the threat of tariffs the they drive the bank of canada today, what sorts of information with the fed need to see on tariffs before such a preemptive move, what information would you need to see on tariffs? would you need a strategy, actual implementation, inflation expectations before you are willing to admit the path of military policy on the basis of it? >> things are different. we've come through high inflation period and you can argue that both ways, companies figure out they like to raise prices but we hear a lot from companies these days that consumers had it with price increases. coming through a situation we are not back to 2% is different. in addition, the footprint of

trade changed a lot as trade is not as concentrated in china as it was moving to mexico and other places so there are differences. the range of possibilities is very wide. we just don't know. i don't want to start speculating, as tempting as it is because we really don't know and we didn't know in 2018. we didn't really know. the range of possibilities is very wide. we don't know what will be tariffs or how long or how much, what countries, don't know about retaliation or how it will transmit through the economy took consumers. there's lots ovplace where is that -- lots of place where is that price increase from the tariff can show up between manufacturer and the

there are lots of places so many variables, we have to wait and see. best we can do is study up on this and look at historical experience and think about the factors that might matter. and see how it goes. liz: stocks, losses chopped in half as the powell pause goes into effect in the first policy meeting of the new year. jerome powell took questions on the economy, modeling for changes under donald trump. let's go back to the news conference live. >> the selloff of the stock market live signaled anything to you about the state of financial condition s? >> so, on -- let's talk alaska runoffs and the most recent data suggests that reserved are still abundant and reserves remain roughly as high as they were

when runoff began and the federal funds rate is very steady within the target range. we track a bunch of metrics and they do tend to point to reserves being abundant. we do intend to reduce the size of balance sheet to a level that's consist with implementing monetary policy efficientically effectively in the ample reserve regime. closely mono-tarring a range of indicators to assess conditions and that should provide signals and reserves are approaching a level that could be judged as "somewhat above ample". i having to say to you about particular dates. that's the process and what we see is that rating appear abundant and we take monetary policy to include the details of the approach for the size of the balance sheet in light of financial and economic developments. on ai, it's a big event in the stock market and in particular parts of the stock market.

i mean, what really matters for us is macro-developments and that means substantial changes in financial conditions that are persistent for a period of time. i wouldn't put that label on these events all though of course we're all watching it with interest. >> simon with the economist. thank you. you mentioned your marks that activity in the housing sector seems to have stabilized but at the same time, since your rate cut in september, long term mortgage rate haves gone up by a full percentage point, back above 7%. wondering kind of looking forward, do you think -- are you confident that activity will remain stable given howell visited -- how elevated mortgage rates are and how it affects the way you look at the economy. >> we reduced policy rates 100 basis points and longer rate haves gone up not because of expectations, not principally because of expectations about

our policy or inflation, it's a term premium story. and it's long rates that matter for housing. so i think the higher rates are going to probably be holding back housing activities to some extent, if they're persistent. have to see how long it persists. you know, we are controlling overnight rate and generally propagates through the whole family of asset prices including interest rates, but in this particular case, it's all happened at a time when for reasons unrelated to our policy, longer rate haves moved up. >> thank you, chair powell. jennifer with yahoo finance. given that households appear unhappy with the elevated level of price,s, do you believe the committee should wait until inflation has fallen back to target to cut rates again?

>> i wouldn't say that. we have never said we need to be all the way at target to reduce rates. we're looking at the economy and asking whether our policy stance is the right to maintain maximum price stability. we would want to see further progress. but we think our -- as i mentioned, we think our policy stance is restrictive, meaningful restrictive, not highly restrictive but meaningful restrictive. i would think we need to see further progress and wouldn't say all the way back down to 2% on susp sustainable basis and we would love to see that, and we will. >> separate question for you, on haharper lanes tiffs, and curious -- tariffs, curious if the threat of tariffs could stick or not and maintain business in the united states and cause them to pullback ultimately weighing on growth. does the threat of tariffs cause you to ponder your growth forecast? >> i want to avoid commenting

even indirectly the thought of tariffs and it's not our job to comment on the moves people make. i wouldn't want to criticize anything that's happening or comment on it one way or another or praise it. it's just not our job. i think that we found in 2018, there was a lot of work done on trade policy and certainty. trade policy uncertainty, if large and persistent, can start to matter for businesses making investment decisions and things like that . that's not something i'm observing today. it's very early days for this, but that did -- i think that did matter in 2018/19 and it's one of many things that we'll be watching. >> thank you, chair powell. matt egan from cnn. following up on courtney's question about the stock market from earlier, how concern redirect examination you, if at all, about potential asset

bubble brewing in financial marks and how do relatively high market valuations factor into considerations of potentially lowering interest rates further? is that in the back of your mind? >> we look at from a financial stability perspective at asset prices generally, along with things like leverage in the household sector, leverage in the banking system, funding risk for banks and things like that . it's one of the four things, asset prices are and, yeah, i would say they're elevated by many metrics right now. a good part of that is of course this thing around tech and ai. but we look at that. you know, we also look at how resilient the households and businesses and financial sector are to those things. we look at that from a financial stability perspective, and we think that there's a lot of resilience out there. bank haves high capital, and households are actually overall -- not all households, but in the ago re-get they're in good -- aggregate, they're in

good shape these days and that's how we think about it. we look at overall financial conditions and can't just take -- can't just take equity prices. you've got to look at rates too, and that represent as tighten in conditions with higher rates. overall financial conditions are probably still somewhat accommodative, but it's a mixed bag. >> hi, chair powell. i'm with cbs news. one question for you. this month's statement noticed that unemployment stabilized at low rate and labor market is sol and i had you walked through some of what's driving this. what risks might challenge for assessment? >> well, the things we watch, we discussed earlier. one is there's a low hiring rate. if there were to be a spike in layoffs, if companies were to start reducing head count, you would see unemployment go up pretty quickly and the hiring rate is quite low. that's one thing we look at.

i think it's also -- it's worth pointing out that for lower income households, they're under significant pressure. and in the aggregate, the numbers are good and people at the lower end of income spectrum are struggling with costs and really it's high inflation for the basics of climate it's not so much the inflation now, it's the price level because inflation has raised prices. inflation is now closer -- much closer to target and people are really feeling that. overall, this is a good labor market. you're at 4.1% unemployment. that's just a really good level, and you've been solidly there now for six, seven months and job creation is pretty close to a level that will hold the unemployment rate there. given that they'll be much lower population growth. >> one more question, some of the uncertainty around immigration policy, in your

assessment, is that making it harder for businesses and the fed to plan going forward? >> you know, we have reports and there's nothing in the data on that yet. you hear that kind of thing about construction for example and busi busi businesses that ae dependent on immigrant labor are saying that it's suddenly gotten harder to get people, but again, you don't see that in the aggregate data and hear it anecdotally. >> thank you, chair powell. nicolas from barrons. the uncertainty is certainly a seam today and any periods from your career or as it relates to markets, the economy, what's going on in washington and beyond or from lessons from history that may provide some guidance for central banker operating in uncertain times like today?

>> i guess i'd say uncertainty is with uses all the time. it is human nature apparently to underestimate the -- how fat the tails are in a way and the possibility. we think of things in a normal distribution and the economy, it's not a normal contribution and tails are very fat, meaning thing cspan happen way out of expectation. it's never not that way. i wouldn't -- if you think about it, think about the first few months of the pandemic. that was uncertainty. are we going to be able to reopen the economy? if so, when. how much, how long will it take? that was uncertainty. what we have now is a good labor markets and economy is growing at 2, 2.5%. inflation has come down to now the headline inflation number was 2.6. that's what the public experiences. we look at core because it's a better indicator of future inflation. so, yes, the price level went up a lot for inflation. people are feeling that and they're not wrong.

but the kind of uncertainty we have is unusual level of uncertainty about the economy and policies that are not for us to criticize or praise really. those are policies which people are -- have been e lekked to implement and they're im-- elected to implement and they're implementing them and a view to make a better economy. so i don't think -- i wouldn't call this as a -- one of those times. i wouldn't compare to the global financial crisis or anything like that given we have a very good economy right now. >> evan riser with market noose news international. chair powell s a march cut still on the table and additionally, are you looking to see better than expected data on inflation to cut or are you looking for inflation data that roughly aligns with current forecast? >> as i mentioned, the economy is strong, labor market is solid, downside risk to the labor market appear to have

invaded and we think this is on a slow and bumpy path. that tells me and the other members of the committee, the broad sense of the committee actually is that we don't need to be in a hurry to adjust our policy stance. your second question was -- >> whether or not you need to see better than expected inflation data or just inflation data that roughly aligns with your current forecast. >> it's one of those thins we'll know when we see it and the expectation is we'll continue to make progress. that's what we want. we'll know it when we see it. it's going to have to be something that isn't just idiosin cat and i can see continuing progress with housing service inflation and you'll want to see inflation behaving in a way that builds confidence that we are really making progress. that's the way it'll be. and is that better than expectation s? we expect to see that, it's just a question of when.

>> chair powell, scott for nprn. your five year review, you said the 2% inflation target won't be on the table. can you talk a bit about why you think that is because it's the right target or move the goal post mid game or what's behind that? >> i thornhill tore think that goal has serves us well over a long period of time. it's also this sort of global standard. i think that if central bank wanted to look at changing that, you wouldn't do it at a time when you're not meeting it anyway. i wouldn't look at changing it anyway but i certainly wouldn't look at it at a time you're not meeting it. there's no interest at all in changing if i'm being at all unclear. we're not going to change the inflation goal. any time soon. >> and five years ago, if i can paraphrase what y'all decide second-degree you're not going

to raise interest rates preemptively to head off inflation till you see the whites of the eyes of inflation because the solid labor market was so beneficial. have the last few years changed your thinking alaska that? >> what we really said was that we wouldn't look at a strong labor market and raise rates unless we saw some evidence of inflation. so the thought was we'd seen really low levels of inflation -- sorry, unemployment with no signs of inflation. why would you preemptively want to put people out of work in the absence of any kind of -- any evidence that suggested that this was not a sustainable level. it was a way of acknowledging how much humidity we have about the start availabilities and the youth rate of unemployment and that was something we'll d again. one of the many things we'll discuss, but i don't think that

insight is wrong. we didn't -- we've what we said was that at times when inflation persistently undershot 2%, we would likely allow inflation to run moderately above 2% for some time. that's what we said. that turned out no the to be relevant to what happened and nothing moderate about the overshoot and exogenous event that happened, the pandemic and our frame work permitted us to act quite vigorously, and we did, once we decided that's what we needed to co. the framework had nothing to do with the decision and looked at infuriation as transitory and right up to the point where the data turned against that. when it turned against that in late 2021, we changed our view and raised rate as lot and here we are at 4.1% unemployment and inflation way down. but the framework was more irrelevant than anything else. that part of it, that part of it

was irrelevant. the rest of the frame work worked just fine as we used it -- as it support what had we did to bring inflation down. >> hello, chairman powell. i'm with bank rate. with the oversight council and among the risk outline is cryptocurrency. talk about the risks now and regarding individuals and households, perhaps distinct from the concern about the financial system, do you worry that speculation in this unregulated asset class could hurt their financial well being or think is has a place in a household's portfolio? >> our role with bitcoin really is to look at -- with crypto, is to look at banks and, you know, we think it's -- banks are

perfectly able to serve crypto customers and they can understand and manage the risks and good number of our banks that we regulate and supervise do that. you know, the threshold has been a little higher for banks engaging in crypto activities because they're so new and don't want to make the mistake. if you're making a choice to conduct that activity inside a bank, which is inside the federal safety net with deposit insurance, then you want to be pretty sure that it's a safe and sound activity. so we're not against innovation and we certainly don't want to take actions that would cause banks to terminate customers who are perfectly legal just because of excess risk aversion related to regulation and supervision. >> [inaudible] >> that's not really our

bailiwick. you want people to be knowledgeable about the financial engagements that they have, and that's why we have, you know, the securities law we have. if you read a mutual fund perspective or individual stock perspectives, you want households to have the chance to understand the risk that they're taking and, you know, i do think it would be helpful if there were a greater regulatory apparatus around crypto and that's something congress was working on quite a slot we've spent a lot of time with members of congress working together with them on various things and i think that would be a very constructive thing for congress to do. thank you. liz: federal reserve chair jay powell strike ago calm and upbeat tone about the current status of interest rates and the economy, especially about trajectory of inflation since the 40-year highs of 1.5 years

ago. today, for the first time, after three rate cuts in a row, the federal reserve left rates unchanged at 4.25 to 4.5%. markets are slightly under water and well off the lows of the session. intraday's here as powell's conference began at 2:30 eastern and dow dove 265 points and now it's down 76 points. s&p similar price action here. it had lost 54 points at the low and right now down about 29. the nasdaq had a wild week and today the moves are nowhere near as pronounced as the biggest selloff and about 254 points shaved audiotape compared to -- shaved off compared to down to 130 and the vicks had a story and it was up 5.2% and it's paired almost all that and up just two-thirds of a percent right now as the markets sort of

calm down a bit. 2 year and 10 year treasury yields, they moved higher when the fed's decision whittle tape at 2:00 p.m. -- hit the tape at 2:00 p.m. eastern. we've got them falling off to the right hand side of the screen. the yield day high was 4.26% for the two year. we've got it at 4.236 right now and coming off a bit here . the 10 year yield high for the day, looking at this, 4.59% and we're at 4.55%. so just a little bit of a pullback here. gold has been an interesting picture and it got really kind of spasmatic around 2:30, 2:00 eastern and at the moment, it's flat about $2.40 higher at 2,797. i was taking notes because i'm old school so i look at exactly everything is doing the second before the announcement and after. so he could before it was at

2,769 so price coming up just a bit. dollar gaining slightly against the pound, the euro. immediately after the decision we have the canadian dollar and euro and slightly weaker against the yen and going with the uk pound and powell outlining the current economic scenario and maybe that's why the markets came off the lows and not too hot and not too cold. that's how he put it. jaire that's what we've been getting and the labor market broadly stable and unemployment rate is broadly stable now for six months and conditions broadly imbalanced and looking at last couple of inflation readings and see we don't overreact with two good retiree reading ands nonetheless last couple of reading ands policies are well positioned.

liz: look at dow. we have professor jeremy siegle joining me now. his done was calm and guttering for all the questions about this being the first federal reserve meeting of the new year and also since the president trump inauguration what, did you find most interesting here? >> well, liz, it looked a little hawkish and removing the phrase for the progress towards inpolice station and sort of scared people. my goodness, they're not optimistic anymore and maybe he'll talk about no more cuts. maybe things at current level is the same and news conference was

not the case and going to have more that needs to be done and did not sound hawkish at all and the stock market returned to the level that it was before that 2:00 statement and the bond market virtually a return to that level. liz: i think what you're talking about right at 2:00 p.m. eastern, he said inflation remains elevated and said but has made progress towards the 2% target and labor conditions remain solid and unemployment stabilized at low level. maybe it was that first part that kind of freaked out the market and inflation remains elevated but he then went onto say that we're getting meaningfully close tore 2%. that is of course the target rate. that said, what do you think about the neutral rate, professor, and where it really should be? we're throwing around a lot of rate terms and they won't say where the neutral rate is and we're at 4.25 and 4.5% and we need to come down even more.

>> yeah, the fed as you know, every quarter and we'll get that in the march meeting, thinks that the neutral rate is 3.0 and i think it's much higher and i've been, you know, that's between 3.5 and 4 so all though we are in a somewhat not as restrictive as the fed thinks and going down with them how strong with the economy has been and feds remain in that region. i still am thinking maybe one cut or two cuts and going to be surprised and i don't see an increase and weariness only in january and whole year ahead of us and we're going to follow the data and the unemployment reports and two reports and this

is going to be important in light of what you said earlier and we only had a couple weeks of that and by march, we'll have a better idea and he really ducked aggressive questions about tariffs, about, you know, any statement that trump made. would you think he would be able to do that in the march meeting with a lot of these policies are going to be much clearer in the direction, clearer and going to have to formulate some, i think, better answers than he had today. liz: glad you brought that up because we are less than 60 hours away from what i'm calling t day, tariff day. february 1, the president said he's ready to slap 25% tariffs

on our allies and going for them and today his nominee for commerce secretary is going to have howard lutnick and talking about potential impact and didn't have anything in the regular statements, jeremy. but he did come out and basically say that he called anybody that proposes tariffs were inflationary nonsense. that kind of gives you a window into whether we will see the tariffs kick in on february 16789 h 1. february 1. here's powell answering tariffs deeper into the news conference. >> we don't know what's going to be tariffed or how much or how long and what coun countries and retaliation and how it's going to commit through the economy to consumers. that remains to be seen. there's lots of place where is that price increase from the tariff can show up between the

manufacturer and consumer. liz: he's waiting and seeing. however, we've had many voices, some that are on the right for peter navarro and one of the trade experts saying not inflationary at all with tariffs on goods. the same thing and ken griffin of citadel, 0.72 hedge fund leader and they're worried about the tariffs in the economy and can you be the tie breaker here and are tariffs inflationary? >> put it this way, it's not tariffs by itself and tariffs that are a bargaining tool. we have to look at total picture and what is he going to get in terms and that's manufacturing for the that's a positive. and if countries give -- look at

columbia. big threat and hey, you don't take illegal immigrants back, then we're going to slap it down and look what happened. it's a negotiating tactic. looking attar riffs is a wrong way to go. what else can he buy for us in return? i'm still basically a free trader, but i understand it being a bargaining tool and if you can bar gone for good thingd things and that's a plus for the consumer and the american economy. liz: yeah, just the question being some country will say, yeah, i don't think s. we're not going to cave. we shall see. professor, great to have you. thank you so much. jeremy siegle. look at market reaction. look at dow jones industrials and right now down 22 points trying to inch closer to flat line here. it's not just in the markets and we're watching the zigzag reaction to deepseek and chinese

ai startup that rocked and it was apparently unconfirmed at a much cheaper level than everybody else here in the u.s. has been spending and it really caused the market to fluctuate for microsoft to report after the bell and in about 30 minutes, creator openai and evaluating weather deepseek used openai to train it is own open source model and going to sneak in the backdoor and stealing ip, intellectual property. not the first time chinese have done that and david sacks saying there's substantial evidence that deepseek tap intoed openai data to build its mod fell a process called distillation. meta reports after the bell and shares up 1% and lower in the red and punch back in positive territory and city analyst say

deepseek better for worse and it's a catalyst for meta. dutch chip equipment maker asml is expected to be a beneficiary and quite frankly is already is. the company says it thinks low cost ai models like deepseek will booed demand. in the quarter reported, asml saw a 169% jump in net booking ands their equipment is incredibly expensive. that lifted u.s. chip equipment makers, not just asml but chip equipment may recollects taibbi like applied materials and all higher on the session. let's din into all this with our floor show. we have cio goldman sachs and from the new york stock exchange, trader john corpina of meridian equity partners. where did you see the most pronounced flames of uic during

that powell announcement at 2:0g powell's presser? >> everything came in the presser. we get headlines. >> trying to interpret and bullish or bearish and seeing the volatility from 2:00 on and once things sell in and getting to the q&a and some real clarity to the thought process in the statement and that's when things started settling in. thing hads a significant move getting back below that 17 level and going to the small cams and that's bounce back here and we have what we were expecting going down the middle and no rate cut and didn't get enough information about moving forward and one thing i do think was an important message he gave out is they do not have to be in a hurry with policy. calculated and take their time and understand what new policies are going to be put in place and

adjust accordingly and going for them to come back to some sort of normalcy. it's a very long time for interest rates going from 2.5% to up to 7% and taking just as long to get back there. investors and in wall street and market was a very important message i pulled out of there. we'll get really good earnings coming out tonight and microsoft, me taxer ibm, tesla. those are the ones that will really deck at a time activity and market forward and these earning reports going to indicate the market and i've been seeing the volatility and going to take a bit going to get out of this deep market moving back and forth for some time. liz: bring in a cease to the conversation here. if the jobs report that we most recently got, which was december

and if the inflation rate that powell referenced and we're looking at sean duffy being sworn in as transportation secretary. sean duffy of course a friend here at fox business. he was one of the anchors. give me a sense of what it would take to let the guard down to cut rates. >> a couple things that chair powell mention that had point to that and what's -- mentioned that points to that and about these things and two things and going to be a continued signs of inflation coming down and underlying drivers of inflation coming down and then the second thing he highlighted, chips act think is so critical for investors today is if you were to see a weakening of the labor market and they'd have no problem cutting kind of much more aggressively, and the reason that's so important is

because you're getting the window here and you can lock in income and every investor out there needs in order to manage their port nicole folios and income is so critical and think do data committee will be the year of income and drive from bonds and strategies against equities and it's also key. in a day like today. it's amazing in terms of driving volatility and bids up options premium and gets paid for for the calls yourself. liz: talking about school of income and buying high yielding stocks for example with the best pe ratios and the yields are giving me a sense of what that means. >> yeah, so we believe there's different ways of buying income

and stocks are earning their stocks and not just paying out and perhaps knocking out the actual cash flow and writing options or using, buying into an etn that rights options against your stocks and that's a great way to generate income and there's a traditional way on bonds and going for them and dynamics in the market and today afters great example of volatility nothing came out of that and going to highlight something more important and going for them and it's fertilizer van that and going to make it -- nervana going to see holdman sacks with asset

management. liz: it's down 95 points. john corpina, let me play this one sound byte from jay powell because everyone was interested to know if there's more rate cuts to come and how he put it. you get to translate. >> i have no solution and knowing precisely. liz: he said we're well above it and should be seeing more cuts. >> going from that and going for a certain way. i think coming into the new administration, he was pretty clear about it and directly the policies that will be put in

place and rightfully so and they'll have to wait and sit on their hands for a bit and how it plays out and they can't do that for too long. we can't get into a cycle and the expectations are going to have rates where they are and one more meeting and second meeting from now we'll start seeing cuts from there. liz. the march meet and willing ooa bit of erosion and john corpina, thank you so much. check the markets here and we're slightly underwater at the moment and earnings are about to hit high tide and meta,

microsoft, ibm and talking about that and it's a flurry of names on quarterly numbers on her decisions and they are on the move and they're fast footing it up the nasdaq leered board and on pace for largest percentage increase in nearly two years after an earnings beat and best start of the year guidance ever and nice move for team that's up 7%. the telecom heavy wait and largest heavyweight and wireless subviber growth to be more than double wall street estimates driven by strong demand plants and linding club shares are tanking and they missed on earning ands the real problem, they issued light guidance and lending club's guidance was due

to being calm about it and normal seasonal softness and increased marketing spend still investors decided to punish the stock and we don't want to be members of the lending club and stock having worst day since july 2023 and cloud service proprovider and we don't often k alaska the name and sky high gains on the session up 10.5% and hitting all time high of 298 and on profit and revenue and raising full guidance and company ceo seeing new opportunities emerge in two main areas and hybrid multi-cloud and ai and he is well implemented to help ai on a large scale.

companies hoping to power the ai revolution got hammered in the deepseek selloff and ge, renovo and nothing compare to do the gains on your screen they've made over just the last six months. oklo up 279 persian and ge up and constellation up and ge pouring $600 million into u.s. factories and to do what. fox business going to get you an exclusive first look and going for greenville, south carolina, and live at the peek with the turbulence and claman countdown is coming right back. ♪ [sofi mnemonic] can a personal loan unlock your ambitions?

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the way i approach work post fatherhood, has really trying to understand the generation that we're building devices for. here in the comcast family, we're building an integrated in-home wifi solution for millions of families like my own. in the average household, there are dozens of connected devices. connectivity is a big part of my boys' lives. it brings people together in meaningful ways. ♪ liz: energy company chevron are cooking with gas year-to-date and both up about 7% and that compares to the 2% the s&p is up

at the moment and not bad. not bad here. that's despite ge renova getting scorched in a deepseek selloff and plan to power america's energy needs. now, ge renovo with the las vegasment to trip out the plants to feed america's insatiable hunger and the investment in the manufacturing facilities and helping ge renova to build with the partnership with chevron and going for them and going with ai data centers and humming along across the u.s. and fox business is ashley webster landed exclusive interview with the factory 4 and going with south carolina and massive nat gas turbines are being built and can't wait to see it. ashley: liz, massive may not do it justice and take a look at this, ge renova and natural gas

turbine and 16 feet tall and 36 feet long and this turbine alone could produce enough power for about half a million u.s. hopes and they're selling like hot cakes and they sold eight in 2023, 25 last year and this year orders already through the end of the year and into next. part of the demand being driven by the partnership you mentioned with chevron to supply power to them and they'll add more than 1500 employees to crank out these turbines to meet the demand. i also asked the ceo of ge vernova whether the news of chinese ai model on monday that shifted the market so much meant danger for his company and could it be a bad sign? he side competition is always competition and the need for power is there. take a listen.

>> that's even more of a catalyst to invest and at the end of the day, taxpayers global competition and it's a global competition and more than my citizen and ge versus frequency nova have and we need to win. ashley: i'm trying to give you scale and never easy on television, limit there you are. i kind of look like an ant. the good news is natural gas, we have plenty of it in the united states, which of course helps towards energy independence and something the white house is hot on as you well know. liz, back to you. ashley: ashley webster, i love seeing assembly lines in plants. i get all jazzed up about that . oh, the turbines. geek alert. thank you, ashley, very much. breaking news and trump administration has just done an about face and white house budget office has officially

rescinded the order from monday and all federal grants and a few hours ago during the white house ceremony and president trump signed laken riley act and referenced the order, which had sowed mass confusion across the u.s.. and there was a short term pause with funding freeze on certain discretionary spending payments such as government grants only for us to quickly look at the scams, dishonesty waste and abuse taken place in our government for too long as was explicitly stated, this in in way affected social security, medicare, medicaid, or other entitlements that americans depend on. liz: yet, the whole thing rescinded after a judge came in and block it had and there was a lot of people concerned about certain life savings that would have been affected by it and all kinds of grants and joining me is president joe biden's council of economic adviser's chair

jared bernstein. jared, first of all, bring it into the economic prism. what would have -- what affect do you believe this would have had had it been allowed to go there? >> something to the tune of $3 trillion going to talk about rescinding and that looked high to me and later in the day they seem to take some of that back. mag robin lou economically significant as you well know and macro-economically significantly for a bunch of people hurt by a play and there's a bigger problem and this policy lurching is bad news for those of us that would like to see a bit more policy certainty going forward and i might include chair powell as one of those people. liz: do you applaud the effort

of spending and redundant and not in line with certain views and going for them to be elected in >> well, i'd be careful with the ideological part of that, but definitely any program that was fraught with waste or scams and ought to be cut. but no question, there's hundreds of billions of dollars that could be cut from the federal budget. i know that because we proposed a cut of those magnitudes and doing these sweeping measures without rolling up your sleeves and doing the hard work of figuring out what's meat and what's fat. going for that and it's the latter and they're learning that the hard way. liz: one thinghat's not officially stopped or blocked or challenged or rescind second-degree his push to deport the most violent of immigrants. the big question is whether that'll spread to all immigrants that enter the country illegally and that was a question of bring

up to fed chair powell today about have you modeled for the effect that mass deportations might have? listen to his response and i'd like to hear your p perspective. >> one thing our staff does is look at a range of possible outcomes going from really good to really bad and one of the best things they do. in each teal book, look at five-year-old teal books and see, there's alternative simulations and they'll do that there's a baseline and they'll show six or seven alternative scenarios and really good ones and not so good ones. they spark the policymakers to speak and understand about that and uncertainties that surround this and staff does that and we are all well aware the range of possibilities is always broad. liz: how do you see that affecting the u.s. economy and

sectors like construction? we're on the same page. i understand that chair powell ped to talk about a range and he did that any time policy came up today and he's very much i have to see what it does before thinking about how it influences deport ago bunch of supply workers and there's going to be shortage of supply that pushes up wages and ding a housing market that's struggling and that's not a statement about whether we should or shouldn't deport folks that are here. we without documentation and simple supply statement and it's exactly right and it's more correct and anatomically to think about this sectorly specific because undocumented workers disproportionately work

in many of the low age sectors. liz: before we g you were the architect of the bidenomic chair and egg prices really quickly. fox business put out a story and everybody jumped all over it egg prices are expected to see more than 20% increase in the coming year and now this is donald trump's problem. it the hehehehe has a find a wy to get out for the biden administration just seeping to get through and that's part of the reason that he did not get to run for reelection and kamala harris didn't win. what would you do differently? one thing this brings up is whether the president can do much about grocery prices and donald trump leonard it's easier said than done and lowering grocery prices certainly weeings and i think probably other groceries, we know those price are rising and they're not

falling. there's no button to push next to the resolute desk to lower grocery prices and tried town crease competition in the meat packing sector and tough for the president to co. liz: hard to move the needer no matter. folks, microsoft and tesla and meta. they're all the three kings and record high for meta and once again, joining me with more than a trillion of combined assets under management and cio eric friedmann and mangioniment chief. erica wall street with tech side valuations and do you like anything here? >> we like tech.

liz, this is an environment and we're going where the money goes and that's in the cap x mode and we'll get good information and after the close today and clearly lots of questions going to the back of nvidia's impact on deepseek and bottom line we have bigger, stronger, faster through tech spending and look to your point, things don't go to the sky. we can't have tech valuelations go up indefinitely, but we think there's value and we like software here and probably wait on the semi but we think tech is a worthwhile spot for portfolios now. liz: openai with hands in a lot of different financials. >> it's the volatility market and given where we are in the economy and given all the different noise that's out there, there's a good prospect of volatility picking up and the financials that will capture some of that with activity

related to trade. liz: rates come down and how does that affect financials that love to make money off lending? >> i wouldn't expect rates to come down all that much and expectations for the fed and not cutting or cutting less than people expected a few months ago. and i think if you look at current treasury yields relatively elevated and expecting they come down a bit, but not expecting to return to levels we've seen year over year. liz: eric, jaire nothing came from the press conference and if anything, the sort of bark was louder than the bite and it was the press conference that we still think he was focused on consumers and going for industrials going to have them with momentum in the upper end of consumer discretionary spending and until we see the consumer crack, and we think

there's probably evidence they hang 24 there and buyer of the market and sector is tech and consumer discretionary where it's supposed to be. liz: stuart: i suppose this week has been quite dramatic and if you'd still look at it, we're up for the year-to-date. >> there's a lot of moten now and then in the economy and the fed today was a non-seventh look at where they were where the s&p was and liz: was down 54 and everything up off the floor and thank you so much for joining us and that's going to it for us. kudlow is next. larry: hello, folks, welcome to kudlow, i'm larry kudlow. robert f kennedy