nela: no. i don't.ughter] i think it was way too easy for the fed, and their job is to make it look easy. it is not what markets do the day after the press conference, it is what inflation does months from now. the numbers michael mckee just read are concerning. productivity went down, wages went up. that is not the place the fed wants to be. they want if wages are going up it means the economy is getting more productive, not because we have a supertight supply shortage. that is the concern. wages may not boost inflation, but wage growth may stick around longer than anyone is expecting. lisa: another thing people picked up on from jay powell yesterday is he still sees the target rate around 2% to 3% in terms of how far they will raise rates. do you think that is something we can take at face value what you think there is more willingness to go beyond that into a tightening that is what people are pricing in earlier this week but not now? nela: i think for now in terms of the fundamentals which are stron

i want to bring in chief economist, chief economist from adp nela richardson. a few months ago we were talking, i was worried about the direction of small businesses using your data. now it is pretty clear. they cannot compete with the large businesses in this environment. high raw material costs. they can't afford workers. how can you be losing workers in this environment? i am worried about where small businesses are heading. >> hi, charles. it is good to be with you, and i remember that conversation about four months ago because that is about when we were seeing large firms outpace small firms in terms of job gains and we continue to see that to this day. as you point out in april small firms saw a decline in jobs. not because they don't want to hire. i think that is an important point to underscore. we recently surveyed a few weeks ago small firm clients at adp. we found that hiring challenge was the top challenge, a big jump, in the share of small companies saying that they're out there trying to hire and can't find qualified workers. do they want workers?

nela richardson was fired up about the american economy.t the realities on the ground for people who are struggling with inflation. tom: i am looking over here to see if the goats are gone. the swiss army is helping us out. our last section in davos. we cannot afford anything in davos to buy or rent. lisa: or eat. tom: jonathan miller joins us to tell us when housing will crack in america. you would suggest we are starting to see an ebb. is that because people cannot afford the rent? they cannot afford the mortgages? jonathan: i think we are approaching a peak. i think rising mortgage rates are one of the best things that is happening to housing. in many ways low mortgage rates are making housing less affordable because it has obliterated supply, whether in the rental market or the purchase market. i cover 40 different housing markets across the u.s. and the market share bidding wars right now is anywhere from 25 to 75% of all closed sales activity. that is not sustainable. we need more inventory. tom: tell us about the mortgage rate right

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. >> nela, you mentioned wages, so what do you think of that number >> i think is tthis is a very sdr force participation of course is concerning, but the pact fact that jobs were able to be added at a steady clip, especially when matched up with the eye-opening productivity declines that we saw this week nal all in all i think this is a fre great report >> austan, if you're depressed about the kcubs or white sox, just remember, could you be from cincinnati >> one of them had to win. >> it's a good day for you what was the highlight of the report >> the highlight of the report, unless i heard it wrong out here this chicago, liesman began by saying i want to echo what santelli said. what's happening in maybe joe will buy me the dinner he owes me >> we're not there yet >> nothing happened. nothing happened in this report, i don't think, that is going to change the underlying fact so, in a way, it's the goldilocks report, but it's goldilocks in an awful situation. it's not going, the fed is still going to tighten we're still up against this, can we manage a soft landing, how do we balan