brian wesbury, glad you could talk to us today. thank you. >> hey, melissa? melissa: yeah. >> my forecast for the s&p 500 at end of this year -- melissa: let me write it down. >> 3100. so we still think at the end of the year we'll end up with 15 percent gains in the market. melissa: we can't wait to have you back between now and then to check in on the forecast. david: we have the videotape, brian. melissa: appreciate your time. david: by the way, you and he both touched on the same thing john lonski did, what the fed may do in reaction. if we see another 5% drop. we saw 4% today alone. if we see another 5% drop by tomorrow or in the short term we may see the fed say, okay we'll not dump everything all at once, get interest rate hikes, three a year. whatever. melissa: that would be, there would be a good reason for that. when they're talking about the taper, getting rid of what is on their balance sheet. if there is no appetite from buyers in the market to buy those products there is no reason for them to go out and sell it. that is what we're seeing. when y

as my good friend brian wesbury, says the economy is not a racehorse but a plow horse. it is plowing pleasantly forward. it is likely to continue further, which means rates have to go higher and the fed chairman has acknowledged that fact. >> i want to point out something i bring up a lot here, the law of unintended consequences when it comes to the federal reserve. in other words, the fed keeping money flowing, keeping rates so long for such a historic amount of time, they in some ways, dennis, i fear took away normal push-pull, ying-yang of supply and demand equation. >> yes. trish: in other words why should i do something today when i can do it tomorrow or next year because money will be just as cheap if not cheaper then. >> there will be deflationary forces not uncouple bent for that long period of time. the fed is trying to create inflation. eventually that will show up. thus far the productivity numbers have not and supply of labor from abroad continues to keep wages and, wages down, productivity up. so inflation has remained shockingly low for protracted period o

brian wesbury chief economist at first trough advisors. brian, i will start with you, what do you think of the inflation report today? what do you think of it going forward and the market's reaction? >> numbers we saw on inflation today were a little high for the month. inflation is heading higher. so will interest rates. the fed will continue to lift rates this year. but one thing investor have to remember is that these rates are still super low. so the market can take higher interest rates. so this, this idea that the market is going up right now in the face of inflation, we already knew inflation was going up. we already knew interest rates are going up. we lived through a correction. no one knows why they happen. everyone, everyone tries to assign all this blame and find an exact reason. it was just an emotional correction. fundamentally the market is still sound and i expect it to end this year a lot higher than it is right now. melissa: carol, do you agree with that assessment? >> yeah. i think in terms of inflation and interest rates

brian wesbury. stocks look to close at session lows or just slightly off them right now.has been a rock 'n' roll day. and a little bit more roll than rock, i have to tell you. [closing bell rings] 14 seconds left until the end of the session. that will do it for the ""claman countdown"." after the bell is stand standing by. guys? melissa: release of fisa memo. shocks getting slammed in final moments of trading. the dow tumbling 700 points. 2 1/2%, biggest drop since "brexit" of june of 2016. nasdaq tumbling under 2%. all three major averages also logging their worst week in two years. i'm melissa francis. >> the best we can say it doesn't positive pop 700. looks like it is settling 677 points to the downside on the dow. i'm david asman. very important friday on after the bell. we have you covered on everything. go straight to nicole petallides on f