on the back of the fed chair's chief, let's get to steve liesman with cleveland fed president loretta mester here in jackson hole with a person we've had on quite a bit. carl just refers to you as mester. loretta mester, cleveland fed president. let me ask you this -- we talked back in the spring or something like that. how much has your view changed in terms of the outlook? as i recall, you had two hikes built in. still two? >> so, the june sep. >> summary of economic projections. >> of course, we've had two of them. >> hold on, president mester. looks like fed chair powell is taking a walk with christine lagarde and new bank president of japan, whose name escapes me. i can't -- i knew it but forgot it. there's jay powell with lagarde. maybe it's an opportunity to talk about what's happening in europe, too, which is -- they're sort of in a no forward guidance. everybody is coming to the end of the rate hikes, loretta. >> we're mirroring -- we've talked about this before, getting close to where we need to be, but as chair powell said in his remarks this morning, we have to be very diligent a

cnbc will have full coverage of jackson hole and two first on cnbc interviews with loretta mester andgoolsbee. >>> we have the latest on the corporate stories with contessa brewer. >> we see jetblue which could raise fares by 40% according to the company's calculations that were made public in court filings this week. the companies are fighting lawsuits brought by consumers and another brought by the justice department. jetblue says fare hikes were not redacted in the filings and now taken out of context. you see shares off .30%. >>> ev factory in ohio run by gm says it will raise worker wages by 25% after lawmakers called out $16 an hour is too little. they still have to ratify the wage increase for august 28th. >>> and shares of viasat sinking after the company confirmed the communication satellite is malfunctioning in orbit. airbus along with viasa. it is -- viasat is looking to see if the satellite can be recovered. >> contessa brewer, thank you. have a great weekend. >> thank you. >>> august is black business month. time to celebrate the accomplishments of black entrepreneurs and

we will hear from patrick harker and loretta mester and austan goolsbee jay powell will speak on fridayrest rates are expected to top the agenda as well as inflation. i'm happy to say david henry is joining me good morning, david. you know, if you fast forward, not fast forward or rewind back to inflation levels at 8% or 9%, it was straight forward for the fed chair to say we are resolute to fighting inflation and bring it back to target. now with inflation at half of the levels and heading in the right direction, the message is more fine tuned. what are you looking out for here >> thank you i think you are absolutely right. a lot of ways, his speech wrote itself last year the fed had to be open to bring down inflation and clearly the world has changed. there is really good progress and bringing inflation down. i expect to see him keep the language as open as possible i think he'll probably want to try to keep the debate away from whether this september meeting is going to be a pause or whether it is another hike and really try to put the discussion a lot further down the road. i think

i saw in the promo loretta mester talk about that. they think if there is less risk if they over tighten they could pull back fast. i think ira is right. there is a risk they over tighten. if you go one more time, then it is about how long they stay there and that is little bit less difficult than when they have to keep hiking like in europe. alix: the over tightening versus we keep having to tighten and then have to wait and see. you guys had a cold model where you look at all of the speeches and you dissect in your model if it's skewed hawkish or dovish. what did your model say on friday? ira: i think the ear test suggested he was a bit more hawkish than at the july press conference. our natural language processing model showed he was more dovish. our chief economist for the u.s. agrees with that view. it was close enough to neutral and basically the same as what he said in july. it was all of the other talk around jackson hole after jay powell spoke and a lot of that was almost a full court press with the idea we are not cutting th

loretta mester, she start speaking, the cleveland fed president, we came back a little bit.heard from harker and some, and for some reason this market, it's moving higher anyway. and it's really amazing because we know that the fed is still leaning to the hawkish side. so what dow to -- do you make of the way the market's acting, stock market and the bond market right now in. >> the well, for starters, you're absolutely right. lean to to the hawkish side. why? is because cop assumption and labor remain stronger than most people thought the they would bd inflation is showing itself stubborn. no where close to the 2% the fed want, so they have to lean to the hawkish side. and i think the markets is saying, well, a maybe i'll get better earnings, but that's maybe going to hurt the multiple i put on those earning, and that's why you get this back and forth. our guess is that earnings will prevail and that there'll be mediocre -- i don't think we'll get 12% earnings growth next year as the con consensus is forecasting in a slowing economy. charles: were you happy or at least it f

loretta mester, jimmy bullard, neel kashkari have been saying it for months.ant to take it. i think they are concerned about inflation turning up again. we saw a tiny bit of that in the ppi, next week we could get the pce that will capture more the energy move the cpi did not capture this month. to your point i think we're going to 6%. charles: we sold off into the close yesterday after the minutes. we're selling off a little bit here today. overall what does it mean for the broad market? >> actually i think it is good. we've been talking about, i thought it was way too stretched to the upside, that it needed to pull back. so i think that is what it is doing. i don't expect it to crash. i suspect if we hit nasdaq to maybe test nine or 10%, it is already down 6% from the highs three weeks ago. the s&p down 4.4%. if that tests like 7 or 8%. as you know those are well within the normal trading range, right? a 9.9% move from the high is still considered normal t shakes the branch as little bit. the weak ones will fall out. that will be interesting because it will

cleveland fed president loretta mester with her take on the speech from jackson hole.stay with us. ♪ ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley. here's why you should switch fro to duckduckgo on all your device duckduckgo comes with a built in engine like google, but it's pri and doesn't spy on your searches and duckduckgo lets you browse like chrome, but it blocks cooki and creepy ads that follow you a from google and other companies. and there's no catch. it's free. we make money from ads, but they don't follow you around showing the millions of people taking back their privacy by downloading duckduckgo on all your devices today. >>> fed chair powell warning there could be further tightening ah

loretta mester leaning toward over tightening. rafael bostick suggested the opposite.ea of the preference, which way they would lean? michael: the majority say they would rather over tightening that under tighten. they don't want to send the economy into a recession. what if we start to see a real deterioration in the economy, they can cut rates. i don't want to see inflation go back up again so they are going to lean in the direction of higher rates. we are within 25 basis points probably of any kind of peak. does it really matter that much? not a huge amount. it is more a signal than anything else. kailey: does the data matter? jobless claims, spending. michael: pc will matter because that is what the fed follows for inflation. powell has been looking at those super core, housing. and rafael bostick was making the point that if you do that, you take out housing, you have your court running about 2.9%. you're getting into the area of what you want to say. tom: i want to go to the unspoken, the theme that the savings, the fiscal stimulus of the pandemic has worn out. i