the fed is preparing to do something for the first time since the great financial crisis roger ferguson is here with what we can expect. >>> shares of ride-hailing giant, what company executives told analysts that didn't really sit too well. >>> on the other hand, talk about a covid comeback shares of airbnb popping after surpassing 100 million bookings for the first time ever. much more on those results coming up ahead. >>> plus, elon musk proposing a new fee structure for some twitter users when he takes the company private. who will like ly be impacted >>> the european union steps up actions looking to ban all oil imports from that country. the full story straight ahead on this wednesday, may the 4th be with you, 2022 you're watching "worldwide exchange" right here on cnbc >>> good morning i'm dominic chu in for brian sullivan who's reporting from out in california. we'll hear from brian in just a few minutes, but first let's kick things off with a check on the markets and your money right now because stock futures are in the green. the dow high bier 72 points, the s&p 500 by 10 and

big bounce, it's time to lighten up for those who are overexposed. >> mohammed, we spoke with roger fergusonchair of the federal reserve. we asked him how the fed's going to do be looking at market declines if you're an vester and the nasdaq is down, this does not feel orderly from the fed's perspective, this is still orderly these are not technical issues that are hammering things that might raise their concerns do you think there's any chance that would slow the rate hikes or they would say, that's okay, this is expected, and inflation is euro bigger issue we have to tackle right now not a big selloff in the market? >> for the market, orderly means are my stocks going up for the fed, orderly meaning market functioning, and so far on the whole, market functioning has been okay. i say on the whole because those who look very closely as how the treasury market operates have noted outside moves on almost no moves, so there are pockets of liquidity stress as long as they remain small, the fed is not going to whoa about asset prices as much as they worry about controlling inflation. they need to

i want to play this sound from roger ferguson on this morning >> probably of recession in 2023 is certainly very, very high because of the challenges of trying to get this roaring inflation under control and having so few tools to do it so little ability to control the supply side of the economy >> all right so that's the take of a former fed vice chair saying high, high probability of a recession next year in light of that, tim, where should the markets be at this point? >> we're almost waiting for when getting bad data is actually an opportunity to buy stocks and so when bad news is good news and what fed ferguson said is you have a case where you probably don't have the fed backing you and have that fed put and in some sense, the fed is actually ready to push the markets around and possibliy they're willing to push the market. if you have a neutral rate higher than 250, this is a case where i think the fed is not afraid to push the economy around a bit here. that's where all the fear comes from it's a very different fed. >> unlikely that the s&p 500 bottoms out down 15% in what seems to

continued interest rate hikes could push the economy into a recession, former fed vice chair roger fergusonsaid today. a recession at this stage is quote inevitable, and there are some signs inflation may be leveling off, at least right here in the bay area, one sign is the price of used vehicles. prices began dropping in february and continue to do so but still remain above pre spike prices. there are also indications supply chain bottlenecks and delays are easing shipping rates from shanghai to the west coast of the united states are down about 28% over last year's peak prices. that's also true for europe. to the east coast. prices and delivery times are beginning to shorten the reason that we could be close to peak inflation is because it really has been goods inflation that has been driving the extraordinary pickup inflate and inflation. americans are now buying fewer goods overall, which reduces the demand that increases inflation on wall street stocks did rise across the board. after a major sell off. last week, the dow gained 84 points. the nasdaq was up more than 200. and the s and

the fed is preparing to do something for the first time since the great financial crisis roger ferguson is here with what we can expect. >>> shares of ride-hailing giant, what company executives told analysts that didn't really sit too well. >>> on the other hand, talk about a covid comeback shares of airb

and they need to tighten and quell inflation, and i brelieve they'll do it. >> roger ferguson joinedt time yesterday, and he said he think it's inevitable that we're a heading to a recession. are you in that same camp? >> not yet, but i do think we're going to have a slowdown the first numbers is not likely to be repeated in the second half, but we'll see. i'm here in sunny morocco, marrakech, where everything looks absolutely beautiful and the dollar is strong here that the people that come up to new the streets are not asking for local currency anymore they're asking for u.s. dollars, feverishly >> we saw the central bank of australia raise rate overnight for the first time in 11 years because inflation is obviously a global problem do you think the dollar's going to keep getting stronger you've got the bank of england meeting on frei friday, too. >> where do people go in size when you're afraid united states. we are, as i've said many times, not just the -- we are secretariat given everybody else so yes, i've been saying this for quite some time. when the dxy got up to 103.46, whe

let bring in roger ferguson.tiaa and former vice chairman of the federal reserve. the idea that ceos are feeling worse now is kind of hard to believe. this is worst times we're facing now than anything through the pandemic >> i think what's going on, becky, is just a building up of all these pressures, inflation, obviously, and you have talked about that with respect to announcement that just came out. you talked about the fact that some major companies are rethinking when they will return to the office because of the pandemic i think what's happening is there's a building up of pressures, and the ceos are saying every time you look at it, things are becoming more and more difficult to manage through. by the way, that reading below 50 is consistent with slowing for sure, and a number of different met ribs so i think we have to watch this pretty closely when we look back historically, we have seen readings below 40 are when we start to get into much more challenging recessionary kind of territory so right now, the

former vice chair roger ferguson on "squawk" saying in his view the likelihood of recession in part becausef supply is very high take a listen. >> i think a recession is at this stage almost inevitable because they don't control supply, and we've seen how volatile supply can be with the shutdown in china, which is brutal and the probability of a recession is, i think, unfortunately very, very high. >> so do you think it's about that, do you think it's about the fed or as said on friday, the market pricing in the force of tactical nukes? >> there's an oligarch who spoke out on instagram, immediately they were stripped i just think that the united states is not going to let this happen i think the united states will not allow putin to stay in because he's not important belgium has more exports italy has a bigger economy it's going to stop, and it's going to stop right here the moment that we give them the planes, and if we don't give them the planes, maybe we give them more drones they can use every single drone, they've got the switchblade 600, which can take out a tank. you send them a thou

. >> we were talking yesterday with roger ferguson about that the fed's been a big purchaser of thosert selling some of those mbss, what do you think the impact will be >> the rates are already going up, but the private markets should come back in. people are looking for good investments, and the housing market is still strong there's a lot of demand out there. remember, you have the millennial generation coming in, better job growth, better income growth, so people able to buy, and that i would see as a good investment so it's going to be up to more private investors to come in should the fed pull back but we know it is already having a negative impact on rates, keeping them higher. >> diana, thank you. >>> still to come, gary van of t vainer chuck joins us stock right now off by 25% "squawk box" will be right back. 's “dreaming”] [music playing] ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪ ♪ i'd build a road in gold just to have some dreaming, ♪ ♪ dreaming is free. ♪ accenture, let there be change. this thing, it's making me get an ice bath again. wha

i noticed yesterday roger ferguson basically said he thought a recession with the most likely outcomer dad like bill dudley formerly the new york fed has now turned very hawkish. the fed is behind the curve, et cetera. i will say this, the faster that they act, the more aggressively that they act now, tomorrow and this year, the faster they will curb inflation. the faster that they curb inflation, the better off the economy is going to be in the medium and longer run, people forget nixon and the crazy world of monetary theory. price stability is absolutely essential to economic growth as low on employment. the faster the fed can get it back, the price stability, the faster the economy is going to recover. it is a tall order. inflation rate is somewhere around 8%. the target is to. you tell me, it is not going to be easy. >> the era of free money is running over, we have a question, how expensive money is going to get and what timeframe and what that does to the economy. i think it be hard to avoid some kind of recession. i want to talk to you about the amazon warehouse in staten islan

technicals with katie stockton we will dig into the jay powell announcement with former fed vice chair roger ferguson and glenn fogel and david rubenstein and judy shelton >>> we have ceo dara ayosrowshahi st tuned you are watching "squawk box" on cnbc >> announcer: this cnbc program is sponsored by baird. visit bairddifference.com. as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.™ thanks, paul. my fellow xfinity customers! the biggest week in entertainment is here! watchathon week presented by xfinity rewards! with free access to stranger things from netflix, the boys from prime video, starz, hbo max, and peacock. and we'll make this a national holida