so i am of course -- who is not an admirer of paul voelker? i knew him just a little bit and have tremendous admiration for him. i would phrase it this way. he had the courage to do what he thought was the right thing. that is what it was. it was not any particular thing, it was that he always did what he thought was the right thing. if you read his last autobiography, that really comes through. that is the test, it is not if we will do one particular thing. i would say we do see restoring price stability as absolutely essential for the country in coming years. without price stability, the economy does not work for anybody, really. so it is really essential, particularly for the labor market. if you look at the last cycle we had a very -- the longest expansion cycle in our recorded history. in the last two, three years, you had the benefits of this tight labor market going to people in the lower quartile. racial income gaps were coming down, wage gaps. so it is a really great thing, we would all love to get back to that place. but to get back

. >> finally, byron, everyone is sort of invoking voelker, and that part of the '70s.over at b of a, by the time voelker was made chair, inflation had become deeply embedded, and there's still room this time for the fed to prevent that from becomic as exacerbated as it was then. >> i thvoelker was determined t break inflation. he didn't care whether we went into a recession or not. he knew that the country couldn't tolerate inflation at its then sounding levels i feel powell will be as courageous as that, i think -- i think inflation whether not be as vittant as it was in the '70s, but it is a problem. so we are going to see higher rates. >> byron, i appreciate you helping us start the hour. looking forward to next time we talk. >>> two other big movers are lyft and uber, both sinks this morning. deirdre bosa has more on their quarter. dee, what is so interesting about this, is they were two, in many ways, different quarters for these companies. >> they were taken as an whole -- it was different, was lyft really, the shares started to tank after the company said it was

i'm old enough to remember voelker and i'm old enough to remember interest rates in double-digit levelseople can't believe that can happen. it can. i don't think it will and i don't think it has to, but that's the key reason the fed has to move quickly. alix: yeah i remember my parents mortgage rate at 15% for 30 years. >> and that was a good rate. [laughter] alix: right, it was a good rate. quantitative easing starting, which is different, then buying bonds, for example, what is the effect going to be? what are you looking at? >> the fed is going to do this in a gentle way. they will say that as these treasuries and mortgage-backed securities mature, they will just not continue to buy more new ones to keep up the, keep up the balance sheet where it was, letting it slowly run off. i think the markets are pretty well prepared for it, i think it will be a gentle beginning. at some point they may decide to move more quickly but at some point they will be fairly gentle and i don't think it is going to have any direct impact. to some extent, markets already anticipated that volatility but i

guy: ok but at some point in that scenario you get to the voelker moment and i wonder if this presidentng about that. you have got the midterms coming up, there needs to be a mechanism to message the american people that inflation is going to come down, we've got this and if we haven't got this is the feds fault. but after the midterms how was the president thinking about inflation? after the midterms, assuming that he is ready to make a decision on whether he runs or doesn't run into years, do you think he lets the fed off the leash? i'm wondering what the political calculus here is. not for the midterms but for the next general election. is the fact going to be allowed to deliver a tough message on inflation in order to get the economy ready for two years time rather than a few months time. >> let me first say first that i think markets will hear nothing new out of powell today for one practical reason. if he says anything new today at all it look like biden leaned on him to do it so there is a great impetus, reason not to do that. post midterms, there are three calculations for bikin

biden has to step in and yes, the same thing that president carter did in the office with chairman voelkersed the interest rate up to 18%. adults have to enter the ring and we can have lollipops and candy but we have to make hard decisions and the biden administration to save the economy. >> kevin: hard decisions but they don't seem to be working and to prepare 2020 was an anomalous sort of year. let me ask you this, erin and for 30 seconds we have left them i think the border is a major story that people are focusing on and in particular when you see the failures and the rise in numbers, what cometh in think in this administration do to get a hold of this, or are they dead in the water especially as we look at the midterms? fickle welcome at joe biden and kamala harris have completely objected and allowed it to be open for cartels. at this point joe biden and kamala harris are accountable for the human trafficking, the drug smuggling, the debt, the destruction at the southern border. they put their heads in the sand and will not address the issue, not addressed in a problem going on at th

i served in open market operations and was a secretary to paul voelker, who is president at the new york fed. so i have had three government assignments. it seems to me if you do nothing else in government, you should promote policies that would generate growth, prosperity, jobs. that is our job. i am a free-market capitalist. i believe in free enterprise capitalism. i think it is the surest path to growth. when i was in the cnbc days and had my show there for many years, i use to open up the show every night by saying free-market capitalism is the best path to prosperity. i set it for many years. i believe that. i still believe that. coming back to your questions, essentially, you need the lowest possible tax rates, the least possible government intervention -- think of it as minimal regulations, and you need a sound currency, which i call king dollar. that was my phrase years ago. if you break that, if you move to a policy regime of high tax rates, excessive government intervention and regulation and a cheap dollar, a debased dollar, depreciated dollar, you will find yourself with high

i served in open market operations and was a secretary to paul voelker, who is president at the new york fed. so i have had three government assignments. it seems to me if you do nothing else in government, you should promote policies that would generate growth, prosperity, jobs. that is our job. i am a free-market capitalist. i believe in free enterprise capitalism. i think it is the surest path to growth. when i was in the cnbc days and had my show there for many years, i use to open up the show every night by saying free-market capitalism is the best path to prosperity. i set it for many years. i believe that. i still believe that. coming back to your questions, essentially, you need the lowest possible tax rates, the least possible government intervention -- think of it as minimal regulations, and you need a sound currency, which i call king dollar. that was my phrase years ago. if you break that, if you move to a policy regime of high tax rates, excessive government intervention and regulation and a cheap dollar, a debased dollar, depreciated dollar, you will find yourself with high

last significant bout we had with inflation back in the 1970s, there is no question the fed and paul voelker in laundering that trend. one of the big macrotrends that have a big impact is the fall of the wall and really ushering in a period of decades of globalization that really brought prices down all over the world. and a variety of things are going on in the macro that are reversing those trends i'm not certain that this trend will continue over the next couple decades but at the moment, we're certainly seeing more nationalism, to think about our energy independence, commodity independence, food supply chains and all of that has an impact to some degree on prices and so, we're in the early stages of seeing veteran adjust behavior and supply chains and all that has an impact on us. >> what about the quote capital? goldman sachs benefitted as well, does that change at all? it shifts a little bit in a world where there is more geopolitical uncertainty, the risk premiums that people demand capital around the world change and adjust a bit i think those changes are sus him. whether they're lon