one potential benefit the federal reserve highlighted in ed's january cbc report was ac bdc could support the dominant international standing of the u.s. dollar and could help to ensure our currency is positioned to remain the world's reserve currency and primary medium of exchange internationally in this digital age. the report noted and i will quote, today the dollar is widely used across the globe because of the liquidity of the u.s. financial market. the size and openness of the u.s. economy and the international trust in united states institutions and the rule of law. it is important to consider the implications of a potential future state in which many foreign countries and currency unions may have introduced cbdc 's. end of the quote. some advocates have noted a foreign cbdc's become more widely used, the global power of our currency could decrease. if you look at the cbdc development in china and elsewhere, you think a u.s. cbdc is essential to preserve the role of the dollar? vice chair brainard: i think this is one of the important considerations in forming the work to better un

but they are starting at a very, very slow pace and what the danger with of the federal reserve right now is they still believe, they have this mistaken notion that you fight inflation by depressing the economy. when they talk about a soft soft landing, that is federal speak for can we slow the economy down, job creation and avoid a recession. that's what soft landing means. too often in the past, soft landing in terms of economic terms means crash landing, an iexample of full-blown recessin but it's a bogus idea the way that you fight inflation is by depressing the economy. the way the fed should do it is keep the dollars stable. they did this in the sort of way in the late 1980s and 90s. when alan greenspan was the head of the fed and he said at the time he was trying to loosely tied tome the commodity indexeso he had some sort of a frame of reference. in the late '90s he forgot that and we have the troubles that led to 2008 but in the past it's dealt with the dollar in more of a systemically correct way in the lead 80s and 1990s but now they seem back to the idea that you have to h

of the authority they need meaning federal reserve bank accounts and others have the authority they need to make these decisions and yet you go to the reserve banks and they say, oh, no, we are waiting for the board of governors. so there is a whipsaw effect and we get no answer. the black continues to exist -- the blackhole continues to exist in my frustration has long been at of willing point and continues to be at up -- be at a boiling point and continues to be at a boiling point. i want to use this opportunity to encourage you to address that. there is just no excuse. there is no excuse anymore, mr. chairman. thank you. >> the senator from maryland is recognized. >> thank you. i welcome chairman powell. you would agree if we can get the system into place, it will save millions of americans billions of dollars, would you not? >> yes, it would. >> i want to encourage you to move very quickly. we had an earlier hearing in may and this committee and aaron klein who spent a lot of time monitoring this system shared his concern we weren't moving fast enough to hit that date and fully i

so now the chair of the federal reserve, john powell has visited biden at the white house. why was that so remarkable and what came out about well, i mean, it is remarkable because the federal reserve is independent from the us government . and there was not just a meeting, as you mentioned earlier, between biden and power, but also the head of the treasury genet. yellen was present and see on the side was also the previous answer to jerome and paul. well, biden made it clear that the value of the independence of the federal reserve and that role paul and his colleagues can do whatever they feel rights to bring down inflation. so meaning to a certain degree, if the federal reserve wants to increase interest rates much further in the near future to bring down inflation that is find with the us president, even if that could mean higher interest rates, that the economy could cool down quite a bit and also by the way, could put pressure on and stock prices. but overall, it was very important to the president to make sure that the independence of the federal reserve is granted i

do you, federal reserve -- right now that this change reflects the views of the federal reserve as an influential member of the basil committee. apparently, it looks like this may very well provide some advantages to our european banks over u.s. banks based upon this reassessment of how they view risk within the eu community. >> my understanding of that is that it's really about supervisors being able to use discretion about transactions that go across national lines within the european union. doesn't apply at all here. and ultimately, capital rules that europeans apply are decided by europeans, not by us. >> very good. thank, you mister chairman. >> thank you senator, rounds senator warner from virginia is recognized. >> thank you, mister chairman and chairman powell it's good to see you again. thank you for your service to our country. i want to go a couple of different directions. first, i think some colleagues of all race this. truth is, we were grappling with ring on inflation is clearly a global phenomenon. i think even the cato institute group that doesn't always necessarily ag

we're two hours away hearing from the federal reserve has not done since the late '90s, raise federal funds 3/4 of a point. there are whispers in the "new york post" it could be a full percentage point. that might be a leap here. you know the drill, the fed responds to inflationary pressures. often time leaks information what might come and the fact that sew so many newspapers were seizing couple days ago that possibility the federal reserve could raise rates by as much as 3/4 of point. mid-them adjusting math. while unusual, would be better prepared. all in response to inflationary pressures that are building. the reason why you're seeing stocks up today not as much as they were earlier on, is this notion maybe just the throat of that, or the rising rate environment is having slowing effect right now. that, for the first time in five months we've seen retail sales slowing, actually reversing. and consumer confidence continues to tick downward here. so that is some of the latest kind of reminding to the fed, that certainly will have to be aggressive on inflation. maybe not as aggressi

that is not something th federal reserve can do anythin about. but it is an important issue >> mortgages are clearly, at least in the short-term, about to get more expensive. it seems to me that what would be helpful is if congress whic passes the down payment to equity act so first generation home buyers can afford their first home -- what effect you think interest rates increases might have on, let me put it another way, the federal reserve helps enforc the fair housing act and the equal credit opportunity and. what plans do you have to push to ensure that as interest rates increase, everyone still has access to a fair reasonable price or mortgage >> it doesn't change are ver important obligations and to the fair credit law. we - will continue to enforce those transparently and aggressively it is true that mortgage rates have gone up and that will slo down demand and there is som pain involved in that four people paying higher mortgag rates also some people will be priced out of the mortgage market, but ultimately that is what we need to happen

as you well know, the federal reserve board, or the federal reserve bank of boston, has partnered withit four cbdc related research through project hamilton. together, they have studied the technological aspects of a potential cbdc. this will be hard because i say cbdc all the time. cbdc -- with the first phase of the project released in 2022. that load -- distributed systems and block chain technology -- some have already existed. american -- we'll likely have a slower settlement times when compared to project hamilton or the cbdc 's being developed by other nations. what is your view? what is fed likely to do now and will your study be laid out to us? and to the senate? we are, of course, very much interested in any sensible, well studied work that will help us deal with this scary issue. at least to me, it is frightening. what will happen with the research? >> thank you. the work that we are doing now, it depends on a realtime payments platform. it is the first system that we are building that is cloud native. i think that we are learning a lot about the cyber security requirements,

that's the conundrum for the federal reserve. they're going to keep raising interest rates where you have to get the match whatever the inflation rate is. if you looked at an 8.6% inflation rate on the consumer level, you'd have to go higher with the rate hikes to come, you'll bring down the inflation rate to the point that you don't have to go that high. nevertheless, rates are going higher and consistently so meeting after meeting through the end of this year into next year. stephen gilfoyle joins us and wu -- susan low as well. stephen, let me ask you what you interpreted what the federal reserve was saying. we're going big starting out but we don't have to go big always. do you believe that? >> i don't really believe that. i found it kind of almost emboldening that he was willing to go at least a half a point the next couple meetings. they're taking it somewhat serious. the rally marketed because we got what we expected. i don't think we got more than that. i don't think this is time to invest. for the folks at home, i don't

one cause is on the monetary front the federal reserve the federal reserve even before the covid lockdowns was undermining the value of the dollar you saw it in rising commodity prices rise of gold prices. so there are a brewing trouble even before what happened during the lockdowns. obviously, they created a lot of to try to keep things from collapsing but unfortunately in 2021 the federal reserve even as the covid crisis was the severity was beginning to receive was still turning out churning out tons of money. they are buying $120 of bonds each month and they paid for that by creating money literally out of thin air now, they employed a gimmick which we explained in the book to try to make sure this money didn't flood the economy all at once but they created excess amount of money and they're not even going to stop this money creation the announced recently they're going to stop it but awfully awfully late in the game. so the federal reserve has been creating too much money undermining the integrity of the dollar and so you pay price for that in the dislocations in the economy. you also

first though, to the rate hike and the federal reserve. our opening question for you this morning, the headline in the washington post says that markets and households lose faith that the fed can handle inflation. in that article, they write that the federal reserve missteps in waiting too long to tackle the greatest run up in prices and for decades has shaken trust across markets. the american public that is up to the task of curbing inflation. with a piece about the rate hike and bloomberg yesterday, by jonathan levin, that headline on his piece as powell's late start on inflation traps fed in a dilemma. the central bank lacks tools to combat food and energy costs, which are driving price growth expectations. it can ride it out or risk a recession, they write. here's the piece by jonathan levin. it's, as federal reserve chair jerome powell is trapped in a dilemma that is, essentially, guaranteed to keep the central bank at the mercy of inflationary forces, not in control of them. the feds monetary policy tools are useless against a surgi

as far as other steps the federal reserve can throw, what can you expect? >> more increases in the so-called federal funds rate. when that interest rate goes up, tenure loans go up. they are going to push up rates across the board. it's a blunt instrument. that's the game plan. they have signaled they want to move aggressively to what they call neutrals. and take a gauge on whether inflation is slowing. host: as far as the timeline for inflation, what's the best way to think about these things? >> it's a several year thing for sure. when chairman powell rolled out the strategy in its speech, he said they could expect to get to their 2% target in three years. that's a fairly clear commitment by the fed chair. the key to keeping it to three years is that inflation expectation is not getting ingrained. people expected inflation to be in double digits. people price double digit increases in their products. if people start doing that, it's hard to slow down the inflation. in that era the fed pushed interest rates above 19% to slow the economy. host: you have pro

what can we expect in the future from the federal reserve? i know you don't have total control over inflation. but you have a lot of sticks. what do you use to bring this under control? mr. powell: financial conditions have tightened and have priced in a string of additional rate increases. that is appropriate. as you pointed out -- as senator tillis pointed out as well -- our policy rate is only 1.6%. the market is pricing in increases. financial conditions already have priced in additional rate increases. but we need to go ahead. i think the most recent inflation indicators of various kinds suggest to us that we need to accelerate -- we needed to accelerate the pace at which we get to a level that is neutral, that is close to the longer run neutral level. then, we can make an assessment of how much further and faster to go. that is what we are doing. i think you can see from the moves we are making now that we do understand the full scope of the problem, and we are using our tools to address it pretty vigorously now. sen. shelby: how import

what can we expect any future from the federal reserve? and and i know you don't havel control over inflation, but you have a lot of sticks they are and what will you use to bring this under control? >> thank you, senator. financial conditions of course have tightened and have priced in a string of additional rate increases, and that's appropriate. as you pointed out and as senator tillis pointed out as well, our policy rate is only at 1.6% but the market is pricing in increases. so financial conditions already reflect, have already priced in additional rate increases. when you do go ahead and have and i think the most recent inflation indicators of various kinds of us just to us that we need to accelerate, we need to accelerate the pace at which we get up to a level that is neutral, that is close to the longer run neutral level and then we can make an assessment of how much further and faster to go. and so that's what we are doing. i think you can see from the moves we are making now that we do understand the full scope of the problem and

the federal reserve steps in to cab rising inflation. ah. lauren taylor, this is al jazeera life in london, also coming up with us inflation being driven by the soaring cost of petrol. president joe biden sends a letter to all produces, demanding on says israel agreed to send more gas to the european union by an agent as a block tries to reduce its reliance on russian gas and thousands running in eastern democratic republic of congo, accusing the rondon government of supporting the m 23 revelry. hello, the u. s. federal reserve has raised interest rates by point 75 percent. the biggest increase in almost 3 decades is hope the move will curb soaring inflation and bring down consumer prices, which are at 40 year highs. a chair, the central bank, jerome pow, described the current economic climate as extraordinarily challenging and uncertain, and indicated further hikes are likely we anticipate that ongoing rate increases will be appropriate. the pace of those changes will continue to depend on the incoming data and the evolving outlook for

a third mandate on the federal reserve, a federal reserve that has done a poor job of managing price stability, the same price stability that hurts poor americans whether you are ma brac, hispanic or white. the same price stability that hurts whether you are black, hispanic or white. and only group of americans that might escape the sting of inflation are rich americans who happen to be black, rich americans who happen to be hispanic and rich americans who happen to be white. your race, you are beingess of crippl and to have the majority party say they are adding a third mandate to the federal reserve is ludicrous and doesn't address wealth in america between black families and wte families. we all know the history. we understand why there are black families who do not have the same size of net worth as white families but what you do not is saddle our economy with more regulation and more silly policies whi actually make our economy more efficient. how are black families in the future goi to actlly incrows their net worth if being ableo apply for loans is more expensive? how do black

the federal reserve steps in to try to curb rising inflation. this is al jazeera, live from london. also coming up, the cost of living source, driven by the rising price of petrol. joe biden sent a letter to oil companies demanding action. israel demands to send more gas to the european union via egypt. and thousands rally in eastern democratic republic of the congo . the u.s. federal reserve has raised interest rates by .75%. the biggest increase in almost three decades. the hope is that the move will curb soaring inflation and bring down consumer prices which are at 40 year highs. the chair of the central bank describe the current economic climate as extraordinarily challenging and uncertain and indicated further hikes are like. >> we anticipate that ongoing rate increases will be appropriate. the pace of those changes will continue to depend on the incoming data and evolving outlook for the economy. clearly today's 75 basis point increase is an unusually large one and i do not expect moves of this size to become -- be common. either a 50 basis point or a 75 basis point increase s

today the federal reserve and higher interest rates. marks are expecting the federal reserve to consider 3 point quarter rate hike ahead of conference at 2:30 p.m. eastern. we will know by 2:15 by the fed's move. right now markets going into the second day of the fed meeting, we are looking at stronger stock prices, dow industrials up 139, s&p higher dye 20 and nasdaq high -- by 78 after stocks ended mixed yesterday with s&p 500 slipping further into bear market territory. down 20% from the highs. dow industrials at the close yesterday, down 152, nasdaq up 19 and s&p lower by 14 at 4:00 o'clock on wall street. short-term interest rates over 3.4% this among with federal reserve's may meeting ending today. the yield at the ten-year at 3.389% down 9 basis points right now. meanwhile president biden scolding oil executives for cutting refining capacities blaming the oil companies in a new letter for higher consumer costs. oil prices this morning are pulling back down 1.27 on brent at 119.en 96, the price of crude oil at 117.57, the dow 1.1%

move to the federal reserve that could impact every american. standing by for a major decision that would be the biggest interest rate hike in nearly 30 years. ok, we are waiting for it. hello, i'm sandra smith in new, i don't. trace, great to have you. >> trace: you as well, i'm in for john roberts, and this is "america reports." fed decision will be a dramatic attempt to cool down the economy, increasing rates would make everything from a mortgage to a business loan to credit cards much more expensive. all this as president biden continues to deflect on inflation. refusing to take responsibility for the administration's role in skyrocketing prices. >> sandra: the u.s. has a higher inflation rate than many of the other major economies and the white house is promising a new "messaging on the economy strategy" with democrats ahead of the midterms. we'll dig in, but first. >> trace: peter doocy live at the white house. good afternoon. >> peter: good afternoon, trace and sandra. we heard the president suggesting he thinks the big problem here is wi

federal reserve has approved its largest single interest rate hike in almost 30 years. it's a signal that the central bank is serious about raining in the countries stubbornly high inflation. the 3 quarters of a percentage point increases the fed's largest since 191994 and higher than the half point hike into that. in recent weeks, economists, investors and investors began anticipating a more aggressive response after the latest data showed us, consumer prices grew at their highest pace in 40 years and may with costs for food, gas, an housing all searching. well, here's how it fed chairman drum pow, opened his remarks today. we at the fed understand the hardship that high inflation is causing we're strongly committed to bringing inflation back down and we're moving expeditiously to do so. we have both the tools we need and the result that it will take to restore price stability on behalf of american families and businesses. while for bar, let's bring in our correspondent johns corta at the new york stock exchange. hi there. yes. so the fed, they ultimately went for a bi

i think the federal reserve is t in: to here? i think the federal reserve is trying to show— here?here? i think the federal reserve is trying to show that it _ here? i think the federal reserve is trying to show that it is _ here? i think the federal reserve is trying to show that it is getting - trying to show that it is getting tough on inflation. you've got this big move on one hand much bigger than we were expecting last week. the reason for that is simply that the most recent inflation data shows the most recent inflation data shows the picture is worse than expected. historically speaking, the fed funds rate which is the key benchmark interest rate here in the united states, as a result of today's move stands at around one and a half to i.75%. that's stands at around one and a half to i.75%. that's not historically very high. but the size of the move, what that does is signal to investors, to americans that it is serious about trying to bring down prices and trying to bring down prices and trying to bring down prices and trying to slow down the economy. the fear in all of thi

federal reserve attacks inflation with its largest rate rise since 1994 and signals more to come. ah, though i'm terry johnston, you're watching al jazeera alive from don't also coming up. a man accused of involvement in the u. s. capital attack has seen the day before taking photos inside the building while touring the congressman israel teams up with egypt to supply more gas to europe. as a continent works to win itself off russian energy and the hungry super worms that could help us make a dent in the wells. plastic problems. ah, the u. s. federal reserve has made its most aggressive upward move on interest rates in almost 30 years. up 3 quarters of one percent is trying to get on top of surging inflation, which is being driven by factors seen increasingly as being out to the feds hands. more of the same is on the way we anticipate that ongoing rate increases will be appropriate. the pace of those changes will continue to depend on the incoming data and the evolving outlook for the economy. clearly, today's $75.00 basis point increase is an unusually large one. and i do not exp

and the federal reserve has already raised interest rates twice this year. in addition to today's expected increase, some economist warned that even more could come in the coming months. >> thank you. >>> 5:08. in the south bay neighborhood, the on edge after police confirm an explosive was found outside city councilman home. police swarmed the scene when someone spotted a device in the middle of the street in the willow glen neighborhood in san jose. this was found outside the home of san jose city council men and recent mayoral candidate dev davis the streets were blocked off yesterday for several hours and surrounding homes were evacuated. police say leading up to the election one neighbor found an explosive used as a firework attached to one of davis's campaign signs for mayor. she also received threatening text messages to her campaign. police found threats were not credible. >>> the first asian american to hold a u.s. cabinet position will be remembered in san jose today. this is a live look this morning at sjc but the airport name in honor of norman m

we're in this position now because the federal reserve eased through a boom it's not to say that theyhould continue that in any way but i'd be aware that just doing the opposite, creating a monetary policy that sets the federal reserve up to ease in the next recession is probably not the best way we're go tag be able to create sustained downward pressure on inflation so, there's real risk here the federal reserve is taking. thinking about how they're dealing with this narrative. as soon as they floated the ied of a 75-basis point rate hike for a meeting, many say we should do 75 every meeting i think that's the problem y with have yet to see the effects of the beginning of the monetary tightening. but that's what the fed has to do it has to look to the economy in 2023 if you see the leading pieces of the economy that are interest-rate sensitive, they're already showing weakness >> and i'll turn to you and give you props. you've been one of the most correctly hawkish people about inflationary pressures all of this year. you were one of the first to say not just that this should make th

the federal reserve plays a primary role in that.he fiscal policy and economic choices we make with numbers an important role as well. jonathan: the director of the national economic council on the moment we are in right now. futures on the s&p 500 are posited by 0.13%. yields are higher by about three basis points. no drama here, the euro dollar is $1.07 .14. some drama for next week, june 9 with the ecb decision around the corner. tom: part of it is commodity-based. there were fireworks yesterday and it's elevated from where we were a number of weeks ago. newcastle coal in australia is not often new highs but breaking higher again. jonathan: we were whipsawed by that report yesterday. they ultimately go into some kind of production deal. tom: i think it's noise and there is opec noise. i think we need team surveillance in vienna again step to me, we are sustaining nicely above $100 per barrel. jonathan: the average price of gas is the big factor. tom: ann- marie hordern joins us now. moments ago, and $800 billion infrastructure sto

there's been innumerable mistakes made by the federal reserve.f course, starting with inflation the transitory, there is a price spiral, belieber market continues to need support. that is going up and through march of this year. what we are not talking about is quantitative tightening and that is going to start this month, two to the tune of some $46 billion. the economy is not in a position to withstand that double-barreled approach, so i think there is a lot of potential, and this is something i set up going into this year, the biggest rift this year was federal reserve policy mistakes. i think i think there have been many. alix: how, then, do you manage the risk around the fed? catherine: well, what we've been telling our clients is to have a defensive position in defensive sectors and build the energy utility staples like health care. we have been calling the main scenario for this year and that seems to be unfolding. we were saying going forward is the diversified. because the correlation, we all know it doesn't work anymore, it can still be

many will wait for clarity from the federal reserve. the ftse 100 up by .6%. the boe tomorrow takes over from the central bank in decision-making of the ecb today. he did see the s&p after five days of losses, the nasdaq about it the gains. the features are pointing toward modest gains. those markets up .5%. 75 basis points is now the market expectation from the federal reserve. the biggest hike since 1994. some money going back into the u.s. treasury curve as we wait that decision from the federal reserve. the bloomberg, up .4 -- down .4%. brent 121. modest data out of china, expectations a policy response will combine -- will with the demand for oil. francine: there is a kind of backstop, yesterday we were talking about the transition mechanism and the spread. i think what markets are expecting is a bit more of an impact or clarity on how they will do that. will they do something that locks it in for a couple of years? in terms of sectors on the move, auto parts, banks on the move, up 2%. financial services gaining 1.6%. energy, a little down. they still had

all eyes on the federal reserve at the top of the hour a truly historical moment.t get to michael mckee who was in washington right now. a historic moment here. what could possibly go wrong in the market is pricing and 75 basis points? michael: if the market got a 50 basis point movement, it might have been exploited because it has been telegraphed for days. if you went higher, there would be a bit of a spike. if they did 75, it suggests with a dot plot they will move up the pace of rate increases going forward. people will basically have seen what the price should be. it will not be a big question. the question that might go wrong for the chairman is why you changed your views on how fasting should go? how concerned are you about the big inflation jump we saw last week? kriti: how does chairman powell navigate this and that he has to reassure the market the economy is not heading for recession while showing them the fed is taking this seriously? what kind of precedent does the set for future meetings? michael: that's a good question because forward guidance was th

the federal reserve is increasing interest rates. it's administering this medicine to the u.s.try to cool down the economy and what's tricky about that is it doesn't want to do it too much so much so that it would tip the economy into a deep downturn, or recession. you asked the white house, and here, the president's hands are kind of tied, and he's acknowledged this in speeches he's given in rect days, including one after the release of those jobs numbers. what they want to see is these prices start to slow and you know he's trying to do some things he and his administration have tried to do some things. tapping the strategic petroleum reserve, for one, and trying to iron out some of the problems with the supply chain, which has contributed to high inflation. but, his options are limited. he wants to convey to the american people that he hears their complaints. he hears the worries the likes of which we just heard a moment ago, and he and his administration are taking this seriously. but all the while, i think there's some acknowledgement that this is a difficult road that the

the nose are already there with the federal reserve and inflation, the unknowns are going to be whate potentially see could capitulate the market. kriti: people say maybe we are already there, maybe we are not. it is bifurcation in this market that is perhaps scary is for an equity investor. jess, we thank you. central-bank action this week, major repercussions, especially in the fx market. a touch on the fallout. >> we are not going to see active intervention in order to generate a stronger currency but we will see central banks taking into account the impact of policy on the currency and how they can generate that lower reported inflation. my look at the currency because that's not going to be the main tool. but you are axum -- absolutely right, central banks are going to be looking for more comfortable in recent years. kriti: we should talk about headlines, lagarde saying limit on bond spreads, the ecb taking the anti-fragmentation reproach. will christine lagarde and the ecb broadly be able to keep that? she's been vocal about saying it is not the ecb's job to close those but we

and the federal reserve has already raised interest rates twice this year. in addition to today's expected increase, some economists mourn more could come in the coming months. >> unemployment is still low and spending is high so there's some tiny glimmer of good news. we will see what happens with the fed. thank you. >>> the south bay neighborhood on edge after police confirming an explosive was found outside the home of a city councilman. police swarmed the scene when someone spotted the device in the middle of the street and the willow glen neighborhood in san jose it was found outside the home of san jose city council woman and recent mayoral candidate dev davis. the streets were blocked off yesterday for several hours surrounding homes were evacuated, as well. one neighbor said it was nerve- racking. >> i kinda got the chills because i was really concerned that, what would've happened if they were here? >> police are leading the investigation. they say leading up to the election, one neighbor found an explosive used as a firework attached to one of davi

the federal reserve has done something they haven't done in nearly 30 years. >>> shots were fired on a bart train. no one was hurt but it did rattle a lot. this unfolded just under the:00 this afternoon. there was a fight on the train and then a shot was fired. a police officer was on the train, saw the fight and recovered the gun that was used. there still looking for the three men accused in the attack. the station was shut down briefly but everything is back to normal now. >>> one step closer making vaccines available for the littlest americans. they are recommending authorizing vaccines for children as old as six months old. the votes are now set in motion and expected to be complete by tuesday. that would be a great relief for lot of parents. the decision will now go to the cdc for full approval. we will talk to our covid expert to break down the data. >>> crypto concerns tonight. the crypto currency exchange whizzes headquartered in san francisco laid off 1/5 of its workforce this week. several went on linkedin to talk about the shock. some learned about it through a personal e

and today the federal reserve going on the offensive, doing something it hasn't done in nearly 30 yearsit key interest rate by three-quarters of a point. bill it work? here's abc's chief business economics and technology correspondent rebecca jarvis. >> kind of just never really hungry in the mornings. usually a cup of coffee or tea holds me over. >> reporter: there's a moment in every young person's life when you feel like things are starting to come together. your job's going well. your home is in order. you're paying your bills. but for nata kondua, that moment has been painfully elusive. >> you try to be independent, but you're realizing you need a lot more help. your independence kind of has a different outlook than what you imagined it would be. >> reporter: at 26, he has a job and an apartment he shares with roommates. but still, the struggle to make ends meet has been a sealingly ne seemingly never-ending challenge. across the country, an economic conundrum is brewing. prices surging on just about everything, up 8.6% from a year ago. >> a healthy, well-functioning economy should

hardy, jo, castro has more now from the federal reserve in washington dc. this is a very aggressive move. as you were saying, this is the highest 11 time rate hike in 28 years in the us. and the goal here is to react to the alarming rate of inflation that we saw in a report just last week. now at 6.8 percent, a historic high in the us federal board chair reserve board chair jerome. how will also called these extraordinarily challenging and uncertain times for the us economy. now, he has quite the challenge ahead of him. he's trying to cool down this roaring hot economy, i've raising that interest rate to lower the amount of money that's available in the economy, but he has to do so on the board has to do so without triggering a recession. there are some fear of that happening possibly next year, even in the u. s. according to some economists, how will did not predict that. he said that he and among the boards, releasing the economic projection for the next 3 years in the u. s. finding that by 2024 around then is when the u. s. economy may fall down to a hea

so the san francisco federal reserve bank just put out research looking at how much inflation was driven by supply versus demand. what they found was that supply factors are responsible for more than hatch of the current level of inflation i don't need to tell you while prices increasing are hurting people across a heck of a lot of sectors gas prices have been driven up the last few months. so, chair powell, on gas prices, could you talk about some of the supply constraints that have pushed gas and energy prices higher recently? >> sure. two big things would be just, one, the price of oil is set glob globally and so we just take that price and the second piece of it is the spread that refiners earn. so if refinery is at capacity and spreads are high, then you have a high spread and we know the price of oil went up quite a bit, starting going up early in the year and has now come down a little bit in the last week or so those are the things that have contributed to the spike in gas prices we saw. we did see prices moving up but they really moved up quite sharply beginning in the early par

so by the end of the year, we expect the federal reserve rate.to be at about 3.25% to 3.5 and that will be marked up by the banks, which will affect us all with credit cards and home equity alliance and that sort of have to watch out for it. teddy out. yeah alright. georgia teddy from morgan, stanley. thank you. so much for your insight and letting us know. break this all down. kirk consumers, you know the people that are not really at first business, but that's talking to all right. thanks so much. i learned things, which is the goal. that's always the goal because you can sometimes get into the weeds, talking about businesses and numbers, but really, it just comes down to how much more money i'm going to spend. what can i spend less about? you and i were just talking about credit cards and if you carry debt you know that people do people do lots of people will be paying more interest. yeah just anything alright, focus on good things absolutely any time one of my favorite things to do every summer, the alameda county fair is back in a big way. n

by the way, the federal reserve is going to have their next meeting and next week wednesday. and it is more than likely that we will see another a 50 basis point, an increase. so if you look what happened the last time that we've seen a similar high inflation that was at the beginning of the eighty's, the federal reserve pick, then actually pumped an interest rates up all the way to 19 percent. so we won't see anything like that. now, but back then that actually did cause a recession, but as you mentioned, as i've mentioned, there's so many moving parts. so increasing interest rates, it will only was only going to be one to will a to help fight inflation. williams will be checking with you next week on that fed update. of course, thank you so much now to some of the other global business stories making those to day. lufthansa says it's canceling over 1000 flights in july because of staff shortages as the industry attempts to bounce back from the pandemic. the german airline said in a statement, it had seen a jump in demand as a crone of iris outbreak ease. but at that its inf

the woods there of durham, pow chairman of the federal reserve is commenting after. of course, the federal reserve raced raised interest rates by 0.75 percent highest rate hike in 28 years. spring in now. hi, be jo castro. she's life for us in washington d. c. it was also interesting that he clearly indicated that this is not the end of it. he said ongoing increases in that rate will be appropriate. right. hey, that's right. he said that a rate increase as aggressive as point 75 percent. as you said, he said that will be uncommon, but he also said at the next meeting that it might be a repeat of today, another point $75.00, right? height or point 5 percent rate hike. he also said, and these were his words. this is extraordinarily challenging. and uncertain times, those coming those words coming out of the mouth of the federal chair federal reserve chair certainly is not what americans and economists want to hear though powell, this try to strike a more optimistic tone as well as saying that data from recent months show there is a constricting economic activity in the

federal reserve sees the federal funds rate basically in line with st. louis federal reserve president bullard told me revising down, up to 3.4% ending this year. they're forecasting three 50 basis point hikes and one 25 basis-point hike with meetings that we have left here. next-year, the federal funds rate to 3.8%. that is one 50 basis-point hike next year and one more 50 basis point rate cut in 2024. so the headline here, 75 basis points like the market expected for the rate this time around during this meeting. ending projections, growth of this year has been downgraded. inflation has been upgraded. back to you guys. lauren: edward lawrence thank you very much. neil cavuto, host of "cavuto: coast to coast" joins us now. this is pretty telling. they took out household spending and fixed income spending remained strong. they took that out, come men terri that the economy is indeed slowing. neil your reaction? neil: i think they're seeing some of these, the numbers were even out in the last 24 to 48 hours. a slow down in retail sales. reversal of activi