going on for us is the way we see it is running at 5.1% on 12 month basis and similar on a three, six, and nine month basis. we know we need to use our tools to get inflation under control. the world's not going to be better off if we fail to do that it's a task we need to do and price stability in the united states is a good thing for the global economy over a long period of time. price stability is the thing that pays dividends for our economy for decades. getting it back is something that gives -- provides value to the people we serve for the long run. >> thank you. the fed acknowledged in the past that the tools you have don't affect things like energy and stem prices and conflicts

overseas and some of the biggest pain points for consumers and the path you've outlined, is there a risk the prices don't come down? >> we don't directly affect for the most part food and energy prices, but the command channel does affect them at the margin. the thing about the united states is we have strong, in many other jurisdictions, the principle problem really is energy. in the united states, we have a demand issue and imbalance between demand and supply in many parts of the economy and our tools are well suited to work on the problem and that's what we're doing. you're right, the times when

energy is part of the story why inflation is high. >> hi, chair powell, i'm be bloomburg. the fed is facing two more ethics related incidents with the revision of financial statements from president boston and president buller speaking at a closed event and some senators like elizabeth warren is seeing this as a sign of greater ethics problems that the fed -- can you talk about what this does to the public's trust in the bank and what the fed is doing to prevent this kind of behavior from becoming common. >> sure. so you're right. the public's trust is really the fed's in any central bank's most important asset and any time one of us, one of the policymakers violates or falls short of the rules, we do risk undermining that trust. we take that very seriously. we do.

at the beginning of the meeting yesterday, there was a committee discussion on the full committee on the importance of holding ourselves individually and collectively accountable for knowing and following the high standards set out in the existing rules with respect to both personal investment activities and special communications. we've taken a number of steps and i would say we do understand how important those issues are. i would say our new investorment program that we have is up now and running and actually it was through that that the problems with the disclosures were discover when had he filed his new disclosures and there's a central group here at the board of governors that looks into does closures and follows them and approves people's disclosures and all of their trades. any trade anyone has to make was covered has to be approved, preapproved and there's a lag. has to be preapproved 45 days before it happens.

it's a really good system and it works here and we said to each other yesterday morning and recruited to each other and this institution to hold ourselves to the highest standards and avoid these problems. >> i referred them to the inspector general and once that happens, i don't discuss with the inspector general with anybody and he has the ability to do investigations and we don't have that and that's what he's doing. >> earlier you touted the three month bell yield to the curve

with 100% explanatory power and you said if it's inverted, the fed will cut, which means the economy is weak. that curve is only two basis points away from inversion now so i'm wondering why you are so confident you've not overtightened that rates work with a lag. >> so we do mob torr the near term forward spread, you're right and that's been our preferred measure. we think just impeerically, it dom -- empirically it dominates and look at why things, why the rate curve is doing what it's doing and can be doing that because it affects -- expects cuts or it expects inflation to come down. in this case, if you're in a situation where the markets are pricing in significant declines in inflation, that'll affect the foreign curve. we monitor it, you're right. and that's what i would say.

>> if i could follow up. you also said several meetings ago that the risk of doing too little outweighed the risk of doing too many. if what you're trying to tell us today is that risk assess want changed a little bit? >> time has pa passed and we've raised interest rates by 375 basis points. if we overtighten and we don't want to. we want to get this exactly right. if we overtighten, we have the ability with our tools that are powerful and we showed at the beginning of the pandemic episode, we can support economic activity strongly if that happens and that's necessary. on the other hand if you make the mistake in the other direction and you let this drag on, it's a year or two down the road and you're realizing

inflation behaving the way it can, you didn't get it and you have to go back in. by then the risk really is that it has become entrenched in people's thinking and the record is that the employment costs, the cost to the people that we don't want to hurt, you know, they group. as we're further along, we're focused on what's the level to get to rates and i don't know what we'll do when we get there by the way. it doesn't, we'll have to see. there's been no decision or discussion on what aboutly what steps we'd take at that point. but the first thing is to find your way there. >> >> home sales down 25% in the

past year and none is showing up in the government's inflation measures. and as we go forward, private realtime data is clearly showing these hits to housing. are you putting greater weight on those to ascertain things like tightening going opportunistic. >> this is interesting. i start by saying the measure that's in the cpi and the pce, it captured rents for all tent ntenants and not just new leases and that reason, conceptually that's sort of the right target for monetary policy. same thing true for owner's equivalent rent and it's a re-waiting of tenant rents. the private measures are of course good at picking up the

it's a pattern of new leases and pattern is very cyclical and rents went up more than pci and cpe rents did and now they're coming down faster. as non-new leases roll over and expire, you still -- they're still in the pipeline and the new leases will tell you, what they're telling you is there will come a point at which rent inflation will start to come down and that point is well out from where we are now. we're well aware of that of course and we look at it. but i would say that in terms of

the right way to think about inflation is to look at the measure that we do look at but considering that we also know that at some point you'll see rents coming down. >> looks like stock and bond markets are reacting positives tyly and is that something you want to see or a problem or how might that affect your future policy to see this positive reaction? >> you know, we're not targeting any one or two particular things and our messaging should be and we want to make sure our messaging is clear and we have a ways to go before we get to the line and put that question as a important one going forward.

i've also said that we think that the level of rates that we estimated in september, the incoming data suggests that'll be higher and that's been the pattern. i would have little confidence that the forecast there's no pattern and we're where we were a year ago. it's not something that we're thinking about that's really not a conversation piece and we have a ways to go. last thing i'll say is that i would want people to understand our commit wment to getting in

done and not make a mistake of not doing enough or the mistake of withdrawing our strong policy and doing that too soon. i control those messages and that's my job. >> edward lawrence with fox business. how big of a head wind is all the fiscal spending that the federal reserve is trying to do to get back to the 2% target? >> in theory, it was a head wind this year, but i do think the broader context is that you have significant spending and those two things sort of counter balance each other and appears that consumer spend asking positive and people are getting

banks that deal with retail customers and they'll tell you the consumer is still buying and they're looking for fiscal head winds and showing up in the way we thought in restraining spending and must have had to do with the spending. >> the rescue plan, chips act, bipartisan infrastructure bill. how does that play into your thinking about the future? >> it's -- demand is going to have some support for the saving ands also from the strong demand in the labor market and we see pretty significant demand in a tightening labor market and overall i would say we're loosening and what those things tell us is that our job will require some resolve and some patience over time. we're going to have to stick with this.

that's just -- we think all that is a given but we know our objective and our goals and that's how we think about it. >> hi, chair powell. nancy genzer from marketplace. do you still think it's possible down the road? >> it's harder to see the path that's narrowed and it's hard to say. hard to say. you know, again, i would say that sort of a ray of data in the labor market is highly unusual and to many economists, there is a path to -- as you

ordinarily there's a relationship to gp going down and and today is different when you have this tremendous vacancy and part of the beverage curve and all i would say it that the john turns out to be less than indicated by those traditional measures because it's strong. again, that's something we discovered if there's a recession or not and if so, how bad that recession would be. and, you know, our job was to restore the market to have a strong labor market over time.

that's what we'll do. >> quickly, why do you feel this way? >> because we haven't seen inflation coming down. the implication of inflation not coming down and what we would expect by now is the supply side problems had resolved themselves and we would have expected goods inflation to come down by now. long since by now. it really has and actually it has come down but not to the extent we had hoped but at the same time now you see services inflation, core services inflation moving up and i just think that the inflation picture has become more and more challenging over the course of this year without question. that means that we have to have policy restrict and i have that narrows a path to the soft landing i would say. thanks very much. liz: fed chair jay powell wraps an edge of your seat news conference, the one word that comes to mind: contradictory.

powell sending the markets on a wild loop de-loop throwing crumbs to hawks and doves and thrilling the doves on comments on when the slow down in the pace of rate hikes might come and then triggering market whiplash by issuing a pretty dramatic warning and you'll hear them both. the federal market committee voting to raise rates by 75-basis points and that was expected and it's the fourth meeting in a row where we saw a 75-basis point tightening and the target range stands at 3.75% to 4% and that's the highest since 2008. stocks immediately catapulted higher at 2:00 p.m. eastern on the fed's rate increase and the dow surging 418 points and we should look at intradays here and big move where the green is topping out around 2:00 p.m. and s&p high of the session, 38 points and nasdaq surged to 102 points at its high and this certainly helped as powell was

asked about when markets could see a top or a positive move about a slow down in the rate pace. pace. >> a time is coming and may come as soon as the next meeting or the one after that. no decision has been made and it is likely we'll have discussion about this at the next meeting, a discussion. to be clear when to moderate the pace of increases is much less important than the question of how high to raise them. liz: markets prediction of the odds of how big or small the next might be in december, now shows 55% chance of a 50-basis point rate hike. yesterday it was lower than the 75-basis point chance. this is the market betting on what we'll see next time around. the most likely scenario right now, 50-basis point hike and the on going increases in target range will be appropriate in

order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time. i remind you all. inflation right now, 8.2% and this is where stocks took the biggest hit. listen to what powell said. >> historical record cautioned li'l ctib oninst prematurely ghr - afe heteyoe dr naeaolcrna ti fedpt26eaieos1%w igna biaghea

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down a third of a percent. what december may bring and investment strategist and seep your writer john hilzenr ath you're the guy that's good at reading the tea leaves and what's the number one thing you -- number one thing you pulled out of the cup. >> the phrase that the markets were obsessed with was fed pivot and what the fed has been worried about is if they slow the pace of rate increases and there'll be a party on wall street and they don't want to see that. they want the market to understand that they're not done with their work works and they'e saying we'll slow the pace of rate increases but on the other end, we're not done. powell didn't want to see stock prices take off today. he wanted the market to get

that, we've done a lot of work. we're going to slow it down. don't think this is finished in fact bad news and we might end up racing rates more than you expected back in september when we're done with this, we're not going to do it as fast as we've been doing it. liz: dow down 152 points and 135 and it right now brian, why do you think that. the markets and investors here.r y y y b b b b b b i f f f f f t heheheheheher r r ioioioioioiois hendndndndndndnd l l l l l l lop clclclclclolololol m m mveveveve hrhrhrhrhrhrhrf owowowowowowow- ininininn n n w w w w w w wflfe

wallllllllllg g g g hehehe l l l ananananananotototr r r ri r r r rererere e e e e e e inin inininininacacacac t t tlalalals ththththd d d e e e e e e g g g inininin3.3.3. rororoe.e.e.e.e.e.e.ld i i i i o rarararararabybyby0%0%0%0%0%0%0. kraft heinz, fedex, unilever, brian, what did the markets because we're about at session lows at the moment. is it something you felt was a

certain message thatgogogogogoge e e e eyeyeyeyeyeydededetetetete totototototod e e e e e e e e anananan i i in n n n n bebebebe underestimating how far they'll have to hike and has pretty ambiguous users and they look strong and they're strong and powell is in trouble because he's trying to knock down the jake economy here where consumers have wages not keeping up with inflation. all the saving ands you'll report it as a question at the end is a good one, are you seeing affects of the fiscal stimulus plus last year to this year and it's landed on the

households and they're drawing down the excess savings. the labor market is strong and there's a virtuous cycle between consumers and hiring managers and till the fed breaks that, they'll continue to chug ahead. liz: wall street journal nick timeroux asked an interesting question. cpi at 8.2%. that's a 40-year high. he then asked, chairman powell, do you believe that you'll need to raise rates higher than cpi and his answer was interesting. can we play that sound bite, guys, because -- bytes, guys because i thought that was crucial and powell made an excuse as to why that doesn't quite work and he used different metrics and said we want to look at borrowing rates for the other half. not just fed funds rate. fed fund rates for a spall portion of the world and bank's

lending rates overnight. >> nick was trying to get powell to say where the rate was goon end up when they were done with this. there's something called the real rate and what is the interest rate when you adjust for inflation and nick was saying do you think you'll have to get your rate over the interest rate adjusted for inflation? powell kind of didn't bite in part because he said well, what's the inflation rate? cpi, cpe, core cpe. it's a hard thing to pin down. basically what his answer was and that's the right answer, they don't know. they don't know yet and they'll keep going till they see the inflation numbers themselves retreating. they'll have to feel their way into this and what they've been feel asking what all american haves been feeling at the grocery store is this ain't over. liz: brian, the fed claims it doesn't look at the equity markets and if you believe that, we've got a bridge to sell you. they do look at the equity markets and i did find it really bizarre when one of the

reporters said, well, mr. powell, the markets are taking your message very well. in the meantime, i'm looking and everything is down. the dow is down 324 points and that's a new session low and we looked at that, you know, how much do the markets, do you think, how much sway do the market haves and their movements have with the fed when they're ciy chtehisasd in that roo thr d thitetd e strkly m bhaaney'tonthtreyern ifffhels inngeas ncnd ght reest a stronger

dollar and they've lined up all year. liz: i'm looking at home builders in the red. airlines, health insures, drillers, bio-tech, big tech, department starts all in the red. one last question. we know that both the trump administration and bind administration spend a lot of money and floated a ton of liquidity in here while rates nf a bo low and trigger add lo adrajo ie iccumohaa trlame wexe amtheaec. what planet are you on. >> yeah, when she was the fed chair and inflation was steady

and had a good regard of that and then biden came in and did more and the question was do you need to do more in this kind of environment? frankerly i think they fought the last war and after the 2009 financial crisis, they thought we don't get inflation in this new world and low and behold we got it. dihihihihihiwawawawas s s totot totototoetetetpipipipipipipiutcp thththerererererererasasasasasas

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gegegegelylylysssssssssse e e ec moving lower and be better defensively positioned in the market. liz: technology, dutch, i know what you're going to say but it's like i need to throw the gigantic filet mignon to the carnivore. where do you stand on technology? for a minute the chip basket of stocks and semiconductors popped up about 2% and lost it all pretty much. we have seen amazon and meta hit brand new 52-week lows and avryryryryryryry i i i i itititi r r rhohohohohohohobi i i i i s

acacac t t t t t t tmemememememt they're dead money for awhile. liz: dead money. well, than what isn't? what's alive and kicking for you? lelele p p p p palalalaln n n s ananananthththererererererere lililili s s sgogogogogog g g ge

ndndndndnde e e e s s s wewewewenononod d d d d d hthth. ththths s s s s s ananan's's's'h rarararacococodododododododo0, o 95959595 t t tigigigigigigd d d gogogogoy y y ve got a really good shot at a nice run on a coverage rate. liz: brian, markets react to changes and comments from the central bank like pretty much everything else, don't they? where do you feel once this, once this moment in time passes through because he made it very clear, we are not done raising interest rates, but when we finally do see a pause, do you expect a hyper-dramatic snap back some kind of spring loaded moment where the stock market

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a a a a argrgrgrgotototo o o o wiwiwiwiwiwiwiray y y y y y y s not, we think of the cards any time soon. liz: we've got brent and crude moving slightly higher but i really do not know what powell was talking -- can you really say that energy price haves come down that much if oil is still at -- well just below $90 a barrel in the after market session here at $89.15. brent is the international benchmark at $95.47. so i get, i mean i understand that he's trying to say that some things have come down. in truth, dutch, crude was $28 a barrel and we'vee ilh. >> my onthmyiseratu ioot tt

2%siy d sand a k s sas yiy'otan--s llusst unda. heand dod oeouto. k a mt hcrn. htowyth t do w real game of tug and war going on. liz: i'm just checking the 10 year because it had been about 3.99% before the announcement.

we do have it now at 4.09%. okay. so before the presser, it was at 3.99. this morning it was at 4.02 or something. this is very interesting behavior. great to have you both. thank you very much. check on some stocks making moves at this moment that maybe aren't necessarily related to the federal reserve. especeste lauder not looking too lucky and slashing outcome for the rest of the year and makeup manufacturer behind names like este lader, clinique and mac has supply chain issues for the down beat forecast. oppenheimer cutting target frre.

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and chegg ticking higher after the education -- well, up 20% after the tech company issued a positive report card and online tutoring firm reported 4-point # million subscribers and up -- 4.9 million subscribers and comes one day after the federal trade commission filed a complaint against chegg accusing them of careless security practices that potentially compromised all data since 2017. chegg is brushing it off and having a great session up $4.40. the feds rate hikes making it even harder to take real hikes. yeah, the travel industry getting hit by high rates and a strong dollar one two punch there and none more so than airbnb tumbling despite reporting its best quarter in company history.

ceo and cofounder brian cheske joining us live next to tell us what jerome powell and company are doing to his short term stays and experiences and more. what does he see down the road beyond the current quarter? closing bell ringing in 20 minutes. we've got the dow jones industrials down 357 and s&p losing 77 and nasdaq down 293 and russell down 52. that's the biggest percentage laggard. we're coming right back.

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tell your doctor if your crohn's disease symptoms... develop or worsen. serious allergic reactions may occur. watch me. liz: let's punch up airbnb shares and investors checking out down 1.7% just off -- 12.7% just off session lows and opened at $102 and now at $95. this despite having its biggest and most profitable quarter and the vacation rental platform topped both earnings per share and revenue expectations in the third quarter with 29% year over year revenue growth but the street, unhappy with airbnb's holiday season forecast. a strong u.s. dollar may be the grinch to steal its fourth quarter revenue growth and airbnb projecting 1.8 to 1.88 billion in revenue growth

nor the subpoena. they outperformed rating on the stock and said how can leisure travel hold up in the macro-environment? we assume the demand will weaken sooner than later. let's ask the airbnb ceo who's is live with us. brian, we'll get to the quarter and current quarter and what do you make of what mark said? how do you hold up? >> there's no question the economy is slowing down and no question when the economy slows down, consumers pull back spending but that's not what we saw in q3. you know, the reason we had our best quarter ever, you know, $1.2 billion in net income and a billion and a half and what people are feeling they still want to travel. you know, people are -- a lot of people are working from home. their office is zoom, the mall is amazon, the theater is netflix and people are saying, i still want to get out of the house. i still want to see my friends.

i still want to see my family. i think that partly explains why we had a record quarter and because people working from home, many people want to work from other homes, which is long term stay business is doing really well. what we're see askiing is actually a -- seeing is actually a still a lot of strength. liz: i'd imagine and one metric that popped scout this past quarter you saw 1.7 million nights and experiences booked. i mean, when you think of where you've come from, it's pretty incredible. six different analysts and we can put out the whole list. they all cut their price targets and goldman issued a sell rating on your stock. what would you say to them and what do they have wrong and speak to the current quarter perhaps. >> what i'd speak to the current quarter is look at the progress we've made. two years ago when we went public. that year we lost $250 million and in the last 12 months, we've now done $3.3 billion in net

flow. we said when we went public that one day we'd have 30% ibida margins and people expecting many years from now. we've blown past all that and we've stayed disciplined and when other comp companies are dg layoffs, we haven't had to do layoff -z because we got disciplined a couple years ago and demand is strong and in a down economy, more people will turn to hosting by putting homes up on airbnb. our model is incredibly resilient and adaptable. when a pandemic occurred, we were the first travel company to recover because of how adaptable our model is. i'm not surprise that had in the uncertain times there's going to be a lot of uncertainty about companies so i focus on what we can deliver and we delivered a record quarter and we'll keep delivering. liz: i want to ask about cancellations in the current quarter. in the third quarter they ticked higher. are they as high as the third quarter right now? can you give us granlairty on that? >> it's a little hard to say and nothing out of the ordinary and

nothing to flag as far as any concerns whatsoever at this moment. liz: okay. i'm looking at your castles. i mean, there are castles that are $19,000 and there are castles that are $49. we can show some of these. >> isn't it crazy? liz: then there's the tree houses. cha is the biggest revenue drivers for you guys right now? >> well, the largest revenue drivers are things that are unique and things that are essentially higher average dealing rate and unique listings are really pom larra because they have high pock pansy and cast -- high occupancy and castles and tree houses and novel one of a kind and unique, people graaf state towards them. additionally large homes are profitable because if you want to travel with your family or a bunch of coworkers and stay in a five bedroom, the average deal is going to be higher than a one or two bedroom and these two segments, the unique and i guess

call it more vacation rental segment, these are very big drivers for us right now. again, long term stays is really great. urban travel is coming back, cross border is coming back, our whole bread and butter is coming back. liz: brian, as we go for people who look at 401ks, stock market is dropping right now and off session lows and dow down 402 points and federal reserve says we're not going to stop raising rates and the biggest danger would be to stop too early and we don't crimp inflation and cool down the economy. you know, where do you stand on that? i mean, i would imagine that people who are trying to buy homes to use as investment, they're paying higher mortgages and we now have 7% plus 30-year fixed mortgage at the moment. how is that affecting your business? >> well, i mean, again, this is -- we started -- when we started airbnb, we actually launched in august of 2008.

that was when we launched, and our first like kind of crucible moment was between august of 2008 into the first half of 2009. the reason airbnb worked in the first place was because it was a recession, travelers were looking to save money and were willing to change their behavior and try something new. people who would have never thought to have strangers in their home said suddenly maybe i'm willing to do it to make extra money to get by in the hard times and that's my one reference point. if this is anything like that, then i think airbnb, the most affordable way to travel for most people compared to hotels with great value and a great way to make supplemental income, i think we'll do very well and we are adaptable to any kind of economy. that's what i would say. liz: brian chesky, thank you very much. it's good to see you and we're looking at dow jones industrials and down 426 points. fed raising interest rates 375 basis points this year alone. of course in his press

conference right before this show, federal reserve chair jerome powell was asked if he's waiting to see the numbers move before a pause. >> we will be thinking about them, but we won't be, you know, i think we'll be considering them because it's appropriate to do so. let me say this, it's -- it is very premature to be thinking about pausing so people when they hear lags, they think about a pause. very premature in my view to think about or be talking about pausing our rate hike. we have a ways to go. liz: and maybe that's really the crux of why the market is down 455 point-blank layupses, charlie -- 455 points, charlie. what is wall street saying? >> not maybe. there was a huge disconnect and we talk add lot on the show and i forshadowed it on cavuto's show earlier and what many money managers are thinking and fed watchers. these are economists that get paid by wall street firms to

figure out what the fed is doing and a lot of them used to work at the fed. i have a couple that are my sources and they told me this, and i reported this on cavuto's show ask s that the market is getting ahead of the fed, powell cannot provide pivot language because inflation still, even in a best case scenario, still at 7%. liz: absolutely. 8.2. >> that's what happened and it caught the market off guard and we're definite at session lows around 490. liz: s&p down 94. >> it was interesting because literally in the last week, i report that had blackrock was telling its investors that, hey, we think three more rate hikes, pivot language, and the closest you got to that pivot language was like, maybe, possibly, if. there wasn't any pivot language really in there. it's one of these disconnects. i mean, listen, why is the market doing this, liz? it's like a heroin addict at this point coming off --

liz: probably delusional thinks he'd have talked about that -- >> all we got was good news from the fed in a sense we're going to keep printing money and giving you stimulus checks from the federal government, and everything is going to be hunky dory, amc going to 1,000 and trading as high as 70 last year. meme stocks we know through the roof, bed bath and beyond, and the fed looks at all this stuff and says, well, there's something wrong here when a company that doesn't have earnings is going through the roof. they've created something bad. it's not just that liz: and the administrations, both trump and biden floated a ton of liquidity. >> yes, that's true, but -- liz: some needed, a lot not. especially in the later part. >> listen, when coming out of the pandemic, there were scenes that were working somewhat. we knew we weren't going to go lockdown again. the biden administration flooded the gates with stimulus and it was, you know, probably one of

the worst fiscal policy errors in recent history. larry summer wills tell you that as well, who's a democrat top economist. you had both of them together, and now the fed's got to put the genie back in the bottle and it's never easy. i'm telling you, this is a market that is so addicted to this stuff. you know, here's the thing, we should have a economy that is not the market. i mean, the markets are great. you know, we want to trade stocks, we want to invest in a long term, but that shouldn't be the economy. the economy for the average person is hurting and here's why, inflation. you can work two jobs and still can't afford eggs. liz: would you agree, you can't have it both ways, can't have low borrowing costs and low prices. dutch just went off on the fed. i'm not sure i agree with that. >> by the way, you can have that. but not in this environment after massive money printing and after creating stock market bubbles that are insane. not after creating a housing bubble that you can't afford a house right now.

not after creating inflation where an average person -- my liz: organic,. >> no. screamly? >> it is six bucks. liz: i had two eggs today, what is that four bucks together? >> imagine if you had to buy that at a diner? it would have been 20 bucks. liz: i don't know what they're talking about. prices are still high. that is true. of charlie, thank you very much. we need to look at markets. the dow was down 500 points. at session lows, the dow has swung 920 points from peak to tough. all three major industryies down ward trend. closing bell, four minutes away. look at green. that would be nice. boeing is actually soaring at the top of the blue-chips it told investors it plans to ramp up production. demand is still there globally. they forecast a jump in aircraft

deliveries as well. you have boeing up 2.8%, to $147 and change. bring in the chief investment strategist at straight street corp michael ir-eni, manages 3.3 trillion in assets. with a well time alone, michael. not just you. you are bullish on what right now even after powell's speech? >> i'm bullish on energy, utilities and financials. so what is interesting about that, those don't naturally go together. it underscores the complex environment that you and charlie were talking about. energy will continue to benefit from great earnings. utilities from a defensive play. if in fact the fed can engineer the soft landing financials should benefit. liz: the spdr financial select sector, etf,xlf, a passket of stocks and iy-t h it, 12% down

in year, why? aren't higher rates supposed to be positive for financial to then get to charge more for loans? >> two things quite positive for financials the fact that they are cheaper than the market. they have solid profit margins. if you look at the 11 economic sectors financials are among the best. the thing holding them back, liz, the yield curve is inverted. not to get too goofy. all that means the loan growth is not growing, especially if the economy is going to enter recession. these fears i think are a bit overblown and have investors concerned. their costs are rising just like all other businesses. inflation has been a problem for them. that is eating into the very hefty profit margins as well. liz: michael, we said at the top of this show chair powell threw crumbs to both the doves and the hawks when it comes to the federal reserve and one of the crumbs they threw to the hawks, he said i will quote here, because the markets definitely moved higher on this, we will

take into account cumulative tightening, so that's almost 400 points since the start of the year, policy lags, and economic and financial developments in determining the pace of rate hikes. but then he came out and said, yeah, but don't even expect we will even slow down because right now we still have inflation. how do you as a guy that runs a lot of money interpret that? >> i can just tell you this, chairman powell is resolved to defeat inflation and markets better come around to this pretty fast. he told us today you need a real interest. we're still not even close given where inflation levels are. the fed has a lot of work to do. the fed will continue to raise rates. chairman powell is telling you that. markets, investors keep getting this head fake where they're hopeful the fed will begin to slow down. it is not going to happen anytime soon. chairman powell reiterated that again today and you can see what's happened with markets as a result of that. that rally we saw in october was largely built on optimism that

the fed would slow down. it wasn't built on the economy, wasn't built on earnings. here he told you today i'm not slowing down. i need to defeat inflation. liz: you can forget about that. is it a smart move in the last 20 seconds to go heavy on dividend-paying stocks? maybe that is why you like utilities? >> i do like dividend-payers and dividend growers. in an environment with rising rates i want my cash flow back sooner and through dividends i get it back quicker. that is why i like payers and growers. liz: michael, thank you so much, my friend. good to have you. folks we're not at session lows but boy, we're not far from them. the dow looks to close down 476 points. no pause on the horizon. make that 500 points at the moment. [closing bell rings] stocks tumbling as the fed raises rates at the fourth straight meeting. really doesn't say much at all about pausing in december. that will do it for us. "kudlow" is next. ♪ larry: hello, folks, welcome to

"kudlow," i'