well. over time that has become too expensive for so many americans. all this means is an entire generation is now saddled with unsustainable debt in exchange for an attempt, at least, at a college degree the burden is so heavy that even if you graduate, you may not have access to the middle-class life the college degree once

provided many people can't quaullify fora mortgage to buy a home because of the debt they continue to carry. they carry -- it's too high. they can't come up with the down payment anyway a lot of folks are putting off starting families because of the cost and the dream of starting or owning your own business is way off in the distance with a debt that someone is saddled with many of you had to leave school because the financial strain was much too high. about a third of borrowers have debt but no degree the burden is especially heavy on black and hispanic borrowers who have less family wealth to pay for it they don't own their homes to borrow against to be able to pay for college. and the pandemic only made things worse but we responded aggressively to the pandemic to minimize the economic impact of the harm

covid imposed on individuals, families and business. you all were there we increased unemployment benefits for workers who were laid off we provided loans to small businesses so they could stay afloat and take care of families and their employees. we provided assistance to people to put food on the table remember the long lines you would film of cars, decent looking cars not jalopies, just waiting for box of food to be put in the trunk in the united states of america. waiting for over an hour to get food in the trunk. we provided rent and mortgage assistance to keep people from being evicted and thrown out in the street our approach was necessary was the right thing to do and helped people avoid the consequence of that. that didn't benefit them it benefited the whole economy our approach is why america's

economic recovery was faster and stronger than any other advanced nation in the world. now it's time to address the burned of student debt the same way. working closely with the secretary of education, he has the hard job secretary cardona. here is what my administration is going to do to provide more breathing room for people so they are less burdened by student debt and, quite frankly, to fix the system itself we acknowledged it was broken in terms of -- anyway there are three key factors we're going to do today. first, we've made incredible progress advancing america's economic recovery. we've wound down pandemic relief programs like the ones unemployment insurance and small businesses it's time we do the same thing for student loans. student loan payments pause is going to end it's going to end -- i'm ex pending to december 31, 2022,

and it's going to end at that point. it's time for the payments to resume second, my campaign for president, i made a commitment that would provide student debt relief i'm honoring that commitment today. using the authority congress granted from the department of education, we will forgive $10,000 in outstanding federal student loans. in addition, students who come from low-income families, which allow them to qualify for a pell grant, will have their debt reduced $20,000. both of these targeted actions are for families who need it the most, working and middle-class people hit especially hard during the pandemic, making under $125,000 a year. if you make more than that, you don't qualify. no high-income individual or

high-income household on top of the 5% -- in the top 5% of incomes, by the way, will benefit from this action period. in fact, about 90% of the eligible beneficiaries make under $75,000 a family here is what that means. if you make under $125,000, you get $10,000 knocked off your student debt if you make under $125,000 a year and you received a pell grant, you will get an additional $10,000 knocked off that total for a total of $20,000 relief 95% of the borrowers can benefit from these actions that's 43 million people of the 43 million over 60% are pell grant recipients. that's 27 million people who will get $20,000 in debt relief. nearly 45% can have their

student debt fully canceled. that's 20 million people who can start getting on with their lives. all this means people can start finally crawl out of the mountain of debt, to get on top of rent and utilities, to finally think about buying a home or starting a family or starting a business. and, by the way, when this happens, the whole economy is better off in the coming weeks the department of education will lay out in detail a short and simple form to apply for this relief along with information when this application process opens. by resuming student loan payments at the same time as we provide targeted relief, we're taking an economically responsible course as a consequence about $50 billion a year will start coming back into the treasury because the resumption of debt independent experts agree that

these actions taken together will provide real benefits for families without meaningful effect on inflation. let's be clear i hear it all the time, how do we pay for it? we pay for it by what we've done last year we cut the deficit by more than $350 billion this year we're on track to cut it by more than $1.7 trillion by the end of this fiscal year. the single largest deficit reduction in the history of america. and the inflation reduction act is going to cut it by another $300 billion over the next decade because medicare will be paying less for prescription drugs. and over a trillion the next two decades. the point is this. there is plenty of deficit reduction to pay for the programs many times over i will never apologize ever helping americans working --

working americans and the middle class, especially not those who voted for a $2 trillion tax cut that mainly benefited the wealthiest americans and the biggest corporations that slowed the economy, didn't do a hell of a lot for economic growth and wasn't paid for and racked up this enormous deficit. just as we've never apologized when the federal government forgave almost every single cent of over $700 billion in loans to hundreds of thousands of small businesses across america during the pandemic no one complained those loans caused inflation a lot of these folks and small businesses are working and middle-class families. they needed help it was the right thing to do so the outrage over helping working people with student loans, i think -- >> we're going to dip away from the president announcing his ne student loan forgiveness plan, will wipe out $10,000 of debt

for most borrowers $20,000 for pell grant recipients relief is limited to those earning less than $125,000 $250,000 for couples it could affect up to 45 million loans the federal government, the largest lender, $1.6 trillion in loans for many of the people it will wipe out their obligation on student debt so that's it thanks for watching "power lunch. "closing bell" begins right now. stocks mostly higher but well off their best levels of the day as the major averages try to gain back some of the ground lost earlier in the week. the most important hour of trading starts now welcome in to "closing bell. i'm mike santoli in for sara eisen. straight to the market dashboard showing you the s&p 500 really trying to hang tough in august, above the 4100 mark. just to rewind, almost 19%, if you take interday low to high from june up to last week's high, pull back abou