heroines like tammy duckworth. tammy, you are the best. i tell you but do you know what, my good friend dick durbin, and he is a good friend, we have worked together a long, long time in the united states senate, he's the single most effective senator in getting things done that's not a joke. it's not just judiciary committee. he's made sure that we got more judges appointed -- we have appointed more african american women to the -- to the -- to the federal bench than any other -- every other president combined and he got the first and brightest justice ketanji brown. i said i was going to put a black woman on the court and he put her on the court for me. he put her on the court for me dick, you really are the best, man. by the way, when i have questions about just about anything at all beyond the judiciary committee i still call him anyway for his advice.

so thank you representative danny davis danny, you've been a good friend for a long time. he's always there. and to all the elected officials, members of congress, elected officials here today, thank you. thank you for the welcome and welcoming me to chicago. you know, first court of the 20th century samberg described chicago as a city of big shoulders. a city of big shoulders. he was describing the big shoulders of the working class american town who were building this city. same time building the middle class. i'm here in chicago today for the first quarter of the 21st century to talk about the economic vision for this country. the economy that grows the economy from the middle out and the bottom out instead of just the top down, when that happens everybody does well. the wealthy still do everybody does well.

the wealthy still do well. we all do well this vision is a fundamental break from the economic theory that has failed america's middle class for decades now. it's called trickle down economics, fundamental economics, trickle down. the idea was we should cut taxes for the wealthy, big corporations and i know some big corporations there's more corporations in delaware incorporated than every other state in the union combined. i want them to do well but i'm tired of waiting for the trickle down it doesn't come very quickly not sh trickle down at my dad's kitchen table growing up and it's a belief that we should shrink public investment in infrastructure and public education. shrink it. and we should let good jobs get shipped overseas and we actually have a tax policy that encourages them to go overseas to save money. we should let big corporations amass more power while making it harder to join a union

i meant what i said when i said i'm going to be the most pro-union president in american history and i make no apologies for it my predecessor if my mom was here god bless her soul my predecessor enacted the greatest iteration of a failed theory tax cuts for the wealthy it wasn't paid for and the estimated cost of his tax cut . now republicans are at it again pushing tax cuts for large corporations and the walty and adding trillions of dollars to the deficit. trillions. folks, let me say this as clearly as i can, trickle down approach failed the middle class. it failed america. it blew up the deficit it increased inequity and it weakened our infrastructure. it stripped the dignity, pride and hope out of communities one after another, particularly through the midwest, western pennsylvania and west.

people working as hard as ever couldn't get ahead because it's harder to buy a home, pay for college education, start a business, retire with dignity. the first time in a generation the path of the middle class seemed out of reach. i don't think it's hyperbole, i think it's a fact. no matter whether you're a democrat, republican or independent. i knew we couldn't go back to the same failed policies when i ran so i came into office determined to change the economic direction of this country. to move from trickle down economics to what everyone in the "wall street journal" and financial journal began to call bidenomics i didn't come up with the name i really didn't. i now claim t but they are the ones that used it first. i got asked by a press person this morning getting on the helicopter in washington, when i asked you about bidenomics a long time ago you said you didn't know what it was. i said i didn't name it bidenomics i didn't realize the economists in the "wall street journal" did, but i think it's a plan

that i'm happy to call bidenomics and guess what, bidenomics is works. when i took office the pandemic was raging and our economy was reeling. supply chains were broken. millions of people unemployed. hundreds of thousands of small businesses on the verge of closing after so many had already closed literally hundreds of thousands on the verge of closing. today u.s. has the highest economic growth rate leading the world economies since the pandemic the highest in the world as dick said with his help we created 13.4 million new jobs. more jobs in two years than any president has ever made in four. in two and, folks, it's no accident that's bidenomics in action. bidenomics is about building an economy from the middle out and the bottom up, not the top down.

and there are three fundamental changes that we decided to make with the help of congress we've been able to do it first, making smart investments in america second, educating and empowering american workers to grow the middle class and third, promoting competition to lower costs to help small businesses here is what i mean by all of this, under trickle down economics it didn't matter whether you made things as long as you helped the company's bottom line. even if that meant seeing jobs and industries go overseas for cheaper labor. supply chains and key products moved overseas like china and much of asia the entire towns and communities from where i live all the way out there through themidwest were shut down, hollowed out i mean, literally hollowed out all over the country parents have to -- many of you all elected officials heard people tell you this -- had to say to their children, honey, i lost my

job, we can't live here anymore, we have to move. trickle down also meant slashing public investment on things that helped drive long-term growth and helped america lead the world in innovation. we used to invest 2% of our gross domestic product in research and development by the time i came to office that was down to .7% we used to be number one in the world in research and development. that's what we're known for. now we rank number nine in the world. china decades ago was number eight in the world now it's number two in the world. other nations are closing in fast we used to have the best infrastructure in the world, roads, bridges, et cetera, but then we fell to -- rated 13th best investment in infrastructure 2 to 13. how can you have the best economy in the world without the best infrastructure in the

world? how do you get product from one place to another i was out in pittsburgh recently, the city of bridges, bridges collapsing all over the nation you've seen it on television railroad bridges collapsing. bidenomics we're turning this around, supporting targeted investments, strengthening america's economic security, our national security, our energy security and our climate security i designed and we signed a bipartisan infrastructure law, it's already announced -- i heard some of the speakers before touting some of it -- it's already announced 35,000 projects across the country. think of it this way, nearly a century ago frank lip roosevelt's railroad electrification act brought electricity to millions of americans in rural america 70 years ago dwight eisenhower launched the interstate highway system, the largest infrastructure project to date in history that's what the bipartisan infrastructure law does.

it will be for our kids and grandkids, only bigger just last week we announced our plan to bring affordable high speed internet to end the decade of unaffordable and inaccessible internet to every home in america. every small business in america. and to no one's surprise -- and to no one's surprise it's bringing along some converts people strenuously opposed, voting against it when we had this going on. this was going to bankrupt america. well, there is a guy named tuberville, senator from alabama, announcing he strongly opposed the legislation, now he's hailing its passage here is what he said, quote, it's great to see alabama receive critical funds to boost ongoing broadband efforts. we're replacing every single lead pipe in this country and

putting our children's health back directly. 400,000 schools, 10 million homes. we're fixing crumbling bridges, upgrading our power grid, renovating our airports and ports and, dick, one of you talked about that, how important that is for the great lakes as well last week we opened i-95 5 back where i live and you go up the east coast, it's one of the most important lengths in the entire east coast well, guess what, less than -- a guy driving a truck hit -- anyway, he knocked down a whole bridge and the whole four lanes of the highway i went up there and i said we're going to get this -- the number one project to get done. within one week of my being there, two weeks of it happening, tanker trucks that crashed and cause this had overpass that has 150,000

vehicles travel on it every day and 14,000 trucks, it's critical to our economy, we did it with union workers. we closed all the loopholes. we used all american products. all american materials we used federal infrastructure project, made in america made in america. not a slogan it's actually happening. you know, when roosevelt passed the legislation in the '30s about unions being able to be engaged, everybody think they just legalized unions, he said we should encourage unions there was a little provision there that presidents paid little attention to, it said buy america. that meant that if a president was given money by the congress to build, say, a new deck on an aircraft carrier, whatever it was, he or she was supposed to use 100% american labor and 100% american products. it hardly happened exceptions down to 30% i changed all that

we are now investing in key industries of the future, making targeted investments to promote domestic production of semiconductors, batteries, electric cars, clean energy. under the trickle down economics theory was that public investment would discourage private investment give me a break. we wasn't to see a whole lot of major corporations and said are you more or less likely to invest if the government invests? overwhelmingly they had it backwards, they said, no, we're more likely to invest if the government invests public investment declined at home, industries that we invented start to move overseas like semiconductors. i want to remind you america invented these chips small computerchips the size o the tip of your finger that affect nearly everything in your life from whether your cellphone functions, your automobiles -- can be built, refrigerators work, it goes on and on into sophisticated weapons systems, it's all in that little --

without that computer chip, we've got a real problem but over time we went from producing 40% of those chips down to 10% st%. not many more. bidenomics means industries of the future are going to grow right here at home at home. i mean it. not a joke under bidenomics we have already had over $490 billion in private investment commitments $490 billion from u.s. companies and companies around the world coming to the united states of america. working with our global partners america's investments in clean energy technology are going to reduce carbon emissions, continue to lower the cost of wind you talked about the wind farm you're talking about you know, it's already cheaper -- wind and solar are already significantly cheaper than coal and oil. you're not going to see anybody

building a new coal-fired plant in america not just because i'd like to pass a law to say that, it's too expensive. it doesn't work anymore. solar power is not just here, but around the world, and we used to be the center of building these solar panels. we're coming back and doing it again. america is going to lead again look, it's a win for the united states and a win for the world that bill on my decision to rejoin the paris climate agreement on the first dame i came into office the first day. and by the way, my predecessor talks a lot about increasing manufacturing. remember infrastructure week infrastructure week became infrastructure week and week and week and week -- it never happened we've got infrastructure decade done right off the bat but in reality construction of

manufacturing facilities here on u.s. soil have grown only 2% on my predecessor's watch in four years. 2% my watch it's grown nearly 100% in two years 100% pause of all the members of congress that are here and i'm not being solicitous look, weirton, west virginia, where a squeal mill closed in the beginning of this century, 2001 or '2, in that range, it employed thousands and had thousands of good-paying jobs that were lost today with the help of the of the inflation reduction plan a new plant is being billed, building batteries and the batteries will help restore energy, it's being built on the exact same site bringing back 750 good-paying jobs, bringing back a sense of pride and hope for the future for all the people of weirton and surrounding areas. i believe every american willing

to work hard should be able to say where they grew up and stay where they grew up that's bidenomics. my dad used to have an expression, josie -- and my dad was a well read guy, never got to go to college and a hard-working gentleman we had dinner where we incidentally had conversation and incidentally ate my dad used to say, remember, a job is about a lot more than a paycheck and i give you my word, he said a job is about a lot more than a paycheck, joey, it's about your dignity. it's about pride it's about being able to look your kid in the eye and say, honey, it's going to be okay think about it, i mean, literal sense, think about that. it's about your dignity. how you're treated and being able to make a living you can tell your kids it's going to be okay the second big part of bidenomics is empowering american workers when i took office unemployment was over 6% but the american

rescue plan we provided relief and support directly to working-class families our economy came roaring back, unemployment dipped below 4% by the end of into i first year in office now it's been below 4% for the longest stretch in 50 years of american history and i must admit i concentrated and we've seen with the help of jesse jackson's legacy and a lot of other people here we've seen record low unemployment for african americans, record low unemployment for african americans. and hispanic workers with disabilities the lowest unemployment rate in 70 years for american women, and you make up half the economy and probably two-thirds of [ inaudible ]. no, really, think about it pause for a second when i was trying to get -- name me a time when you thought any

democrat would get the endorsement -- within a week -- every single environmental group out there, the afl-cio, the women's groups i mean, here is the deal, when i sat with the afl-cio and i sat with the ibw starting when i ran last time, i said here is the deal, though, i'm going to be the most pro-american -- most pro-union president in history, but you've got to employ more women, you've got to attract more african americans and you have to attract more minorities. they have. it's beginning to change in every industry. from -- anyway, they're building sites where they're training -- by the way, the other thing i've told labor guys, you have to brag a little bit more about what you do. you realize to get a license to be an electrician in this town or any other you have to essentially go to four years of college. you have to go through an

apprenticeship that takes you four years to five, depending, or you can't get a job you get paid a little bit, but you can't get your license to be an electrician, a labor electrician, until that happens. look, pay for low wage workers has grown at the fastest pace in over two decades full employment means workers, especially low-wage workers, have more bargaining power to demand good pay, to secure good jobs and this is a thing that is consistent with whether or not people think are moving in the right direction. job satisfaction based on every poll is at a 36-year high. more people are satisfied with their jobs than anytime in the past 36 years. the shame of working age americans in the workforce -- the share of them is the highest it's been in 20 years. remember they were saying biden policy isn't working, he is just paying people not to work. people on the sidelines. well, guess what, every single day in four years before i took

office, you may remember, i took a lot of criticism, republicans were encouraging me to stay home and not work they were wrong, the evidence is clear, americans are back to work who have been on the sidelines and they want to come back we are going to continue this progress and make sure every american has the training and education to participate in this new economy. we have increased pell grants, made landmark investments in historic black units, we've invested more in registered apprenticeships and career technology education programs than any previous administration in american history. many of this new economy we don't need everyone to have a four-year degree it's great if you have one, we're trying to make it easier to get one, but you don't need one for a great paying job anymore. how many remember going back to high school and they had shop class and classes where people could learn if they were interested in working with their hands.

they don't have them very much anywhere around the country. my wife teaches at a community college full-time still, she has an expression, she said any country that outcompetes us -- excuse me, outeducates us will outcompete us. we're not going to let that happen that's why we are investing significantly in education i'm determined to keep fighting for universal pre-k and free community college. we're also fighting to make -- we're also fighting to make child care more affordable because we know one benefit is that it opens up significant opportunities for parents to be able to go back and join the workforce. we're also making it easier to empower workers by making it easier to join a union as i've said i've promised to be the most pro-union president in history. i tell business leaders all the time union workers are the best in the world it takes four to five years in that apprenticeship.

it's like going to college they will do the right job on time, long-term cost for business is less you know, addressing the four-year decline in unionization by supporting project labor agreements, collective bargaining, prevailing wage loss, that's the reason americas support of unions is higher than it's been in 60 years. 60 years by the way, i met with the business round table and others, they said why am i so pro union? i said because it helps you. it really does think about it total cost of a major project goes down when you have the best workers in the world doing it. not a joke it's true. it lasts longer, you don't have to worry about whether that socket is going to work. look, young people are organizing new companies and industries, you know, i've indicated to labor leaders they must expand their ranks. as i said, more women, more minorities that's what we have to do. third part of bidenomics is

promoting competition because when companies have to compete on a level playing field they have to work harder to attract customers. recruit and retain workers some of you businesspeople in here know that well. but under the trickle down economics theory three quarters of u.s. industries -- excuse me -- consecrated -- i'm thinking i didn't go to mass they were moving to diminish competition. well, that may have been things -- made things easier for big corporations but for everybody else it made it harder and more expensive making it harder for small businesses to compete and stifled invasion and stifled wages for workers and made our supply chains more vulnerable. so, folks, that's been the republican plan so far, good for

big business, bad for everybody else it isn't even that good for big business anymore i came to office with a really different plan the cops are back on the beat enforcing antitrust laws my administration is working to crack down on what we used to call noncompete agreements we still call them that. these prevent 30 million americans from security guards to retail workers from walking across the street to a same kind of business and getting a higher pay, getting 5 bucks more a week or 10 bucks more a week. not compete agreements one thing noncompete agreements if you are dealing with trade secrets, it's the other thing if you are flipping a hamburger and get 5 cents more walking across the street to a different place. also we promoted or are supporting small businesses. vice president harris has prioritized providing support and capital for small business owners including for rural

minorities and women, entrepreneurs, including through a brand-new program that's already helping deliver billions of dollars in growth capital to small businesses in every state. we have seen a record 10.5 million applications -- 10.5 million applications, folks look to go start a small business just in the last two years 10.5 every one of those applications is an application of hope. hope competition also means lowering costs for consumers, bringing down inflation remains one of my top priorities today inflation is less than half it was a year ago and that inflation caused by russia and by the war in ukraine and by what was going on. but we knew we had to do more. there's more than one way to bring down costs another expression my dad used to use, for real, he would say, joey, he would say at the end of the month the question is after you pay all your bills do you have just a little left for

breathing room just a little left for breathing room all your bills paid, do you have anything left? well, inflation eats into that, obviously, but, guess what, bringing down the cost of medication goes a long way to giving you a little bit more that's why through the inflation reduction act we finally gave medicare the power to negotiate lower prescription drug prices like the va does now we've been trying to get this done dick and i for decades in the senate this time we finally beat big pharma for the first time. you know -- you know, same drug made by the same american company sold in chicago is more expensive than that same drug sold in toronto, great britain, france, germany, any city you can name for real now seniors on medicare are

paying as much as -- who are paying $400 a month for insulin last year are now paying $35 a month. guess what, do you know how much it costs to make that insulin? ten, t-e-n, dollars, package it maybe 12 total the guy who invented the insulin didn't even ask for a patent because he wanted everybody to have access to it. we're just finishing the first round of negotiated drug prices and we will save the taxpayers this year $160 billion that's like a tax cut. lowers the cost of prescription drugs and lowers the federal deficit as well. we're expanding health care coverage for more americans building on barack's affordable care act you know why we're doing that? i'm proud to strengthen that act, saving average families $800 a year on their health care

premiums we also are fighting to end junk fees most people don't think of it that way here is what a junk fee is, it can add up to hundreds of dollars a month for families like that extra fee when you say i want my child to sit next to me when i take him to see grand pop on the west coast. it's not listed now. they're listing it now hotel resort fees, you don't realize you are not told they are going -- you know that ad on television, mine is $200, his is $180 well, guess what -- or the one that bothers me the most is overdraft fees for banks the banks made $7.7 billion a year on overdraft fees you overdraft a check, you get a penalty. it's one of the leading bank presidents, god love him, he's passed away, but he had a yacht, the name of the yacht was

"overdraft." i swear to god well, guess what, there are going to be no more overdraft fees folks, we're doing this -- doing all this reducing the deficit at the same time. just in my first two years in office my team and i have reduced the deficit by $1.7 trillion just in two years. and the budget agreement i negotiated without having to give away anything of consequence reduced the deficit by another trillion dollars. you know, reversing 40 years of republican trickle down economics that helped few but hurt the middle class, it's going to take some time. we're in a place where some big pieces and we're moving in the direction where we can get some more done and people will see it what i'm doing and i knew i would have to do this, all those major legislation to be passed people go, that's great, but it

takes time to get it out in the field. it takes time for them to see it i'm not here to declare victory on the economy, i'm here to say we have a plan that's turning things around incredibly quickly. we have more work to do. for example, does anyone here think the federal tax system is fair raise your hand. no matter how much money you make we're going to make it fair by eliminating loopholes for crypto traders, hedge fund managers big oil made $200 billion that's year and got a $30,000 tax break -- $30 billion tax break we're going to get billionaires to pay up at least the minimum tax. when we began there were 750 -- before the pandemic -- 750 billionaires, now there are 1,000. do you know how much their average tax is they pay federal tax 8% taxes no billionaire should pay lower tax rate than a schoolteacher, a firefighter, a cop i mean, this is -- i'm not

talking about the old, old days of 70% tax, i'm talking about a fair shot. if they just paid the top tax rate that exists now which is below 30% we could raise billions and billions of dollars, lowering the deficit, allowing us to pay for so much more we have to do that's the next phase of this fight. making the tax code fair for everyone making the wealthy, the super wealthy and big corporations begin to pay their fair share without raising taxes all on the middle class i made a commitment when i got elected, no one in america making under $400,000 would ever have to pay a single penny more in federal taxes as long as i'm the president and i've kept that promise. $400,000 is a lot of money where i come from. let me close with this, when i

came to office i had a fundamental decision to make, are we going to continue trickle down economics as a policy that's failed time and again, grew inequality, saw jobs go overseas, and you've seen it out here, towns hollowed out i ran on the promise i was going to end this and that i would begin to build an economy out from the middle out and bottom up we're not going to continue down the trickle down path as long as i'm president. this is the moment we're finally going to make a break and move away from an economy that has existed in a fundamentally different direction. here is the simple truth about trickle down economics, it didn't represent the best of american capitalism let alone america. it represented a moment where we talked away and how many in this country -- how this country was built, how this city was built bidenomics is about the future bidenomics is justanother way

of saying restore the american dream because it worked before it's rooted in what we've always worked best at in this country, investing in america investing in americans because when we invest in our people we strengthen the middle class, we see the economy grow, that benefits all americans. that's the american dream. 40 years of trickle down limited that dream for those -- except for those at the top. too many for too long have suggested that it's only available if you have a four-year college degree, you can work -- work at a tech center these new factories that are opening, these fans that are opening for semiconductors without a college degree you will make $100,000 to $130,000 a year $100,000 to $130,000 but i believe that every american willing to work hard

should be able to get a job no matter where they are, in the heartland, in small towns and every part of this country to raise their kids on a good paycheck and keep their roots where they grew up that's bidenomics. i think the economic philosophy is not going to restore the american dream that we have now, that philosophy, but this new one will it's going to -- and i think it's going to help lesson the divisions of this country by bringing us back together. it makes it awful hard to demagogue something when it's working, although they do it all the time i've long said -- and i mean this -- i was on the tibetan plateau with xi jinping, i traveled 17,000 miles with him, i've spoke with him more than any other heads of state because it started when i was vice president and president who was the president and he was the vice president, we knew he was going to be the successor. it was inappropriate for barack to spend that time with him but i spent a lot of time with him i met alone with him just he and

i and a simultaneous interpreter 68 times, 68 hours, 68 times -- more than 68 hours by the way, i turn in all my notes. but that's the god's truth he asked me -- we were in the tibetan plateau and he asked me can you define america for me? i said, yes, in one word, and i meant it, possibilities. possibilities. we're a land of possibilities. i told him there's never been a good bet to bet against america. never. and i can honestly -- i can honestly say i've never been more optimistic about america's future, i swear to god, i've never been more optimistic we just have to remember who we are. we are the united states of america. there is nothing, nothing beyond our capacity if we work

together so god bless you all and may god protect our troops thank you. thank you. thank you. ♪ that was president biden giving what sounded like the opening speech of his 2024 presidential reelection campaign talking multiple times about not continuing down the trickle down economics plan as you heard laying out multiple different ideas, incredibly promoting labor unions amongst other efforts, medicare pricing negotiations, as he works to lay out this economic message for the next let's call it year, year and a half now. welcome to "the exchange," i'm kelly evans, we appreciate you standing by. the ten year, the markets, we're keeping an eye on everything we've seen things dip towards session lows, we will circle back in just a moment. let's get reaction from our

panel. we have emily wilkins to react to the president's speech. peter bookbar is here on set with me, we also welcome libby cantrell all right. everybody, emily, i will send it to you first, what was the significance you hear here >> the difficult thing for biden, you are often told show don't tell but the fact of the matter is that most of biden's big policy wins over the last couple of years he can't show them yet, it takes time to be implemented, you have to go through the permits and get the construction most americans they are not aware what have biden has done in the last couple of years, this he don't know how it impacts them that's really the key for this speech is to get out there to tell americans what he's done, to take credit for the stronger labor market that we're seeing and also kind of say that he's going to continue pushing for priorities, a tax on the wealthy, getting rid of hidden fees, things that we know are pretty popular with the majority of americans that's what biden has to do with this message is say to americans yot have noticed that the roads in your town are fixed

but we have done the investment and that good things are coming. >> libby, maybe there's three significant things we can emphasize along with everything else that jumps out to you, number one, we have massive -- i shouldn't say massive -- we have a lot of fiscal stimulus coming at a time when the fed is trying to tighten he said we've done infrastructure decade. we have seen a massive construction spending boom so that has been an area of significance also today we've had reports in the "wall street journal" about further clamp down on some of nvidia and the ai chips heading for china. didn't get that detail in this speech although he mentioned chips a couple of times. >> yeah, that's right. i mean, this is obviously a sales pitch for what he has done to emily's point trying to educate voters about the intricacies of really his big three legislative achievements, the chips bill, inflation reduction act and at infrastructure bill, as emily points out really won't start hitting the economy until kind of 2024-2025 he was trying to preview all of those.

and then also put forth his vision i don't think that, kelly, his vision today really sounds all that different from his vision in 2020, just maybe he has some more data to support it in terms of the low unemployment, softening inflation which is, you know, a risk because of course inflation has been stickier i think broadly it's interesting that he is absolutely embracing bidenomics here, he's embracing the economic score card so to speak and if the economy looks like it does today on the election eve, that will bode well for him, however, there's a real risk, right, because we still have a year plus in advance of the election and if the economy does slow, which many folks think it will, especially going into the end of this year and beginning of next year, it could be a risk for him that he has so doubled down on the economic track record.

i think all of the themes that we heard today we will hear very much so for the next 15 months. >> peter, what's most market moving right now is it what the administration ultimately does with regards to ai chips, invidia has been unde pressure, not that much, half a percent lower at last check. what's the most market moving significance here? >> the money is beginning to be put to work and you see construction and manufacturing facilities that are hanging in there and the infrastructure spending that's just beginning to show up to libby's point about seeing the impact in 2024-2025, we will also see -- it will become more difficult for jay powell to contain inflation. the 20 years leading into covid core goods prices averaged zero. with a lot of this reshoring and spending on doing things here, that's not going to happen inflation is going to bottom out at maybe 3 to 4 instead of 1 to 2 with a lot of it because of this goods spending which means

that interest rates are going to stay higher for a while and maybe central bank's job more difficult getting it back to 2%. that will take a couple years but that's what keeps inflation higher for longer. >> higher goods prices from all of this, the continued fiscal stimulus you could call it at a time when the fed is pulling back so i guess the question is does the fed end up still pushing against these developments and trying to get inflation lower and ultimately maybe, you know, more slowing the economy than it would need to or really want to otherwise as a result? >> well, that's the big question is what sort of tolerance does the fed have for economic slowing. for economic slowdown while they're still dealing with inflation. what unemployment rate will get them to blink off this fight we don't know yet. jay doesn't know yet we are going to have to see. but we're going to reach -- they're going to reach that fork in the road where the unemployment rate is higher and inflation is not getting back to 2% and they will have to make choices. >> emily, before we let you go, what's next in terms of policy initiatives from this white house? should we wait to see more

clarity yes on what else they might do on the chips front and what else is in the air right now? >> i think one of the things that biden touched on that we do know that theres bipartisan support for is is that he will nation of hidden fees. exactly how that gets done that's not quite clear at the time congress obviously just got done with the debt limit and they are going to have to focus on getting the government funded. that will take a lot of oxygen out of the door in d.c. and that means that some of these other priorities that biden wants to see, i mean, certainly a tax on the welty is probably not going to be done with republicans controlling the house, but something like hidden fees, perhaps that could go in that wider year-end spending bill they do have more time to get these things done but it's not a lot before we are going to see 2024 kick into high gear and everyone focus on the campaign trail. >> libby, maybe the way i will ask this, then, is should we consider all of these basically a campaign-type wish list? because he obviously can do significant things like what emily is mentioning and when you look at what we've seen from the bills that have already passed, but from here on out what are

your expectations? >> you know the split congress really any sort of hope for real, i think, economy-moving legislation should be pretty dim. we could see something on maybe crypto regulation, with he could maybe see something on energy permitting, that sort of -- if the stars align, but i think the threshold for anything from congress is going to be quite high but as emily pointed out, there are some things they can do administratively and you referred to these export controls which is going to be a continued focus of this administration and regardless of who is in the white house in 2025 i mean, we think that the direction of travel here as it relates to the u.s./china in terms of protecting our intellectual property and innovation around semiconductors and other technologies is here to stay. we will hear more of that and, kelly, that has the added benefit of playing well with voters there is high skepticism among the u.s. electorate so it

achieves two objectives for this administration. >> yeah, plenty of states who are feeling -- seeing massive construction projects as a result of these, that memory is going to last. thank you all. we appreciate it emily and libby. peter, stick around, we are not done with you yet. meanwhile, the ec b's annual monetary policy conference finished up in portugal today. our own sara eisen hosted the panel featuring christine lagarde, jay powell and the bank of japan governor. sara joins us from portugal with some of those highlights this was fun, i have to say, and revealing. >> it was fun for me, too, kelly, not every day you get four of the top central bankers in the world in conversation together which i think you got some glimpses of personality there as well. but as far as the message to investors, quite clear from the fed the ecb and the bank of england and that is higher rates for longer fed chair powell making clear as he has but i think even more

forcefully today that inflation isn't coming down fast enough and that services sector inflation is going to take time and here is what he said about what that means for the policy path for interest rates. >> if you look at the data over the last quarter, what you see is stronger than expected growth, a tighter than expected labor market and higher than expected inflation so that tells us that although policy is restrictive, it's not -- it may not be restrictive enough and it has not been restrictive for long enough. >> pretty clear, there, on the path being more restrictive and for longer amount of time. i asked him so if the majority of fed members and with that view think that there's more to do why did you then pause in june he said, well, we are just trying to slow things down and get a sense of how the policy is working. but then said that he would not rule out consecutive interest rate hikes, ie, july and potentially september. when i asked if he was comfortable with every other

meeting doing an interest rate hike translation, kelly, i thought he was pretty hawkish and there were other ways he said it as well he said that the recession is not his base case scenario, he said he didn't think fiscal policy was having a big impact on the flanation and the economy, either. he said in construction but not overall inflation. >> i think the markets are catching up with that point of view we were kind of down, then we came up, dow down 135, often we see a little bit of a delayed reaction i thought the comments from governor andrew bailey were striking as well he's been under pressure because inflation in the uk has been higher than expected there are ramification what's going on with russia and ukraine and that could keep prices uncomfortably high, is that something they should respond to po policy-wise. >> yeah, i thought it was interesting when he talked about food inflation, he said i talked to i a lot of businesses and food producers in particular and that they're high because of the supply shortages and the material disruptions that have been happening as a result of

the war in ukraine so i said but you can't do anything about that as a central banker he said it's important to know that when it comes to the double hike which was a surprise 50 basis points two weeks ago, this was his first time really talking about it because he didn't give a presser that day so here is why he says it was justified to go bigger >> the uk economy has turned out to be much more resilient and that's a good thing. there's many good aspects to that, but what goes with that resilience is signs of a very tight labor market, which is showing through in pay, pay awards, but also showing through -- i mean, we have an unemployment rate of 3.8% which is historically right at the low end, so that resilience is coming through that way, but when we looked at the -- again, to christine's point, when we looked at the data because we, too, are being driven by evidence at the moment, the cumulative data both particularly on the labor market and on the inflation release we had, which to us showed clear

signs of persistence, caused us to conclude we had to make really quite a strong move at that point it was justified >> they are dealing with higher inflation than even europe they are in the 8% range, 8.6% was the surprise inflation read that they have just had. europe at least the cpi head line is 6%, u.s. cpi head line we are down to 4% but central bankers are looking at the core which remains sticker, stubbornly high and they are trying to target that. i asked is that because of brexit and he downplayed that and said, no, it's the tight labor market. >> it was absolutely the right question peter, i don't know about you but i thought the star of the show might have been ueda. >> you had three of the four to sara's point reiterated that higher for longer is their theme, where ueda was like lower for longer is mine. >> why is that >> it's a good question because he was talking about inflation, core inflation or below headline

inflation being below their trend even know that core food and energy is running at 4 i think he's reaching a point where he's going to have to make a move at some point, but as he said during the interview, you know, 25 years of lagging monetary policy, i guess he doesn't feel like yet his hand is forced. >> right. >> but also sara talked about the weakening yen and now they will do that i think you can be sure if the yen breaks 145, 150, there's going to be even more extreme pressure on him to widen yield curve control and maybe get out of negative rates. >> quick last words, i thought he was quite personable and funny. >> i thought he was funny. he got the biggest laughs and applause and even roaring laughter from the crowd which you don't often expect from central bankers. he made a joke about the 25-year policy lag also made a joke about going all in on paper money, which is funny if you know the bank of japan policy versus the digital currencies from europe and the

uk they have been waiting so long for inflation and he still characterizes underlying inflation as below 2% and continuing to be so for this year maybe sees it getting to 2% next year, doesn't have a lot of confidence in a that forecast but maybe that would cause him to rethink that was as close as to easing money policy. >> you wonder is he going to have to catch up with the central bankers or they down to him. sara, great stuff. thanks for sticking around we appreciate it sara eisen in portugal. korean barbecue chain restaurant group popping in his debut. is the drought over? we'll look at other names on deck and a look at the markets, dow down 139, nasdaq only up 4 and the rugssell up.0.2 we're back after this.

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restaurant group is surging in its public debut shares priced at 12 last night, opened at 18.30, almost hit 20 bucks. i think that's the price, about $15 right now. relatively small deal raising $43 million. not the only ipo we're watching

this week. to bob pisani at the new york stock exchange. >> two things about gen restaurant group first, it's an upsized deal. that's very important here they increased the price and they increased the size of it. they raised $43 million instead of $33 million a small deal but a significant upsize it opens at $18, 50% higher. that's pretty impressive not because the deal was mispriced, i don't think, but this is continuing demand for ipos, new stock out there, a good folon to cava last week cava priced at $22, opened at $42, and look here, it's still at $42 that's remarkable because normally you get a first day big pop, and then in the following weeks usually trades down. now it's still holding up. that's a good sign for the ipo market three big deals tomorrow we've talked about it all week, first we have fidelis insurance, trading here at the new york

stock exchange a property reinsurance and catastrophe insurance company. kodak gas services, national gas compression, compressing natural gas and liquified natural gas, and savers value village, largest for profit thrift operator in the united states, interesting company here, they will go public tomorrow and the important thing they're profitable, thrift is very cool, and the eco angle is strong here. you hear about food waste all the time bottom line, they talk about clothing waste back to you. >> thank you i appreciate it. bob pisani meantime shares of fryer, a battery maker down 4%, higher for the week after the company announced key updates including finance for the gigaamerican factory, at the inaugural investor day yesterday, committed to spending $2.5 million on the facility in georgia and one of the beneficiaries of the inflation reduction act. here with me is the ceo.

so great to see you. >> kelly, it's a pleasure to be here. >> i'm right about this being in georgia, $2.5 billion. this is a massive deal for them and your company >> massive deal. the inflation reduction act is the poster child for mitigating climate change, and it's also efforts to really reduce energy inflation. inflation reduction act serves many purposes. it's the largest impactful act since the climate change treaty in paris we decided to accelerate our efforts into the u.s. as a direct result of the inflation reduction act. >> i think that's interesting because foreign governments have been criticizing the u.s. for the subsidies but here's a foreign company benefitting from access because you're building in the u.s >> we're a norwegian company building our first facility in norway, made our first batteries there using m.i.t. technology. we will take the u.s. based technology take it to large scale here in the u.s. as a direct consequence of the inflation reduction act. >> how many employees and what's the -- where will your batteries

be deployed? >> we've committed to spend more than $2.6 billion, and employ 725 people in georgia, that's the start. we can go higher than this we have 400 acres of prime industrial acreage in georgia. we will target the energy storage markets which will complement solar deployments these are technologies and every time double the deployment of technology costs come down. >> how much is the u.s. government contributing implicitly or the expolitically. >> the credits that benefit battery makers until 2032 -- >> you can't say trickle down, the president said no trickle down. >> trending downwards, 30 to 40% of production costs that you get in direct production tax credits. very simple, sort of effective and will impact for sure the cost of batteries. >> any reasons investors aren't as enthusiastic? what might they be concerned

about? this project in particular or in jen until. >> i think battery is a new industry for the western hemisphere we rely on asian imports and chinese imports in particular, but battery need to be included everywhere in the energy transition 75% of all the decarbonization efforts will have to have batteries in them. it's a matter of education and waking up to the fact that batteries is the next snil could there be more to come for you in the u.s. >> absolutely. >> really? tom, thanks for joining us as you make the swing through the u.s. they appreciate this investment. tom jensen, ceo of freyer. jon fortt getting ready for "power lunch" in for tyler i will join him with more on the other side of this break ing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done.

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welcome to "power lunch. alongside kelly evans i'm jon fortt. coming up, president biden giving a major speech on the economy laying out biden economics as he tries to convince americans t