joining us now is nathan sheets, pgim fixed income chief economist and head of global macro economic research. what does the fed do about that, nathan? nathan: my guess is that jay powell didn't get a lot of sleep last night. [laughter] this press conference, and he's got some -- this press conference is a big deal, and he's got some communication challenges he has to address. on one hand, rising rates are an indication of healing in the economy and consistent with their dual mandate. if it happens to rapidly, that can jeopardize those goals, so they do care about pace as well as double of treasury yields. how are they going to communicate on the one hand, we are going to have a turbocharged economy through much of 2021? but the fed is not just looking to see whether we recover from the pandemic. the fed wants to see a sustainable increase in inflation over the medium term. i think powell is going to say effectively, we need to see where the economy lands in 2022 for we are in a position to judge our progress toward our 2% average inflation target. guy: you take me right where i want

nathan sheets, pgim fixed income chief economist. let's start here.versation we touched on about 10 minutes ago. the previous administration, when they talk about taxes, they were not talking about the wealthy, although some people in d.c. wish they had have done. they were talking about supply-side issues. investment in america. you think we need to have that conversation again? nathan: i think what we need to do is be aware of the supply-side. i think the case to consider tax increases is compelling. there is also a case for various regulatory interventions. as we do that we also need to think about how business is going to respond. the implications of that for the business environment. i very much hear a demand-side perspective in the economy articulated frequently and demand is critical. in order for demand to be met, we also need the supply-side to be strong. balancing those considerations is critical. i think it would be helpful in our debates to have more of that kind of supply-side perspective. at the end of the day, corporations are not the e