joining us is kevin warsh. ver instuon, former memberf the fed board of goveors, and, kevin,reat have you here on set. >> hey, becky. great to be here. >> let's talk about what we have been talking aut for a week at this point. jay powell spoke last week. the markets thought they heard that they were going to be lots and it was off to the races.r, since then, we had a parade of fed officials here on this program, john williams, austan goolsbee and oths, they all seem to be walking back what jay powell said, throwing more cautious into this and telling the markets they basically -- you're interpreting this a little bit differently. what is your take? >> i'm thoroughly confused by this discussion. so i don't know how much lht i can shed on it. it should have been quite clear from the testimony, from the speech, from the dots that the fed gave, they were saying the party is back on, and markets took that seriously. they spent most of last year and a half putting the punch bowl away, lock up the liquor cabinet. and

that from former federal reserve governor kevin warsh.ow that is your basic fiscal and monetary inflation which unfortunately has washed out much of the productivity and wage gains of the trump tax and job act of 2017. so almost surely the economy is headed for a significant slump. now it suffered inflationary recession in the first half of 2022. maybe headed for deflationary recession next year 2024 but there is a way out. there is a cure. how about spending less, taxing less, regulating less, and fracking more? how about putting big government socialism into a deep dig grave and replace it with economic freedom where free-market capitalism is the best path to prosperity? you know growth makes people happier and america could use more growth and happiness. that is my riff. we'll talk more about all this economic stuff later in the show with steve moore and michael falkander. first up let's bring in kansas senator roger marshall. senator, welcome back to the show. i would like to dive in on this 106 billion-dollar package. chuck schumer i

kevin warsh, who was on our panel, said a great stat which i used in my riff and attributed to him.ey've had $9 trillion increase in federal spending. 60% of which was monetized by the fed. so that's your basic -- >> there's where -- larry: fiscal and monetary inflation. some of that's trump but not all of it. >> so a couple observations. number within, you cite these, well, we might face a recession next year. we also show some polling, most americans think we're already in a recession. larry: yes. >> the middle class, one of the things that came shining through, the middle class got screwed by this biden inflation. they're feeling 15-20% increase in prices and just because inflation has come down doesn't mean that higher prices, they are permanent. and so they're getting really screwed by this. number two, the first chart we showed at at this conference was i'm tired of people saying we can't grow out of these problems. we can grow out of these problems. larry: sure we can. >> if we get back to the, i think you said 3.2 -- larry: 3.5. 1947-2000. 3.5% per annum. >> even if we get 3

that messaging isn't sitting well with former fed governor kevin warsh who joined us on-set yesterdayuld be, but to promise, effectively what they're doing, they're going to cut rates next year when they don't know the state of the economy is forcing them to tie their own hands behind their back. recent experience suggests that's a very bad idea. >> here to talk more about the fed and path of rates in 2024 is nick timmeros. latest piece titled "powell's pivot seo confusion over when te fed will cut." heard variations from people's interpretations of what he said, jay powell said last week. to me he was clearer than ever, but there does seem to be some market confusion about what happened. what was the message that he was trying to send out? >> well, i think the disconnect that you had the policy statement maintaining a weak tiding bias. right? trying to hold on to the option to hike again in their policy statement. what they all vote on, but in the press conference don't sit around and strategize on this and divestiture speaking for the committee sounded mosh dovish. that's i think wh