last week, he repeated priority to fight inflation >> you know, we also heard from thomas barkin using the "p" word not pause or pivot my question is how does this shape your investing thesis hearing the hawkish tones from fed officials? what sectors are you bullish on and which are you pivoting away from >> the take away is for investors to remain patient and defensive. to your point in last week's press conference, jay powell used a lot of terms of we have a way to go and it is too premature to talk about a pause. there is a reason the expression don't fight the fed is out there. as far as growth stocks, investors will have to be patient until we get a little bit more clarity from the fed. it might take two or three months of inflation data specifically the inflation data to come down before we get any hint of any pause from the fed >> so you hit on something i want to talk tech. tech stocks have been hit by rising rates and recession especially the mega cap names. they have growth in key areas like the cloud is this the time to buy the dip? >> that's a great point. it depends on you

richmond fed president thomas barkin told bloomberg he favored a slower pace in recognition of past aggressive moves. >> i'm very supportive of a path that is lower, probably longer and potentially higher than where we were. tom: joining us now in studio is gordon shannon, portfolio manager at twentyfour asset management. once again, a coterie of fed officials saying the size of rate hikes may be smaller, and 50 basis points, but the terminal rate is likely to be held there longer than market participants are expecting. why do markets continue to look through this as liquidity and financial conditions ease, yet the markets believe we are at a pivot point? gordon: the euphoria has gone too far. the fed is showing they are worried about that. they are looking at what markets are doing and trying to talk them down. but in bear markets, you get this pressure to get back in. everybody wants to embrace the santa rally into year end, not sure how much it leaves for next year though. francine: if there is a santa rally, it needs to be based on fundamentals. do any data points give you comfort we have

unemployment rose to 3.7% thomas barkin says the central bank is moving into defensive territory. >> real rates are positive across the curve i think you could credited bring say we have our foot on the brake. you think about steering in a different way. you pump the brakes and act a bit more deliberately. i'm ready to do that i think the implication of that is probably a slower rate of pace of rate increases and a longer rate of increases and higher end point >>> now meta is expected to begin layoffs this week according to the report from "the wall street journal." it will impact thousands of employees making it the first large scale head count reduction in the company the shares of meta are up in pre-market trade around 3% after going down 70% this year so far. >>> in other tech news, twitter laid off half of the staff since elon musk purchased the company for $44 billion. the layoffs happened on friday and many employees exprpressed frustration. jack dorsey apologized in a tweet for growing the company too quickly. twitter had 2,000 employees in 2013 and grown to 7,500 last year.

thomas barkin said yesterday the central bank will persist in the efforts to tame inflation and not halt rate hikes prematurely. no matter what disruption occur, that sounds like come hell or high water, this is their plan investors are anticipating a fifth straight interest rate hike for december. the question is 50 or 75 we have seen four in a row very steady. >> i think it is 75. >> i'm a segiel man. >> jeremy? >> yes >> talking about it. let's see what happens i was in for another $10 i went to the bodega i had to get cash first. one of the interesting things is you cannot buy a lottery ticket with a credit card >> why >> state law very good decision they don't want people racking up credit and debt having to payoff the credit card bills $1.9 billion powerball drawing delayed after the lottery association said one state needed additional time to process sales. the association says it had strict security protocols completed before a drawing can occur. told players to hold on to the tickets. the drawing would remain delayed until this morning we all await the big number. i've got a pic

from 57 to 50 fed chair powell was clear they should not mistake lower for slower thomas we'll be talking to thams barkin about this, how high they need to go and why that statement seemed more dovish than the fed chairman, who seemed very hawkish. morgan >> steve, that's the discord answer between the statement and what the fed chair said during the press conference what explains it >> well, i think there's a couple explanations. sometimes, david, over the years, things have been thrown into the statement that are done to kind of mollify and bring some members on board who are not with the current drift of policy that could have been one of those things hey, we do acknowledge this lag thing. will you vote for us sometimes that's the way horse trading is done in the fed another was a nod to the political concerns about not taking in the lag. people on our air, business folks as well as politicians are talking about that what's clear is it was not the thing driving policy all that did was sort of give us a hint that maybe they'll go there 75 to 50, but then powell comes in and goes, you know, maybe that h