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

we need to end the federal reserve.ederal reserve has usurped its power and the power of the american people and our elected representatives. no. they do not have the consent of the american people, we will not comply, and it must be ended. from the founding of this nation up to the founding of the federal reserve, in those years, hamilton versus apperson, abraham lincoln, henry clay. teddy roosevelt. william james brian. the whole concept, the politics of money, it was actively debated what the currency was, who controlled the currency, what was the central bank, who controlled the central bank? after the federal reserve was formed, we lost that. that is going to be one of the, if not v most major issue -- if not v most major issue that we have. we need to end the federal reserve. and the central bank will be owned by one group and you know who that group is, the american people. not third tier bankers from fifth tier firms like powell. the american people will control their own bank in their own currency. we are at wa

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

. >> one cause is on the monetary front the federal reserve for the federal reserve even before the covid lockdowns was undermining the value of the dollar pretty sought and rising commodity prices rising gold prices. their brewing trouble even before what happened. during the lockdowns in 2020 on the federal reserve the covid crisis the severity would reseed it was still churning out tons of money. and they paid for that by creating money literally out of thin air. they employed a gimmick which we explain in the book to try to make sure this money did not flood the economy all at once. they create excess amount of money and they are not even going to stop this money creation. they announced recently there would you stop it. awfully late in the game. raiding too much money undermine the integrity of the dollar. and so you pay a price for that and the location and the economy pretty also combine that we have not still fully recovered from the lockdown pretty look at china recently those severe ing think are unnecessary lockdowns massive lockdowns and shanghai beijing and other major cities

the unemployment rate is forecasted to rise and inflation according to the federal reserve atlanta federal have peaked as of yet. neil? neil: edward on the same page, in other words, with the rate hikes that we seen, some differ over the pace of the hikes even the size of those hikes, what did you glean? reporter: yeah, everybody that i have talked with said 50 or 75. if you listen to the fed chairman's speech today and another part of that speech saying that there maybe, it maybe appropriate for an unusually-large increase, so that could signify the shift maybe to the 75 basis points regardless of the september meeting, we're going to see a quick up-tick of the federal funds rate and interest rates. i've been told since covering the fed from a long time ago, i've been told that 4% is really where the federal reserve needs the federal funds rate to handle and manage slowdowns in the economy. this is generally, historically, so they could go up and down. it seems they're quickly headed towards that 4% mark. we'll have to see what happens. neil: great job out there, very much appreciated my

larry lindsey says the same thing in his lindsay group, back in 2017, the federal reserve bank of new york estimate that had policy changes for student debt over the previous decade had allowed tuitions to rise by 60%. >> this makes all that worse and it also sends a signal that you don't have to play the game fairly. if you just wait long enough there's going to be somebody that you get into office that's going to tilt the field in your direction. that's why americans are cynical. folks talk about the swamp. they're not just talking about big corporations but sweet heart deals for con stitch june seizure disorders groups of whoever happens to be in office. constituency groups of whoever is in office. the government should be fair and not tilting one way or the other. but when they dorks they're not only unfair but they do everything you described. they put a lot of other bad things in the way of our educational system, in the way of inflation, and the way of the costly college. maria: what's the point in is this to try and buy votes of college kids? >> i think it's clearly trying to

he says, the federal reserve would use the tools at its disposal and that higher interest rates would continue for some time. major us share indexes fell more than 3 percent after his comments. mike, hannah has more from washington dc, thanking leaders from around the world, gathered in wyoming. this is the 1st time since 2019 that had been an in person meeting previous years have been virtual because of the pandemic. and for the 1st time, the chair of the federal reserve, jerome power, spoke to the public at large from the lodge where the meeting is being held. his address has not been televised or put online before this time. it was, which is an indication of how anxiously the public as a whole is watching what the fed is going to be doing. some had been hoping that the fed would back off its aggressive increase of at the base rate, given the fact that inflation had e slightly over the last month. but no, the federal reserve chairman made very clear that he was thinking exactly the opposite is message was stark. his message was clear that interest rates will continue to rise in the

and the reason why apprise has came down are not that it is doris, not to doing also federal reserve. it's more, as i mentioned, for example, that gasoline prices have fallen a quite a bit, but at least a wall street now expects that the federal reserve will become a bit less aggressive saw until today. i would say a most economists expected that the federal reserve would increase interest rates by 75 basis points at the next meeting. now, those estimates are down to only an increase of about 50 basis points. some sol at the federal reserve is going to increase interest rates are going ahead in the next couple of months, but maybe not as aggressive and debt as the main reason why was street. yeah, there was quite an i forked a reaction here or we saw the nasa composite, for example, up by almost sweep percent who chips up by a good 550 point an increase of one and a half percent. so at least for one day wall street, it seems to be happy now and thursday we will get the next inflation better with the producer prices and the markets. and he's reading something into these figures . hey,

but no, the federal reserve chairman made very clear that he was thinking exactly the opposite. his message was stark, his message was clear that interest rates will continue to rise in the months to can possibly as soon as when the federal reserve next meet in september. and by the end of this year or the beginning of next, the interest rate could reach as high as 4 percent. bearing in mind that at each of its last 4 meetings, the federal reserve has increase the rate on each occasion. it's going to have a massive impact on audrey americans who are still struggling to cope with inflation. even though gas prices have gone down, which is something oper relief. but that increase in the interest rate has a role on, in every aspect of life, an increase in the price of cars in the price of mortgages in the cost of rent. so certainly this is something that would really not be a welcome to buy. the average american india has restricted the export of wheat flour in a bid to slow the rising cost of food. a government bond, the export of wheat itself after a heat wave restricted output ea

he wanted to take away from the federal reserve the right to print dollars and command the entire financial united states, robert took a passive part in this, although he was primarily engaged in the fight against criminal elements from crime. and after kennedy was assassinated, john fijiraet robert decided to run for president and continue his brother's policy. and i have the impression that the assassination of robert kennedy already in the sixty-eighth year is due to the fact that he claimed to be a candidate for the presidency of the united states and could continue john's policy , including the transfer. financial power in of the united states from the control of the federal reserve system to the control of the government of the united states until now, for reference, i must say that the federal reserve system controls both the issuance of the dollar and the circulation of the dollar not only in the united states but throughout the world, the government of the united states since then the states have never raised the issue of transferring money that imitates the federal reserve system

of the federal reserve system's federal open market committee from 1991 to 2011.at is quite the introduction. tell us your view on the criteria for the federal reserve to raise interest rates further in september, is it what you expected?- further in september, is it what you expected? yes, it is, if ou what you expected? yes, it is, if you read _ what you expected? yes, it is, if you read the _ what you expected? yes, it is, if you read the minutes - what you expected? yes, it is, if you read the minutes the - if you read the minutes the committee are very committed to down inflation, and 8.5% year—on—year inflation is still too high, and i think everyone realises that. i think there was in the minutes of the amount of discussion that things are beginning to slow, we are seeing some of that even though the labour market remains very strong, they are seeing some increases with the initial claims, that kind of talk isn't what i think the market is going to ease up, and they may, the other thing they said, basically, not so much in the minutes directly but in the pr

everything just leads back to the federal reserve. so much, cheryl, coming up president trump signing that massive inflation act into law but democrats are not on the same page about when it will help americans if at all. congresswomanfrom south carolina nancy mace next. ♪ ♪ ♪ alright, limu, give me a socket wrench, pliers, and a phone open to libertymutual.com they customize your car insurance, so you only pay for what you need... and a blowtorch. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ ♪ if you shop at walmart, you get it. ♪ you know how to spend a little less to get a little more to make life a little better. ♪ ♪ choosing miracle-ear was a great decision. like when i decided to host family movie nights. miracle-ear made it easy. i just booked an appointment and a certified hearing care professional evaluated my hearing loss and helped me find the right device calibrated to my unique hearing needs. now i enjoy every moment. the quiet ones and the loud ones. make a sound decision. call 1-800 miracle now, a

so it's a difficult balancing act that the federal reserve chair is doing. he gave his thoughts to the meeting there, but certainly it was listened to very closely in wall street with a degree of horror as reflected in the fact that all the 4 major bench parks are dropped at least 4 percent. all right, my can live for stay in washington. mike, thank it to the therapy an hour where an air strike has killed at least 4 people, including 2 children. it happened in malay and the northern region of tig rye. the cities been at the center of conflict that began more than 2 years ago. the latest attack has increased fears that an already dire humanitarian crisis may get worse. katelyn has had a young has more an air strike in the capital of ethiopia. t grey region could signal a new phase of renewed fighting local media say the central government is responsible for the attack in an area control by rebels from the te graham people's liberation front or t p l f that she dish desiree sonya belinda. i think the s drive kid around noon a neighbourhood is a residential are

all eyes are on the federal reserve.e'll stick with the analogy of the show, doing its best "terminator" impression. destroying demand by humans to spend more money that has achieved in other degrees, you talk about the m2 money supply and how much that has come down? >> you know, charles, i think the case for the fed tighten something rapidly dissipating. let's face it real growth is already at a crawl. it will probably be slower by the next september meeting. inflation evidence, headline numbers are still strong but everything else has rolled over and by september there will be more inflation evidence of easing. i think the case for another tighten something dissipating. i think why the markets are taking off. they're picking off that we're at the front edge of the next easing cycle. the market is already doing that. bond yields from one years to 30 years already enacted rate cuts. the dollar is rolling over, junk spreads have been coming in and proving and to your point real money growth back to 1960 right now is lowe

. >> 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 bring inflation back down to our 2% goal. price stability is the responsibility of the federal reserve and serves as the bedrock of our economy. without price stability, the economy does not work for anyone, in particular, without price stability we will not achieve a sustained time of labor market conditions that benefit all. the burdens of high inflation fall heaviest on those who are lea

we continue our conversation with minneapolis federal reserve's neel kashkari.you left off on the question of supply. when i was talking with two senators earlier, there was this debate about whether taxation on companies that don't pay a minimum level of taxation will have their supply hurt. so, in other words, you tax them, supply goes down, that hurts within inflation. what is your assessment of that? >> you know, over the long-term, that's probably true on the margin. people say that about raising interest rates. why raise interest rates, that will make it more expensive for firms to invest and that is going to not help with the supply side. that's

we expect a less hawk's federal reserve. bitcoin in general play that much higher, 3.5% on, the white house economic advisor reacted to the latest inflation numbers. take a listen. >> what we need to do right now is we need to help bring prices down in a way that sustains their economic progress we have made. we saw 500,000 jobs created last month while the inflation print was zero. we can keep making progress on that front. caroline: let's get more analysis on the jobs, cpi, what it means. the president and founder of macro policy perspectives, a federal reserve researcher in previous years. great to get your voice on network. i'm interested in where we are now balanced. are we focused on the cooler cpi's and the seriously hot jobs number we had friday? >> the two are not necessarily contradictory. we can have a cooling in inflation driven by headline inflation, driven by increased price sensitivity of consumers, even with a resilient job market. i do not think we are out of the inflation woods. wage growth is strong, core

i asked the philly federal reserve president what that shows. isn't that signaling we're heading towards a recession? >> we're heading towards a slowdown, which is what we're trying to engineer in terms of bringing inflation under control. whether that leads to a recession, jury is 'til out on that because we're starting from a very strong position. >> no one here will talk about a recession, the possibility of a recession, but i am hearing more likely than not we'll get a 75 basis point move at that next meeting in september. back to you, lauren. lauren: edward lawrence, thank you very much. so much many cover for us, we appreciate it. this is the worst day for the market since the lows back in june. is this all part of the pain that powell was talking about? with that we go straight to the floor show and joining me is the chief strategist and institution managing director of commodities chris robinson. the criseses. thank you for join -- chriss. chris robinson, let me start with you here. it was a short speak and half the length of time he nor

taylor: we are getting comments, federal reserve bank of st.ouis president james bullard speaking to the wall street journal and saying again favoring more of 75 in september versus 50. so the balance continues. do you agree this is the federal reserve that has the ability to go 75 in september? padhraic: they could. i think we have to remember that 75 is an extreme rate hike. we have had a couple of them, they are very rare, and even 50 basis point is a big hike. i suspect there is enough in the minutes in terms of the slowdown answer for the fed to pull back and still deliver quite an impressive rate hike and to deliver the message to the marketplace that they are not done, that they will do another 50. they will not say but they apply -- imply they can do another 50 at the next meeting. and they could do 75, but our call is 50. taylor: given the lack too of monetary policy, when are you looking to actually start to feel the effects of these rate hikes? padhraic: so the rate hikes themselves -- the way i would see this is the rate hikes are e

which is not how the federal reserve usually operates. charles: right.hil, you've been writing, jim, you think he has no choice but to go strong, go hard on this? >> i agree with danielle. he has got a credibility problem. they used the word transitory last year. that turned out to be terribly wrong. they have to rein in inflation. the only tool they have is to raise interest rates. i agree with you we could see 3%, high threes in six months, but on longer term interest rates they may be closer to peaking out. we may get the situation with lower higher rates which is inverted yield curve. charles: that changes the conversation from inflation to recession? >> right. >> inverted yield curve has a good track of predicting recession. charles: five and 30, some odd combination? >> three month. charles: okay. >> that should be inverted by tomorrow. charles: get to some questions from the audience, okay? first one sent to us by ll. if interest rates usually have to exceed the rate of inflation how high do you see interest rates going and do you believe the fed

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 growth. moreover, there will very likely be some softening of liver market conditions. while higher interest rates, slower growth, and softer labor market conditions will bring down inflation, it will also bring some pain. these are the unfortunate costs of reducing inflation. but a failure to restore price stability would mean for greater pain. the u.s. economy is clearly slowing from the historically high growth rates of 2021, which reflected the reopening of the eco

you know, charles, this is, i wish we had a half hour to discuss this because the federal reserve in ith quantitative easing completely changed the way they managed monetary policy. it used to be that the federal funds rate and the money supply, the monetary base, were connected. now they aren't. and so the federal reserve is raising interest rates but we still have 40% more money in the economy and so we're going to have inflation and then the harm from these interest rate hikes because we've held them so low for so long, it is all going to happen together. and that is the recipe for stagflation. and they haven't explained it at all. i certainly hope that at jackson hole monetary policymakers talk about money supply because they haven't talked about it in years. charles: right. well, hasn't it come down a trillion bucks? how much more do you want to see, how much more money do you want to see come out of the system? >> yeah, charles, this is the interesting thing, the federal reserve's balance sheet is different than the m2 measure of money. charles: right. >> so between 2014 and 201

that is dan tarullo, a former federal reserve governor. now that powell has spoken, how can markets react? it is not great for equity markets. the nasdaq 100 down 2.5%. we will get the take from scott chronert, citigroup strategist, coming up next. this is bloomberg. ♪ chair powell: the first lesson is that central banks can and should take responsibility for delivering low and stable inflation. the second lesson is that the public's expectations about future inflation can play an wharton role in setting the path of inflation over time. if i inflation continues, the greater chance that expectations of higher inflation will become entrenched. that brings me to the third lesson, which is we must keep at it until the job is done. our job is to avoid that outcome by acting with resolve now. kailey: that was chair for jay powell speaking in jackson hole. the 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 cha

has or the federal reserve bank of the u. s. has already increased interest rates much more already earlier than the european central bank. but there are many reasons why this might continue in the future. why that although we have rather similar inflation levels in this country, so to speak, us where 8 percent more than a percent of both countries. i'm the composition of the equation is different. i can receive this pressure mounting on the euro now and for the foreseeable future. how much does that say about the current economic power of the common currency area? it rather said, that's a, something about how attractive is it to invest in the u. s. into financial assets in the us versus financial s. as it's in your area. of course, it's a financial asset that implicitly also depend on the economic power of the 2 country groups. in the u. s. what is really different is 1st, the recession risk you to guess delivery problems is less high then for europe. second in the u. s, we have much better wage developments and better in the s

federal reserve must keep raising interest rates.a moment, we will look at the impact of the rocketing cost of living in two very different parts of the world. first, let's go live to new york and our business correspondent michelle fleury. michelle, it was a very hawkish tone from jerome powell. walk us through why markets have reacted to this so badly. >> yet, jerome powell -- yeah, jerome powell in his widely anticipated speech said the federal reserve would continue to raise rates. that they would remain elevated for a long time. for investors, this wasn't the worst possible news. they hoped -- this was the worst possible news. they hoped you would dial things back. it was the opposite. as a result you saw u.s. markets falling sharply all down around 3%. the dow jones industrial average coming 1000 points in one day. part of the fear they have is not just higher rates. it's the idea that if the fed gets it wrong it could potentially to the u.s. economy into recession if growth stalls. >> michelle, recession is on minds certainly

if the federal reserve -- if we don't see inflation slowing down, the federal reserve has to push ratesn more, then we are into this conversation about inflation -- about a recession. and, you know, i think a really big story we are going to be talking about for the next six months is what's going on in russia and ukraine because, you know, russia has the capacity to cut off natural gas, oil supplies to europe, -- >> arthel: food supplies. jon: yes, that can push prices up as we get into the winter and i think vladimir putin will be playing this card and we have to watch that part of the global landscape carefully. the united states interestingly is right now in a race to get liquefied natural gas to europe before the winter hits and they -- and their heating prices go up. arthel: yeah, there are definitely factors that are perhaps in the control of the people who run things and sometimes maybe perhaps not in the control, so let's hope for the best for the sake of all of us, jon hilsenrath from the wall street journal, thanks, jon. take care. eric: it's been one year since chaotic withd

what it needs to keep moving in the same direction as the federal reserve, right? the policy has to be committed into limiting, short term inpatient repressor. it's pretty clear that the u. s. federal reserve is going to shift to a restrictive stance and probably stay they will know more relatively soon on on that from. so basically the us government has to act in the same way and basically not put forward policies that might actually increase spending and bethel inflation . that if the president and the federal reserve are working, you might say independently, they all have to work together to tame inflation. and that comes with its own risks, isn't it? because there are many factors that are influencing global inflation right now. so what direction do you think or do you see the american scenario following? well yeah, 2 sides. know, 1st of what we have to accept show or demand. there is going to be a gross cost into fighting in faith. and it does mean that we will have to see some damage to the labor market, but again, there are 2 scenarios. it can be very signif

dagen: the federal reserve's july meeting minutes out yesterday suggested that the federal reserve will to raise rates at the next meeting to get inflation under control. joining me now, morgan creek capital management founder and chief investment officer, mark yusko. mark, we're also looking ahead to the fed meeting next month. we get some data either this morning on jobless claims but the initial read was oh, the fed's going to really take its foot off the gas, it's going to be doveish and then you have a story that comes out in the wall street journal at 5:00, 5:15 yesterday from nick timrose saying fed officials see need for continued interest rate increases, less certainty over destination. the fed, what is it? the markets want the fed to not only take its foot off the gas, pivot and they're looking ahead to when the fed will cut interest rates and haven't started reducing the balance sheet yet. how do you see it. >> you're right. good morning from north carolina. i think the fed is an interesting entity. it's neither federal nor does it have any reserves. it's a really interesting

kriti: put that into the context for the federal reserve here.bviously we know the federal reserve has to cater to the united states economy but it is, to some extent, dependent on the supply chain issues you are seeing in the rest of the world as well. to what extent does it have to be wary of what you see in the ecb, pboc, arguably the doj? cameron: it is not so much what the -- what they are doing, rather why they are doing it. the issue with europe in particular is one of a massive, massive negative turn because of russian sanctions and what the impact has been on the european market, whether electricity or natural gas. you have seen a parabolic rise in the price of natural gas prices for this forthcoming winter or even for spot electricity prices. the soap to put that into context, it is like the entirety of the population of the eurozone and the u.k. short gamestop january 2021 and everyone is short and is being run over. there has been press recently about the pain higher electricity prices are causing in the united states and that is cert

steven: it means the federal reserve is unlikely to be kind to the equity market.is not there to protect investors, it is to protect labor markets and get us to a lower level of inflation. i would say some of the signs we have seen, being data-dependent is a lot better than the federal reserve being overconfident in the economic outlook in what we have seen with unemployment insurance is up 70,000. that does not happen when the economy is growing at its potential, when the economy is growing strongly at trend. we do not get rising unemployment insurance. the point we are already expecting declines in the labor market is pretty far off. i would say the way financial conditions have tightened, the way the lags play out, it is quite possible we are facing job losses on a net basis over the course of 2023. if it will be data-dependent and looking at inflation issues, some of the inflation issues are lagging indicators. price inflation is closely linked to wages. it has little to do with inflation and the past year. unfortunately, those things are going to show some str

it isn't often you see or hear a chair in the federal reserve talk about pain coming as a result of federal reserve policy usually that's the signal that there is pain for the fed to reverse policy but that's not the signal that chair powell is sending today. there really was not much for the doves in there there was an expectation that perhaps there would be some -- a few -- the only one that was there is the idea at some point it would be appropriate for the federal reserve to slow the pace of tightening. but that came along with the idea that perhaps there would be a 75 basis point rate increase in september, saying it could be appropriate to do that there was also some hope that maybe the fed would start that reduction in the pace of tightening in september, but not necessarily -- there he is talking to allen blinder, the former vice chair of the federal reserve board back in the '90s, a guest on cnbc, and that's michelle smith, the chief of staff of the federal reserve, and that completes the tradition of the fed chair, something that was started many, many years ago here at jackson ho

the federal reserve is in a rate hiking cycle.ers declined 15% of the last 18 months and an awful lot of our inflation is imported because the price of commodities is in dollars so the bank of england to a certain extent wants to protect the value of the pound to stop the value of the pound to stop the effect of imported inflation adding to the inflationary pressures already inflationary pressures already in the economy. so, ultimately, there are no good options. the bank of england can either not raising interest rates and see the bank value of the pound decline or the central bank can raise interest rates in an attempt to try and mitigate, take the edge of that effect. i see. thank you for the explanation. and one other key point that i think people will look at, and i know the bank of england is independent and has its own reason to tackle inflation but it seems to many households lack the authorities are pulling in opposite directions. the bank is raising interest rates. it puts financial pressure on households, makes their bo

a top federal reserve official, the federal reserve bank of cleveland president warning inflation is even peaked yet. this was raising fears of more federal reserve interest rate hikes. and now this, geopolitics weighing on the averages. nearly two dozen chinese warplanes flew through taiwan air defense zone. the white house last year touted the taliban's desire for legitimacy but now says the taliban gave safe haven to terrorist like al qaeda mastermind. ayman al-zawahiri killed in a cia drone strike in kabul. edward lawrence at the white house. reporter: president joe biden gave the green light killing the al qaeda operative closest to osama bin laden. ayman al-zawahiri was standing on a balcony in kabul, afghanistan when a strike hit. president biden: just thinks has been delivered this terrorist leader is no more. people around the world no longer need to fear a vicious and determined killer. reporter: as the president took bold action in afghanistan opposite in the trip by nancy pelosi. she defied warnings by the administration not to go. the white house offered no statement to

federal reserve speakers reiterating their determination to fight inflation. some of the biggest we have seen since april. joining us now, erik nelson, wells fargo macro strategist. what do you make of some of this renewed dollar strength? it might have caught some people off guard. erik: what really stands out to me, especially in the past week, we have seen a surge in the dollar. the u.k. and europe have been leading global yields. we should be seeing the dollar lower. why is it not lower? commodities are the big story. power prices and natural gas prices are surging globally. it is weighing on the euro and sterling. the u.s. is becoming a net commodity exporter. a lot of liquid natural gas. you have terms of trade being more of a driver of fx. i think this is an underappreciated story and something that will continue to drive dollar strength going forward. jon: there has been so much focus on what fed players have said this week in the commitment to higher rates. there has been an emphasis with what is happening with the u.s. economy today. weakening gas pr

we need to end the federal reserve. usurped its power and the power of the american people and our elected representatives. no. they do not have the consent of the american people, we will not comply, and it must be ended. from the founding of this nation up to the founding of the federal reserve, in those years, hamilton versus apperson, abraham lincoln, henry clay. teddy roosevelt. william james brian. the whole concept, the politics of money, it was actively debated what the currency was, who controlled the currency, what was the central bank, who controlled the central bank? after the federal reserve was formed, we lost that. that is going to be one of the, if not v most major issue -- if not v most major issue that we have. we need to end the federal reserve. and the central bank will be owned by one group and you know who that group is, the american people. not third tier bankers from fifth tier firms like powell. the american people will control their own bank in their own currency. we are at war. i like are on -

and bring it back down is unconditional by the federal reserve. back to you. liz: edward lawrence, great reporting. joining us now congressman french hill from house financial services and former cke restaurant andy putzner. andy, what do you make of that report? sounds like we need to rate hikes to bring inflation down. what your reaction to what you just heard? >> happy friday, liz. good to be with you. yes, we need to be unleashing the supply side. we need to make the tax cuts from president trump permanent and unleash american energy and remove any regulatory barriers this administration is putting up that's causing that supply chain, those jobs: trucking, innovation to be blocked. as absolutely what we should do. on the report, look, what's happening is interest rates are now normalizing from zero after a period of extraordinary accommodation combined with rampant federal spending and so we're behind the curve, that's what jay powell is acknowledging. inflation is stubborn but we need a supply side unleashing and we need the normalization of

we've got to bear in mind, the federal reserve is hiking rates at an aggressive pace.hat is the kind of spread interest rate, there is not much of a story here. it would be -- our mind, we will see the dollar strength we have had in the last few lift for a little longer. we have seen the -- earning as well, quite a long way against the u.s. dollar. i think we are going to need to see greater confidence in the outlook for the global economy, greater confidence in terms of what is happening to inflation before we can start seeing currencies such as the euro, sterling begin to recover. guy: the prime minister today was talking about the fact that europe has a decade of -- to come, i.e., energy prices are not going to be over this winter. it is going to persist. how long can fiscal support last in this kind of environment? dean: that is a great question. i think we should be aware, just because we are having high energy prices does not mean -- diversify energy procurement. that we are going to see the capitulation reverse, higher prices are going to be with us for a long t

here charles is the federal reserve seems to be raising their projections and trying to get that federal funds rate somewhere around 4% is kind of the grumbling i've been taking from this and historical ly, covering the federal reserve, that 4% mark is where i've been told the federal reserve needs to have the federal funds rate to handle those ups and downs in the economy using just the federal funds rate so we might be seeing that aggressive move towards that, more towards the 4%. back to you. charles: all right, so he mentioned volcker twice, but he didn't mention greenspan once, although mention of helicopter ben, not this time. edward thanks a lot appreciate it. i'd like to bring in one of my favorite fed critics, sve nfl hendrick and you've been adimate the fed needs to be restrictive to fight inflation. did powell do that and step up the way you've been wanting to and let's say he goes through with this , what are the ramifications? >> hey, charles good to be with you. my initial reaction is finally, the lights went on. frankly, that's a speech that should have been given at the b

jerome powell today indicated that the federal reserve is prepared to do so, that it wants to avoid havingnd that is of course one thing we are waiting for in the coming months with more fed meetings to come. 0ur months with more fed meetings to come. our rates going up further? i guess we can assume, yes, but also by how much and what would be the cadence with which the central bank keeps raising rates. investors as we had default from your colleague, were disappointed today with major markets in the us selling off. previously there were signs from the fed that we would see us slowing in interest rate raising next year but it does not seem likely based on what we have heard from jerome powell today. if these rates do we did go up, as you assume they would, is that a short—term or long—term effect on america? a short-term or long-term effect on america?- a short-term or long-term effect on america? well, jerome powell indicated _ effect on america? well, jerome powell indicated today _ effect on america? well, jerome powell indicated today that - effect on america? well, jerome powell indi

taylor: how does that set us up for the federal reserve?o longer are we just calling this a boring old fed. this is a new, invigorated federal reserve. >> off of the july meeting, we had the surprise in cpi, which was a surprise to the downside, surprising to the upside and wages. they were just showing that wages are still accelerating, not peaking. so, what are you going to do with it? i think the data is really telling the fed they need to hike aggressively while they can and just speak to the message, the hawkish message. we will see in the minutes today and hear from chairman powell. taylor: where looking at a 20-year bond auction, three point 8% versus 3.35%. we have looked at the 20 year yield for investors. also, as we think of rising borrowing costs, the federal reserve has also rolled down the balance sheet on -- it will likely peak at about $90 billion or so. how much impact today have in this treasury and mbs market? >> i think the intention of the fed is to really do it in the background. without causing any substantial moves i