to keep the money in our pockets and not pay for these inflated prices. so far the market's trying to come back a little bit. a lot of folks today said we were going to be okay. i don't think there'll be a recession, but i think we're going through a lot of unnecessary pain, and that's what hurts me the most. liz claman, i'm buckled up, last hour's going to be a doozy. liz: yeah. there's no breather in this final hour, charles, none at all. you guys see exactly what's going on. they came, they saw and they are fleeing. we're talking about the bulls, because at a its low of the session, the dow swooned nearly 900 points after inflation hit a 40-year high. right now the dow is lower but just by 618, and i say just considering where we've been, but the damage the is done after consumer prices in may surged higher than expected driven in great part by a sharp prize, you guessed it, in energy prices. but technology has been hit particularly hard at this hour. the nasdaq down earlier more

than 3.5%. right now we're down 2.7%, a lot of 321 points. with inflation scalding hot, investors are now bracing for a federal reserve willing to risk recession by speeding up its timetable for interest rate hikes. the 2-year treasury rate -- this is the most sensitive to interest rate hikes -- spiking above 3% at this hour to the highest level since 2008. we we did mention tech the getting clobbered? docusign, the biggest laggard on the nasdaq 100 after the work from home winner crashing following an earnings miss and disappointing billings guidanceful dan springer joins us shortly with his take on how the software maker turns -- plans to turn this around. miss, rent the runway reporting ike or 's quarterly numbers, it was a pot of chartreuse, now it's getting dragged down. but with the glittering

runaway -- runway ahead, the ceo says rent is about to strike a pose as an inflation hedge. and we've got major news moving on revlon. we'll get to that many just a moment. but first, breaking news, the may consumer inflation number cratering stocks at this hour. not only has investors fleeing the markets, but now this afternoon for the first time this cycle, has the market anticipating federal reserve could be poised for a shock and awe rate hike to douse the inflation flames. fed funds futures, these are the predictions of how high rates will go. they were already showing a 100% probability of at least 50 basis points or half a percentage increase in the benchmark if rate for both june and july, but look at july. there is now a 46% chance that we will see a 75 basis point hike at that meeting. and look at this, granted it's small, but markets now are showing the odds that the fed will drop a water bomb in the form of a full percentage point

move to cool off rising prices. now those odds stand at 9.2%. and while some anticipated that the fed would raise its rate -- would pause, rather, its rate hike pass in september, look at this. now the markets do not believe that at all. ped funds futures pricing in not only, you know, close to is 100% chance -- well, 100% chance of at least 50 basis point hike, but again, 12% of these future traders believe the fed could be forced to increase another 1% in september. now, you can blame all of this angst on this, consumer inflation in may skyrocketing 8.6%, hotter than expected, which indicates the 75 basis points of hikes the fed already implemented are not working yet to tamp down inflation. immediately at the open the majors buckled under the weight of that cpi number. even the core rate, which leaves out food and energy prices, came in at a hotter than expected gain of six-tenths of a percent.

right now the dow down 667. flip it over to the s&p, you see there is a real struggle here, down 92 points. again, off the lows. and as i said, the nasdaq down 351 points. fear has a firm hold on the markets with the volatility indeck, the vix, rising at this moment. and as we see it right now, we look at the vix, i can pull that up, up 6.7% to 27.8. so with all of this happening, let's bring in the floor show. we are joined by scott pullman and chief equity strategist quincy crosby with more than $1 trillion under management along with euro pacific's peter schiff who just two days ago on this show adamantly and now correctly predicted we are far from peak inflation. quincy, the 10-year yield says it all. let's show that to our viewers. morning it was the at 3.04%, but as soon as that cpi number hit the tape the, it charged north, and you can see right now if we can put up that 10-year yield,

let me pull this up at the moment because we're having just a bit of trouble. so i am going to pull up the market overview on that. we do have the 10-year at 3.15%. so this spike mt. yields and and what we see with stocks is showing that the selloff indicates investors are fleeing. first asking questions and then -- sorry. they're fleeing first and asking questions later. quincy, tell me exactly what you feel is the message that we're getting at this moment. >> well, the message is that people were caught off guard, although i have to say yesterday's selloff took volume. we've been in kind of a neutral market, wobbling between good day, bad day, but basically no commitment. yesterday with afternoon there was commitment, and that was something's going to surprise us this morning. and it wasn't going to be good. so all you have is a continuation of this market saying can the fed actually

execute, orchestrate9 a plan to rein in inflation without causing a recession. and when you said, you know, sell first, ask questions later, the market is beginning to say maybe they can't do it. now we have to wait until if next week to see what they have to say and whether or not chairman powell sands up at the podium and says, well, we will probably have a softish landing. the question mark right now is not so much this year, but really 2023 when corporations or may be forced to revise downward. this is what the market indicates, deca claireing whether or not we are going to see a more meaningful slowdown. liz: quincy, we were looking at the dow laggards, we've got financials just getting clocked. jpmorgan, goldman sachs, some of the other names -- well, pretty much all of the big financials in the red. what do you feel is the defensive sector, areas to be

in? >> well, yeah, the ones that work. remember, if in the intensifies, they too will be pulled back. health care, energy, consumer staples, utilities. even part of the reasonable cares reits complex. still okay but has pulled back. and, liz, exactly what you said about footballs, we always here -- financials, we all love how they -- hear how they love a higher interest rate margin but not when it suspects that the, guess what? there won't be any loan growth. the economy could cool down more than expectations. then they don't want the higher interest rates, by the way. liz: okay. scott fullman, you've got your trader hat firmly on your head. this cpi report, we can break it out on screen. some of these numbers were outrageous. gasoline, not a surprise, up about 49% year-over-year, for the month of may. flip it other to used cars, up

16.1%. airline fares up 37.8% year-over-year, up 12.6% just month over month. and you can look at some of the fuel, oil, utilities, there we go. not to mention meat prices, bacon prices anywhere from 12 the-15% higher. and i love this core rate, you know, the core rate beats by one-tenth of a percent, but keep in mind food and energy which is ex, you know, out of the core is two-thirds or a good, you know, major percentage point of what people are spending their money on. so tell me right now what you are buying as you have your trader hat on. >> first of all, liz, you are a thousand percent right, and quincy's also right. but i've got to tell you, you know, energy affects everything because things have to be shipped. those costs are going up. costs for lek lek are -- electricity are going up, so goods and services prices are

going up. and who is it impacting the? the lower class and the lower middle class portions of the country. these are the people who get impacted the most because this is like putting another tax on them, and it really hurts. again, we've talked about many times their val weighs and the pact that some of these stocks that are coming in heavily, the valuations are making them really compelling to look at. you know, we've been long amd, advance microdevices because, again, chips are going to be the needed. things are still going to be built. we're going to still need chips. we have been looking at marriott with hotels because people are still going to be looking to take vacations. they may be cutting them back a bit because of the higher cost, but the fact is people, after the pandemic, people want to get out there. and that's a very, very important thing. you know, trying to get back to some teach of normalcy. and for those who were looking to play in the energy secretary

to have -- sector itself, i've been liking halliburton as well as exxonmobil. even the costs of doing business are going up, exxon is the biggest, and they should be able to weather it the best. liz: halliburton's getting hit, down about 4%, so you'd be buying, certainly, less than yesterday, same with exxonmobil. peter, we rarely, if ever, bring the same guest back -- [laughter] let alone in the same month, but the same week? you were just on, on wednesday, but something just struck me that you said very crftly, we are no nowhere near peak inflation. then we get this number. do you anticipate an intra-meeting rate cut, almost an more than type of situation or a 1% hike rather, a hike in interest rates? what does the fed do next to get hair arms around the situation? >> well, i don't think they're

going to do something intra-meeting. they comeet next week, but they should raise interest rates by a lot more than 100 basis points. even if they were to raise them by 100 basis points today, it's too little to make a difference. it's not going to so the inflation problem. this has been 10 -- 12 years in the making. the fed has been flooding the economy with inflation since they lawn launched qe1, and there's no way to mop up this -- the. charles: hold on, not even a 75 basis point hike in july, which is what the markets are pricing? n in? it's water off a duck's back? >> inflation is at 8.5%, and that's if you believe the cpi, which i don't. rates will still be under 2%, that is a highly inflationary policy. the fed needs to slam on brakes, not ease up on the gas pedal. we need interest rates above the

rate of inflation. we're not even talking about getting anywhere near the rate of inflation, and we need the federal government to cut spending dramatically. they have to eliminate the budget deficit because inflation is coming from deaf the sit spending that's financed by money printing. and we've been doing it for a long time. it is a huge tax on the american public, and it's the not going to go away. liz: quincy, you say with even as peter outlines some very real issues, you liked health care, staples, utilities, energy. would you be buying today? what do you say to people who are pressing the sell buttoned today? >> well, i would say maybe just to calm down and let's wait. i mean, a lot of this is, you know, a worry that next week the fed, you know, just blows it at the fed meeting and, obviously, the fed knows that. we always get asked is how much higher can energy go.

aren't people changing their driving habits many in well, not yet. some people have to get to work. they come from the outside, work in the suburbs, work in the city. but here's something that we have to keep in mind. right now you've got norway, which is one of the largest oil producers, maybe having a big strike. that will create disruption of supply, something we don't want to see right now, especially now. and another thing, yes, shanghai has been closed down again. it'll open, and demand is going to pick up with 25 million people getting back out on the road there if they open up again, which they will. so all of these, not to mention hurricanes, liz. we're entering the hurricane season. disruption of supply where the headline -- liz: yeah. if. >> prices go up. liz: yeah. and remember they shut down those rig in the gulf of mexico when the hurricanes come. we've got to run. we want to thank you all, scott, quincy, peter, we appreciate it.

we do the need to get to this fox business alert. president biden visiting the port of los angeles at this hour blaming high prices on ocean shippers that move containers from asia to the u.s. the president calling upon congress to pass legislation to cut shipping prices. kelly o'grady live at the port of ang lackless and, kelly, inflation -- los angeles. and inflation has to be the elephant on the dock when we talk about what the president was needing to address. >> reporter:, absolutely. i love that, liz, elephant on the dock. i mean, port of l.a. was a great backdrop for his remarks today on the supply chain just minutes ago. 40% of the contain ther traffic coming into the country. he highlighted um improvements on on-time delivery, investment in trucking and professed he's doing everything he can to quell what he call the putin price hikes. i do want to highlight that most of those inflationary pressures as well as the supply chain

snarls began well before the invasion of ukraine. and the president is also now accusing shipping companies of price gouging. >> these companies have raised their prices by as much as 1,000%. that's why i called on congress to crack down -- and they're foreign-owned, foreign-owned shipping companies that the raised their prices while rake aring in just as i said, $190 billion in profit. >> reporter: now, i think the thing that came out of in that everyone's been asking is, okay, well, you're blaming the shipping companies, but why now? i do the want to highlight back in september of 202 21 versus march 2020, prices were already higher. it does feel a little bit suspect that we're finally trying to address price hikes especially with that inflation where it's at today. his? liz: yeah. and beating up on the oil companies and the integrated oil, not going to work. that's not going to really help the situation.

we need actual policy here. all right, good to see you, thank you very much. all right, if meryl streep's devil wears prada character were here, she might say are revenue beats for spring? ground breaking. but it was. ceo jennifer hyman with her take on how the online retailer is actually a play for a high inflation economy. closing bell, folks, we are 44 minutes away from if hearing that bell ring. the dow is down 630 points. remember, when we started the session, low of the session down 8 a 53, so we want to keep an eye on that low marker, make sure we don't get too close to that, or who knows? maybe some bottom fishers will start coming up. we are coming right back, much more ahead. ♪ ♪ mamá, growing up... you were so good to me.

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lay off during the lockdowns, but is adding workers due to increased demand. shares of the company whichen rents out designer wear in the red, down about 1.9%, but earlier were well above $4 a share on very strong earning. joining me now -- actually, reports. they are not profitable yet. let's bring in chairman and ceo jennifer hyman. jennifer, right now with the recession worries swirling, corporations are slash aring their payrolls. you saw stitch fix, the ceo -- who i want our viewers to know, founded the company during the recession -- how do you view this consumer inflation number we got this morning who? yeah. so i don't think any company out there is immune to recessionary or inflationary pressures, but i do think rent the runway is more resistant than others because we're providing enormous economic value to our customers. if so how i think about this is when i founded the business in 2008, consumers in that

recession continued to buy 65 articles of apparel per year, so the same amount that as aa -- as they bought prior to the recession. they just traded down oval-oriented retail -- value oriented retail, but now we believe recommerce can be in the consideration set. when you rent the runway, you are renting a designer dress for less than 10 percent of the retail price, and if you're subscribing to us, each item is costing you only about $20 an item. so as we've seen as customers are getting back to travel and eating out and dating and just emerging into the world, they do want to express themselves differently, and we are a smart, sustain sustainable, economical way for them to do it. liz: yeah. and, you know, you guys argue that that you are an inflation trade because of the numbers you just rolled out. and what's interesting is your subscribe iser numbers, i was

very -- 60% of your sub subscribe scribers had paused or cancel their subscription, and now your subscriber numbers are higher than they were pre-pandemic. so up 70% year-over-year. what are they buying here? what are they renting, rather? celebratory's a big deal. people are having parties again, summer season. >> yeah. so we're really proud of the results, you know, great beat on top line and bottom line. revenue was up 100% year-over-year. in terms of what they're renting, they're remembering for work, they're renting for events that range everywhere from a wedding to a party, to a vacation, to the a date, and what they are renting is the most celebratory the, trendy, colorful clothing that i have seen in 13 years. the clothing itself has become the marketing, which is why we're seeing really cost efficient customer act but decision and -- acquisition growth because as people get back into the world, they want

to feel great, they want to express through their clothing the happiness of now being out of their home. so in a sense -- liz: yeah. well, the happiness of being out of their home but also having to pay higher prices for just about everything. those dinners and those parties they want about to go to, i've actually used your service. we've got some is pictures of when i rented a dress from rent the runway, it was a badgely publish badgley mischka sparkle bunny kind of dress. i i was the emcee for the israeli defense portion ifs friends gala, and you can see me there, and i have to say, it was a really good experience. buying the dress would have been $50, i think i rented it for 30 or 28 back then. there's me -- i will finish with, let me just finish by saying when will you guys be profitable? you say you're on the path to that. can you give us some numbers, or a date on the calendar? >> we said we were getting to free cash flow profitability.

first step is to cover our operating expenses which we plan to do over the next 2-4 quarters, and really excited about the beat that we had to growth margin and to even the last quarter we're really seeing strength across every element of the business. so we hope to continue to deliver and give the market more confidence in our business quarter over quarter. liz: gotcha. jennifer hyman of rent the runway. we are coming right back. thank you so much. we've got the dow the jones industrials still down about 636 points. volatility, there is some serious fear here in the markets. we've got a bunch of experts coming up, gurus, market participants and coming -- and more. ♪ ♪ or whatever this is. but the things that last a lifetime like happiness, love and confidence... you can't buy those. but you can invest in them.

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liz: shares of red lawn -- revlon down 47% on a "wall street journal" report that says the coz met ifics maker is preparing to file for chapter 11

protection as soon as next week. trading was a halted several times in the last hour for volatility. the stock is down 78% year to date. revlon, of course, majority owned by billionaire ronald perlman. he is the chairman of the board. his daughter, deborah, is the chief executive officer. this looks particularly ugly, and we do have to say there were reports by both reuters and the "wall street journal" that the company was in talks to try and push out, extend debt due dates so that it would avoid bankruptcy. at the moment the news is bad although reuters says it has not been able to reach revlon for official comment at the moment. fox business alert, goldman sachs is signaling the tech wreck might have a way to go, and it has downgrade lee stocks to a sell; netflix, ebay, robe lox. we've got problocks down 8.6 percent -- problocks. rate hikes, weakening stay at home trends is catching up to

these three companies in particular. well, sometimes competition can get along. the sew owe of buy now, pay late for its into into the fin-tech space. it says, quote,st the extremely version-proof because it relies on smaller balances for consumers and has a more flexible underwriting industry. apple's announcement has been putting pressure on the entire fin-tech sector because when apple enters a sector, it's like when amazon enters. you know the big competition is coming. right now everybody down, paypal lower by 5%, affirm down 2.25 the %, apple losing 2.8%. shares of alumina are not looking luminous at all at this hour, down 9.5% after the queen sequencing company announced chief financial officer sam sumad is leaving, having accepted the ceo position at quest diagnostics after five years at lumina.

chief strategy and corporate development officer will serve as interim cfo. and shares of vail resorts, are we going to see green here? oh, my gosh, finally! [laughter] a stock that's moving to the upside by 1.8% after the resort operator posted better than expected quarterly results. the company benefited from easing covid restrictions and even reported seeing an uptick on visitors outside of his key peak skiing season. the stock though still down 25% year to late. even john hancock cannot at the moment save docusign shares, but maybe the ceo can. the everything-signature software developer wiping out a quarter of its market value at this hour after missing earnings estimates. but ceo dan springer facing the music and our viewers. he's next on how rising mortgage rates, we're going to ask him how they might, maybe wreak more havoc on docusign's key market,

the housing sector, and what he plans to do the about it. closing bell, we are 28 minutes away. so the good news is we haven't increased the losses since the top of the hour. we're still down for the dow about 624 points. s&p, kind of same, around a loss of 84. the nasdaq down 2.7 at 325 points. tock you sign, next. ♪ ♪ another crazy day? of course—you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want —your team, ours or a mix of both. with the nation's largest ip network. from the most innovative company. bring on today with comcast business.

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♪ liz: all right, we've got red ink all over the screen, the e-signature software company docusign whiff on earnings. surging during the pandemic, trade thing above $300 a share level last fall, but after the

latest earnings report and forecast, wall street rushing in to downgrade the stock with web bush cutting to 50 # a share. it's above that right now, $6 # 6.40. 66.40. so let's bring in ceo dan springer. dan, i really picked through these numbers. youd ad in q167,000 new customers, that's a gain of a 25 the % year-over-year. 25% growth year over year, 43% many international. from that standpoint, i look at these numbers and i say it is not the worst thing in the world. okay, so the sock is selling off. why do you think that's happening, and what are you going to do to insert yourself into the psychology of wall street at the moment and flip it? >> yeah. well, hanks for having me, liz. i think the short answer is while the q1 numbers were quite strong, as you pointed out -- not only that, but the cash flow standpoint -- we felt really good about what we delivered. but at the same time the, we provided forward guidance

particularly around billings. we held our revenue and profit forecasts, but on billings, we said they would be declining, and that's the core question about the growth potential of the business. and most people feel that docusign is a fantastic sort of franchise, and it's the belief that it should be a much higher growth company hand the numbers we just put out many our guidance. i think that's absolutely right x that's our primary focus, to reaccelerate that growth back to the appropriate level. liz: yeah. they got spoiled during the pandemic, and who could have is anticipated that we would have the situation we have now? companies are panicking, they see a recession. do you? and they see the recession, they start trimming the balance sheet and say, let's downgrade that subscription. so tell me exactly what you're seeing and what you see within docusign at the moment. >> yeah. so we haven't seen anything more than anyone else from the macro, a core part of our guidance is cautious about that and understanding what the global

macro can do. but our customers aren't cutting back on docusign, they're just not growing at the levels before. as you said is, we had 67,000 new customers sign is up in the quarter, our existing customers grew, but they're not doing the big increases hay did during the pandemic or even before. that's our priority now. i have to do a better job sharing that we're out working with our customers so they expand beyond their early signature uses and also into our broader agreement cloud. so that's definitely our focus. and to your question about the macro, i think recession would be less of a phenomenon to hurt docusign because it's such a -- [inaudible] the place to be more concerned would be around interest rates, and there's a significant portion of our customers do mortgages, real estate transactions. in a high rate environment, that could in some ways reduce the volume to docusign. liz: okay. to that point -- yeah, to that point, we are looking at mortgage rates week, 30-year

fixed at 5.5%. and that is a tick up from the last week. so, you know, among your clients that are the biggest, housing and banking sectors, i re-fid during the pandemic and used docusign, and it was so convenient. why would i continue even in a roping climate to use anything if else? -- reopening climate? i don't want to schlepp to the bank or to the mortgage office. >> yeah, i think you're spot on. once people have gone to the digital experience of dock you sign, they're not going back to pen and paper. the only issue on interest rates is there were smaller volumes on re-fi, there would be less demand from some of our financial service customers, banks, mortgage service companies. we're an incredibly diversified business, but that is the one piece where someone said what's the concern you have from the guidance on a global economy. it would be rise in interest rates, and we think that could have a somewhat muted impact on

growth. liz: yeah. well, you know, you're one of these disruption companies that the have really changed an entire industry. it was almost like the fax machine hurting the postal service back then. so i want to continue to follow this story the, dan. please come back, thank you. >> i'll look forward to it. thank you so much for having me. liz: dan springer of cook docusign. we should look at bitcoin along with every other risk-focused asset, down 1,0322 the per coin to $29,037 right now as central banks around the world have begun tightening the easy money face sets, just kind of squeezing them off. we're going to go live to austin, texas, where the who's who of the crypto world have gathered at consensus 2022. we've got the closing bell ringing in 18 minutes. just a moment ago we saw more than 250 of the 800-points of losses erased. okay, we kind of lost that footing for the moment. we're still down 678 percent

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liz: well, look, no way around it, it is a very ugly session. and again we are heading back down to deeper levels of red. we've got the dow jones industrials now losing with about 13 minutes left to trade the 773 points. the nasdaq the losing 386. and, folks, what we're going to do is we are killing the rest of the commercial breaks for in the hour because tick by tick which could either start to come back or get worse. we don't need you missing a minute of it. it is your money. speaking of money in different forms, let's get to bitcoin. bitcoin back below $30,000 after

cpi inflation report for may came in higher and hotter than expected and is staying at 40-year highs. the cpi number, consumer inflation, the last major economic indicator that the the federal reserve will see before next week's meeting. risk assets like crypto the have been the first on the chopping block as investors retreat and start the selling just to -- preserve their cash. chief investment strategist anastasia only row sew -- only process sew joins us now. let's get to the macro market picture. what did you make of this inflation number, and did you tell your team, you know what? lighten up on certain sectors or buy certain areas? >> yeah, liz, good to see you. well, it was another shocking number, no doubt. at least the headline was very shocking. i will say, however, it was -- is a constructive development underneath the surface. that core inflation number is

actually receding. what's really driving inflation here, it is good and energy, and i understand the market reaction here that assumes that the fed is going to tighten maybe more significantly than we were expecting before, and that's why the rates are up across curb. but i would actually pause that for a second because the reality is the fed cannot control the food and energy supply. so they're not really trying to hike to slow down food inflation and energy inflation, and what they the really have to slow down is core inflation. and the fact that that seems to have been been peaking, i think is actually a strong bottom to do. to your point, the bottom of the trading range, 3900 on the s&p 500, and if we manage to have a soft is landing scenario and if we are not going into a recession which i don't think we are, then i do think this is the interim level of support. this might be an interim buying opportunity. but, liz, i'll tell you, i

cannot make a wholesale statement that this is the time to increase, you know, equity allocations strategically because the reality is you have a lot of uncertainty, and we're going to be muddling through this range. 3900-4 4200, for the foreseeable future. i still think if you're looking for a quick move higher, this is probably not the time to do that. liz: okay. i appreciate that honesty here. can i bring you back to the core versus headline part of this volatility number and this inflation number, rather? volatility up 5.5% for the vix, but grows thelies rose the most since -- groceries rose the most since 1979. the airlines are getting hammered because airline fares jumped 37.8% year-over-year. just for the month up 1.6% -- 12.6%. so how is it that you don't see a recession in this type of atmosphere if people say i can't afford that the, i'm going to stop the buying plane tickets,

then the airlines are struggling and it's just one of the domino effects, is it not? >> yeah, it's a good point. and we should clarify what we mean by a recession, you know? if we meet a recession like 2008, like 2000 where you have in the massive growth shock and this massive deriskinging across risk asset ises, that's a different the thing. if we meet a growth slowdown, we're absolutely going to have it because, you're right, if you look at the real average wage growth in the united states it's now down 3.9% year-over-year. so, of course, consumers are not going to cut back on food or energy, but they are going to cut bakken on all their things, and that is going to produce a slowdown. but when you think about what does it take to cause a true financial crisis and a true recession, it's some sort of an imbalance that needs to be corrected. but when you think about the fundamentals today, the consumer fundamentals are in good shape. if you look at corporate fundamentals that we did just recently looking at high-yield

and leveraged loan markets, that's actually in very good shape. so i don't think that this is going to produce significant correction of equity that has been built up. so that's why i draw this distinction between a true recession versus a growth slowdown. yes, it is tough, it is painful, and i think the reason why consumer confidence is at this rock bottom level is because i think we know that the fed can ott not pix the food issue -- fix the food or energy issue. it's going to take more than that. liz: well, okay, can i get your prediction? right now the fed funds futures are going mutts, and i'm talking about july in particular. there's now a 45% chance that we will see a 75 way basis point hike in july, and we started to watch this climb. my team and i have have been watching is since this morning, there's now a 9.2% chance, albeit small, but for a full percentage point hike. what do you think the fed must do in june and july?

>> i think the fed is desperately trying to get back to neutral, to 2.5%, as soon as they possibly can, and i wouldn't -- liz: how is that neutral, anastasia? >> well, it's neutral as in theoretical definition, that's the rate that's thought to be -- the fed is neither restricting policy nor still thelating the economy. so that's -- stimulating. so that's what the classic definition of neutral is, you know, if you look at fed papers, that's where hay define it. so they need to get to that in their mind, but possibly above that to rein in this the inflation. i think they're trying to get there as fast as they can, whether it's 50 or 75 basis points, we'll have to see. liz hez yeah. we will watch and see. it'll be next wednesday that we get the announcement. anastasia, give me your with last quick mention on crypto because you're there at that conference, and is at lot of people trying to believe in this, and it is now within the last couple of minutes fallen

below 29,000 for bitcoin. >> so a quick thought on that. bitcoin of all cryptos are going to trade like a risky asset in this environment. it is not being -- as an inflation hedge. so this is unprofitable, it's the innovation, but it's going to trade as such. however, my key takeaway from this conference is there are the real applications being solved by blockchain, legacy systems hard being disrupted. so this is tough, but my best advise for investors is you want to buy when it feels terrible to do so, and right now is one of those times. liz: ann a stays ya, great to see you -- anastasia. thank you so much for joining us. it's a great background, at lot of energy, and we'll wait to see what the fed does, and and we'll have you back. >> thanks, liz. liz: closing bell, six minutes away. we do have the markets off session lows, not by much. dow, s&p and the nasdaq is -- are looking at hair second down week in a row -- their second

down. the nasdaq the down 3.3%. it's the dow transports that are having their worst week in two years as energy prices that are spiking are actually weighing on the sector. oil up 1.5% this week with just a few minutes to go, we've got perspectives from the equity9 and the fixed income viewpoints. capwell chief investment officer tim. tim, let me throw it to you first. did anything about how you are strategizing for your clients change after you saw this inflation number this morning? >> no, not a bit. we're focused on companies that have predictable earnings and are embedded in, you know, the current economy. liz: and what are those? i mean, what areas do you feel are a matching exactly what you see? >> well, williams, for example. natural gas pipeline company, been in business since the

1900s. we're going to need more energy. you know, part of this problem is supply, and so you have to increase supply before you can bend down the inflation curve. and and so williams is well positioned, 5% dividend yield, lot of free cash flow. they're very well positioned. i'm i've owned that company for over 20 years. liz: yeah. you know, i was looking at natural gas over the past, you know, just pretty much year to date, up 146%. so, okay, i get that. from the fixed income standpoint, we've got barclays and jeffreys among the two the, a couple now that are coming out saying next week we will see 75 basis point hikes. what's your prediction, and where do you catch a little bit of air for investing? >> yeah. i think if the markets discount 75 basis points, the fed will validate that. look, yesterday the markets were

skeptical that the fed could get to 3%, now it looks like we're trying to test out 3.25 the-3.5 on fed funds. but the real important question is does the fed have to get to something like 5% or higher, and i'm not seeing that in the market right now. we think that high-yield bonds for a long-term investor make quite a bit of sense from this start thing point of about 8% -- starting points of about 8 yield. that's up from about 4% at beginning of the year. liz: well, sure. i mean, yield, that's what people truly want. we're showing the 10-year right now. it's not waiting around for next week, it is jumping 11 basis points to 3.16%. the 2-year yield is the highest since november of 2018. it is a pretty dramatic picture at the moment and, folks, we do want to draw your attention to the bug and to the lower third banners here. we do have the s&p now down 108 points, the dow losing 809 points. tim the, talk to me about your

biggest fear here and what would you completely avoid to guide our investor viewers. if. >> i'd avoid the unpredictable. there's a number of companies, for example, you take docusign. they've completely blown up. youd had 19 analysts that had a $320 price target. it's down 25% today, $50. those are the types of things, they don't have predictable business models yet, so you just have to ignore them, not be tempted to get back in because this is going to take a couple years to sort out. and, again, the strong, predictable, embedded companies in the economy are the ones that are going to win. liz: yeah. the ceo was just on, dan springer, and he sounds confident. you know, they did see an increase in subscribers, but maybe this is a growing pains type of company. it's still in the first couple of years of its existence. bill, give me your final word

here on where you see interest rates going and, you know, we just had the conversation with anastasia, and she called neutral rates 2-2.5%. i fail to see how that can even be possible. she's smarter than me, trust me, when it comes to markets, but where do you see neutral rates in the real world? >> yeah, no, i would agree with you, liz. i think we're going higher than that. i think the most important question is, you know, does the fed have to get to 5% or something higher than that, and i am not seeing signs of that. the fact that today yield with curve is flattening quite a bit is very positive for risk assets over the long ter inbu tt r 'emhe, t thi, t t aherouson,me nnto,nt, tion ati abo it. oc h to ho go goer thethosthtost imporhingng rng w. li ell, iell, iant w tanot to tohal ur s st i all, all allars aarree

riday.riri sessiosen lows. l l atsh as was losss5353s this hou fpohe dow, dowow now right nownow we' d.. it a ssi s. investors do not want to go into in the weekend long after that ugly inflation number. that's going to do it for us, for "the claman countdown." "kudlow" is next. larry: today's inflation report came in much strong than expected. there were numerous signs not only is inflation not peaking, it may be accelerating. i feel it's my duty to report president biden's response. ex why made more money than god this year. then he barbed the o