incidentally, i was paul volcker's secretary as a young man when he was president of the new york feder was a great man. he did what he had to do. he tightened money, reagan cut tax rates, and it worked. right now, liz, i don't see the fed with a plan, okay? i have asked this question, i guess like you, what happens when the music stops? what happens when the massive stimulus ends? something's going to happen. and i don't think anybody has a plan. i mean, eventually the fed's going to have to stop buying all the bonds, and eventually -- now, we're talking a couple years down the road -- the zero interest rates are going to go out the window. when that is, i don't know. they say it's not going to be for a couple years. actual real world conditions will dictate. but that is a hard question. actually, it's such a hard question, nobody in washington particularly wants to address it or answer it, liz. liz: yeah. yeah, it's uncomfortable. hey, you're eight minutes away from your show. your guest today, former senior adviser to president -- i'm going to guess this is trump, yep -- kevin hass

paul will need 40 recharge the 1st ever fully electric paul volcker. taxi 40 recharge steps into a 2nd one that is already heavily crowded so what can it offer to stand out from the competitive is what i want to check out today 1st up how does it fare in terms of battery and. we call features 78. 75 you know what they can effectively be used. to. 114. and if you mostly dry in the city you will get even. that is also what i experienced during my drive here. it is. in that segment. that compares favorably with the 262320 kilometers reached by other electric s.u.v.s. or opel. to match that 500 figure you have to move to bigger models like the mercedes q.c. and id for. so what about the out for the car to. one at the front of one of the rear wall so. the car can make the. sounds good on paper even. crazy. speed up 180. it's. the. be able to go faster than 180. that's. speaking of which not so long ago the stereotype of geography teachers cars so if you were going to have a crash there was no better car to be a. safety has been paramount for the swedish com

the 40 recharge of the 1st ever fully electric paul volcker. x c 40 recharge steps into a segment that is already heavily crowded so walking it off to stand out from the compared to what i want to check out today 1st up how does it fare in terms of battery and range. because features 78. 75 you know what they can effectively be used. 114. and if you're mostly dry in the city you will get even. 500. also experienced during my drive here. it is among the top competitors in that segment. that compares favorably with the 262320 kilometers reached by other electric s.u.v.s. or opel. to match that 500 figure you have to move up to bigger models like the mercedes q c. 4. so what about the out for the car to one of the front one of the $200.00 false so. the car can make the best from 0 to 100. 5 seconds sounds good on paper even better. crazy. speedo 180. of course to preserve. it's. the. be able to go foster then 180. that's. speaking of which not so long ago the stereotype of geography teachers cars so if you were going to have a crash there was no b

i wish paul volcker was around right now.ing, taking medicine now or gets worse down the road. neil: you are talking about the former federal reserve chairman paul volcker. liz, a little bit of inflation is always deemed okay, because it gives flexibility to employers raise prices more, have a little bit more cushion. are we in the comfortable inflation camp here, in your eyes? >> right now. the question is, where do we go from here? i think gary is right. this is just a lot of indicators this is just the beginning of it. i think powell's problem, kind of put that under a category is we have so many people unemployed. that is the fed's main mandate, is to move towards full employment. so i don't think he can raise rates here. i do remember back to 2015, 16, when the economy was muddling along and janet yellen began to raise rates. i think it is interesting to see at some point in six months to a year, yes, job additions, job growth becomes pretty good. they take that as an opportunity to start raising rates. i can't imagine a

but the critical takeaway -- in 1983, when paul volcker basically released the shackles from the economygrowth surged to a very fast pace over the next couple of years. we had aggressive tax cuts in defense spending. the economy grew at a very robust above-trend pace can but the rate of inflation did not accelerate meaningfully over that period. that is an important lesson we should keep in mind in the current environment for them yes, stimulus is going to cause some blockages and bottlenecks in the economy that will be reflected in higher prices, but until we see workers' wages and wage pressures accelerate, there is going to be a transitory nature to any flare-up in inflation prices. matt: what you expect to see on the dot plot? markets are pricing a rate hike now, 75% chance at the end of 2022. what is the fed going to show us? carl: i think we will see a handful of hawkish dots higher, but the consensus at the center of the committee is going to continue to hold on lower, longer rate path. that will be the point of friction for the markets and the fed with all of the news and data po

it was by one of my colleagues at bloomberg citing paul volcker in the 1970's and saying there was a a real determination to tame inflation. and then asking questions about the average inflation targeting regime suggests a break with the past, a really different perspective on inflation from here. max: i am not particularly convinced about a new inflation regime. let's not forget my what we are seeing now, it's almost like people are pretending that only now the fed, only now central banks are trying to get inflation higher. that has been something they have been trying for a decade. that is something they have actually been trying since the financial crisis and desperately so. still, they failed. the verbal guidance and pretending that that is sort of the sudden change, that's not going to be enough. some of the inflation we are going to see now in the second quarter, that is mostly covid related, mostly base effect related. very closely related to base effect and energy prices, food prices. there is a risk that there is higher and stickier inflation, particularly in emerging market

1973, and that brought with it the prices paid gauge. 75.9, the highest reading since 1980, when paul volcker was starting to throw the economy into recession to break the back of inflation. so jay powell's quote today is probably told you so. we got some numbers a moment ago of leading economic indicators, up 0.2%. a little less than the 0.3% forecast, but it still suggests the economy is advancing. kailey: and we know that powell said the economy is going to advance further, growth targets revised up, and plate and -- revised up, unemployment going to go lower, yet still no hikes in 2023. do you buy that? michael: two or three years from now, it is really hard to know what is happening in the economy , specifically since this is all pandemic influenced and we have no models for this, so they are just sort of guessing, and the market has been guessing to this point that if you have fast growth, you're going to get inflation. powell was very strongly saying yesterday that we don't think that is true because we had zero rates for seven years after the great financial crisis, and we did not get