chair powell: i do. there is a tightly focused role that we do have that i believe we have but i would agree with your statement. sen. scott: mr. chairman i have 20 seconds left that i will defer. >> thank you senator scott. senator menendez is not here yet. nice try. >> thank you mr. chairman. mr. chairman first of all, welcome, it is always good to have you in front of our committee. as you know both core and headline inflation have remain persistently elevated over the past 12 months real average hourly earnings fell by 1.8%. about 4% since president biden took office. to make ends meat, more americans are leading on credit cards. at the end of 2022, credit card debt hit a record of $930.6 billion and 18.5% spike from a year earlier. and an average balance rose to $5,805. over the past year the fed has acted aggressively to tame inflation and yet we are seeing price increases. as we have discussed several times i recognize that it has been an ongoing discussion, but i believe that this further proves

chair. powell: that would be great the economy wants more people then is working. it would be great for the country and then if they would go to the labor force. sen. britt: increasing capital requirements on financial institutions would have a chilling effect on the economy and the availability of financial services. last week i joined my colleagues in sending you a letter which expressed concerns. senator scott talked about earlier. is the federal reserve concerned about the impact to the economy of increasing capital requirements on financial institutions at the time when inflation remains high would cause an issue? chair. powell: it is a balance. we know the higher capital makes things safer and sounder. we know you will at the margin provide less capital toward capital. it is never exactly clear you are at the perfect equilibrium. it is a fair question to look at that. sen. britt: out of respect for the chairman, i would end by saying, i heard you say as you have said the federal reserve is no

chair powell: yes.i said in my testimony, we look at the data, and they suggest the ultimate level of interest rates is higher than what we expected. >> what are those economic factors? chair powell: going back to january, as i mentioned, the softer inflation readings of november and december were revised up. we got a very strong inflation report for january. we got an extraordinarily strong employment report, very strong consumer spending, strong manufacturing data, right across the board. as i pointed out, some of that may have been affected by warm january weather, but nonetheless all of it pointed in the same direction. >> let's move to regulation. in january, the federal reserve put out a policy statement noting that digital asset custodies -- custody is permissible activity. however, if a bank demonstrates to the fed that it can conduct that activity in a safe and sound manner, the accounting impact of the sec's bulletin precludes banks from offering additional asset custody service at any scale.

chair powell: isn't what? chair powell: -- rep. davidson: they controlled inter partes -- they control the third parties. chair powell: that is right. rep. davidson: a lot of people were concerned by your remarks yesterday by saying permission must -- permissionless digital assets provides risk to the financial system. chair powell: what we said in our guidance -- i think if you read through the digital guidance which i did getting ready for this hearing, it is careful to say we don't want regulation to oppose innovation and thus entrenched incumbents and things like that. it is pretty balanced language. it essentially goes to the question of protecting the safety and soundness of institutions. i think what we say -- i will paraphrase. what we say about permissionless is they have been vehicles for fraud. rep. davidson: .42%. if you follow your report on it, it, is a fraction ofis there ane dollar preeminence as the world's currency? is there a threat? i think that our status as the world reserve currency is not under a particularl

reporter: hi, chair powell. jean with market news. i want to ask with all of the events during the past two weeks, do you see a possibility of a soft landing in the u.s. economy? [laughter] chairman powell: you know, it's too early to say, really, whether -- whether these events have had much of an effect. it's hard to say it would help the possibility. it's too early to say whether there have been changes in that. you know, the question will be how long this period is sustained. the longer it's sustained, then the greater it will be the -- the likely declines in -- tightening in credit standards. credit availability. so we'll just have to see. i still do think, though, there's a pathway to that. i think the pathway still exists. and, you know, we're certainly trying to find it. reporter: hi, chair powell. nancy marshall, again, sir, with marketplace. just wondering how many financial institutions have been issued matters requiring attention or matters requiring immediate attention citations at this point? chairman powell: how many, i

i opposed chair powell for his initial nomination, that his renomination. i opposed him because of his views on regulation and what he was already doing to weekend regulation. i think he is failing in both jobs. as the oversight manager of the big banks, which is his job and also what he is doing with inflation. we have got to have tough regulators. that means we have got to have an independent investigation. powell needs to turn around the regulations that are in place right now. congress needs to step up and roll back the changes that were made in 2018 need to hold these cdl's accountable. that is how we have a secure banking system. >> you don't have confidence in jay powell. do you think the president should fire him? >> my views on jay powell are well-known at this point. he has had two jobs. one is to deal with monetary policy, one is to deal with regulation. he has failed at both. >> would you advise president biden to replace him? >> i don't think he should be chairman of the federal reserve. i said it as publicly as i know how to say it. i have sai

chair powell, when he was at treasury in 1991, the bank of new england collapsed and chair powell saidt treasury, coordinated with fdic, and with the fed, and they ensured every depositor then. why did they do it? they didn't want a regional run on the banks. here's what i'm hearing from people in my constituency. they're getting notes pull out of regional banks and all will be consolidated in the top four banks. we don't want that as a nation. some of them the payroll companies involved. some have 400,000 people they won't meet payroll if they don't have access to deposits. >> you wanted to hear from the treasury secretary a statement that said the u.s. government will guarantee all depositors? >> yes. just like they did with the bank of new england. now here's the thing. it's not going to cost taxpayers money because if you look at the financials of svb, they have the assets, they have the assets there. they don't have the liquidity. what happened is they had the long-term treasury bonds and then the fed hiked interest rates very, very fast, we can debate the wisdom of that, and they

thank you, chair powell. in the summary of economicking projects, the fomc sees the unemployment rate increasing to 4.5% this year. i'm wondering how you anticipate preventing from snowballing while using the admittedly blunt tools at your disposalsome. >> so that's just, that's an estimate of what will happen as demand if slows. and as conditions soften in the labor market. it's a highly uncertain estimate. i mean, there's really -- we have to bring inflation down to 2%. the costs of bringing it down, there are real costs to bringing it down to % -- 2%, but the costs of failing are much higher. if you read your history, as i'm sure you have, you can see that the. if the central bank doesn't get inflation if back in place, make sure that inflation expectations remain anchored, you can have a long series of years where inflation is high and volatile, and it's hard to invest cappal, it's hard for an economy to the perform well, and that's -- we're looking to avoid that and, you know, to get back to where we nee

we'll go to chair powell. >> good afternoon. before discussing today's meeting let me briefly address recent developments in the banking sector. in the past two weeks serious difficults at a small number of banks have emerged. history showed isolating banking problems if left unaddressed can undermine confidence in healthy banks and threaten the stability of the banking system as a whole to play its vital role supporting savings and credit needs of households and businesses of the that is why in response to these event the federal reserve working with the treasury department and the fdic took decisive actions to protect the u.s. economy an to strengthen public confidence in our banking system. these actions demonstrate that all depositors savings in the banking system are safe. with the support of the treasury the federal reserve board created the bank term funding program to insure that banks that hold safe and liquid assets can if needed borrow reserves against those assets at par. this program along with our long-standing dis

thank you, chair powell, for being with us. is the fed's commitment regarding esg not to force investment banks not to renege on responsibilities? >> we don't actually have policies in effect in that space. it's not an assignment we have >> you saw issuances by heads of investment banks, not to mention any names, that felt that was the case >> that the fed was asking them -- >> the s.e.c., fed you stated a couple minutes ago that you feel that some sort of esg -- you stated that banks want it -- >> no, that's different. completely different regulated financial institutions, that we regulate and supervise, they are subject -- >> so the fed -- you agree won't ask to renege on their responsibilities >> we don't regulate, the s.e.c. does >> okay. so the answer is no? >> what's the question again >> i'll move on. earlier some of my colleagues and the chair questioned the holistic review of the capital bank holdings, this holistic view which no one has seen according to what my sources, but there are published reports that will call

i would imagine chair powell might not want to makep in the next hour.riend again, and they wouldn't want the reaction that they're overtightening, insufficiently attentive to the financial stability risk. the way he characterizes the level of alarm might be something to look for. >> right. what would you be watching as the press conference begins, and as this shakes out? >> the market has been this little up-trend. we were at 3,800e1 on the s&p lt week, we had ourok little comeback, now it's about the equal footing we're on now. i think he may be pressed about the dot plot. there are some inconsistencies. unemployment might be a little bit lower, it's much higher than it is right now. and still where we might be hiking, inflation is coming in a little hotter than we thought. but i think this is the way you get thatw3 muddled message near the end, orxd transition point,f a cycle that is transitioning to something else. >> does that feel like we're coming close to tend of the >> yes. i think the sense of what the fed does is get ratesñr up as ft as possib

kriti: michael mckee walking us through the highlights of that two-day testimony from chair powell. investors looking for clues on the right path. let's take a listen on what exactly jay powell had to say. chair powell: we have not made any decision on the march meeting. we will not do that until we see the additional data. larger point is we are not on a preset path and will be guided by the incoming data and the involving outlook. if the totality of the data were to indicate that faster tightening ispared to increase the rate of hikes. kriti: joining us now for more perspective is marilyn watson at blackrock. a pleasure to have you on the show. we are looking at a 71% probability of 50 in march. what do you make of it? >> what we have seen from chair powell is that he was crystal clear that the door is open to potentially higher step ups than the markets were anticipating. also they could raise rates higher for longer. given the strong data we have seen this year, whether it is the pce deflator, inflation data, very strong labor market, then i think chair powell has just reiterated

we will wait to hear from chair powell. rry summers pointing out that they have not been this far behind the curve in over a year. for jay powell, he will be speaking to the senate on tuesday, then on wednesday he will be speaking to the house, the financial services and banking committees in both cases. presumably this is the big question, will he echo his colleagues who have signaled higher for longer? will he signal openness to 50 basis points? we will probably get two big reports this week, jobs and inflation, and that could tip the balance. finally, remember the meeting the head of the rba took in front of parliament a couple weeks ago, don't think jay powell's pushing from both sides of congress is going to be that strong, but progressives like senator ward from massachusetts, are expected to push back hard, senator sherrod brown from ohio -- keep hiking rates and hurt the labor market, can you do this? and republicans, inflation is such a problem, because of course the problem is for the white house. these testimonies

chairman. >> senator tester of montana is recognized. >> chair powell, thank you for being here today thank you for serving in this critical role at this critical time i have talked many times in this committee, and i especially right now cannot overstate the importance of the fed's independence i said it in the previous administration i say it now we cannot be playing politics with our economy and that is a fact from a climate standpoint, i will just tell you, it's slirly artificial right now, because if you look at the hundreds of billions that this country puts out in disaster and climate instability, we ought to be asking ourselves, is that sustainable? quite frankly t has to be done and i don't think it's sustainable. we have to start looking for solutions on the climate side sooner rather than later the reserve has a tough job. i really appreciate how you've done it. reasonable, working together, making hard decisions for the good of the economy. we have to get this right. so, the question is, how much is inflation decreased since its peak >> it depends on the measure, but meani

chair powell or janet yellen? sonia: do not know they were that out of sync of each other.hat a palace that is the systemic risk exception -- what chair powell said the systemic risk will be considered in future episodes. it make a deposit guaranteeing -- i think i would've helped bank stocks relative to what we're seeing today. kriti: let's put into your point the macro picture. the idea here that euros are actually not as volatile as they were pre-fomc. the two year yield that has stayed below 4%, is that something that is in the rearview mirror when it comes to the ripple effects for the equity market in terms of valuations? sonia: the date is going to be important. we are putting the data on the back burner now. implement for instance an inflation which could be based more backwards looking but i do think of this price action we are seeing today could possibly reverse. kriti: in the strong data is also the risk of quantitative tightening, quantitative easing. going into the fomc meeting there was a cohort on wall street that said what the fed is doing in terms of backst

stay there longer than previously thought we will stay the course until the job is done, said chair powell, stocks moving lower just as soon as powell's testimony was released you can see an interday of the s&p 500 there. we've just come a limb bit off the lows but nonetheless trending in that direction from the get-go today bond yields going the opposite direction moving higher as are rate expectations. i'll show you what the two year, the ten year pushing 5%. the probability of a 50% basis point hike in march increasing slightly but the real story perhaps is the probability of 50 in may was 75% just a short time ago. terminal rate in the 5.5 range to discuss and debate joining me today stephanie link, jim lebenthal, kari firestone and steve liesman is with us, too, as he has been watching from the get-go steph, the risk always was even higher, even faster, and for even longer. kind of what he said today is the possibility. >> and we'll be data dependent, right? we have a lot of data that's coming this week with jobs, cpi, ppi, retail sales next week will be very important. but, honestly,

number on your screen, or visit coventrydirect.com. . >>> big moves on the bond market with fed chair powell'stracking all the action for us. hey, rick. >> hi, tyler demand was pretty good, above average, you can clearly see the 10:00 eastern powell pop and something important happened we all know two-year note yields are up almost 11 basis points, three's are up almost nine the reason is they could get even more momentum, finally taking out the fall close. that's the only part of the curve. now it's rolling down. three years have done it high yield close from october was 465. well above that now. and if you open the chart up, you can see it's joining the two-year now in the highest closes we've seen since 2007 and if we look at the next maturity, the five-year, i want you to notice how it is not above its fall high yield close, which was at 4445. briefly traded minus 103, the most inverted it's been since 1981 on a closing basis as you see on the chart, and finally, the dollar index, it's one of the few areas that likes the higher interest rates and the fed guidance it's going to close, it lo

we will get your sense on what you think is your level of trust in chair powell, his management of the federal reserve and impact on the economy. if you approve of the way and have confidence in federal reserve jerome powell -- federal reserve chair jerome powell, give us a call at (202) 748-8000 . if you do not agree with his management and have no confidence, (202) 748-8001 the number to call. you can text us at (202) 748-8003. you can post on facebook and on twitter. that third meeting you can see at our c-span website. from the wall street journal this morning if you go to its website, a piece by tim rose who covers the federal reserve and economics overall wants to watch from that fed meeting. he joins us now on washington journal. thank you for your time. one of the things you write this morning is overall as chair of -- as chair powell takes the microphone, he needs to explain any rates. can you expand this process. guest: raising interest rates for the fed has been straightforward for the fed over the last year. the economy is too hot, inflation is too high. in the way the fed

it's like chair powell opened the door, but it is up to the data to decide. if we see a significant upward surprise or something stronger in terms of inflation, i think it's going to be a very difficult situation for chair powell to step back. that's why think it's very important to listen to the second day of testimony. the prepared remarks are almost always identical. but we will see if chair powell wants to refine the message tomorrow. does he want to reinforce? does he want to walk back? we will have to listen for the q&a. >> you say it's up to the data but that gets to the question of why his the data been so strong? to you is it because the fed hasn't done enough or because there are structural elements within the data that is feeding through or is it the transmission lag and affect that we haven't waited for? here in australia, hearing the rba talk about potentially getting to a pause because they are worried we will see the impact once the transmission lag carries a -- catches up. >> it's all of the above. there is an element of seasonality and warm w

before we get there, marianne, we had to talk about what the bond market is pricing versus what chair powell is saying. i see 100 basis points of cuts priced in by year end, a full percentage point. you compare that to what we heard from powell who said the cuts are not base case, who wins here? is it the bond market or powell? >> that is the question i think everybody is asking themselves and i have to say i think the bond market will eventually wind up being right. i see the fed wanting to continue to raise rates to battle inflation but if the crisis in the banking system continues, they will have to continue to provide liquidity to the banking system and it is still determined whether or not there will be a rate cut but the market is clearly going to safety, investors want safety, and i think the backend of the yield curve is saying now the risk of an inflation is occurring. historically, when you have had the inversion of the yield curve and then it begins to steepen, you are close to actually having a recession. i think there is a lot of messages that we are starting to see come out of

chair and welcome chairman powell.ank you independent of the desires that circulate in this building. independent monetary policies are the bedrock of a solid economy. i want to reflect for a moment on another bed rock of the economy the full faith and credit of the united states government which is now being put at risk by the republican majority. my republican friends know how dangerous the games are they are playing. they know the salary payments to soldiers are at risk and they know that your responsibility will raise mortgage rates for the new homebuyers but they say this is the only time we focus on spending and the debt which of course is a pernicious form of baloney. the time to focus on the deficit is when you are voting for the spending and the tax cuts that create the deficit. when you're voting for the trump tax cuts that he said would add to $2 billion to the national debt. consider for a moment whether you want to do that. not when the good name of the united states is hanging in the balance. stuff gets a

chair powell telling the senate they may have to high more quickly, too the historic reaction to the bond market and sell-off. >>> plus, a shot in the arm for obesity drug, ww ipging a deal to prescribe weight loss drugs some say this is a watershed moment others fear we are jumping on the fat loss bandwagon too fast. we'll dig in. >>> later, would you rather with one bitcoin defined the crypto slump and the airlines in the down market. this is "fast. we have a full house here tonight. we start off with a major reckoning for the market the fed chair warnings rates may go higher as the fight against inflation is the no over the dow dropping nearly 6 # 0 points snapping a four-day win streak and falling back into negative territory for the year. the s&p and nasdaq following suit the real move came in the rates market the yield on the two-year treasury topping 5% for the first time since july 2007 it spread with a ten-year now more than 100 basis points that is the widest it has been since 1981 so with today's testimony the straw that broke the bear market rally's back guy. >> i don't k

welcome, chair powell. thank you for doing your duty and seeming to enjoy it when you come to our committee. to enjoy it. . welcome, cher powell. thank you for doing your duty in seeming to enjoy it when you come to our committee. thank you. seeming to enjoy. today, we examine the feds actions to combat inflation whether these actions are actually working. including how those actions affect american jobs and their paychecks. prices are still too high across many parts of the economy. we know that who feels the most on the cost of rent and groceries go up. it's not the economic fondants and politicians who lecture us about discipline and stability. it's not the corporate executives who pretend they're making tough choices about prices while reporting record profits increases quarter after quarter in doing more and more stock buybacks. it's the people working hourly jobs to make ends meet. its seniors on fixed income and social security. it's everyone who gets our income from a paycheck each month, not an inve

chair powell, you are gambling with people's lives.here is a pile of data showing the price gouging and supply chain kinks and the war in ukraine are driving up prices. you claim to the idea that there is only one solution, lay off millions of workers. we need a fed that will fight for families. if you are not going to lead that charge, we need someone at the fed who will. >> senator vance of ohio. >> thank you, mister chairman. chairman powell, thank you so much for being here. i have a question that is slightly far field. how often do you get to talk to the federal reserve chairman, swim as well accent. to give some context, my family comes from appalachia, particularly my grandparents who grew up in southeastern kentucky, coal country, and the move to southern ohio, right now the honor of representing all of ohio. one of the things you hear a lot when you study the regional history of appalachia's it is often described as possessing a resource curse. right? there's a lot of coal in central appalachia that enables a certain amount of

>> federal reserve chair jerome powell it will be before the house financial services committee wednesday to scs the federal reserve's semi annual policy reportndhe state of the u.s. economy. you can tcthe hearing starting at 10:00 a.m. eastern on our free c-span now video at our online at c-span.org. ♪ >> c-span is your unfiltered view of government. we are funded by these television companies and more, including sparklight. >> the greatest town on earth is the place you call home. at parklet, it is our home too. and right now we are all facing our greatest challenge. that is why spark light is working around the clock to keep you connected. we are doing our part, so it is easier for you to do yours. >> sparklight supports c-span as a public servi along with his other television providers, giving you a front-row seat to democracy. >> on the senate floor, majority leader chuck schumer criticized fox news host tucker carlson for airing previously unseen video footage of the january 6 attack on the u.s. capitol. he also expressed disappointment in house speaker kevin mccarthy forgiven him a

. >> hi.ñr >> e1lphi, chair powell, kyle campbelle1 with ameri#w■ banker. couple of questions about the balance sheet. first of all,x#rrzok curious at what point the financial supports that the fed is extending through the discount window and its enhanced lending facility might be atÑi odds wit balance sheet and i'm curious e- what yourth$u$oughtçiçó arexl■1- not just ther reserves but theÑi distributionf them throughout the banking system and atÑyó what point you might be concerned about it being scarce for certain çóbank >> so when people think of qelp andfá qt about different things] so recentr that hasÑai increased h:■ size our balance sheet but the intend is very different from when we expand our balance sheet through purchases of longerq term securities.v large-scale purchases are really meant to alter the position by pushing down -- pushing up the price and down the rates, longer term rates through demand andht channels we understand fairly well. theÑi expansion is temporary lending took banks to meet thos special liquidity demands created by."■ the

chair powell would do well to remind folks that their stance already is they are willing and prepared to adjust any aspect of balance sheet runoff depending on economic and balance sheet developments and we think that is what he will stress today in the q&a. what does that mean for something like the housing market or labor market? what is the risk if the banking story is an isolated risk. ellen: the risk we have to watch for is the labor hoarding story. that is a narrative we started uncovering last year that remains very strong among companies. do we hang onto that? so, rather than laying off, compact -- companies continue to control labor cost by reducing hiring. that's how you get a very gradual slowdown in job gains rather than an all-out fast turn into net negative job losses here. as long as the labor hoarding story remains strong, and we do not see a sustained rise in jobless claims, that will make it very difficult to get to the point of a recession that starts early enough for the fed to do multiple cuts this year. when we think about how the underlying data will play out he

not only presided over the fed and it's important while we examine what went wrong about that chair powelland let michael bar, the new vice chair not there during all of this, let him conduct an independent investigation. thus the only way we can have confidence in it. >> michael bar is conducting an independent investigation. senator warren want a criminal investigation into what went wrong and she wants our repeal of the trump era rollbacks on the banks but there are other lawmakers, both sides of the aisle calling for outside independent investigation into the collapse in addition to what michael bar is doing. stuart: socialist government i think they didn't hate. that's the way it is. thanks, i think you are done. >> conflict of interest here is the ceo of svb was on the board of the san francisco fed supposed to be regulating his bag. stuart: that's worth looking at. coming up, sports book now live in massachusetts just in time for march madness. a good friend of the show, dave, he will be here. we have operational control of the border. the border chief says no, we don't. roll tape.

chair powell having fighting words for crypto.d: those fighting words were the main driver when it came to single stock names. although, some individual stocks, rivian down 14.5%. the company plans to offer $1.3 billion in green convertible notes that could have a diluted effect on outstanding shares. tesla under pressure, down 3% as elon musk talked about twitter debt burden. amazon down .2%. alphabet down 1.3%. goldman-s top tech picks for 2023, that didn't do much to support the stock after powell made those claims. meta had been markedly higher after my colleagues and i reported that more layoffs are coming in the thousands this week. post powell, it completely fell away. trading down .2%. that is the effect chairman powell is having on this market. we go back to basics, we haven't talked about this in a while, but the prospect of higher rates, discounting the value of future profits for the tech sector. in the new price in the recession risk which is back on the table. caroline: this is the conundrum the federal reserve has t

. -- >> it is remarkable chair powell sees this 50 basis point hike tuesday and 24 hours later the financial stress began -- >> it makes you worry about the tip of the iceberg. katie: joining us now is tony rodriguez, survived or a sop, and michael cup top boasts -- i think it is safe to say that powell did not see this coming when he spoke to congress last week so the question becomes as we head into next week's fed in the banking said there what that says about financial instability at the moment, is that enough to knock the fed off course? >> possibly but we still think at least for this meeting they stay the course and deliver 25 basis point rate hike. but it is a tough call because financial stability is part of their mandate. the fed has not pre-committed to a 25 basis point rate hike like the ecb has, so for the most part, i think they might try to pull off what president lagarde did yesterday, which is deliver a height but keep their options over so i dovish hike if you will so markets are not expecting future rate hikes unless there is more stability in the financial system. katie:

the first is to remind chair powell he has a dual mandate.s responsible for dealing with inflation and he is also responsible for employment and what chair powell is trying to do and he has said firly explicitly is that they are trying to in effect slow down the economy so that this is by the fed's own estimate, 2 million people will lose their jobs, and i believe that is not what the chair of the federal reserve should be doing. i want to make a second point on inflation as well, though. there are other drivers of the cost increase. for example, price gouging and supply chain kinks and the war in ukraine. raising interest rates doesn't do anything to solve those problems. all it does, at least, by the way the chair wants to do this is put millions of people out of work. i opposed chair powell for his initial nomination, but his re-nomination. i opposed him because of his views on regulation and what he was doing to weaken regulation, but i think he's failing in both jobs, both as oversight manager of these big banks which is his job and also

. >> last fall you had written a letter to the fed chair jay powell, you and a lot of other lawmakersncerned about the rapid rise of interest rates at the time you didn't mention the impact on potentially banking investments, and perhaps there's no reason you should have, and you were more concerned about his intended goal of raising the rates. considering another rate hike is on the table, do you think it would send a bad message to the economy that maybe our banks are unstable if he doesn't keep on this path or do you think he should keep going if that is his intent and raise a quarter-point cut. >> no, i do not think he should raise rates, >> no, i do not think he should raise rates, but look, i want full disclosure here i've been in the camp for a long time that these extraordinary rate increases that he has taken on these extreme rate increases are on. these extreme rate increases are something that he should not be doing. why? and the reason for that is twofold. the first is to remind chair something that he should not be doing.tion and he why? and the reason for that is twofold

hurting so i think that the fed need to acknowledge the role of congress in this and i know that chair powelldoing that, unlike former fed chairs, certainly volcker was willing to say that balancing the budget was imperative to getting inflation under control. i don't hear that coming from the fed. and so i guess we have a situation where to show respect for the fed's independence, congress doesn't criticize the fed. it was pretty mild yesterday, i expect it will be again today and in return chair powell does not criticize congress for overspending or weigh in on fiscal matters >> an interesting take you're saying not only are they not helping the supply, but since the cost of doing business goes up, they can actually hurt supply even more than it's being affected right now and raise the cost of doing business and that's not helping with their efforts. it's almost hurting their efforts. but, again, in terms of what caused the inflation, people argue about it you think it the fiscal spending and aggregate demand being raised to address that, what is in the tool box right now, other than what t

i expect for chair powell to be discussing with the press on mas justified in one more rate hike. do you think that's going to happen? i mean, i can't see them doing this in may but maybe given things have stabilized since the bank scare they feel they can but it still seems a bit risky. >> it does, neil, and while we haven't heard from chair powell himself, we have heard from other fed leaders throughout the week that inflation remains uncomfortably high. the fed has this kind of abstract inflation metric that excludes electricity, gas, and shelter, which why would anybody follow that, but they do, and as far as this mornings data goes, that's still up 4.6% year-over-year. that's more than twice the fed's 2% target, so i think right now, chair powell would say he's more than justified, especially given the fact that markets are as calm as they are, and not warning that borrowing costs are overly high, so i think he feels like he's got more of a license to hike going forward, and that's the last thing we were talking about what, two weeks ago. neil: you know, let me ask you about

but congress handed chair powell the flamethrower that he aimed at the banking rules.himself, ail quote then i'll quit, when he announced that he was weakening regulations for the banks like s.v.b., chair powell said, i quote, in the rules before us we are applying the discretion granted to us by the economic growth regulatory relief and consumer protection act. translation, congress opened the door to weaker regulations and i am walts through it. i'm sorry, mr. chair. >> my colleague has great experience in this and i apologize for having to cut people off. senator johnson's next. >> thank you, mr. chairman. welcome secretary yellen. i just want to start -- do you know how much a dollar you held at the start of the biden administration january, 2021 is worth today? secretary yellen: with inflation it's declined in its purchasing power. senator johnson: 87 cents. inflation is the number one nick comik problem. do you know what the inflation rate was at the start of the biden administration in january, 2021? secretary yellen: it was substantially -- senator johnson: 1.4

back over to you >> thank you very much fed chair powell is set to testify before the senate bankingmittee meeting tomorrow morning should we expect any clues for the fed's next move and steve liesman has more what are you expecting, steve? >> it is interesting because fed chair powell is sitting for two testimonies this week and he'll have to tell congress that a year into what is the most aggressive rate hike cycle in a generation the fed isn't still confidently on the road back to 2% inflation target. i think powell is going to suggest the possibility of higher rates than the 513 consensus of the fomc in the economic projections and he'll suggest rates will remain at peak level for some time and indicate some, but again, not sufficient progress. the big problem for powell, it is not showing headed to target any time soon and not according to the most recent data and high frequency writing over the weekend, quote, a part from the slump in the most interesting housing sector and monetary policy has not yet had the desired effect on prices and the labor market or the economy. powell

what can we expect from fed chair powell this week? kathleen: i think of mary daly as a centrist, she is not super hawkish and not super dovish. so when we hear a voice like this ahead of jay powell's important biannual testimony to congress, we listen to it carefully and we wonder, is this paving the way for jay powell to echo these words that others have spoken on the fomc? it is clear there is more work to do. obviously, hiking rates. in order to put this episode of high inflation find us, more policy tightening and of course, hiking rates for a longer period of time will be necessary. most of them have said rates may have to stay wherever they peak well into 2024. she was talking about the fact that there is all of this uncertainty. inflation is high in goods, housing and other services. how much momentum there is for disinflation just is not clear. larry summers talking to bloomberg television as he does every friday on "wall street week" saying the fed should open the door to the 50 point basis rate hike -- 50-basis-point rate hik

. >> we are going to get to chair powell's day two of testimony in just a minute as well as the breakingews on the beige book, my most favoritely titled book of all time. but before we get to that we're going to go to two people who are neglect but beige. dom chu and kristina partsinevelos. dom. >> blue and it looks like yellow over there anyway, let's talk about shares of brown-forman which are down just about 6% now, 5% off session lows one of the worst performers if not the worst in the s&p 500 today. this is the beverage alcohol company. brands like jack daniel's whiskey, woodford reserve bourbon, finlandi vodka, my wife's favorite sonoma con trera wines among others brown-forman was helped by premium brands of bourne bonne and tequila. on the other hand hurt by supply chain issues a big down day for brown-forman. campbell soup higher by over a percent. this is the packaged food company behind namesake soup, pepperidge farm sacks and v-8 juices helped along by more demand for its ready to eat meals campbell also by the way raise the its full-year profit and revenue forecast those sha

but chair powell continues to warn the market that we still don't know what the ripple effects from theecent banking crisis will be and the inflation fight is far from over. >>> plus, a new buy-back blame game in washington. the ceo of fáe1norfolk southern the hill.fá >>> and later, lulu bucking the trend on a downward dog of a day. fine print of carvana's new dead offering and moderna on the defensive on capitol hill.e1 i'm melissa lee.t,opwe have a f desk. and we start off with thev markets post-fed selloff.w3fá nasdaq rising initially, but gave back those gains and more and jerome powell suggested the fight against inflation isn't over. take a look at some of these swings in big tech. microsoft, meta, apple, allxd reversing course sharply as powell spoke. so, whatfá do you make of the markets moves today? it feelse1 like we didn't get anything that we wanted, i mean, the banking crisis effects are tbd, we know that credit standards are going to be tighter, lending is going to be. they're notiing to be done raising, necessarily, so -- nothing to like here. >> i'm going toe1 go out on

fed chair jerome powell rocking wall street. pivot many will see as the wrong direction. >>> caught off guard stocks seeing their worst day in weeks as treasuries do something for the first time in nearly four decades, flashing warning signs of a coming recession. >>> and goldman sachs, blackrock, and more, now weighing the odds of a terminal weight here near 6%. >>> plus the tiktok ban bill