chair powell: sure. it is essential that we work for all americans, and it is essential that we do that without regard to political considerations like election cycles or particular political parties, views on issues that are outside our mandate. we have to focus on the job congress has given us, which is maximum employment and price stability, and also the payment system, financial stability, and other things. that is what we need to do to justify our continued independence, and we are committed to doing that. sen. tester: thank you. sen. brown: senator reynolds from south dakota is recognized -- senator rounds from south dakota is organized. sen. rounds: thank you. i look forward to supporting your nomination. i want to follow up a little bit with regards to the discussion on inflation. consumer price index rose 6.8% in november. there appears to be a consistency along that line. part of that, you have the opportunity to impact with regard to the demand side. can you talk to us about your discussions,

chairman powell: yes. senator van hollen: what happened in between was a lot of us here in the senate and the house and folks around the country looked at those projections and said, that is not the kind of course we want to be on and we passed the american rescue plan, which helped stabilize the economy and helped result in those much improved employment numbers, isn't that right. chairman powell: yes. senator van hollen: let me talk about inflation. i think all of us recognize americans are experiencing price increases in many areas. the federal reserve has predicted -- the cleveland fed projected a 2.6% inflation rate for this year, which matches the federal reserve board's projections. if you look at consumer expectations not surprisingly they are running higher than that because of where we have been in the last couple months. can you explain why you are confident at the federal reserve that we can hit that 2.6% target while continuing to push for full employment? chairman powell: that is the median o

chair powell: thank you. did not bring any family or friends here today, in light of the limited seating circumstances, but i will mention them in my testimony. thank you. chairman brown, ranking member to me, and other numbers of the committee, thank you for the opportunity to appear before you today. i would like to thank president biden for nominating me to serve a second term as chair of the board of governors of the federal reserve system. i would also like to thank my colleagues throughout the federal reserve for their dedication, perseverance, and tireless work on behalf of the american people. their commitment and expertise were essential to the fed's response to the covid-19 crisis and remain vital to the limitation of monetary policy as our economy continues to progress. particular thanks go to my wife and our three children. their love and support make possible everything i do. my five siblings are all watching, or will later claim to have watched. [laughter] we are thinking of each other and of ou

with that because powell to push back -- would that cause powell to push back? >> he tends to defer quite a bit. that is not to say that there is not an issue that will come up sometimes, where he will disagree vehemently. as you know, he voted against powell in the majority on any number of regulatory issues with ricoh appointments to the fed -- with three new appointments to the fed. powell may find himself on the minority side. he may choose an issue to speak upon and make it known that he does not like it. i would not expect that to be a common event. i do not think we should rule it out. sonali: going back to some of the trading restrictions that may start to occur among officials at the fed, what kind of rules do you see moving forward, or kind of questions do you expect tomorrow coming out of politicians? >> i do not know what the politicians will ask, but the question will come up, there are all kinds of rules and that is what jerome powell wants to do. as you said before, i once sat in that seat. i can contest, i never treated anything while i sat in th

. >> thanks michelle and thank you chair powell. it is expected that the fed will hike rates every other meeting, but in the past, the fed has hike. every meeting. i want to ask are there rate hikes at the executive meeting on the table. is it a live meeting and on that note, will the fed consider front loading of its rate hikes, even if it does not raise every meeting? >> as i referred to in my opening statement, it is not possible to predict with much confidence exactly what half of our policy rate is going to prove appropriate. at this time, we have not made any decisions about the past policy -- two-sided risks now. we are going to be guided by the data. we are going to be led by the incoming data and the evolving outlook. we will try to communicate as clearly as possible, moving steadily and transparently. more to your question, we know the economy is in a very different place than it was when we began raising rates in 2015. specifically, the economy is now much stronger, the labor market is far stronger, the inflation rate is

jay powell left the door open for four rate hikes in 2022. why did the markets not lead -- see this coming given the inflation data? kristine: the trend for this year and starting from the end of last year is still about markets not fully believing that the fed will do what it is going to do. we saw this initially when we heard from jay powell in december, saying the fed could potentially deliver three rate hikes. we thought markets were slow to price that in and we did not see that until early january. then we only got around an idea of a fourth rate hike after hearing from several members alluding to that. bullard is one of them and very much a favorite of markets one -- when it comes to clues about how the fed is thinking about this. there has been a pattern about markets being slow to believe the fed, and price in what the fed is telling us. any doubts about what happened before the fed conference yesterday have gone away. we have this new reality. francine: good morning. when you look at the plan, it does not seem to be that far off with

what do you expect from jay powell and company today? danielle: powell is in a tough spot.here's a lot of hocks, -- hawks, including christopher waller who is on the board, and they are very much intending for jay powell to be really hawkish. the balance sheet has not been as reported on as need be. i think that would be the primary tool going forward because officials are concerned about how close the two year and 10 year are trading towards one another and they do not want to the yield curve to invert. matt: we have seen in times of rising rates, at least over the last 20 years, i have looked at rate rising environments and you do see a narrowing of the spread. sometimes you do see inversion. is that the main fear? danielle: yes, and at is what makes interest rate hikes a blunt tool, instead of trying to control the balance sheet into this hiking cycle. i think they will lean on that. it wouldn't surprise me of jay powell speaks directly to the 10-ers of treasury and mortgage-backed securities. if he wants to be hawkish, he can say we will end the tapered quicker than mid

>> i thought it was interesting today, jerome powell reached into a tool box.think doesn't get enough attention in the market, that is jawboning. when you look at the pace, the level of rates they signaled, the balance sheet was very much in line with what the market was expecting. but the jawboning, the language that he used was more hawkish. i think we're seeing that reaction in the markets today. but i think that is the fed doing its job, right? bringing in inflation expectations without actually having to raise rates. liz: joe, how do you invest as the fed jawbones as cara aptly puts it? >> this is exaggeration but i feel like i heard the word volatility 100 times over the last two hours. as an investor i have to remind everybody there is some certain things you should really focus on, right? things that really matter to you and things that you can control and the interseconds between those two we should focus on. so as an investor don't just operate inside of a vacuum. i love january because we can plan. so ask yourself three questions to get ready to be a

how hawkish has chair powell's message been?nt, we saw stocks rising to session highs, and completely reversing course during his speech. kathleen: it has a lot to do with what markets, what investors, the comments expected going into the meeting. they made the hawkish turn. what kind of message would jay powell bring to the table? he did not signal a 50 basis point rate hike, immediately stopping the bond taper. he made it clear the fed is going to do whatever it has to do to cool the hottest inflation rate in 30 years. he certainly all but confirmed the rate list off was coming. it is on the fed's minds. they have to see what the omicron variant impact is. how many race they will do is inflation. some percent year-over-year. the market is priced in rate hikes. because of the things powell said, he did not say anything suggesting we would be more hawkish, making more rate hikes. he did say they are going to have to be nimble. he said inflation could persist, could move even higher, and the fed will have to be ready to address i

as jerome powell— isn't it? it is. as jerome powell did _ isn't it? it is. isn't it? it is. as jerome powell did say, this - isn't it? it is. as jerome powell did say, this is i isn't it? it is. as jerome | powell did say, this is an unprecedented event and a lot of data that was around last year suggested it was transitory, it was driven by supply—side issues, bottlenecks, et cetera, that was responsible for a lot of the price rises, changes to the energy markets, oil prices above $80 a barrel, natural gas prices surging, they were saying a lot of this was transitory. what we have seen more recently and over a number of months now is that a lot of the inflationary pressures are not transitory anymore. things like labour market participation is lot lower. a lot of people have not returned to the labour market, creating tighter conditions, so wages are rising much more rapidly than we have seen recently, this is a more permanent inflation consideration anything that is one why the fed is saying a lot of the pressures were initially transitory but the spillove

powell's nomination is out there.have this issue hanging over the fed and taking on a level of prominence. and we are going to see it continue to influence the confirmation process, i absolutely think that will be the case going forward. dani: perhaps congress is more in tune with what the american public is thinking. the american public is not thinking about this, what does that mean for congresses potential limiting of trading by policymakers? >> we know there was a stock act back in 2012 that limits insider trading by government officials, members of congress another officials. what we are seeing is renewed efforts to limit the trading of individual stocks by members of congress. kevin mccarthy, the republican leader, came out yesterday saying that if republicans gain control of the house in the november midterm which is seeming like a real policy -- possibility, then we may see a likely ban of stock trading by individual members of congress. so i think that's a dynamic to watch as we head to the midterm election.

, chair powell, good afternoon, michelle and chair powell from bloomberg chair powell, beginning of then you said risks are two sided. i wonder if you can elaborate on what are the risks to be illusive soft landing? is fed policy a risk, overtightening, or what are the risks? then second, chair powell a quick administrative question. you know, robert kaplan's disclosure of security transactions in a couple months, chair powell, maybe sooner, you and i will file our tax returns and list transactions and all kinds of things. next to those transactions we'll put dates. bloomberg asks for the dates of mr. kaplan's transactions, dallas fed is not giving the dates. i don't see why this is a matter for the inspector general or anybody else i mean, why can't he give us the dates? will you help us get the dates of those transactions? thanks. >> so you asked about the risks first. the one risk is that inflation risks are still to the upside, and in the views of most participants and certainly my view as well there's a risk the high inflation we're seeing will be prolonged and move even higher so

chairman powell testimony later

i want to get your general take on communication coming out of jay powell and the fed.he statement seemed standard from the fed, very balanced. conversation during the press conference seemed to rattle folks and i am not so sure it should have rattled of them. john: i think you are right on that. what was the fed trying to signal? it is time to signal rate hikes coming in march. the markets at that price tint. the fed is trying to signal, they haven't had yet discussions of details for running up the balance sheet, but that was go to come soon after they begin to raise rates. and there was nothing there to change those expectations. what did change was, i think it produced the draghi of confidence. we have been saying the fed could not have that confidence, that inflation was going to come down to the extent that they wanted. the chair said that if he had submitted an inflation forecast today, there was no sep projections today, it would have moved his forecast up by a few tenths got his words -- a few tenths, his words. with that, that would have changed a few people's

chairman chairman powell, good to see you again. thank you always for taking the time to answer my calls, meet with me, answer my questions, so appreciate it. let me start with a question that senator tester talked to you about, because i think it's important we recognize, put this in perspective again, he asked about what the economy was like pre-pandemic, during the pandemic and after you said something i think was important. that we are still in a pandemic. and even still in the middle of this pandemic, you said earlier in your opening remarks that the economy is expanding at its fastest pace in many years and the labor market is strong now in our many conversations, you have always prioritized job growth and higher wages, especially for those who tend to earn lower salaries. and you have consistently said that the best thing any one of us can do to increase employment, raise wages, improve our supply chains and reduce inflation is to get vaccinated to wear masks and follow the medical guidance to prevent the spread of covid-19 d

jay powell walking a tightrope not making anyone happening. a year ago the retail revolution was taking the investing world by storm turning the establishment on its head. today investors are most bearish in a decade. i will ask three influential social media investors if the thrill is gone. i'm here to tell you the magic is not over. a lesson from patrick mahomes during the most exciting football game ever. how to stay calm in turbulent markets. all that and more on "making money." ♪. charles: so after an epic overnight trading session, a lot of early morning indecision, the market, well, it heard everything, thought it did at least. it didn't hear from the fed, took off, right? we had a couple economic data pieces out also this morning. and we started the day off pretty aggressively. i came away from yesterday's meeting thinking we would have 25 basis point rate hikes. maybe four or less. i bottom it tell you, a lot of folks out there see liftoff beginning at 50 basis points. now consensus has climbed to five rate hikes. you know, but that w

powell's promise to keep prices in check. markets bracing for more volatility from chinese developers. a barrage of payment deadlines. rishaad: breaking news. headlines concerning this trail of the asset. that's according to people familiar with this. 55% stake in it. at the moment, these discussions taking place with people familiar with the matter informing us about this. this sale could raise more than $1 billion according to those people. there's want to watch on a day where we are seeing equity trading with a hawkish 10. met with a little degree of an easy ride is over there, helping to lift matters here. equity lies at least. haslinda? haslinda: it's about powell not sounding more hawkish than he was before. not any more hawkish than what was said. that's a relief. goldman saying, never mind expectations of higher rates. never mind expectations of higher yields. the stark market can withstand that. jay powell says, the economy can withstand those rate rises. powell says he will do all he can to manage inflation in the u

the chair powell, thank you for being here. you mentioned in your opening statement you committed to regular and frequent contact and i can attest to the fact you've contacted my office anytime we've had a request for a conversation you've been very prompt so i appreciate your responsiveness and want to talk a little bit about the extraordinary inflationary pressures and the tools the fed has to deal with it. of course you could have a benchmark rate increase. we know what that would have as a consequence for raising the price and ultimately affecting the cost of buying a car or house or just making ends meet, your other option is to reduce the balance sheet particularly from some of the bond buying programs. i believe that it was governor waller who just last month said that because of the alarming rate of inflation the fed should begin shrinking the asset portfolio without delay and i think this week the fed president from atlanta said he thinks the fed should aggressively draw down the balance sheet by at least 100 billion a

jay powell not so much a friend to bitcoin lately.ur takeaway about how it's been acting >> listen, the big picture is for the last few years we've had both the fed and treasury providing a lot of support for all asset prices and managed to, call them a global asset bubble, and now you've got a very hawkish debt powell could not have been more direct today we've got no real hope that biden's going to show up with anymore silver bullets right? that gun is empty. now you have headwinds to asset prices we're going through a big re-rating. you see it in lots of growth equity stocks. seen it in crypto. good news if there's a silver lining, crypto already down 50% to 70% from the highs depending on the coin. a lot of the beatdown has happened and seeing bitcoin trading better down here in the 33 to 37 zone. i think it's going to about tough year for assets. right? listen, the stock market could have been a lot worse today. nasdaq finished roughly flat s&p down small with, you know, interest rates, front end down 18 basis points. there's bee

stocks rise as jay powell seeks to keep inflation in check.tors brace for cpi as a four year high in u.s. trades. securities on the pause to an idea for investors, the idea that has been confirmed at $22 billion. when you have a view on everything, what we think on the markets is that the cpi and the fed tried to reassure the markets yesterday. tom: the forecast is the highest level since 1992. the s&p 500 breaking 30 days of losses. take a look at hs tech over in hong kong. you are looking at 5%, a pickup. stocks in china are moderating as well, giving the pboc more leverage as they wrestle with the spread of delta and omicron. gains of 0.3% across the european benchmark. the cac is also open and the u.k. is opening on the upside. should investors start to think about political risk in the u.k.? there is pressure on the prime minister over partygate. he is facing pressure to resign. let us see how this is playing out across the sectors. iron ore placing out at 2.5%. up almost 2% in basic resources, followed by energy and industrial on the lis

jon: chair powell headed to capitol hill. from new york city for our audience worldwide, good morning, good morning. this is bloomberg surveillance live on tv and radio alongside tom keene and lisa abramowicz, i'm jonathan ferro. what a turnaround in the last 24 hours. on the s&p, up .4%. chairman powell, tom keene, in front of the senate? tom: it will be interesting to see. there are a whole host of things to talk about but maybe they will say thank you to jamie dimons. what he did yesterday, did you see the dot plot chart, the idea of outdoing each other where goldman sachs's four rate rises, we be they will do five. it was jamie dimon to the rescue yesterday to assist jerome powell. jon: i felt sorry for mike rowley yesterday. it came out last week same thing, for hikes, balaji reduction. i have heard it from a few banks, including deutsche bank. tom: it is out there, and floating around, and we are staggering day by day. what matters is is it tomorrow we get cpi data? jon: yeah. tom: that is what matters. we have a look a

so in any event powell can take at least some comfort. transmission mechanism of monetary policy is working i don't think you can get the public to admit that he wants the stock market to decline, but the fact that he's got 70 basis points of tightening, he's got five rate hikes priced into the market he has balance sheet reduction priced into the market and he lost what he lost in the stock market, i don't think he's upset by that. i can't speak for him, i just don't think he's upset by that yeah i don't think he's upset with the most frothy parts of the market correcting. the last thing he wants to do is inflate an asset bubble any more than critics suggest he already has, but then if you take it in the most speculative parts of the market that's where you get potentially the most damage if you have deflation taking place within those areas and he's gotten that, and you have to believe that he's okay with that >> that's why i wish to be withdrawn with some of the stimulus earlier and tightened up on the guidance a little bit earlier and

powell not overly concerned with the omicron outbreak. he said so, but one testing company ceo says the testing situation in the u.s. is "an unacceptable mess." we'll talk exclusively to that ceo of publicly traded israeli testing company about what some see as inflammatory comments and what he thinks needs to be done to fix it and the chip shortage still holding up auto production but one company supplying the semis to keep electronics on time, is here to reveal his timeline for normal return. that ceo whose stock is up 90% year-over-year is joining us in a fox business exclusive on the chip shortage and the backlog, but first, fox business alert, do not put the tech bulls out to pasture yet. take a look at the nasdaq, continuing to march higher as we kickoff the final hour of trade, after yesterday's last minute u- turn from red to green wiping out that 405 point sell-off in the process, the nasdaq right now is up 201 points the dow and the s&p 500 are gaining as well, investors are kind of taking a sigh of relief that federal reserve c

fed chair jay powell. dani: and later, stay tuned for interview on the deutsche bank results with the cfo at 6:30 a.m. london time. this is bloomberg. ♪ >> the notion of a 50 basis point rate hike is highly unlikely. manus: the former u.s. fed -- new york fed president there. our top story, fed chair jerome powell thinking march rates may rise. he open the door for faster and more aggressive rate hikes. the markets have had quite a dramatic reaction. bond yields are climbing, the dollar is rallying this morning. the risk off narrative continues. when you look at three standard deviation moves, the curves are flattening. how hawkish a pivot was it in your mind, the fact that he has opened pandora's box to the risk of a rate hike at every meeting this year? is that a risk too far? >> yesterday definitely opened up further risk in terms of previously expecting quarterly rate hikes in march but now there is further risk. on the one hand, with the fact that they want to normalize policy, and economy that does n

i think the current chair - lead by jerome powell will have lead byjerome powell will have a long conversation which they will be done with by march, and the big question will be do they start raising rates immediately at the next meeting, will they announce that today, that they will be doing that? i don't know the answer to that, but i suspect that they will at least have some discussions along those lines as they try and catch up. they are a little bit behind the curve on getting rates up to take care of the inflation, so i know there will be a lot of pressure on them to do that. just to get your take on how effective increased interest rates will be in this current scenario we are in, because of course inflation is at 7%, that is extremely high, will putting up is extremely high, will putting up the cost of borrowing really have the effect of ringing it down? , ~ , down? yes, i think it will be effective _ down? yes, i think it will be effective at _ down? yes, i think it will be effective at bringing - down? yes, i think it will be effective at bringing it - down? yes, i think it will be

powell recon firmf owe /* re-confirmation hearing.nator pat toomey in just a couple of minutes. the futures are up right now so far up their highs a little bit. 'rcongig bk. >>> we got great news that will capture the attention of wall street and silicon valley. sequoia will be investing in citadel securities it will value it at $22 billion. the first time the silicon valley has invested in what is described as a traditional financial firm, if not wall street firm, citadel is based in chicago. the first time ken griffin's citadel securities has taken an outside investor and, of course, by taking outside money, it raises the possibility in the future of a potential ipo or sale of citadel securities i want to mention, this is citadel securities the trading and market-making firm that competes with the likes of goldman sachs and morgan stanley and everybody else this is not the hedge fund but acute endorsement by effectively silicon valley in what kevin griffin has created. i am sure we will have folks on wall street to wake up this morn

thank you chair powell.o the expected that the fed will hike rates perhaps every other meeting but certainly in the past the fed has hiked at every meeting. i just wanted to ask rate hikes at consecutive meetings on the table this year? is every meeting a live meeting? and on that note, would the fed consider front-loading some of its rate hikes even if it doesn't raise every meeting? thank you. >> thanks. so as i referred to in my opening statement it is not possible to predict with much confidence exactly what path our policy rate is going to prove to be appropriate so at this time we haven't made any decisions about the path of policy. i stress again that we'll be humble and nimble. we're going to have to navigate crosscurrents and actually sided risks -- i will say, also that we're going to be guided by the data. in fact what i will say is we'll be led by the incoming data and the evolving outlook. we'll try to communicate as clearly as possibly moving steadily as transparency, transparently. more to you

it echoed what we heard from jay powell after the december meeting.t act -- echoed what we heard last week, dropping the word transitory, getting ready to start hiking rates. here is what jay powell said that resonated with so many people at the senate confirmation hearing. >> if we see inflation persisting at high levels, longer than expected, we will -- we have to raise interest rates more over time, we will. we will use our tools to get inflation back. >> he's not toying around the idea that the economy is strong enough. he says now, price stability is needed to maintain expansion. in a way, high inflation is a severe threat to the achievement of maximum employment. he is ready to start balance sheet runoff to reduce stimulus further. in fact, he did avoid citing the number of rate hikes, the timing of the first hike. that is what a fed chair would do at this time. you can't talk for everybody until you know what's on everybody's mind. president of the cleveland fed is ready to act on the rate lift off if conditions remain as they are. the atlanta

powell had to say, more importantly? >> can i say what i think and what anybody thinks for a second here i want to show you what markets think which is a little bit more important and will change the conversation markets sped up and increasing the outlook for fed rate hikes in the wake of the meeting with the fed increase in march and balancing after that powell did not rule out consecutive hikes or limit the number of hikes. he had greater concern over inflation. he said there is scope to tighten policy without hurting the labor market powell said the fed needs to be nimble the market had been priced for quarterly hikes this year, that's four of them. futures now see a hike probability of the meeting in march and the fourth in september and now a fifth in december hold the chart up there for a second thanks for the graphics department we had to make the template this morning. thank you, graphics department the break in june through september could be because the fed could halt hiking rates while it begins balance sheet

jerome powell kept going back to the _ well. jerome powell kept going back to the statement - well.that - well. jerome powell kept going back to the statement that this i back to the statement that this is not much different economic expansion than the one the us had last time in the last few recoveries. he thinks it is a lot stronger today in the labour market is we have seen in the us in a0 years so he thinks that may take a little more monetary medicine to rein in inflation. i think it is a little tricky right now. we�*re going to come out very strong in the fourth quarter, we think, be over 7% gdp growth and in the first quarter things will slow down a lot. we are in receipt seem a services spending, slowing down, things like restaurant biz visits and travel and tourism coming down so we could slow to 1.5% gdp growth the first quarter but we are confident that the consumer and economic growth will rebound in the second quarter as long as we get past this omicron variant search. thank ou omicron variant search. thank you scott _ omicron variant search. thank you scott for _ omicr

and chair powell welcome back.you last appeared, i also asked you about an expected fed report on digital currencies you indicated that delays in releasing the report was because the fed wanted to ensure their analysis was complete and that a release was expected in the coming weeks however, that report still has not been released. do you have an update you can share on the status of the report and are there problems with sharing this report with congress and the public and what the fed may be proposing with respect to possibly centralizing public digital currency? >> the report really is ready to go, i would expect we will drop it, i hate to say it again, in coming weeks but it is in a situation where it's ready to go the fall for us, given changes in monetary policy and other things going on, it was hard to -- we didn't get it quite to where we needed to get it, but it's effectively there now and i will tell you, it's within weeks we will be publishing it and by the way, it's manufacture gonna be an exercise in a

>> no, not at all. >> that's the shift in powell's press stance.he saw no reason for crypto currency if the central bank were to issue its own digital currency. joining me right now chamber of digital commerce founder and president periane, thank you very much for being here. your reaction to what you heard from powell yesterday. >> there are 100 of billions of dollars of stable coin that are already in circulation in the crypto economy today. the fed is behind at the end of the day when it comes to developing strategy and really understanding how the fed is going to play in the global cbdc ecosystems. the best approach for the fed is to partner with the private sector to leverage the technology that has already been developed and is already in use today. i think this is really a positive signal and it also shows that there is truly an opportunity for the u.s. to continue to take the lead in the block chain ecosystem. >> well, i mean, it's interesting because they are behind the curve and this is going to be the group that comes up with regulations

the irony of powell, coo capitulation on transitory -- otherwise he won't pass.lutely not. charles: he did though, he didn't, he didn't like lend any kind of credence, hey, they will be simultaneously hiking, running off the balance sheet. i mean we've heard some aggression serves things like folks from mary daley that added a lot of fuel to the speculation. >> a lot of people, not just mary daley, jamie dimon, hedge fund legend paul tudor jones, many others. it seems people are tripping over themselves in terms of wanting the fed to hike rates but what is interesting, charles, if you look at market price signals, the slope of the yield curve, commodity prices, the dollar, none of those markets, none of those markets suggest the fed is behind the curve so i think we need to take that into consideration and let's not get crazy with the amount of fed hikes we're going to see because unfortunately the economy is going todown shift quite significantly in 22. that will catch a lot of investors by surprise. >> i'm surprised no one else is hardly saying that. you're on

so when it comes to stocks, jay powell, which side is correct, the bulls or the bears neither. if you're buying companies to make a profit and return it to shareholders, i think you'll do just fine. if you make no money and grow fast, you won't do fine because powell is not on that team any more the stocks of big companies went down but unlike the spacs and ipos of the past year, i think they'll be able to bounce back a high you may ask on companies do badly already isn't powell going to have to destroy economy and sell everything and that is why we have the same sell orders pushed us monday and tuesday and the moment he ripped about rate hikes. >> want you to consider the following. right now the major companies that have reported, we've seen a huge number of upside surprises. doesn't mean their stocks could soar when there are high explosives but it will matter when the selling stops. since earnings season began we've had beat and raise quarters from johnson & johnson, proctor and gamble, microsoft, verizon, travelers raytheon, 3m and wells fargo. netflix, all right and ge, a

are you in sync with chairman powell's position.stated a couple of days ago, would you say that you are pretty well in sync with his analysis for his assessment of climate and where belongs in your mandates? >> yes, yes i am. >> he said, to the degree it fits within your mandates, climate is one of many factors. it is important but a very narrow one. how is it you get so much more -- now i am asking you to analyze yourself. i am trying to answer why so many of our friends on the others' line of the aisle think you are wonderful on climate but they are not going to support chairman powell for some of the same reasons. i am just wondering how can i reconcile that in my mind? i'm not asking you to be my psychologist, but you have any thoughts or theories on why that may be? >> we operate within our statutory mandate. we take -- talk a lot about what those are and what those mean. those are the guardrails we operate within. i tried to be aware of emerging risks. i thought it was important to develop research in the area of digital finan

i think having raskin and jefferson along with chair powell and vice chair would be helpful.omaine: i have a broader question about economics in general and the way you view the world through your research. we talk a lot about diversity of thought and i remember when mary daly was elevated to be a bank president. there was a lot of talk about her background, basically a high school dropout and got a wealth of personal experience to what was ultimately her own professional experience as well as her academic experience. that shaped her research and studying the labor market and she has been very vocal as san francisco fed president to talk about these issues from that perspective. is that necessary as economists when you're are supposed to be data driven? andrew: i think it is absolutely critical. just as an example, i think in retrospect, the fed itself acknowledges they probably started tightening too quickly in 2015. they were mostly looking at the unemployment rate, which they were thinking at the time that 5% might be at, as low as it could go. it turned out that unemploym

now you know how to bet with powell if you think that jay powell wants to destroy the economy you pour the sark over the arkk and you bet they all drown and no one gets out alive. john in pennsylvania, john >> how are you doing mr. cramer? >> could not be better, man. what's happening >> i stayed home for three weeks, getting over a hip replacement. first thing i did was joining an investment club. >> yes >> i am understanding the new rule we are living with, with in t v vesting. >> i got ceos watching me, what's going on? >> in this new world, everyday is getting down. where does it fit? >> yeti was recommended yesterday by someone and it was the most beautiful recommendations and so many good things happening there it is an interesting idea. i think that yeti may be the kind of stock that you can ride things out with. we want dividends and return of capital and we want things to make money >>> now, i mean hey -- if you think the fed wants to destroy the economy, now you know what to do. you pour the sark over the arkk and you bet the whole thing stinks no sinks. on "mad money" tonigh

> chair powell -- >> chair powell -- >>'s hearing -- >> what he will be talking about -- >> i'm lookinge has to say. >> the fed is in a tough spot. >> they have a significant inflation problem on their hand. >> we are now looking at a seven handle. >> on the one hand, they want to appease financial markets. , on the other hand, you have the public upset about inflation. >> it has become political problem number one for

so we're very focused on that, as chair powell said. with regard to the issues surrounding climate, we don't do environmental policy at the federal reserve. it's not our expertise. what we do have responsibility for is that supervisory agencies are planning and we do sort of have a responsibility of understanding implications of a host of different kinds of things, and that's where scenario analysis comes in. it turned out the pandemic had enormous financial consequences, so it's on us to do research to understand how shocks could affect our financial system, and that could include severe weather events and other aspects. >> speaking of shocks, i think we all remember the war of yom kippur. some of us are old enough to remember what happened in 1973 and the shock that had when oil prices quadrupled. in 1981, it was 18.64% of wages. it was devastating for the folks working hard every day to make ends meet. speaking of politically motivated, with my distinguished colleague mark dakota sitting next to me, when we watched this president wit

so ask this question to german powell this week i'd like to ask you. do you think that rolling blackouts and i had just come from a hearing for i came to this hearing tuesday when powell was here.literally had. about breaching dams in this country. these are radical ideas. do you think that rolling blackouts due to lack of stable baseload power poses a more tangible near-term threat tato the stability of the financial systems? >> we tried to take into account almost of different t risks to the system so we are trying to always kind of look at over the horizon and take into account the whole risk list of risks including from a broad. we can try to do that, we're not very successful always but we try. >> my final comment here, one hand we had our colleagues who are sending the strongest message possible that we should stop production of oil , natural gas, coal. even reaching breaching dams in some cases here. you can't have it both ways. what is going to do that to this economy and inflation, that's why this car is spinning out of control on otthe highwa

listen to what jay powell had to say.hair powell: we and all other forecasters forecast that we would be seeing lower inflation. the economy no longer needs or wants the highly accommodative policies we have had in place to deal with the pandemic and aftermath. we will be normalizing policy. we will end our asset purchases in march. if we have to raise interest rates more over time, we will. at some point later this year, we will allow the balance sheet to run off. it is time to begin to move away from those emergency pandemic settings to a more normal level. it's a long road to normal from where we are. matt: let's bring in megan greene, harvard kennedy school fellow. it's been a long time since we heard the fed talk about tightening financial conditions with three tools. they will taper the monetary accommodation they have got, the bond buying program, raise rates if needed, and they will let the balance sheet roll off, reduce their balance sheet. it is all this going to be able to happen with a simultaneously growing e

charles: bob, next week, jay powell, would you like to see him go 50 basis points? there's a sort of thinking now, everyone is expecting the worst, the harshest treatment why not go for it while we're anticipat ing it? >> you know, i think the major sentiment is still 25. they are increasing number of people asking the 50 question. i don't think we have an emergency here so i'd be surprised, and i think the market would have a hard time if they went 50 so i think they got to get out of the gates first of all they have to finish the tapering, they got to get out of the gates and we'll get a few 25s this year most likely. remember, charles we're coming from zero. zero was appropriate, we had an emergency, but the emergency is long since passed so the fed has got some fighting back to do charles: absolutely, bob always appreciate it thank you so much. >> take care. charles: i want to bring in simpler trading options director danielle shay, and danielle i want to start with the netflix, because it's one of these well- known stocks that really honestly for maybe five or

and so are you >> people forget that jay powell's first month on the fed was during the taper tantrumay or june or july of 2013, he has seen the power of the fed's remarks firsthand both negatively and positively. and he knows that him speaking is a tool as powerful as actually raising or cutting rates or tapering or not tapering so, i think you're right, jimmy, and i think we could expect to see more of that going forward and it's become important what the fed says at these conferences. >> hey, jimmy, before i let you go -- hold on, i want to get a quick thought from jim we started the show with you really in suggesting of what you said earlier, that you're looking, right, that a lot of these stocks have come down an awful lot. i don't know if you heard that josh had bought robinhood today for a trade. he bought more matterport and more paypal. do you really feel like we've hit the bottom >> wow, 15 there is some core value there, even if it's just paypal to buy them the disney call i thought was good now, look, i do want to see microsoft go up. but, look, we had a thing like nvidia

fighting inflation the fed chair powell says the central bank could raise rates more than projected if needed. how do you invest asthis easy money era fades away we've got two power players this hour the ceo of cigna is with us. we'll get his take on covering at-home tests and the company's big push into telehealth benefits and the ceo of akamai one of the most interesting companies of the internet era, one of the company's most just companies by just capital in partnership with ceo we'll talk with the ceo about job creation and responsible corporate behavior kelly. >> thank you hi, everybody. take a look at these markets a big turn around for the nasdaq since yesterday. it's up one and a quarter percent. well off the sort of 14,000 we say 7,000 level. s&p higher by 29 dow up by 95 around session peaks there even though it's the underperformer some with the chip sector, which had a bad start to the year, but trying to stage a turnaround and the yield perhaps underpinning this change in sentiment, it's in the red today around 1.75% >> we begin this hour with the fed. chair powell on cap

an lael brainard has worked closely with jay powell. she we would -- she will be repressing him as fed chair. they support the -- replacing him as fed chair. i think lael brainard is well prepared to do that. she will not be vice chair of supervision but another voice that is expected to call for tighter regulation of banks and saying that banks need to do more to assess climate risk when they make loans and other extended credit to investors. >> that was kathleen hays. let's get you to vonnie quinn. >> new york city's covid-19 infections may have reached a peak one month after the first case of the omicron variant was identified. the seven-day average has dipped significantly since the end of december. the cdc has raised its travel alert for canada to the highest possible, recommending against travel. the cdc urges citizens to avoid plans. novavax says it has shipped its first dose of its covid vaccine to europe. the novavax jab is already used in several countries in asia and the country expects feedback from u.s. regulators sometimes

rates are a head wind for growth names it is been a nightmare that we've been trapped in since jay powell turned hawkish in late november some didn't get the memo that growth had gone out of style until netflix reported and of course netflix imploded and that was a week and a half ago. reporting unexpected slowdown that caused the stock to shed more than 20% of the value and bringing down a whole cohort but the pain has been so intense for so long that rather than marking the beginning of the big growth sell-off, i wonder where the netflix meltdown was more like the day new mon we hava big industrial value, reporting sub par numbers that made us suggest the legitimacy of the rally er that feeling the sting of supply chain woes and port congestion and worst of all covid. yes, they have had to work hard to staff or to overcompensate the freight needs and the semiconductors in every aspect surprised and they realize that the manufacturers need older chips. sure they're being produced but not as many as we need and the pesky port problems are the heart of the supply chain crisis finally covid