my friend jared bernstein with the council of economic advisers.i understand the year-over-year comparisons, the federal reserve, that is good but what if he doesn't understand the level of prices. the cpi is up 16% since february of 2,020 one. groceries up 19%. gasoline at $3.86, $2.22 when biden took office. paltry up 19%, new cars up 20%, should cars be up 24%, real weekly wages have fallen in 26 of the last 29 months. the level of real wages has come down. that hasn't been made up. the fact the year on year cpi is slow doesn't impact that. estimates run up $600, $700 a month in purchasing power for all these necessities of life. that is what jared is missing. stuart: he's also missing the shock value of inflation. every day people go to the grocery store and pay $7, $8, $9, $10, $5 for eggs, that's shock value which statisticians, economists and people who do the statistics don't understand. the american public is shocked when they go to the gas station, the grocery store, that shock is not worn off. larry: i think that's right. i would agree w

jared bernstein. >> you need me. >> when you ask them specific things, though, there's a different story. >> i tell you what i think it is, jared. inflation is -- the rate of change is coming down but stuff people bought two or three years ago because of the initial increases, things are still expensive. they might be blowing up less, and wage growth only recently has started keeping pace with that. people still feel like they're behind. i think that's got to be it. i don't think you can deny it. it's probably not a good idea to deny that people are feeling that. >> so let me unpack a lot of what you said, and i am going to agree with you on this angle of when you get down and you drill down to what we're actually doing as opposed to these kind of more abstract 40,000 feet up questions. 70% -- 76% of people support the infrastructure law issue the bipartisan infrastructure law, and that's obviously to repair highways they drive on. broadband internet they use, clean water they tri. 72% support the chips act. that's not only critical to strengthening supply chains, u two-thirds support th

joining us now we have jared bernstein the chair of the white house council of economic advisors. much for being with us. when you look at these new consumer spending numbers, do they signal to you that the fed will not hike interest rates when it meets next month. >> thanks so much for giving me a chance to come out and talk to you about these important numbers. we don't talk about the granular monetary policy of the federal reserve. we try to -- their independence. we are seeing a transition to steady stable growth and the numbers we got today are in keeping with that and we know the fed watches those numbers very carefully. probably one of the most important numbers if you look over the past three months, which is the right way to do it to get the recent trend in how inflation is moving, the pce price index that came out this morning, the one that the fed watches most closely, rose at an annual rate of 2.1%. now that is someone spitting distance of prepandemic trends. the fed is going to do what it's going to do. from our perspective we want households to have some breathing roo

will join us to defend their call >>> plus, immediate reaction from counsel's economic advisers jared bernstein as the white house pushes back hard on the timing of the call >> then, a c-suite double play the ceo of teva pharmaceuticals with us. big boost for that name after an earnings beat and raise. >>> and later, match group leading the s&p this morning after their results. the cfo joins us this hour for an exclusive >>> big news of the morning, fitch downgrading u.s. long-term credit to aa plus to aaa it is the second downgrade ever by a major agency after s&p back in 2011. joining us first this morning on cnbc, the interview with the man behind that call, fitch ratings richard frances. great to have you with us. thanks for the time. >> thank you >> i would love to know, sort of, your -- some color on the timing and the thinking behind the call now as some have pointed out, some of your quantitative models have been on the mend the last six months or so >> yeah, i mean, honestly, this is a steady deterioration that we've seen in some of the key metrics for the united states for a number of

i want to bring in jared bernstein, the chair of the economic advisers. brought down inflation by 5 percentage points at least on the headline, not so much on the service side -- >> i'd say 6 but go ahead. 9-3. >> fair enough. but we haven't had an increase in the unemployment. >> right. >> the way economists worry about things, that's a problem. >> boy, is that a good problem to have. >> explain why that's a problem, though. >> obviously from joe biden's perspective, that's anything but a problem, it's something he's been striving for is to maintain the labor market making real progress against inflation. that's been happening. we call that a very low sacrifice ratio. so look, the economic model, the phillips curve or sacrifice ratio model is very much based on the demand side of the economy. and i don't think this is that big a head scratcher. i wouldn't call this disinflation immaculate as some have. we're seeing a renormalization of the supply side of the economy. that renormalization has its fr fingerprints all over the disinflation we've seen thus f

white house economist jared bernstein says republicans need to check their facts. look, inflation is down. 2 thirds off of its peak. >> got a lot of republicans walking around with stale talking points. they just haven't absorb these data perhaps because they don't want michael gapen head of u.s. economics at bank of america says the latest jobs numbers are a good sign for american families. growth in the economy held up. demand for labor remains strong. but inflation is that gradually of being lowered deepen says the numbers are also a good sign for the federal reserve. >> as it works to cool down inflation and a growing number of economists say they are feeling optimistic. the federal reserve may be able to pull off a, quote, unquote, soft landing. >> what what means successfully bringing down inflation without tipping the u.s. economy into a painful recession. we're now in washington, raquel martin, back to you. >> all right, back here in the bay area, whether time is we get a live look outside trans america pyramid with the backdrop of a beautiful blue sky kron

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joining me now is chairman of the council of economic advisers, jared bernstein, my good friend who makest polar opposite things. what does this signal to the white house, jared? how do you interpret this? >> we have healthy consumers taking advantage of a historically strong job market. unemployment's been below 4% for a year and a half. a strong job creation and real pay gains. i notice that you cited that year over year inflation number, and then went to the monthly consumer spending number. i'm going to try to make this not confusing. i apologize in advance if i fail. the monthly inflation number ticked up .2%. that's the same -- that was for july. it was the same in june. the thing you want to do right now because of some of the factors that distort the yearly number, look at the past three months. over the past three months, the inflation game came out today. it's the one that the fed looks at most closely, went up 2.1% in an annual rate. that is awfully close to the pre pandemic trend. we have easing inflation, a strong labor market supporting solid consumer spending and the path i