argument to start with a half point cut although a quarter point is more likely i'm joined by loretta mestercnbc contributor welcome to you >> thank you very much >> now you can talk freely, you can tell us what you really think, that they should go 75 or two full points. what really do you sort of make of the situation right now economically >> i mean, we know that inflation has come down quite a bit. the most recent data, yeah, was not according to expectations. but it didn't take away from the fact that inflation has moved down over time, and the committee has become more confident it's on that path back to 2%. not there yet, more to do, but on the path. and the labor market has moderated. we've seen a slowing in terms of employment growth, but it isn't weak the labor market is still solid, it's just moving down. so the real question is what do you do with policy at this point? you know, they've said, and i've never seen chair powell be as explicit as he was at jackson hole, we're going to enter this new phase of bringing the funds rate down over time. >> you thought that speech was signi

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loretta mester yesterday telling us it's not out of the question for the fed next week with a stronge to be made and market probabilities for a half point cut are also on the rise we'll have the latest as we set up what could be a big market moving event next week and waymo and uber are expanding their robo taxi partnership. we have the impact to uber and alphabet >>> and when bank of america says when it comes to building data centers, there's one under the radar name best in class i didn't get it. you're looking at the name, up 25% year-to-date the analyst joins us ahead but first, boeing, the shares are under pressure phil, we're watching that. what's happening >> reporter: a lot of news alerts coming from various areas within the last half hour. let's start off with the white house. they issued a statement regarding the strike here at boeing, saying -- >> reporter: as you take a look at shares of boeing, the reason you see the shares ticking lower in the middle of the day, two credit agencies came out and put basically warnings on boeing's credit rating. moody's and fitch both is

loretta mester has said as much as bill dudley it seemed that the market was willing to trade higher on that, in part because it seemed to lay the groundwork for half a point not being in response, in other words, we could have it all. does that make any sense >> yeah, it does, but i know loretto very well, um, notice that phrase "could" a case could be made. she was quite hawkish during those early phases of fed increases, so that's certainly that makes news, but i think there's a lot of could be mading i think austan goolsbee is definitely making the case of let's be more aggressive there would be a side on that, but i don't think the ppi and cpi were just that good enough again, it would have been to a really horrible report don't forget, the real indicators are holding in at a moderate economic. i say, let's get down to where we should be as fast as possible, but the real -- but i what i think the market is saying, you know what this it may be a few months longer before we get to where we have to be, but by the middle of next year, you know, we're 3.5% fed funds rate, i'm good wi

loretta mester was not all that sold on it. bill dudley, former new york fed president, making that case. we will listen to the guidance for the more important answer, how low the fed thinks it will ultimately go, and how fast it gets there, because 25 or 50 today, guys, is going to pale relative do they do 100 or 200 over the next year. kelly, tileer? >> steve, the data has been relatively strong the last couple of days. >> the consumer is not giving it up, and we might get a renaissance in the housing industry if we can get those rates down. we had a bounceback from the hurricane related declines in housing starts in august. that seemed -- or in july. that seems to have come back strongly. and our tracker, i don't love the atlanta fed gdp now, but it's 3% or so. our cnbc rapid update is 2.8. goldman raised today because of the housing starts number. that's a reason why i have focused on 25, because i don't think there's an emergency or uje urgency for the fed to go 50. it pay do a down payment, that's the argument for the oth