i want to bring up a quote from larry summers.need clear signals the fed is prepared to accept slowdown, otherwise we are going to make the mistakes of the 1970's that will create the need for a catastrophic recession. our guest this morning is azhar hussain. larry goes on to say really that we are living in a world where we are trying to have this immaculate condition of inflation and it has not happened. how much more aggressive does the fed need to be than the markets currently assume? >> the markets are pricing in a 50 basis point move at some point. does the fed need to get ahead of the curve? yes. is larry correct in terms of -- it is hard to say. the inflation story is murky enough. most than the markets believe it will slow grow by itself. perhaps that is the key here. the central banks have an unenviable job here. francine: they always do. it is terrible being a central banker. they are the smartest people in the room may be a central banker in this environment? >> i think bonds are saying recession -- are not saying rece

larry summers joins me now. he was the treasury secretary in the clinton administration. conomic war, how are we doing, and what should we do? >> we're winning. we're doing very well. we have inflicted more damage, more quickly with more unity on our side on the russian economy than almost anyone i think would have expected. there's more we can do. there's more that can be done to cut off russian financial institutions and, of course, critically, more that can be done to cut off russian energy production. and i think we very much need to keep those threats in reserve so as to be able to exercise maximum leverage. now the challenge for us is to bring these early successes to some kind of conclusion. and that's a very dangerous and complex thing, but i think one has to give the biden administration enormous credit for what's been done so far. i think the concept of escalating sanctions over time never firing your last and most brutal bullet so as to maintain leverage is a very good one. i worry slight -- i worry slightly, fareed, when i hear us protest a bit too vigorously t

larry summers will tell us. managers are pretty much the same, but at fisher investments we're clearly different. (other money manager) different how? you sell high commission investment products, right? (fisher investments) nope. fisher avoids them. (other money manager) well, you must earn commissions on trades. (fisher investments) never at fisher. (other money manager) ok, then you probably sneak in some hidden and layered fees. (fisher investments) no. we structure our fees so we do better when clients do better. that might be why most of our clients come from other money managers. at fisher investments, we're clearly different. i brought in ensure max protein, with thirty grams of protein. those who tried me felt more energy in just two weeks! (sighs wearily) here i'll take that! (excited yell) woo-hoo! ensure max protein. with thirty grams of protein, one gram of sugar, and nutrients to support immune health. getting the incredible iphone 13 without t-mobile, makes as much sense - as playing hide-in-seek.

i'll let you read it and you do a better larry summer voice than i do. >> i believe the fed has not internal liezed thor rors over the past years said summers and is operating with an inappropriate and dangerous framework and needs to take far stronger action to support price stability than appears likely. i think it was elizabeth warren who called chair powell back in the day as well and he's channeling senator warren there. that's pretty harsh criticism. >> larry did really well in college and economics and math i think he skipped finishing class or he failed finishing class. >> ouch. [ laughter ] >> what he's going after here is a fascinating argument, right? which is what is the fed's theory of the case of bringing down inflation can this idea of quarter-point rate hikes doled out in a meeting by meeting, can it do the job of bringing down the inflation we have now along with some help from supply bottlenecks and people coming back to work can all that create the inflationary environment that the fed seeks? barry says no and his concern and i think it's legitimate and the fed may have to

larry summer said what would happen if they did and we had the inflation. some of that was for things that were related to covid testing and vaccines and testing of that money is gone some issues to deal with problems at the border most of it was for a purpose that what happened to the other many how much of it is still left and is there enough to pay to recharge the accounts that are related to covid and people's health expenses? my advice is to be totally transparent about one.$9 trillion went. let's see what class and if we cannot find out what is left to fully pay for whatever the administration would like to do next to and to the accounts i personally believe need to be added but i don't think we need to do it as an emergency or without looking at the books to see what happened to the amount of spending that basically equals the entire discretionary budget for the country to put on top for the entire discretionary budget for the country one year ago this. >> we are hitting the one month point for the war in ukraine. over the last weekend i have a great

that kind of inflation, according to larry summers -- matt: he knows more about the economy than i docan agree that what has gone up is kroger's stock. best performer in the s&p 500 today. thank you for the breakdown. coming up, sanctions are punishing russia's wealthiest business people by bringing to a stop 30 years of integration with the global economy. we will talk about the next possible end of the oligarch era. this is bloomberg. ♪ jon: this is bloomberg markets. i'm jon erlichman. with matt miller. customs officials in france have seized a giant yacht owned by the rosneft ceo. the sanctions apart -- according to french authorities, the yacht was docked near marseille and would be prepared for an urgent departure. when you are 280 feet, i don't know how quickly you can get onto the seas. we have talked endlessly about this coordinated sanction activity by western leaders. whether it is what we heard from president biden or the actions taking place in a country like france, coordination on what feels like putting an end to the oligarch era, is evidence through a story like this.

larry summers is at 5% to quell inflation.dam pozen is somewhere south of that, probably on the three. where is the magic number, the new neutral rate that northern trust things we are going to get to? carl: i will take the under from what larry summers said. the things that make up the neutral rate, things like demographics, a supply of savings in the economy, have all been pushing that down for the last couple of decades really and the forces of the pandemic which have damaged global demographics and have probably not done anything to reverse that trend. i think the federal get into the 2% range and it's going to find as you have hinted that liquidity conditions are getting tighter earlier than they might have thought so that is why i would say they are not on a preset course. they will want to check every stair step to make sure that the markets are taking this the appropriate way and they are not going further than they need to go. dani: -- -- let's manus: let's see -- manus: let's see. they want that flexibility. stay wit

larry summers warned it would happen, it did happen. they tried to deny it happen the.hey tried to blame everything else they could. economically biden is not in touch with reality. i don't know other than replacing his entire economic team i don't know how he can get back in touch with reality. wholesale inflation is up 10% the last two months. it who-year record. it will hit retail prices. gas is up, affects transportation and cost of everything. labor is up which affects the cost of everything. we'll have tremendous, tremendous inflation going forward and this president can't do anything to stop it. elizabeth: why do you say that? why do you say that, why do you say that going forward? >> well you've got, look if wholesale inflation is up, energy prices are up, and labor is up, that is what drives inflation. those are costs that businesses have to absorb. when you put that into the mix you can't get away from inflation. everything, everything costs more to make things costs more. elizabeth: okay. >> it's ridiculous. really, he just needs to enact policies that encour

and larry summers was a prominent democratic a communist on —- economist and said the same thing withhe american rescue plan that this will be inflationary. so now if we push the products off the market and then i acknowledge that but on the other hand compared to financing the russian war effort and then to see what's going on in ukraine at the most americans would say we have to make a temporary sacrifice then we will do it and putin is a war criminal. host: talk about defense spending that the white house request for ukraine six.$4 billion the white house has asked for so far three.5 billion for the defense department nearly $3 billion for the state department and usaid and the headline from "the wall street journal" says the aid to ukraine throws a wrench into the government funding talks. congressman what can you tell us about that? the short-term funding measure is expiring next friday. >> i very much disagree with that assessment. i don't see ukraine funding as a problem in fact this morning it looks like the administration may up the request at $10 million for ukraine both for

official for the years 2023 and 2024 the funds rate needs to be above knew tralt i don't know maybe larry summers is doing a jig some place because he just won at least part of the way the notion that larry laid out in the piece at "the washington post" and something we have been talking about for a long time. would the fed have to raise above neutral? now the median fed official believes that to be the case and i believe that to be a profound shift on the part of the committee here. >> steve, let's come back to washington now and joined by ivory johnson and jamie cox. i saw you talking about seven rate hikes this year believing your head when rick mentioned the curve tighter on 2 to 10s, 5 to 10s you don't believe the fed can hold to what they said >> no. i think the word or the phrase is policy error. late in 2021 now they're going to go too fast in 2022 and perhaps throw the economy in 2023. the economy is much different and no reason for the fed to go this quickly they have other tools and bring rate where is they need to be and control inflation a different way. >> this is a year to keep you

people like larry summers who you know worked for bill clinton and barack obama said this is a majors: right. >> economy is already too hot. we'll make it worse. we'll create inflation. that inflation directly the result of excess demand created last march and people don't talk about it now but that is one of the reasons why we've got very large cost of living increases. people got too much money in their pockets. they were also disincentivized to go into the workforce. charles: larry summers, fuhrman, steve rattner, a lot of obama folks have come out and occasionally said listen this is absolutely wrong-headed economic policy. i saw something else that is really intriguing looking at that number, this data, employee compensation as a share of output. it went down under president obama. it rocketed higher under president trump and now it is free-falling under biden. how ironic is that? because they want to dismantle the policies of president trump but under those policies when workers got a fair share. they got a big piece of the pie. so if we dismantle it, what is going to happen? w

joining us now, larry summers, former director of the white house national economic council.war, is that, a, a fair assessment and, b, worth it for the united states? >> you know, economic war is a very strong term. this is as serious an effort to do economic damage to a major country as we have engaged in at any point. i think it is worth it. i think ultimately the question of whether aggression is resisted, whether some kind of international order is maintained, will be remembered by historians much longer than what happens to the cpi inflation rate over the next nine months. i think to be truly effective, we're going to have to figure out a way not just to restrict our own imports of russian oil, but to restrict exports of russian oil generally. if we don't do that, it is going to lead simply to rearrangement of the flows that won't do much -- won't do as much damage to russia, will still do some potential damage to us. but i think taking strong action is broadly the right thing to do. >> it seems to be what you're saying is, yeah, it might raise gas prices at the pump, so

you already mentioned larry summers.hey passed the american rescue plan, he said he believed it was the worst, the worst policy that had been put forward in 40 years and would result in exactly what we're seeing today. so they can't say they haven't been warned. in fact i will go a step further, this is what they wanted. biden said he wanted to stop drilling. they have not approved one additional permit on federal land. that was by design. they wanted the price of gas to go up, multiple individuals in the administration said that was the policy. this isn't by accident. >> let's stay on that. by the way the white house is not talking about changing rules about retirement accounts to have money be invested to advance political or social agendas like climate change. we thought retirement income was about raising retirement income, not politicizing it, tomas. here is the thing, to the congressman's point these are the individuals who said stop fossil fuels. the president said it. gene ma mccarthy. i want fossil fuels gone. s

instead of the warning from from people like larry summers and others, our democratic colleagues forged ahead and now america's working families are paying the price. i hope president biden has had heat a plan he will announce tonight on how he will attack inflation. that plan cannot, cannot involve his ill-conceived build back woke agenda. this is another $5 trillion spending bill that thanks to bipartisan opposition did not go anywhere but threatens huge tax increases and huge inflationary spending. this is not time to pile on and make the american people pain worse. we need to do everything we can to reduce inflation, to increase their buying power. would also like to hear the president strategy to address another crisis and that is the crisis at our southern border. my state has 1200 miles of border with mexico. last year alone we have seen 2 million people show up at the border either to be returned to their country of origin oh or more likely to be welcomed into the united states and be given a slip of paper and say show up for immigration court hearing in a year or two years. wel

you have larry summers, the former obama treasury secretary saying that the american rescue act in march of 2021 was the least responsible macroeconomic policy in four years. and the third thing i talked about was really drug overdoses. they spiked over the last 12 months. humans are social animals and when you lock them up in their homes, when they don't go to work or restaurants, they have real behavioral health challenges. what i was really trying to express in that op-ed was public health is more than just covid. there's a whole bunch of other issues associated with public health and you can't destroy those others by trying to eradicate a virus that you cannot eradicate. that's the difference between the administrations. the biden administration tried to eradicate the virus at any cost and those costs were enormous. and by the way, they didn't eradicate the virus. host: the tally of specific covid cases and fatalities, what do you attribute those numbers to? >> we were pursuing a very aggressive policy toward developing therapeutics. when they came into office they dropped that and p

you have larry summers, the former obama treasury secretary saying that the american rescue act in march of 2021 was the least responsible macroeconomic policy in four years. and the third thing i talked about was really drug overdoses. they spiked over the last 12 months. humans are social animals and when you lock them up in their homes, when they don't go to work or restaurants, they have real behavioral health challenges. what i was really trying to express in that op-ed was public health is more than just covid. there's a whole bunch of other issues associated with public health and you can't destroy those others by trying to eradicate a virus that you cannot eradicate. that's the difference between the administrations. the biden administration tried to eradicate the virus at any cost and those costs were enormous. and by the way, they didn't eradicate the virus. host: the tally of specific covid cases and fatalities, what do you attribute those numbers to? >> we were pursuing a very aggressive policy toward developing therapeutics. when they came into office they dropped that and p

the best thing that happened last year was bbb going down but they already done the damage as larry summers pointed out, the so-called $2 trillion rescue plan is what produced forty-year high inflation so they've done all the wrongthings . they own this and it will take the feds to squeeze it out and i don'tknow how long that will take . but they need to be stopped with all the spending. that's why even on an attractive package like the covid thing we're insisting on spending some of this money, reprogramming some of this massive amount of money that's still not out the door from last year. >> we have a couple more minutes left and i want toask you about internal stuff . you've now and in this 50-50 construct for a little bit. i'm curious about your current relationship with chuck schumer. >> good. i like chuck. we don't have any, i mean we have different goals. it's not an adversarial relationship in any way. >> and do you have any thoughts about how he's managing the senate ? >> i've been the majority leader and i've been a minority leader . majority is better but it's challenging and the

larry summers was a prominent democratic colonists secretary treasurer for bill clinton, said the samehing with the american rescue plan was passed. this is going to be inflationary if got to feel it. so now if we all the sudden push russian oil products off the market and probably run the risk of the short term of more inflation. i acknowledge that prey on the other hand i would say compared to financing the russian war effort which you can turn on your television on any stationro and see the horror of what is going on in ukraine, i think most americans would say flip to make a temporary sacrifice we will do it. we're not going to underwrite the war effort every war criminal for that is what putin is pre- >> who talked about defense spending a chock specific house your quest for ukraine the white house has asked for so far three and a half billion for the defense department. nearly $3 billion for the state department and usaid for this liheadline for the wall street journal says this about that proposal, the 82 ukraine throws a wrench into the government funding talks. congressman col

we have that story in former treasury secretary larry summers thanks high inflation could drag on to a careful steward of the things that matter to you most. i promise to bring you advice that fits your values. i promise our relationship will be one of trust and transparency. as a fiduciary, i promise to put your interests first, always. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire ♪ ♪ matchi it's electric...iption. made extraordinary. ingenuity... in motion. it listens, learns, adapts and anticipates your every need. with intelligence... that feels anything but artificial. the eqs from mercedes-benz. it's the car electric has been waiting for. have you ever met a transgender kid? there is no atmosphere that is the same as p

democrat economist expert larry summers, who had been treasury secretary for president clinton, he warnedhat this is going to cause inflation. last february the former obama and clinton advisor wrote in "the washington post", quote, -- this is from larry summers -- there is a chance that stimulus on a scale closer to world war ii levels will set off inflationary pressures. he said inflationary pressures of a kind that we have not seen in a generation. he's exactly right, that's what's happened. that's why we're at a 40-year high of inflation, and that's a generation. obama advisor jason furman said the same thing. he said that bill was, quote, definitely too big. he said i don't know any economist, any, he said, who are recommending something the size of what president biden was doing. yet, joe biden proved to be hard of hearing, refused to listen to what they had to say, signed the bill anyway, put $2 trillion on our nation's credit card, and he flooded the country with government cash. ever since then, this country has been in an inflation upward spiral. at the same time joe biden has a

that, even larry summers, a former economist under the obama administration says is a tax on the american hard working consumer. your response? >> well, first of all, the president has been very clear he will not enact any tax increases that affect anyone making less than $400,000 a year, and that stands in contrast to other republican positions. >> sandra: the inflation number on the screen, is that not a tax on the hard working american family? >> inflation is a problem, we are trying to lower the prescription drug costs, lower healthcare cost, lower costs -- >> sandra: how are you bringing down gas prices? >> look, on gas prices, simple. we need more of supply of oil in the short-term to bring down prices. gas is up about a dollar because we have shut off access to russian oil to the global market. it's the right thing to do. democrats and republicans alike supported that effort to end imports of russian oil and now we need more supply on. it's using our reserves and producing countries and the world, that's what we are doing. >> john: to that end, what are you doing to increase domest

treasury secretary larry summers. our next guest says the u.s. onomy may decelerate further than anticipated. he is a senior investment strategist at all spring global investments. larry said that even after jay powell got on board with the rate hike, that has definitely made it clear that they are all in favor of a rate hike at each meeting this year. yet the stock market says and people say this, the fed says the economy is going to be fine. so we can buy stocks. >> it seems like the fed is trying to match market expectations as opposed to manage expectations. that's the feeling i got from the press conference and speeches from jay powell. one of the big issues is it marks there growth outlook for this year particularly due to the situation in russia and ukraine. that's probably not the big explanatory variable behind the downshift from 5% growth to 2.5% growth. more of it is probably due to this increase in interest rates, renewable accommodation. it's not just the level of rates, is the rate of change. if they suddenly go 50 basis points here

larry summers on the washington embargo on russian oil. gher prices of gasoline are the price of freedom, it is a price that this generation of americans should pay. david: the ceo of equity group investors on what war in ukraine has made on investable -- uninv estable. >>

larry summers on the fed playing a tough hand. >> i think they are recognizing that they are behind thek they've still got a long way to go. david: blackrock on the federal reserve during multiple crises close to the zero bound.

larry summers told them. you cannot get somebody closer to the democratic party, from being a democrat -- clinton administration done secretary. they just kept going forward and even today, first they would say this transitory, and notably the -- then they would blame the pandemic now it is prudent. even the -- now it is putin. even the fed chair says it is not going away, -- close he thinks is good for the deficit -- nancy pelosi things it is good for the deficit. what policy do we have for the next congress? >> democrats continue to put forward plans to spend their way out. we need to grow our way -- ourselves out of the. challenge that democrats a partisan we have to put in tax policies to encourage growth united states. re-examine the education system that we are tying the preparation to the jobs for the future. we have seen this disconnect, we have to empower moms and dads to make sure their children are receiving the education they need to join the workforce of the future. we need to continue to work to

stop the spending, washington. >> bill: he meant larry summers right? not larry lundy? >> stephen: both of them. both the layers. >> bill: all right. to larry's. >> robert: the fed has been behind the curb. they are balancing, and has increased over the last quarter it's ridiculous. this is time to actually start the hike. i would have been at the 50 basis points if not for the russia ukraine crisis. >> stephen: robert you're starting to sound like a republican. today, bill i agree. i think we got some agreement. if you and thank you gentlemen per night to see both. >> sandra: meanwhile president biden is under pressure right now to late on the law in today's high-stakes phone call with beijing. former national security advisor work robert o'brien what biden needs to say to keep china in check. damaged devastation across ukraine only worsens, leaving many to wonder. did biden drag his feet and his retaliation against russia? >> take an active position peered support us with defensive weapons. with modern health. with the isolation, economical isolation of russia. and do

special contributor larry summers on being caught between a rock and inflation and a hard place of recessionhairman's hope that a soft landing as possible, but i do not think it is something to count on. david: bank of america on corporate america coming to terms with zero omissions in a time of war. >>

this week, larry summers on the direct impact of the sanctions and the ripple effect on financial marketse. >> they are delivering a real jolt to the russian economy. romaine:

going to have a growth recession from deutsche bank, a semi-hard landing from grant thornton, larry summerss the perennial bear with a recession in 24 months. what kind of lending are you going to achieve with six more hikes, and maybe a couple of 50's thrown in for good measure? mads: the key thing which happened is that that has actually started managing expectations and inflation. we are probably going to be at a soft landing. it is coming from a high-altitude rate compared to the many flights we have had this week, we are coming to the landing strip with a high speed. the pilot has refocused and the crew, and that that is now refocusing on their actual mandate. that is the good news. the bad news is inflation is out of control, but the fed says inflation will come down, and therefore we will get a landing. the eu economy is strong at the moment and cannot continue at this rate. that's why it is going to be a soft landing. francine: how do you play divergence? i know the allure of chinese bonds is not effective as of last week, but are we going to see a repricing, do you expect a 50 basi

i have heard larry summers talk about this, and bill dudley has talked about this, that the level of neutral fed funds rate that they will need to get to is much higher than right now the market is priced out. tom: are you suggesting to sell apple, amazon, sell this, sell that? jonathan g.: i am neutral on the tech sector is. i think that the key is 20% of the s&p is a really great inflation hedge. that includes the cyclical sectors like industrials. the rest of the market does not do particularly poorly in this inflation environment, they just do not benefit as much. tech is one of those areas that is kind of neutral in this environment. tech does well -- if you think that we will slow down and the recessionary risk is higher, those people are more bearish in they probably want to roll into tech because it does better when the economy decelerates. tom: i have been crushed and destroyed because i have been triple leveraged in cash when you have been going up with a bull market call against all of us. congratulations on a really wonderful 24 months. we need to bring you forward in rep

jonathan: larry summers moments ago saying this.ould anyone's best guess beat that for the first time we would have unemployment at 3.5%? this is the triumph of hope over experience and analysis. there it is, in the forecast of the federal reserve. i think it is fair to say he is throwing shade at the forecast out last wednesday. lisa: he has been for a while. how much do they have to come out and say we have to dampen the economy to dampen inflation? this is not a good situation for them. it has a lot of people nervous. jonathan: we will be keeping an eye on that. we have been lucky over the last month with safe and has to team at bloomberg bringing us conversations out of brussels and the continent. we have another one right now. hey, maria. maria: we are joined by latvia's defense minister who is one of the most outspoken ministers in the european union when it comes to defense. you were telling me that europe needs a reality check and needs to be more forceful with russia. what do you mean? >> the job is half done. we reacted in

. >> stephanie larry summers has to feel vindication another op-ed in "washington post" this is a democratnow for the entire year, writes in "washington post" the fed has not looked at tts errors past year exactly what you've been saying fed turning a course to stagflation recession right riding transparentlying likely to lead to stagflation with unemployment inflation averaging over 5% next three years ultimately major recession do you see recession in 2022 when you were with us said a profits recession coulding what does that mean. >> i think we will have on a economic recession, as well, the profits recession is already on the cards, based on the he divergence cpi consumer prices and ppi, and what happened over the last year, or more than that is that costs have gone up lbl double ability to pass them on consumer the consumers seeing headline inflation, behind-the-scenes, margins are getting squeezed this is why i think so i dangerous for fed ininflated massive bubble financial assets at a time when taking away liquidity and the earnings picture is already you know deteriorating so what

larry summers who's been sounding the inflation alarm for much of the past year, he's not very optimisticput out this line. he said, the fed's current policy trajectory is likely to lead to stagflation and ultimately a major inflection. stagflation is a toxic mix of slow growth and high inflation something we saw in the late '70s, early '80s. it's hard to get out of. no one wants to see that. if consumer prices start to ease, then the fed could feel vindicated here with their patient approach. if not, i do think the recession fears are only going to get louder. it is so critical that the fed gets this right here, dana. >> critical, and i think it's fair to say, everybody is rooting for those consumer prices to come down. thank you so much, machlt i appreciate it. >>> if crude oil prices are the rocket, gas prices are the feather. when barrels of oil plummet in price, gas prices tend to lag behind. crude oil prices have fall 2% from their peak on march 8th while gas prices are rising. they've risen 3%. as cnn's rene marsh reports, it's frustrating for consumers and politicians, and the onl

who warned the democrats if they did with this runaway spending that they would create inflation larry summers told him i mean you couldn't get somebody closer in the democratic party from being in the clinton administration being the secretary treasury i mean he literally i know what he probably said behind the scenes but because of how strong he was out front but they just kept going forward and even today now you get the reporting at first they would say it's transitory then they would blame the pandemic now they're blaming putin i mean there's a different story. now they're admitting even the fed chairs admitting this isn't going away and the only way you get out of inflation it almost seems like it's painful but pelosi thinks it's good for the deficit it's good for everything else i mean i just can't believe this and what what are some of the actions that we can take right away outside of the sound fiscal policy and others do you look to the next congress. >> absolutely the democrats continue to put forward plans to spend their way out of the problem spending away is only going to make yo

larry summers arguing that on bloomberg television for months now.that kind of environment, i would guess for some, depending on what you are investing in, it is kind of hard to be unequivocally bullish. erin: certainly, i think, we're talking about potentially creating stagflation. we are not too much really talking about any type of recession but a slowdown. yes. it's difficult to be bullish if companies are going to be facing this high inflation for a longer period of time. but, on the other side, markets are very bored -- if we know we have to get through this period, six to nine months, we still have very good earnings support, even in the face of high inflation. we haven't really seen those earnings -- come down. so, i think the strength in the u.s. economy is still there -- it's really more about valuation -- and the buye staying on the sidelinesrs -- buyers staying on the sidelines. haidi: where are you finding value at the moment when it comes to mid and small caps? given how much valuations have come down? erin: right. so, one of the anomal

>> if you are the larry summers of the world and heading into recession, it will look like the 2001 dot-come tech companies at the top still. high flying names and growth names we have been following throughout the pandemic and the rise of the stock market over the last decade, those could risk losing valuation to the point where they look like really tasty acquisition for the big cash piles that apple and google and other companies have amassed. dan niles sees this as another 2001 dot-com bust in the making. >> dan niles has been pessimistic, but right in the past are others more optimistic >> let's go to the other dan dan ives from wedbush. he sees stocks as oversold nothing but upside the fed gave us our medicine we took it and everything else is priced in now it is time to buy. especially cybersecurity names after the deal with google scoop up last week those will be hot names. also the cloud companies cloud is growing like a weed ibm and oracle and so on again, all upside. the opposite of what niles said, that is what ives is saying. >> so dan v. dan what does it mean for stocks invest

. >> larry summers, once again, on twitter saying good luck catching inflation you'll wind up with fed. you'll crack the economy. >> i like larry summers when he was the head of harvard. [ laughter ] >> since then? [ laughter ] >> no comment. >> yep we'll see. i mean, goldman, jim, this morning reiterating a call for seven hikes this year. then five more next year. >> yeah. >> and then wilson i mean, these guys, i mean, you have to take away your shoe laces and ties when you read the analysts i mean, they are -- they're so negative no cost in there i think what we saw last week everyone is all these very smart people are saying it was a bear spike. and i come back and say, well, wait a second. there was good news google there's good news apple. we got some pretty good news about microsoft. we got some very positive news about amazon and web services doing quite well we have some take over can we admit companies are doing better these guys never look at companies. i'm down here. okay they're like the generalsin pass of glory. if you remember it they have no idea what kurt douglas -- >>

larry summers warned them. former freshry secretary if they do this inflation will come.y ignored all and moved forward. >> jesse: when you saw joe biden over there in brussels today, what did you think of his leadership? >> jesse: you know, i began to question it because this is a real challenge. i remember him telling me personally and the american public that he thought sanctions would deter putin from entering ukraine. i told him i did not believe that would work. i believe he had to do more to deter. now he tries to change the topic. he wants to blame everything else for his failed policy. be it the border, be it the gas price like denying us a pipeline that allowing putin and now he is saying the sanctions were there. because of those sanctions, he entered another country. and think about what he has warned us just the other day. he goes and tells the american public be prepared for russia to hack the companies. why would they even think to do that? why wouldn't he take the approach and tell putin don't touch one? because just last year he warned putin he said these

. >> yeah, and reading the larry summers op-ed, what he wrote was pretty scary. >> i think if i am lookingically from a democratic perspective, there's a lot of conversations about gas and the ground brief. >> the biden tweet today, it says oil prices are decreasing and gas prices should too. oil and gas companies shouldn't pad their profits at the expense of hard-working americans. >> he certainly is now trying to blame it on vladimir putin, and he has called it a putin price hike and that's catchy, and now he wants to lean on the oil companies, and that's about the only place that americans are feeling this right now in terms of any kind of sacrifice or ripple affect. $800 million in military stuff that nobody knows what it is, and he's saying we are not going to war, we will never do that, and that's the message. the gas prices have a huge political blow back. >> and the venezuela, and saudi arabia -- >> well, we have not seen from the white house if anything has come of those conversations. i do think it's very trajectory, and those are my thoughts and not my colleagues. >> venezuela h

. >> sandra: you know who agrees with you, economist from democratic administration, larry summers, agreeingarry, we now face major new inflation pressures from higher energy prices, run-ups in grain prices, ukraine war and more supply chain interruptions as covid forces lockdowns in china. it would not be surprising if the factors added 3% to inflation in 2022. and with price increases outstripping wage increases, a wage price spiral is a major risk. >> yeah, no, it's pretty much here. i think of it as a price wage spiral, i think the inflation went up first and the workforce is trying to catch up. be that as it may, i have known larry summers four decades. the fed that is to change everything, sandra. last year they said we have been below target a bunch of years, so let's try to go above on the inflation rate that.enter has to be thrown out formally. now they have to focus their efforts, save america, kill inflation. not climate change at the fed, not social justice, not woke politics, they have to go after inflation. >> sandra: you look at the polling, a priority for the american people.

i'm sure you read larry summers' op-ed in "the washington post" the other day.hout massive federal reserve intervention is more likely than ever. do you concur? >> i think -- i'm glad to see the fed start the process. i think they're going to need to continue to ratchet up rates. i think there are things -- this gets harder when you've got a war going on with all its disruption. i think there are some low-hanging fruit, passing the so-called chips bill that would invest if american semiconductor production so we could ease supply chain challenges. that's not going to have an midfield reaction, but it will be a good signal to the market that we are working in a united way to take on some of these supply chain issues. but the fed has its job cut out for it. that's one of the reasons we need to approve the second federal reserve board members. luckily, we got four out last night, but we need a full-time federal reserve. i've been very disappointing that for weeks on end some of my republican colleagues could have voted no, but they wouldn't even come to a meeting.

much i think the balance sheet is going to matter more >> what you're saying reminds me of what larry summersost earlier last week where he said they might have to go to 5% or something of that magnitude to achieve those goals, and obviously that's not in th market you're kind of saying a lot of this is noise until or unless we get to such a point. you've looked back at that cycle kind of a little different, but just because it gives a recent example, the early 2000s, what outperformed then? what does it point to in terms of the parts of the market you want to focus on for this difficult time we could be facing? >> yeah. it is somewhat analogous you're right it's not entirely analogous. rates went from 1 % to 5%. i can't remember how many hikes there were and there were other things going on, obviously, in the economy. but what did well counterintuitively was technology, energy, materials, those were names that stand out to me. and we also have rising inflation, and so as we all well know, and so -- but many of the names benefit from that as well. so we like things like eog which has -- it's

. >> we have heard some economists, larry summers among them say this is too little too late to reallyht inflation. today on wall street, traders saying it was too much. that it could tip the economy into a recession. what did powell have to say about two it has him's? -- about those criticisms? >> powell was asked about whether there was a rising risk of recession should as one analyst put it, the fact he is being asked the question is not great. if the fed chair has to say no recession, it suggests the risk is rising should the take away is if you look back two years, when the pandemic was green commerce to a halt, powell got after his colleagues saying we need to get ahead of this. it seems the fed is in a similar place with the risks coming from a completely opposite direction. they need to find the gear where they can get interest rates up faster but not so fast they crash the plane and they have a hard landing. >> thank you very much. >> thanks for having me. judy: today marks one year since a mass shooting at three atlanta area spas left eight people dead. six of them were women

larry summers? he says it's wrong to blame putin.of this is, you can't deceive the american people on the economy. 58% disapprove of biden on the economy. you can't tell people their gas prices are low when they're picking stickers of joe biden on the pump pointing to the gas prices. >> emily: the media needs to pin him down so voters can hold him accountable. "wall street journal" has a great op-ed. they say next time someone gets to ask him a question, will you do everything in your regulatory power to make it easier for american companies to produce more oil and gas to make the u.s. and its allies in and europe less deendent on russian energy. the goal is to get a strait forward respond. it gets to the heart of this geo political moment. it gives the president a choice. he commits to this and we hold him to it or he shows his true cards that he's capitulating to john kerry and the left which does nobody any favors and will make us suffer more for it. the bottom line is he needs that answer and we need to hold him accountable if he

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larry summers, joe manchin, lots of democrats saying the same thing. >> he recently said joe manchinhelps ukraine. white house wants. >> bret: or even in the white house at that podium saying things that try to mold the message is putin price hike going to work for this white house? [laughter] >> putin price hike will only work if you believe in biden's calendar. biden's calendar goes something like this, january, march, february, april, may. the idea that what we all saw and know with our own eyes that took place before the invasion of ukraine is only attributable now to the was price hikes are only attributable to putin's invasion is nonsense. it's a reversal of time. it's what politicians say when they are in trouble. they reach for anything that they can get heir hands on. but the problem is something like this is so tangible and real in the lives of the american people that they have felt it for so long. it doesn't senator what any politician says. the public feels the truth because they live the truth. so, i totally dismiss it. it was a big mistake for jen to use that same word

president biden should instead have listened to professor larry summers. he was president clinton's treasury secretary and president obama's chief economic advisor. professor summers warned that all the spending the progressives were insisting on would fuel the fires of inflation, and now we know how right professor summers was. but that $2 trillion spending binge, just when the appetite appetite -- just whet the appetite of the very young radicals in the democratic party who don't remember 1970 stagflation. and if they had memories of stagflation, they willingly ignored history. instead of offering to find common ground on issues like prescription drug pricing, the democrats wasted much of the year trying to spend another $4 trillion on a slew of brand-new entitlement programs. his one significant bipartisan achievement -- passing a bipartisan infrastructure bill -- was an all but gift wrapped and handed to him by a bipartisan group of senators. even then liberal democrats nearly derailed it by insisting its fate be tied to the passage of their unrelated

>> do you sort of agree with the larry summers take from earlier this week. and again, he's been critical of the fed for being behind the curve. he now thinks they risk sending the u.s. into stagflation or a recession. what do you make of his comments >> well, that's always the risk of being behind the curve. behind, you eventually have to catch up or inflation will go bananas. he's reflecting experience we saw this in the 70s, and it was -- a terrible time i think that's common sense. that's what we're learning and hopefully the people at the fed will pay attention to the statements coming from larry and others for that matter. >> why do you think it is that a pandemic has unleashed such a lasting shift in the labor market >> i think it's basically very unusual, and people are getting used to it people are working at home they're not working. they're doing different things i think we have to realize it's going to be a new world in many dimensions we're using the internet more. we're using telecommunications more i think it's going to be different, but i thin

larry summers, the former treasury secretary thinks the fed is moving way too late.peed here, that there could be a major recession. let's hope that he's wrong. >> matt egan, thank you so much. >> thank you. >>> what threat did they pose, ukrainians trying to flee attack come under attack by russian forces. and antiticipates your every need. with intelligence... that feels anything but artificial. the eqs from mercedes-benz. it's the car electric has been waiting for. this is the planning effect. nina's got a lot of ideas for the future... a lot ofdeas. so when she wants a plan based on what matters mo, she turns to fidely. at fidelity, anyone can create a free pl. a plan that can change as your priorities do. and nina's free plan? it leaves her free to focus on what's important right now. that's the planning effect. from fidelity. get up and go with best western rewards! the right place, the right value, right where you're wanting to be. ready to welcome you. let's go. stay safe. now get double best western rewards points on every stay. and with rewards points that

former obama treasury secretary larry summers warns inflation will continue the next year or two. >> liz, if you get up in the morning, you go to work you know good and well these democrat policies are not working for you. when november rolls around, americans will walk into the polls, they will say enough is enough, they will create balance giving republicans both control of the house and the senate. biden will have to do something he hasn't done, he hasn't had his hand called on, sit down with the republicans to negotiate with them. liz, i only know one republican in the house of representatives outside of republican leadership that actually met with president biden. that is not the way it es supposed to work. that is not what he promised. this is the most partisan president we had in a long, long time, maybe ever. elizabeth: congressman darrell issa attended 17 state of the union addresses, thomas. you usually see action after the addresses. not anything on the white house after this. we'll watch democrats say the answer to rising gas even dictators, like putin, the answer is elec