louis fed president jim bullard.ur next guest says recessionary concerns probably loom larger than inflation. it's bring in the co-cio and group president at investment solutions. it's good to have you with us. is the recession concern driving markets right now because the fed seems to be squarely focused on raining and inflation given that the data has been pretty strong including labor market strength. >> i think that's absolutely the case. inflation and unemployment are the key focuses. jobless claims are down. for the fed to continue to raise rates, that means that the markets, they are digesting this and returning to the fact -- probably looking at 75 in november and another 50 in december. it's a pretty harrowing set of increases. inflation, we have the path to get that under control. the august numbers were distressing. we saw the oil coming down but everything else did not follow suit. i think recession is more of a concern. >> we have the recession -- we have a little bit of relief with the boe intervention

louis fed president jim bullard.e said i support a significant increase at the next meeting on september 20. think of the policy rate to a setting that is clearly restricting demand. joining us now diana swonk. such a pleasure to have you here. what does that restrictive territory look like to you? diana: the fed things it is about where they are at today. they think we are close to neutral. we can debate that. they want to see more of a slowdown that we are already seeing. it looks like growth in the third quarter is less than 1%. this is the fed trying to engineer potential growth with a rising in the on appointment right. how high for how long? they want to do a mild prolonged slowdown with a rising unemployment rate, a.k.a. ever session and whether -- a recession. the point is to grind inflation down slowly. moving from 6% to 4% inflation, that is not hard to get. 4% inflation to 2% inflation is where the heavy lifting comes. that is hard for the fed. i love mike mckee. i actually think the federal reserve is at

a lot of it because jim bullard commented and added to the hawkish rhetoric out there. wti rallying in the new york session. we heard the report that russia might be pushing for a cut in production. geopolitical tensions over the nord stream pipeline. annabelle: it is setting us up for a mixed start. the japan nikkei futures are in the green. keeping an eye on japan. moves in the yen. the yen weakness was something that helped in the prior session. we saw asian stocks were covering for the first day in for sessions. let's take a look at the terminal chart. we have stocks in asia amongst the lowest in around two years. capital markets are saying headwinds remain in place, most oversold conditions, march of that year, a lot of fears around what the fed is doing. they need to continue with rate hiking, what that means for the dollar. shery: we had early positive sentiment in the new york sentiment, that did not last given that officials adding to the hawkish rhetoric. >> we have a serious inflation problem and we are missing our inflation target and credibility. we are mov

session rustling between gains and losses and not having a great deal of confidence, we did hear from jim bullard. they kept reiterating they need to keep raising interest rates. credibility is on the line. broadly being echoed by the chicago fed chief in minneapolis saying the central bank should deliver on the increase, this is what we're seeing, their potentially being seen that overly aggressive rate hikes could trigger a recession. a soft landing is looking less likely. shery: those comments calling inflation a serious problem did not bode well for the treasury how they are getting back into the market. we have seen a massive selloff in the space. that lifted positive sentiment overnight, but the rebound did not last. we're seeing the worst treasury rout in decades, the 10 year yield climbing in 2022 which is more than in any full year since 1962. haidi: let's get more on the market reactions. let's bring in emily. we saw a reiteration of what we already knew was a commitment from jay powell. what are the markets confused about? emily: we started the day, i had a lot of analysts talking abou

kathleen: i want to follow up on this, jim bullard was the first, the fed president talking about moveore aggressively and front rate hikes rather than waiting a long time to see how they play out because you want to make sure they are having an impact on inflation expectations. you want to have an impact on what yields are and how much tightening or are getting from the market. do you think that applies to the rba? is it different spaces where wages are? it is not the same case? >> there are a few differences between australia and the u.s.. the main difference i see is that inflation is much more of a problem in the u.s. than it is in australia. you could see the potential of a wage price spiral emerge in the u.s. because wages growth is much higher compared to what we have in australia. even though that labor markets are extremely tight. there is a disconnect in the sterling weight system that is not -- in the australian weight system that is not connecting. has inflation expectations get out of control here. kathleen: i am sure that you poured over it like everybody else, what does

jim bullard more or less said that i do think there's a market taking in the hawkish speak saying theycan't necessarily be complacent wanting to see more help on inflation in a few months' worth of data. it could mean by march they are where they have to be on rates >> twitter, shares are on a tear after a delaware court slapped down elon musk's request to delay a trial. look at the stock up still a long way from $54.20 julia boorstin has more. this one didn't go his way, julia. >> reporter: it did not go his way. there was a little bit of this ruling that did work in his favor and the judge said musk's team will be allowed to take some of the information from the whistle-blower and incorporate that into their case the allegations do change their argument the fact the judge decided not to change the date of the trial, still set for the week of october 17th a five-day trial the fact she didn't budge on that indicates she doesn't think the whistle-blower's allegations are a game changer we see the stock move higher because there's a sense based on what the judge said that she is going to

we heard from jim bullard reiterating the idea the market resuscitation of the fed messaging is probablyhe thinks the market is finally getting the picture. -- futures up by .3%. maybe a little recovery for the nasdaq 100. it was a tough session. the analyst downgrade for apple and the news from meta. a top accurate -- the top apple executive seeing the downside when it comes to chipmakers. .25% higher at the moment. they are heading for the third straight quarterly drop as we round out -- to remember given the volatility. shery: i have to say, of every analyst we talk to, the first thing out of their mouth is a huge side. everybody is busy. coming up, korean battery maker making its market debut. this is bloomberg. ♪ haidi: breaking news out of japan. jobless rates coming in at 2.5% for the month of august. just as economists had expected. also down from 2.6% the previous month. the job to applicant ratio coming in at 1.32. slightly higher than economists expected. also an improvement from the previous month. we were expecting better numbers this month, given the summer travel season pr

michael: as jim bullard says, if you want to get somewhere, get somewhere faster.ay. jonathan: what is thursday, tom? lisa: cpi. jobless claims. jonathan: nasdaq, down point two percent. euro-dollar, we are at parity, positive .1%. tom: in america, terrific news flow. these are serious matters, in particular with the war in ukraine pushed up against all the other conversations. the conversations of europe are complex, now we go to the chief economist of baron berg. careful conversation on these moments. what will you listen for from christine lagarde after she has decided there is no procession ahead? >> i will listen to three things. what does she say about the future path of interest rates? does she go by this meeting by meeting approach? any inkling of the next move will be 50 or 70 five, that is the one key thing. another explanation as to why they do not see a recession, we expect a significant recession in the coming months. any comments on quantitative tightening --in the future, or what do they think about current yield levels. are they anywhere close to th

jim thorpe. thank you. >> please welcome the story in and author candace bullard.applause] >> it'sry such an honor to be here at library of congress which is a national treasure to be withss the librarian of congress who is a national treasure and to be with all of you. thank you for having me one of the great regrets of my life happened at the national book festival 11 years ago was the first time i was invited it was still at the mall a stunning series for history and humor and fiction and then and authors tend i went into the tent and i was talking with one of the volunteers who asked me if there are any authors i like to meet i'm pretty shy so i was about to say no thank you purchase then i looked up and i saw david mccullough. i will never forget it you could notis miss him tall and straight back elegant and smiling so before i could chicken out i i said yes is there any chance i could meet david mccullough? i read his books for enjoyment that i wanted to thank him for that but six years earlier how my first book i had a child who was born with stage iv neurob

jim has already talked about how important it is to stay to the two-year yesterday they had 4.35. how back to 4.28 we did get evans, as we said, bullard>> tomorrow is the big day. cnbc's delivery alpha returns in person jim and i are going to actually be there in person not our simulations. >> it will be so much fun. >> it is going to be fun as well, you can hear what the world's top investors navigate a very challenging market. to register, scan that qr code you see on the screen and we'll be there "squawk on the street" will be right back millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest mobile service. and now, introducing the best price for two lines of unlimited. just $30 per line. there are millions of happy campers out there. and this is the perfect time to join them... with the best mobile price for two lines of unlimited. take the xfinity mobile savings challenge and see how much you can save. switch to xfinity mobile today. millions have made the switch from the big three to the best kept secret in wireless: xf