chair powell: yes. when you see something happening all over the world, you look for common factors and those would be just the reopening of the economy, which imposes covid -- covid continues to have supply side constraints so whatever demand runs up against hard constraints which is difficult for economies. you are seeing inflation everywhere. many what you're seeing here you're seeing elsewhere but countries are feeling to different degrees. mr. san nicolas: let's not create some kind of inflationary -- making it seem like it's a fiscal policy issue. this is a global inflationary environment. let's continue to take care of the american people while we allow the experts that are testifying before us today to continue guiding us as we try to tackle inflation. secretary yellen, i want to first begin by recognizing some of your staff. j.j. and arian, special assistants that have been working closely with our office. they help us do our job engaging treasury and allowing you to do your job to answer quest

powell: yes. sen. warren: the press also reported this is your agreement to defer to the vice chair supervision. i want to ask you a specific example of how that deference would work in practice. if you are confirmed and if the new vice chair for supervision suggests a regulatory actions you disagree with, will you bring that matter for the full federal reserve board for consideration? chrm. powell: let me just say what the law does is it gives the vice chair for supervision the authority to set the regulatory and supervisory agenda. i would expect a perfectly normal and good constructive working relationship with the new vice chair of supervision. i would not see myself as stopping those kinds of proposals from reaching the board since the law seems to indicate that's the job. sen. warren: i'm just trying to be clear on your understanding of it. so you would bring it before the full board even if you personally disagreed? chrm. powell: that would be my general intent yes. i can't cover every possible

yesterday, it was really dominated by powell.here has been an overriding there and have that a new variant and allow central banks not to move as quickly. how do you way up the two of this potential threat versus the hawkish pivot from the fed? georgina: quite a combination. it is the timing of all this happening in such a short time. it has only been a few days of trying to understand this new variant, and to suddenly have a pivot from the fed at the same time. i think generally we would say not only from a covid standpoint that the central bank has to be a little careful and go a little bit slowly, but there are also other factors in terms of debt situations, how hostage we are to keeping the policy environment. it puts a cap on how quickly central banks can respond. messaging is in the right direction. the next stage of the story is how quickly, how much. we believe there is a cap come ultimately. it cannot go too much higher. i think flat curves paint a picture that there is still a limit as to how far this can be priced into

jay powell turns hawkish. the fed chair d

the powell pivot. it is really more of the an evolution, inflation out look has really changed quite dramatically over the last several weeks. you know back in the spring we saw a big spike in inflation. it was very narrow. it was just confined to a few categories, space effects, restart effects. what we're seeing now price increases are broadening outs with categories. that is particularly worrisome for the fed. as you look out to next year you will see some supply chain repair and some of these durable goods prices may start to wane and come down a bit. but services account for much bigger portion of consumer spending. we're seeing rents rising a lot more. by construction, cpi data, that has rents, it is really a lagging indicator. we're already seeing a lot of industry evidence that rents are going a lot more. that is going to be reflected in the cpi. if you look at owners equivalent rent which is 24% of the cpi, 30% of the core cpi. that was up 5.6% annual rate in last three months. the way it is c

chair powell: yes. rep.enry: so in light of that, we had in february a democrat only proposal that made it into law to spend $2 trillion, and then we have just last week another bill did adminstration sports and enhances the deficit, raises the deficit by $400 billion. and so we have those two large fiscal pieces here. when chair waters asks secretary yellen, the chairman of the federal reserve, whether or not spending more money from the physical health will improve inflation, i think what she asked, want to translate for the public. when a democrat says improve inflation, it means enhance or raise inflation, just to be clear. so my friends on the left, when they say improve inflation, they want more of it. secretary yellen, to this point, these things are imprecise. policy making is imprecise. but back in february, there was an output gap this administration i knowledge in economic projections, and came to congress for a fiscal stimulus in the name of covid. is it fair to say that maybe you overshot in feb

big names, all down 11% to 30% since powell turned hawkish. cash or into apple. apple is up 8% since powell pivoted and it has become something of a safe haven for tech investors the fed's aggressive about face has called into question sky-high tech valuations on big names. jpmorgan software analyst sterling was on yesterday reducing ratings on adobe and a dozen other software stocks saying cash flow growth rates are the key to understanding the market he wrote, quote, this has been consistent since 2000 and brings into focus whether growth rates can sustain or moderate at a tolerable level to keep valuations propped up. this may be the first of many reevasions bank of america's internet analyst noted after a strong 2020 his internet stock was down 13% in 2021. he said, our b of a strategy team has a somewhat bearish view on the s&p returns in 2022 given high valuations and potential impact of higher interest rates. we expect a chop py 2022. his main hope for a stronger 2022, valuations have already begun to adjust. we will see if we keep adju

the market is not worried about long-term inflation and the old powell is essentially correct.crush inflation thalts another argument being made and the supply guys keep saying intense global demand for u.s. bonds and get all the interest from the european and japanese markets that stubbornly low yield is the main reason to not bump tech stocks >> let's get down to david faber in houston, texas. hi, again, david >> yeah, we did speak to mr. woods, of course exxon shares are up and some of that will rebund because of the stability being seen in the oil markets after volatility and they did formalize targets that were shared not long agewhen the company last reported earnings. namely, spending around 20 to $25 billion a year through 2027 on a capitol investments and perhaps more importantly spending, at least for many out there focussed on the company's ability to transition and change and contribute the fight against climate change spending on what it calls green houses gas emissions reduction plans. aren't they wind mills or solar? that's not seen as an area of expertise by dar

chair sherrod: chairman powell, do you agree with that? chrm. powell: yes, i do. chair sherrod: i think it is important to look at historical perspective as both of you have explained to me. in the late 1990's and early 2000, over-the-counter derivatives and subprime mortgages were billed as financial innovations. financial regulators pushed to weaken safeguards, saying that a cloud of legal uncertainty hung over the derivatives markets and regulations, and the words could discourage innovation and growth and drive transactions offshore. later, the baking lobby argue that regulating subprime mortgages would decrease borrower to an reduce access to capital. an inquiry commission cited derivatives and subprime mortgages as key factors in the crisis. it looks again, again like the financial industry uses the same arguments for stable coins and decentralized finance platforms. all of us on this committee and both parties should be concerned about that and understand the historical parallels and listen to this very bipartisan panel. sen. toomey: since the top of the de

powell mea culpa. in the books. tapering happens a few months sooner after that. >> we'll have to wait and see, aren't we? we are sees signs, believe it or not gluts of inventory in certain pockets of the manufacturing sector. these are surprising data. saw it come out of the chicago fed yesterday, chicago fed manufacturing survey. we know also on the other hand inflation in housing and in rent, 40% of your typical u.s. household's budget is fried and continues to go up. a lot of moving pieces here. you could see industrial cooling going into 2022 yet housing stay hot, food prices stay too high, energy prices stay too high which would mean that the powell is going to deliver on what he has promised. owe will hurry up with the taper to start raising interest rates. neil: one firm sees three rate hikes next year. four year after that. i don't see how they come to that. i want to get the audience to understand fed speak, what these words mean. there was scuttlebutt once powell was renominated he would turn more hawkish

if he is listening, if jay powell 3.0 is actually jay powell 1.0, remember, december, 2018 i was on thisnt dry. let's see how hawkish he is. i think he is pressured to bep more hawkish. charles: phil, you applauded most moves jay powell made, you two or three months ago started to get a little agitated. you wanted to see the fed get more aggressive, take action. what we're seeing seeing with tt plot, is that more action. >> it is on its way. charles: you want to see more dots? >> i don't want to see commitment to a dot-plot. i think we're at peak inflation. the reason it rolls over, supply chain getting righted. we have a postrecovery f they're overly hawkish that will create a problem we could recess. what i would like to see, based on data coming in carefully unwind the balance sheet. go careful on bond-buying program and make slow, methodical decisions on a rate hike. charles: we talk about sticky, but even with the flexible stuff, we're not worried about that but the sticky stuff is still elevated. >> it really is. charles: so that is not coming down. >> talking about rental inflatio

is that the kind of thing we will hear jerome powell talk about?atie: markets, analysts, economists would love if he talks about that today. consensus will tell you that we will probably see lift off before they start quantitative tightening and letting the balance sheet runoff. expect them to get maybe several questions on that, when we might see quantitative tightening actually start. but we have a lot to work through before then. the question on the front end on the center is whether they accelerate the pace of the taper . they are still buying bonds at this point. whether that increases or brings forward rate hikes and if we could see quantitative tightening, those are the questions markets have coming into the meeting. matt: we are also looking for changes in the dot plot on the terminal. do ts is the way to access that function. what is and how important is the terminal rate, katie? i know that right now economists are looking for two hikes. katie: yeah and i mean the dot plot is where you could see potential for a hawkish surprise. the balan

powell is not like that. he's a bigger thinker. minorities he wants them to get jobs and he has done that. he's succeeded so now it's time to tighten but not too much. omicron could still do real damage to the economy. many people ask me why i praise jay powell so much as if it's some sort of sin some say it's because i want a higher stock market and he's given us that one. god forbid anyone makes money on the stocks others say i praise powell because i know him personally which is untrue. we've never socialized i like homosim because he's measured he's not an idealog. i was a government or political science major in college we talked about how our country was gifted that's been one of the great sources of strength of our nation even richard nixon was not an idealog. he became first president to visit the people republic of china. that was a very different time when we didn't have coherent political parties. now everything is ideological. people come on and talk extremes powell is not taking the bait. he's not doing that. he doesn'

powell said we're finally making headway. while he's a pretty subdued guy, he was happy to have rates low enough to accomplish that mission in his life. in my adult life, i don't think i've seen a fed chief who prioritizes main street over wall street plus powell is not a bone head. he doesn't say anything about the pandemic except to point ou the more people vaccinated, better the economy will be he doesn't make stupid prediction about how rich he'll be no vows to hit us with lock step like he did three years ago to say we got a rate hike he said the power of his own words even as the questioners want him to plunder or test his conviction he knows that commodity inflation has been tamped down by recent pivot. lots have come down substantially from the highest the bank stocks turned down because some traders believer the fed would clear it up. i guess they thought powell was bozo the clown there were others kept selling g growth stocks. they expect total carnage. it's like they never pay attention to a single word this man ha

the market is applauding the powell pivot they wanted to move in this direction. the s&p 50046 or 48, that's where it was when powell began to pivot on november 30th. we have not changed in the overall indices. however the composition of the market definitely changed. today's sectors again reflecting a much more defensive tone in the market we have seen recently consumer staple stocks stronger, health care stronger, utilities, for example, have been hitting new highs recently those are definitely defensive sectors. at the same time we have seen a little bit of a rejiggering in tech stocks, which are very sensitive to potential rate hikes, even modest rate hikes, down the road. for example, software stocks have notably been on the downside in the last two or three weeks. we have seen other big more speculative areas of technology, cathie wood's arc innovation punt down since powell began to pivot. the market has adjusted internally more speculative tech spots are generally lower on rate concerns more defense stocks are higher over all, the s&p is the same. the bott

." >> thank you good afternoon, chair powell thank you for taking our questions. i wanted to follow up on some of your earlier comments about labor force participation. i wonder what you think needs to change in the economy to kind of get a meaningful recovery in labor force participation, and also whether running the economy hot like in the last expansion is one way of doing that >> well, the labor market is hotter than it ever ran in the last expansion, if you think about it the ratio of job openings, for example, to vacancies is at all-time highs quits, the wages, all those things are even hotter but what would it take for labor force participation to move up more you know, why is it low is the question there are a bunch of answers and all of them probably have some, you know, some validity. part of it will be that for certain people they don't want to go back into the labor force because either they're medically vulnerable or they're not comfortable going back while covid is still -- that's one thing. the lack of availability of childcare is part of it, not ju

the powell/yellen combo has proven reasonably popular.be honest, there has been so much on lawmakers' plates, figuring out exact what their stance is with powell on the monetary side and the debate over this legislation, that yellen, who was respected coming in, maybe has almost flown under the radar, at least to the extent that she hasn't been the main point of criticism, at least. jonathan: good to catch up. jack fitzpatrick, thank you, sir. of course, that question is being asked, and it is a port to address it. lisa: and frankly, she came under a lot of heat from congress members yesterday, senators basically saying come are you telling us the truth? there was a lot of disagreement but what the truth was, as you see the dueling messaging and play. jonathan: a search for the truth . how philosophical. let's talk about the search for opinion right now. that is easy to find on the push back the transitory debate in the capitulation. can we call it that yet? tom: no, we cannot call it that yet. david rosenberg was on fire on "bloomberg su

good morning, your thoughts on whatjerome powell said? i what jerome powell said?hink the removal of the word transitory from his lexicon was probably correct. such is the elevated level of commodity prices around the world that inflation will be long lasting and for a lot of people, getting into a definition argument about whether it was time bound or whether it would have as a second order effect is probably not the place jerome powell wanted to be in but in terms of financial markets, they are pricing in this morning, the earlier end asjerome powell alluded to, the federal reserve asset programme but actually probably most relevant is what happens after that in terms of the first rate increase which financial markets are thinking may be one, two macro increases in the second half of the year but will not be drawn forward now? it makes the meeting in the middle of december white cake in terms of communications. ' ., communications. the 15th of december— communications. the 15th of december but _ communications. the 15th of december but what - communications. the

powell and talked about rates.s, if rates are moving higher even at a glacial pace, you want to be buying the economic type tnkks, tse. >>has for watching we will see you tomorrow at 5:00 >>> i'm here to tlefl playing field for audill invetstinvesto. tlauls there's always a bull market somewhere. >> hey, i'm cramer welcome to "mad money. at least that's over with. i'm talking about fact that jay powell spoke today

i want to start with fed chair powell. days of testimony to congress made it clear he is definitely ready to discuss speeding up the fed taper. are you ready to discuss it? is it something you will be in favor of? ms. messer: going into the september meeting, i thought there was a strong case for tapering at a faster pace than what we had actually announced, and since i saw the data come in, i am even more supportive of the case. all with a focus of achieving our goal of more employment. i'm certainly open to discussing it. kathleen: what do you need to see then? are you like, i need to see little confirmations to make sure you're making the right decision? is there something doubtful about making the case and saying yes, go ahead, to do that taper? ms. mr. -- ms. mester: i think the new issue is the risk of omicron, and, frankly, we just don't have enough information yet. we need the health care scientists to tell us more about if this is a variant that will be like delta, or if vaccinations actually work against it, or i

names like comcast or oracle and what is the gameplan away from jay powell. monday is a great example of what i'm talking about one of my favorite drug companies, regeneron will have an investor event where they'll s showcase a growing portfolio, including rna base therapies an gene editing i think the stock is worth owning, but it's a clarion call of what they have going. regeneron is a biotech name, but it's profitable. that makes this tangible, not co conceptual, because it trades in ear earnings, not sales. so if regeneron tells a great story, the stock will be rewarded if it were losing money, i would say pass i wouldn't even mention it in the game plan, but it's not. it's making money. it's making money hand over fist i said over and over again, we're living through the roaring '20s this is a booming economy and the vast majority of companies are doing well, except the ones that lack the ability to raise prices so one of these challenge companies is a company you know called campbell's soup, and it struggled with end sales growth, but they have an inves

tom: what will he from chairman powell today? the house is different from the senate. it is a more fractious. lisa: we will hear more posturing in terms of issues that people want to push forward. jon ferro to said he's going to be looking forward to december 15 after that decision by the federal reserve. this is new. he was going to take the year off after november. this is different. we have action. jonathan: i was going to be here for the 15th any 16 -- 15 to end the 16th, and then away -- 15th and the 16th, and then away. i thought this week, the central bank would become omicron dependent, and the surprise from yesterday was that we didn't see much of that from the chairman. tom: if you are just joining us on radio, on television, korea speaks, france speaks, and vendor lien -- and von der leyen in brussels spoke. that was something. we need a mandate? jonathan: the eu commission president vocally saying that she think we should consider mandatory vaccination across europe. that is a big shift. we have seen it in the likes of austria, germany considering it, now t

what does jerome powell do if we see a cooling inflation?eal answer, it depends on how much it is cooling. you will start to see it in q1 and more in q2, but just coming down is in going to be enough. when i took the change in paul's rhetoric to mean is that he still cares a lot about the trajectory of inflation, but he also cares about the level now and started talking about price stability being the past two full employment. he said they would hike even before they got to full employment if inflation was too high, so now we are looking at not just the need for inflation to come down, but also with that level is going to look like. lisa: i would love your sense of what happened yesterday from the federal reserve that may be unwarranted if you see a cooling off in inflation. we saw stocks rally, bonds rally, everything rally, and people said why. one theory is because jerome powell basically said they would not hold any purchases right away because they did not want to disrupt markets. it would be too difficult to observe area is this tacit

but powell is reassuring and frank and trustworthy.se don't seem to be bothering markets much at all. kailey: the markets seem to be relieved may be that the risk of a policy mistake looks less so after that press conference. do you think we are in the clear on that front? dr. blinder: well, i heard your last guest. in the clear is way 2 optimistic. -- way too optimistic. i don't see any potholes they are about to fall into but there are too many uncertainties to say we are in the clear, omicron, supply bottlenecks -- looking for the right adjective -- rancorous fiscal policy debates in washington. a lot of things happening that could come tumbling down on the fed's had, so in the clear, no, but so far so good. taylor: there are comments that we are not in trouble yet with the lack of a strict definition of employment. a lot of the commentary i read today said that inflation, checked that off, full employment, on our way, but you are right, we have not really defined it. are we at risk of having to tackle inflation without fully unders

powell said, this is a hawkish pivot.ome people are looking at 2024 and going, to rate hikes only. i disagree with that conclusion. what they will do in 2024 is expanding on data a couple of years from now. there's still time for the data to play out. that's why the market is not factoring in three rate hikes in 2024. not too many people were expecting three rate hikes and 2020 -- in 2022. the fed told us last night that we will get three hikes last year. that's a pretty accelerated timetable. the fed is saying, we are in the camp of urgency here. we are not in the camp of complacency. we are in the camp of extreme urgency on rates to quell inflation. they are behind on the inflation juggernaut and they want to get ahead of inflation. that's the narrative here. manus: ok. think very much. it's amazing how everybody chips in. i live -- love diane swanson. thank you very much. a bit of breaking news coming in across the bluebird terminal. novartis with a buyback on the way. driving the buyback is a belief in the forward gui

tom: jerome powell yesterday at the press conference.orry, lisa, the high point of the press conference yesterday was everybody has a last name except mike. lisa: there is that, right? you finally got something before the end, but he is only called mike from bloomberg. tom: you should have seen it, they are in the press conference, they are snoozing off asleep. mckee, mike mckee from bloomberg, he gets just mike. caroline: does that not sure intimacy? may be how close they really are. tom: i'll say. michelle smith. holding court at the fed. a very different press conference from what we will see from the ecb today. the fed yesterday, bank of england coming up at 7:00, and then onto the ecb. i can make it as clear as i can, there is not three central banks so tightly of interest. stay with us on radio and television through the morning. the politics of all this,? fitzpatrick joins us -- jack fitzpatrick joins us. i want to play off outline. the idea here -- off atlanta. the idea here is that the atlanta now gdp statistic is that 8% econom

problem is the powell problem. >>> let's get more about this powell problem and the impact of the markets, and bridge in our next guest, adam parker of trivariate good to have you with us. >> good to see you. >> you were the chief u.s. securities analyst, and congrats on your new gig. what's your take in. >> it's about the path foe interest rates and the fed it's about the virus you know, i remain pretty optimistic about u.s. equities, because you think corporate earnings will be higher next year, and i think ultimately that's what hears. you were talking about some of the tech companies as a small business owner, i say i pay microsoft azure, no matter what happens i pay salesforce no matters what happens, i pay unitedhealth no matter what happens. so there's companies that won't be -- businesses can be resilient with pricing power >> what fascinated me is the fed wouldn't be in this market three years at this point. why do you think 2024, 2025 could be the first rate hike >> what i know for sure is nobody knows i worked for years where everyone tried to call the fed -- what you learned i

powell, can be more dovish. the market will like that. it pushes back the dot plot, but be that as it may, we know that the fed has to raise rates, and it's going to raise rates. the broader economy continues to improve and we had a little bit of a hiccup here on near-term data, but be that as it may, earnings are improving and the economy is am proving longer term and the fed has to rate rates from these crisis levels and oh, by the way, history shows that's a good thing for the stock market and in fact, on the technology side. we said it last time, i think when we were on air. five out of the last periods when interest rates went up, technology outperformed so we think that the market is in good shape and we think the market can see a bit of a surprise from the fed today and this's a good chance that the fed is more dovish than you think. >> i have a couple of things i need to come at you with based on that. it doesn't surprise me that you would think that or that you would say that given your target's 5300 on the s&p for next year. you

powell?timately sad was when the retail investor had huge confidence, it was interesting to hear robert frank say earlier on in the show today that when it came to the millionaire survey, it was bullish on tax. so despite the rate hikes coming, which you would have expected on the optimism being around the tech oil state, i think things are going to see confidence in retail investors in 2022. i think they may think there is some value to be found right now. >> how many names are you bringing i know you like amazon as well, paypal, i saw cramer tweeting about paypal earlier take your pick where you want to go what do you like paypal is up almost $5 today >> yeah. paypal is one that's interesting to me. this is one particularly as we move into 2022, some of the tech stocks are going to see folks get more discerning. paypal is one of the "star wars". it has a healthy cash balance. it is fighting a lot of competitive fire, whether it's coming from buy now/pay later or other forms of peer-to-peer

maria: powell said time to retire the term transitory.ll likely hear a similar commentary joining me right now cross chief market strategist victoria fernandez, nancy tengler k.t. mcfar landed great to see you we want to talk about inflation store, and what you heard yesterday, from the chairman of the federal reserve. your thoughts? >> yes, you know when we listened to what powell said yesterday we spoke after november meeting taking about yes 15 billion tapering in place wouldn't be surprised to hear them talk about starting to speed that up maybe december meeting maybe in january. so there was talk about this prior, to what powell said yesterday but i think the fact that you combine that with omicron variant concerns does that mean not getting people in labor force does that mean supply chains continue to have issues so we have that push on inflation where we thought maybe some would come back down, combine all that together, and you've got a curve that is flattening remember that short end of the curve is more about fed policy, the lo

lake mead and lake powell are the poster children for western drought. a pale bathtub ring incircles both lakes. you can see what the level was historically by that ring and what it is today. it's significantly lower. it goes from about 1290, 1299 at full capacity, and it's about 1,067 or so feet above sea level today. at lake powell, only two of its boat ramps can still safely unload motorized boats. and if the rockies see another year or two of record low snow melt, where the headwaters of the colorado river are located, arizona, california, and nevada will be facing tougher drought restrictions, possibly beginning in 2023. and then there's hydropower. a source of carbon-free energy that is vital to grid reliability and resiliency in the west. reclamation predicts there is a chance next year that water levels in lake powell might dip low enough that power generation at glen canyon dam could be affected. and in some cases, affected significantly. many other watersheds across the west are facing similar water scarcity and susceptibility -- sustainability

jay powell underscoring the strength in the u.s. economy.andoff from wall street was reflected in asians shares, particularly the nikkei up or than 2%. here we remain up across the board. the benchmark up more than 1.4%. the dax gaining 250 points. the cac quarante, 1.4% gains. the ftse a little less, currently up 1%. steepness of the yield curve is worth focusing on the twos and the fives. let's switch to the sectors, you saw the nasdaq rally into the end of the session yesterday. technology is leading the gains, getting 3%. top of the list by far. bottom of the list is utilities, food and beverage. the risks around omicron and whether countries are complacent around the variant. individual stocks, airbus has secured a deal worth $4.6 billion with qantas. a boost, up 2.8% as they rushed to the end of the year to catch up with boeing. boohoo, a very different picture for this company, the online fashion retailer, down almost 11%, reducing guidance for the full year, saying returns have been higher than expected. margins will be squeezed, the

that idea really endorsed by chair powell this week.puts these earlier rate hike scenarios on the table. it will depend on the data. the risk around inflation mean the risks will choose the hockey side. tom: we are really focused on oil today. a small bacon on oil could go -- a small bank announced oil could go over $100. how does this impact your fed call? andrew: they have been great on the oil call. of course, we had a few people noting chair powell more hawkish at the moment when oil hits its peak and comes off. this is about more than oil. headline inflation matters. matter. we have seen shelter prices rising. wages are increasing. we are seeing in the data that has been passed through. the inflationary pressures which maybe isn't specific to energy, it just looks a lot broader right now. jonathan: we could run another banner on tv that says chair powell has no idea what is going on. that is what he told us this week. i believe his baseline has changed. i believe he buried it. said ok, baseline is still this but ultimately we don't

at cnbc >>> jay powell and the feds speeding up the end of their e easy rate money. stock investors not concerned, the nasdaq surging more than 300 points and futures are higher. >>> president biden not likely getting his nearly $2 trillion spending plan for christmas. as one key democrat drops the hammer. >>> apple becoming the latest major company to retool its return to work plans >>> and it is the end of the road for urban meyer in jacksonville, even before one year at the helm it's thursday, december 16th, and this is "worldwide exchange." >>> good morning, good afternoon, or good evening and welcome from wherever in the world you may be watching. i'm brian sullivan good morning let's get to it. looking like nice gains again today. stock futures are higher across the board. dow futures up 264 points and the nasdaq more impressive, up more than one half of 1% wednesday saw a move higher on the fed move, the dow rising 1%. the nasdaq up more than 2%, the real star, jumping more than 300 points was a case of investors buying the actual news once the fed confirmed w

>>> it is 5:00 on cnbc your top five @5 the futures are higher after the pandemic and powell-led selloff. president biden considering stricter travel restrictions and testing. this as the spread of a new strain omicron and what he sees ahead close but a big day for merck as the fda narrowly backed its covid treatment. and a c-suite shake-up something unusual this way comes as apple stock pops in the middle of all the volatility it is wednesday, december 1. >>> good morning, good evening wherever you might be watching welcome to this first day of september. dow futures up 300 points. s&p and nasdaq are doing better. nasdaq futures soaring the dow and s&p seeing their second losing month in the past three. small caps even worse coming off their worst month from when the waend began in march of 2020 as of this morning, 10% off the high even worse, 120 of those are 20 or more below their peaks. big ones discovery, gap, las vegas sands, twitter, disney, even boeing maybe there is better news the s&p hit a lower low. higher volume. that may be a good sign of the washout coming up, we'll show y

jay powell understands this. although a ma jolter of the question and answer period was about the public mission, there were a couple of tells that i think the market picked up on. that is why we had the big reversal. part of an answer went like this to the question. first part of your question, why is why not stop purchasing now? we've learned it is best to take a careful, sort of methodical approach to making adjustments. markets can be sensitive to it. hmmm. i'm sure the street took comfort from that convoluted answer to the magic number that signals full employment. he was asked about that. well, we already know powell of course is focused on the unemployment, not as much on u-3 number but the unemployment rate. the fact of the matter both these things are not foolproof and neither are really a proxy for the health or labor market but he used the word inclusive also a lot yesterday. harkening to the determination to lower are unemployment rate for greater participation of all americans that has been a dangero

there are some republicans who have said they like powell.y obviously saw him as a better option than the alternative in brainard, so it appears there would be at least a few republican votes and not a lot of democratic defectors, so the with count -- so the whip count probably looks good, but if this comes down to will you vote to reconfirm someone working with the biden administration, there are going to be a number of somewhat mainstream republicans who don't feel the pressure to give their votes, and the inflation concerns support that. that is something that is going to come up on the campaign trail. it may not be something that tanks powell's reconfirmation, but it is a major talking point. you will hear it from a lot of republicans. jonathan: thank you for catching up with us. you just wonder if certain people are trying to position themselves for a certain race at some point down the road in the future by not backing chairman powell. lisa: theoretically. jonathan: that quote from senator cotten, "the core mission is to maintain price

fauci speaking but it was powell and yellen. because what the market really wanted today was not fauci it was hearing powell say, well, let me clarify what i said yesterday, and trying to walk back some of thinks comments yesterday. that's what i think the market was hoping for if you will notice, guys, the top of the market was as powell was testifying earlier today and everyone at least people i was talking to said he's not walking back anything. he's sticking by his guns to what he said yesterday he's not clarifying or you know trying to walk back anything and the market just kind of rolled over after everybody realized that fact we are now -- the problem with the market now is there is too much noise to get it to advance. too much noise on omicron, too much nies from the fed and we are going to have to wait a while for this to resolve. until then it is going to be rocky. >> it feels leak the market is extremely headline vulnerable right now? exactly. look today, tyler. look at the volume and look at simple things like the sp

welcome back, secretary yellen and chair powell. as this pandemic continues, the biden administration and congressional democrats remain hard at work to provide protections and essential relief to individuals, families, and small businesses across the country. the emergence of the new omicron variant shows us that this crisis is not over, and we must remain vigilant to protect our country and our families from the devastation of covid-19. since democrats have been in power, we have delivered for the american public. democrats provided rental relief for struggling renters, provided 70,000 vouchers to address homelessness, provided support to state and local governments, and helped our nation'sle restaurants. a democrats helped businesses reopen, prioritized vaccine distribution, and because of this work, 74.5% of individuals five years and older have received at least one shot. in fact, this thanksgiving was the first time since the pandemic began that many of us spent time in person with our friends and families. under president bid

pentagon official who took the call from powell thought that powell sounded, quote, out of her mind. yeah, you think? this is -- i mean, if jonathan karl's reporting is correct, this is the actual pentagon being told by this trump lawyer that the cia director was wounded in germany because in addition to running the cia, which is a large agency, she's apparently also some kind of commando herself. who carries out secret missions personally, and like, you know, delta force, has to go get her and interrogate her and seize the server from her and then force her to con fence her role in this conspiracy to steal the election, which she was covering up by personally stealing the server in germany from the -- i mean this is not just bananas. this is bananas topped with cuckoo for cocoa puffs. it's insane to the point of being funny. and we have since kind of figured out where that came from. thanks to materials that trump white house chief of staff mark meadows handed over to the january 6th investigation. he did hand over like 9,000 pages of material before something spooked him and he dec

i look at the water levels in lake mead but also lake powell. and mr. buschatzke, i want to talk about these latest predictions, lake mead and lake powell. there was a projection issue that waters in the hoover dam would below 1007 -- the drought contingency plan, the cutbacks for arizona and nevada. lake powell will also lose water but remain above the minimum power cool level, and that's the elevation level where the grand canyon dam would have to pause it's hydro power operations. in september, though, reclamation issued a new five year projection that painted a bleaker picture. lake powell could approach dead pool by 2022 and lake mead's probability of entering tier two cutbacks by 2023 increased. and i think everybody benefits from using the best available science and i'm a big believer in that. because we need to know what we are up against here but ms. trujillo, could you walk us through the changes in projections, from what we saw before september to what we saw with the five year projection? >> absolutely, senator, thank you. and part of the an

now what >> well, it's pretty clear that it was really covid and not powell that we were all concerned about last week. i think we're starting to enter that period, scott, where we would have expected to be maybe three or four weeks ago and a seasonal sweep through the end of the year. i'm a little bit more concerned frankly of coming into next year and how we could potentially see some reallocation as it relates to potentially higher rates. i do think that it's pretty clear that the fed is going to taper a bit faster and certainly could raise rates sooner than previously expected. certainly sooner than maybe a few months ago but i think in this nearterm period, i think it's a great opportunity to take a look at some of these high-flying growth stocks we talked a lot about them they talked about them on "techcheck" just prior to this show and to think about are these sustainable businesses that you want to add to here or is it just going back to the well in terms of high-quality growth names and some of these cyclicals that you feel more comfortable with i would caution that i think th

powell is doing a great job.transition from a very, very expansionary monetary policy to a normal one is a very hard thing to pull off. it's right for him to be responding to incoming data. so i think we need to put things in context first, you know, moving the beginning of the taper by a few months is not a few years. it's a few months. it is in a few months. the second thing that has been lost in all of this is his and the fed's staff estimates for inflation in 2022. sort of where we're going to wiped up next year hasn't really moved that much. and so i think it's good that he drop the transit ore term. that was confusing no one knew what it meant or how long, what does it mean? in terms of what he's expecting for 2022, he is still around 2%. which is much lower than most of the, you know, media hoopla would suggest. >> you also have played the role of healthcare banker so, as we try to think about this variant and also think about the markets, i am curious about how you are thinking how they intersect right no

lisa: jay powell has kept a tight ship. is he changing to the tone of the other, more hawkish members? the messaging and the emphasis are important. jonathan: looking forward to that decision later. special coverage on tv and radio starting at 1:30 eastern time. two days of losses into wednesday. two points on the s&p 500, up by 0.04%. the federal reserve has to get to work. tom: this is the absolute headline. the markets are speaking with confidence. we will hear it from mr. constant at the top of the next hour. it is simple. corporations will adjust, markets will adapt. lisa: i guess it is not a 1% 10 year. it is a great question. people do not understand the bond market's reaction to inflation data. believing in a transitory idea that has been cast aside at the federal reserve. 8:30 a.m., we are looking at november retail data. the important thing about retail sales -- this includes inflation. it is not inflation-adjusted. a time when consumer price inflation is running at 6.8% year-over-year, it starts to get messy. how

chair man powell i want to commend you for retiring as it relates to inflation.mulates over time the longer the rates are at zero and can justify virtually any investment. as we've seen in various bubbles i think the risk shifts and we've let it go for too long and we are in need of a sudden direction which you suggested yesterday. that being the case what are you concerned with when considering the ramifications on the market and economy at large? >> what pockets of risk are you looking at? >> i think it need not to be a disruptive market. it hasn't been so far. if you look at the state of the economy where we are, the most recent round of data you can see that the highly accommodated policy that we have even after its appropriate that we taper and consider at the next meeting tapering faster so that it wraps up a few months earlier. >> i would encourage you, and my concern as we've seen asset bubbles accumulate over the course of the pandemic investors have done incredibly well. i agree in a lot of ways on the monetary front but i suspect there is risk building

powell said we have seen the covid virus hit the economy.e have seen what delta did more recently to jobs and the labor market and the economy, and he said with every wave, the economy, businesses, consumers, are learning better how to deal with the virus. he does not seem concerned that this is at all a major problem for the federal reserve. particularly, he is much more worried about the fed rattling against inflation and looks ready to wage a full out battle. they will be careful and watch the data, but that is the message from jay powell today. shery: the bloomberg intelligence head of vm strategy joins us, and it was interesting to see that reaction in the broader market. i have this chart on the bloomberg showing that those u.s.-listed etf's, markets actually rallied off the fed decision. counterintuitive, right? you would that a more hawkish fed would lead to em's becoming a little bit spooked. what is going on? >> that is a great question. it is not all gloom and doom. i think the fed decision today points to the fact that they are n

fed chair jay powell testifies for a second day. speak with david rubenstein, co-chair and cofounder of the carlyle group to get his thoughts on inflation as the chairman reiterates his move to declare more quickly. plus the who says the current shots will likely protect against severe cases with a new strain as it tries to ease the public sphere. with omicron also affecting oil prices, we will take a look at how the variant is impacting opec's meeting as they consider the possibility of raising or cutting production. amanda: that is one asset class that has not rebounded. stocks having a much better day today. coming off the highs as the session goes along. we didn't get the positive finished by the end of the day. iou a dollar although it is a canadian dollar so it's $.78. we are seeing gauged financials, utilities. big tech is doing ok. middle of the cat -- middle of the pack. the yield unchanged today. lots of questions about what's going on in the direction of rates and we have been talking about the fact that stocks not the on