on 30. >> buildic a bay area, moving forward, finding solutions. this is absence 7 news. anchor: every day, we talk with experts about issues important to the bay area and answers for you in real-time. the turmoil on twitter continues with layoffs loaming and new owner musk making clear how he wants to reshape the platform. and we should all be very, very worried. today is day of the dead. we will discuss the history, tradition of this mexican holiday and inside the celebration. the federal reserve announced another massive interest rate

hike. it is the sixth increase this year as the fed tries to curb the highest inflation rate in 40 years. wall street punished all three major indexes. the dough down 500 points. the nasdaq down 366 points and s&p 500 down 96 points. live with more on the economy and inflation, professor jim will wilcox. thanks for your time today. >> this is the fourth straight three-quarter point increase after a quarter point and half point increase here. why these dramatic moves? >> well, they are being forced to raise interest rates very rapidly and in large amounts because they waited too long to get this process underway.

when it was quite clear that the inflation rate wasn't going to be transit other and stubborn and much higher forced them in a position of having to ramp up rates quickly and by large amounts. >> why these moves when you have inflation and everything is getting more expensive and a little bit of that is fine. how do these interest rates curb and pull that back? >> the higher interest rates that the fed sets really go throughout the financial markets and throughout the interest rates that all of us earn or more often pay. what we are going to see are much higher interest rates on auto loans and mortgage rates and little more of that on

credit card rates and personal loan rates may also go up and that is the fed's intention so there will be more pain associated with borrowing and therefore, we will bore and -- borrow and spend less. >> this these increaseses paid off at all? >> they paid off a little bit and were necessary and higher interest rates take a while to really have their full force felt in the economy. we have seen the dramatic increases having affected the real estate industry rather dramatically and we will see it affect other industries like vehicle sales, probably and also veation expenditures and other sorts of consumer expenditures

and capital spending. >> they don't buy that home or car and the auto dealership is suffering. the stock market reacting to the news and investors didn't like it. were they expecting a smaller increst and why did they punish the markets? >> they got the increase they were quite sure they were going to get, but what they didn't expect was the hawkish tone that the chairman had during the ensuing press conference. what he indicated is that there will be quite a few more interest rate hikes and still have a ways to go. we could be looking at interest rates still easily going up another percentage point from where they are today.

>> if that is the case, what should people do making buying or investment decisions? >> of course these higher interest rates to the extent that they go through to bank accounts and treasury bills and other kinds of investments will cause some people to save a bit more so they earn those higher returns that these interest rates are bringing. but it's hard to know how these financial markets are going to react to all these interest rate increases. >> can you explain to viewers why this needs to be managed super carefully in that it could trigger other kinds of pain or worsen the recession? >> the federal reserve doesn't like to impose pain and in this case, they feel it is their job to raise rates and they know very well that there is going to

be economic pain. their intention is to soften up the job market to some extent. their intention is to slow the economy down. and that will make for lower incomes in the economy, both for households as well as businesses of all sizes and that's going to be painful. >> when you say soften the job market do you mean some people will lose their jobs? >> yes. i think it's very likely we are going to see noticeable increases in the unemployment rate and that happens for a couple of reasons, one more visible than the other. we are very attuned to hearing about layoff notice and people lose their jobs in quite large numbers. but the other thing happens is every year we have about a million morrell gibl workers. and the other thing that happens

is not only some people losing the jobs they have already got but other people have a much, much more difficult getting their jobs for the first time or or getting back a job they used to have. >> i looked at the new survey and 2/3 of registered voters think we are in a recession. of course, it's not just what people think, but that is important when you are a policy maker, but what is a recession and are we in it by those metrics? >> a recession is broad-based really noticeable decline in overall economic activity. we don't know for sure if we are in a recession. i think it is unlikely that we are already in a recession. it is certainly true that economic growth rates coming out

of the pandemic has slowed down and no surprise. and even though we have slower growth rates, there are positive growth rates. the economy is chugging along quite a bit and somewhat to the dismay of the federal reserve, that means they have to increase interest rates even more. >> what are the areas that are chugging along and doing well? >> a lot of parts of the retail sector are doing quite well. and not too surprisingly on reflection is that people have switched from buying things to buying services. as you recall during the pandemic, we did a lot of online purchases of things. we bought lots of items for our homes, for example, but we were not able to partake of a lot of

services like vacations and hospitality-related opportunities and we have seen a shift from goods to services. so the service industry has rebounded and continue to rebound quite healthy. >> how do you see us getting out of this? what are the keys? >> the inflation rate will get back down to the levels that were thought to be reasonable. 2% to 3%. that will take a while. it is very unlikely that the federal reserve will start lowering interest rates for quite some time because the thing they start -- fear the

most and then they raise them again. they don't want to have this cycle of up-and-down interest rates. they will raise them quite a bit more and then hold them for a while. but it's going to be well into next year before there is any serious possibility of interest rate declines. >> thank you, professor. >> thank you for your interest. >> the latest on musk's twitter takeover and lost users and

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>> now that alone musk has purchased twitter from public to private and fired some of the top executives, he is rolling out new plans to make more money. he tweeted out this message suggesting paying $8 for that check. joining us live to talk to us i is david troy news outlet that is progressive and highly fak tual. >> you say twitter and by twitter we is headed to a bad place under elon musk, how so? >> we are seeing signs of information war fare. and he has been vocal with

people in putin's regime and trying to be controversial and at the expense of everything else. i think this is something we need to be monitoring carefully because as twitter has said it is a global town square. >> there is that content mode regulates -- moderation part. he was to charge whether it's $20 or $8, what do you think about that? >> what we need to be thinking about is what are the effects going to be? it can't generate that much money. if he charged $20 a person, you would be talking about adding something on $100 million when it is closer to $4 billion.

the question is why do it. you are talking about something having the effect of deplatforming journalists who can't afford or won't pay something like that and making this into a strange status symbol these are people that are paying as opposed to people not paying. it is is disturbing. >> whether that is a status symbol or a thing that you want to verify an actual person and not someone impersonating you. a lot of people don't know what getting verified means. >> right now, under the current twitter regime as it has been, where you submit your identification and can provide

other credentials like articles you have written for publications or different affiliations that you may have with a nonprofit organization or what have you, there are a series of and i'm not verified even though i have been on twitter since day one and i had people hook me up with and i wanted a same process and hasn't come to fruition. i'm on the fence whether i might participate in a paid scheme. what's the point of this. why does this exist. >> musk teethed a poll today and we have that, advertisers should support freedom of speech or political correctness. we are going to choose one. 812% are -- 81% are saying freedom of speech. but what is musk's idea of

freedom of speech? >> this is getting into this information warfare, the idea we have to make false choices. i think most people would pick option c and do things that aren't offensive and maybe that is best for an advertising platform and creating these false platforms, who knows what he means or some kind of strange notion of political correctness, most people who would like to conform to societal norms wouldn't identify with that label either. this is false choices and the question is why are you doing this. this is information warfare more say than content. >> he is expanding community

bird watch. can you explain that and also today him saying, if you get blocked, it will be a few weeks. does that share content moderation? >> this is influx and seems to be making it up. musk has a some friends who are coming up with things by the seat of their pants. and what i have seen about just in the last day or so is that a lot of people who are expert at this kind of stuff know that these kinds of crowd source moderation and things end up getting captured by organizations and governments and everything else. there is a lot of knowledge available that is seemingly not being considered. and that is worrisome.

and as far as the bird watch thing is concerned, this is a thing where people want to add a things to tweets can add. there was an example of the white house putting out a tweet saying social security benefits would be higher than ever this year and the correction is, well, that's because inflation is high. well, that's true, the reason is because of oil profits and endless spirals of contexts that doesn't help people make sense of things. that's kind of creeky model and lead to not so great places. >> what can anyone do right now if what you are worried about is a billionaire with certain views controlling the information

environment and space. what can people and government do? >> we have to keep a sharp eye on this. not only a billionaire but investors from foreign. prince from saudi arabia are invested this. what is his intention with respect to russia and putin and what does it mean for national security. government and citizens need to keep an eye on this that could be damaging to our global democracies. >> thank you, david troy, for joining us today. a day to honor and remember. a look at a special event that is

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get exclusive offers on select new volvo models. contact your volvo retailer to learn more. >> today is day of the dead. it is a holiday in mexican

culture that honors the lives of loved ones. and we are live to tell us about it. and a member of the campus association. thank you for joining us, lisa. >> thanks for having me. >> do we wish people a happy day of the dead? is it a day of mourning or celebrating? >> a day of celebration for our dearly departed. i'm not sure you would say you are happy but more a remembrance. just like remembrance. >> "coco." tell us about the origin in of this holiday. >> it is a mexican celebration

and observed in other places around the world and families gather to remember the lives of their deceased loved ones. november 1 is when children departed and november 2 is for the adults. we believe the spirits are guided home to enjoy the offerings that are left with them on these altars and they originated in the ancient aztec and they will have altars and it is in their home. >> can you show it to us. you sent us some pictures from today. talk to us about what are these items and what they signify? >> sure. the altars, you will place

pictures of your loved ones and decorated skulls and favorite foods and flowers. the flower for this holiday is marigolds and have a strong scent and color and brings back the good memories. >> is this a multi-day celebration? >> first and second for children and adults and a time to cheen and decorate the graves and come together. usually on this day in mexico, family members will come together and visit together and they'll share stories about the story, humorous and enduring. they play loud music, the type of music that person liked and you are bringing back the

essence of that person. and there is a saying in spanish, which means to remember is to live again. >> how did you come together to have this event? tell us how it started. >> this is a partnership, the library and the center of excellence and partner with students and decorate the altars and doing it since 2017 and started with this curiosity what are the schools and how they work with this event and we had our sugar schools decorating the work shops and invited these groups to decorate the altars and hold a reception and that is

bread of the dead. a delicious bread that is shared on this occasion and we have mexican hot chocolate and doing it for the last three years and students and staff enjoy learning about it and honor our dearly departed and the library is the heart of our university and we are fortunate to celebrate those traditions. >> thank you for sharing that with us, lisa. really appreciate it. >> sure, you're welcome. >> and we'll take a short break and catch

tonight, several breaking stories as we come on the air. what we did not know about speaker pelosi's husband, unconscious in a pool of blood for several minutes. president biden now set to speak tonight about the threats about preserving democracy. and news coming in tonight on those officers in newark attacked, shot at close range. first tonight, we have learned there was surveillance at speaker pelosi's home. capitol police weren't actively monitoring it. and sources tell us they didn't know about the break-in until they saw flashing police lights outside the home. tonight, news on paul pelosi. who we learned was unconscious in a pool of his own blood. tonight, president biden set to deliver that speech on democracy in our country, preserving it in the wake of the