unfortunately jay powell does not. charles: phil, you say there is a little bit more room to the downside. on the s&p where is that number where you know the market may find support more importantly will the fed, is there a number with respect to the stock market where the fed may declare mission accomplished? >> i think the fed is appreciated the wealth effect they created. that is why i'm going to disagree with gary a bit. i think the fed is spot on here. i don't agree they haven't gone far enough. market organically raised interest rates which caused stock market to go up. bond prices because of inflation. what you're seeing now as yields went higher you're seeing the stock market sold off. here is your answer, charles, we're not inexpensive on stocks. we're still trading at 10% premium where you look between growth and value. we need to sell off another 3 to 5%. we need 10-year pes, current and future are back in line with long-term expectations. that is when we move higher. that happens after the second june rate

we have to take in the fed chair jay powell.terms of dachshund terms of major short-term demand, there's going to be an impact. manus: one of our last guest talked about a soft recession in the u.s. will certainly play into the complex as well. thanks for being with us. let's get up to speed, juliette has the first furred headlines from singapore. juliette: the u.s. is preparing a military aid package for india that is looking to reduce delhi's dependence on russian arms. it would making the one of the largest recipients of u.s. military aid, behind israel and egypt. you can government plans to introduce legislation within weeks to override parts of the brexit deal it negotiated with the e.u.. the situation in northern ireland risks escalating tensions with the block. a unit -- after misrepresenting the risk posed by a group of hedge that collapsed during the pandemic. the deal closed and embarrassing episode for the german giant. the wall street journal is reporting that data for a china eastern and lines jet that crashed earli

what did you take away from jay powell yesterday? hannah: they are really prioritizing the fight against inflation right now even if we see a little bit of pain for the economy. investors might be wondering, they have really not priced in the hikes of rates, and we might not see that unless we see the cpi data coming down. tom: where do we get to above neutral if we get above neutral? what would that mean for equities? hannah: markets are looking for any sense of optimism at the moment and they are positive they can take away the longer duration sector to try and rebound. we saw that yesterday. if we can hit that point in time, we might see a slower rebound and the problem is that it comes from such a high base that we have seen a call back, so this will be volatile territory for the time being. francine: is recession now noticeable and what does that mean for stocks? hannah: if you look at the long-duration sectors, there is a lot of fallback, but the more cyclical parts of the market are starting to come under pressure from this an

janet yellen is a subordinate of biden, jay powell is not. president starts leaning on powell or, frankly, on other independent agencies like federal trade commission or the fcc, he's causing a constitutional problem and that's up to the congress. alix: you had a note out yesterday that was interesting, thinking nothing would come of the powell situation but when it came to the sec or doj there were things that interference would pick up that would matter for markets when it came to antitrust or regulation. how might we see that play out? >> look at it this way, those of you who remember ferris mueller remembering camera -- cameron calling his father in for a little chat. if biden is asking powell for a little chat today, in an institutional washington sense it tells me that there may be other little chats. biden has already been leaning on the ftc. i would look in the markets regarding this powell meeting that they start doing those things as well to try to influence policy. constitutionally, that's over the line. but in a practical sense, yo

nasdaq up 3.2% it all came after the comments from jay powell. the treasury markets took all of this in stride what happened was it was already priced in to the markets 10-year rate is where it was yesterday. you are talking 2.954% 5-year treasury is lower it is at 2.938%. 2-year is 2.83%. the crude oil is rising again. a lot of concern with russian oil which is no longer used in the eu right now, wti up at $107.88 that makes you wonder. andrew, we have the man who sparked the rally with this question >> lies-mania. 6:02 in the morning. the fed sparked rerlief rally he may be responsibility steve. >> thank you, andrew just doing my job. i guess my promotional people are writing the intro. the federal reserve delivers the 50-base point rate hike as expected an flnounced the plan to reach billion a month. combination ratchets the fed up to the most aggressive tightening the chair took 75 points off the table and replaced it with 50 over the next two. the reasons is that powell put guardrails in. the may meeting saw the fed recommit to being predict

so what advice would you give jay powell. he's already done the policy part.f with this preamble we understand america is tough, you're struggling but later on he sort of seemed to be bailing out wall street. >> yeah, he's doing something better than president biden is and that is at least acknowledging the pain, but what he has done in the past year is he continues to be wishy washy on what he thinks is actually taking place of course talking about inflation being transitory and wishy washy about how dangerous inflation is and even this week he said that he doesn't think there's going to be a stiff recession but when you talk to economists, business owners, most people think there's a tough two years ahead. they think there will be a recession so i think what we're getting from jay powell is a lot of uncertainty where he's saying one thing but the rest of the country is realizing that's not accurate and are doing something different. charles: you mentioned president biden his poll numbers are incomplete freefall. his messaging to me is always, it's divisive,

it does seem to be accelerating in the wake of president biden's meeting with jay powell.g outperformers this month solar isn't the only renewable on a tear. how rising cts cldosou derail the green energy trend next. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. at adp, we use data-driven insights to design hr solutions to provide flexible pay options and greater workforce visibility today, so you can have more success tomorrow. ♪ one thing leads to another, yeah, yeah ♪ (vo) everyone knows to get wireless savings, you need to be on a family pla- ...oh... so you can have more success tomorrow. (jane) with visible, i get unlimited data for as low as $25 a month. no family needed. (vo) i guess i spoke too soon. visible. single-line, unlimited data as low as $25 a month. >>> welcome back one more thing that should be on your radar before we go. solar stocks, the invesco solar etf seeing nice gains thi

the third straight day after the fed hiked interest rates as expected it is really what chairman jay powell said that has investors putting on the rally caps. >>> it is not just the fed up next, a key policy decision from the bank of england we go live to england in a moment. >>> an opec meeting weighing russian sanctions. >>> and earnings season in full swing and another big company offering a bullish outlook on the get out and travel trade. >>> and inspiring america. we'll bring you the story of one business leader using innovative practices to elevate employees, consumers and create positive change it's thursday, may 5th, 2022 cinco de mayo. you are watching "worldwide exchange" here on cnbc >>> good morning welcome to the show. i'm dominic chu in for brian sullivan let's get to the markets and post-fed meeting rally in the stock market as expected, the central bank in america hiked the benchmark by .50s% .50% it is the most aggressive step in the fight against inflation which is hovering near 40-year highs. markets expect to raise rates aggressively chairman jay powell seemed to discoun

the op-ed comes ahead of the meeting with jay powell today at the white house. the sit down marks the first time since powell was tapped by biden and confirmed for a second term as fed chairman >>> a new version of the collapsed crypto luna is getting off to a bad start as it rolls out after reaching a peak of $19 on saturday and the new luna dropped to $4.39 hours later according to coin market cap data it has since settled at a price of around $5.90. binance says it will list luna starting today. >>> the kickoff to the summer travel season is facing serious hurdles. u.s. airlines cancelling more than 2,500 flights over the course of the memorial day holiday weekend. more than 1,500 coming just yesterday according to data from flight aware stormy weather in florida and new york and the mid-atlantic this weekend were a big part of the cancellations and delays dom, this comes as airlines are working to ramp up staffing to handle expected record travel demand this summer looking at some of the flights, it there are not as many flights as there used to be >> bettert

it's going to be keep your dumb talking jay powell here. and if he does get more hawkish, then you might not see the dollar selloff that many people are saying could have been. mark: indeed. it is all about frontloading. that's what we saw here today as well. we expect something similar from the federal reserve. as kathleen was saying, you can see that there are investors already beginning to be concerned that even though we've got nowhere near the peak of interest rates, where thinking about the possibly of a recession may be the next two years. as i said, we will be just as well aware of this as anybody else and they will want to get rates up to a level where it is useful for them, so that they have the ammunition to lower rates quickly. should they need to when they see these headwinds become really severe. and because a big slowdown in the economy. so it is all about frontloading and we could hear the fed say that they are willing to be more aggressive as kathleen hays was saying. 75 basis points has not been clearly mentioned, but cert

what does jay powell say to the president to not upset the june meetings and beyond? on't think there is much the fed can tell the white house regarding the allis he asked way. chair powell has been clear they will remain data-dependent but they are focused on inflation. if we see these inflation numbers remain elevated, they will continue with their 50 basis point increase. this meeting is about the white house and president biden being able to convince the american people that he is very much focused on inflation stop by having jay powell come to the white house and having this round table, he is even that perception to the american people that he is putting pressure on the fed to do whatever they need to do to bring in inflation. it gives the appearance of the white being focus but it's also giving that subtle indication of finger-pointing at the fed that they made a monetary policy mistake and not a fiscal policy mistake. tom: is job formation breaking? are you seeing tea leaves of a labor slowdown? >> not yet, we still saw a very strong april employment report and

are you going to advise jay powell. >> maria, i'm not a banker. i don't even have much of a fors background but i do know this much. when you put one bad thing on top of several bad things you will have more bad things. like i said, my concerned with the fed was always that they didn't start soon enough with wh modest differences and we have much greater demand than we have supply and i just don't know if -- if raising now on a market crash that's reading the tea least is going to be the answer. i will leave that to the experts and listen to what he has to say and i will give my two sents worth. again i wish it would start sooner and more modesty. maria: senator, before you go. we only have 20 seconds. what are the democrats going to do in terms of policy? are we going to see a further push to get build back better? >> i'm afraid we are. it's an irredeemable political situation and resigned themselves that is they are not going to win and do all the damage they can do in the meantime. >> senator, good to see you, thank

kathleen: i think jay powell is being so clear. this is the third time in a row he has pretty much said the same thing. they know they need to fight inflation and they know they should have started sooner hiking rates last year. now they are ready to go full speed ahead. he said they are going to keep pushing on rates until it is clear that inflation is coming down. here is what he said at a wall street journal event earlier today. chair powell: inflation is coming down and that's what we need to see. if that involves moving past broadly understood levels of neutral, we won't hesitate at all to do that. we won't. and honestly, we will go until we feel like we are at a place where we can say yes, financial conditions are in an appropriate place and we see inflation coming down. kathleen: he was asked about the neutral rate. some people saying it might be 3.5%, 4%, or higher. he agreed we will push as high as we have to. he said the economy is strong and can withstand tighter policy. if the basis point rate hikes are fine for now --

let's create romaine: president joe biden meeting with the fed chair, jay powell and janet yellen.nt biden: it starts with a simple proposition. respect the fed. respect the fed's independence, which i have done and will continue to do. my job is not to nominate -- not only to nominate highly qualified individuals, but to give them the space that they need to do their job. i will not interfere with their critically important work or responsibilities. chair powell and other leaders of the fed have a laser focus. there was a larger complement among board members. i look forward to chairman powell's continued leadership with the fed. thank you for coming in. [indiscernible] romaine: the president of the u.s. preparing to meet with the fed chair, jerome powell and joe biden's secretary. there are some other economic measures. we will bring that to you, but we want to move from that to a milestone here at the end of may. a lot of focus on equality and how we can strive for a more equal society. a professor of economics over at the university. it benefits us all. thank you for being here

charles: so, nomi, this is jay powell 3.0. the first jay powell went by the book.ristmas. the next jay powell walked by a homeless man week later had epiphany, changed course. powell 3.0. bill ackman says the fed is not doing their job. they should be much more aggressive fighting runaway inflation. the other jay powell we need to help everyone. we don't need to wreck the economy. there must be serious internal conflict. how do you read those tea leaves? >> i will go with jay powell 4.0. we're moving fast with what is happening in the economy and inflation, what the fed is doing. i do think they will raise rates in june. i think they will temper what they say in july. i think they will step back. they were looking what is happening with the markets, what is happening with the economy. wait a minute. now we've gone the wrong way the other direction, versus wrong way in the first direction. there will be a little schizo powell. charles: bostick telegraphed that. >> he did. there was something really crucial in these minutes. that, they made mention of treasury market

heading on a three quarters -- jay powell took that on the table. he said we are not doing that right now. it looks like we are going to do half increases over the next two years. you saw equity markets, stock market took off. host: a change -- still a lot of change in the market in a short. of time. what are the risks of all this happen? guest: the risk is you get some sort of very sharp market correction. the fed right now wants to see -- go down. they want to see the stock market weekend. , they need to see bond yields go up. that is the way they slow economic growth. the fed operates through financial markets and what they are trying to do when they raise interest rates is something that we refer to is tightening financial conditions. what that means is you are making it more expensive to borrow, you are making asset values go down. that is going to dampen investment. it will increase saving and it will slow demand in the economy. the reason inflation is high right now is because supply and demand are out of balance. the fed cannot do anything w

president biden meets with jay powell and janet yellen just after 1:00 eastern.te house national economic director spoke earlier with bloomberg, head of that meeting, which is going to focus, you guessed it, on inflation. >> we have unique economic strengths right now that position us well to focus on this challenge, bringing prices down. obviously the federal reserve plays a primary role that fiscal policy and the economic choices we make with congress play an important role as well. guy: joining us now, former fed governor randy croson are, in our professor at the blue school of business. is this a significant meeting, randy? is it anything more than a photo op? >> it's primarily a photo op. it shows the importance of the inflation issue but i don't think there is going to be any pressure put the president on jay powell. they know the fed has got to move, the fed is moving, i don't think they will try to stop that. alix: could the pressure come the other way question mark jay powell saying look, i can do all of this but i can't help gasoline prices, that's some

again that comment from jay powell that 75 basis point of a hike is not being actively considered at this point. he stressed this that the fomc relays the focus on the fed on the question of inflation, clearly scrutinizing the data when it comes to price hikes we are seeing across the u.s. but also illustrating what he sees as a threat to the u.s. economy and a number of times just underscoring his views about the tightness of the u.s. labor market. he still believes the fomc and the fed can engineer a soft landing for the u.s. economy. the details around the balance sheet runoff which will start in june. let's check back on the markets. 1.6% up on the ftse 100. unicredit earnings to factor in as well and the spanish ibex getting 1.5%. let's look how things are playing out across assets. it we are looking ahead to the bank of england as well. the ecb's panetta saying that there could be a potential stagnation. in terms of the futures stateside, you are seeing losses of zero 3% -- 0.3%. in terms of sterling, it is seeing weakness. we will see how the boe decision and any comments on t

jay powell hates the idea of removing accommodation that he helped to create. intentions. remember back in january of 2019 and powell had this epiphany, it hit him like a lightning bolt, he could craft policy in a way that would help all people. in order to do that, he had to swell the wealth effect that would eventually reach the entire society. no easy task. not all the public owns stocks. still, a pot of gold, right, sprimged all over the nation was bound to touch everyone, and guess what? eventually it did. but powell didn't count on someone else sprinkling trillions of dollars into the economy at the same time, and once the powder keg was sparked, he lost control. the market woke up today with the realization that powell will never stop loving his creation. there are no less than five federal reserve speakers tomorrow, and they will be shooting arrows like afro diet's son, cupid. so we've got more fed speak, they're going to try to come to the rescue. in the meantime, you've got an hour left. this is a critical hour, more so than ever. i want to bring in li

jay powell will ask a lot of questions of are you tipg inflation. we're pretty confident inflation will come down and no, we're not going overdo this and put this economy into the recession and that will be comforting to markets. >> steve, let me turn back to you and we'll talk about the interest rate question and let's talk about the balance sheet and the pace at which it may decline 9 trillion right you in. it's going to start at about 47 billion a month if i'm reading right between treasurys and mortgage backs and why didn't the fed go there sooner? that was a way to get into this tightening a little quicker. >> why didn't it go to 95 billion? >> no, why didn't it begin squeezing the balance sheet sooner that's number one and what did you make of the pace that it is embarking on now >> yeah. so i think that the fed not going sooner is one of the biggest mistakes the fed has made since i've been covering them they all sort of felt like they should have stopped buying assets they were doing so, tyler, incredibly through march. >> yeah. a time which

>> yes and jay powell is way too doveish. you have a negative gdp print, you are in a recession. so for him to get up there and say the economy is strong, he's either lying or he just doesn't know what he's doing and then for him to say that he's confident he can hike rates and avoid a recession, i think he's out of his mind there too. look, volatility is back in the market. we are now seeing stocks trade at greater than 1%. i think it's 87% of trading day so far this year which is a big shift from how stocks have been trading during the qe era going all the way to 2009. and, look, just like scott said, look, i manage money, i should be incredibly happy that the market rallied 3% in the last hour or so yesterday but look i think that says something about how doveish the fed hike is. i think we should have hiked 100 basis points. i know that's way out of consensus. i was hoping the fed would meet me in the middle. i'm happy it went up for me and my clients but i don't like when it goes up only to crash later on and if we don't

including jay powell we will see if it impacts bonds at all today we have been keeping our eye on ite have been looking at the oil market today we will keep our eye on it crude oil getting a boost after china seeing a recovery after positive signs the covid o outbreak is easing wti is at $114. >>> now with the top headlines with silvana henao >> no shortage of elon musk news two hours ago, he said twitter must publicly show it has less than 5% pspam accounts for his deal to go through he is accusing the social media company to not release accurate data he said he could seek a lower price for the deal because of that meantime the new york post is reporting that spacex is selling existing shares today. there is talk elon musk could be a seller musk has been looking to raise money for his twitter bid. he owed 44% of spacex shares as of august. >>> and abbott reached a deal with the government to open the factory in michigan. it was shut due to bacteria contamination. >>> 13f over what some of the worlds investors bought and sold in the first quarter warren buffett purchased 55 million s

jay powell, is he afraid of going up 75 basis points? >> he is not that type of guy.usually talks strongly. he doesn't want to disrupt what is a strong recovery going forward. inflation is high. he stopped using the word transitory so maybe he has the impression that the pressure will start to come off going forward. . dani: i'm waiting for them to change the word to pugnaciously. if you want to do something big, 75 basis points and then you think about it. dani: is it not at this point, something you need to do, you need to prepare for an even more hawkish, aggressive fed? >> i don't think they are there yet. the language might increase. they hawkish rate rise, given jay powell's history he seems to be a more cautious individual. francine: do we need caution, or will it lead to policy mistakes? as a fund manager how do you get through that? >> looking at the bank of england at the same time, we are living in the shadow of central banks. stocks are going to be heard but we need to look more fundamentally at the economy. the reopening, all the huge numbers, mgm came ou

and yes, a bipartisan vote in favor of jay powell, the senate confirmed jay powell on an 80-19 vote.house pointing to the fed' inflation-fighting efforts. bowel is widely expected, this doesn't change anything but shows both parties want the fed to fight price increases. haidi: our global economics and policy editor kathleen. let's look at futures in europe opening up after we saw european stocks dropping with the risk off move persisting on growth woes. investors are fleeing risk assets on worries about inflation, tightening monetary policy, we heard bearish remarks from central banks in that region recently. dax futures, .25% higher, msci europe, up .5% and dax futures higher put 25%. we are waiting to see the impacts of natural gas given the surge saw in the previous session with some shipments from russia disrupted. get a roundup of stories you need to get your day going into the's edition of "daybreak," and it is available on the mobile in the bloomberg anywhere app where you can customize settings to get news on different industries. this is bloomberg. ♪ ♪ haidi: a quick check

should jay powell if he will keep talking give it to us straight?rian wesbury will weigh in on that next. ♪ ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq who's on it with jardiance? we're 25 million prescriptions strong. don't worry i got it! we're managing type 2 diabetes... ...and heart risk. we're working up a sweat before coffee. and saying, “no thanks...” ...to a boston cream. jardiance is a once-daily pill that can reduce the risk of cardiovascular death for adults who also have known heart disease. so, it could help save your life from a heart attack or stroke. and jardiance lowers a1c. jardiance can cause serious side effects including... ...dehydration, genital yeast or urinary tract infections, and sudden kidney problems. ketoacidosis is a serious side effect that may be fatal. a rare, but life-thre

congrats on another interview with jay powell. it was great. what was your takeaway? convincing evidence that inflation's going to come down before they slow down their a rate of -- pace of rate increases. the fed hasn't raised by half a percentage point since 2000. they're raising rates at consecutive meetings. when alan greenspan was doing that in 1994, he wasn't doing it at every meeting. he was taking a break. meeting, break, meeting, break. so they're going fast. and when you go fast, there's a risk that you overdo it. it's hard to know when to start raising rates, the fed saw that last year, and it's hard to know when to stop. so when you go this fast and you want to see clear and and convincing evidence of a lagging indicator, inflation lags the economic data, you raise the risk that you tighten too much. maria: one speculation going into the last cpi number on wednesday was with, oh, you know, maybe inflation is peaking, right? you heard that from a loot of -- a lot of people. saying this could be the worst of it. it really budget. we got the pp if i at 11%, a

lisa: do you think the fed can be data-dependent when fed chair jay powell basically locked in the progression of rate hikes at 50 basis points over the next three sessions? julia: i think what chair powell expressed is enough confidence that the job market is strong enough, labor demand is strong enough that we can get two more 50 basis point rate they need to even consider slowing down or taking a look around. that just speaks to how incredibly strong the job market is. to tom's earlier reference to dickens, it is the best of times and the worst of times. in the labor market, it is the best of times for workers. we do see that balancing coming back into view after an extreme imbalance last year. tom: i am stunned by the charles dickens,. -- comments. julia: i was ready for you, tom. tom: you really nailed it. we can continue now. julia, we have a small issue with the hoover institution. michael mckee will speak to mr. quarles about the fed, and the fed action of the last 90 days where maybe they didn't act because they were trying to figure out the nomination policy -- process, i should say.

so i a lot of people feel that jay powell not only, who's been behind the curve for the last 7 or 8 monthsehind the curve. but i believe that powell honestly believes even though he refuses to use the word transitory, he really believes that inflation is transitory, and it's going to reverse on its own and that the fed is going to move very slowly. as diane swonk just said, 50 basis points still isn't bad, but i think the fed's going to stop somewhere around 2, 2.25, 2.5%, and the people that trade the long end of the markets both in futures as well as in treasuries did not like that. you sent your long bond today up to 3.20. and, you know, the correlation is such long rates go up, nasdaq stocks -- which are viewed as long duration assets -- go down. and look where we are on the nasdaq right now, down 5-6% which brought the s&p down and the dow along with it. so you've got a lot of problems out there, and we're hearing margin calls are happening as we speak. liz: okay, hold on. let's go back to margin calls. people borrow money to buy sock and to buy certain investments -- stock and certai

we think jay powell will not fan the flames. we will state data-dependent and go meeting by meeting stop a similar message to what he has delivered. that may end up looking a little dovish or neutral. jonathan: where is the consensus at the fed and where is the division and how will the chairman navigate the division in the news conference? >> it's been uncertain. the fed doesn't know how the world will evolve. they don't know how the inflation outlook will evolve. the consensus agrees the fed needs to ask for a nominal neutral rate which they believe is 2.5-3% by the end of the year but there is a wide range of views where they go from there. someone is be much higher well others are less certain the fed needs to be outright restrictive. over the near term, we think three in the market is pricing closer to four but after that, it will be data-dependent and we think the fed would like to provide forward guidance but they are still uncertain at this point. lisa: jay powell will give his press conference and answer sessions and th

switch today. >>> good morning fed chair jay powell celebrating the senate confirmation.t you wish for. he can't promise a soft landing. that story ahead. >>> coinbase shares fall to a new low. >>> just now, elon musk tweeting the twitter deal is temporarily on hold. twitter stock is cratering tesla soaring. it's friday, the 13th. dah-dah-dah. "squawk box" begins right now. >>> good morning welcome to "squawk box" here on cnbc we are live from the nasdaq market site from times square. i'm rebecca quick along with joe kernen and andrew ross sorkin. dow futures are up s&p futures youup 40.

lauren: jay powell just restored the credibility of the fed.ning statement at the news conference yesterday, i feel your pain, american people. inflation no longer transitory, it's real. so the fact that they're going to hike 50 basis points a couple of times and not do the 75, we could have seen a relief rally yesterday -- [inaudible conversations] stuart: i'm not buying it. >> the relief was that the fed is talking do havish again -- dovish again. that's not relief to -- lauren: recession is the word -- stuart: that was good. it was not boring, okay? it was not boring. lauren: quite right. [laughter] stuart: d.r. barton's with us, market guy, this morning. all right. you chime in on this one. the fed raises interest rates a half point, and at that precise moment the dow goes up 900 points. why don't you try to explain it. >> well, i think lauren and brian both had some great points, and i think it wraps into here, stuart, that the market hates uncertaintiment when there's uncertainty around in any form, that keeps the market depressed. what h

excellent comment from jay powell. tight labor market, consumers have seen wage gains. some of this eroded by inflation. it does not show signs there is a massive drop off in consumer. some of the big reopening trades are reflecting that. katie: think of the earnings we got this week from travel stocks. airbnb, expedia, booking. they all point to the same picture. pent-up demand for travel, for experiences. they consumer has been really really resilient. romaine: obviously this will be the key going forward as we keep an eye on inflation numbers. it is about consumer spending. not sure about ebay. i feel like that is an outlier. when you look at e-commerce stocks, even though they got beaten up after amazon earnings, you wonder what place consumer spending is in now? taylor: you could perhaps see downside to that. i know you love etsy. importantly, huge miss. romaine: i love it. do not buy etsy. [laughter] how about ebay and reunite it with paypal? tim: everything old is new again. romaine: hours of programming i just gave you. taylor: etsy second quarter revenue doesn'

jay powell opened the door to get above neutral if he has to.for the quarterly monetary policy tomorrow, he is speaking in the morning and said getting to neutral isn't going to be enough to get inflation down. he says the funds rate is going to need to be raised into restrictive territory, at least 1% above the fed to current view of the neutral rate of 2.5%. now, we asked the farmer president of the atlanta fed what he makes of the fed, are they behind the curve? are they going to have to tighten faster? he didn't exactly say, but he is willing to give the fed more space. >> they are now catching up. having said that, we have to watch how this economy evolves and we are what he seeing some signs of a labor market that is slowing a bit. that could take some of the edge off wage increases, which would have a beneficial effect on the inflation numbers. it is a wait-and-see situation as far as i am concerned. kathleen: quite a contrast from a couple years ago, when we were saying we would like to see maybe the labor market go down a little bit, co

some say that jay powell doesn't know what a soft landing is. let's look at the tech stocks. microsoft, amazon, meta, major losses for the day. one number that is important. worker output. a big surprise there. that level, productivity, an important number for the american economy, falling at the fastest space since 1947. really historic those numbers coming in. i have to tell you, all of the gains from wednesday are gone. we are worse than at zero here. we're seeing major sell-offs for the averages. we'll have to see what friday brings. always an interesting day for the markets. back to you. >> neil: watching the last couple days to where we stabbed. the rubber day could be tomorrow. an employment report, jobs report for the most just past will be teed up here. let's get the read where we go from here. susan li from the fox business network. we have kenny palcari also here with us. a lot of consternation or which was the reality, today or yesterday. >> doesn't it seems like the federal reserve and jim powell has lost most credibility on wall street? i'll say most. yesterday

. >>> fed chair jay powell said the central bank has the resolve to bring town inflation.toring price stability is an unconditional need even if there is pain involved the he did say in hindsight, it would have been better to raise rates earlier. he said inflation is way too high and it looks like ukrainian war effects may be longer lasting than expected. same thing for the china lock jon. he said all of that is going to make it harder for inflag to come do you happen, and it's going to be a very channeling task to try and tame inflation there could be some pain involved they are going to push ahead with rate increases, that the markets have been processing things pretty well can be and there is a risk we could have labor shortages. it feels like the natural rate is well above 3% as he was saying all of that, you did see the ten-year continue to take higher on the yield. we'll continue to watch that today. that conversation from jay powell this week at least so far, we have been watching >>> in the meantime, in the uk, inflation soared to a 40-year high led by food prices,

tell to that communist china but jay powell measures his words. he wants to take the air out of everything i just mentioned. if you look at the stock market, sadly for the bulls or good for the economy and the country, he's winning frank in california. frank? frank? >> caller: yes can you hear me. >> you're up i hear you pretty good even though my right ear is clogged because i flew with a cold what is up >> caller: i'm a first time caller and i'm calling about roku i bought in at 63 and again at 83 i watched it go up to 490 or so. come back down i think it is sitting at 105 now. >> 103, yeah. >> caller: yeah. and i know anthony woods and his team are positive on the stock but i wanted your opinion. is it time to get out or should i hold on. >> this is one of those names that has hurt because it is also owned by cathie wood or it is viewed as her company. you know, look, i think it is six and a half a dozen to the other. if you go up ten, you go down ten. there is no edge to joining roku and people don't trust streaming. to brett in texas. >> booy

they must have renewed that jay powell sitcom. data down three. >> caribbean down 2.5% >> i'm talking about a bermt level selling that is just incredible >> it is it's brutal. >> like, oh, nike was only down three, david >> when does it end, jim that's what everybody watching wants to know. when does it end >> when they renew jay powell. cliffhanger. season two, jay powell >> i might pay -- what does netflix cost now $14.99. i don't know i was borrowing it from you. >> don't tell them that. they'll disconnect you >> you can sit through a few ads and it will cost you less. >> i'm considering family. >> you're on the plan. i'll take care of you. i got you spotify too. don't you worry. >> i've been using that. i'm sorry. it turned out to be kid' flames plus one >> i've been wondering about play daily play list >> we'll get out of here so rick can give us pmi in a couple minutes. but energy is leading this morning, up almost 20 v 2% keep your eyes on bonds today. press conference 259:30. adp coming in light. at fidelity, your dedicate

charles: folks still to come, the real jay powell, will he please stand up? think he did, guess what he is admitting. i will tell you later. jeff bezos said joe manchin saved the biden administration from itself. we'll get reaction on that after the break. ♪. if you invest in the s&p 500 your portfolio may be too concentrated in big companies. this can leave it imbalanced and exposed when performance varies. invesco's s&p 500 equal weight etf, rsp, is spread equally across the s&p 500, which reduces potential concentration risk and helps keep your portfolio in balance. stay in balance with invesco's rsp. you know liberty mutual customizes your car insurance, so you only pay for what you need? like how i customized this scarf? check out this backpack i made for marco. only pay for what you need. ♪liberty. liberty. liberty. liberty.♪ only pay for what you need. ♪liberty. liberty. liberty. liberty.♪ living with metastatic breast cancer means being relentless. because every day matters. and having more of them is possible with verzenio. the only one of its kind p

jay powell says a jumbo m not on the cards. u.s. stocks pose their biggest post fed day gain in a decade. bank of england is up next. crude steadies after yesterday's gain on the eu banning russian oil. it is a reappraisal in this market. it's not dovish to hike 50 basis points, but a dovish move in this market. manus: absolutely, the biggest hike in rates since 2000. the stock market loved it, it was quite literally euphoric. i want to show you the bond market. the long end of the curve does not believe that that has got hold of inflation. -- the fed has got hold of inflation. jumbo rate were taken off the table. 10-year futures down this morning. you are looking at the long end, the 30 paper in futures, prices decline, yields rising slightly higher. crude up after a 5% rally on the eu banning russian group. jamie dimon says you could have a long enduring war. $30 of risk premium is not in there. and the dollar steadies again. you are seeing hybrid currencies drop as zero covid endures. dani: they euphoria th

eastern time interest rate decision and a press conference with jay powell after that with all but certain a 50 basis point hike the fed hasn't hiked by half a point in 22 years and it hasn't raised rates of back-to-back meetings going all the way back to 2006. joining me now is former federal chair and fed chair roger ferguson and a cnbc krcontribut. maybe this is a foregone conclusion we know it's going to be 50 basis the points what exactly would powell say that would upset the apple cart either way bullishly or bearishly for the markets? >> i think there are a couple of things that could come out that might upset the market one will be to see how many dissents there are, if any i don't expect any, but the last time around when they were 25 basis points, there was one dissent and we saw minutes and that suggested more people supported 50 i would look to see did anyone dissent in favor of more or less and that would be telling there's a bit more drama behind the scenes we'll wait to see more that's one thing secondly, he has been consistent in his statement that the economy is strong eno

jay powell did say if they have to take the key rate above neutral, they will do it. they will do it quickly. but it is clear richard clarida is in the camp you are not planning for enough. it is interesting -- for a lot of us, an extreme version of what a lot of economies are in. your economy could slow, particularly if you raise rates aggressively. but inflation is so high, you have to tighten. not as extreme as a situation with the boe. same for the rba, not as extreme. same for the reserve bank of india. that is what is troubling for investors. they are using it as tools. central banks have tools. but number one, not only do their tools only do so much, but when you want to use tools on the opposite direction, you cannot fight inflation and stimulate growth at the same time. that is what is so tough for the fed. and it is making it tough for investors. >> what does the april u.s. jobs report mean for fed policy? i ask that question also because we've got inflation rising, and unemployment -- the rba coming out saying they see unemployment at lows not seen since 19

there's at least one front in this war where jay powell does keep winning and it's one that you and i don't want to hear it's one that is driving us crazy. he's winning the fight against the stock market. [ applause ] >> or remember the stock market is an amazing source of funds to buy things, raise kids, retire with them, take vacations, and it's all being obliterated right before our eyes. once again, the dow lost 327 points, the s&p toppled 1.65%, f nasdaq plunged 3.18%. it just kept dripping and dripping and dripping. plus, we had more large cap disappointments this evening it's not letting up. and it is, as the late jackie gleason would say a revolting development. these are just big averages. it's more obvious when you look at the collapse of the ipo market and see the stocks and the russell 1,000 which contains the thousand largest pubically craded companies we're witnessing the most extreme wealth destruction since the dotcom bust in 2000 or maybe 2008/2009. i want to put this moment in perspective and asked cnbc's statistician to come up with a list of the worst performers in

chairman jay powell says they are not going to be more aggressive than that this year, but is that astion johnny right out of foxbusiness exclusive is the former president of the kansas city federal reserve bank thomas hoenig. it's great to have it this weekend, thanks so much for being here. that was one reason the stock market rally this week was jay powell said they are not considering 75 basis points and a hike. your thoughts on whether or not they should. >> i think they are pretty much behind the curve. they at least have to consider it 75 basis points as they move forward from here. i also understand where they are to be cautious because if you think about it, they continue to move at 50 basis points bite major at the be close to 2% that is increasing rates by a factor of seven or eight times, that is a pretty big increase relative to where they were in a fairly short period of time so they are nervous. i think the markets are nervous about that. they have to get the rates up. inflation has got to be brought under control. and i think probably be talking five basis points befo

could china have insisted on doing no commerce during this period i just think we have to give jay powell a break over the thanksgiving weekend, we heard there was another version of covid none of us knew whether it was more serious we were ill-advised by our own government because they weren't getting the right document is jay powell suddenly a doctor who is trying to figure out if omicron is going to slow us down, and it does indeed do that in january and did we really count on putin inn invading ukraine i keep defending jay powell if only just because the series of events are so, i would say, almost science fiction science fiction meaning that a disease is controlling the country. >> awful lot coming at him finally, we do have jeff bezos putting on his favorite elon musk hat i guess he's competing now with musk in the twitterverse as well, feeling he has to be more outspoken, mr. bezos, so coming after president biden. perhaps deservedly so because this was kind of a silly tweet inflation and raising taxes on corporations bezos basically saying there should be a disinformation board th

jay powell says the labor market is extremely tight. you want to go back to the 1990's.n greenspan raised interest rates 300 basis points and we did not have a recession. instead we got a very long and strong expansion. i guess there are two paths we can follow from here. jonathan: payrolls on friday. cpi next week. one of the estimates from morgan stanley. 8.1% down from 8.5%. away from payrolls into cpi, what is the focus for you? michael: it will be the poor rate. we know we will see energy and food price pressures continue, especially with ukraine and russia. is the core rate slowing down? we saw that with the pce numbers. if the core rate is moderating that would give the fed some hope their interest rate increases would have some effect. we also want to look at what housing is doing. that will take a long time to come down. jonathan: awesome work yesterday. great to see you back in the room in the news conference. isn't that good to see, to get them back together again? it is a reunion for economists in washington. tom: we are seeing that in all sorts of things and

i don't know why jay powell has been reappointed. he certainly doesn't deserve it.ple don't have confidence. he was out there yesterday, laura, and he tried to whitewash the whole problem and he sounded like joe biden blaming inflation on vladimir putin and covid. that's nonsense. the problem was too much federal spending and too much at all bond too much central bank presence. stop whitewashing the problem and go to it, otherwise the longer they wait in the more they try to avoid the issues, which is what biden's doing. at the worst of the recessions be. the worst possible combination is inflammatory inflation. my concern right now is again, the fed is not taking action, we are spending too much in washington. these guys are talking about raising taxes. >> laura: they should all be fired. any one of the peoples, any single one, yelling, jay powell, economic advisors should any of these people be in this position after they blew off the inflation concerns that you raised and larry summers raised one year ago? because in corporate america they would have been fired.

kudos to jay powell, and 80-19 vote, for the last decade or two the number of people voting in for fedless, something truly bipartisan happened with congress and that was the jay powell appointments. stuart: charles: let's switch to the administration. there seems to be a fishing expedition. if you listen between the lines when president biden speaks they want to get to the meat processing business or see some companies and they are talking more and more price controls. how much of a mistake would that be? >> a tremendous mistake. nancy pelosi has a bill coming on the floor that they call excess prices of gasoline. somebody in washington will decide what a gallon of gas is. what typically happens when you fix the price is when refiners can't make money they stop refining as you run out of product and you have 70s style gas lines all over again. you will have a supply shortage if you fix the price. it is unfortunate the price has to go up. the answer is always increase the supply. why minute like the price of it? charles: i have a minute to go. a lot of movement, the bond yields all ove

a markets, that is the case, but it doesn't seem it changes much for jay powell, what do you see?p much of a policy signal from that meeting, kathleen. it speaks to the gravity of the situation when you have the white house calling in the head of the fed. president biden did go out of his way to say the fed is independent, but the u.s. has a serious inflation problem and policymakers need to get on top of it. and there are u.s. elections coming up later in the year. in terms of the fed, they have already turned hawkish to moves, 50 basis points, they are expected to do that again in june and july. not clear what different powell is going to be doing, but other central banks will see that you have the white house calling the head of the fed, it doesn't show the gravity of the situation and it is a problem facing central banks all around the world. kathleen: the central bank community hears this around the world. chief asia correspondent and current -- and carbon -- enda curren. a bit of a bounceback -- european stock futures up .7%. msci europe though, down .9%. german stocks, open