we think the underlying dynamics in the labor market remain pretty robust. no doubt the pace of job growth is going to decelerate some because it has been so high for a while, but you would have to really shake the labor market, you know, push the unemployment rate up .2%, .3%, .4%. if inflation remains broad and it is still annualize and at something like 3% to 4% in the second half of the year, they are going to have to accept some gross -- some growth slowed down to get that down to something more like 2% to 3%. i don't think they are targeting 2%. i think they will be happy if inflation is below 3% in 2023, but it needs to be on that run rate to get some comfort. jonathan: we are having this conversation on a day when yields are surging higher again, approaching their high of the year, and the equity markets are down again. this year has been terrible -- this month has been terrible for equities. on the nasdaq, we are down as much on a monthly basis since 2008. kathy, is the fed put dead or alive -- the equities put dead or alive? kathy: i think it is de

being higher i still think the purchase market should be reasonably strong there's good underlying supply/demand dynamicsink you'll see people wanting to move house and get resituated over the summer move season. so we would expect the purchase market to be reasonably okay part of the question is, there's now excess capacity, which was built up in the industry to handle the re-fi wave, so we need to find some of that capacity come out so margins expand so we'll see how it plays out, but again, i think there's limited had mortgage come way off the highs in 2020, and i think capital markets will help pick up the slack over the balance of the year. >> think the big overarching question for bank investors, small and large right now, is we finally got the higher rates that they were hoping for, and clearly that's helping your bottom line and you're very rate sensitive so that's all good, except with the fed going so fast now and so big on rates, there are worries about a recession. or a sharper economic slowdown, and ultimately, that hurts your business where do you stand on the outlook and what that will do

i think there is an underlying reasoning that we don't want to jump too early in case those estimates come down. francine: how do you see the external dynamicsfrom what is happening with ukraine, and filtering through to inflation, if wage growth goes up. if china continues with the zero covert policy, how does that impact the world and especially europe? anna: it will be in the supply bottlenecks. if we look at the inflation last year, there is a high contribution from the foreign goats component lovely driven by supply chain bottlenecks. it was not just from asia, it was a global picture. but of course, given the zero covert policy in china, there is a risk. we are already seeing some first signs of that in the survey indicators in the last set after pmi that supply bottlenecks are starting to come back to some extent. francine: we have a chart, i know you are not an equity analyst, but with european stocks seeing a 35% discount to u.s. stocks on the p/e ratio, this chart gives an indication of the dynamics. and uncertainty of the european union, -- economy because of the proximity. what happens if there is a full on oil embargo, how diffi