volcker was a great man. he did what he had to do.ht now, liz, i don't see the fed with a plan, okay? i have asked this question, i guess like you, what happens when the music stops? what happens when the massive stimulus ends? something's going to happen. and i don't think anybody has a plan. i mean, eventually the fed's going to have to stop buying all the bonds, and eventually -- now, we're talking a couple years down the road -- the zero interest rates are going to go out the window. when that is, i don't know. they say it's not going to be for a couple years. actual real world conditions will dictate. but that is a hard question. actually, it's such a hard question, nobody in washington particularly wants to address it or answer it, liz. liz: yeah. yeah, it's uncomfortable. hey, you're eight minutes away from your show. your guest today, former senior adviser to president -- i'm going to guess this is trump, yep -- kevin hassett, stay tuned, kudlow, 4 p.m. eastern. and i'm going to see you on the show, i get to be a guest. larry:

interest rates. >> basically a forced recession on volcker's part. >> and really the only double-dip recession we've truly had in my lifetime at least. you say something very interesting and it's a subtle point but an important one it seems to me and that is the idea that a lot of the conversation has been on value versus growth. you seem to say that the focus in your stock picking should be on value but look at companies that have value characteristics both within the value sector and within the growth sector would you elaborate on that, tell me what you mean, and give me an example, if you can, i know you don't love to name stocks but just as an example, a stock that would be a growth stock that has value characteristics. >> well, i'm not going to give you a stock example, but i'm going to give you a moment in time example of what i'm talking about with regard to the distinction between the factors or fundamentals of growth in value and the labels or index constituents of growth and value. so the example is you go back to october of '02 so march of 2000 we see the top in the market

but we need ron tough going the real question is will volcker who simply. it commits a crime by land that dominick on which i file a i can understand the necessity. to back. to who we spoke that. could fix on that. but it. but it. goes into the very glowing of the. huge. they had only a god only. shows in the. movie to pretty much full blame. absence of a. squandering those whose faces as we lead is a lead on moon that's the legacy for much of. the politicos for because when put out by you a question on. their list so bush did a tuesday less than a. by local standards only. by low then the lame idea that. for for me feel it's delicious. i would be no division mavis if i think if i had to go nobody there just a little and they fell off or had said to me for my cool. i wouldn't have been bored of. yourself is just something. you have a cause out. of this movement. montalvo. he was the master the figure i assume will get enough of this as a movement almost out of a mess where some. doesn't have that way almost i'm going to have him back when they come about my

paul will need 40 recharge the 1st ever fully electric paul volcker. taxi 40 recharge steps into a 2nd one that is already heavily crowded so what can it offer to stand out from the competitive is what i want to check out today 1st up how does it fare in terms of battery and. we call features 78. 75 you know what they can effectively be used. to. 114. and if you mostly dry in the city you will get even. that is also what i experienced during my drive here. it is. in that segment. that compares favorably with the 262320 kilometers reached by other electric s.u.v.s. or opel. to match that 500 figure you have to move to bigger models like the mercedes q.c. and id for. so what about the out for the car to. one at the front of one of the rear wall so. the car can make the. sounds good on paper even. crazy. speed up 180. it's. the. be able to go faster than 180. that's. speaking of which not so long ago the stereotype of geography teachers cars so if you were going to have a crash there was no better car to be a. safety has been paramount for the swedish com

the 40 recharge of the 1st ever fully electric paul volcker. x c 40 recharge steps into a segment that is already heavily crowded so walking it off to stand out from the compared to what i want to check out today 1st up how does it fare in terms of battery and range. because features 78. 75 you know what they can effectively be used. 114. and if you're mostly dry in the city you will get even. 500. also experienced during my drive here. it is among the top competitors in that segment. that compares favorably with the 262320 kilometers reached by other electric s.u.v.s. or opel. to match that 500 figure you have to move up to bigger models like the mercedes q c. 4. so what about the out for the car to one of the front one of the $200.00 false so. the car can make the best from 0 to 100. 5 seconds sounds good on paper even better. crazy. speedo 180. of course to preserve. it's. the. be able to go foster then 180. that's. speaking of which not so long ago the stereotype of geography teachers cars so if you were going to have a crash there was no b

i wish paul volcker was around right now.ing, taking medicine now or gets worse down the road. neil: you are talking about the former federal reserve chairman paul volcker. liz, a little bit of inflation is always deemed okay, because it gives flexibility to employers raise prices more, have a little bit more cushion. are we in the comfortable inflation camp here, in your eyes? >> right now. the question is, where do we go from here? i think gary is right. this is just a lot of indicators this is just the beginning of it. i think powell's problem, kind of put that under a category is we have so many people unemployed. that is the fed's main mandate, is to move towards full employment. so i don't think he can raise rates here. i do remember back to 2015, 16, when the economy was muddling along and janet yellen began to raise rates. i think it is interesting to see at some point in six months to a year, yes, job additions, job growth becomes pretty good. they take that as an opportunity to start raising rates. i can't imagine a

volcker.ut i think we have to face the fact that interest rates are not, in themselves, a cause of inflation, they are a consequence. we have to face the fact that interest rates are not a cause of inflation, they are a consequence. and when you have, as we have had, double digit inflation back to back for two solid years now, the last time that happened was in world war i. and when you have double-digit inflation there, that way, there is no question that interest rates are going to have to go up and follow that inflation rate. and so the answer to the interest rates is going to be our program of reducing government spending tied to the reduction of the tax rates that we have spoken of to bring down inflation. and you will find that interest rates come down. we do want, from the fed, and would ask for, a moderate policy of money supply increasing relative to legitimate growth. all of these things have to work together. but i -- i don't think if the fed just deliberately raises interest rates

but the critical takeaway -- in 1983, when paul volcker basically released the shackles from the economygrowth surged to a very fast pace over the next couple of years. we had aggressive tax cuts in defense spending. the economy grew at a very robust above-trend pace can but the rate of inflation did not accelerate meaningfully over that period. that is an important lesson we should keep in mind in the current environment for them yes, stimulus is going to cause some blockages and bottlenecks in the economy that will be reflected in higher prices, but until we see workers' wages and wage pressures accelerate, there is going to be a transitory nature to any flare-up in inflation prices. matt: what you expect to see on the dot plot? markets are pricing a rate hike now, 75% chance at the end of 2022. what is the fed going to show us? carl: i think we will see a handful of hawkish dots higher, but the consensus at the center of the committee is going to continue to hold on lower, longer rate path. that will be the point of friction for the markets and the fed with all of the news and data po

if he does not, i don't think he has the guts to pull a volcker and step in decisively like he must docharles: tomorrow we have the big jobs report. are we looking for a beat if we get a beat to be good news or miss to be good news? set the stage for us what we should be rooting for tomorrow? >> well i think, as investors we want to root for great companies, great ceos and growth, no matter what the jobs figures shows. the problem the market is back to the mean, which is what is good for the economy is bad for the markets because of inflation. personally as an investor, i am going to look at that and realize many of those companies are probably in pretty good shape. reopening is a good thing. getting back to work is a good thing. i hope the numbers will be interpreted for what they are and they are good. charles: right. using that thing we used to call logic [laughter]. >> it is old school. doesn't apply anymore. charles: ultimately i hope everyone does, i really do. so here's the thing, obviously the markets are down a lot, especially the nasdaq composite but if you really look at it

it was by one of my colleagues at bloomberg citing paul volcker in the 1970's and saying there was a a real determination to tame inflation. and then asking questions about the average inflation targeting regime suggests a break with the past, a really different perspective on inflation from here. max: i am not particularly convinced about a new inflation regime. let's not forget my what we are seeing now, it's almost like people are pretending that only now the fed, only now central banks are trying to get inflation higher. that has been something they have been trying for a decade. that is something they have actually been trying since the financial crisis and desperately so. still, they failed. the verbal guidance and pretending that that is sort of the sudden change, that's not going to be enough. some of the inflation we are going to see now in the second quarter, that is mostly covid related, mostly base effect related. very closely related to base effect and energy prices, food prices. there is a risk that there is higher and stickier inflation, particularly in emerging market

this is not the arthur burns fed, not the volcker fed, and not the ben bernanke fed. i truly believe the fed is very credible, that they are going to stay the course. i love governor brainard talking about is aleut patients. -- resolute -- about resolute patience. but this is uncharted territory. guy: the more the fed signals it is happy to be behind the curve, that it is going to try to reach the far corners of the labor market, the more the market is going to worry about inflation. mike mckee just had a chart showing where the market is pricing now, but the lines are all projecting upwards. how does the fed avoid the trap of signaling that it wants to be behind the curve, signaling that it wants to help the labor market, and finding a bond market that is surging ahead? how does it avoid that situation? if the bond market gets too out of whack, it is going to force the fed into the situation. claudia: the fed is doing its job right now. it is not behind the curve. we have 9.5 million fewer workers than before the pandemic. the bond markets should really want us to ge

, and that brought with it the prices paid gauge. 75.9, the highest reading since 1980, when paul volcker was starting to throw the economy into recession to break the back of inflation. so jay powell's quote today is probably told you so. we got some numbers a moment ago of leading economic indicators, up 0.2%. a little less than the 0.3% forecast, but it still suggests the economy is advancing. kailey: and we know that powell said the economy is going to advance further, growth targets revised up, and plate and -- revised up, unemployment going to go lower, yet still no hikes in 2023. do you buy that? michael: two or three years from now, it is really hard to know what is happening in the economy , specifically since this is all pandemic influenced and we have no models for this, so they are just sort of guessing, and the market has been guessing to this point that if you have fast growth, you're going to get inflation. powell was very strongly saying yesterday that we don't think that is true because we had zero rates for seven years after the great financial crisis, and we did not get