kroszner former fed governor.the chairman of the fed siding arthur okin, and i will dragon the wonderful john taylor of stanford university as well. in this job economy that you confront, this theory matter anymore? or are we making it up as we go along? dr. kroszner this is a bit unusual. we haven't seen the fed raised rates so rapidly before. we haven't had the coronavirus economy or inflation like this in 40 years. theory still helps but the data may be a little different than 40 years ago. tom: let's go to your wheelhouse and newtonian calculus. if the second derivative we are witnessing right now, what do they signal to you? dr. kroszner: what the fed is looking for is waiting to see where the labor market will crack. so far it has been very strong, continue to create a lot of jobs. continue to have a low employment rate. what the fed will be looking for is some impact of its policies on the labor market. we have seen it in the housing market. the market has gotten that the fed will be raising rates into the

let's bring in former fed governor and boothe school of economics professor, randy kroszner great toe same question to that we put to mark zandi. that is the higher than expected jolts data that turned the market this morning. as we focus not only on the fed tomorrow but on another jobs report at the end of the week, what is the labor market signaling and what does it mean for discussions under way among fed officials today? >> clearly the labor market will be a key focus for the fed and how they think about policy going forward, because unless they see the labor market starting to weaken significantly, they'll have to continue to push rates up because that will be the key thing that slows the economy down, slows demand down, which is their main tool they have is trying to slow demand down and if the labor market continues to be on a tear, that's going to be tough for them and they'll have to continue to move. >> this idea of a pivot, we've talked about this a lot with steve liesman, this idea of a pivot for which the definition seems to be changing and shifting, do you expect to see