parse the difference of burns and volker and what it means for powell. alan: what you're seeing from powell and the federal reserve err on the side of burns letting inflation getting out of control. there were warning signs last year that inflation was on the rise and team transitory didn't believe that. now you've had a shift from november of last year. i think that it will be extremely difficult for the federal reserve to err on the easy side. to make the same mistake twice would damage credibility. tom: do they have the ability or skill set to guess the middle point between burns and volker? alan: not easily. that is almost no fault of the fed. where is the middle point? as lisa said, you're trying to guide unemployment up. normally if you guide unemployment up by more than 5% over 12 months you head into a recession. almost certainly they do have two drive unemployment up by more than .5%. lisa: you ask a good question. is the current 10 year yield and equity market prices consistent with sufficient demand recession to see core inflation heading back

i like what was set over the weekend, we did not have a volker style shock, it's about taking controllet's get to oliver kettlewell. a very good morning to you. the barbarians are literally at the gate in the bond market. the most volatile since 2008. is there much worse to come? let's set the stage, good morning p oliver: good morning. -- good morning. oliver: perhaps not much worse but some pain for the bond market. i've been coming on your show the last few weeks, talking about peak inflation but i have to admit, i have to introduce a new p-word, that is plateaued. inflation has not peaked but hopefully it has plateaued. if i take bpi numbers from last week, they are in line with forecasts and a little higher than prior. if inflation edges up a little higher over summer, where you have a counter of higher interest rates and slowing growth, that is not necessarily a bad thing for long yields, although short end yields will probably feel more pain. manus: ok, we will live in a world of plateau. if i look at what some have said over the weekend and i look -- and i put this question ou

. >> here's somebody who's tried to tell congress and the public he will be the next volker if he needshe greatest public servient of the era is it because you don't think the data justifies him being a hawk or his personality? >> i think a combination we have hot inflation data we have tobate for june 30th to the pce. i'm going to call him a chicken hawk the misstep the fed made was last year or the last $2 trillion in the balance sheet. i go in that he's a chicken hawk and he has to really flap his hawkish wings right here he's a dove. >> jeff killburg thank you kristima as well bringing us our picks today. session highs a moment ago this is pretty poetic. 3.456. looks like we ticked above that level. we're talking decade highs and it's the move since the start of the year 1.66% back in january. still ahead boeing shares are are down 40% this year down 52% from their highs and down 15% in just the week. inventory build up has been a head wind. imagine having to use the wrong tool at your job. (upbeat music) - let's get into the numbers. - why would a company do that? especially with h

could this be, for to what extent could this be, chairman powell's volker moment? megan: the difference between what we are facing now in the 1970's is this time we have the 1970's as historical comparison. that put the fear of god in every central banker. i think the fed is really serious about getting on top of inflation. what worried the fed was inflation expectations jumping before the last fomc meeting. the fed wants to keep those anchored and will do whatever it needs to do in order to achieve that. i think that is the real prize the fed has its eyes on, maintaining anchored inflation expectations. in the 1970's they became deanchored. we are not there yet in the u.s. economy. jon: you talked about the potentially tough choices employers will increasingly have to make throughout this economic cycle. you have zeroed in on the health of the u.s. consumer, you have talked about the fact, in some cases, they had some financial firepower to deal with this. what is your current assessment of the u.s. consumer? megan: i think the u.s. consumer in aggregate is in goo

paul volker could do that a getaway with it. if powell raises it to 8% he would not have enough money to pay social security. it is not realistic. guest: your point is well taken. the size of the national debt today, a small increase in interest rates creates a massive interest cost. every 1% increase in rates produces 100 billion to the national debt. host: brownsburg, indiana, this is kevin. caller: all due respect sir, you are the reason why someone like me is considered independent. everyone blame something on the opposite party. tell me something bad your party is done. i do agree with you that teachers should be armed. i will pick a soft target if i am going to do something. i really don't understand why they call it the boyfriend bill. it is a slap in the face to men. men get abused too. host: that term is called the boyfriend loophoole. guest: it's not about parties is about policies the work and policies that don't work. what donald trump did as a republican and what bill and clinton did as a democrat. he ended the era

volker was, to bring inflation under control no matter what? mr. powell: i would never try to compare myself to paul volcker, but we are strongly committed to restoring price stability. it is the thing we need so we can get back to the kind of labor market we all want. sen. shelby: reaching the standard that volker left at the fed would be a high reach, but one that anybody there should try to get there. thank you. sen. teller: you point out the court consumption expenditures minus gas, food, and rent were 4.9% and even slightly declined from the previous point. that leaves the real culprits -- gas, food, and rent -- first, the issue of gas price inflation it is a function of oil, correct? mr. powell: the refining spread as well. sen. reed: and that has been exacerbated by the ukraine invasion. we and the europeans have deliberately cut off accessing russian supplies, and that matters for inflation. and with hydrocarbons, it is a cartel that sets the price. is that accurate? a cartel that sets the price of oil worldwide? mr. powell: globally, that

fed felt the need to move fast here to take a page out of the playbook of alan greenspan and paul volker with a very big interest rate increase, and they signaled that more aggressive steps are to come because that official said they are, quote, strongly committed to getting inflation back down to 2%. and given that it's nowhere near 2% right now, that does imply more big rate increases to come. as far as why this is happening, i think it's important to think about the economy as almost like a car on a highway, and the fed is the driver. when it needs to speed the car up, it will cut interest rates to stimulate demand. right now we have the opposite situation. it's going dangerously fast, and so the fed needs to slow things down. it's actually slamming the brakes on the economy. the problem here, victor, for the fed is if they don't do enough inflation can go out of control. if they do too much, they could end up slowing the economy right into a recession. >> rahel solomon, business reporter is here with me as well. listen, a month ago 75 basis points was not on the table, not being cons

5th of 1980 -- >> i'm aware of what volker did.nusual period we've had for the last -- >> we had 17 hikes that's pa lot of hikes in 2000 the greenspan/intebernanke fias. aig turned out with a lot of houses >> they sold a lot of insurance on -- they sold an enormous amount of -- some things that all went bad, yes. >> i'm saying that it does matter to me that corporate balance sheets are much belttter corporate balance sheets of the cruise lines, theirs are not better >> no. >> i'm going to posit something because somebody better posit something. i'll posit okay i'm not positive but i'll posit. what should rally today, colgate, bristol-myers, clorox, merck, and pfizer. because if we go into recession, those companies do better, they'll be able to lay off people if they have to, but able to get employees for much less money, and that's what works that's what we should be looking at >> and those employees will come to the office. >> they will if they're told >> that could be a better thing. >> itch three friends who are sick right now

i'm joined now by kurt volker, an american diplomat who served as the us ambassador to nato.on, nato is also looking at what is going on in the pacific and has its eyes on the growing influence in china. how is this going to change the strategy is the organisation moves forward? there is a lot of news coming out of the summit on exactly those questions. first off, nato is recognising that russia is a serious threat to nato countries still, and that nato has not done enough to prepare itself to defend its allies if needed and to deter such aggression. so adding more forces, getting up to 300,000, making sure they are deployed for their forward, bringing in these new members, finland and sweden — all of them will reinforce nato because my capabilities. in addition, nato is looking longer—range on the road —— nato's capabilities. spyware, nato's capabilities. spywa re, anything like the fact that several nations were invited this year as an indicator that there is a desire on nato's part to engage with these discussions with like—minded countries. discussions with like-minded co

the hawkishness. 10 days ago there was the key question, is jay powell going to be like the pual volker, he seems to be like him in the short-term. but we disagree that you should hike rates as aggressively in the second half of the year. we expect another environment it inflation -- if inflation slows and the yield curve inverts, the pressure on that that will not be so high. -- the fed will not be so high. tom: i love that, paul volcker in the short term. taking what we heard about the assessment of the trajectory from the fed, and oil is under pressure again today, are we starting to see the saints -- see signs of demand destruction? eddie: the market is pricing the possibility. u.s. consumers are driving less. it is very hard to drive less when people need to go to work and someone. but in the work from home environment people have the option. i am not going to fill up the tank quite as often. that question about whether we see a volckeresque powell in the short-term, the bigger question is if the economy is ready to stomach a volcker in the short-term. and we are seeing it in the o

volker had to do what he did because things were out of control.'re are cr or in the committee. the horse got out of the barn, and now they have to bring it back and do so convincingly. part of what they're doing here, if you look at what ms. brainard said yesterday or what ms. semest messter said yesterday you signal by what you say, because what you say has power when you're with the federal reserve. i think it's a combination of two. one is action, delivering on those actions, making clear what you're willing to do we've never seen this before where you announce a couple of basis 50 points ahead of time. or the chairman saying here's what we're going to do at the next meeting they're giving you as much advanced notice as possible and saying what they're saying, they're reaffirming that they mean it about inflation. so it may be by having signaled this strong a policy that they may not have to follow through as much if indeed the market the and economy react to their words. so it's a two-pronged -- go ahead. >> you don't want to relitigate the pa

. -- the summer of volker, no fun until the fed is done. tom: it will be data-dependent. with an 8.3% statistic, what if we overshoot that, come in underneath? research shows us it is an ambivalence. it is like we just have to wait. you think -- jonathan: we start to see price targets come in. we will check in with lori calvasina in a couple minutes. lisa: pretty much across the board, perhaps we have come across people pessimism. the idea of my ozone of morgan stanley saying we will probably start to see company start to remove some of the fuzzy forecast and downgrade even further what their profits are likely to be, and that will lead to the next leg lower, but this is not a a wholesale freak out we saw a couple weeks ago. jonathan: do you want good news? quiet period for the fed started. lisa: does it really matter? i do wonder. i was driving this weekend and saw it cost about $100 to fill up your gas tank, somewhere between $70 to $100 to fill up, and this will have a material effect regardless of what the fed does. inflation has a real downward shift growth even with

a lot of the parallels will be made to 1994, this is a similar narrative we heard from volker.his is the 1970's in a mini version repeat. guy: absolutely. that is where the markets need to go next. we had a terrible week. why? asset prices, a series of central bank's being led by the fed, indicating they are prepared to tolerate a recession. if that is the cost for getting inflation under control. the lesser of two evils is a short-term recession rather than a long-term impact we have had, could have from higher levels of inflation. stocks have taken a battering. in theory, you would expect stocks to have a bounce. the question is, if powell is targeting 2% inflation, is any bounce we see going to be sustainable? that is our question of the day, our stocks do a sustainable bounce? abigail doolittle, romain, let's start with you. stocks have gone down, they are due about. the question here, the operative word, sustainable. romaine: the short answer is, no. if you are going by historical measures, historical metrics, valuation, everything would tell you, from looking at the s&p 5

tom: a volker-esque fed, that is what we got with those high interest rates leading to a recession. worth remembering that. our chief edge economics correspondent in hong kong. the bank of england set to deliver a fifth straight rate hike today as officials are expected to stick to a steady path amid global chaos. our economy reporter lizzy burden is outside the boe, how will the central bank balance the recent economic data with the need to tackle inflation? >> we are not expecting the fireworks we saw the fed or the ecb, that's partly because the bank of england started tightening sooner than its major peers. if you put that data into two columns, for the hawks you have inflation at 9% that's swallowing wage growth. rishi sunak has announced 15 billion pounds of extra fiscal support since the last bank of england decision, and even he admits that is going to be inflationary. for the doubts, the economy unexpectedly contracted in april. you can see consumer confidence is low. the housing market is starting to turn. it is a recession in all but name in the u.k., that means our econo

lisa: whether he will be the new volker of 2022 is the distinction, how much has the fed committed to getting inflation back down to 2%, but eminently by the end of next year versus five or 10 years out? how much of the urgency is about getting inflation numbers and check shows and they are creeping higher over the next decade or so? tom: we see dollar resiliency, but in the bond market -- i do not have to do a data check because it has not moved. there is a three-day stasis here in fixed income. kailey: the 10 year down by about seven basis points as we speak, and it is that fleeing to safe havens because of the growth fears. while you see the dollar stain ying up, yen is getting a little bit of the haven bid back in. tom: kailey leinz is so far out in front of me, i do not even need to come in. you mentioned safe haven and the first thing you look at is euros. i have the euro-swiss at 1.02. lisa: and this is also because the euro has been not supported by an ecb that has let inflation get far ahead of monetary policy. at what point do the central banks try for a stronger currency? w

ambassador kurt volker is standing by. live from the state department with this one. >> today the price of gasoline in this country is double what it was when president biden was sworn in. one of the reasons he is making this trip to saudi arabia after a trip to israel later this month. now as a presidential candidate he said the following about saudi arabia. >> president biden: khashoggi was murdered and dismembered and i believe in the order of the crown prince. we were going to make them pay the price and make them in fact the pariah that they are. there is very little social redeeming value of the -- in the present government in saudi arabia. they have to be held accountable. >> the state department and c.i.a. have held saudi crown prince mbs responsible for the murder of saudi journalist khashoggi who biden referenced. with the high price of gasoline and refusal to kick start more domestic production in the united states the white house applauding a move by saudi arabia to pump more oil. the united states welcomes the

chart -- calls it is the basic idea that the scale of move that will be needed by powell is like volkerker in 1980. we have to think about a blue scale and then pushing against the animal spirits. matt: jonathan has been a very optimistic person as long as i have known him. i will say that one of the most interesting things that i learned today is talking to ed ludlow, those longshoremen are going to strike for higher wages. yesterday mohammed was saying if you think we are in a red-hot economy and i am paraphrasing, watch out for wage increases and if they get that it will keep driving up the inflation spiral. lisa: to end the -- tom: to end the doubt -- the hour equities deteriorating, i love doing the dow futures. s&p 500 -60 and the nasdaq, let me get the percentage move because ferro had to be medicated over the dow quote. -1.8%. the vic is at a 28 level. matt: this is after a 2% drop yesterday. we already had -- markets were anticipating that and i do not believe that the selloff yesterday was off of christine lagarde and the ecb in the united states of america, they were watching

>> well stephanie, you are not old enough to remember the volker time, the recession is, coming the recession is coming. this is exactly the situation that jimmy carter was in. basically wanting to make the corrections that needed to be made to curtail inflation but you risk the recession, you risk pouring a lot of cold water on a economy. so, this is a tough field for the president. unfortunately, if there is a mistake, denying that and inflation is going to be a problem over six months ago, it's probably something that the administration wishes wasn't on their record. and you know, and i, know a lot of what is driving all of these costs are high energy costs. those are so difficult when you are looking at whether it is electrical rates going up dramatically, especially when the heat is at 100 or whether it's, in fact, gas prices, or natural gas prices, we're at a very high energy economy, cost economy, right now. that's going to make it very difficult to curtail inflation. >> okay, but then, heidi, president biden is planning to go to saudi arabia to address oil and gas next month. there ar

but inflation is at a 40-year high, stephanie, tom, where was paul volker 40 years ago on interest rates? he wasn't on interest rates. today we're at 2%. weren't we in the mid teens? isn't that the ultimate concern, to truly snuff out inflation, not only do you need gas prices at $5 a gallon but we need interest rates we haven't seen since the early 80s. >> we've all become addicted to super, super low interest rates. during the trump administration it made absolute sense to raise interest rates but we didn't and one of the reasons you saw the stock market doing so well is because rates are at zero. when rates are at zero, there is no where else to invest than the stock market. so the stock market was artificially going up. what we're experiencing right now, though it doesn't feel good, is a normal market. we can't have 0% rates and a stock market that goes in one direction, up. >> you talk about 0% rates. largely the fed had cut rates down to zero, at the same time flooded the market with money because it was trying to stimulate the economy during the pandemic. we also had a lot of free

that we can get back to the kind of labor market that we all want. >> reaching the standard that volker left at the fed would be a higher each but one that anybody there should try to get their, wouldn't? >> yes. >> thank you, mister chairman. >> thank you, senator shelby. i'll exercise my time now. mister chairman, you point out in your testimony that the core personal consumption expenditures minus gas, food and rand, 4.9%. even slightly declined from the previous report. so that leaves the real culprits, gas, food and rent. first, the issue of gas face inflation is a global phenomenon, is that correct? >> yes, gas prices are a function of oil prices to a significant extent. and then the refining spread as well. >> and that's had been exasperated by the ukraine invasion. we've deliberately and europeans of deliberately cut off access russian supplies and that's -- inflation. and the other problem also with hydrocarbons, it's a cartel that says the price. is that accurate? >> what's the cartel? >> it's a cartel that says the place? >> globally. that cartel has a very major impact on th

ask jimmy carter who lost his presidency because paul volker went in and did what paul volker had toraised rates almost 20%. and he crushed inflation. of course, also crushed jimmy carter. but the economy was saved. and ronald reagan began to enjoy the -- you know, the lower interest rates. and lower inflation. and here we are again. >> and probably too late at this point, but the president started to take that action likely this week. half a point, some people saying three quarters of the point going up that high to raise the rate. you're right, as the president has to be seen ago doing something. but not a lot in reality, you can go back and look at system muss packages around covid and everything in hindsight, but, boy, there's a slew of things driving this out of control. >> a slew of things, one thing you can look at. you can look at the last covid relief package. but, of course, you know, i'm fine with independent economists doing that. i'm not fine with capitol hill doing that, when they ran the biggest deficits and largest debt. the biggest budgets, the biggest spending progr

we can speak now to kurt volker, former us ambassador to nato. 60 years of deterrent have obviously failedbeen no attack on any november. and a member countries are secure and more a more countries are suing tojoin nato in order to be assured of that protection. what nato has not done is prevent russia from attacking other countries in europe are not that members and particularly georgia and ukraine. and now this war in ukraine is particularly the biggest conflict that europe has seen since world war ii. here, individual nato allies are doing a great deal to help ukrainians defend themselves but nato is not doing much as an alliance but rather through the efforts of individual allies. and here again i would submit that nato should be doing more. it is essential that putin not be allowed to seize territory through aggression ukraine and then threaten other countries. this is a critical moment but i think that an omission of defence and deterrence is successful. mr; of defence and deterrence is successful.— of defence and deterrence is successful. g , of defence and deterrence is successful.

until volker started to raise rates dramatically how much can the white house do to act against inflationrelying more on mr. powell >> i think this president has been very clear that, number one, he is going to give the fed the independence to operate, and that is not something we should take for granted you're talking about history that is not something that has been the norm in the past. presidents have sought to politicize fed decision making this president did something unique sat in the oval office, with the chairman of the federal reserve, i will not do that that's number one. we also know that making things more affordable for families right now, and reducing the federal deficit, both of those things would be complementary to what the fed is trying to accomplish so fiscal policy does have a role to play here, and it's actually pretty straightforward. if we did tax reform right now that reduced the deficit, that would be complimentary to what fed is doing on both economics and also, turns out what's good economic policy often ends up being good politics, there's no reason we can't r

. >> yeah, what the fed needs to do is raise interest rates above inflation, like paul volker did january 20, 1981, the prime rate was 21.5%, inflation 15, 16%. this was -- you have to make it less attractive to borrow money and that's what they have got to do in this, and they just are not doing it. they are trying to do it step-by-step, and that's just not the way to solve it. raise those interest rates right now and get this under control. >> sandra: that seems to be the plan. your target for gas prices, do they keep going higher? $6 as a national average? >> look, it's hard because we are going to get relief on international prices but demand goes up. look, they are going to remain an issue, they are not going away. high prices are not going away any time soon, unfortunately. >> sandra: it's a big problem, we will keep watching it. thank you both for joining us. >> john: sandra, it's not just oil and gas and inflation, america's shortage of baby formula far from over. why the latest move from the white house simply is not enough. >> sandra: the country still awaiting a decision by the

when paul volker was chairman and inherited a situation like this which came off of a commodity squeezeas well, he raised interest rates a full percentage point every month. and he took them all away in the end to 17 or 18%. and frankly, that is the kind of response we have to have now. maybe 17 or 18%, because he was dealing with 12% certainly 10%. at the same time i would like our viewers to consider when was the last time that someone from the national economic council or council of economic advisers who had the ear of the president said something other than b putin and monopolists -- vladimir putin and monopolists. there are different problems going on. one is the transition to electric vehicles and the lack of batteries and the other one is climate change and the agricultural market. we will be having problems in the market without those problems, but when you go around trying to blame people, people you do not like you will have problems. so the republicans are in, the unions are the problem. when the democrats are in, big business is a problem. maybe the problem is right behind u

if we don't see any relief in that i, kind of think we're going to be calling up the ghost of paul volkerthinking they got a raise interest rate a whole lot and then it would be quite likely we had a recession. >> austin, let me get you on one more thing before i let you go. on the front page of the washington post this morning, there's a story about how people are pulling back on spending. they're pulling back on haircuts, salon appointments, manicures, pedicures, buying cars, all sorts of things. and that spending is down not just on goods but on services. talk a little bit about how long, if you can predict the future, how long do you think consumers are going to have to pare back in order to deal with the inflation that's shooing up their wage increases? >> you know, partly, he never asked gonna condiments for prediction of the future. there are still arguing about trying to predict things that already happened. but if you think about the consumer side, it's important to remember that some major component of that slow down and spending, that's the point of what's the fed is doing. the

still ahead on the show today, florida congressman greg stubey, kurt volker and rob smith the 10:00 houruture. so you don't lose sight of the big picture, even when you're focused on what's happening right now. and thinkorswim® is right there with you. .. s and a passionate trader community sharing strategies right on the platform. because we take trading as seriously as you do. thinkorswim® by td ameritrade every year we try to exercise more, to be more social, to just relax. and eating healthy every single meal? if only it was this easy for us. if you used shipgo this whole thing wouldn't be a thing. yeah, dad! i don't want to deal with this. oh, you brought your luggage to the airport. that's adorable. with shipgo shipping your luggage before you fly you'll never have to wait around here again. like ever. that can't be comfortable though. shipgo.com the smart, fast, easy way to travel. stuart: is it james bond -- james brown? i feel good. good morning. 10:00 eastern straight to the money. 329 points, nice gain for the s&p, not bad for the nasdaq, plenty of green on the market this mor

you know that february 2018 is right before my eyes kurt volker.mean that you won't have them? yes? e in the donbass, ukraine guaranteed us to apply, then ukraine begins to accept them in the donbass america so. well, she turned away. well, well, they apply, well, what can you do, so that we went through all this. i think we just need officially declare that the ukrainian troops will move back at a distance of range. these are all sorts of salvo artillery fire . you put on 100 km. so, keep in mind not less than 100 km from the border of russia no, and there will be no lugansk people's republics. in general, such ukrainian troops were put on 300 by 500 km. well, what to do? excuse me, in the end , you are going to demilitarize ukraine, if you sit down correctly in english, what to do, but i would add only because i said it very clearly. i am i do not believe. is it necessary to declare it is necessary to simply realize that it was so? yes, because we have never been famous for a statement asking for actions first, then a statement, but i would add t

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when paul volker was chairman and inherited a situation like this which came off of a commodity squeezeas well, he raised interest rates a full percentage point every month. and he took them all away in the end to 17 or 18%. and frankly, that is the kind of response we have to have now. maybe 17 or 18%, because he was dealing with 12% certainly 10%. at the same time i would like our viewers to consider when was the last time that someone from the national economic council or council of economic advisers who had the ear of the president said something other than b putin and monopolists -- vladimir putin and monopolists. there are different problems going on. one is the transition to electric vehicles and the lack of batteries and the other one is climate change and the agricultural market. we will be having problems in the market without those problems, but when you go around trying to blame people, people you do not like you will have problems. so the republicans are in, the unions are the problem. when the democrats are in, big business is a problem. maybe the problem is right behind u

we did experience 10% unemployment following the volker shock. in this market to get to 10% unemployment would require about black unemployment is usually double that of white unemployment, correct? >> yes, , it tends to move it twice the speed of up and down but certainly moving up. >> when the former treasury secretary says he wants 10% unemployment overall, he's also saying we need black unemployment of nearly, or implies that. but i do think despite the tool that you don't have, congress does have tools as well. would you say that the following actions granted in the scope of congress could be deployed to impact inflation using antitrust laws against companies that are raising prices using their market power? >> sorry, , i didn't have the lt part. >> would using antitrust laws against companies that are raising their prices have an impact on inflation? >> anti-what? >> antitrust. >> antitrust laws, okay. sorry. >> noo worries. with that have an inflationary impact? >> it's hard to say really. >> with subjecting those companies to windfall pro

that's what paul volker did back in the early 1980s. >> steve: it didn't work very well. >> it gave us this time? the president has no answer for inflation. is he blaming everybody including of all people the shipping companies last week. he has no plan. he has no answer. we have inflation roaring. our standard of living is falling. we are in a financial crisis like it or not. >> ainsley: this is very scary. larry summers, the form everywhere treasury secretary, he said that he predicts recession within the next two years. i think we have that soundbite. listen to this, stuart. >> when inflation is as high as it is right now, unemployment is as low as it is right now. it's almost always been followed within two years by inflation. by recession. i think the optimists were wrong a year ago in saying we would have no inflation. and i think they are wrong now if anyone is highly confident that we are going to avoid recession. >> steve: and recession is defined as two quarters of back-to-back negative growth. remember it was just a year ago when inflation was starting to take off and they s

1977 when i first started out as a young fmer and slid in the carter years and through chairman volker's tightening of the money supply. this was devastating to our neighbors and u.s. economy and left a profound impact how i view fiscal and monetary policy. congress should be focused on the issues that currently weigh on the economy and aim to strengthen the well-being of the american people. i oppose h.r. 2543. and i yield back. the speaker pro tempore: the gentleman yields back the balance of his time the gentleman from texas is recognized. mr. green: i reserve. the speaker pro tempore: the gentleman from north carolina is recognized. mr. mchenry: i yield five minutes to a great leader on the financial services committee, the speaker pro tempore: scrarkd mr. hill: i thank t speaker and i do rise in opposition to h.r.543 but i do want to thank my friendrom houston, texas and colleagues who worked on many of the bills that are in the package today and it's shame that that package was not put together in such a way that we could be here in a bipartisan visit about the ones that we actuall

we did experience 10% unemployment following the volker shock. in this market to get to 10% unemployment would require about 10.5 billion additional people out of work. historically we know that black unemployment is usually double that of white unemployment, correct? >> yes, it tends to move at twice the speed both up and down. certainly, moving up. >> so, when the former treasury secretary says he wants 10% unemployment overall, he is also saying that we need black unemployment at nearly 20%. or it implies that. chair powell, i do think that despite the tools that you do not have, congress does have tools as well. would you say that the following actions granted in the scope of congress could be deployed to impact inflation using antitrust laws against companies that are raising prices using their market power? >> sorry, i did not hear the last part. >> when using antitrust laws against companies that are raising their prices have an impact on inflation? >> anti what? >> anti trust laws, okay, sorry. >> no worries. would that have an inflationa

a proud american company founded in 1865 in the farming community of caught over, iowa, with the volker goal of providing markets for farmers. and from that day, and we've known that if produces unsuccessful our company would be. thank you for the opportunity to address members of this committee and i look forward to your questions. >> thank you, mister maclennan. and now, mr. schellpeper, please begin when you are ready. >> good after noon, trevor scott, ranking member -- andrew members of. duty my name is tim schellpeper and have been part of the u.s. beef and for the industry dating back to 40 years, getting back to my first income out of college in 1987. i joined gps in 2000 1790 game ceo of jbs usa this past january. i'm also proud fourth generation farmer. my wife of 31 years and i operate at the farm that i grew up on which by great-grandfather richly settled in nebraska in 1887. violence sits in the heart of cattle country surrounded by farms feedlots many of which supply cattle to jbs. i'm both offender the customer to my neighbor. jbs usa produces in pilgrim, the second larges