good wednesday morning. thanks for joining us this morning i hoping a good wednesday i am maria bartiromo. it is wednesday, april 10, 8:00 a.m. on the east coast, time for hot topic of the hour president biden appearing to struggle through interview with univision last dmiet holding no cards slurred must believed, through it a lot of answers slurred what he said about economic growth. >> i hope the legislation is that we kept my word that i sent -- running was to help change the life of ordinary people. reduced prospect of war, and because of the -- >> across the country, that don't feel that economic growth that job creation reflecting the paychecks. >> that i was able to find 310-billion-dollar million dollars available hadn't been used i run out of runway to

provide for more aid without aid of the -- um -- of the -- congress. >> president biden there, lee said he wanted to change alives i think has done that not a good way. >> hopefully -- see that play out americans active in electoral process to have your voice heard as opposed to sitting you the amazing how many don't vote i think his legacy one of the worst presidents in country history as watching clip painful to hear him trying to complete a thought complete a sentence i think that is part of his legacy, you know in comments talking about trying to reduce the prospect of war because of vietnam, and his foreign policy legacy defined by images of a yaufl of

afghanistan, post october 7 in israel. we aren't reducing prospect of war there is heightened tensions with russia, china, north korea iran, so as far as legacy go he is the one giving an answer what you think your legacy will be what do you want your legacy to be not talking about anything negative ever. i think the rest of us, we've already firmly developed opinions what this presidency means for this country, in a way that has us fearful if he has four more years. maria: feels like the botched withdrawal from afghanistan sparked potential war sparked our adversaries to get on the march look at china carol. >> when you think about his legacy, it is going to be one of destroying the middle and working class you've seen historic inflation likes we haven't seen in ho plus years personal balance sheet saving

rate down, the totality household department government said double historic averages in time of quote/unquote expansion, 125% debt to gdp we are on trajectory of going off a true fiscal cliff, he is going to be remembered for all of that. maria: unbelievable, it is hard to watch the commander in chief, stumble mumble nobody wants to see that that is a reality we are watching so is communist china vladimir putin, adversaries across the world. >> upseting to hear you are absolutely right because sends the wrong signal not world is a listened to that two things stood out at me, number one, fatigue number two already done, the fatigue speaks for itself we listened to that difficulty finishing sentences, but the other i think is very subtle said i think my legacy is -- not i

think my legacy will be. right? if you don't think you are done if you think you are going to work another four more years you have time to figure out the legacy would you say my legacy will be. he instead said i think my legacy is, to me a subtle mindset thing says in his mind already done thinking legacy not good. >> particularly watching the legacy every day inflation or foreign affairs what policy could joe biden say he implemented that was good for america ? can you think of any? >> i really can't i mean not trying to be facetious or partisan when you think energy the border when you think about what is going on economically there is nothing that he can do why i think the strategy maria has been to hide him not have him do interviews like this because it really does expose all of the weaknesses, as well as put

weakness on that stage across the globe, and make the united states look weak in the process. maria: i mean, a young person could say okay. i like the idea that he is going to forgive my student loan debt, are it is someone looking for positive young person might say that. >> he botched that. >> when you are continuing the supreme court said it was unconstitutional so he is blowing off the supreme court. then having the nerve to turn around say it is trump that is detriment to democracy. >> what a you can haveer somebody wants to be president next four years level of creativity a vision no matter how good you think country is any given moment you have the plan for the future you can't wait to have an opportunity to be able to do your part. and as adam pointed out instead comes across like fatigue, he is done. maria: i want to bring in man at white house president biden

is claiming that he is looking into executive action at the border watch this. >> we're -- whether or not i have that power i would have power legacy when border has over 500,000 people, 5,000 people day trying to cross-border can't manage it is slow enough there's no guarantee that i have that power all by myself without legislation. maria: no guarantee peter doocy at white house with more peter breaking news. president biden likely to sign o executive order would limit illegal border crossings by the end of the month according to report, also detailing new night in west wing among biden staffers don't want lock the border if way trump did they

think inhumane biden staffers see they are getting clobbered by republicans on immigration the border. it seems according to this report, that the executive order would be similar to what they floated as a trial balloon never happened it would limit who can claim asylum once they encounter border patrol at point of entry we have no reason to think, that this is definitely going to happen except for this report, because they have floated this they have floated this we don't know if something where the political folks here want to -- want to put out the word that they are concerned about this issue, but something they are looking into they are looking into they are looking into down the line because in this interview last night president biden talking about this piece of legislation bipartisan senate legislation as the best remedy for fixing problems at the border the problem with that still is, it is not like

officially dead but never going to become law. so i think keep talking about it as a -- as the best way to fix this huge thing they admit is a problem now but not realistic that is ever going to make it to his desk looking at you executive orders, we will see, we will see where they get with that, it is -- you know this is the president who knows that some boulder policy promotions are going to land him in court didn't stop him when he wanted to float put forward a student loan forgiveness plan that most was struck down by courts, it is unclear why he has not wanted to color outside on border but such a political problem going to try the end of this months according to axios -- >> six months before election maybe that is why peter you ask most obvious questions to

karine jean-pierre my question is president biden claims examining what kind of power he mass to change things at the border does that mean he regrets vrng donald trump's security at the border when he walked in white house the first two weeks. >> if he does i don't thip you will hear him express regret or apologize that is number one rule winning election don't apologize for anything keep moving forward sounds like they are going to at least try to create the impression considering something new to address the border but, you know, donald trump now they want border number one policy issue of this election, it is going to have to be huge that really make a big difference that biden in his allies at the white house can do, if tlefr going to essentially force republicans to move on to something else. maria: well there is inflation. and 40-year high inflation, and the cost of goods, of course, also quite important to voters, peter we are watching your work of of

course, we appreciate your time this morning. thank you, sir. >> thanks for having me. >> peter doocy at the white house getting started more on border crisis with alabama senator tub vile after this break you are watching "mornings with maria" live on fox stay with us. ♪ . ♪ .

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support supports . >> i know this is right call to delay it because, chuck schumer wants this gone today. so does the president they know this issue is a losing issue for them they know most americans know that the border is a complete tragedy a disaster, and to not be able to hear, the facts presented to the senate need maximum

pressure campaign applied to people like jon tester, sherrod brown others need he courage to say hear facts american public deserves transparency. >> that was texas congressman mayorkas impeachment manager august pleuger on this program this morning citing the house decision to delay spending mayorkas impeachment articles to the senate urging mike johnson to do it next week preventing chuck schumer from tabling the trial roger martial says if schumer does not let this trial go on republicans will respond. >> tabling this impeachment articles is a nuclear option, in our estimation this is a nuclear option, it will necessitate some type of nuclear retaliations. >> joining me alabama senator

tub vile member of verts affairs health education labor pensions committee thanks so much for being here can you explain to us what is going on, there in the senate, did chuck schumer say he is going to table will this thing this weekend. >> well, will first of all, 11157 days ago destruction country started by globalists changed everything donald trump did at border working he doesn't need more laws yes chuck schumer wants to get this to thursday or friday everybody knows week you don't want to stay up here if you don't have to they wanted a very short timetable in terms of which to bring tribal to a vote they will vote against we want to move to it monday got leadership to make a call to the house, mike johnson they moved to it monday to send articles over we will have a week next week to talk about this go after these people that have absolutely destroyed our country, and by design, it is not just mayorkas. who. should be impeached here this should be, all the

democrats in terms of the congress the senate, joe biden-kamala harris everybody that had a hand in this they all had a hand in it we have been screaming, yelling from top of our lungs, maria, for the last 11715 days you got to stop this o protect american people they refuse to do it they are all guilty of crimes begins america. >> i want to understand you chuck schumer more, he is the leading jewish member in the senate from new york. he has got to see what wide-open border has done to new york. we've got robberies, you know, attacks, all over the place. now we have to worry that we will get punched in the face walking on the street in new york, never mind getting robbed perhaps getting our houses taken over, what is chuck schumer seeing that the rest of you all are not? >> they see power, maria. they see power in votes coming across the border every day, i think going to backfire on

them that is all they care about if you look what they've done in terms confident debts in this country from fentanyl to murders to rapes home trafficking a tragedy people should be in jail not impeached something going to continue all o way through election american people going to remember this going to go to ballot boxes i don't care if democrats a lot of people did democratic party saying that is enough of these people there are not democrats they are progressives left socialists globe ailts want to change to something else we are going to fight every day we need that trial next week, not just one little vote but a trial, we need people brought to the floor, and testify on what they did what they did wrong because it is absolutely against everything that this country believes? >> what is that trial going to get you? you still gonna have same resistance from democrats even president biden is misleading american people all day today, and yesterday at least saying

he is examining what power he has we all know the commander in chief has the power, of the pen and the executive order we all know that he has more than 930 executive orders overturned when he walked into weathers 2021 including all donald trump's security at the border. >> if you look at this maria, mayorkas if we did have a trial he would have to testify, on what he did how he did it he looked plea in the face three or four times in the last three years, said our border is closed, lying straight to your face i don't know where the guy is either all on border with all globalist stuff or stupid, because following party line, he is going down they are going to push him in front of the bus, chuck schumer, all the administration over in white house they are going to throw him to the wolves then going to say it was all his fault we didn't have anything to do with this you can see this coming but all guilty of

this because globalists want no borders but want power all about the power, and power of the purse here in washington, d.c.,. >> even with threats to national security even with people getting murdered. >> they could care less they could care less you can look at this laken riley situation joe biden, you know he should have that should have been first phone call made this guy could care less again, they've got democrats have a puppet in white house can control, they knew can control him when first put him in he never campaigned, you know, are 81 million votes give mebreak this guy didn't get 81 million votes but that passed let's get somebody in there like donald trump that will secure our border get back to doing what we should do for american people because there are paying bills but nobody is listening to them. >> senate majority swhip dick durbin predicting mayorkas trial won't take long here is what he said. >>. >> i think quickly, i talked

to some republicans candidly tell me don't take it very seriously. >> dick durbin saying your team is not taking it seriously republicans not going to vote for it. >> we are the ones been not border you can name one hand, how many democrats have been to the border last 3 1/2 years, they could care less they are going to the party line you've been there i've seen you there we've all been down there, i come from eagle pass on airplane coming back to washington, d.c., sitting beside illegals in covid out of control from day one american people starting to look at this going case causing a problem in our community in alabama huge problems with people on illustrates looking for jobs, russianing education hospitalization, housing, having to pay for food koofrts, billions of dollars this group doesn't care they want power all in it for power dick durbin chuck schumer up there, too long made toing to home give it for somebody that really cares about the country

instead of carrying about the purse. >> with lee zeldin is there anything you want to say about new york or chuck schumer. >> he just got elected to six-year term doesn't feel pressure comlint imminent are there that's that expressing concern they get. >> it nobody up here cares on democrat side want to get reelected that is it all they care about. >> tommy tuberville in d.c. we'll be right back. . did you ever worry we wouldn't get to enjoy this? [jeff laughs maniacally] (inner monologue) seriously, i'm on the green and all i can think about is all the green i'm spending on 3 kids in college. with empower, i get all of my financial questions answered. so i don't have to worry. empower. what's next.

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it's not a lock, i know a lock. so how can we undo the damage? we could all unsubscribe and switch to xfinity. their connection is unreal. and we could all un-experience this whole session. okay, that's uncalled for. maria: welcome back checks the market is higher going into the cpi we have 3 1/2 minutes away the market is krurjt pricing in a 58% chances of interest rate cut at fed june meeting, federal reserve president bostic xoeg expectations for one rate cut this year open to changing view if economic outcome changes as well, earlier in the program i will spoke with grant interest rate observer founder editor jim grant what he said about his expectations. >> i think the fed really, really wants to cut it wants to cut, one thing the leveraged portion, indebted portion of this economy going to gag, much higher interest rates or indeed in trouble

with perpetuation of drifting rates. >> meanwhile, the march cpi out any moment, the number will be out in two and a half minutes, the expectations call for gain 3/10 of a percent month-over-month, 3.4% gain year-over-year joining me right now macromavens stephanie pomboy, great to see you things very as much for being here this is the number that everybody is waiting for. jim grant made basically two observations the federal reserve want to cut partly because political alignment with flats but, also, he said that he expects inflation to remain elevated longer term, so, that they really shouldn't cut your expectations? >> well, i feel like in great company with jim i agree one hundred percent i think fed is caught between a rock and hard place so worried about the leveraged sectors of the economy that are under pressure, we are seeing that in form of corporate

bankruptcy consumer delinquencies on credit cards the inflation has condo hotter than fed would like kind of giving them very little runway to cut rates. so, i think it is a lit of a predicament this morning importants number who knows i guess you know suggested as well, maybe possibly on sort of side whatever the print is this morning though i think the longer term path for inflation is sticky going to be really hard to see that number continue to move o towards % headline cpi, so you know, 2%, they are stuck between a rock and hard place. maria: look, part of the issue, is commodities you look at oil xrks pretty much under lines everything about inflation transparence kort everything everywhere going to add to cpi, oil is down today, for a second straight it is

now actually up turned up 85 dollars 86 cents a barrel oil up 18% year-to-date we could get a sort of cpi as you just being speculated jim grant speculated but at themselves levels does that mean next month is another open question the month after another o open question? >> yeah, absolutely. i mean the oil is number one you know, inflationary catalyst through pipeline even in fed's core measures that concluded food and energy eventual higher energy prices seep through, as you know, energy goes into everything box of cereal grocery store, by the time you purchase it is probably 50% of that price involved energy, from the -- you know the plastic bag it is in, the transportation to the store whatever. so that is the real problem for the fed is the higher energy prices, hard to see

where they are going to come down any time given green energy policies, and geopolitical unrest all over the world. gold at pressure highs to lauren simonetti, markets down 160 on dow industrials number hit tape to you. lauren: for march hotter month-over-month came in .4% that is the increase when the expectation was for .3%, so that is a month-over-month number. for march the annual number agency expected look. even hotter than expected we did expect it to increase, 3.5%. that reflects higher energy cost expectation was 3.4%, came in at 3.5% for consumer prices, year-over-year, in february it was 3.2% there is inflation story at the core level when you take out energy this is when you take out food

we had a decline of surprised decline down 0.4%, from february to march, and core that was hotter 3.8% on annual basis. maria: markets reacting, in a fast way the dow industrials you do now down 228 points nasdaq down 218 points, as you were reporting hotter than expected cpi joining the conversation iran sides macroeconomic managing partner barry knapp former ceo heretage fellow andy pozner, barry knapp reaction to the cpi. >> well take june, june rate cut off the table, and i have been arguing that 10-year note treasury market in general was not in the right place we are likely to get another round of

you curve bear steepening like from august through october, going to be exceedingly did i for the treasury to place 519 billion coupon securities for sale next two quarters. in order to clear the market, likely to have to see rates, 10-year rates at least 4 3/4 maybe back to 5, hard to imagine how equity market just shrugs that off, the initial reaction in august was, well, driven by stronger growth and that is playing something avenue roll here but in reality i think we will probably get significant move higher in rates equity market will probably, take a breather here. >> carol we've got a market selling off dow industrials down 307 right now your reaction. >> yeah. i -- i mean i think this is obviously, a challenging,

before the number the fed really is between a rock and a hard place. because, obviously, with these numbers, you know it seems that it would be very difficult to cut or be more accommodative to barry's point all deductibility needs to be refinanced issued we don't have the appetite at concurrent rates to be able to absorb all of that so i think that really puts them in a tough position, and i think given fiscal situation, regardless what the fed does we're going to end up with sticky inflation longer. >> core number up 3.8% that is a big number. >> year-over-year no question, that is a tenth higher than we thought 3.8% ugly i will admit you know they optimist at table four ways cpi is reported all four numbers a tenth higher than we thought that is not great but i would like to offer, a counter balancing point to that, that

is ultimately 4 different ways we measure inflation consumer prices we all see, what we're talking about this morning, but actually if you look at pce what the fed likes to use it is 2.5%, if you look at ppi, producer prices, 2.2% if you look at gdp price index that is actually 1.6 below fed 2 target i know cpi it is a what we have to deal with but if you look at inflation, it is in totality the average all four indicators, is about 2.4%, that is not that much higher than fed target, so it is obvious, they knee-jerk reaction would be down as having this conversation other people doing same may not be quite as bad as headlines would appear. >> sounds like would you be buying into the sell-off dow industrials down 345 you want to buy it. >> yes. >> get to lauren details, peeling back onion what can you tell us. lauren: i get numbers hot in my ear, the number for the

month-over-month core was.4%. not down .4% i want to correct that. maria: i knew up 4/10 i don't think we had -- lauren: show you where this is if you look at annual basis, in energy up 2.1% annually car insurance up 22.2% shelter upside .7% annually seeing shelter, gas i mean what you need to live, you need to go places that is contributing 50, 60% increase in the cp this is a really important point, because andy the essentials the essentials, to live rate food fuel shelter. the things that are most problematic here. >> if you are running a business you are looking at commodities being way up, since beginning of the year, energy praises way up as you just noticed labor prices

labor running over 4%, people saying -- down a little bit i would reminded everybody during obama administration we never even hit 3% labor growth, so if you are running a business you are looking at labor costs going up, commodity costs energy costs up, thinked month in a row doing these segments, that the expectations have understated what inflation actually ended up being, these are scary numbers if i were in fed would not be looking for a cut, so we will see what they want to do. maria: lee zeldin how do you see it issues driving voters right now. >> seeing if increased pressure on fed to cut from a political standpoint with november fast approaching year-over-year analysis amongst voters to polls in november as far as, where it is from a few years ago, and also, these are numbers out to entire country, and inside of

particular communities of the state if looking at state of michigan, numbers are higher ensued of the detroit housing good grocery stores that impacts as well is something that can have an effect when people go to vote, yes looking at a nationwide number but hitting certain, certain areas harder than others. maria: you mentioned whether or not federal reserve going to get political in environment commodities at record highs where we've economy that shows growth in jobs, and questions about whether or not federal reserve should be cutting rates at all, some people think the fed is going to do i it nay because they align with democrats, jim grant with me a few minutes ago watch this. >> i believe, that the fed itself regardless of potential secretary determine for donald trump a clear and present danger to our june that is why -- >> politically, very much aligned with democratic party.

maria: what about that stephanie pomboy does that work into thinking in terms of where the fed goes now? >> well, one thing for sure. donald trump is a clear present danger to jay powell, because always already said will not reappoint jay powell, so -- >> interview in february said i am not going to reappoint him. >> exactly, so, i mean jim grant is correct, i don't know if applies to fed more broadly i wouldn't understatement entire to cut rates in advance of defection would underscore something we said average american out you there doesn't give a crap, if i can say that what cpi print is they are living real inflation story totally different i would add to adam's four measures of inflation four measures everyone on wall street hangs on but with all due i think missed most important

barometer of inflation gold gold is ultimately the best barometer of actually inflation in the economy up 14 1/2% year-to-date just in the last four months, it is telling you that inflation isn't decelerating it is accelerating and going to accelerator further, i mean gold is giving you an early warning, that the inflation pressures which presumably will come, from an easier money tripolicy are in pipeline that is how i read, inflation picture. maria: you are writing that you said over and over again you want gold. >> faifrl congratulations on gold trade you absolutely wrote that wrong or you are got it right i got it wrong, you got a leg up on me there let me throw this angle at you. and that is actually something jim grant was talking to maria about earlier, curiously the

gold stocks if you look at newmont barrett gold two largest gold mineers in the world trading almost at five-year lows, i interpret as market saying doesn't believe price of gold is sustainable, so we have this -- you are absolutely right up 14, 15% year-to-date, but if investors aren't willing to put money where mouth is buy gold because they don't think gold is sustainable does that mean the spike in gold is just temporary? >> well, the presumption that is gold stocks lead i think your analyze one hundred percent correct, the gold minors reflect lack of confidence that this move in gold is real and sustainable. i happen to think that western investors are missing it because frankly not buying gold bullion either if you look at flows in tlb, settles this move built on purchases by foreign central banks

foreigner investors not western demand that is driving the move in gold. so we sat out entire move bullion and miners i think you that is yet to come when we wake up there is a massive ddollarization going on vertically in anticipation of fed political or apolitical pivot this year only going to further hassen exodus from the dollar. >> i think big backing off what stephanie was saying about gold there is concern about underlying fiscal stability of the united states we saw bank of america research come out a week or two ago, said if fed does not lower rates we continue spending the way we're spending we are going to see interest compensates hit by december and you analyze rate 1.6 trillion dollars largest budget item unsustainable, so in addition to any sort of political pressure they may

have from the election, there is a real pressure, in terms of the fiscal stability of the united states exactly why i think you are seeing gold rise the way it has. >> we saw dow go down 500 just shy of that now lee you were in congress walking halls with everybody this does not a priority that 36 trillion dollars in debt right now? it should be more priority a priority for too few, and a debate right now as we head towards november isn't really about what kind of bold solutions candidates have to bring us under control, this isn't front and center we tear talk an a lot of other important issues what we don't have substantive discussion to bring down spend iffing that isn't happening right now once every four years with presidential campaigns you are not having the will of congress come january of 2025, to suddenly tackle this then i

don't see us on trajectory where a year from now, we are going to be relieved that -- you know, a process going into election ended up resulting in drastic reformers physically. >> last few years you have to believe all spending, really sparked this four-year high inflation, at worst possible time, as debt was already a problem. and only getting worse, andyure in business tell us howure viewing things in terms of backdrop in face of inflation. >> well that is very scarier if you are a business you got to be worried about this carol is absolutely right does put a ceiling how much flexibility fed has bids would like interest rates go up in one respect,. >> go? >> o commodity costs energy labor under control you can't get them under control iff is

reducing interest rates, it will accelerate the problem if in bits you are watching all of this federal reserve closely particularly commodity dependent business probably most bids a dangerous time that. also, lee got it ripoliticians have to get focused on this issue if country doesn't get forced this report is irrelevant if not focused on this problem facing much, much bigger problems next two to three to four years i don't know that any president can solve if any president could probably would be president trump i don't know if any president could, a huge problem. maria: you don't want to think of fed as political, but that is what people expect, that the federal reserve is going to cut rates, because jay powell knows joe biden wants it that way we heard jim grant say that the fed is aligned with democrats i asked president trump about this specifically in february when he joined this program, he was

very clear, about his feelings about jay powell. watch this. >> we're waiting on that waiting on that. we will get that to you mom tar loo stephanie if we see a prosecutor politicized how long does it play out, in terms of actual impacting individuals out there? >> well you know my sense is that the neatest solution to not cut rates but immediately pause balance sheet runoff switch to reupping qe that is the neatest solution for them again to gold i think what is sniffing out a balance sheet a permanent fixture, the fed is essentially an adjunct to the

treasury, it will be the fed's job, to monetize all of this debt that we're issuing, for those monetary policy stands will be the dollar, as always it is invisible the average american doesn't notice it that is the way they prefer to solve this problem, and mechanism of inflating debt away to monetize, that so my focus has been continues to be on the balance sheet, much more so than fed funds rate i think all the action will take place on the balance she's. >> easying will come. >> yes hotter inflation numbers can't pull fed funds lever but can do backdoor quantitative easing. >> funding programs won't call it quantitative easing because there is a stigma to that they will find a way to rexan

balance sheet like silicon valley bank, using various programs will come up with a way to monetize this debt. maria: president trump on jay powell. >> jay powell the fed chairman talking about a soft landing do you believe we will see a soft landing. >> well, i think he is going to do something, to probably help democrats, yeah. i think if he lowers interest rates. but you have the potential of having massive inflation again, because the middle east could drive up the price of energy he is not able to do anything, but looks to me like trying to lower interest rates for the sake of maybe -- getting people elected i don't know. maria: you think he is political going to cut rates -- >> i do i think he is political yeah. maria: would you reappoint jay powell? >> no, i wouldn't do that. >> because? >> he missed inflation. >> did miss he did miss no, i wouldn't be -- >> barry knapp your take on backdrop here, what jay powell needs to do.

you know, we saw that jobs number the other day that everybody was celebrating 300 jobs created in march then started really zeroing in realized much job creation was part time, a lot of jobs given to foreign born not american citizens, so can we look at the jobs picture being all that great right now? >> the -- the fed is in general has gotten comfort offer idea a big supply-side expansion of labor force because of the surge in immigration, so this is why their payoff or reaction function skewed towards stealing this idea well we have plenty of workers so, not really creating an inflationary impulse, the minute we see weakness we can cut but, the inflation numbers this morning just totally destroyed there a large part because we haven't seen talked about the composition

why stronger than expected print this morning, spread shooets in background turns out, powell's super core nonhousing services inflation printed up .76 this morning this is the piece that is being driven by wages, by, fiscal spending, and getting hotter, .2 first seven months last year now averaging more.4, 5 cents that is the fiscal impulse here so this underscores how a fed can in no way offset, really expansionary fiscal policy couldn't in 60s, 70s real story of what happened to great inflation not ghost of burns confessed, policy this is a fiscally driven inflation impulse and fed is in no position to do anything about this until and unless congress is willing to cut spending not

just discretionary spending start running a primary surplus this inflation is going to continue to runway above fed's target i thought, the comments about balance sheet are interesting they do want to slow pace of qe, i think, all things equal would actually start likeableing to shorten duration of that portfolio, go back to a bull only policy not hold treasurys but i can't argue with steph's point the fed has to monetize debt the banking system loaded up on treasury big banks first couple months of this year with no visibility to disinvert yield curve to slower short-term rates can't buy trushts at 4 1/2% that is a losing proposition. we are in a really tricky spot only real way out is to change the fiscal trajectory, you know as lee said really no

near-term prospects for that. >>. maria: go back to what you said when you started your talk about, about wages the fiscal spending. we want to understand, what is behind this spike in inflation here. an by the way, robert kaplan former president dallas federal reserve regular on this program said many times, that the federal reserve is fighting a tsunami of cash coming at it, for a long time jamie dimon and others have been saying cash is going to run out cash is going to run out bank of america said the covid money going away it is not going away. because joe biden is right now trying to forgive student loan debt, right so that stimulus in and of itself barry what is behind this number this morning tell us. >> another way to think about this wage numbers from last friday what you see is something that we haven't seen in decades, which is sectors that are being driven by i fiscal spending like

construction spending, construction wages, construction sector should have lost jobs when fed tightened aggressively, wages should have come down. instead because of the so-called inflation reduction act i hate calling it that or infrastructure spending bill, semiconductor chips act, tradition money flooding around state local governments you are seeing wages in those sectors continue to go up running higher than service sector, that service sector wages are being lowered by all these immigrants coming in taking low end healthcare jobs, for example, this dichotomy you can't even when you pick at wage data impact of fiscal spending running 7% deficit something we have never done during an expansion before, so to say that money is going to run out, stop of spending -- it is -- first of all, not in this the numbers, and second of all, just doesn't make any sense there

is plenty of spending out there, you can see it flowing through to wages in sectors, excessive spending if a business that benefits from that, financial conditions not tight they are loose. maria: carol assess where we are interest rates are soaring this morning 10-year close to 4.15% the stock market is selling off, we are off the lows were down 500 now 399 onnios nasdaq down this triple digits how do you see things. >> i think the market as digesting this probably seeing june off the table as we know over 58% chance by investors i certainly think that is driving it. but the longer term issue real is you know, highlighting the fiscal issue window dressed growth running huge deficits that need to be monetized the

fact that we have central banks around the world, who have last 10 years been net sellers of treasury powell telegraphed he is thinking about slowing pace of qe may turn into qe by different name i think that is the concern, that perhaps isn't being sort of fully digested today. >> fiscal issue talking about this everyone talking about jamie dimon letter to shareholders released yesterday, jamie told me this thing in january, watch this. >> where does fed fit in right now pretty much pride of in three rkdz this year possibly two or three republics in 2025 do you agree with that i am a skeptic, i look at a o lot of things forget economic molly for a second, two trillion dollars fiscal deficit, the infrastructure, the green economy, the

and that looks a little more like 1970s to me. i think there's a chance that the people should be prepared f that inflation comes down, maybe bounces around 3, maybe bounces up a little bit, and those implied curves will change. maria: lee zeldin, what is it going to take for this administration to recognize that all of this reckless spending approved by the democrats in congress has caused this inflation problem? >> they're not going to recognize it and, actually, a lot of people in congress don't think the debt is a problem. they'll continue to spend and increase the debt. when we talk about the prices of food and groceries, this is about survival. when you talk about being able to afford your first home, to be able to move into a bigger home, that is the american dream. upward economic mobility. and there are a lot of people who right now, when you add up household debt, when you add up that cost of living, that inability to be able to get that first home or to be able to move into a bigger moment home, that

is impacting their quality of life where it's as personal as it gets. there are issues we talk about where you think about an impact on a neighbor or some other community somewhere else. but when you talk about the economy, it seems like e when things are going well, the economic issue isn't as strong of a motivator. but when people are struggling, then it becomes the number one issue. and for right now a lot of americans, this will be their number one issue. and it looks like there might not be relief coming to the extent some are predicting in june. maria: would you expect, stephanie, that we're going to get a similar reading from ppi tomorrow? compare today's readed are -- readings for the consumer to what what we could see on the producer number, because if we get a hot number tomorrow, we could preponderate the businesses out will there to pass it on to consumers. they're about to see price increases on about everything again. >> well, they're going to try, maria. and as you know, i've been really concerned about the ability for them to pass higher prices along because while there's still a little timing

plus out there -- stimulus out there, it's clearly receding. we're not talking about the day -- back in the day where inflation ran up to% where people were going to the mailbox every month and getting a check from the government. also at the state and local level, surpluses have already flipped to deficits, and they're now imposing tax hikes where they were having tax cuts prior. so i think all of that is going to limit the capacity of businesses to pass on these higher input costs, and that's why i think tomorrow's ppi will be really important as a relates to the outlook for profit margins. another pet topic of mine, as you know. [laughter] maria: yeah. >> so i'll be watching that very closely. and, you know, i would expect the oil price impact to be every bit as propound there as well as, you know -- profound -- the shipping costs, etc., costs of transportation. so i do think we're going to see some real margin pressure over the next several months as a function of higher input costs

that are a little less easy to pass on to consumers who, frankly, are just spent up and lent up at this point. maria: well, it's a good point because once we get through this inflation data, our focus will be on first quarter earning, and the banks kicks off on friday and then it's off to the races with earnings news really driving markets. you're expecting a disappointment on earnings seasonsome is that a what you're saying? >> i am. and i would highlight one thing. you know, we give a lot of attention to the ill market that the mag 7 have on price performance but very little as relates to the earnings impact. maria: yeah. >> i got those numbers from s&p, and the mag 7 accounted for 24% of earnings in the latest quarter. if you broaden, out to the top 20 companies, they account for 43% in s&p earnings. maria: wow. >> so you've got a handful of companies that are doing great and everybody else who's barely getting by, and i think that's an important thing to focus on

because eventually the fortunes of the many are going if to catch up to the few. maria: yeah. that doesn't bode well, adam a. >> no, but i'm okay with it. i'll tell you why. fair if point, you've had a group of companies that have held things up. but actually the rally is starting to broaden out. maria: okay. >> in fact, industrials, many of them are making new highs, so there's more going on than just the mag 7. maria: tonight -- today not so, down 435 on the dow industrials. final word, carol roth. >> been a wild one -- [laughter] i think that we have a lot stick writer inflation to come -- stickier inflation, and i think this is something we need to be prepared for. p more great to see everybody, barry, adam, lee, carol, tiffany, we appreciate it -- stephanie p. starny and company picks it up. -- "varney & company" picks it up. stu, take it away. stuart: yeah, this is inflation day. how much have prices gone up? we have the numbers and here they are. in the last year inend e nation at the consumer level up