we begin with the big issue, chair powell centerstage in wyoming. >> restoring price stability will likely maintain -- require maintaining a policy stance for some time. the historical record cautions strongly against prematurely loosening policy. the committee's overarching focus right now is to bring inflation back down to our 2% goal. price stability is the responsibility of the federal reserve and serves as a bedrock of our economy. without price stability, the economy does not work for anyone . in particular, without price stability, we will not sustain a student -- have a sustained period of conditions that benefit all. the burdens of high inflation fall on those least able to take them. we will keep at it until we are confident the job is done. taylor: joining us now is jp morgan's kelsey barrow of morgan stanley and two others. i know we are always focused on the rates markets. i am looking at an equity market that appears to be caught off guard. what did you glean from powell today? >> he basically undid the mistakes he made on july 27 at his press conference. then he said the fed

lisa: we are moments away from fed chair jay powell. really, the question has been how long you hold rates at a high level. the terminal rate. we expect to hear more from fed chair jay powell? jonathan: we will hear from the chairman of the federal reserve. let's listen in. >> today, my remarks are shorter, my focus narrower, and my message more direct. the open market committee's overarching focus right now is to bring inflation back down to our 2% goal. price stability is the responsibility of the federal reserve. it serves as a bedrock in our economy. without price stability, the economy does not work for anyone. in particular, without price stability, we will not achieve a sustained period of strong labor market conditions that benefit all. the burdens of high inflation for heaviest on those who are least able to bear them. restoring price stability will take some time and requires using our tools forcefully to bring demand and supply into better balance. reducing inflation is likely to require a sustained period of below trend growt

. >> i think that is why chair powell referenced it several times to recognize the fed is looking at that, they have learned a few lessons. one is that as said, they are not going to relent until the job is done. that was an absolute message that i'm not sure has been offered before. second, start and stop policy that we've experienced acting now be resolutely and better. he admitted there would be pain, which is as close to a recession's were ever going to get. it does suggest that chair powell is taking on the lessons, and he is intent on implementing them here. >> and other part of the speech, is that they will hike to restrictive territory and stay there for a while. a while seems like a vague term. is this a story of months, years, decades? it will depend on the data, inevitably. none of us can know that now. particularly, given how over the map the data has been. soft data has been pretty abysmal. our data has held up. we will get more job data over the next several months. i think what chair powell signaling is that while the markets were pricing in a pivot next year, rate cut

a lot will depend on what chair powell will say. not as much about how may rate hikes there will be but also the economic consequences of these rate hikes. we have seen that curve steepen and it shows how complex it is. where bonds are going, the shape of the yield curve will be a major focus for investors. shery: we will be live at jackson hole later this week for that crucial powell speech as well as interviews with fed presidents. let's get over to vonnie quinn with the first word headlines. vonnie: the australian prime minister says inflation is a key priority for his government. headline inflation is running at the fastest pace in 21 years in the second quarter and is forecast to accelerate even more by the year end. he echoed advice from the treasury department that inflation will not go past 10%. singapore is repealing a colonial era law that criminalizes sex between men. it is something most singaporeans will now accept. he stopped short of recognizing same-sex unions, adding the constitution will be amended to add the defin

let's start, jim, with what we might be expected to start with, of course, the big event, fed chair powell going to be delivering a speech in the next hour at the jackson hole economic symposium markets of course will be listening for any hints about the path forward for interest rates and the economy. we'll bring that you to, as you might expect, live steve liesman, any thoughts going in >> they've done a remarkable job making us feel gloomy, that the people who want to hire shouldn't hire because 2023 will be very bad. it's actually very effective i'm not being facetious. it's a very effective way to talk the economy down and perhaps stop the willy-nilly price increases rather than just say, look, there's going to be a storm coming to you in 2023, so why don't you docaddress it accordingly. a lot of companies are not hiring >> to go back to the storm analogy, which takes me back to jamie dimon, remember that week? >> don't sit, don't stand, all that no he's offering a bottle of 1942 to newman. >> you're going to have to explain all the different references one was to a story about people

and for the considerable media presence, and i don't know if we have that shot, but we have fed chair powell taking a walk with -- there he is with his two other vice chairs, that's john williams, the new york fed president, who is the permanent vice chair of the federal market committee and there's brainerd, the recently nominated and approved vice chair of the federal reserve board. she took office in may the idea here is this is classically the trica, the two vice chairs and the chair are see as the inner circle on setting monetary policy. typically, there is not a whole lot of monetary policy space between these three when it comes to the setting of policy they tend to be -- the three of them, pretty much in sync. even if they maybe disagree behind closed doors they don't typically do so publicly and today the speech obviously a -- you know, something the market has to really take into account, the idea that fed chair jay powell talked about the idea of pain in the economy and really answering a question that's been out there among fed observers, which is how might the fed react if there

the final spread, the week ahead featuring fed chair jay powell from jackson hole.oming up at 10:00 eastern time next friday. from new york, this is bloomberg. ♪ jonathan: live from new york city this morning, good morning -- rather, good afternoon. the yield right now at the two year is about 3.25%. we opened up monday morning at 3.25%. we are ending the week where we started the week. coming up next week, speaking on tuesday. numbers out of europe and the united states. second-quarter gdp and jobless claims coming up thursday. the fed hosting its annual economic forum in jackson hole, wyoming, with chair powell taking center stage on friday. i will be there, hopefully i never what time it is when i get over there. meghan swiber, luke hickmore, troy gayeski back for the rapidfire around. 50 or 75 in september? 50 or 75? meghan? meghan: we will go with 50 because of the way the fed has been talking about a passive policy going forward. they think they are already around a neutral range which suggests a dial back. troy: 75. luke: 50. jonathan: have we seen the high o

goldman sachs does not believe chair powell will be going over. we are talking about the markets racing for the 1980's with inflation increasing, powell not transforming to say it will not be a moment and he expects 3.5% to break inflation. haidi: really interesting given the expectations. the take a look at how the markets are reacting. power cross asset reporter joins us. what does it feel like? is it back to obesity -- potentially a bear market rally? reporter: markets are taking a pause. they are waiting for jackson hole. the fed chair -- for now, the s&p 500 lower for a third straight session. trade volume was lower. the nasdaq was flat. the last time we sawed happen was earlier this year. it is a mix of things. the dollar halting a four-day rally. people are skeptical, but it remains to be seen. markets are trading range bound. shery: people are concerned because of the market bullishness leading up to jackson hole, except for this week. are we expecting chair powell to come out with any remarks to micromanage financial conditions? what can w

we want to hear chair powell direct that tomorrow.ey think labor is higher relative to the prior cycle? how much pain they willing to take in terms of the trade-off between employment and inflation? kriti: how much are they willing to take, how much pain? can we talk inflation, there are estimates that it will go to 3% or 4% next year. isn't that concerning, the case? -- the pace? brett: the fed has a job to do. as george said, inflation is job number one. they want to see evidence. it is not just getting to three. is going back to 2%. as michael noted, the stickier portions of inflation are going to remain for some time. they need the fed to get real rates into positive territory in order to bring down inflation over time. the market has certainly come a long way since the july 27 meeting. expectations have risen to 3.8% for next year, up from 3.3% in the wake of the july meeting. the peds's messaging has started to get through, but there are upside risks to this. there's the other thing we want to hear from powell's risk management

. >>> stocks falling hard as fed chair powell's jackson hole speech sends a chill across wall street we are at session lows the most important hour of trading starts right now welcome to "closing bell." i'm mike santoli in for sara eisen. let's get straight to our market dashboard for a look at these losses deepening as we go throughout the day the s&p 500, here's a one-year look giving back a decent portion of that rally we got from june. as we see it right now at 4080, this is at a point a lot of folks are looking for. this is the august lows set a couple of weeks ago. a lot of times you make a new low in a given month and it has people reset their expectations for what the trading range is. bigger picture, we never broke that downtrend from the january peak and the rally off the lows got a lot of credence to it. this is where the trenches are dug between the bulls and the bears here, right around these levels now, take a look at high-yield debt part of the message from jay powell seemed intended and making sure that financial conditions don't get too loose, the markets don't get t

fed chair jerome powell warning that the fight will cause some economic pain and our next guest says evidence that the central bank's strategy is already working. >> let ate bring in ron insana, commentator and senior adviser ron, always good to see you. why do you think the fed is most low done >> well, we are starting to see the inventory builds of consumer goods in particular and retail clothing and whether it's automobiles to a certain extent and we're seeing industrial production and motorvehicles rise sharply and semiconductor chips are moving up in terms of available supply and housing >> oops! it looks like we've had a little bit of a satellite issue there with ron insana. if we get him back we'll let him finish his thought there, the main thought -- we -- we maybe are seeing some inventory buildup in lots of areas and -- >> nordstrom, they've been talking about that >> we'll take a quick break. we'll go back out to jackson hole for more reaction to fed chair's hawkish comments sending stocks lower and we'll hear from getta gopinath you can listen to power lunch on the go and

. >> actually happy to see how chair powell's jackson hole speech was received. people now understand the commitment to getting inflation back down to 2%. manus: the european union considers decoupling gas and electricity prices ahead of an emergency energy meeting in brussels. the u.k. chancellor tells bloomberg it's working on additional measures to help households and businesses with skyhigh energy bills. >> we know we need to do more because by december, january coming into next year, there is ill -- i'm preparing options for the new incoming prime minister to be able to do even more. manus: it is a one point $5 trillion of an equity market implosion to get the fed to say, look, we are glad you are listening. i wonder how much more pain these markets have got to take to face the fed. dani: stocks have gotten the message but perhaps not fully capitulated if i can start using that word this early in the morning. we are seeing a more settled market today. let me get into the future session so far. european stocks futures, those up .6%. welcome back from the bank

chair powell stated we are at the neutral rate.it moved insignificant fashion. all the talk started being amplified. that is one reason communication has not been consistent and that has been a problem for the last year. the second issue is, the market is looking at the impact on growth, the pick content -- the potential impact on markets and it remembers the fourth quarter 2018, april members the fed blinking, so he believes one push comes to shove, the fed is going to blink again. >> you don't think the fed will blink anytime soon? >> i don't know, john. i know that they should not blink, but it has been very difficult to call this fed. this fed has failed at analysis, failed at forecast, failed after medication, so it is difficult to say what this fed is going to do. it is easy to say when it should do, but much harder to say what it is going to do and that is when you get this tick -- this disconnect you have been talking about between the markets and the fed. >> larry summers called the comment analytically indefensible. now w

i'm so looking at everything they said, so will it change direction only for chair powell tomorrow? y: it will be a feature of the last few days. i think we are waiting for powell tomorrow. i have had a number of fed speakers. in aggregate, it is very quickly. let's talk to mike mckee. he is the economics and porro does policy corresponded joining us from jackson hole. what do you think? michael: at wall street you see the bears today, but they don't out here you don't see the bears. i would assume at this point the fed is not going to have a measure that would encourage people to sell their assets. but they would not mind if they do, because if they cut financed desk if they tighten financial conditions, which is what they're worried about, everyone here is focused on that. the idea that wall street is tightening the fed, the question is how does powell disabuse that idea. kailey: what languages he avoiding? is it as much about what he doesn't say is what he does? michael: and always is. and the question is how do they portray the idea that they will go farther than anyone a people

that is the economic drama playing out as we await to hear from fed chair powell. that will have an impact on emerging-market assets. we are seeing kind of an ease to the pbs eb ok with the people of weakness we are seeing. we have seen maybe a line in the sand. maybe there is a buyback against the strong dollar. the pbs he does actually want to slow the pace of u.s. appreciation. it really has accelerated the growth of versions between the pbmc and china and in particular, the u.s.. click let's introduce our guest. attending the 37th jackson hole meeting. let's bring an jason frankel -- jacob frankel. the former chairman of j.p. morgan international and former governor of the central bank of israel. right to have you back. people are putting a lot of weight on this speech. they want him to be clear about where they are going and where they are now. what is the challenge for jay powell? >> they want him to be clear today. there have been so many changes. now it is the time to reject clarity. we believe jay powell is perfectly capable of doing that. we expect them t

after fed chair jay powell warned more rate hikes are coming. today, said the fed will have to get more aggressive to get the near-record inflation under control. but he warns, that will come at a cost. >> there will very likely be some softening of labor market conditions. while higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. these are the unfortunate costs of reducing inflation. but a failure to restore price stability would mean far greater pain. >> softening of labor market conditions. in people speak, jobs will be lost, people will be unemployed. fed officials have seen encouraging signs, though, that inflation is already easing. the labor department reports consumer prices jumped 8.5%, last month from a year ago. that's a hair lower than the 9.1% year over year in june. in a moment, cnbc's dominic chu on the blood bath. but first, correspondent steve leaseman, live in jackson hole. how much is he talking about here? >> it's hard

i think the market made a mistake in interpreting chair powell's remarks last week as dovish because i think the market was afraid he would say we would keep going strong. all he said was we are going to look at the data and today's date appointed in the direction of having them be more aggressive, both in september and perhaps down the line. jonathan: can we start flirting with this idea of maybe we were neutral and he got criticized with that? larry summers called it analytically indefensible that we are at neutral. mohammed earlier said the idea we were neutral, the notion we were there is "comical." do see that based on inflation and what we see for the jobs growth? is it comical, and analytically defensible that we are a neutral? gershon: i do think, given the reason for the inflation -- i probably do not know all the reasons, but it is not just demand-side, there has been a big supply interruption over the past couple years and controlling more of the demand-side, they might have to go a lot higher then people are thinking now. but the market clearly does not think that way. yo

dom chu is hosting a major selloff after chair powell's remarks what's on tap for tonight >> on thatal, "the fed factor "sprk, we're going tk down the nine-minute speech. he packed quite a punch tilling the markets that fighting inflation is the number one priority, even if, this is the key part, even if it hurts the economy. we are looking at every angle with the limited time we do have, bank, technology, the sq consumer, asking the question you want answers to many i'm sure the news with shepard smith is going to tackle it as well >> we will be sure to be tuned in the three indeces deep in the red after chair powell warned of some pain ahead as the central bank continues to fight inflation. you were pointing out more areas of the market that could be more sensitive right now. what are you looking at specifically >> first of all, the defensive parts that are health care and energy, i think, are kind of obvious here but the high multiple tech stocks that have been under a lot of pressure for a year and a half and caught an enormous bounce demanpending on which on you were looking at,

fed chair powell of course packing quite a punch in those nine minutes, telling the markets that fightingion is the number one priority, even if, and this is the key part, even if it hurts the economy. we are looking at every angle we possibly can with the unlimited amount of time we possibly do have 's, technology, the consumer asking the question that you want the answer to. is there opportunity amid this selloff, and is the bottom near or has it already been behind us? that is all coming at the top of the hour and of course, we are going to do that show. i'm sure the news with shepard smith is going to tackle it, as well. >> thank you so much, don. we will be sure to be tuned in. another check on how stocks ended the day, the three indices deep in the red after fed chair powell warned of some pain ahead as the central bank continues to fight inflation. tim, you were pointing out more areas of the market that could be more sensitive right now. what are you looking at specifically? >> first of all, the defensive parts that are healthcare and energy are obvious here, but the high multiple

chair powell is going to say they are data tended -- they are data dependent. there is still another report before that meeting. i think what the market is setting up for is that the fed is not relenting on its inflation credibility or a clear commitment to slowdown the hike. the market has been struggling with the threshold, what is the threshold to stop the hike and then cut rates? we have already priced in all of these events. i don't think we get a lot of clarity. the market is setting up for a hawkish message for the fed to say the data remains strong, we remain committed to our inflation target. we continue to hike at a slower pace. it is the end point that the market is nothing that closer to 4%. i don't think chair powell will disappoint us and say it will be lower than that. reiterating the inflation commitment but keeping our options open. kriti: what does that mean for the bond trading at a time when we are seeing there is some anxiety, some nerve state into the market? you have seen the stock market not do a lot. the bond market, we have in the -- 1

>> you mentioned chair powell's remarks. think we need to revise our projection at this moment. >> will you continue to up the more gradual hikes? cracks at this moment, i don't want to. if you mention our inflation rate continues to be available like chairman powell, we could prioritize price stability. >> it seems that they want to get ahead of central banks. they will start cutting. market rates in korea have been saying rates could come down by 2023. cries i think that depends on how persistent they are. if inflation goes down as we expected to, inflation will go down at the end of next year. if that happens, the door is open. >> exports falling, experts have weakened. is that any kind of red flag on the economy at this point? >> there are a lot of cyclical elements and share price. in the medium-term, we are very much concerned about the global chain and china. china is becoming our competitor. i think we really benefit from the chinese factory. we have to come to the new global supply chain. >> that has been a broader

the three indices deep in the red after fed chair powell warned up some pain ahead as the central bankues to fight inflation. him, you are pointing out more areas of the market that can be more sensitive right now. what he looking at, specifically? well, yeah. first of all, the defensive parts that are healthcare and energy, i think, are obvious. but the high multiple tech stocks that have been under a lot of pressure for a year and a half and caught in a response, pending or which ones you are looking at. whether you are talking about zoom or blast or the things in the a are cate-cate etf. to me, high multiple tech companies, especially the companies that are not making money are the ones that not only are under pressure in terms of their core business. i look at roku and the business they are exposed to. we heard from zoom. we heard some of the disappointing numbers. of all of these companies, these are the companies that in the environment where we are pricing assets differently and putting a different discount rates, a higher discount rate, these companies are worthless implicitly,

how much pain, economically, is chair powell willing to take on to keep inflation lower? what level of joblessness? what level of depressed economic growth would be okay? >> i don't think we know. it is something were going to have to figure out over time but what is clear is a couple weeks ago at the press conference i asked chair powell, however session would change your policy, if at all. he didn't really answer the question. i asked him again and i think he answered it today, some level of detraction in the economy some level of rise in unemployment would not dissuade the fed from keeping it at a certain level. courtney, i've got to say i'm a little angry at the market today. i met it tim, bono, maybe grasso. i don't mean them specifically obviously, but what were you guys thinking? how much ted fed talk about higher for longer? how many times did the fed have to say we are not going to cut them immediately the fed said blue in the market said yellow and then we have three guys here . parker and bostic, they're not hawks. these are some of the most dovish people out t

the spotlight is on chair jay powell and how hawkish his message will be.ys is there covering it for us. the market expectations from jay powell are running so high, you have to wonder whether his usual level of hawkishness will be enough. kathleen: that's what some people are arguing, that he needs to go in next or mile. he has to go past what he has said previously. he has certainly said that more needs to be done. the distance of a soft landing has led them to wonder how the recipe is going to be. it's every year at the kansas city fed symposium. he will have that opportunity as he opens the proceeding. that's how we starts to decide if he wants to send a stronger message. do i want to make it clear there's policy framework. i want to make sure everyone is seeing. he could be theoretical or academic. it's probably not the speech you will talk about how the economy looks. but there will be a bigger framework. but there is no doubt that he and everybody at the fed must realize this is the fed when the markets would like more guidance and they are hoping th

chair powell acknowledged there were mistakes that were made is the fed addressing those and how arey addressing those? when you look back at the decisions that were made, to continue to buy assets when it seemed pretty clear there was an inflation problem. how do you fix that or do you need to fix it >> i think we did fix it, in a way, i mean the process by which you arrived at that when everyone agreed we should keep buying assets. >> i think when the pandemic came along to defend what we did a little bit, the pandemic came on and of course, it was a jiegantic shock and we were all in to try to protect the economy from this really big shock and we set out a path that was overboard, you might say both with fiscal policy and monetary policy and that was by design. we didn't know how bad the pandemic would be and what it would do to the u.s. economy as it turns out, the economy is more resilient than we thought and some of that was overdone and we got inflation out of it i think that will be the way history moves with this and now we have to switch back and say, okay, we've got to get

that was conspicuously absent from chair powell's speech. will be a choppy month. just like in june, when i said, still believe that was once in a generational opportunity to really pick away at some really high quality companies, i think you get a second chance before we get a rally into the fourth quarter. charles: all right. nancy, by the way, just a little trivia for you will. "all about eve" set a record for women received academy award nominations. all for acting but none of them won. lady bette is a legend. >> send me a money gun when you get a chance. neil: charles: already got a call from powell. he will need it in two more fomc meetings. see you later. we talked about black swans but maybe auto loans. maybe number one source of loans out there. we'll stay on the markets, get you prepared for the last wild hour of trading because it always is. we'll be back. ♪ this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all

i was happy to see how chair powell's jackson hole speech was received.now understand the seriousness of our commitment to getting inflation back down to 2%. >> pakistan has secured a bailout from the imf after political scandal and flooding in the country. the funds will -- a new report seeing the benefits of green and black tea. those drink road rage day seek -- attracts nearly 500,000 people over 14 years. they have lower risk of cardiovascular disease and stroke. global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. tom. tom: coming up some of the debates over interest rate hikes at the european central bank. pushing back against the idea of a large increase. that is next. this is bloomberg. ♪ >> the inflation rate now is high. it is extremely high. that kind of distance, even if you are fully confident it will return to 2%, there is a sense of adjustment -- we think about you add 2% inflation -- at the peak, we are not going to see that. we may

>> i'm no macroeconomists, so i'm glad chair powell is in charge, not me.hink there are indications of recession because folks are trying to make sure that their cash flow is responsible, and in inflation, the pocketbook is hit harder because everything is more expensive. we are seeing more demand, but it seems very pertinent to be very focused, and that is reflected in our guide. emily: can you give us some color of what consumers are expecting? consumers are under pressure. everything is more expensive from gas to groceries. how is that reflected in your data? >> there's definitely the great rotation. we talked about this before. some time mid may, a tremendous number of goods were replaced with services. over the fourth of july weekend, we saw unbelievable growth in travel. experiences, tickets, people sort of jumped back onto after covid. they are also doing really well. it's just there's real weakness last year and the yearbook -- relative to last year and the year before in home goods and a lot of other things that we purchased during the pandemic, if

kailey: that was chair for jay powell speaking in jackson hole.he markets are deciding they don't like it too much. we are down 2% on the sp -- on the s&p 500. it's get more with scott chronert, citigroup equity research strategy had. your reaction to chairman powell? scott: a little bit of context here. first let's think about how we got to the current we are responding to, and that is we had a selloff with mid-june lows. you got interest rates peaking around news inflation -- precipitated a 50% or so rally in the s&p a week or so ago. we put out a note suggesting that our 4200 year end target had been reached, but really what it sets up is we think increased volatility around perceptions of this dynamic between interest rates, earnings growth expectations, and valuations. what you got today pretty clearly is a view that he knew to expect at a minimum another 75 basis point hike in the september meeting, which is what we have been projecting, but also i think the important narrative here relates to this higher for longer interest rate backdrop. t

>>> good morning futures pointing to more losses after fed chair powell's comments at jackson hole sparked -- let's say preceded a 1,000 point selloff in the dow. >>> now it's jobs week in america and we will get you ready for this week's employment report and the other big market events that you need to be watching. >>> plus, countdown to launch. nasa's artemis 1 is set to take off in two and a half hours for a mission around the moon. it's monday, august 129th, 2022 "squawk box" begins right now. >>> good morning welcome to "squawk box" here on cnbc live from the market site in times square i'm mike santoli along with joe kernen joining us is stephanie link good to see you. >> good to be here. >> equities showing a little bit of down side down 3.3% on friday in the s&p you are looking at less than 1% decline here the dow down 250 it has been down as much as 300. the stock market did react more dramatically friday than the rest of the markets. the bond markets, of course, it comes since the worst day since may in the s&p dropping 1,000 points. all averages down 4% for the week treasury yi

i think president daly is right to be talking this way, and i found it was our that in chair powell'sonference, there was a point roughly 12 minutes in when one decided to turn dovish and it was nonsense from the start. when you watch daily or evans out there, i mean, there is no dovishness here, nor should there be. guy: i'm curious to get your take on this because there are a series of comments coming through from daily and various others about where the neutral rate is. he seems to go off script. do you think that has now been corrected? this idea that we are getting close to neutral. do you think we are in any way close to neutral? >> i am not going to say whether he went off script or not, powell is professional, people make errors, and i don't think he did, but it doesn't matter because whether it is off script or what we see in the markets, it is clear messaging, as you put it, pretty much the whole committee, making crystal-clear that this is a path that has been preannounced from what chair powell repeatedly outlined, getting the 3.5 to 4% in february is locked in. i would em

he is a real interesting cat on that fed board fed chair powell friday morning.t is his speech at 10:00 eastern time you'll be there. you will see steve liesman and elk -- there are elk there, seema, as well >> the mecca it is not just the u.s. markets that will be watching jackson hole closely any potential pivot from the fed share could have an impact on emerging markets let's bring in the chairman of rockefeller international and founder of breakout capital. you say what fed officials say over the next 48 hours could be critical to emerging markets specifically china tell us what you're seeing. >> hi, seema i think if you look at emerging markets there are 150 developing countries out there. so i think the fed's decision has a different impact on different markets and clearly the most vulnerable to me is china. we've spoken so much about inflation and how inflation is rising everywhere, but one country that is still suffering from possible deflation is china. that china's property market is forced to roll out massive amounts of stimulus. not as much as they us

did we just hear from fed chair powell on friday saying there's more pain for households and businesses to come snap is taking its medicine now. you can argue it's in a much more vulnerable position than even other ad players like meta and certainly google which has benefited from apple's privacy changes. >> we'll talk more about the ad market and some of the add executives snap is losing to the likes of netflix the one incremental they did add was this quarter to date revenue guide, not quite as high as that just the plus sign on august quarter revenue was enough to turn the stock around. >> carl, let's talk more about it with the reporter who broke the story. alex keith of "the verge." deputy editor is the title alex, welcome. important scoop, but what are i wonder the follow-on implications for digital advertising? what's the underlying trend driving this we've seeing this in e-commerce, now increasingly in digital ads. >> i think it's just showing there could be more pain ahead that said, we did see ceo evan spiegel saying their growth rate quarter to date was 8% you're starting to

. >> without question, yes, we've heard that from chair powell last friday. the economy is weakening in some places, but the labor market remains strong and that has to crack before the fed is finished there's too many open jobs for people looking at them, and that's what's causing this concern that inflation is not going to disappear anytime soon. >> so when you say de-risk, what do you mean, get out of stocks >> have a lower weighting that you might otherwise have i'm an equity investor, so usually fully invested what do i do i have a lower beta than usual i have a higher dividend yield than usual, higher predictability of earnings, just a more conservative portfolio, even within tech. >> bob, we're seeing income inequality in a way in society play out in the markets, it seems to me, the better paid consumer is faring better in this environment than, you know, the working class, or even poor consumer how much does that reflect what investors should be investing in probably the prime luxury stock in tech is apple they build premium phones, premium computers

it's not a certainty that can be done but i believe there is a path to accomplishing that and as chair powell has said repeatedly, that would be his objective to try to establish that and i would consider that a good outcome as well. clearly, we are seeing a slowing in the economy and in demand that's appropriate and necessary tore transition from rapid growth and recovery from on a serious job shortfall to now a very strong labor market. we need to see a slowdown in growth. we are seeing that. there is a path by which we maintain a strong labor market like that. reporter: "wall street journal." could you say a little bit more how the inflation reduction act would impact inflation and how much do you believe that package would impact inflation and over what time frame? chair yellen: i don't have numerical estimates for you but i see that as an important contribution it will certainly help. and with respect to health care premiums, the funding that's provided is going to be important in the holding down health insurance costs for many americans where these are two important contributions that

but if you go back, it's clear that bernanke and chair powell have all been frustrated by this., it's less harmful, because the entire foc is singing the same song sheet. we have mary daly -- people are out there talking quite hawkish. no one is undercutting the message. it's less bad than it usually is. he would be better if they stop. this popped into my head. for those of you on radio, this is critical. dr. pozen looks like one of the show managers for the glastonbury. >> that's what you think? >> can i also clarify that you were thrown off twitter because you didn't do something wrong. you are hacked. >> i was hacked at >> just before people start making comments. >> i was hacked. twitter is not, despite my blue check, they're not getting back. >> of twitter is listening, >> thank you for giving me this time. >> congratulations for extending this important debate of who we talk about from 2% to 3%. >> to the point, they have to acknowledge that idea. next it is counterproductive. >> it is something for the future. >> the last thing on that, thank you for the backing on the m

. >> that is what fed chair powell gave us. >> you heard from every fed speaker at jackson hole. >> didn'teave any opportunity for a dub vision interpretation. >> promising to keep rates higher. >> powell did not suggest a soft landing. >> they will take more economic risk. alix: reacting to fed chair jay powell's speech on friday and how hawkish the fed impacts will be on markets. the hawks definitely landed. now what? kate moore, blackrock head of strategy for global allocation. it's an open ended question. we know the hawks are here, they made it clear. now what happens? kate: it's a good question. we will be watching market movement this week. a really important feature of friday's price action was that there was not a tremendous amount of volume. it is not like you had a lot of acting investors all of a sudden say, well, even if i was hoping the fed would give it a more dovish tone, this changes my entire thesis. not only was volume light on friday, but we saw significant amount of the volume from almost 40% in etf's rather than single stocks. that was the highest level since june. i

just how hawkish fed chair jay powell will be. there is expectation starting to come in that perhaps investors have been underpricing moves of where the fed will go from here. in terms of equity direction, futures low for japan and australia. for the dollar, a little mixed. the yen yen is like this. we could see the dollar retesting a july high by the end of the month. let's turn to this charge. we have more than 300 companies reporting in china this week. the question is whether they hit the profit indicated in the data. in terms of direction for stocks, we have seen outperformance for chinese stocks in the second quarter versus the world index now well and truly reversing into the third quarter. we are down around 8% for chinese stocks, 12% growth. gains are like 80% for world stocks over the past couple months. in terms of where we go from here, this means that officials in beijing will have a lot of trouble to revive investors' spirits. shery: let's bring in our global economics and policy editor kathleen hays, chief north age

charlie, did fed chair jay powell reignite the bear market and now we're seeing a nice turn-around today but what do you think about those comments and the direction? >> well, as we discussed, the federal reserve was embarrassed for having messed up the inflation situation, having denied there was inflation and that it was transitory and it obviously wasn't transitory so they are trying to catch up. they are worried that the market is not taking him seriously. so he went out of his way to say don't look for a pivot, we still have raising rates to do as we've also discussed, higher interest rates have different effects on different parts of the market they are much tougher on growth stocks than they are on value stocks, whose cash flows are much closer in so we're seeing that disparate impact on the market with value doing much better than growth. >> today. >> this year. >> but if we stop worrying about inflation and go into recession as a result of what the fed is doing, that's not good for value. >> no, you're absolutely right that's why i am not so enthusiastic about what the fed is do

. >> federal reserve chair jerome powell says the fed will continue to raise interest rates and hold them at a higher level until inflation is under control. his comments came during the annual jackson hole economic symposium in wyoming. this is about 10 minutes. >> thank you, peter and good morning everyone. esther, thank you for the opportunity to speak here today. at past jackson hole conferences i have discussed broad topics, such as the ever-changing structure of the economy and the challenges of conducting monetary policy under high-end certainty. today, my remarks will be shorter, my focus, narrower, and my message, more direct. the federal market committee overarching focus right now is to

let's start with the comments out of the fed chair powell on friday do they strike you as hawkish or did markets just misread the fed chair in the past particularly with the focus on the so-called fed pivot which wasn't the case. >> good morning. it is clearly very busy. powell put a cow among the pigeons. for whatever reason, markets wanted to believe in the fed pivot. they took some of the softer inflation reads we have seen and softer growth numbers and extrapolated from that that the fed would turn on its heels. that is different to what the fed has been telling us. what they said clearly is we need consistent signs inflation is back to target before we change our policy. they have not seen that yet. in my mind, it wasn't that big a surprise that powell stuck to the hawkish tone and keep rates until we're confident inflation is back at target. i wasn't surprised the market is gearing up for the fed pivot. as you said, we don't think this is happening any time soon >> i guess investors believe there would be some level in unemployment rate it has to get to where bring central bank

chair. the dow dropping more than 1,000 points. jerome powell saying more pain and rate hikes are ahead to bring down inflation and hold back a possible recession. rebecca jarvis breaking it down. >>> the battle of the drug giants over the covid vaccine. moderna suing pfizer, saying its rival copied its technology. how pfizer is responding tonight, and what this could mean for the future of the covid shot. >>> the dire warning from ukraine. the head of the country's nuclear agency telling abc news just how dangerously close the country's largest nuclear plant was to catastrophe and how it could happen again. >>> one louisiana mother's personal struggle for an abortion. doctor's recommending she terminate her nonviable pregnancy, but she says she was denied the procedure because of confusion around state law. the toll it's taking on her family and what she plans to do now. >>> all systems go. nasa's most powerful rocket prepares for a return to the moon more than 50 years in the making. gio benitez on the historic launch, signaling the dawn of a

i was happy to see how chair powell spoke at jackson hole.eople understand the commitment to get inflation back down. jonathan: the minneapolis fed president speaking to our podcast, a fantastic conversation. to hear the quiet bit out loud like that, we call that refreshing. just say it. lisa: i was going to say the same thing. is there a gauge to understand whether the market gets it? yes, neel kashkari said absolutely, it is the market just like you suspected. jonathan: i'm not endorsing it, but basically they been doing it for a long time and they should say the quiet bit out loud. tom: yeah, we saw at jackson hole one of the great things was the giant lobby, hanging out with all of these people. bill dudley's over there, no kashkari is over there. all of these presidents are uniquely different. this is an aerospace guide. this is not a phd economist hedging and all of that. he says what he wants. jonathan: he tells what he thinks. futures are back, up .9% on the s&p 500. i don't think he will give you the commentary on single day market m

. >>> plus, friday free fall, stocks plummeting after fed chair jerome powell promises, quote, forcefulnd rapid action to try and tame inflation. he says to expect more quick pain ahead. >>> also, cnn rides along with the so-called water police in california. their creative ways to keep homeowners from wasting water amid the devastating drought. >>> and we're going to introduce you to a very special 17-year-old, soaring into the record books after flying solo around the world. he'll join us live. "new day" starts right now. >>> hello, everyone. good morning. and a warm welcome to your "new day." it is saturday, august 27th. hello there boris. >> good morning, amara. great to be with you as always. up first, we start with donald trump renewing his call for a special master to review documents from the search of his mar-a-lago residence. trump filed a response last night to a judge's request for more information but he did not explain what local a special master would play, as for the affidavit, authorizing the search of his residence, he says, it raises more questions than answers. >> we

fed chair powell speaks tomorrow with traders listening for more information on whether it may cut traits reports on jobless claims and second quarter gdp. the senate judiciary committee, a hearing with former security tweet from twitter. he's accused twitter of falsely claiming it had solid security plans and had plans against hackers and spam accounts. he alleges twit made user growth a priority over reduction of spam. twitter has denied all the allegations. >>> gamestop plans to reward thousands of employees with stock and pay raises under new leadership. gamestop shifted last year to growing online sales is trying to do more to motivate and retain employees at its stores. gamestop will give raises to senior store staff. it's unclear how long employees need to work at the company to qualify for the bonuses. >> nice bonuses there. >> thanks, frank. >>> 4:42. saving our climate in crisis. still ahead on "today in the bay," the household item you can easily replace to help reduce haful waste. rmwe flex alert! flex alert! a power outage is looming. that's just alert, he's always getting wo

the sell-off began after fed chair jerome powell delivered a stark warning about the future of interest rates. here is cbs' nikki battiste. >> reporter: the pain on wall street was felt tonight after this blunt assessment from the fed chair, jerome powell. >> while higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. these are the unfortunate costs of reducing inflation. >> reporter: the dow jones industrial average dropped just over 1,000 points. the s&p 500 and nasdaq were even deeper in the red. powell said it will take some time before inflation is under control, and warned, the u.s. economy will suffer. the fed has already increased interest rates four times this year, as inflation drops slightly from its peak of 9.1% in june. still, costs for food, gas, and other necessities remain high. >> the only way to bring down inflation is to reduce demand, given the supply constraints. >> reporter: randall crossener is a former member of the federal reserve's board of governors. >> a

counting it down to the big speech in jackson hole, wyoming with chair powell on friday.ures 0.0 5% on the s&p 500. on the nasdaq 100, down by 0.06%. heels by almost out of basis point 3.0387%. we have talked about it many times, haven't we? euro-dollar 9943, negative, a little more than .15% -- .25%. tom: i want to point out brent crude above one hunt dollars per barrel and a quiet day -- $100 per barrel and a quiet day. jon: good catch. opec-plus on the saudis pushing back against the price they thought was too low. let's call it $94.50 on w -- 9450 on wti as well. tom: you will be even more confused about this argument and debate about forgiveness of student loans. annmarie hordern is an expert on this, has studied and studied it. what fascinates me is i don't to know what the president's view is. i read an article, i read another one, i have all of these people jockeying around and it seems to me nobody actually knows what the president of the united states believes in. what does he believe in? annmarie: he campaigned on getting rid of pretty much all of it for a numb