. >>> that after fed chair jay powell dashed hopes of a march interest rate cut. he says it is not the base case, not at this time. >>> the regional bank reckoning strikes again after the shares of the new york community bank has the worst day since last year. >>> and elon musk looking to reincorporate tesla outside of delaware after the pay package was rejected >>> we are getting set for super thursday with the biggest names prepare to report earnings it's thursday, february 1st, 2024 you're watching "worldwide exchange" right here on cnbc ♪ >>> good morning and welcome to "worldwide exchange. i'm frank holland. let's start your day as we kickoff the hour and the first trading day of the new month with the look at u.s. stock futures. you are seeing the dow opening up 40 points higher. nasdaq .50% higher right now the action in the pre-market is after the fed's january surprise yesterday where jay powell and the fmoc shot down any hopes for an interest rate cut this march. >> based on the meeting today, i would tell you that i don't think it's likely that the comm

jay powell reiterating his call that central bank rate cuts will likely not be happening in march. view on "60 minutes," last night, powell said the fed is on track to cut three times this year and pushed whether it had been too slow to recognize inflation. >> in hindsight, it would have been better to have tightened policy earlier. we thought the economy was so dynamic it would fix itself quickly. we thought that inflation would go away quickly without intervention. in the fourth quarter of 2021, it was clear inflation was not transitory in the sense i mentioned. >>> the senate releasing details of the $118 billion bipartisan plan for israel, ukraine and border security. senate majority leader chuck schumer says the vote is scheduled for wednesday and president biden signalled support for the measure. if approved, it will still need to go to the house where it faces challenges from republican members. >>> four vegas hotel and casinos reach a deal. the deal with the culinary workers union and four queens and main street covers over 1,000 workers. the restaurants near the strip have

yes jay powell is preparing to rule out march in terms of rate cuts. hat begs the question, what was the fed waiting to see? let's hear from the chair. chair powell: we want to see more good data. it is not that we are looking for better data. it is that we are looking for a continuation of the good data we have been seeing. an example is inflation. we have six months of good inflation data. is that sending us a true signal that we are in fact on a path, a sustainable pass, down to 2% inflation? annabelle: let's bring in hartmut issel from ubs world of joining us in -- from our singapore studio. the market is perhaps surprised or not liking what we heard from powell after the meeting. did anything shock you out of it? hartmut: not so much. you have to see that the economy is not weak enough for an emergency rate cut. yes, the rate cuts are coming. we thought all along there was never much pressing evidence that you need to do it right away. the case we have i think is a forecasted this year starting perhaps in may. then really what comes inside is the f

to economy would you reapoint jay powell. >> no, i wouldn't do that no. >>. maria: because? missed in addition. he did is mr. no, i wouldn't be. maria: choice for fed chairman. >> i would have a couple choices can't tell you now. >> your take on this central bank digital currency you pledged to bank is that surveillance. >> very dangerous one day you don't have money in your account can be very dangerous thing, the other thing that i think, is maybe the most dangerous thing out there, of anything because no real solution, the ai as they call it, it is so scary i saw somebody ripping me off other day had me making a speech about their product i said i didn't endorse that i am telling you you can't tell difference looks like i am endorsing it you can get into words other things something has to be done, about this and it has to be so done fast, nobody really knows what to do, the technology is so good, so powerful, that what you say in interview almost doesn't matter anymore they can change things around nobody can tell the difference even experts can't tell the difference, th

maria: would you reappoint jay powell. >> no i would not do that. maria: because it?e missed inflation. >> he did miss but no. >> who is your choice for fed chairman. >> have a couple choices but i can't tell you now. >> a lot of news joe pinion i would get your reaction from massive inflation again spikes in oil prices the 45th president powell may cut rates for biden to be political and i won't reappoint jay powell to the feds, your thoughts. >> i think jay powell has made it clear he wants no inflation and he does not want that to be his epigraph, conversely joe biden doing everything possible to make sure there was not a recession on his watch, the talk of work on the rica is a big thing as it relates to president trump talking about some of those union members and what they want compared to the reiki file in a little bit before the show started, what the union workers want is the economy that we had under president trump 7 million jobs created pre-covid and what the union members want is to make sure the savings accounts are good get eviscerated and people covere

jay powell said it would be transitory. so did all the economists.shop us from pointing. we had to much extra cash we never stopped. feels like this is the one weird part of all of this no one really talks about, you can't just pour trillions of dollars into the economy and think it is going to abnormal economy? >> exactly, which is why you saw today with cpi, charles, a lot of components in that are actually now reaccelerating in january because a lot of what happened, i think after covid was structural shift in the economy. we keep asking ourselves where's the recession? when is inflation going to come down? the models are not predicting it. i think the models are wrong because there has been a structural shift. the input into the models are not giving us the correct output you would get. i was looking at the cpi report. of 19 major components, 11 are reaccelerating in january and they are sticky. it is food, shelter, air fare. those are things not necessarily coming down. this is posed a more structural problem that is going on. after the cpi repo

. >>> european equities moderate despite losses on wall street after fed chair jay powell pushes backn the march rate cuts >> we will look at the meeting based on the meeting today, i will tell you i don't think it is likely the committee will reach a level of confidence by march. >>> and volvo races to the top of the stoxx 600 after announcing it will stop funding polstar. the ceo strikes a bullish tone to cnbc. >> a lot of hard work and the foundational work allows us to have a strong 2024 and beyond. >>> good morning yesterday was the major focus for the investment community with the fed meeting after the fed chair disappointed ins terms of the potential to deliver on the march rate cut that was a key market for markets yesterday. we look at the bank of england meeting today. we are tracking earnings this is super thursday with lots of names with results. you can see it is a mixed bag. we have deutsche bank in the money. those names are trading in the green with julius baer up 3.3% the german lender reporting gains after the drop of fourth quarter profit and raising revenue outlook

coming up next, jay powell, remember him? jay powell on cbs pulled the plug on lower interest rate.tocks didn't seem to like it was they closed down to 75 points and down 400 points. we are going to talk about foxbusiness taylor briggs and breitbart john party. catch kudlow friday 4:00 p.m. your on foxbusiness. can't give us at 4:00? text your favorite 9-year-old and she will show you how to dvr the show and you will see how easily we can fix a broken america. i'm kudlow, we'll be right back. ♪ jay powell lower interest rates and some solutions megan much. first let's head to the white house to hear what edward lawrence has to say. you're watching 60 minutes last night. >> i did see the interview, it was interesting. federal reserve chairman waiting for the right moment rate and he said that on his interview will be hinted at the fact that the first cut might be in may. >> almost all, almost all of the 19 participants who sat at this table believe there will be appropriate and the most likely case for us to cut the federal funds rate this year. >> that forecasted three rate cuts, fe

coming up next, jay powell, remember him? jay powell on cbs pulled the plug on lower interest rate.tocks didn't seem to like it was they closed down to 75 points and down 400 points. we are going to talk about foxbusiness taylor briggs and breitbart john party. catch kudlow friday 4:00 p.m. your on foxbusiness. can't give us at 4:00? text your favorite 9-year-old and she will show you how to dvr the show and you will see how easily we can fix a broken america. i'm kudlow, we'll be right back. ♪ (fisher investments) at fisher investments we may look like other money managers, but we're different. (other money manager) you can't be that different. (fisher investments) we are. we have a team of specialists not only in investing, but also also in financial and estate planning and more. (other money manager) your clients rely on you for all that? (fisher investments) yes. and as a fiduciary, we always put their interests first. (other money manager) but you still sell commission -based products, right? (fisher investments) no. we have a simple management fee structured so we do better wh

jay powell made a lot of waves on several fronts including america's role in the world.hat america's engagement with the rest of the world has been a key factor in our economic success. he says since world war ii the united states has been the indispensable nation supporting a defending democracy, security arrangements and economic arrangements. there is absolutely no doubt that this is been true. the world was emerging from rubble in world war ii, the timing for the comments are interesting, considering earlier that day former president trump told maria bartiromo that when he would like to potentially lift tariffs on chinese goods 60%. jay powell is old-school republican they hate tariffs and ironically tariffs were a mainstay of the republican party in the tariffs actually help to spark their worrying 20s and opponent of tariffs say the president trump was going to scare china and of course joe biden left most of them in place and china has not done much really feel good china stock market it's completely unhinged it's collapsing and falling apart, ironically one of th

jay powell is correct, look, we can wait. the stock market at all-time highs.he economy is moving along. where is the restriction? who is being pinched. now somebody is but economy-wide you really aren't, and if you aren't being restricted then you know doesn't have to really rush to cut rates and risk being arthur burns. charles: you know, jim, you mentioned like how this dynamic has been in place for a couple years with the street wanting the fed to be accommodative. i got to think it goes pack to alan greenspan and how he got the title of the mace slow. i don't know. i would rather see the stock market up because the economy is great. i think that connection has been severed for a long time. i want to ask you something about inflation. it is political. president biden has now declared war on supermarkets. that is how you bring down the price of foods. i know he is deflecting from his own role in spiking inflation. right here, folks this is kroger, the largest pure supermarket out there, their net margins peaked in 2018. they have been essentially coming down

maria: what about that, jay powell this week took the prospect of a rate cut and march off the table,aybe it is june but there were getting close to the election in november. president trump thinks he's going to cut rates to help joe biden. >> if he cuts rates, that the best explanation. i hope you won't and i think jay powell is a man of honor used to have lunch with him every month in the white house and the fact is that the economy is strong at the jobs numbers are strong much stronger than i expected or any of us expected it inflation has not gone down to 2% by some measures have a long list and a natural review article that i just wrote that inflation looks like it might be accelerating which is consistent with the job number. so the fed to pricing or the market to pricing 100% chance of said rate cuts like five or six meetings in a row this year is crazy and the only exhalation is a market things the fed is going to boost the economy provided. >> exactly what ron told me, your thoughts and how this year plays out economically speaking, what is your expectation. >> i think there

jay powell speaking to cbs. you have had a repricing, markets expecting, betting on a 20% chance of a cut in march down from 40%. if it's 100 futures pointing to a gains of about 41 of a percent. iron ore is high in the session, so miners could get a boost. s&p futures pointing lower by .2 of 1%. nasdaq futures up by a similar amount pointing lower by around 38 points. let's flip the board and have a look at the cross asset board as we think about stronger dollar and what that will do to sentiment in the session. bloomberg dollar index up, euro-dollar at 107. yields a begin five basis points after the 14 basis point move on the back of the stronger than expected jobs data and expectations that the fed will start its cutting cycle later than many had expected. the pound at 126 down .2 of 1% and brent, not a huge amount of movement. given the action in the middle east over the weekend, $77 per barrel as the houthis threatened to retaliate against those strikes over the weekend. let's bring it the earnings story wh

a risk cognitive markets as fears of bank loan losses are reunited and jay powell pours cold water on the rate cuts next month. >> i don't think it is likely the committee will reach a level of competence by the march meeting to identify march is the time to do that, but that is to be seen. tom: the bank of england's next up with expectations of a core inflation forecast potentially opening the door to guidance on using. earnings season rolls on with european banks taking center stage, and deutsche bank says it will cut 3500 jobs. we will bring you the numbers work bmp and julius baer. the red head as her mother's job cuts, but the buyback would always begin focus for analysts, and the detail is coming through with 675 million euros being outlined in terms of plans for a buyback. the q4 was amiss for deutsche bank in terms of what this all in terms of tech sales and trading revenue coming in low estimates. net revenue in the fourth quarter missing in terms of estimates coming in at 6.6 billion euros. the estimates had been for 6.8 billion. we hear from the cfo later this hour. that in

let's show you the futures after jay powell's comments.bout the comments in a minute right now the dow looking open after selling off, dow up about 38 points, nasdaq looking to open 98 points higher. the s&p 500 looking to open 17.5 points higher. >>> jay powell discouraged investor hopes for rate cuts steve liesman joins us now with more steve? >> good morning, melissa the fed acknowledging cuts are on the way, but disappointing markets when fed chair jay powell took the march rate cuts off the table. >> based on the meeting today, i would tell you that i don't think it is likely that the committee will reach a level of confidence by the time of the march meeting to identify march as the time to do that but that's to be seen. >> all right, so the fed policy statement took cuts off the table, said cuts are coming, but the committee needs more confidence that inflation is heading back down toward 2% target, even though it has been there for six months it found risks better balance between inflation and unemployment mandates. the probability

he said he won't reappoint jay powell and said he doesn't like what jay powell will do, cut rates inn election year. we have also heard from senator sharon brown, elizabeth warren telling jay powell that he should be cutting rates. is any of this helpful or appropriate? julie: i'm not going to speak for what other people are calling for. the president has said over and over that we have to build an economy in this country from the middle out and bottom up. starting with working people. leaving no one behind. this jobs report demonstrates that is working. we have seen wages increase. the more money in workers pockets is a bad thing you will never hear me say. the president says we don't just work for our income, we do it because it digs -- brings dignity, respect, and breathing room. ann marie: thank you for your time today. acting labor secretary. katie: a big thanks to anne-marie. acting labor tear -- secretary julie siu. how are traders digesting the result -- results of the week. this is bloomberg. ♪ ♪ (upbeat music) ♪ ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) -awww. -awww. -awww. -nope. ( ♪♪ ) consta

we are hearing from jay powell at the moment. really, in terms of, this is, of course, an interview when it comes to the 16 minimal -- 60 minutes interview on cbs saying it's unlikely the fed will have the confidence to cut in march. that rate forecasts have not changed much since december. that integrity is priceless. they don't consider politics. lots of concerns as to how potentially the fed might be impacted going into a key political year for the u.s., not to mention the geopolitical over the you spoke about at the top. the risk of moving to inflation settling above 2%. the fed is on path to price stability. but, they are committed to fully with story and that's restoring price stability there. pandemic affects and inflation. they don't see the economic turmoil of china as having a big impact on the u.s.. we have talked a lot about as to whether that sported deflation rate spiral could it impact major economies outside china. annabelle: right. we are seeing the story of u.s. strength and china not playing too much into the s

jay powell, remember him? he says no interest rate cuts.tocks get slammed we have "breitbart"'s john carney, our own taylor riggs to talk about that. will this election be about democratic lawfare, sabotage, inner recollection? this may all backfire and bury biden instead. we have steve hilton and molly e hemingway. ways and means committee chair jason smith. he will cut taxes. fox news congressional correspondent chad pergram live on capitol hill. chad, what can you help us? >> reporter: good afternoon, larry. the bill provides $20 billion for border security. it provides shut down of the border after 5000 in a week. house gop is killing the bill. >> are you killing the bill because of political considerations. >> i don't believe the it meets the criteria necessary to solve the problem. that is what we are about here. it is our responsibility to do it. >> reporter: however the bill does provide $650 million to extend the border wall plus the border patrol supports the package. this is why some democrats are exasperated with republicans dis

that's the message from jay powell. >>> new over the weekend, u.s. and uk launching air strikes on iraq, syria and yemen. keir simmons has more on what is happening. he is on location. keir, what can you tell us? >> reporter: becky, good morning to you. the headline for cnbc viewers this morning has to be just no sign of a deescalation in the red sea and the gulf of aden. houthi rebel he s declaring the have the ability to interrupt the shipping lane there. that comes after the strikes you mentioned by the u.s. overnight and over the weekend, the biggest strikes against the houthis so far, 36 strikes against 13 targets the u.s. says. here in iraq, the night before that, here in iraq and syria, we saw an onslaught from the u.s. against the iraqi and syrian border targeting the iranian-backed militias. the border running along jordan where tower 22 is located where the three u.s. servicemen and women were killed. b-1 bombers taking off from the united states to take part in the operation just as the bodies of those servicemen and women were arriving ho

jay powell is clear they are moving toward cutting. >> jay powell was clear on a lot the things.ink jay powell said for months before that posture pivot in december that a hike was still on the table. i still believe it to be there in terms of it being more likely than a cut in the first half. let's go back to the other data that kicked off the rally. core pci. we celebrated a paradigm up to 2% annualized. we jumped back in the 30-point b bandwidth. we cannot call the fight with inflation over. go ahead. >> go ahead. >> you look incredulous. >> just for context, you are the most bearish people on wall street. you may be the only person calling for a possible hike before a cut. some people telling us and i talked to others who said we believe a 50-point basis cut. >> yes. those possibilities were 90% two months ago and now down to 15%. we are all trying to figure it out. i want to be clear about these words, frank, i think it is more likely we get a hike before we get a cut. >> contrary to say the least. i want to talk about the big stock story this morning which is disney. what d

jay powell said, na, i don't think so because of the rate cuts.l street did not like it one bit. here is the thing, this is the irony maybe why the market is up, they're still expecting at least six rate cuts. you have one, two, three, four, five six, sixth one in the december meeting. they won't start in march but start perhaps in may. we'll see. of course many on the street still kind of think again like i said that march is in play here. of course a lot of that is going to depend because tomorrow we get the jobs data and it happens, you know what? all of this stuff can turn upside down. so this morning the stock market has sort of retraced that temper tantrum of selling yesterday but there is still a lot of fresh anxiety of course not only in addition to the jobs report and those two earnings reports but there is whole lot of other data between now and the weekend. i want to bring in my first guest, he has seen wall street temper tantrums, maybe a couple of them in his career, slatestone's kenny polcari. kenny, the taper tantrum, rather, the mo

jay powell acknowledging, perhaps, that the rate cut or the hope for rate cuts got ahead of itself. just acknowledging it doesn't chai change what we have seen in the last six weeks. didn't we know the economy was stronger with the data points and near-term cuts weren't likely? >> good morning, joe. we knew the economy was looking strong. if you look at the economic data coming in for the last six weeks or so, it is hard to debate fed chair powell should cut rates. there is the belief he can overdo it and not do it soon enough and that can change the turn of things in the economy. you know, i think the market pricing in march cuts last year was, you know, not very accurate and unlikely to happen. i don't expect him to cut any time soon. i think we are looking at the second half of the year. i don't think it matters uch. we have 80% of companies reporting 8% year over year growth beats across the board. particularly the tech names. the jobs are strong and the consumer is strong. loads of cash to come into the market. it seems to be okay for the economy. we have the soft landing. infl

if i was jay powell, i would not be that explicit of taking the march cut off the table.t is good to hear the pivot we saw the data before march we could see softer data to necessitate a march cut or urge one. >> ross, i know you will watch the inflation reports. we have the report yesterday q4 u.s. productivity estimate is 2.5% the actual is 3.3% a very big beat there. why is that so meaningful to you? >> productivity is the secret sauce of the economy how we produce more with the same input time, money, resources you heard about the year of efficiency some of the tech companies boosting margins and doing a lot with a little. i think it is really important and it is a noisy data set the third straight quarter of above consensus and above average productivity growth. whether it is technology or companies buckling down in the higher rate environment and being efficient is a good sign for the economy and good sign for growth in the 2020s. >> you are bullish on the economy. you are saying you would put money into industrials why is now the time to go into industrials? >> the

that the fed does not want to do anything too close to the november election, does not affect jay powell'sking. >> i doubt it but i'm not inside of his head, i do truly believe in the independence of the federal reserve he is increasingly felt compelled to address that because he starting to get ask questions about it, there's plenty of instances in history where loosening was occurring or tightening was occurring during the presidential election. admittedly in most cases it was already underway and it just persisted through the election. there is some chatter if they don't cut by june or july with the inclination be to wait? again, i have no idea. i think it's premature to be switching the bat from march to may because you have a fed that is data dependent, as much as it depend on the data between now and march into your point the january jobs report essentially took off the table what jay powell took off the table at the most recent fed meeting. but to suggest it's one meeting later, the data will dictate the timing of cutting. jack: i want to ask you about investing but one more economi

you will watch out for services ism numbers coming out in terms of data later today. >>> jay powell sayshe federal re reserve expect to make three cuts this year. he told "60 minutes" that the rate setting committee expects the rates to come down from the 23-year high this year. powell expanded on the comments after wednesday's fed decision which saw the bank to vote to hold rates where they are and saying there is a risk of moving too soon. >> we have a strong economy. growth is going on at a solid pace. the labor market is strong at 3.7% unemployment. with the economy strong like that, we the feel we can approach the question of when to begin to reduce interest rates carefully. we want more evidence that inflation is moving down to 2%. we have some confidence in that. our confidence is rising. confi. >> money markets are overwhelmingly predicting the fmoc will hold rates at the next meeting. the expectation of the hold of 50%- higher than a month ago. traders were expecting six cuts, but pulled back sharply after the strong jobs report on friday. the ten-year yield spiking overnight as

jay powell pushed back against that.less talked about aspects of his speech or his discussion on 60 minutes. he basically said is not as a systemic issue -- said it is not a systemic issue. jonathan: we can move onto the next asset class, foreign exchange. highly intuitive stuff, yields are up. right now, euro-dollar, 107.56. -- 1.0756. an interview on 60 minutes with cbs, powell reiterated his -- reiterated that march is unlikely, saying the danger is moving too soon and the really good readings we have had for the last six months somehow turn out not to be a true indicator of where inflation is heading. we talked about this wednesday, the discomfort around this story. lisa: especially given that they got it wrong when it came to the surge in inflation. the data has been almost too good. we heard this over the weekend. peter scheer at academy securities put it this way. this is the first time in months i felt the need to step back and see if i am not giving the economy enough credit. he is not alone. how do you factor i

more good news on the economic front today and more pushback on premature rate cuts from jay powell.re does that leave you and your money? plus, ai needs h20 and that's putting this company in a pretty good position. it also just moved into a top ten spot on cnbc's just 100 list. the name and the ceo ahead. and a new quality concern for boeing witness again involving supplier spiro aerosystems and the company on deck to report. we have the action, the story and the trade for that stock and two others in earnings exchange and we'll get to all of that and we'll get to today's markets and mr. dominic chu and the numbers are in a lot of red. >> it's not really pervasive and not terrible yet and we're a quarter of a record away from the last couple of days here and right now the dow industrials are down .75% and the s&p 500 is at 4944. it's down 14 points and roughly one quarter of 1% and to give you an idea at the highs of the session we were down one point and down 40 points at the low and considerably off the lower part of the intraday dating range for the intraday 500. so keep an eye

he said of course jay powell's going to do whatever it takes to keep the guy in place who appointed himnd who -- and that would be joe biden. so i don't know if that's the case. but look, you mentioned the election year, mark, and they could manipulate certain things so that inflation looks better toward the election, right? i mean, you know, they can make sure that there's oil on the market and do deals with saudi arabia to ensure that oil is flowing so keep oil prices lower and that's a key part of the cpi. i don't know. what do you think in terms of how the election year changes things? you mentioned it earlier that it's volatile. i'm wondering if all of these bad headlines elevated oil, elevated food, pce that could be hotter than expected, will they really materialize or will there be efforts to take things down going into the election? >> look, i mean, policy can certainly be used to try to influence the outcome of the election. but to everything that's just been talked about, i mean, inflation is actually beginning to reaccelerate. i mean, the beginning of the year there were exp

this is why jay powell is so anxious about cutting rates too soon.you looked at the number surprised to the upside came in at 53.4 that shows expansion i believe it's multiple expansion 13 and a row especially for the prices paid index which is the inflation piece of it, the prices paid came in at 64 previous month 57. be careful because as you start to criticize jay powell we have called it likely solid. but you've got to call correct calls when you see them as well. >> i think you said an incredible job, look at growth six month annualized inflation on course pc is below 4%. he said an incredible job and we have to give them credit for where he's got it right and i would say over the last year he's been able to navigate the economy well and i think bonds and equities will have a fantastic 2024 as the fed remains on hold. liz: wonderful to see you. here is a magnificent seven stock that is staging quite the comeback after disappointing moves in the days leading up to the much-anticipated release last friday of the vision probe mixed reality headset

jay powell sat for a 60 minutes interview last night, signaling there's no rate cut coming in march andbout the economic outlook. watch this. >> the u.s. is on an unsustainable fiscal path, the u.s. federal government is on an unsustainable fiscal path. that means the debt is growing faster than the economy and effectively we're borrowing from future generations. it's time for us to get back to putting a priority on fiscal sus sustainability and sooner is better than later. maria: mark, your reaction. >> we are on an unsustainable path, without a doubt. it's been both parties. we haven't run a budget surplus since 2001. it's been deficit spending after deficit spending and it becomes a big issue when you are deficit spending with an unemployment rate below 4% like we've seen joe biden do for the last three years. so that's a huge issue. and with regards to robbing future generations, the math is pretty simple. if we're going to deficit spend and continue to accumulate debt so that we can realize 3% gdp growth today, our children are going to realize 1% gdp growth when they have to start

paul: trump says if he wins, he will not reappoint jay powell as fed if chairman.> i think it's kind of funny because if anybody if should be sore at a jay powell, it's joe biden. they'd like them to cut rates this year. i think partially trump is just blowing hot air, and he wants to show how tough he is against jay powell. paul: all right. when we come back, a bill that expands the child tax credit heads to the senate after a rare bipartisan vote in the house. both sides are claiming victory, but is it good economic policy and good politics for republicans? ♪ ♪ help fuel today with boost high protein, complete nutrition you need... ...without the stuff you don't. so, here's to now. boost. type 2 diabetes? discover the ozempic® tri-zone. ♪ ♪ i got the power of 3. i lowered my a1c, cv risk, and lost some weight. in studies, the majority of people reached an a1c under 7 and maintained it. i'm under 7. ozempic® lowers the risk of major cardiovascular events such as stroke, heart attack, or death in adults also with known heart disease. i'm lowering my risk. adults lo

by the way it's, i think jay powell also wants to see participation.he u3, goes down a million people leave the jobs market and unemployment rate is lower, yeah, you're not counting a million people. i heard him say enough he would like to see participation go up. >> why can't they afford to leave the job market? that is the important point. charles: great stuff, man. >> enjoyed it. thank you, charles. charles: coming up small caps making a pretty good move last week as a sort of a stealthy move but caught gary k.'s eyes. how much did he pounce? he will share his knowledge with you next. ♪. known for following your dreams. known for keeping with tradition. known for discovering new places. no one wants to be known for cancer, but a treatment can be. keytruda is known to treat cancer. fda-approved for 16 types of cancer, including certain early-stage and advanced cancers. one of those cancers is early-stage non—small cell lung cancer. keytruda may be used with certain chemotherapies before surgery when you have early-stage lung cancer, which can be remo

. >> governor jay powell pushed back against expectations for march rate cut. markets were pricing and some cut in may or june. is that fair? >> i think markets are responding to the fact that we have set out our framework. the question for us is for how long. markets are coming up with their own answer. that is quite reasonable. it is not our only judgment and we will decide. >> why are you so afraid of committing to a cut? is it because you are worried about inflation coming back? are you worried about the budget that's coming up in march? are you worried about having to reverse course? >> two reasons. one is the evidence. we always want to see the evidence. the second is that the world is still a fairly uncertain place. there are things going on in the world that are not the normal course of events and can have quite big effects. we want to see how these influences -- the evidence is vital to us. >> like an insurance policy? >> it is a question of being too soon to conclude that we are on that sustained path to target, but i hope that we will be there before

jay powell wants to see a lot more confidence. the b.o.e.to know who is looking at hikes and who is looking at easing. disruption to the red sea shipping a "material risk." i'm shocked by some of the manufacturers in england which are saying we are seeing costs go up because of this, and the length of deliveries also expanding. lisa: which is the reason why it's compelling. the bank of england says she see inflation at 2% in the second quarter and then accelerating. that is different than what weave heard elsewhere and puts a code on this idea of maybe we're in a sweet spot that just can't lost. jonathan: got a fantastic lineup for you. the pound just reversing losses here. the pound against the dollar, we're still negative by .2%. just changing in the last 10 minutes or so. the broader price action has the equity market bounce in on the s&p 500 off losses of yesterday. in the bond market, yields are a little bit higher on a u.s. 10-year by three basis points. coming up on the program this hour, a new concerns about regional banks. and mande

sentiment further impacted by jay powell.e march rate cut unlikely to be, pushing back expectations that rate cut may come on in the second quarter at the earliest. this is on the back of that strong jobs data, strong wages, as well as that interview he gave to 60 minutes. take a look at the ripple effects in asia. take a look in terms of emerging-market yields, they are surging in the philippines, in indonesia, south korea. also surging in australia ahead of an rba decision. it is expected to stand pat read rates likely tuesday at 12-year highs. in the commodity space, we're keeping an eye on brent crude under widening tensions in the middle east, the u.s. said it will provide further attacks on houthi rebels. we have brent crude trading at 77.39 at this time. it is a strong dollar story weighing on asian currencies. the ringgit getting smacked. down 0.8%. the one also lower. so lots of risks out there it is playing out in the markets. rishaad: risk playing out, of course, with regards to other parts of the world and region.

raising interest rates, and likely cut later in the year the federal reserve chairman, however, jay powelldy to start cutting rates a march rate is not likely, watch this. >> we believe that our policy rate is likely at its peak for this tightening cycle if economy evolves broadly as expect offed will likely be appropriate to begin dialing back policy restraint at some point this year. >> the economy surprised forecasters in many wades, since the pandemic. and ongoing progress toward our 2% inflation objective not insured. >> joining me former treasury undersecretary david plal pass thanks for being here. your reaction to fed move saying march off the table for rate cut perhaps later in the year if we have defense inflation is around 2%. hi maria, this is really important the fed had so many tools, they were mostly focused on the interest rate tool, i would like to see lower interest rates, you know the short-term interest rates set 5.4% now paying today pulls money from the small cap sector from small businesses. so i think there is an opportunity for the fed to be looking at rate cuts al

we've got more data coming up but jay powell is going to be the issue going forward.e testifies on wednesday and thursday of next week and we will carry that live. that will be the risk moment for markets in terms of the fed trying to reset perceptions. katie: he will be testifying during this show so a lot to look forward to. what can we expect him to say? what will the tone of that testimony be? mike: after the pce report comes out relatively decent and we sought december revised lower, he can make the argument again that progress is being made on inflation but there is still more work to do. we have a little bit higher monthly inflation in january so we want to wait and see. i that continues into february. i don't expect a whole lot different but markets have been very interested in whether the fed will give them guidance about may, june or even in july as the first rate cut. we will see what he has to say. katie: it's fun to hear what lawmakers ask of jay powell. michael mckee, thank you so much. let's dive into the markets more. we're joined by the head of deriva

we heard jay powell. >> the inflation game. >> we heard jay powell say that march is not their base casethey would look at reports like this as they decide when is the right time. a report like this makes a rate cut look more likely in the summer. >> for people looking at buying homes, this is what they are watching. >> exactly. if you are feeling hot -- >> it's getting hot in here. >> exactly. it's because the labor market is showing some heat. >> she always brings the heat. rahel solomon. the reason why john was jumping up and down, he was on his 401. >> i'm schvitzing.ceeding expec. >> so hot. >> it is so hot that in a new cnn poll, we are starting to see these relentlessly positive job numbers have an impact perhaps on attitudes here. look at this. we asked, things going well in the country today. 35% say things are going well. that's not a great number when you look at it in a vacuum. however, it ties a two-year high in some of the opinions over the last two years. this is a lot higher than it has been over the last two years. break it down by party. it's a similar story. 62% of dem

listen to jay powell, are we going to get every session. >> what an epic night of energy entertainmentme powell on 60 minutes and then the grammys. and sitting for both of them made last night a very memorable experience for me and even the clip you just played, i watch that clip and i watch that clip over and over again and i keep asking myself, what exactly is jerome powell trying to communicate here because we get the 11 interest-rate hikes that bring us to the historically high interest-rate emergency in the labor market, if you believe the numbers on friday were on fire and keep in mind last week we were convinced that we get a get a rate cut in march, now or not now it's not quite happy. as far as when is the recession going to come. if he keeps rates this high for much longer he will throw us into a recession. they cut rates he could ignite inflation. he is a very typical task today and i don't feel very sorry for him and he put himself in this position and put the nation in this position by keeping monetary policy to lose for too long so we are on the precipice of a recession b

. >>> investors are now looking to the fed and jay powell, possibly pushing back the timeline for future interest rate cuts. why jeff gundlach said the market mace have gotten over their skis. >>> but today it's all about what to expect from the markets and your money and the apparent frothiness. the sectors and stocks to watch ahead of the open, and speaking of frothiness, we get another look atarm shares after a brutal day on the stock. and later in the show, we get a check on lyft and a very wild ride following errors in some earnings. it's wednesday, february 14th, 2024. you're watching "worldwide exchange" right here on cnbc. ♪ >>> good morning. welcome to "worldwide exchange." i'm frank holland. we're going to kick off the hour with the stock futures. we're seeing futures solidly in the green. the nasdaq doing their best, up over half a percent. it follows a really brutal day for stock. we saw all the major averages close down more than 1% lower, the dow posting its worst single session since march, and the russell, its worst since june of 2022. we're talking walgreens, microsoft,

they're trading jay powell's pushed out pivot we're also going to reveal a new stock that josh brown has bought we'll do that in a little bit. joining me for the hour, josh brown, bryn talkington, steve weiss and sarat sethi. josh, what's at stake? >> everything! >> almost $5.5 trillion in market cap a lot is at stake. you said yesterday this really matters this week. >> it really does. it matters to sentiment. it matters emotionally there's a lot going on companies are reporting massive growth year over year because of all the work they've done digging out of expenses and streamlining their businesses. you will see the actual proof in the pudding as a result of that when it comes to amazon and meta specifically the setup for the three names is different. they're not all experiencing the same thing we trade as a bundle and talk about in a conversation. on a price-to-earnings basis, amazon is not comparable to the others it has sold with the understanding that management is not specifically focused on dropping profits to the bottom line an 81 p/e ratio. that is not a stock that trades

it's what the chair said sunday night, i do think it's a manageable problem, said jay powell.at have to be closed or merged out of existence because of this. that will be smaller banks, i suspect, for the most part. >> scott, guess how manyback ba have failed since 2013? 513. we have over 4,000. >> svb was the second largest bank failure ever. >> sure. >> these are not insignificant, even though there have been a large number to your point of failures. >> but it didn't cripple the system. and that's because the big six have to have all that excess capital. >> there was a moment, shannon -- >> we suspended the limits of fdic insurance. >> the fed came to the rescue, let's be honest. there was some pretty big tremors. it didn't emerge into a full-blown earthquake, but there were some pretty good tremors. as i said, look, your former employer, svb, in the wealth management division, albeit, so i know this hits close to home when we talk about these issues. how are you thinking about this? >> the point here, big banks can digest loan lost provisions to offset commercial real estat