j. powell recon firmf owe /* re-confirmation hearing.nator pat toomey in just a couple of minutes. the futures are up right now so far up their highs a little bit. 'rcongig bk. >>> we got great news that will capture the attention of wall street and silicon valley. sequoia will be investing in citadel securities it will value it at $22 billion. the first time the silicon valley has invested in what is described as a traditional financial firm, if not wall street firm, citadel is based in chicago. the first time ken griffin's citadel securities has taken an outside investor and, of course, by taking outside money, it raises the possibility in the future of a potential ipo or sale of citadel securities i want to mention, this is citadel securities the trading and market-making firm that competes with the likes of goldman sachs and morgan stanley and everybody else this is not the hedge fund but acute endorsement by effectively silicon valley in what kevin griffin has created. i am sure we will have folks on wall street to wake up this morn

j powells, his, his job and his tenure as fletcher ends on monday. and they'll brainers does not. and until january, the 31st of 2026. so i think that the congress right now is being very political in trying to hold powers feet to the fire may. can the bad guy make in the, you know, the inflation fall guy. and by coupling their 2 boats together, even though even though it less, brainard is going to continue on at the better reserve board after this monday. i think it's extremely bad politics, very bad optics. i've never seen anything i guess. i mean, for all we know on tuesday, if you call for the, for the chair, the federal reserve, you might get his voice mail because he's not tech to the chair anymore. i say that tongue in cheek. but this is not a good moment for, for, for the u. s. congress where it's going to be interesting to see what j paul comes out and does on wednesday. that's for sure. former fed insider daniel d, martina booth. always appreciate your expertise on the program. thank you. and finally, if you're wondering when your option for commuting to work will includ

j. powell made the case to washington, as well. he told them 2022 would be the year that the fed starts pulling back support for the nation's recovery >> the economy no longer needs or wants the very highly accommodative policies that we've had in place to deal with the pandemic and the aftermath so that's what that's really about. we're just really going to be moving over the course of this year to a policy that's closer to normal in from where we are. >> it doesn't mean you have to pay more for the things you buy and it can hurt the job market if the fed has to stomp on the brakes to slow down the economy. he can do what it takes to rein in rising prices. >> we see inflation persisting at high levels longer than expected and then -- if you have to raise interest rates more over time, we will we will use our tools to get inflation back >> politically, several republican senators today committed to supporting powell's renomination that's important because at least four democratic senators say they plan to vote against him and shep,

j. powell's comments on capitol hill and awaiting the latest read on inflation.ed on markets. >>> covid hospitalizations hit a record high. we'll look at the already stressed hospital systems and find out if things will improve as the number of cases starts as to trim down in hard-hit areas of the country. >>> new momentum on capitol hill for rules to prevent lawmakers from owning individual stocks in office we will speak to claire j. clayton about the controversy as the second hour of "squawk box" begins right now >> good morning, well come back to "squawk box" right here on cnbc, i'm andrew ross sorkin along with becky quick and andrew kernon. the nasdaq is opening about 17 points higher. the s&p 500 is up about 3 point. a couple things making headlines this hour, we are a little less than inflation data the december consumer price index will be coming out, headline cpi rose the number to beat excluding food and energy, the forecast calming for a rise of half a percent. meta platforms naming doordash ceo tony xu, the first addition to the board in nearly two ye

j. powell about tightening and shedding bonds. disagree with that i believe his comments will -- i think the current selloff simply marks the end of what amounts wholesale pump and dump scheme orchestrated by the venture capital complex in the form of garbage-backed deals and ipos. i bet we'll be fine. a lot of what powell says has already slowed the economy down. of course it's more than the fed. i'm expecting nothing. that's right that's french. nothing. not anything on china, not anything on orders not anything on 787. if you expect nothing, you see you're never disappointed. that's right you hope for the best but you prepare for the worst. and that's how i'm approaching boeing for the investing club. the irs pay cycle is too good to ignore, but the company is not well managed if i were boeing i would do this and they can call me in, but i like my job. i would start by talking about defense, not commercial. it's really hard to screw up defense when you have a cold war. not great either but at least better than 77 we lost netfli

j. powell was that this is a complicated economic picture, and we need to be humble and nimble while we do have full employment and we are in an economic recovery, the inflation situation is a problem that's why while they're not very strongly signaled and put us to expect there will be a rate hike come march and more after that it means going forward it could cost you more to get a mortgage, a bank loan, a credit card so for those who are preparing for this rate hike in march if you need any of those things it would be a good time to lock them in now. but remember the reason for doing this for the overall reason is to try to slow down the rate of inflation, prices continuing to go up. so if we do see rates go up a little bit hopefully that will be overshadowed by prices going down a bit more. >> all right, our thanks to stephanie ruhle for that >>> and while the u.s. is preoccupied with the russia-ukraine crisis north korea fires two more missiles. that is the sixth round of launches this month. kim jong-un has been ramping up missile testing since last fall, putting pressurer on the b

so j powell, when he's testifying before congress and saying that they're thinking about maybe raising rates at some point if they see some inflation, it's clear now to the population that this man is and is a tyrant, essentially a son in a to put it into historical terms and you'd have to go back to benedict arnold to find somebody in american life who was so obviously in patently, undermining the integrity of our government in our way of life. gerald, you said most people know that people that listen to you and, and stay see. yeah, the people that you know that the mark morse's in ear, george gammons myself, you know, we're, we're a minority. most people believes a b s. and that is, and of course the mainstream media keeps repeating it. this is the worst that the fed gang has done since they were invented by another murderous clown that a woodrow wilson in a 100 a years. they've been lying to us and say, oh, when inflation rate goes over 2 percent, a number, they made up back around y 201-2012. we made, we made the number up to percent. and now it's way over to appreciate it. and we'

i think that there are, did i think that there are tensions right now between the demand that j. powell describes dissipating in terms of households and the supply chain disruption. i mean, when he says to it seems odd when he says, you know, we could take care of demand, basically say, we'll put less money into people's homes. but we can't do anything about the suppliers because that's what he was saying, right? that is basically what he was saying, and he's actually referring to the fact that, that, that january, the 15th is going to be the 1st month since july, that american families have not received the child tax credit in cash. so there is indeed some demand destruction coming down the pipeline of the, of the fiscal nature. and the fed can try and slow the economy by tightening policy, by raising interest rates on march 16th when it sounds like a lot of fed officials would like to pull that 1st trigger. but the question of, of actually impacting the supply chain. he's right, there's not that much he can do about it, but american companies can and they can build up, they can stockp

well, that really is notable, especially as we've learned that you know, chairman j. powell has worked so hard over the last year to keep everything steady with the market to let them know that he is going to communicate. and so it's interesting to kind of see that uneasiness. now at the same time, this is all happening during earning season, and you would expect this sell off to be indicative of poor results, but so far, nearly 75 percent of s and p $500.00 companies that have reported actually beat their estimates. so why is that not helping to relieve this volatility right now? you know, it's, it's so sad. the earnings mean absolutely nothing. in the 4th quarter of 2018, we had the best earnings corner we've had in probably 3 years in the but the fed was promising flow rate hikes in 20194. and they were promising also quantitative timing, which means reducing the balance, not just a pre reducing it. so the fed in the 4th quarter of 2018 was promising for rate hikes the next year, plus another 3 hikes in terms of quantity exciting. so $78.00 hikes in the beast in the market sold off

the general consensus is that when fed chair j, powell speaks at the conclusion of the get together on wednesday, he will signal the 1st interest rate hike of the year will come in march. now with many wall street analysts expecting 3 more increases before the end of 2022. and this comes to us. equities have been reeling since the start of the year in the middle of earning season as the s and p $500.00 and tech heavy nasdaq have entered correction territory while a few more poor days will see the dow fault 10 percent below its recent highs and be in the same boat, while the fed seems to have met its goal of maximum employment, the nation is still 5 faces, rising prices with inflation surging at the highest rate in nearly 40 years. we can't say that enough. so will there be any surprise out of this week out of the fed this week? well, it's got this former fed insider, and theo of well intelligent danielle de martino booth. danielle, it appears that the fed composition is opening the door to kind of a more hawkish tone. what does that mean as the f o m c holds the 1st meeting of the year

as we listen to what j powell is going to say in which direction the federal reserve is going to move in order to try to control the inflation in our economy. and you talked about the 6 figure mark that everybody's looking for because we've heard wall street analysts pump up bitcoin thing. it was going to the moon at $100000.00, then they say it would drop to $20000.00. now a new note from j. p. morgan include the survey showing only 5 percent of its quiet going to $100000.00 this point while the majority believe it's going be $60000.00. mark is more relevant here. does any of this chatter for wall street really mean anything for those true believers in hardware? now i really don't think so. i think it's a lot of noise and we're trying to do is as best as we can to educate people about how not only is between the best performing asset of the last decade. but it's truly this unique savings technology that couple of decentralization and removing us from being sort of at the whim of the central authority and whatever they want to do with these, you know, the manipulation of interest rate

j. powell says they can ban officials from selling stock they have looked into the rundown here so i haveat you are going to weigh in on here him let me get that out there >> yes, the lawmakers should be banned the refs shouldn't bet on the game which is why it's a problem democrats and republicans in the senate can't steam to agree on a plan for this. house speaker nancy pelosi flatout opposes a ban on stock trading. a poll last week found three and four law make verse an under fire advantage in trading a. campaign eadership poll in november found 67% of voters want to ban all lawmakers trading stocks let's not suppose this is an imaginary problem. insiders found at least 54 members of congress, 31 republicans, 22 democrats violated disclosure rules and their stock trading in 2021 alone. that matters as foreman congressman brian baird said a decade ago, one line in congress can be worth millions of dollars. the right thing is restrict them and their spouses from trading stock. that will give americans confidence they are working for our interests, not their own profits. >> sit possible t

j. powell and fed back then then i realized, a lot of this inflation is probably covid-related.ion for being blindsided to some extent by a few variant and not rank up testing and maybe not doing more with therapeutics? do you see what i'm saying i guess it doesn't matter to people, though they see the inflation and he's president so they blame him? >> but as becky said earlier, the challenge for this white house is they can't spend their way out of it. you can spend more money to hire people you can spend more money to juice the economy or help small business but on the issue of inflation, spending more money makes the problem worse. this administration auto to thank joe mannequin and kyrsten sinema, the two of them are responsible for preventing build back better, which would only be a fuel, the a lubricant for greater inflation. that is something we feel day-to-day something we feel in our pocketbooks, we feel in our bank accounts i got to tell you, we're not just anxious anymore this country is getting angry when they go to the supermarket, when they fill up tear tank. they

j. powell at the federal reserve it could happen three times this year. historic low lows, basically zero%. if they do three rate hikes we are talking about .75%, still historically low but it is going the feel different. obviously mortgage rates will go up, to take out a loan to buy a car or for a small business, those will become more expensive and we expect the housing market to slow down a little bit. the other takeaway is when those interest rates go up, you want to pay down debt, particularly things like credit card debt that tend to have a floating interest rate. so as rates rise that debt gets more and more expensive. definitely the message is to pay off that credit card deb if you can. >>> let's talk about the job market right now. there are nearly 11 million job openings in the u.s. this year jobless claims were at a new low. it is strange times we are living in with the job market. what does it mean for the job market in 2022? >> this is quite a historic time for the job market. the good news is, it is definitely still a job seeker's market. we

j. powell comes to capitol hill and forces a hearing and doesn't go on the anti-inflationary war path nothing like breaking rate hikes for inflation and need four or more of them or more he said we're data dependent like the old days. maybe once we get over covid there could be a cooldown in inflation. thats what happened today. and it made us want to see what is worth, buy, buy, buy. we see the trees through the forest, so to speak. it turns out that while the forest is looking terrible -- there are enough healthy trees that it makes sense to do some buying so let me give you concrete examples of what is going on in the basket as we just trade -- traded it as a unit first is morgan stanley raises stocks for amazon. $4,000 to $4200. there are so many engineers woking at amazon, there are other bets amazon gained a lot of north american retail market share and had a solid holiday season given mt individual retailers didn't have good christmas numbers because of omicron and the flush, it makes sense that amazon must have had a terrific quarter. now the stock is zooming i have to tell you someth

j. powell will come down on bruno cuccinelli, look out does porsche have a high performance data center?ppens is we have to get all of the scaredy cats out of this market and they'll get rid of the individual companies. when they started the investment club i wrote the word yieks on my board, yikes! yikes isn't much of a strategy it's just what people did. just because so many people seem to use it as a guide doesn't mean it's right. when you pick stocks, your only pieces of company and if you're owning companies then what you're seeing is goldman sachs, premiere investment bank and selling at six times next year's earnings and it can't repeat what it reported and that's watt bears say every year and they could be wrong again the world says these results were mixed what happens if they get less mixed. when we pay less for a company that's less micked pay more, you decide the world says goldman is not doing as well as expected and it's apples to apple, it's better than morgan stanley, bang of america and citi and a one year, a five year and ten-year basis. bottom line. go ahead wait until

housing and against that commodities especially oil have moved up substantially what happened if j powell has managed to push long-term rates high enough to slow a bunch of businesses, right. just make them go slower stranger things have happened. could anything change the principle negative we'll give that a yes. finally is the government outside of the fed a hindrance or a help. from wall street, there are fewer things better than a gridlock congress that can't accomplish anything. and that is exactly what we're getting. you have to box check there. was today significant? considering we have many boxes checked, well it means that something that we didn't have two weeks ago we now have. but that vicious late day decline that inspired a lot of terror so therefore the market, while being close to the decline, still has some work to do. michael in florida, michael? >> caller: hey, jim, big booyah to western florida thank you for taking my call my question is in regards to -- cruise line. in your past interviewed with the president he spoke about his positive outlook for the cruise line by t

j. powell has, if this is going to be a lot about talk. >> well, look, here's the dot plot it sort are gives you what the fed's feel is, and the different governors that they're going to do or what needs to be done in terms of interest rates, inflation and the economy. and they laid that out, and more than fed and the less and they'll get tightening i think powell is not going to reverse from its hawkish viewpoint, and i don't think he'll double down on it. he'll continue to say what he's been saying. i also think it's ludicrous to say if apple goes down a few multiples that the fed is going to save you, but if some of the others go down it won't. >> the fed has and i repeat this, the fed's primary focus right now for the good of the country is taming inflation with the only tools they know how they're not going to balance the market trading down, which by the way, despite the decline is at the five-year average p-e. >> so should it be at the five-year average p-e when rates have been zero for the last five years or should it be lower in the tightening cycle of course, it should be long >> r

j. powell j. powell was an appointee originally under president trump. job? these are some of the real questions here >> i don't think you can use the excuse or the fed as an excuse yes, they partnered with the biden administration on more stimulus spending. they did really deny the impact or how serious inflation in the labor crisis was as you recall despite so many small businesses telling them, there is a huge problem here, so, yeah, the fed is a bad actor in this. but look joe biden came out of the gate, took his eye off covid testing in therapies and treatments immediately, proposed major tax increases. and his policies, if you recall, andrew,made the labor crisis work because two of his major policy discouraged americans from recorrect hecking to work t the work force as we need them i don't think they can pass this off to the if ed. >> from a policy perspective today, practically speaking, take the fed out of it, what do you think has happened in washington where there will be bipartisan support that would arrest inflation to the extent you believ

j. powell. what do you want to here and what do you expect to hear from him?remost want him to drop the word transitory from his vocabulary i never heard of transitory inflation before i've never heard of inflation going back down. and so i think, you know, it's time we faced reality. if it were to me i would increase interest rates today. that seems unlikely, and everybody expects the first increase to be in march. whether it's now or march we need to in effect slow down this inflation. inflation is very deleterious to our society, very deleterious to our economy. and even though we haven't had to deal with it for 30-some odd years it's very much a problem and one we need to take care of. >> what have you done differently with your investments as a result of the inflation that we're facing and that might continue for some time >> well, obviously, we plugged into our thinking inflation -- we plugged into our thinking in some of our acquisitions the fact that we're going to have a harder time finding employees. we are still dealing with way too much money in th

j. powell didn't raise rates sooner, there was a question whether he would be renominated. wanted a more dovish federal bank chairman. it's crazy to think, it's not our fault the federal reserve did this when you know they were righting for lower rates and more easy money coming from th fed. they were spend ac lot of money, too. how do you divorce yourself from having any responsibility over that >> you can't, you got it it. you hit it right on the mark the administration made a choice it wanted to focus on jobs and employment and the fact that people are making more money, forgetting that inflation is a tax and here's the greatest challenge. people are getting raises right now, significant raises. but inflation is overcoming those races, so you are actually worse off today than you were a year ago and that's the key question am i better off today under joe biden than i was under president trump? more and more americans are saying they aren't better off and will punish the democrats in november for that. >> the thing is the fed is saying they will raise rates that will be t

j. powell says later.o walk a fine line and not rock the boat and he's probably good at it at this point so odds are he'll be able to pull that off. but anytime you're doing something live, if you say something that people read into, if you look the wrong way -- >> should watch some old tapes of allen green span where everyone was like, what? >> there's an element of which he wants to talk the market down i imagine he sits and watches this and he can't be that upset about it >> no, i think we've seen something. i don't think he wants to be penned for the reason the market is coming down, right? if investors look at things and say the fed inevitably is going to be doing this is one thing. if they sell-off because he says something with the wrong inflection, nobody wants to get tagged with something like that. >> he can't control supply so what's he trying to do he's trying to reduce demand how do you do that you make things harder to do i can't imagine he's looking at this and thinking unless the market did

j. powell has to rethink how quickly he tightens?already thinking about what you are saying, what itself the likely future path of the economy? the fed is always data dependent. but we are in a world where the labor market is doing well, healing further. we are in a world which supply rather than demand is the problem. so i think directionally, the fed should still be pushing towards a more normalizing monetary policy. >> wendy, the build back better plan bill i should say, if it went into effect, do you think overall, i mean, you used to score this stuff, so you know, what do you do what the white house says or not? >> absolutely, i would do what the white house says it would improve the strength around resimmience of the economy. it would make growth more equitably distributed. it would have only the modest effects on economic growth over the next year or two this is not a some lus package this is not an economic recovery package. these are long-term improvements in our social insurance system >> glen, you know a lot of republicans

j. powell. >> so ylan, we have the nomination process or i guess we have the hearing process for the nomination how long before brainard and powell does it take to see those votes happen and then potentially instituted into these positions? also, do we have any guidance yet on the white house in terms of when some of those other positions that are open are going to get filled or at least nominated as well? >> yeah, we keep hearing on through the open fed positions is that could be any day now of course, we haven't heard anything just yet. but as far as when they might get a final vote on the floor for both powell and for brainard, the first thing that has to happen they need to get voted out of committee once that happens then they can be scheduled for a floor vote and then we see when they officially get confirmed so, that time period could take a while, potentially as long as a couple months. we'll have to see what the schedule looks like. >> ylan, thank you ylan mui want to check in the last minute, we have shares of virgin galactic holdings. morgan, the stock is down 16%. you know the compa

could surprise the market what could move the market, it's going to all be in the tone of fed chair j powell when it comes to get on top of inflation, potentially, at the expense of growth. or whether he can kind of commit to doing both. i guess that's -- we're just parsing the words as always to figure out just how vigilant he's sounding on inflation because he's made a big u turn here. >> absolutely made a big u turn. the market has seen it and pretty much takent message and really gone and extrapolated it to the hawkish end the spectrum of likely policy actions here. if he says we're still on track for three rate hikes, possibly four if things break a certain way, i don't think that is a particularly hawkish surprise. there's still a possibility he can say, it's still march or april before we know if inflation will revert to the mean at all because of the year ago effects on the data. it seems of he has the opportunity to say yeah we hear you and are on the hunt for inflation but it doesn't have to be incrementally more urgent we'll see how the market takes of that's what we get. >> let's

j. powell said the issue was discussed, so it's got to be admitted neel kashkari joined the feds, that followstopher waller he wants to move aggressively. here's the options bandied around the least disruptive would be to stop reinvesting in mortgage-backed securities i can decide short-term series, it would be not investing across the board, allowing the balance sheet naturally to wind down, the most extreme selling treasurys to proactively reduce the balance sheet. the december fed chair thought they would reduce the balance sheet. those that did thought it would come down by november. the problem is no one is quite sure what it means for stocks or the economy. the fed says it's not sure yesterday i talked to an analyst at bask of america his models show a substantial part since market games since 2008 came from quantitative easing he says our market could decline by 5% in total because of the fed withdrawing asset purchases. think about that the uncertainty over the economic effects is one reason the fed will probably proceed cautiously getting into what mike was saying, likely raising rate

j. powell sees this number and thinks what and as a function of that he's going to do what?'s turned red here across the board >> i think j. is a thoughtful man. i think he is saying, wait, all my friends have omicron. all my buddies got it. maybe we need to wait to see how it blows through before we make serious decisions. i remember, he is a rick russ guy that doesn't pay attention to what the hedge funds are saying i know he has to like the minority hiring, the different areas that apply he's too thoughtful to say this is important i think he says, wow, everyone has omicron. we got to wait >> jim, i'm with you i think i was talking to somebody last night, made the point, if this was an end of the world movie like the day after tomorrow or 2012 or something, this would be the week where everybody, all the people in the white house and the administration and the senators and everybody else along with billionaires all got lifted and carried away to lifted and carried away to the bunkers and the rest of us were left here. >> i think you have to get it into the hands of the de

j. powell analysis, if you were to try to read his mind right now >> of which parts the jobs or the jobless jobs will claims, but you intrigued me by what pantheon is saying. sow can do both. >> yeah. i this i that powell counts among his blessings that he's got these problems with inflation and the need to take away stimulus. but he has a pretty good economy. unemployment is down fear 4% i don't think there is a question that it's going to go back up now. have you this i don't know what you want to call it, a blip, hopefully, when it comes to omicron, some people will be quarantined saying ohio you might have a blip but get a rebound in february. i think the concern is you don't see it yet, but this year you get rage inflation, but you haven't seen it yet necessarily, if wages keep going up the way they have been going up, that's got to be a concern as well as a when that he has with the job mashlt markets in good shape for the fed to remove stimulus. >> stick around, you want to go over to mike, get your take on these numbers and you think the equity market and the traders will think abou

j hear you, so we will fix that. the beauty of live television. give me your thoughts on what jerome powellpectations for when rates may increase in the us. i when rates may increase in the us. ~' when rates may increase in the us. ~ . . . us. i think the current chair lead by jerome _ us. i think the current chair lead by jerome powell - us. i think the current chair lead by jerome powell will. us. i think the current chair - lead by jerome powell will have lead byjerome powell will have a long conversation today and i think they will be focused on not the tapering, which they will be done with by march, and the big question will be do they start raising rates immediately at the next meeting, will they announce that today, that they will be doing that? i don't know the answer to that, but i suspect that they will at least have some discussions along those lines as they try and catch up. they are a little bit behind the curve on getting rates up to take care of the inflation, so i know there will be a lot of pressure on them to do that. just to get your take on how effective increased inter