invested, which fed approach is the right one here joining me now is former federal reserve governor randy kroszner. he's now deputy dean at the university of chicago booth school of business and we sort of call this the devil's advocate layout, randy we gave you all the possible reasons to come on and say yeah, the fed should back off here and yet what do you really think they should be doing right now >> they should not back off here the reason they've had the successes that they've had is because they've been on a very clear path to try to rebuild their credibility after saying oh, all this is transitory, it's not going to be with us that long well, you know, a year later we're getting inflation, super high inflation, 8% or 9% that's a little more than just transitory and i think the reason that people think that at least in the longer run that expectations are not going to -- or inflation's not going to rise too much is the fed's taking strong action. if they pivot now, i think all that's lost and it will be like the late '70s when they pivoted and then inflation, inflation expectations explode

jonathan: randy kroszner with the latest reaction to this payrolls report. the headline number, 528k. the median estimate was 250. previousl revised higher. average hourly earnings year-over-year, 5.2%. this is how the market responds to it. good news, bad news for stocks. down .7% on the s&p. nasdaq, .9%. given what we are seeing in the bond market, i can imagine why you're thinking that. up 70 basis points on the two-year. euro-dollar down .6%. dollar strength. 1.0182. you don't go from 300 to 500 k. if you are worried about a job loss recession, you have to kick that view to 23. i wonder what that means for how far fed funds go? larry summers said on wall street week with david westin last week, the idea that we are at neutral with inflation where it is right now, and i would add it where the labor market is right now, to be blunt, it was absurd? lisa: indefensible is the work he used. jonathan: this morning it sounds absurd. tom: governor krasner was being delicate with his former public effort, being delicate about 2.5% moving out to 3%. before we get t