could be growing at 2% this year and still be going -- growing below the increase in the potential output of the economy. i hope that's clear. that's really what's going on and why i would say it's below potential. >> if you could clarify what i asked about meeting by meeting. are we essentially now supposed to assume it's a meeting by meeting live meeting with a chance of a rate increase that will be decided on subjective criteria rather than objective at each meeting? >> i don't know that i want to accept anybody's characterization. i'll tell you how we're doing this. we're going meeting by meeting and asking ourselves whether we've achieved a policy that's restrictive to bring inflation down to 2% over time. that's the course we're on. we're looking at full range of economic data including financial conditions and all of those things that we look at, and then we're, you know, we've

come very far with this rate hiking cycle, very far. you saw this spread at the september meeting of, you know, it's a relatively small spread of people think one or two additional hikes so you're close to the -- liz: i'm liz claman and bond yields are falling and stock markets are rising and fields a barrage of reporter questions and one more rate hike by the end of the year? let's go back live to the november news conference to see what he says. >> monetary policy is restrictive and see its effectses on the inter-policy and that's how i think about it. >> in light of the runup of yields in the last few weeks, any consideration of the pace of your asset runoff program and judgment that the higher term premium was mandating the dual

goals and slowing or qt or thinking of the technical questions of the reserves? >> community is not -- committee is not considering changing the base of balance sheet runoff and not considering that, and i know there's many candidate explanations for why rate haves been going up and qt is on that list, it may be play ago relatively small effect. all though i would say at $3.3 trillion in reserves, it's not -- i think it's hard tore make a case that reserves are even close to scarce at this point. that's not something we're looking at right now. reporter: hi, victoria with politico. i wanted to ask about the bosil3 opened game capital proposal. you've gotten a lot of push back on people when the proposal and you yourself expressed registration vagueses and i'm curious, could you -- reserreservations and i'm c curf

you yourself could accept that without changes? >> that proposal is out for comment and we expect a lot of comments. we won't get them till the end of -- well into next year. we've extended the deadline, and we'll take them seriously and read them. i'll say what i do expect is that we will come to -- we're a consensus-driven organization. we'll come to a package that has broad support on the board. >> is broad support mean more support than the proposal had? >> it means broad support. reporter: i'm with bloomburg. so in addition to persistence, when you look at long-term treasury yields, what else are you watching to evaluate how those tighter financial conditions are hitting the economy and if it will lessen the need for further tightening and also do you think that those higher yields could affect banking stress?

>> so what do we look at? we look at a very wide range of financial conditions in effect as you'll know different organizations publish different financial conditions indexes, which can have seven or eight variables or could have 100 variables. there's a very rich environment, and we tend to look at a few of them. i'm not going to give you the names but there's a few of the common ones that people look at so they're looking at things like level of dollar level of equity prices, level of rates, credit spreads. sometimes they're pulling in credit availability and things like that. it isn't any one thing. we would never look at for example long term treasury rates in isolation nor would we ignore them. we'd look at them as part of broader picture and they play a role in many of the major standard financial condition indexes. your second question was -- >> on the banking stress.

>> banking stress. it's something we're watching. as you know, we did have issues with interest rate risk and also, you know, funding on uninsured deposits and march and thereafter and working a lot with financial institutions to make sure that they have good funding plans and good -- and they have a plan for how to deal with, you know, the kind of portfolio unrealized losses they have. we think the banking system is resilient and there were a handful of bank failures, but that's what we're autothere doing. out there doing. we don't have any reason to think that these rate hikes are materially changing that picture, which is one of a strong banking system and one where there's a strong focus by banks and by supervisors on liquidity and funding and those sorts of things.

reporter: scott from npr. last week you and your colleagues put forward a pomoxus ports of entry sal to lower the cap -- proposal to lower the cap on debit swipe fees. can you talk about the considerations what it would mean for merchants, banks and consumers, and what y'all are seeing in terms of the use of both debit and credit cards in the payment system. >> you know, so you're right, we put proposal out for comment is what we did. this is a job congress assigned us and that's all we can do is faithfully imin the meantime the statue and it's a 90-day comment period and we don't typically comment on these things once they're out for comment and we hope that stake holders and we know they'll use this opportunity to ex-prez their views. they haven't been shy about that. that's critical and that's what i can say about that now. reporter: thank you.

edward lawrence with fox business. so for the last three months, the year over year pce inflation 3% and core well over 3%. you've said in the past 2% remains the target and no rate increase today, how long would you be okay with a 3% or 3% plus overall inflation? >> you know, the progress is probably going to come in lumps and be bumpy, but we're making progress. i think the core pce came down by almost 60-basis points in the third quarter. so the best thing i can point you to would be the september sep where, you know, expectation was that inflation by the end of next year on a 12 month trailing basis would be well into the twos and year after that further into the twos. that's -- if you look historically, that's sort of consist with the way inflation comes in and takes some time and as you get, you know, as you get further and further from those highs, it may actually take

longer time. but the good news is we're making progress and monetary policy is restrictive and we feel like we're on a path to make more progress and it's essential that we do. >> you said in the past that doing too little on interest rates could take years to fix but the cost of doing too much could be easily fixed. how robin lou bust was the debate -- robust was the debate on this pause of doing too little side? >> that's always the question we're asking ourselves, and we know that if we fail to restore price stability, the risk is that expectations of higher inflation get entrenched in the economy, and we know that's really bad for people. inflation will be both higher and more volatile. that's a prescription for misery. and so we're really committed to not letting that happen. you know, for the first year or so of our tightening cycle, the risk was all on the side of not doing enough.

we're -- we've come far enough that the risks have gotten more two sided. you can't identify that with a lot of precision, but it does feel like the risks are more two sided now but we're committed to getting inflation back down to our target over time, and we will. reporter: hi, simon with the economist. quick follow up to the question about banking stresses. you talked about how the banking system is resilient. of course part of the resilience of the past year stems from the bank term funding program that you launched in march. given that bond price haves not recovered that unrealized losses are probably mounting, how likely is it that you might have to extend that program in march next year? >> good question. we haven't really been thinking about that yet. we, you know, it's november 1 and that's a decision we'll be making in the first quarter of next year. >> quick separate question about

inflation expectations. un michigan sentiment survey showed a big jump in one year inflation expect taces from 1.4-1.2 and you said that was a decisive factor in one of the rate hike decisions f. it stays elevated next time around, how big of an input will that be into your december thinking? >> yeah, we look at a range of things. the un thing got blown out of proportion a bit and it was a preliminary estimate that was an advisory and that was preliminary and didn't get picked up. we look at many, many things and look across the broad array of surveys and market based estimates and, you know, we do that really care flay at every meeting and between meetings. it's just clear that inflation expectations are in a good place, the public does believe that inflation will get back down to 2% over time. and it will.

they're right. there's no real crack in that armor. you can find one reading that is a little bit out of whack but honestly the bulk of them are just very clear that the public believes that inflation comes down. we believe that's critical in winning the battle. reporter: hi, chair powell. megan with barrons. thank you for taking our questions. i wanted to see if you can talk about the neutral rate. you mentioned you're debating if rates are sufficient restrictive and you've said that evidence is suggesting policy is not too tight right now. curious if you could e lab late on that at all -- elaborate on that at all and if that means the neutral rate in your view has risen? >> yeah, first thing to say is that it's a very important variable in the way we think about monetary policy, but you can't identify it with any precision in realtime. we know that.

so you have to just take that -- take your estimate of it with a grain of salt. what we know now is, you know, within a range of estimates of the neutral rate policy is restrictive, and it's therefore putting downward pressure on economic activity hiring inflation and we do talk about this. there's not any debate or attempt to sort of agree as a group on what -- whether our stars have moved and some think it has and others don't. ultimately it's unknowable and really again what we're focused on is looking at the data and giving ourself as little more time now to look carefully at the data by being careful in our moves. does it feel like mono-tar policy's restrictive enough to bring inflation down to 2% over time? that's the question we're asking

ourselves? i think years from now economists will be revising their estimates of our star as it existed on november 1, 2023. we can't really wait for that in making policy. we have to look -- we have to have the models and look at them and think about them ultimately we have to look at effects that policy is having accounting for the lags, which make it is difficult. reporter: i'm curious in you have any concerns of whether wage inflation could risk pushing umm overall inflation or re-acceleration. >> if you look at broad range of wages, wages come down significantly over the course of the last 18 months to a level where they're substantially closer to that level that would be consist with 2% inflation over time making standard

assumption about productivity over time and much closer than it was. that's true of the eci, which is the one that we got this week and true of average early earnings and compensation and all of them are saying that. it's great. you have to look at a group of them because any one of them can be idiosyncratic from any given reading. that's what you see. what you saw with the eci reading is if you look back and comes out four time as year and look back a couple of quarters and it was much higher and came down substantially in june and september reading was more or less at the same level as june reading. in a way it was validating that decline and close to our expectations internally too. i think we feel good about that and also i would say it isn't -- in my thinking it's not the says that wages have been the principle driver of inflation so far. all though i think it's fair to say that as we go forward and

monetary policy becomes more important relative to the supply side issues i talked about in unwinding of the pandemic effects and may be that the labor market becomes more important overtime too. reporter: chair powell, are you now as concerned about overshooting and raising interest rates too much about getting inflation down to 2% target? >> as i mentioned, i think for much of the last year and a half, the concern was not tooing enough and it was not getting rates high enough in time to avoid hagg inflation expectations, higher inflation expectations becoming entrevons and that was the concern. i think we've reached now more than 18 months into this you can see by the fact we have slowed

down and we're still showing confidence in what the appropriate stance is and and we think and i think that the risks are getting more balanced. i'll say that. risk of doing too much and risk of doing too little are getting closer to balance. policy is clearly restrictive at 5.25 to 5.5%, that range year if you take off a marijuana stream estimate of expected inflation and you'll see a real policy rate that is well above mainstream estimates of a neutral policy rate. that's arithmetic. doesn't really -- the proof is really in how the economy reacts but i would say that we're in a place where there's risks are getting close tore being in balance. >> to prove how the economy reacts, what are you looking a the to be sure you're not

overshooting? >> well, i think what we're looking at is if inflation is still broadly cooling? is it still validating the path we saw over the summer. where inflation was clearly cooling and coming down. we've seen periods like that before and there's have been followed through the data bouncing back. what are we seeing? is inflation still coming down and that's the first thing. second thing is in the labor market, what we've seen is a very positive rebalancing of supply and demand partly through more supply coming online. and with labor demand still clearly remaining very strong when you have the kind of job growth we've had over the last quarter. very strong behind and wage increases coming down and we've discuss that had coming out and coming down in a kind of gradual

way. that's what we want to see and that whole set of processes continue. reporter: brian of cnn. do you think there's any structural change in either consumption or in the job market that's pushing up consumption? obviously the third quarter gdp numbers were strong and economist expected it to fizzle out and has there been any structural change in consu consumption? >> i would much wouldn't say there's been a structural change in consume suspended ands but it's been strong and a couple of things we may have underestimated the balance sheet strength of households and small businesses and that may be part of it. there may be like everyone else we can estimate the number of savings that households have

from the pandemic when they couldn't spend on services really at all or on person services and, you know, there can be more of that and at a certain point, we're going to get back to pre-pandemic levels of savings. we may not be there yet. clearly people are still spending. the dynamic has been really strong job creation with now wages that are higher than inflation in the aggregate anyway. that raises real disposable income and raises spending many continues to drive more higher and that whole dynamic and also at the same time the pandemic effects are wearing off so that goods availability, automobile availability is better or was better and i think it still is and there's been from a business standpoint, there's more people to higher.

if there's more growth or spending, that kind of thing. it's been good and the thing is we've been achieving progress on inflation in the middle of this. so it's been a dynamic. how longer can that continue and, you know, i think this -- the existence of this second set of factors at this time which is the unwinding of the pandemic effects makes this cycle unique, i think. we're still learning that took longer for that process to begin than we thought. we're still learning about how it plays out with us. that's all we can do. >> reporter: thank you. just a quick question following up on an earlier one with regards to the israel hamas conflict. you know, the feds financial stability report said israel

hamas conflict and the conflict in ukraine pose important risks to global economic activity including the possibility of sustained disruption to trade, food and other commodities and the world bank warning of a surge in oil price ifs the war spreads to other countries in the region. i'm wondering how the fed is monitoring these developments in the middle east. you mentioned they are and just what the potential economic impact could be if the conflict does spread to other countries in the region. thank you. >> i wouldn't want to speculate too much but i would say that really the question there is does the war spread more wide and she does it start to do things like affect oil prices in particular and this is the middle east we're talking about. the price of isle really has not reacted very much so far to this. as the fed, as federal market commit turks our job is really to talk about and understand the economy and economic effects and it isn't clear at this point

that the conflict in the middle east is going to -- it's on track to have significant economic effects and doesn't mean it's not incredibly important and something for people to take really important notice of but it may or may not turn out to be something that matters for the federal open market committee as economic body. what the financial stability report does is call out risks and it's reports of saying war in ukraine has significant macroeconomic implications because of connections to co-mottties. >> thank you. >> thank you very much. liz: jerome powell concluding second to last press conference of the year leaving investors quite comfortable not only with the fact the fed left interest rates on ice for the second consecutive meeting but with his insistence keeping the decision

to hike rates a slow and deliberate one. markets given a few jump scares and they're zooming higher and dow up 235 points and s&p gaining right away, same with the nasdaq and russell. talk about the dow jones industrials. see the inter-day picture and it's up three quarters of a percent and nearly in the middle of the session began to dip and then what do we have? we've got s&p 500, the low of the day was a gain of 3 points and right now we are climbing higher by 45 points. that's good enough for a full percentage move here and nasdaq, biggest percent damage leader up 1.5% or 188 points and the tech-heavy index is having a solid day at the moment. it's really bond yields that are heading south in a quite pronounced way. look at 2-year treasury yield and tracks fed policy most closely, that stands at 4.954%

and low of today's session was 4.944. we're not far from it. the inter-day picture shows you that. 10-year yield dropping sharply pretty much at lows of the session. actually right now low of the session 4.76%. before 2:00 p.m., it was at 4-point 81%. the 10 year is not following the yield because of the fed but treasury department's quarterly bond sale announcement that came out earlier today and treasury selling $112 billion of debt at fopfunding auction next year and long term treasuries slightly less than market expected. that's kind of triggered a rally in bond prices, which of course move it inversely to the yields. to nose who are watching and we're talking about the jump scares, i earlier mentioned, five nights at freddys around 2:48 p.m. eastern and the dow nearly dipped into the red when powell was asked about what the plans might be for another rate

hike at the last meeting of the year. listen. >> we haven't used that tent-like structure, but it's fair to say that's the question, should we hike more? that is the question and you're right, in september we wrote down one additional rate hike but, you know, we'll write down another forecast as you know in december. limit joining me now is ---liz: joining me now is upenn business professor jeremy siegle. >> one of flexibility. i was impress when had he said, you know, we're near to thinking did we do too much than we did too little. i think that lack of hawkishness is what encouraged the market. heavyweights basically a mr. no surprise and got another

unanimous decision and no dissents and there's hawks on the committee. that's positive. ? in september, eight people thought there would be an increase in if you ask now, it would probably be less than eight. i don't think there's going be an increase in december. but the truth is as chairman powell said so many times, they just look at what the data is and they've made no pre-decision whatsoever, what the path of rates is going to be. it depends on what the path of the economy and inflation is going to be. liz: well, yeah, exactly. i'm looking at fed funds futures for december right now. there is now just a 15% odds that we would see a rate tightening whereas before that was actually a bit higher at 25.2% and right before the decision at 29%. now it's dropped pretty exponentially 15% for december fed funds futures.

perhaps you're right. and he was very measured and we're off session highs that john just a few seconds ago and a gain of 268 points and markets are really seeming to like this. what is the danger if you see any at all leaving rates on pause at 22 year highs. >> well, i think they're on pause because the fed doesn't know if they need another rate hike. chairman powell has been -- and the fed bank presidents as well adds the governors have been receive ago lot of phone calls from the housing industry, from the banking industry. hey, you know, this rise in rates we've seen over the last six or eight weeks is going to start pinching and you've got to be very careful.

i think -- the next is dieses 13 montana he's not going to hike 12 days before christmas and he's been get an earful from builders and new homeowners to be -- who are really shut out of the market. liz: let me quickly mention took into consideration as we're looking at long term rates, i want to ask you about a cut. when do you see a cut because first it was may when we expected to see that and then you started to see during his news conference that june, you see a bigger odds of a rate cut. does that square with what you think? >> yeah, i would say so. he's going be reactive and another reason for the drop in yields is ism report, institute

of supply management was definitely on the weakish side and we'll look at jobless claims and friday day before tomorrow and jobless numbers and looking at data and let's face it, liz, we're one year away about from presidential election and it is all about politics and the last thing you want is a recession and unemployment to go up. i think that would certainly torpedo his chances for renomination and comes soon after the next election. liz: yeah, he's been through the ringer, i'm not sure. he might want to stay, we have heard nothing on that front and, professor, thank you very.. >> he says he loves his job. liz: okay. i'll believe that. why not. he's really been through a microscope and under that microscope as we continue to watch this. thank you, professor. we should look at u.s. dollar

against a basket of currencies earlier, the canadian dollar was dropping to multi-month low here and right now, it is back up against the dollar so after the fed announcement and the decision that clearly another rate hike is not a sure thing, you started to see a lot of these currencies reverse against the dollar, which had been a lot stronger and now when you look at euro, a a buck 05 and slighter weaker and we've been higher than that. maybe time to get back into europe here. right to the floor show and find out what the investors are thinking. joining me now, u.s. bank asset management cio eric friedmann and trader kenmy polcari. jeremy siegle not expecting a hike in december but you heard what he said about the overall picture and we have a very strong gdb here in the unit and does that make the -- united states and does that make the

equity picture look better? >> liz, it really does. we think this remains the flays for investors to remain focused. europe is cheap and they're cheap for a reason. one thing we're focused on at u.s. bank is the fact we've seen the s&p 500 as well as nasdaq really hanging there. again small caps, mid cap that's a tougher story but with the confluence of data as well as really measured commentary with chair powell, that suggests there may be more upside and focused on the u.s. in other parts of the world and perspective right now. liz: kenny, i have to ask you what you thought of the one question, it was closer to the beginning and it jumped right out at us hire at the "claman countdown". he was asked about the context of why the fed is remaining vigilant and then he clarified a bit by making it a little more opaque.

listen. >> look at the economy first. inflation has been coming down, but it's still running well above the 2% target. the labor market has been rebalancing, but it's still very tight by many measures. gdp growth has been strong, all though many forecasters are forecasting and they have been forecasting that it will slow. as for the committee, we are committed to achieve ago stance of monetary policy that's sufficiently restrictive to bring inflation down to 2% over time, and we're not confident yet that we have achieved such a stance. we're not confident that we haven't, we're not confident that we have. liz: oh, which is it. kenny, i know you were listening and said what? >> he left the door wide open and if it slows he can point it it and if it doesn't, he can point that that. university of michigan came out last week and 1-year inflation expectation ticked higher at 4.2% now. that's-up from just under 4 the

last couple of months and then 5-10 year inflation outlook also ticked up a little bit. so this whole we're getting back to 2% thing is far away. we're not anywhere y near it and my sense is we're not going to get there as quickly as he said. the market's rallying today not because he didn't raise rates today and that was televised and anyone surprised by today's report, they need to see a therapist. but the indication that maybe he's not going to do it in december is maybe what's giving the market a boost. janet yellen came out about what they need to fund and not the actual auction today and next week is we're really going to see where the bodies lie. china in that cellar and japan is in that sellar and who's buying all that stuff and the market is a bit ahead of itself now. liz: let's keep in mind we're starting to see a few cracks and

you can't see them yet or maybe you can. for example, eric, with the consumer, we are seeing record delinquencies on auto payments. that gets people a little nervous because it shows the consumer stretch but unable to make payments on time. not to mention we're seeing outright defaults in some lending areas. you heard from sofi yesterday, sofi had great numbers and they said they had great increase in their lending, but they are tightening their lending standards. can you then flip that over through the lens of investment and say here's what we're staying away from? >> yeah, liz, it's a really important observation and it's a important one to flow down and lending delinquencies are picking and you happen ironically credit card delinquencies are only very modestly increasing and that for suspended ands a bigger sign

into what consumes are thinking. we see the cost of credit card debt go up and risen 55% and 5-0% and past 12 or 13 months and what we're really focused on is when we see consumers put more spending on credit and again see that in a timely fashion. one thing that's technology and currently technology run this is year and we're trimming winners here and that's the spot where you're still seeing through corporate spending and seeing cfos and really invest in ar ars >> it's really lagged this year and it's the disciplined companies and managing battle sheets being smart and how they're approaching drilling so

are spots we think are important. we'll have a key test, liz, in terms of what happens with the holiday season coming up. understanding that i'm showing what it's worth and wealthy consumers are doing and that's core consumer and that's obviously the driver of the broader economy and our thought is it's a little better for this upcoming quarter and making it more challenging seeing that lag impact of higher credit costs in the first part of next year. short term we're fairly optimistic and the republican tests that we have to pass and deep into the rest of the year and early of next. liz: isn't that the way life always is. fairly optimistic but wait. thank you both very and have i want to make a point about chevron. you wouldn't be buying at highs and discounted down about 19% to date. some of the names argue they're cheaper and who knows where they'll go. since the federal reserve started hiking rates on

march 15th of 2022, the nasdaq index is up three% and take a look at names in the magnificent 7 since that same. meta up 62%, nvidia up 83%, microsoft a gain of 20%. so what does a new rate cycle, if that's where we're h headed, even one where you're paused or start to cut penofor the index and big tech names and younger gutsy one and ask the chair and ceo of tech heavy exchange adena friedman. how does it affect the world of technology and many other names and banks and energy in the nasdaq as well? >> i've been predicting since the beginning of the year higher rates for longer and i think when we look at that, what i've been hearing from the ceos all year is starting to recognize that that is in fact a real

potential. that means they have to make conviction decisions and choose investments wisely and understand how to grow, how to grow profitably and grow into profitability and they're not investing into everything and investing in the things that matter for the clients and for shareholders and that's what weave been doing too. liz: looking at stock performances of 2023, obvious i nvidia is one of the unbelievable rock stars up about 179% year-to-date. meta up 150%. then look at companies like palo alto networks and very impressive move there. crowd strike both up more than 60% and advanced micro-devices and up 52% and cjen is a bio-tech and up 69% and where did you suggest the flows for investors looking to buy up opportunities? >> you've named a lot of different companies benefits from a significant trend and trend in technology, trend in

ai, and ability to make sure they're on the leading edge of delivering ai delivered solutions and using ai to make better drugs to make better chips, to be basically making it so they're being driven by the future and the opportunity that ai delivers. the big thing for us is we're positioned architecturally around cloud and also that we have our data organized to take advantage of ai and what it has to offer. i think that's where companies -- you're going to see a big difference over the next couple of years in terms of companies that are well positioned for that and compcompanies that are lagging n that area. liz: look at acquisition outlook and you guys announced back in june that you were acquiring adis ensoft and average and today is the day it goes through. >> that's right. we closed on adenza today.

liz: we're just the index out here, from from it; right? >> yeah, we have foundation as a market and we love coming and talking to you about the markets but at the same time we are very scaled technology company, software company to financial institutions to the corporates to investment managers and to other exchanges around the world. with adenza, we've scaled up and being able to provide brokers bs and anti-financial crime business where we provide banks with fraud and aml detection capabilities and now we get to have the opportunity to give them risk management tools, rates and reporting tools and key capitol market tools that allows them to manage resident and can make their business more successful. liz: to me on paper, looks like a win/win. why since the acquisition was announced in june, nasdaq stock, ndaq down about 68%. you're looking way down the road, which is, yeah. >> we're making a long term

conviction decision, and i would say that it's kind of in a way a risk on trade and risk off environment. we made the decision to make a significant acquisition in a business for the opportunities.. very strong operations and able to secure the debt back in june and our all in cost of capital for adenza acquisition is 4.5% and across all nasdaq is 3.9% and we feel good about financing the deal and we get to execute on it. we've been working hard to plan the integration, work with the team and today is the day that adenza is part of nasdaq. liz: i want to ask you about the ipo atmosphere and around 133 ipos in 2023 and still about 21% fewer than the year before. the space is inflating once again certainly but where do you see it for 2024? >> first of all, we're off a bit from last year. last year wasn't a very healthy

rear at all either. liz: at all. >> we're seeing a lot of companies waiting until the markets are more inviting and that means that they're really looking at first half of 20246789 we have a very healthy pipeline of companies wanting to go public and they're waiting for investors to be excited about them going public. you've been talking about and hearing from the fed today, it's a very difficult environment to predict the future in. if you're an investor, your job is to predict the future performance of a company. it's hard to do that if you don't understand what the overall economic environment is going to be like. as that become as bit more clear and we start seeing hopefully the fed kind of continuing to keep rates stable and continuino see the economy slowing down gradually but not quickly. i think that that will give investors more confidence and that's what i think a lot of companies are saying let me wait till the first half of 2024 and then i'll be ready to go. liz: okay. that's how we lended the last -- ended the last team we were on

air with. >> i agree with a lot of what they're saying. it's an interesting environment right now. liz: eric and kenny and adena. all in agreement. thank you for being here. >> great to be here. liz: nasdaq's adena friedman. 248 points of gains for dow jones industrials and high 278 and that was hit a few minutes ago and s&p up 46. again, the nasdaq is really powering higher and showing muscle of 204 point-blank layupses or 1.5%. did you notice powell was asked twice about wars in ukraine and gaza specifically and how they would be affecting the actual outlook. federal chair -- federal reserve chair jerome powell said "the federal reserve is keeping an eye on oil prices and it isn't clear at this point that the conflict in the middle east is going to have significant economic affects". now there's breaking news out of the united nations at this hour regarding the war in gaza we

wanted to get to you here. the un human rights office says israel's air strikes in the refugee camp yesterday are disproportionate attacks that could amount to war crimes. again, the united nations has never been friendly to israel. they've thrown all kinds of attacks at israel and at the same time none against syria when syria was setting off chemical weaponry against its own people. according to the idf, this attack led to the killing of the hamas leader who they say is the director of october 7 attacks. with so much to discuss right now about the effects of the israel gaza war and investing, joining us now is somebody that can talk to all of it. palantir cofoufounder and managg partner joe lonsdale. how do you look at what's happening overseas? first it was ukraine, russia,

and now israel and gaza. what are you seeing just with the entire climate of what is in your world? >> arrest liz. these are two very different co- >> hey, liz. these are two very different conflicts and a lot of us seeing images and assumed we'd see a movement towards peace with the allies and saudi arabia and the u.s. and looks like iran move toddies respect this and absolutely tern the terror tactics they used to do this. israel is doing what they have to do to eliminate the bad guys. in our world, you're seeing a lot of volatility around this. there's a lot of us who spoke out for israel's right to defend ourselves, and you saw a lot put on lists with our names listed don't work with this person if you're anti-israel. so you're seeing a lot of controversy in our world around it. i think frankly you're see ago lot of solidarity around there's a lot of people in our world who

are pro u.s. and pro israel's right to defend itself and people are standing and you happen speaking out. liz: israel is the startup nation and we've been there and we're both jewish americans. again, it's amazing how in just three weeks since the first horrific atrocities that were committed against civilians, infants, women that suddenly it's all -- especially on colcollege campuses turned into israel, how dare it defend itself similar to how america defended itself after pearl harbor. i don't know where the people are getting their information, but that said you are a stanford graduate. i would say that there was a lecturer i'm sure you heard about him that had separated jewish kids in the class, put them to the side with their belongings and called them -- it was the most bizarre thing, but you also wrote for, i believe

you were editor in chief of the stanford student newspaper when you were there. you see what is happening with the yale daily news. at yale, they wouldn't let students print the atrocities. >> i was editor of the stanford review more about liberty and conservative side if we're honest and they've been on the right side of this, but you see student newspapers in general and mainstream ones are conquered by the woke left and this has been a really interesting month and i've had a lot of friends on the left, a lot of friends in general who haven't been paying attention to the universities who reached out ask said, joe, i see why you guys are start ago new university to compete with these places. i had no idea they were this broke and become had liberal. it's one thing when students mess it up and crazy silly students make mistakes when they're young. we shouldn't forgive them right away but learn from your mistakes but what's scary is the administrators and professors trying to blame the kids. he said colonialists killed more

people than the holocaust and you should be ashamed because you're colonialists. there's a strange theory of the oppressor versus the oppressed and it's really screwed and you happen completely conquered and brainwashed our universities. it's a big problem. liz: yes, what's more stun asking you're not allowed to say or at least on college campuses these atrocities that occurred in israel but at the same time you can also say it's horrible what's happening to palestinian civilians who are being used as human shields by hamas. somehow it's either or, which is absolutely stupid. let me just ask you about what we're doing here as far as venture capital is concerned. you obviously were one of the cofounders of palantir. palantir gives unbelievably helpful data on the battlefield to the ukrainians. that's been very much apart of the reason the ukrainians have held off big bad russia. you're also developing other

companies that are in the military space that you and i have spoken about here on the show. where is the most interest now? defense spending that you see? >> yeah, when we're building palantir, we learned a lot from the israelis and good at what they do. one of the proudist is when israel started working with palantir and they help israel do a lot too. these days there's a lot of new possibilities in the defense space and a lot of ways to apply ai to make the navy work better and do a ton of specials there. there's ways to use ai with turning out of drones at grease distance with ap shocks and ai makes power go harder and you're seeing all sorts of really interesting new techniquing developed for the battlefield. it's scary because the bad guys are using in too. iran and china are very advanced and we're trying to make sure the u.s. stays more advanced with our enemies and keeps them scared. iran is testing all sorts of places in the region and the drones going into jordan and

tests defenses and they'd like to take out the king there and get the people to go on their side instead. there's all sorts of really scary things happening back and forthright now. we're trying to keep the good guys armed and ahead. liz: thank you for that. i do just want to quickly make a doing-like turn to the -- dog-like turn to the right or left, apple reports earnings tomorrow. joe, can anyone beat the iphone now? i mean, we've seen huawei in china come out with significant phone designs that the chinese are looking and the a lot of people are buying those and sales for iphone 15 in china have slowed, but it's such a sticky business that they've created and this ecosystem. how do you view that and how do you think apple will report on how they look? >> i got a new iphone, liz. we're all pretty stuck on it. i think the bigger question for them is can they get their production out of china? talking to people running aping, i think it would be something

like $2500, $3,000 to sell to us without using comply chains from china. where the world's going, they better hope to get out and there may be seriousd if they can't sell things they produce in china. that's a big question for apple what does that look like in coming years and diversify faster without china cracking down and that's what i'd be worried about. liz: joe, always a pleasure. thank you so much. >> thank you. liz: joe lonsdale, the markets are rallying and opposite of session hi highs and first tradg day of november and federal reserve left rates unchachangedd second month in a row and still at 22-year highs and gain out december investing with bob dahl next.

this is spring semester at over 13,000 us school districts, which have become top targets for ransomware attacks. but there's never been a reported ransomware attack on a chromebook. which is why thousands of schools like the fairfield-suisun unified school district switched to google tools for education. so they can focus on teaching and 22,000 students can focus on learning, knowing that their data is secure. ( ♪ )

sh . . to the farmer's dog, they often say that it feels like magic. but there's no magic involved. (dog bark) it's simply fresh meat and vegetables,

with all the nutrients dogs need— instead of dried pellets. just food made for the health of dogs. delivered in packs portioned for your dog. it's amazing what real food can do. the power goes out and we still have wifi to do our homework. and that's a good thing?

great in my book! who are you? no power? no problem. introducing storm-ready wifi. now you can stay reliably connected through power outages with unlimited cellular data and up to 4 hours of battery back-up to keep you online. only from xfinity. home of the xfinity 10g network. municipal bonds don't usually get the media coverage the stock market does. in fact, most people don't find them all that exciting. but, if you're looking for the potential for consistent income that's federally tax-free, now is an excellent time to consider municipal bonds from hennion & walsh. if you have at least 10,000 dollars to invest, call and talk with one of our bond specialists at 1-800-217-3217. we'll send you our exclusive bond guide, free. with details about how bonds can be an important part of your portfolio. hennion & walsh has specialized in fixed income and growth solutions for 30 years,

and offers high-quality municipal bonds from across the country. they provide the potential for regular income... are federally tax-free... and have historically low risk. call today to request your free bond guide. 1-800-217-3217. that's 1-800-217-3217. ♪. liz: look, so the media did its very best to lure fed chair powell during that press conference into revealing what the fed might be leaning toward doing at its next interest rate setting meeting december 13th. did he bite? >> i would say though that the idea that if you, the idea that you would be difficult to raise again after stopping for a meeting or two is just not right. the committee will always do what it thinks it is prepare at at appropriate at the time.

woe didn't talk at all about making a decision in december. it was really a decision for this meeting and other broader things. liz: don't ask about december. bob doll, ceo of crossmark global. bob, what did you glean from that, what do you think happens in december? >> probably nothing. there is still some case to be made, the case is that we're a long way from 2% inflation, liz. their job is not done. what they have to ascertain, everybody does, how about zero to 5.25 in 18 months, are the effects of that already behind us? i think what they have already done and the effects is more important than the what the fed does in december or february. they have done a lot. they are slowing the economy but that they have a lot more to go. liz: that said where do you feel are the consumer names can hold up perhaps in a slowing economy?

although right now we don't quite see that, we have the jolts number, job openings and labor turnover, higher than expected at 5.5 million jobs? the ism for october, the institute for supply management manufacturing index was definitely lower than expected which is disinflationary except the prices paid index was actually up more than expected, 45.1 and way more than september at 43.8. that is how of people pay for these prices so inflation is still here? >> i agree that is a problem. couple that with the university of michigan inflation expectations from yesterday where the one year number moved from 3.8 to 4.2. americans are not lying down saying we've conquered inflation. the fed there for has to hope pray, maybe do some more down the line. the consumer, we just got the third quarter gdp numbers off

the charts. that is unlikely to continue at that level and of course the consumer stocks in the 10% decline from late july to last week, the consumer stocks got hit pretty hard. liz: i'm looking at lowe's, adobe systems, those are your choices here. and then you talk about lowe's, the online, or big box retailers, you could spread that out to everybody from walmart to home depot. why lowe's? >> so i want to take advantage of the selloff. the stock has been since july 31st when the market peaked. they're the number two player as you know in do it yourself retail. they're having a flat year in terms of earnings with a lot of hope, reasonable prospects for better earnings next year. the stock is, you know what, high single-digit grower over the long haul and selling at 20, 25% pe discount to the market. so the consumer space i'm happy to play lowe's, liz. liz: good to have that shared with our viewers, bob.

always a pleasure to see you. thank you so much. >> thank you. liz: here we go, it is not so much we're seeing a solid rally in the dow, nasdaq, s&p and yes the russell has turned positive. it's more that the bond yields are falling. kenny polcari, you've been watching it all, that might be the story tomorrow? >> it is going to be the story tomorrow. look i love the fact the market is rallying. i'm still a little bit cautious. you want a pick in the consumer sector? kimberly clashing, they make diapers for both kids and adults. you should keep your focus in the consumer space scoot volatility index, by the way had the bigger swing here t had been lower by 3%. now it is down seven%, below 17. great to have you kenny. here we go. [closing bell rings] dow closing up 209 points. tomorrow, superstar lineup, blackrock's rick reader, attorney rober