so they are way behind jim bullard. there are a lot of people in his camp, including bill dudley, former president of the new york fed, now bloomberg opinion columnist, senior economic advisor to our bloomberg intelligence team. he said the slower the fed, the harder the landing. the 60's and 70's, inflation was not tackled forcibly and early, and it kept ratcheting up. they are all in favor of a faster move and they say of the fed does not do it we can have a longer-term inflation problem. haslinda: the boj's kuroda trying hard to justify his super stimulus policy, even as the yen weakened to a 20 year low. kathleen: we just saw the yen have weakest move lower in, what, 50 years? 13 straight days. it is that 127. the traders now, the short position is pricing it 130 tht -- to the dollar. he said yes, these rapid yen moves can affect businesses and cause trouble for companies. he thinks it can be a problem. he thinks the boj will have to take into account negative factors like this weakening yen. however, he is not expe

his 70 points realistic or is jim bullard coming out of left field again? >> a little bit of both. it is realistic and bullard made the point that in 1994, the fed raised interest rates 300 basis points over the year, including a 75 basis point move. it has been done before. but does the fed feel that it is necessary and that it would not have a negative effect on the market? what did they know that we don't know? it has that kind of aspect to it. it is also a little bit of math. you are going to go 350 basis points this year. you are going to need 75 or a whole bunch of 50's to get there. but as he said, it is not the base case. it is not likely, but as he said, if necessary. i guess that means if inflation keeps rising significantly. anna: and let's bring in cate faddis into this. [indiscernible] what are you expecting echo -- expecting? >> i think i would be buying at this level. i am saying that the appropriate rate should be more like 2.25 percent. i don't care what he says. despite all his talk about inflation, long-term we have been in a 20-year, 25-year inflation market tren

jim bullock -- jim bullard coming out saying he expects the rate to be around 3% to 3.2 5% in the second half of 2022 after the 50% -- 50 point hike in may. the concern right now is how hawkish the fed will turn and what the market applications are. we have seen the fed minutes yesterday talking about reducing the bond holdings by as much as $95 billion per month and we saw the reaction across global markets. haidi: the inflation picture remains to be seen as to what happens with eu and u.s. energy sanctions to russia. at the moment, you look at the data that bloomberg has access to. it looks like russia is managing to sidestep the fact that it is still finding buyers for energy. we have seen several chinese firms using local currency to buy russian coal in the month of march and cargoes of russian crude from the far east have sold out for the next month. bloomberg economics is expecting that russia will earn $320 billion from energy exports this year which is up one third from last year. we saw a remarkable rebound in the ruble. shery: let's discuss the latest developments. the war in u

jim bullard things to percent, not 2.5%. mike: mr. bullard has been pretty hawkish, let's say.r as neutral, it is flexible. the fed announced an average target a couple of years ago. never divide what average meant. neutral being around 2%, i suspect higher than that. i would turn it around a little bit and say, where does the fed declare victory, what is a good result for the fed? 2, 2 .5? is it ok for the cycle? tom: on the construction of the real yield, we have a nominal rate with a second derivative up, some real convexity in the 10-year yield. you get a residual which is the inflation-adjusted yield. which of those three numbers is the most interesting to you right now? mike: real yield, inflation-adjusted yield. that is why if i'm investing for the long run, getting a negative number for the treasury curve tells you that policy is still very accommodative. the bond market is not very attractive for most people. you are putting money to work on an absolute return basis, individual investor filing into bonds, only if you are really risk-averse. as far as the prospect going

some comments from jim bullard.the more hawkish end of the spectrum when it comes to what's happening with the outlook for the fed. you were joking about this a moment ago as we were listening to mark. bullard is leaning toward a 50 basis point hike but will not say it at the meeting -- will not prejudice the meeting. he's already gone down that road. a lot of people probably would vote for 50 basis points the last time around. >> bullard actually did, he voted for it in march, and now he says he's unconvinced in may. i wonder if he almost means they should only go 50, because he says 300 basis points off is how far away the fed is from where it needs to be, so maybe he says he wants to go bigger. >> let's say we are at 50. he is saying potentially 3.5%. wonder if it is still underestimating the picture. you wonder whether he will one more later this year. fascinating comments. this is bloomberg. ♪ >> 34 minutes until the european close. as it comes to the close, european stocks down. rolling over the last couple ho

the most vocal we have heard our jim bullard and chris waller, and he has talked about his own reality of selling his home in saint louis, but cannot buy anything in washington because the market is crazy, as he put it. they are having these real-life experiences that everyone else is. two people incidentally -- jim bullard talking about a three quarters of a percent like, those are the ones that are most aggressive on a rate hike. interesting to see esther george and charlie evans talking about the need to get rates up, on board with a half percent hike, but also worried about the measured pace. markets have moved up, but they don't want to get too far ahead and trigger a bigger credit down. we are starting to see tensions with japan and their exchange rate. tensions with the living economies and their exchange rate. every time we think about raising rates, those other economies have to defend their currencies, and that is a house of cards for the federal reserve to balance on that tight rope. tom: what is business investment doing? you have a unique view on that. is the confidence st

yesterday, tom barkan strengthen his view, saying we should move quickly to neutral, joining the jim bullardamp. tom: what have you learned about the duration of this inflation when you look at core six, ppi 9. what is your sense of this duration of inflation change? mike: looks like it will take quite a while to bring it down. tom: like when the red sox start winning? mike: let's hope they start picking up the pace a little bit sooner than inflation. lisa: we were looking at what that number would be for ppi final demand. it did come in at 11.2%. the expectation was 10.6%. we are seeing markets respond somewhat in the way you would expect with yields up slightly. not a massive reaction but s&p futures the rays gains. we are looking at a market with new inflationary dynamic affecting the pipeline. 11.2%. can you put that in perspective? mike: it is the most since 2010, which is better than the 1981 number from yesterday, although they changed the ppi calculations around that time so we don't go as far back. it does suggest there are still pipeline pressures which does not surprise anybody gi

jim bullard refusing to rule out a 75 basis point hike for the fed. bank take a look at japanese equities coming online right now. gains of about 1%. we have a very weak japanese yen, 13 consecutive sessions of losses against the u.s. dollar, a 2000 too low and the longest moving streak on record. we are waiting to hear in about half an hour from the finance minister to hear what he has to say. to pay attention to that press conference. we have the 10 year yield very close to that upward level of tolerance. take a look at korean stocks because we have two sessions of losses for korean equities already. the korean won after two sessions of losses holding at that 1234 level against the u.s. dollar. we are watching the korean bond space closely as we have rising treasury yields, rising u.s. dollar having an impact on the korean assets. but as we did have the social distancing measures being relaxed, we are watching the reopening trade across korea as well. haidi: watching the reopening when it comes back from the long easter weekend in sydney just gettin

jim bullard thinks you need to go much higher than that.nk bill dudley is making the same argument. if that data in that particular part of the economy does not respond in the way that some people anticipate, maybe that is the story still to come. tom: let's get on that with someone who has won a number of trophies for trying to get the economic estimate game correct. gregory daco joins us, chief economist at ernst & young. you are with the consultancy in a meeting with a client, and they go, where are we in a year? where are we in a year? gregory: i think we are at a lower point of economic activity. we are seeing the fed pressing hard on the brakes and wanted to press even harder on the holiday breaks is going to ask enjoyed that. tom: how do you respond to the recession blue man trying to go out 12 months, 24 months? when you are an award winner at this, how do you guesstimate out 18 months with this crazy economy we are in? gregory: first you have to understand where we are in the business cycle. we are in an economy that is still quite

louis's jim bullard have positive outlooks, but they differ on how much of a threat inflation is and how much the fed should do this year. evans saying the economy should do well. even in a rising rate environment. he went on to say he sees the fed raising rates to two and a quarter, two and a half percent by the end of the year jim bullard said the fed should hit 3.5% and he thinks the u.s. will still have above growth and declining unemployment he said the economy did well in 1994 when the fed also hiked includi including by the way, a 75-point hike >> that one was successful and did set up the u.s. economy for a stellar second half of the 1990s. one of the best periods in u.s. macro economic history, so it was successful and in that cycle, there was a 75 basis point increase at one point. so i wouldn't rule it out, but it's not my base case here >> bullard said the key is making clear to the public and markets that the fed is in a new inflation fighting regime and that it means what it says that right of forecast not shared however, tyler, but many. >> let's talk more about mr. bu

he also cautioned, quote now, not to be outdone, his comments were offset by jim bullard, who said he wants to get the rate up to 3 or 3.25 by year end, which is on the hawkish side so the debate is going to 2.4 by yearened oar 3% or higher, which is as you say, the message has been shockingly consistent i think that's a great question i think we have a couple bad ones in front of us. it's supposed to be up near mid 8% range, but i think toward the end of the year, we start rolling off the balance sheet, i think that's when the debate will become more pronounced. that's where i think the -- >> either way neutral means well above 2%, so still a ways to go from here. >> right, exactly. >> thank you, steve. >>> our next guest has a strategy for everything you just heard steve talking about. he says there's still plenty of opportunity despite rising rates and short-term volatility. for more welcome in david katz, chief investment officer at matrix asset advisers. the one question i have, if you want to think like a member of the fed, what daughters might you be looking at we think what yo

louis fed president jim bullard, speaking at a virtual event. and this comes if you look at real yields -- real yields, inflation-adjusted benchmark rates, at the highest levels going back to march of 2020. this tells us the fed is going to normalize. the russian is how quickly. just as we have a roster of fed, jay powell talking ahead of the quiet period, how far are they willing to go given some of the uncertainty we saw from the china economic data? jonathan: powell later this week a looking forward to it. let's get straight to the market compensation with russ koesterich. yields are higher, the curve steeper, banks are struggling. why? russ: good morning. i think there are a few reasons creating headwinds for the banks. yes, the curve is a bit steeper today, but as we all know, 2's/10's much flatter over the last three or four months, and that is a headwind for banks, particularly smaller regional banks. the cases we will not see a recession, but to state the obvious, we have more and more investors, more and more people talking about it. if

jim bullard from the st. louis fed led the pack. chris lawler picked it up as well. other fed officials. even if they have not exactly set i'm going to vote for it, they know it is on the table. i think this kind of ties it all up. this is about frontloading rate hikes. what has larry summers been saying? what has bill dudley been saying? you've got to go pastor coming your way b -- faster, you are way behind the curve. this also seems like the fed not wanting to surprise the markets. they will probably do the 50 basis point hike. they must've talked amongst themselves already. if the markets aren't ready for this, they will not be ready for anything. 75 seems like a very aggressive call for the next meeting. we have to see what happens at this meeting and what jay powell says afterward. >> you talk about explicit, we are hearing more, reiterating the vowed to support the economy, but not doing much to help these markets, but they are talking about getting these big investors to buy stocks now too. >> it doesn't seem like we are getting a whole lot of that part yet.

first, jim bullard, now charlie evans speaking about above neutral. take a listen. >> probably we are going beyond neutral. that is my expectation was we take out special factors i'm left with 3% to 3.5% inflation. that is not what we want. if we have 2.5% inflation, we have more to ponder. >> a lot to digest. let's bring in our strategist for more. let's start with real yields turning positive for the first time in two years. what will it mean for risk assets and for stocks in particular? >> well, it is a reflection of the fact that treasury yields have been rising quickly. real yields are just catching up with that picture. the bigger issue really is you have fed speakers like charles evans. he is more or less admitting the federal reserve is already behind the curve when it comes to raising interest rates. so even if they raised by 50 basis points at their next meeting, they will still be way behind anyway. he is already saying they may need to go above neutral. you are hearing other voices saying that they need to do large moves and need to do it

jim bullard said a 75-base raise is not the base case evans said 50 but may have to go above neutral. san francisco fed president yesterday daly said the fed would deliberate and not rule out a 75 either. december funds rate contract added 40 basis points. nearly two quarter-point hikes trading at 2.70 for december all of that leading the market to believe that maybe the fed floating a trial balloon of 75 hikes. the august yield of 1.92 suggest a 34% probability of one 75-basis hike. the fed seen hiking to 3.4%. august of next year or so. the market may be ahead of itself the hike would come after two or more 50s andself inflation reports that show what they are looking isn't working. i don't think they'll be quick to ratchet up to another one guys >> let's talk a little bit about what we expect by the end of this year. where do you think the fed funds rate will be we were talking with someone yesterday. it occurred to me we haven't begun the raising of interest rates. >> no. and that's -- two parts to that answer there which is obviously a great question i take the fed or most of the

manus: jim bullard says the central bank needs to move quickly to raise rates and does not rule out as point hike. yousef: the world bank slashes its estimate to 3.2% and -- based on china's covid lockdown. manus: united arab

that is the story for jim bullard.leading the committee, they may be his base case would be something other than 50 basis points, but he's not. so trying to get the committee to move 75 on may 4 is not part of the conversation, is it? tom: we need to frame this part of the conversation. it is really important. mr. bullard is not welcome at the st. louis cardinals box seats that he has, but this is a guy who wrote about regime change and a modern siri which the fed has almost stumbled into. we are in a regime change, and in his own way, leading the discussion on dudley, but in a different way. jonathan: he showed me some shredded money from the money museum at the saint louis fed. tom: i've been there. very good. jonathan: i'm not sure what the message underpinning that particular message was. are you trying to make a trip? tom: road trip to a cardinals game with mr. bullard. jonathan: i am down for that one. tom: let's move on from 75 basis points to 75 people standing in line at tsa. kriti gupta provides wisdom. kriti

the fed, i don't think they will do this, if they really start running out of the gate, i know jim bullardothetical but i think 275 basis point moves would overdo it. particularly we would keep getting by the june meeting a lot more information about the economy. it -- if they go to hard and the world serves us a particular set of conditions, we could have an undershooting see her. it is absolutely clear they need to go harder. but not too much jon: jon:. that is a big call that is, if they went to hard we could have an undershooting of inflation target next year. what would too hard be to get inflation back below 2%? >> recession. jon: over session you think would achieve that? the reason i ask is some people think you could get a contraction growth while prices are elevated above 2%. >> good left with that. anything can happen at this point, nuclear winter is inflationary so i'm not -- things could be bad but right now, we lose sight of this. we have an economy that is back on track, we are on trend for inflation-adjusted consumer spending, inflation-adjusted business investment and we n

investors were spooked this week by comments from fed officials lael brainard and jim bullard. the release of the minutes on wednesday, but the dow at least gaining back grown today, and almost flat for the week is the fear priced in? let's bring in peter chukeane and lou paulson. on the opposite sides of the issue. jim, you do not think this is a bear market and wree have seen a bear market rally. you're more positive why? >> i think we had our correction, which you normally get in the second year of a bull market probably lasted about a year starting last march. most stocks haven't done much since. it did what corrections do, sara it took the concentration of leadership out of stocks it significantly revalued most of the market, and it scared us all to death and the sentiment indicators are very pez mistm, and we have done all of that while leaving the fundamentals of the economy really strong. created 525,000 jobs a month in the first quarter. so if i like the combination of a lot of fear, a lot of things to worry about, and good underlying fundamentals, i think that's a dyn

our exclusive interview with raphael bostic following comments made yesterday by his colleague jim bullardhe wouldn't rule out a 75-basis-point hike and later, shares of lululemon jumping after truest boosted their target by 100 points we'll talk ♪ ♪ connecting to opportunity is just part of the hustle. we come back ♪ ♪ it's raising capital that helps companies change the world. it's making complicated financial concepts opportunity is making the dream of home ownership a reality... ♪ ♪ ...writing new rules and redefining the game... ...and driving the world forward to a greener energy future. (applause) ♪ ♪ opportunity is setting a goal... ...and charting a course to get there. sometimes the only thing standing between you and opportunity... ...is someone who can make the connection. at ice, we connect people to opportunity. hey lily, i need a new wireless plan for my business, but all my employees need something different. oh, we can help with that. okay, imagine this. your mover, rob, he's on the scene and needs a plan with a mobile hotspot. we cut to downtown, your sales rep lisa has t

louis fed president jim bullard saying rates may still need to rise 300 basis points.hamed el-erian, president of queens college cambridge and always great to have you i think that the key question for equity investors right now is how much of this new tightening talk and plans, which is very hawkish, is already priced into the market bonds are getting it, but the s&p is only 6% off the highs is that priced in? for i think stocks have been incredibly resilient and there's several reasons why they have been more resilient than the fixed income market. they're confident in the labor market and we got a strong jobless claims number today. second, financial conditions haven't actually tightened that much, sara as much as we talk about it, we still have very loose financial conditions overall and third, where do you go you may not like stocks, but they are the cleanest dirty shirt. where else are you going to go for now, the resilient is totally understandable i think the market is yet to fully grasp the extent to which the liquidity regime will change therefore, you have h

but then jim bullard is saying it should be 3% to 3.5%.e will see whether the markets are on track to front run the fed. kriti: that is in addition to balance sheet reduction, right? which we know has been chairman powell's playbook, that he combines rate hikes with balance sheet reduction. if you are already looking at 50 basis point hikes, that is a hawkish move. >> the fed -- nobody else, really -- has an idea what is the impact going to be. they can quantify better the idea of adding to the balance sheet and how it pushes down on long rates but they are not sure the dynamics when you go the other direction. there are estimates from 25 basis points to 150 basis points. the fed is going to put it on automatic pilot and just watch what happens. just to see how much movement we get. if they get a lot, they may cut back on some of the quarter-point, 50 basis point moves that are right now being priced in. kriti: a lot of this has to do with the jobs market, right? recession odds at 35% over the next few years. a lot of it is based on the ga

>> look, i think this idea that you were just talking about, this 1994 idea that jim bullard is pointing to and a few others are pointing to is a good narrative and is how we get into the fed's head, which is what we need to do to understand where they're going this year. if you go back to that year, actually it wasn't a year with a lot of equity volatility it was a year where i think equities might have been down about 7% for the year. it wasn't a terrible equity year it was a terrible bond year. one of the worst bond years in modern history and we have a lot of blowups in the mortgage market with david haskin we had significant losses in major investment banks we saw international bonds, corporate bonds, emerging market bonds under extreme pressure, and a lot of losses in fixed income so i think this year is really actually kind of shaping up very much with that '94 narrative in mind, and if that's the case, there may be some glimmers of hope that the equity market doesn't have to go through some major repricing, say down 20 or down 25, and we can kind of cross our fingers on that. the

i do feel like she's more closely aligned with the center of the fed and the chair than say a jim bullard. is that wrong? >> no, it's not wrong. you know, the fed may not be there yet. but also, this is part of who is leading the fed. is it the market that's leading the fed or the fed leading the market if the market is going to price in 75 basis points and leave it there, we might see the fed average move, that's the pattern we have seen over the last several months either way, it looks like there's a realization that this fed is very serious about inflation. it is going to raise rates and raise rates aggressively as a matter of fact, i have been saying there might not be another 25-basis-point rate hike it's going to be 50s all the way through until they're done the metric that's going to make them stop is going to be falling inflation. not the employment market, not the general state of real growth >> two-year note yield just below 2.7% where do we go from here is that going to hit 3% and what does that do for stocks? >> well, unfortunately, the history has been when you see epic moves

jim bullard wanted that 50 basis point hike now. he wanted to start the balance sheet runoff right away. it is the balance sheet runoff that is making its name like, they are going at all to the metal when it comes to hawkishness because they are going to do $95 billion a month, they are going to let rolloff as they mature. they are going to phase in these caps in three months, maybe a the longer, depending on market conditions. in the 2017-2019 balance sheets runoff, the securities caps were set at a total of $50 billion a month. this is almost double that. the balance sheet is not drilling dollars instead of $5 trillion, -- $9 trillion instead of $5 trillion. they want to move policy towards neutral, where there rate is so low -- is no longer so low that they stimulate the economy. the inflation to the upside they say, strong consumer demand, supply chains are not functioning fully. bloomberg intelligence says we do not think the fed can get much more hawkish, especially if it delivers on what seems like a message of several basis

yvonne: our top stories, more hawkish fed signals, jim bullard calling for interest rates to top 3% this20,000, a citywide

louis fed president jim bullard will be talking about the economic outlook and event hosted by the councilnson & johnson and lockheed martin before the valve. -- before the bell. netflix after the bell. central bankers will be gathering in washington the imf world bank meeting. that wreps up for me on bloomberg markets. coming up on balance of power, leon panetta will be joining david westin on bloomberg television and radio. ♪ >> from the world of politics to the world of business, this is "balance of power" with david westin. david: from bloomberg's world headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power." we start in washington, where officials from ukraine are attending the imf world bank meetings asking for more economic support even as president zelenskyy is inviting president biden to visit. we turned to joe mathieu, a host of sound on on bloomberg radio. what is the response to the invitation from president zelenskyy? joe: likely the same we've been getting as we've been asking of president biden might go to ukraine. the answer has been

we caught up with jim bullard yesterday who said he would not rule out the possibility of 75 basis pointg steve, i'll leave the rest to you. >> good morning, david showed himself to be a hawkish member of the fed and one of the more bullish he believes the fed should raise the fund rate. he thinks the u.s. will still have above trend growth and dec declining unemployment >> i would point out that the 1994 cycle where we raise policy rate 300 basis points in the year first of all, that one was successful and did set up the u.s. economy for a stellar second half of the 1990s one of the best periods in u.s. macro economic history i wouldn't rule it out but it's not my base case >> bullard said the fed is in new inflation fighting regime and it means what it says. >> what we need to do is establish inflation expectations at 2% and show that we're going to do what needs to be done to get inflation to 2%. inflation expectation will adjust and actual inflation will follow behind. most of that doesn't have very much to do with the labor market >> if bullard is right, the fed could have a quick a

louis fed president jim bullard earlier. exactly.be enough. walk us through whether we are going to continue to see a fed that's already hawkish become more hawkish when you think about bullard has been first out of the gate as of late with some of this commentary >> i think you like to run, right? you know that there is pace in distance, right? so i think the fed right now is at the pace that it can go i don't think that it can push the market much further. this is towards the upper end of the quantitative tightening estimates that were out there. i don't think it wants to go much faster on the qt, and now that it's talking about 50 basis point hikes,i don't think it wants to go much faster on rates. so the extent to which the fed is going to do more is going do more in distance than it is in terms of hurrying up the pace. i think they put that together david, can i give a perm observation? i think it's interesting all this qt sounds like it's a huge mess. if it's so hard getting out, why get in last night is emceeing the council fo

it began with jim bullard, i asked him, you could do more than 50. along comes san francisco fed president mary daly yesterday saying they're going to deliberate whether to 25, 50 or 75 basis point hikes not ruling out 75. then they get powell and daly and evans saying rates likely need to rise above neutral that is 2.5% this year and the result, the market this week begins to take seriously even the outlying possibility of a 75 basis point hike. the december fed funds contract, that is one way to follow all of this rise bee saad the two nif year note to trade now at 274 adding two more quarter point hikes for the year inside of the trading when they view the imagine, there is probability built in for a 75 basis point hike in june but some think that powell has let it grow out of control a they write this episode exposed the problem arising from the fed's leadership fail aur to put por of a framework and structure around the larger units of hiking. and he's calling to coral the framework and offer it at the may press conference and i told you where i

jim bullard saying 75 basis point.tuart: you and i talked for a long time when interest rates go up big tech tends to go down. susan: getting more guaranteed money, to rotate some of that cash after buying government treasury. stuart: maybe microsoft is back in favor with more people. susan: oil is down. that might be some reprieve. we will look at that, that is a sharp drop and then tesla reports tomorrow, april 20th as in 4-20. it has something to do with marijuana. susan: i love how you carry through innocence in 3 hours. tesla will report after the bell. first quarterly profit drop in two years for the electric carmaker and guidance is key given that shanghai is down 3 weeks. we when you've got to tell me about netflix because they report after the bell but that stock is down 35%. this calendar year -- susan: it will be subscriber growth industry has low expectations after they only at 2.5 million new subscribers to start the year and if you think of it, that is 40% less than they added this time last year. think o

louis fed president jim bullard said he would not rule out the possibility of the 75 basis point hike rate cycle. in the conversation moderated by steve liesman, bullard pushed the case for reaching 3.5% fund rate by the end of the year. here is bullard. >> it has the hawkish shift since november which caused volatility in the market i am sympathetic at this point, quite a bit has been priced in we would be following through and there may be corners of the market which haven't adjusted yet. >> to reach the 3.5% rate target by the end of the year, bullard is hoping for a .50% rate hike at all six fed meetings remaining this year. we will get more fed speak later this year when raphael bostic joins "closing bell" this afternoon. andrew, the terminal rates that we talk about that will be needed and that is necessary to obtain everything on historical basis seems low to me. it will work you don't need to get back to historic levels. for most of my career, you know, 6% or 7% >> you think that is where we're going? >> no. i think we e don't need to do i. i still think my thesis about how qu

jim bullard telling the fchl t. that the central bank must put the brakes on economic activity to stop the surging prices that's too bad we like economic activity. he tells the paper the fed is behind the curve and needs to get moving last week bullard argued they need to raise it another three percentage points by the end of the year and another is also weighing in on the inflation picture he argued the central bank needs to get to the rates where borrowing costs are no longer stimulating the economy. >> i think it's particularly interesting what you hear from some of these fed presidents because they hear from the constituen constituencies they hear about how they're getting pinched by inflation, and i think that's probably why you tend to see some of the more hawkish voices coming from the areas. we're going to start something called the federal reserve bank of "squawk" where we start talking to guests who are on main street who are hearing some of these things where they're hearing about it. >> we can combine it

minutes, but when you hear the comments coming from them, they sound like they were coming from jim bullard not the case these are doves who are sounding much more hawkish. as a result, you saw a selloff nasdaq took it on the chin that was a 2% decline from the gain we saw the day before and if you watch the dow transports, this is something to pay attention to dow transports down by 2.8%. if you add it up, 7.4% from the all-time high and maybe you get back to the point where you talk about the dow transports being a indicator of recession especially when you compare that with what we've seen with tre treasury yields yesterday. we've been flirting back and forth with inversion right now it looks like the 10-year is 2.62% the two-year is 2.651% yields up across the board questions about what these going to mean for the mortgage matters. the weekly numbers, that's out at 7:00 a.m. and that will give us a little more insight on how this is all impacting the market. >>> meanwhile elon musk has been buying shares on almost a daily basis, spending about $6.2 billion. twitter announced musk would

the comments offset by jim b bullard. he wants to price this in. the debate is interesting.wks and doves which is 8% or 11% hikes and going up 2% in total it is hawkish, guys. some guys want to say we'll stop at neutral and look around becky. >> okay. maybe we stop at neutral and look around. i have to say the number of doves who have been saying go, go, go made me wonder. i think that is probably what makes some of the big investors nervous at this point, too they should have been doing this a long time. they should have been tapping the brakes when the economy was running along. if you are aggressive and not giving it time to look around and see is part of the shift from investors calling to hurry up and do this to okay, be cautious do it and see how it takes >> by the way, bostic yesterday was on the more cautious side. i don't think bostic qualifies as a dove. he wants to be measured. it is interesting to me that the debate right now is among hawks and hawk-ier, if you might there are not a lot of doves out th there. evans said let's get there and look around. >> i think

jim. sign up or point your phone at the qr code on the screen. >>> we'll check bonds and treasuries pretty wicked 24 hours of comments from bullard and the ft thisning br br brainard with the journal yet. the 10 year below 2.7 yesterday. we'll be right back. this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay. [sound of helicopter blades] ugh... they found me. ♪ ♪ nice suits, you guys blend right in. the world needs you back. i'm retired greg, you know this. people have their money just sitting around doing nothing... that's bad, they shouldn't do that. they're getting crushed by inflation. well, i feel for them. they're taking financial advice from memes. [baby spits out milk] i'll get my onesies®. ♪ “baby one more time” by britney spears ♪ good to have you back, old friend. yeah, eyes on the road, benny. welcom