chair powell: i do. [laughter] mr. rubenstein: ok. today -- how do you coordinate with central banks, let's say, in england or japan or china, do you have regular conversations with them about what they're doing? chair powell: we do. i meet six times a year in switzerland with the heads of all -- many, many central banks, even the small and medium-sized banks in basel. in addition in addition to the central banks, i have regular die logs going -- dialogues going on with most of them. what we're talking about, though, really what's happening in the economy and how we are thinking about policy and that kind of thing. it's very important that we keep those discussions going because particularly in a crisis you're going to need to know each other and be able to trust each other. mr. rubenstein: do you think the u.s. economy is pretty much in control of its own inflation rate or do you think there are events going on, what china is doing or the ukraine war make you nervous where inflation might be going? chai

chair powell: no. david: so you need to get to 2% and the goal to get there is by what period of time? chair powell: we say we are using our tools to get there over time. if you look at our forecast, we expect 2023 to be a year of significant declines in inflation, and it is our job to make sure that is the case. i would tell you that with inflation headline, pce inflation is running at 5%, core inflation at 4.4%, it will take into not just this year, but next year to get close to 2%. david: so 2% is firm? you are not going to get off that? chair powell: yes. david: the theory of raising interest rates is it will decrease economic activity and increase unemployment. but you have been increasing interest rates for a while and unemployment is now at a record low. what is wrong with the theory? why is unemployment not getting higher? chair powell: the labor market is strong because the economy is strong. as i mentioned, it is a good thing that we have been able to see the beginnings of disinflation withou

chair powell: yes. david: the theory of raising interest rates is it will decrease economic activity and increase unemployment. unemployment is now at a record low. why is unemployment not getting hired? chair powell: the labor market is strong because the economy is strong. it is a good thing that we have been able to see the beginnings of his mission without seeing the labor market we can. it is just that there is a lot of demand for workers. if you look at the supply of workers versus demand, demand for u.s. workers is now more than 5 million greater than the available supply. the available supply consists of people who are working or actively looking for a job. this was not the case before the pandemic. the pandemic really had a significant and left lasting marks on labor supply in the united states. there is now a shortage of workers and it almost feels more structural than the cyclical. david: you have resisted saying what unemployment rate would be acceptable to you. is there an unemployment rate

chair powell: all of that. david r: no leaks. chair powell: no. david r: as you look forward for the remainder of this year, your view would be you would be happy if inflation would get down by the end of the year? 2% might be unrealistic, but core inflation is about 4.5%? chair powell: it is in that range. we expect significant progress on inflation this year. it is our job to produce it. we threw these numbers around, but the reality is we are going to react to the data. if we continue to get a strong labor market reports or higher inflation reports, it may well be the case we have to do more and rate hikes more than is priced in. david r: if i wanted to get a mortgage on a house, he would say i am not better off waiting until next year than now because rates aren't going to come down that much the beginning of next year? so i might as well get the house now? chair powell: surprisingly enough i get a lot of advice on things like this. i really can't respond. [laughter] david r: on the whole, to summarize where you are, you are saying the job sta

which jay powell appears on the podium. on friday we have san francisco fed president mary daly on our air exclusive interview. the first fed official to speak publicly after today's press conference. get ready for that. after the close we also have really big news, folks. we have earnings coming in from meta. i got to tell you something. this is a big, big deal. this is the first mega, not the first megacap this week. formerly known as facebook, very influence stock. i want to give you the setup. this is a stock when they reported earnings in the past, it would move 3%, 4%. take a look the way it moves down, 24% down, 17% up, 25% down. this stock is going to make a real big move. here's theroblem. it has become something like russian roulette. we're not sure wheret wall stret is looking for, the average for the year, wall street thinks they make $160 a share. stock will go there, 260 is the top target, 102 is the bottom target. that is a pretty big gulf. it's a little bit dicey. they're looking tonight, almost 32 billion.

powell, front and center. shery: the markets fluctuated according to what chair powell was saying. we managed to gain ground with the s&p 500 rising and the nasdaq 100 finishing your gold market territory. that is not extending to the future sections in the asian start of the day. downside pressure. we're watching the 10 year yield. we saw it gain ground, .2%. the deepest inversion we have seen in the cycle, easing a bit, bit of pressure for the two year yield. we saw the dollar falling for the first time in four sessions, helping push wti prices higher. we see the gains of $77 a barrel. we are seeing more optimism about china as well. we have seen the prices for asian shipments from saudi aramco, they could be rising for the month of march. bell, it is about chair powell's message and whether we could see a higher peak rate, given the strong jobs number that was seen last week. >> we are just at the beginning of this process. the disinflationary process, the process of getting inflation down has begun. it has a long way to go. these are the early stages of disinflation. it is not

i think that also helps powell. i know powell doesn't believe it does.n establishment, vice versa. it's a great, great jobs report. average hours were up, all of that. when there is increase in the supply of goods and services that tends to pull down inflation, not cause it. putting people back to work is not inflationary, just for the record. and also, if you look at it, the numbers that are dropping off, the cpi numbers, year-over-year, will bring that number down quite dramatically over the next four or five or six months. it will be quite a dramatic drop. the background here for powell is very good. the background for biden is very good. my question i ask why does powell take this occasion just before the president of the's state of union address to have a interview with david rubenstein? that is confusing to me. neil: i asked that, it was argued before we got the date of the president's state of the union address. i don't know if that is accurate but what we're hearing. we're watching the fed chairman with david rubenstein. we're monitoring what he

manus: for charge alarm powell -- jerome powell with david rubenstein in his first interview since thatomc decision last wednesday. we are obsessed with the word disinflation, that is the only thing anybody heard yesterday. 15 times last week. dani: was it 15? we will need a disinflationary jar and put a coin every time someone says it. joining us now is jim cielinski, global head of fixed income at janus henderson investors. are you going to make us rich? disinflation, yes or no? jim: the disconnect between what we hear from powell and what markets are saying is the fact that inflation has already slowed. that inflection point is in the market. you're on your highly misleading. if you look at the last three months, on core or non-core, you are looking at 3%, 2.5% inflation numbers already. it will take until year end see that in the year on year numbers, powell is focused on that because he doesn't want to let up too soon. but if you look at current inflation trends, you are already there, that is why market see the end even though powell is quite consistent in saying we have more to d

powell. he said there is disinflation with a terminal rate could go above the dot plot forecast and there could be further hikes in the pipeline. the market, labor market remains red hot. we are not seeing a services inflation come down to differently. as the market is reading this fed? madison: that's a fair question to ask and we should be careful with how we are interpreting the market rally that we have been seeing. to me, it's not a rally based upon incrementally of issue messaging. i think it's actually more so that powell's message was in it -- was incrementally hawkish. that's what we saw market pricing for fed rate hikes this year remained pretty much unchanged despite yesterday's speech. i think we are grappling with this question, can the economy absorb higher interest rates? the data over the last few weeks suggests there is a higher probability that can be the case. nonetheless, when i think about the broad path forward and full scope of probabilities, i do think we are still ske

kenny, to you off the squat jay powell looked like a -- jay powell looked like a hawk to me. what does that look like for the sectors for us? >> i'm in the same cam as you and i don't know what he heard at all. i didn't hear anything that he heard at all and thinks it's the last rate increase. there's going to be two more like him and goes till may and then i think he pauses but look, they had all the journalists in the room trying to ask the same questions 11 different ways to see if he gave the same answer or if there was any change to the tone or the words and that's when you saw them all. look, edgar, it's over. >> i hear transport is up almost 4% today and yesterday's eci and employment cost index and going down and powell wants that to go down and one more quarter and there's an above average chance this was it and just look at how the bond markets, your job is to guess before and transports that strong and small caps that strong and that's the market telling us that we're in a bull market. i know it sounds crazy but october was the low and seeing that for awhile and ho

chair jay powell, what will he say. the questioning they are saying exactly what they want to say. it will be very intentional. this chart suggests it will be steady as she goes. everything to do with the hot jobs report and the action for the two year yield backing up 30 basis points over the last three days. that big backup really pressuring stocks. this is a minor dent on the year. this is incredible. we are not even two months in. we have the s&p 500 up. we have the nasdaq technology doing better. the stocks up 20% and then take a look at even the dow transport. lots of different sectors participating. looking at the 10 year yield it's actually up -- down on the yearas for another stock that's hi it is bed, bath & beyond. the mass mood -- the massive move up. down 48%. it's hard to understand with so much going on in terms of one analyst saying it has a price target of zero. have you ever heard of a zero dollar price target. i have not in my entire career. guy: we've done the bed and the bath, we are definitely beyo

has jim and powell dish has chairman powell given us a green light to buy risk?> by risk, you need to get macro and fundamentals and technical's need to be on side. if we are religious about the yield curve, when it's inverted like it is, it hasn't been a great time to take on risk blindly. there is no strong signal there. you have to believe the u.s. nominal growth number which will be going around 4% in the recovery next year is enough to jews earnings? on the technicals -- to juice earnings. we are not getting the same green lights we got in october so it's tough to take what powell said and go for risk. tom: there was a strength to the ftse yesterday with a researching equity market within the united kingdom. is the ftse for real and it will it be some sort of new generation post-pandemic? >> the u.k. was probably the strongest developed equity market last year because it had the best natural stagflation hedge within the index. they had commodities and financial growth well set. if it wants to retain the leadership in global equities which we think it can, it

powell spoke about financial conditions wednesday.et's take a listen. >> financial conditions did not change much from the december meeting to now. it mostly went sideways her up and down, but roughly came out in the same place. it is important the markets reflect the tightening we are putting in place. there is a different perspective by some market measures on how fast inflation will come down. we will have to see. i am not going to try to persuade people to have a different forecast. katie: marilyn, help me out. you look at the bloomberg measures, goldman sachs measures. you even look at the chicago fed measures of financial conditions. i see easing there, i do not see too much in the way of meaningful tightening especially not in the past six months or so. i am going to come to you. what are financial conditions, what do you look at to judge financial conditions? marilyn: when you look at financial conditions, it is a broad-based set of data you are taking into account. i think possibly win we heard from chair powell who was talki

first we just heard from fed chair jay powell he says deflationary progress has begun.rst we'll break down his comments and the big market future >> in the meantime microsoft holding their big event focused on a.i ceo satya nadella says it's going to reshape everything in the software space it's already reshaping search for them he joins us in a few minutes to talk about this revolution and we have a great panel assembled to talk about both of these big events steve kovach along with oppenheimer analyst tim horan, kate rooney, herb greenberg and jennifer elias will be joining us to talk about microsoft >> and on the fed and the markets we have hear from bill lee and steven denicholo but before we get to them let's get to our own dom chu to see how the markets are reacting

what are you expect from powell? i do think you will push back on the amount of pricing, the amount of cuts that are priced in the market. he will leave the door open to further hikes, particularly if financial conditions ease in response to today's meeting. francine: are you expecting easing or a cut? sam: cuts by the end of the year predicated on the economy weakening aggressively. francine: is this something they have tried to engineer, or if they cut, have a overhyped? -- over hiked? sam: they waited too long last year to hike rates. inflation is overshot. we and the fed don't think inflation can sustainably stay at 2% unless the labor market cools. to cool the labor market, you need the unemployment rate to rise. francine: what are you expecting dollar to do? sam: today it is anyone's guess. the weakening trend i don't think is going anywhere. if you think about the global environment and how it has evolved the last eight weeks, you still have cooling inflation and a weakening economy in the u.s., but global gro

what powell has to say. taking a breather. hitting the pause button after the best month since october. the best start of the year since 2019. snap stock sinks, dragging down meta. we will get a read on the consumer with mike sievert, ceo of t-mobile. it is weird and cold to have you here in person, guy johnson. guy: i have never sat beside you before. we will see what happens here. anything could go wrong, but we will see if it goes right. i have seen your desk, which is a whole scary thing. alix: my apartment is much nicer. guy: i have just about thought out. it was quite chilly out there. i woke up to snow in new york this morning. alix: me, too. that was surprising. a lot to get through over the next couple of hours. let's get to breaking data. we have openings coming in much stronger than estimated at 11 million. we just had the previous month, in line. 11 million job openings. we are still there in a superstrong job market. guy: in some ways, the ism job numbers couple meant and that as well. the isom employment numbers

powell led a pre-calculated final.om of the secret protocol of david manning of the british prime minister's chief adviser tony blair at the meeting of the blairs by george, bush, jr. in 5 days. until the security council. everything was already decided at their meeting, mr. bush and mr. blair frankly expressed their doubts that chemical biological or nuclear weapons would be found in iraq in the coming weeks . the president said that an elephant invasion was imminent, the two leaders. we discussed the timetable for the start of the war, the details of the military campaign and plans for the period. after the end of the war. date of, the start of the campaign has already been approved for march 10th. it was then that the bombing should begin, then the date was shifted, but only by 10 days. that's how it all starts. the united states in iraq will take more than a million lives, blow up the middle east and give rise to monsters like gigil. well, the story of the test tube, the indelible stain will fall on the biography o

this is not what jerome powell wants.surely something he will bring up in the press conference. michael feroli hopping in as well, chief u.s. economist at jp morgan. one of the very first to call for 25 basis points. walk us through your call on that. what was the game changer for you? michael: well, i think various fed officials signaled that pretty clearly. you had a bunch of regional bank presidents, who are not necessarily dispositive interviews, but then when governor wilder said he favored a 25, i thought that was a pretty clear signal, and then various reports in the media by presumably well-informed reporters indicating that 25 is a block. it feels -- a lock. it feels like that should be the least -- maybe famous last words, but the least interesting developments. kriti: lots of jinks is on the ship -- jinxes on the show today. i want to bring you the idea of a lag in what that means -- take a listen. >> all the analysis shows that the temp in the last fed rate hike -- if much proves to be the last fed rate hike,

do you think jay powell can engineer a soft landings.articularly after nick timiraos asked him a question he got a little loosey-goosey, yeah i can do this? >> yeah, he was the most confident i've actually seen him. he is trying to engineer this soft landing on a rocky surface. it is murky, he is not seeing that much. what he is seeing though is that those consumer good prices are coming down. it is impacting the housing market which is really interest rate sensitive but where it is still not clear is unemployment. the unemployment rate is still at a record low. yes we've seen these headlines, layoffs across the tech sector, but it is just a drop in the bucket, right? and so i think until we see inflation rate at you know, 3 or 4%. i know they want to get to two. i don't think they will get there. the unemployment rate meaningfully going up, i'm saying just a little bit which is meaningful, i think they're going to keep increasing rates by 25 basis points. it is more of a measure, these are smaller, market likes it. i think he can pull i

did jay powell achieve that goal? he was asked a bunch of different questions were he seemed to leave it open. >> he achieve the goal of getting through this meeting without necessarily signaling or having the markets misinterpret terribly what he had to say. they are feeling their way along, they are in a new phase in many respects. the first was to get to neutral. the second is to get into restrictive territory. now they believe they are going truly meeting by meeting. they probably need more a little bit more restrictive stance of policy. in march, we will learn a lot about when they are closer to it, how they see a stopping point, a holding time, then ultimately a pivot to easing. >> is there still a sense that the markets think the fed chair is bluffing? this is the first gain we have seen for equities on a fed day since back in july. is there a sense that the market is thinking about the fact that jay powell is keeping the optionality that he doesn't see rate cuts as a base case for this year? guest: sometimes t

the debate here is how much more hawkish can powell possibly sound? he's made it clear where he stands on this they're going to keep raising rates. the market thinks they have one, maybe two small rate increases, and then they're going to cut rates by the end of the year fed futures are 4.5% not at 5 or 5 1/8. the fed apologists say don't fight the fed. i talk to bond market people they have their own cliches and one i hear from the bond market guys the federal reserve tells the market when it's going to raise rates but the market tells the fed when it's going to cut rates. and right now the bet is exactly what david said, the fed is going to force them to acknowledge that and cut rates later in the year. that's what the bond market says fomc is 12 people. the bond market is more than 12 million people and that's one of the reasons i tend to spend a lot of time talking to the bond market guys at this point. you see the dollar up right here and pretty modest reaction on the s&p. >> david, before this whole rate tightening cycle began, i remember you sp

jay powell coming up shortly. 40 minutes, maybe longer than that. 50 minutes to go until jay powell willm trying to maths, it's hard. it says on the screen in front of me it's around half an hour. so it says on the screen in half an hour fed chair jay powell will speak. of course he will be speaking to our good friend david rubenstein. a sit-down of the economic club of washington. you also have tif macklin speaking later on. going to get the state of the union at 9:00 p.m. in washington. david westin has some great coverage at 8:30. alix: this is the moment where the producers say read the prompter. >> it's wrong. it says half an hour. he's going to be speaking -- i'm just saying that. alix: this is going to be fun. we will be monitoring that on television. david westin will speak with mike mccall of texas. joining balance of power. guy and i are heading to radio. the government changes over in the u.k.. the nasdaq 100 up by 5/10 of 1%. you have to wonder how much short covering is playing into the move. earnings revisions aren't as terrible as they used to be. maybe that's helping impr

liesman, i begin with you which powell shows up today? the hawk or the dove last week it was the dove who apparently showed up, or at least that's how the market took it so what happens today after the jobs report on friday? >> i don't think powell was all that dovish last week. i want to push back a little bit. you're right, the market took it as dovish, and he did use the term disinflation causing the two year to decline. >> he use it had like 15 times >> let's look at what happened after the jobs report. the fed didn't say nothing what did the market do the market tightened itself, and it tightened dramatically. the market took, i don't know, mother may i, like eight giant steps towards the fed, and the fed didn't say anything. it took a few more steps after there has been some fed talk recently but take a look at the two year from wednesday to today. straight, down, flat, up and up again. and that's really the story. >> you said moments ago before we came on the air peak fed fund is at 5.15 more or less. >> thanks for reminding me wha

the system is wrong or rigged or powell is wrong. all three camps were on display the moment powell started talking today before he even finished a acc eed a sentence. did they wait until he stopped mentioning deflation no the result of what he would say and a bear market and the market will go lower so get running in front of other people that will sell the funny thing is for most of last year, that was the right attitude rates peaked and the dollar peaked selling stocks was always the right call but no longer the right call it makes sense once the fed says rate hikes are working and we're pretty far along in the tigetig tightening cycle as they see wage inflation i'm so focused on the bozos because it creates opportunities. you need conviction sellers are wrong and you're right you need to believe in your view, not the view the tape gives you that the bears give you that the people on tv tell you it's no good you don't get the gains very often. they're difficult to come by the ones like today. you can look what is down and buy it b

will she be as clear as jay powell? if she talks about the concern of the balance of risk, will she say she's worried about inflation and that might give a different response to markets then we get amazon, alphabet and others after the bell. very different picture from meta. how much is this job cuts and ring able to cut the fat from the last decade. they are focusing more on the message so how much will that cause a pop in other tech names with amazon numbers up in the premarket. google is up about 4% and apple shares up about 1%. this is building a tremendous rally today. tom: a moment of silence -- they nailed it. he got the whole you're wrong but in earnings season it was optimistic. we slept here. it was a little warm in here. jonathan: george saravelos joins us now. what you make of the performance in the news conference yesterday? >> good morning, i think he did a good job. the first point is he was not dovish were hawkish, i think he was agnostic. he said the market is right then maybe we will hike this much. ke

powell? >> also arizonian. yes i chair the board at the mayo clinic and i can tell you the importance of telehealth in the case of national health -- >> absolutely. yes and i really do thank you for your leadership on moving forward, when are ij a, and working with our companies to ensure that all americans can be connected. >> mrs. sewer? >> another yes or no question. do federal subsidies like the affordable connectivity program, which provides $30 a month stipend, to wards internet service for eligible households, and $70 per month for households on tribal lands, lower barriers to broadband access? >> absolutely. it's a critical stop band measure, it was a critical response during the pandemic, and it's a quite a goal stop measure moving forward, while we install high-speed internet networks, to put in permanent solutions within our communities. >> appreciate that. mr. powell? >> yes, i think so, providing a free service for those prices, -- any barrier towards, adoption that's critical. >

valentin bogdanov to say that the entire foreign policy of the united states comes from colin powell's test tube, which he showed while sitting. here at this table would be an exaggeration. under a false flag, the americans also overthrew the masadyko government in iran and staged an incident in the gulf of tankin, which started the vietnam war and much more, and yet in every modern crisis there is at least a pinch of that fake powder. what exactly is it with the pionovsky corridor past the american guards secretary of state in his jacket pocket the secret that colin powell took with him to the grave, justifying himself. he often said that nothing was wrong with february 2003. even members of the delegation do not seem to know about this. and the united states is alarmed by diplomats watching the head of the state department when he gets a residence permit less than a dry siberian teaspoon. covered 17 united states in an envelope in the fall of 2001. this forced several hundred people to seek emergency medical attention and killed two postal workers just because of the number of approx

do you believe jay powell?ads: i believe that he managed to do a press conference without messing up things which is positive. i believe he stayed in line with the message and i think there is a large possibility that he will not it that an 12 months. i don't believe they will hike three or four more times. when we see the amount of disinflationary -- disinflation the system, i think inflation will be under control and the balance of risk speaks for moderating rates going into next year. francine: you believe that he wanted to sound dovish or he didn't sound as dovish as the markets interpreted it? mads: i think he sounded dovish and the markets saw through what he said but he cannot change his view as fast as the date it changed recently. the fed is always fast moving as they need to be but they had difficulties catching up with the reality of the disinflationary forces. they have tried to position themselves but keep it openly dovish to hike a few more times. they are little bit behind the curve and i think m

first we just heard from fed chair jay powell he says deflationary progress has begun. markets liking the sound of that first we'll break down his comments and the big market future >> in the meantime microsoft holding their big event focused on a.i ceo satya nadella says it's going to reshape everything in the software space it's already reshaping search for them he joins us in a few minutes to talk about this revolution and we have a great panel assembled to talk about both of these big events steve kovach along with oppenheimer analyst tim horan, kate rooney, herb greenberg and jennifer elias will be joining us to talk about microsoft >> and on the fed and the markets we have hear from bill lee and steven denicholo but before we get to them let's get to our own dom chu to see how the markets are reacting post-powell. >> so a roller coaster that's pretty much what it's been, guys we've seen both sides unchanged so far for the broader s&p 500 we got as low as down 16 points, only to hit highs up 51 as you can see there during fed chair jay powell's session at the econo

pretty key is that speech from jay powell. the ftse 100 gaining .1%, the cac 40 in france gaining eight points, the spanish ibex range bound. we have data from germany, industrial production dropping far faster than had been expected by economists. we'll see how that plays through for germany, pointing to a bit of fragility at the top line around the industrial sector. futures in the u.s. pointing to very modest gains on the back of two days of losses. aussie dollar getting .6%, on the back of that 25 basis point hike, but it was the hawkish commentary from the rba suggesting for their hikes could be coming down the pike that has strengthened aussie dollar, bloomberg dollar index is lower, playing into that as well, you see a bid for u.s. treasuries, five or six basis points lower after a rally in yields, 4.41 of the two-year, brent $82 a barrel, almost 2% gain, wti back above $75 a barrel, surprise decision i the saudis to increase production. it seems there will be solid demand out of asia. francine: let's look at the 20 gro

powell? >> yes, i think so. providing a free service removes prices and barriers to adoption. this is critical. >> yes, i think so. i may come back to that a little bit later. mr.? spalter >> absolutely, yes. in fact, in context, while overall inflation has increased, broadband prices have actually bucked this trend. the average consumer spends $45 a month on broadband, which is actually 14% less between 2021 and 2022. i would also say that it is incredibly important, i agree with miss siefer, and that we have to sustain the affordable connectivity program and make it permanent. >> part to sustain, sustain the program. i'm a follow-up there as well. miss siefer, that previous? question >> resoundingly. as >> another yes or no. do digital equity initiatives like those funding by the digital equity act for digital literacy lower barriers to broadband adoption? miss campbell? >> absolutely. we are not putting broadband for the sake of the broadband. we are trying to change human lives and have p

chair powell said that in jackson hole.unemployment and claims and ask, where's the pain? what does that tell you, 183,000 jobless claims. how much signal is there for you? ellen: companies have been telling us they are going to hoard labor. it took so long to right size payrolls. in this downturn in the labor market there is less jobs to let go. it is more that hiring will slow. you are seeing that and jobless claims are not rising. that makes it more difficult to estimate monthly change in payrolls because we are not letting people go. that is usually the most powerful indicator forecasting monthly reports. but companies are not laying off. we can set tech aside. that was a special case where they over hired during covid but broadly we are not seeing laughs. it comes down to how slow will hiring be echo jonathan: does that make it harder for the fed? ellen: i do not think it makes it more difficult. job switchers have declined. the economic environment is too uncertain for people to keep switching jobs and that is where t

which jay powell likely to say?feel he thinks they're in the same boat and they are saying they will have to raise rates more and so are we. the interesting question will be , number one, jay powell may say we are waiting to see if this is an anomaly. may be overstated by the yearly adjustments and how they calculate the number of people who get jobs, etc.. he may say this is great for the economy. cool final demand, but we will wait and see more data. i wouldn't be surprised if he said that, but he will say this is something that reinforces that they have to do more in the question is how high they will go. rishaad: our global economics and policy editor talking about the 25 basis point move from the australian central bank. just go to tliv , you can get commentary from bloomberg's expert editors. as the focus now on what happens with the fed chair jay powell and others weighing in from the federal reserve's. but skip it -- it's get that in the rest of the first word news with vonnie quinn. vonnie: rafael bosti

. >>> after the break, fed chair powell speaking next hour.vestors looking for any change in tone following friday's very hot jobs report. was it too hot for them to start slowing the pace of rate hikes we'll ask. >>> uber is on deck to report ahead of the bell. reporting 33%. will the results justify the rally? we're back in two. to adapt in the changing world, you could hire a professor of theoretical mathematics. we all know this equation, right? he'd crunched numbers day and night. that's it. to maximize profitability. morning. i have quarterly numbers that are beautiful. and forecast revenue from every corner of your organization. is that important? or you could use workday. the finance hr and planning system that helps cfos make better decisions faster. for a solve problems like a genius world. workday. for a changing world. [music - cover of blondie's “dreaming”] for a solve problems li[music playing]ld. ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪ ♪ i'd build a road in gold just to have some dreaming, ♪

lisa: let's hear what fed powell -- fed chair jay powell says at 12:30 p.m..n will discuss how much he wants to leave into this move we've seen on the front and twelve-month t-bills are now yielding the most going back to 2001. it's a big deal because you were talking 4.8% in terms of what you are getting. park your money and t-bills for 12 months. this changes the equation for things like nonprofitable tech companies as well as high yield that used to yield 5%. the french prime minister and the german economic minister are going to washington, d.c. to talk about the inflation reduction act. this is interesting because it comes ahead of the state of the onion, the state of the union address were president biden will talk about domestic supplies going into infrastructure spending and that discussion is it 9:00 p.m. and that's getting paired downing will talk a lot about taxes on billionaires. i think the made in america stuff is more interesting in light of what europeans are saying and what they're doing in terms of the government right now. jonathan: darrell

it popped 217 points but as powell talked markets began swinging lower as powell finished his chat but reversed course again, back in the green. which of his words moved the markets? investors piled into stocks as powell reiterated disinflationary process has begun a good sector, slowing down of inflation but the feds still has a long way to go and it could be a bumpy process. what could do that? not just the reference to the strong january jobs report meaning the economy is hot and rate hikes continue but powell's morning followed. >> we will react to the data. if we continue the strong labor market reports, higher inflation reports, it may be the case we have to raise it more than expected. liz: now the dow is up 200 points. the overall employment picture remains strong, layoffs in the tech world continue. you heard charles payne look at zoom, look at zoom chairs, a pop of 8%, they announced plans to lay off 1300 employees which equates to 15% of its workforce. zoom's ceo said he is cutting his own salary for the upcoming fiscal year by 98% and foregoing his corporate bonus. another

red after the friday blowout jobs report investors are waiting for more hawkish comments from jay powell tomorrow. >>> one bank is not waiting. goldman sachs is out with a new note over the weekend that should make at least some of the bulls happy. >>> and breaking news. dell adds its name to the list of companies cutting jobs. >>> the search continues for debris after the u.s. shot down a chinese spy balloon over the weekend. what whinechina is saying over it calls an attack. >>> breaking down the wild week in tech. the dust is settling just a bit. it is monday, february 6th, 2023 you are watching "worldwide exchange" here on cnbc >>> good morning i'm frank holland in for brian sullivan let's kick off the week with the stock futures. u.s. stock futures are mostly in the red. you see the dow down looking like it could open up 200 points lower. nasdaq down as well. this after a lower session for stocks on friday following the blowout jobs report and renewed concerns as the fed will look for more room to run to tamp down inflation the bond market now with the 10-year treasury benchmark 3.5

let's talk about powell. maybe powell does not care. just taking the view i'm in the driver's seat. ultimately i've got time on my hands. not getting the message quite right right now. i'm just going to wait. guy: it to remind -- alix: it reminds me about parenting of a child. the parents just decides you go freak out in a corner i will say here. it reminded me a little bit of that yesterday. >> my parenting skills a lot worse than your parenting skills. sitting there will my child had a tantrum was something i never managed to achieve. maybe that's exactly what's happening here. our question of the day and i think the theme is who is driving. how are the markets. let's bring in the crew we had to continue our analysis. the policy correspondent, a bloomberg intelligence's chief u.s. rates strategist. let me come to you first of all on this one. you represent the market here. who is in charge of this narrative. is it the markets or the fed? >> the fed is trying to take the narrative but the market is winning and the market will always win at the end of the day. it's going to price wh

. >> hi, terry powell thank you for taking our questions. rachel from the "washington post". over the last quarter seen a deceleration prices and wages the unemployment rate is minimal said historic loper existed all change review of how much the unemployment rate we need to come up to seeee inflation come down? it is a good thing the disinflation of what we have seen far has not come at the expense of a weaker labor market. i would also say this inflationary process you nasty underway is really at an early stage. what you see is in the good sector you see inflation now coming down because supply chains have been fixed. demand is shiftingem back to services and shortages have been abated. so you see that in the housing services sector. come down assuming new leases continued to be lower for those two sectors you've got a good story. the largest sector i would say so far we see progress. but without any weakening and labor marketin conditions. >> any where it will change of summer? i will say it is gratifying to see the inflationary process now get underway. we get strong labo

jay powell is skilled at not saying what he doesn't want to say.iz: do you get the sense he's mindful because he's afraid of rattling the markets? >> he doesn't want to say anything to upset people or surprise people outside of official context. he misses official briefings, when he doesn't interview like that, that's not where he wants to make news. liz: let's talk inflation, december cpi, 6.5%. it is a really good read of consumer inflation. it was 6.2%. at what point did people realize the fed and powell mean what they say that they like people instead of spending, park it and get a better yield somewhere else, they are going to end soon and pause and cut before the end of the year. >> there surprise the job numbers were so high. we had the opposite here. but that is mystified by the weather that is going to happen. until the fed sees unemployment going up, they won't feel they accomplish the mission. liz: patrick harker said he does not expect they recession. in a couple months, what do you see on the horizon. >> the conventional wisdom, people

you saw what jay powell said yesterday.ally are >> okay. well, these things happen over and over again we're now in the 12th and a half cycle, these cycles, you know how the cycles work. you're 12 1/2 cycles since 1945, 1945 was the new world order, you know, new monetary system. and you know what happens. let me take you through it quickly. you get a funky economy, weakness, and so on, so what we had, of course in 2020, with thd and then also the move from the right to the left. distribution of wealth and so how did you do that government had to send out a bunch of checks. and the federal reserve, where did the government get the money from, the federal reserve lent it, we have an imbalance that poured a lot of money in the system you have the demand, the classic cycle, right stimulation, credit becomes dead and then inflation and tightened monetary policy and then where are we we're now in a classic spot where we have got a relatively high real interest rate, real interest rates went from minus 175 basis points to plus 17