neil: all right, dow about 262 points heading back to session lows right now, maybe, maybe, my buddy charles payne can correct all of this. he's right now, hey, charles. charles: we have back to back treacherous friday so we'll do serious heavy lifting, neil. good afternoon, everyone i'm charles payne this is "making money" and the market is trying to fight back after yesterday's very ugly session which only added to really what is one of the most maybe the most difficult year you've ever had in the market, so by now, everyone's having to go back to the drawing board and many have actually skipped out on this market. i get it, pressure bust but also pressure makes diamonds i've got some of the very best on the show to help you stay the course. and ed yardeni is one of them, he became more circumstance um

secretary, yet a long term outlook, rather, i think will have your approval, meanwhile americans drifting from capital ism has heaven hassett raising the alarm and the two most power powerful men in america, their messages keep backfiring, what biden and powell must do to help ease this and i'll sit down with larry kudlow to discuss how we should view and grade progress in this great country in america , all that and so much more on "making money." so the nature of this market 2022 means that everyone, and i mean everyone, has had to go back to the drawing board, or at the very least, make adjustments to their game plan that they maybe have felt so comfortable, even confident about at the start of the year. let's face it the stock market has been slammed, only energy is shining, bonds are in a generational meltdown, that has far reaching implications for investors particularly folks

who thought they were safe, from typical market gyrations. the bottom line here, is that there are times when you must make adjustments and certainly its been this year. to quote boxing legend mike tyson, everyone has got a plan until they get punched in the mouth. joining me now, yardeni president, ed yardeni and you made an adjustment early on to your s&p 500 outlook , changed your year-end target obviously it's a brilliant move in hindsight. what are some of the things you've done or tinkering with right now? >> well, as i'm looking at the markets i see a tremendous amount of pessimism, certainly sentiment as indicators have been extremely pessimistic and it's usually a good indicator that at least you should start looking at possibly buying. i'm also clearly, like everybody else, looking for any sign of a peak in inflation and believe it or not, i think we can actually see some in the wage numbers that came out this morning. i look at on the three-month annualized basis, and wage inflation on that basis seems to

be moderating somewhat. the same thing and analysis leads me to the same conclusion with the consumption deflation. on the other hand, we had the unit labor cost inflation, the productivity numbers the other day, that was the day the market turned really ugly and i think it turned really ugly yesterday, because of unit labor cost numbers. charles: and we should point out that's a quarterly number so as you smooth them out you may have something that's more reflective of what's happening now as opposed to what might have been happening at the beginning of the year, so i mean , we can add a caveat to it, right? so we are seeing wild swings, particularly this week. when you see the wild swings like two days ago almost every stock was up. yesterday almost every stock was down. is that a market that's searching for a bottom or one that's going to fall through a trap door? >> well, i think it's searching for a bottom, but i think there's still a tremendous amount of fear that the fed is way behind the inflation curve and has a ways to go, but i

think what people are not really focusing on is that the fact is financial conditions have already tightened up dramatically. we see the two year note already at two and a half, 2.6%. we see the 10 year treasury bond at 3%, so it's true. the fed has a ways to go in raising rates, but because it turned so hawkish earlier this year the financial markets have already done a lot of the tightening for the fed, and as a result, i think the fed is just going to be a laggard here. you know, way back when in the early 80s i talked about the bond vigilantes as being a force for keeping a lid on inflation and i think that's what the we're seeing here. i think the dow vigilantes are doing quite a job here in slowing the economy down and there is a case to be made for inflation moderating. charles: if i recall correctly you actually coined the term bond vigilantes everyone is wondering where they have been, so hello.

let me go back to that jobs report because jay powell laid out a scenario if i got this right where he thinks we get a soft landing, it would include steady job growth like the 400,000 we saw this morning, slower wage gains which we saw this morning, but he also said stronger participation, so he got two out of three. i don't know, i don't know why people aren't coming back into the labor market, ed. you've got 11.5 million jobs opening, a wage spiral going on, i was shocked to see 350,000 people leave the labor force. does this mean powell is too optimistic about any sort of organic, the inflation coming down by any organic mechanisms? >> well, i think the month-to- month numbers from the labor department can be somewhat volatile. they do get revised. what i'm seeing is that the underlying growth rate of the labor force has slowed down really quite dramatically. i think we have a chronic shortage of labor, and that's one of the reasons we're seeing upward pressure on wages but at

the same time, i'm seeing companies are scrambling to use technology to increase the productivity of workers and i think that's really what's going to turn things around. everybody compares the current situation to the 1970s and the 70s productivity collapsed, productivity growth collapsed. this time around productivity growth is going to make a big safe for us. charles: i've got to go but i saw where you said that productivity number put a ding in your roaring 20s thesis but overall is it still intact? >> yeah, absolutely. i still got sometime here, we're only at 2022 and i think as the decade progresses, we're going to see more and more productivity growth and that going to be great for bringing inflation down and for increasing standards of living. charles: listen i'm with you a thousand percent i can't wait to live through it ed thank you so much. >> thank you. charles: i'd like to bring in first trust advisors chief economist brian wesbury. let me follow-up on-the-jobs report. your thoughts o in what we saw

this morning. >> yeah, charles great to be with you. do i get the 20s too to be right charles: [laughter] >> that be great. eight more years, yes, you know, charles, the employment report today was, i mean, i'm looking at it, it was strong. we got 400,000 jobs, we've created 2 million new jobs this year, there are problems with the labor market. it seems like we have 11.5 million open jobs that nobody wants to fill. i just, i think it's really hard right now and this will be a theme as we talk here in the next couple of minutes, to analyze anything as if it's normal, because we didn't have a normal recession and we're not having a normal recovery. we locked down, then we're opening up. we borrowed all this money from our kids, we printed all this money, we gave the economy a big dose of morphine and then coming back and trying to

analyze it just like it's a recovery in 1987 or recovery in 1994, i don't think that always works today. we have to step back and look at bigger picture things. charles: so what about the productivity report? that was scary. >> yup. charles: when you look at it it's hard to imagine corporation s can profit in that, even more importantly for me, i don't know how small business can survive when you have wages going up to that degree, they can't keep up and we saw that in the adp report. >> yeah, that's exactly right, charles that was a scary number, down 7.5%, the worst quarter for productivity since 1947 and i'm going to come back to that, what i just said. we created 1.6 million new jobs in the first quarter. why? because we finally got rid of a lot of the mandates and at the same time, we got head of ourselves with inventories and

the spending that was financed by charging things on our children's credit cards has gone away so you get a little bit slower growth while you have this surge in jobs and that artificially pushes down productivity, but you're absolutely right. small business, they were closed the longest, a lot of those employees went to these, you know, the amazons, to the fedex of the world, and now they're having a hard time getting those workers back. charles: let me ask you then real quick about these wage gains. they're really big nominal wage gains but real disposable income peaked last march. it was $19, 199 now it's $15,000 there's got to be some serious negative implications from something like that, no? >> right. well, remember, last march was the big checks that came from the government, and that added to personal income. it was all what we call transfer payment and so what's happened is all that government money has

come down while companies are opening backup, cruise ships and airlines are getting more full, and so we have a switch, and charles, we did unprecedented things. never before have we charged that much money to our kids and then handed it to people to spend, and it made all of these numbers wacky, and so what's really happening underneath right now is that earnings are up about 5.5% from last year, it seems good but inflations up 8.5 % and that's why people are getting worried about our world today. charles: it does seem crazy to me that the folks who printed the money urge people to spend the money are now upset because billionaires ended up with the money. brian i've got to leave it there my friend. talk to you soon. >> good to be with you. charles: i'd like to bring in now investment director shana sissel and the market exhibiting some resolve today, we're back down again but we've climbed off the canvass a few times, we had

a couple good sessions earl earlier in the week. is this a bottoming process? >> i don't know how exactly i get to follow two legends like ed yardeni and brian wesbury, but i don't know how much input i have that's better than what they've already said. do i think it's hitting a bottom i don't know and people who attempt to call bottoms -- charles: when your clients call you and say i want to get out the market do you say get out the market because i don't know? >> no, absolutely not. as a matter of fact i'm licking my chops right now. these kind of markets that i make the money for my clients, you make money when you are in the volatile down-trending markets, if you think back i started my career doing media financial media in 2008 and this whipsaw that we're seeing massive volatility reminds me a lot of then and if you think about what happened following that, we had 10-plus years of a raging bull market, so i think

it's important that people remember whether we're at the bottom or not, i'm not going to try to make that call. charles: but you are asking, you are telling people there's opportunity, so there's opportunity where do you see it right now? >> so there's some eft's i really like and there's stocks i really like. i'll start with the stocks. my number one choice right now is nov, its been beaten up, the reason i like it, we have removal from oil supply, russian oil and so the western world is really looking to add supply. it's hard to do that here in the united states because all the frackers have this regulatory pressure and they can't really get up production, but offshore drill ing is some place where you can get production up quickly and nov has a monopoly in that space. another one i really like gxo. we've talked about this before it's a smaller cap company, it's a pure play logistics company,

it does not have a good comp, so it's hard to kind of figure out, you know, a good comparable competitor, but it is stock that's been beaten up for stock- specific reasons, insider selling, it is a spin-off so people are unsure about how well the management can execute but i think it has a strong management team, its got a great balance sheet and i think if you're thinking about supply chain and having to figure that out, a pure play logistics company makes sense to me. so those are two names i really like right now. charles: also and you like i think you like, so you like energy overall you mentioned national oil well, you like the real estate investment trust here this is an interesting call for me because i know this is a segment a sector that does very well in recessionary times so is that one of the reasons you like it or are there some other things here? >> well there's a couple of things. i don't like all reit's, as you know i was an advisor in the launch of a product called h

aus, it's a very residential reit-focused product and i like that space right now. if you think about the housing market, we've had very tight supply constraints, very much been a seller's market for quite sometime, with rising mortgage rates and continued tightness in the supply in the housing market , people are turning to rentals instead of buying, and that's where i'd want to be, especially in specific geograph ies, but i think there's a real opportunity there, plus it's a very high dividend yielding area, and dividend yield is a place that i'm going to be focusing right now as we get a little bit defensive because we think volatility is going to continue at least through the end of the year. charles: dividends, you've got to be in the dividends particularly 10 years now looking competitive to most stocks on the s&p in terms of dividend yield, so i agree with you a thousand percent, shana, thank you so much we appreciate it. all right folks, so as the biden administration about to go after your toaster?

listen, i'm not joking. climate advisor gina mccarthy, if she gets away there's going to be a tsunami of new rules on appliances, folks, i can't make this up, i can't wait to get kevin hassett's take on that but bullish sentiment ticked up a little bit this week and the 10 year bond yield is soaring. we've got a lot of mixed signals what it means for investors and what we'll do to help you, we'll take you to chart school when we come back. (vo) verizon business unlimited is going ultra! get more. like manny. event planning with our best plan ever. (manny) yeah, that's what i do. (vo) with 5g ultra wideband in many more cities, you get up to 10 times the speed at no extra cost.

verizon is going ultra, so your business can get more. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates

matching your job description. visit indeed.com/hire lemons. lemons. lemons. the world is so full of lemons. when you become an expedia member, you can instantly start saving on your travels. so you can go and see all those lemons, for less. xfinity mobile runs on america's most reliable 5g network, but for up to half the price of verizon, so you have more money for more stuff. this phone? fewer groceries. this phone? more groceries! this phone? fewer concert tickets.

this phone? more concert tickets. and not just for my shows. get $400 off an eligible samsung device with xfinity mobile. take the savings challenge at xfinitymobile.com/mysavings or visit your xfinity store and talk to our switch squad today. first psoriasis, then psoriatic arthritis. even walking was tough. i had to do something. i started cosentyx®. cosentyx can help you move, look, and feel better... by treating the multiple symptoms of psoriatic arthritis. don't use if you're allergic to cosentyx. before starting...get checked for tuberculosis.

an increased risk of infections some serious... and the lowered ability to fight them may occur. tell your doctor about an infection or symptoms... or if you've had a vaccine or plan to. tell your doctor if your crohn's disease symptoms... develop or worsen. serious allergic reactions may occur. watch me. charles: so, obviously markets are still struggling here to recover from the aftermath of that fed presser, but it's times like this of course we like to take you to chart school because this is an amazing guide that gives you so much and one of the best at it adaptive market technician ian mcmillan. let me start with you with aggregate bonds, the eft, obviously we've been coming down so much i had to use a 10 year chart here to help us out. now, we do see where probably a moment of truth. we held back when the pandemic began, but then you've got to go way back there to see where we held again. you know, when i see these kind of charts, as someone who loves charts it feels like a make or break moment. what do you see from this chart

with the bond market and unprecedented sell-off this year >> first and foremost, thanks for having me back on, charles. yeah, you could say we're at a make or break moment for me, i think we've broken it. you want to use the , you mentioned the u.s. barclays aggregate. we want to use the agg eft. we are through 104 on that, and until that recovers, i don't see really any demand coming in in the fixed income space. charles: wow. >> treasuries, munis, corporate s, convertibles you name it. everything has been absolutely just crushed this year. i think fixed income in total has maybe two up, green weeks and those were pretty miniscule themselves. i think the pain continues. charles: so to that point, we've got them now a 10 year chart, 10

year treasury. this yield is speaking like this is really really amazing. we're getting back to 2008 highs where more importantly for me i know a lot of folks got upset a few months ago when someone used a logarithm chart to say we reversed a 40 year trend but look at this. if this keeps going, we could be in a brand new paradigm because i've seen where bonds, you know, the circular, they make big moves so they could be up for 20 , 30, 40 years but also down for 10, 20, 30, 40 years and there's a lot of folks near retirement watching this show right now, with a 60/40 portfolio they aren't sure what to do. >> absolutely, you hit it right on the head. bonds and rates move in 30 year cycles. there's a lot of people out there who are in charge of, you know, portfolios, client portfolios, institutional portfolios, who have no idea what a rising rate environment looks like. think how many black box, you

know, macro investment ideolog ies have been built over the last 40 years. for example, the 60/40 portfolio like you said, that is based on this idea that fixed income will offset any equity volatility and anytime that bonds or equities go down bonds should go up. that's all been thrown out the window, and i think you've got a lot of people scratching their head on now, you know, they're back at square one. charles: so real quick, this week we saw individual investor, the bullishness went up 10 percentage points, bearish ness went down a little bit. what are you buying here, what do you like in this environment? it's pretty clear you've got active money managers starting to nibble, we had mutual funds and it looks like maybe nibbling is going on. have you done anything, where should people be looking? >> no, we are still very

defensive, obviously energy has been okay, and commodities, a few chemical stocks out there, and then staples have, you know, there's been some select staples that have held and i think kellogg is having a real nice day today, but no, still very much defensive. i think that rates continue to move higher and that's just going to be a huge headwind for growth and i think it's eventually going to find its way to apple and microsoft. charles: wow i've got 30 seconds the most important chart, you know, i like asking, what's the chart that everyone should be aware of right now? >> i'll go back to those two names. apple and microsoft. they continue to holdup, but if those break, apple below 156, microsoft below 276, it's going to be a heck of headwind. its been a tailwind for seven years. charles: hope it doesn't happen, ian thank you so much always appreciate your expertise.

folks coming up, former trump white house economist kevin hassett is out with a new book worried about the drift towards socialism, and he joins me after the break from powell to biden to even elon musk messaging has been the name of the game. why the public is rallying around just one of these guys, beverly hallberg here to help the other two out, don't go away . ♪ ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

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.

my name is douglas. i'm a writer/director the smart, fast, easy way and i'm still working. in the kind of work that i do, you are surrounded by people

who are all younger than you. i had to get help somewhere along the line to stay competitive. i discovered prevagen. i started taking it and after a period of time, my memory improved. it was a game-changer for me. prevagen. healthier brain. better life. better hearing leads to a better life. and that better life... ...starts at miracle-ear. it all begins with the most innovative technology... ...like the new miracle-earmini™. available exclusively at miracle-ear. so small, no one will see it. but you'll notice the difference. and now, miracle-ear is offering a 30-day risk-free trial. you can experience better hearing with no obligation. call 1-800-miracle right now and experience a better life. ♪ limu emu ♪ and doug. ♪ harp plays ♪ only two things are forever: love and liberty mutual

customizing your car insurance, so you only pay for what you need. (emu squawks) if anyone objects to this marriage, speak now or forever hold your peace. (emu squawks) (the crowd gasps) no, kevin, no! not today. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ >> we're actually going to do 100 rules this year alone on appliances, just like you asked. we are developing partnerships on how we work together for new building standards, even for sustainable airlines, who would have thunk that they be

all in but they better be or they are going to be out of here. charles: [laughter] how the hell you get 100 rules on appliances like how many things can you make a toaster do that it doesn't already do? i want to bring in that was white house national climate advisor gina mccarthy and she's completely out of control. i want to bring in kevin hassett kevin also is the author of the new book "the drift" stopping america's slide to socialism. i've gotta tell you something, kevin. you saw the clip. i'm sitting there with my mouth wide open like how can you apply 100 rule, what are we going to do? we're going to do it with the toaster and the blender, to make them more climate-friendly sounds completely out of control >> yeah, it is out of control, and think about it, charles. like the toaster that you and i had when we were kids was so much better than the toaster we have now. they've already destroyed the toaster, it takes 10 minutes

to make a piece of toast. charles: and kevin don't get me started on the toilets okay? [laughter] >> oh, dear save that for cocktails, but you know, the truth is this is really serious now, that president trump came in and he basically froze new regulations unless they're really important. a lot of things were erased off the books, and one of the things that even under the obama administration and past administrations so like a key rule in government was that if you want a new regulation that it has to pass a cost benefit analysis test and so the office of management and budget would analyze it and say well here are the benefits to society, here are the costs, it passes the test so you can do that regulation and every cabinet agency had to run it through the omb and under the trump adminitration, even the treasury department had to run it through the omb. biden's first move when he came into the white house was he canceled that rule and so right now regulators all around government can write new

regulations and they are no longer reviewed to make sure they are good for society by anybody so he really did tie people up with new regulations, but here is the thing. we found that as soon as we stopped new regulations, small business sentiment soared to the highest it had ever been since world war ii. you remember that, and it did, we found out, because new regulations are especially hard on small businesses, because they don't have like a whole compliance team to look at every regulation and figure out how to change things so they don't get in trouble so they have to hire outsiders and it costs them a lot of money. the point is that small business sentiment is now about the worst its been since world war ii and it's exactly because of all these new regulations. charles: it's in free fall. so kevin this is an example, what's in your book, the sort of drift toward this collective government, socialism-type government. >> yeah, that's right, and i think one of the things that people watch and should know is that the biden administration and liberal networks have been

telling you oh, well things are tough inflation is high but it's transitory it's trans a for transitory but it's not this is what happens when you're in a drift towards socialism if you want to understand what you need to do with your money or your life, you immediate to understand what they are trying to do and then help work to stop it, but the fact is, that if you go to a socialist country and go into the store, what do you see on the shelves? nothing right? the shelves are empty. if you start to become socialist and they took big, big steps in that direction, since biden's been in office, then the shelves start to be empty, and the prices go way up. charles: we've seen that. >> if this doesn't reverse we're going to see really more carnage in markets and at the pump and in the grocery store. charles: are there places where the free market capitalism we practice now though could be improved. in other words when you look at things like banks, the banks not lending money out, the loan ratio to deposit like all-time low or 50 year low. when you look at things like the

trade deficits soaring, you know, we talk about supply chain s. that maybe a buzzword, a lot of people think it's just a euphemism for the fact that we sent so much production outside of this country now we're suffer ing from it. are there areas in the current capitalistic system that could be improved? >> yeah, there absolutely are, and you know, kevin mccarthy and i were actually talking about this a little bit earlier in the week. the fact is that when we passed the tax cuts and jobs act one of the main things that you talked a lot about and i talked a lot about at the time was that it would encourage american businesses to bring their activity home, and so u.s. multinationals went from having a booking about 35% of their income in the u.s. to you know right before the pandemic it was 65%, but biden came in and he threatened them with all these new regulations and with these tax hikes and janet yellen 's global effort to raise taxes on everybody, & companies are fleeing the u.s. again and right now, the percentage of multinational income booked in the u.s. has gone back below where it was under obama.

it's the whole effect of the tax cuts bringing activity back into the u.s. is being erased by the aggressive regulation and threatened tax hikes of the biden administration but the good news is you said what can we do that if republicans capture congress and it becomes obvious that these like really really terrible tax policies are not going to become law then i think some of that will reverse and these negative trends that you see right now will reverse but until then, we're looking at a deep recession. right now, you know it's clear we had a negative first quarter, 94% of the time after a quarter that bad you end up with a recession that year, and going back to world war ii. charles: the writing is surge on the wall, kevin i have to let you go here my friend but congratulations on the book. >> thanks charles. charles: dow 36,000 in my library this will go in there with it next to it. >> [laughter] charles: so, you know, a lot of this folks is really messaging too right? it's a huge problem particular had it from the people who were supposed to trust the most. i want to start with fed chair jay powell for instance who tried to sound sympathetic

earlier this week. let's take a listen. >> inflation is much too high and we understand the hardship it is causing, and we're moving expeditiously to bring it back down. we have both the tools we need and the resolve that it will take to restore price stability on behalf of american families and businesses. charles: so he talked about american families but he printed trillions of dollars that's crushing them now in inflation. so he's lost wall street and main street i want to bring in district media president beverly hallberg. so what advice would you give jay powell. he's already done the policy part. he tried to start off with this preamble we understand america is tough, you're struggling but later on he sort of seemed to be bailing out wall street. >> yeah, he's doing something better than president biden is and that is at least acknowledging the pain, but what he has done in the past year is he continues to be wishy washy on what he thinks is actually taking place of course talking about inflation being transitory and wishy washy about how dangerous inflation is and even this week he said that he

doesn't think there's going to be a stiff recession but when you talk to economists, business owners, most people think there's a tough two years ahead. they think there will be a recession so i think what we're getting from jay powell is a lot of uncertainty where he's saying one thing but the rest of the country is realizing that's not accurate and are doing something different. charles: you mentioned president biden his poll numbers are incomplete freefall. his messaging to me is always, it's divisive, there's a lot of fear mongering, in fact i want you to take a listen to this. >> what happens if you have states changing the law saying that children who are lgbtq can't be in classrooms with other children? is that legit under the way the decisions written? what are the next things that are going to be attacked, because this crowd is really the most extreme political organization that's existed in american history.

charles: he promised on inauguration day he would unite the country. i haven't seen a single effort toward that. your thoughts? >> the complete opposite and look, there is some hypothetical fear mongering going on by this administration, claiming that certain things are going to happen that states are going to vote a certain way but there's nothing pointing to that at all, and also, with all of this , he's coming out and even in the issue of inflation, he's talking about russia being the problem, pointing the finger at putin and that is not resonating with the american people. he's not talking about the issues that they really care about, and what you're finding is all this fancy messaging falling flat, because it doesn't match up with the reality of people, what they're struggling with. fancy messaging actually feels like a slap in the face, when it doesn't line up with reality. charles: let's talk about someone getting it right. elon musk. the left hates him, they jumped all over him but people are going crazy, his approval is amazing and get this. there's been a 263% spike in people who want to work at twitter since he's taken over.

i mean, why is musk winning when all the media outlets for the most part are against him? >> because media outlets just are not in touch with the rest of the american people. they are in their silos and don't understand what american people, the american people really want, so there's talk also about twitter employees potentially quitting. i think elon musk is okay with that. he actually put out a tweet this morning saying that hey, if you're going to work in the technical space within twitter you need to understand the technical side of things if you're going to manage the software department you need to create software so i think he's going to be upping the ant e on the caliber of employee he's looking for so in addition to current twitter employees not liking free speech , they may also be a little bit offended by the caliber of employee they may have to be competing with. charles: i can tell you right now we already heard from one of the folks that said don't send your resume there. beverly been too long great see ing you thank you. up next, folks, larry kudlow is going to join me on why he

doesn't believe jay powell and he says you shouldn't believe him either. also celebrating america's growth or squabbling about the past. you don't want to miss this conversation larry and i hads are going to have on how we should view the greatest country in the world. ♪ miss american pie, drove my chevy to the levy but the levy was dry ♪ meet jessica moore. jessica was born to care. she always had your back... like the time she spotted the neighbor kid, an approaching car, a puddle, and knew there was going to be a situation. ♪ ♪ ms. hogan's class? yeah, it's atlantis. nice. i don't think they had camels in atlantis. really? today she's a teammate at truist, the bank that starts with care when you start with care, you get a different kind of bank.

big game today! everybody ready? alexa, ask buick to start my enclave. starting your buick enclave. i just love our new alexa. dad, it's a buick. i love that new alexa smell. it's a buick. we need snacks for the team. alexa, take us to the nearest grocery store. getting directions. alexa will get us there in no time. it's a buick. let's be real. don't make me turn this alexa around. oh my. it's painful. the buick enclave, with available alexa built in. ask “alexa, tell me more about buick suvs.”

charles: maybe still a little bit bruised up from the transitory situation, earlier in the week, jerome powell tried to take the edges off his soft landing promise, again, remember he kind of got beat up over transitory i want to bring in the host of kudlow, larry kudlow joins me now. so he talked about a soft-ish landing.

larry: yeah. well-known economic term. charles: what's amazing to me though is you look at the cme fed watcher, fed watching and it's 85% chance, wall street believes there's 85% chance that the next rate hike will be 75 basis points. essentially, they're saying we do not believe you, jay powell so either they are saying they believe he's incompetent or -- larry: there is no competence in jay powell i just want to state that flatly. i don't mean it to be personal if he hears our segment i had lunch with him for three years on a regular basis he's a fine human being, but i think he's bu ngled a couple things, charles. i want to go back after the trump tax cuts we had a roar ing 4% growth kherson and he started turning the screws for no reason because there was no inflation. because we were growing too fast , okay? and he had to flip flop back down. now, as we all know, 12 months ago or 15 months ago, he said there's no inflation or there's

transitory inflation, and he's completely had to take that back even now, he can't send clear signals, he may talk paul volcker but he doesn't walk paul volcker if you get my drift and he hasn't been confirmed by the senate. at the fed he's chairman pro tem pore, some people on wall street are calling him the transitory fed, just saying. charles: [laughter] although brainard in the back drop. larry: she got in because she refused to say she's a capitalis t in the hearings. charles: going back to that, it felt like that year, 2018, someone gave powell a book, because he's not an economist and i actually thought that was a great thing, some real life experiences didn't spend her whole life -- larry: a banker. charles: maybe more real life experience than a lot of these folks, but he went by the book, so he hiked rates four times, then he had an epiphany january the next year and actually went too far the other way started to think he can use policy to solve

the ills of society like for things like social justice, so he seems like to your point, he's been so behind in learning on-the-job but we're paying a price for it. i've got to ask you about another thing. larry: on those jobs, charles, you can't constantly flip flop. charles: right. larry: like front page in the journal this morning, or online, my friend rich clatey who is a very dear personal friend, but now he's re can'ting. rich is the guy who invented average inflation we can over shoot, and he was in the transitory camp and now his term is over as vice chairman and talking about the need for a 4% federal funds rate which maybe correct, okay but where were you a year ago? you can not flip flop, you have to have a clear set of principles and that's what's lacking. there's no confidence in joe biden's economic policies and there's no confidence in jay powell, i'm sorry to say that, but i believe it's true, and

your point, the markets won't even believe what they say now. charles: it's amazing. larry: sorry. charles: we have a minute to go. we had a great conversation earlier this week. larry: yes. charles: someone posted the chart the approval of marriages between black and white people and the person who posted the chart, he said that u.s. only crossed 50% approval in the mid-1990s as a jab at america. the chief economist at glass door said put another way, for most of us on here the majority of americans opposed inter racial marriages in our lifetime s but also point out the way i'm looking at it is that we're at 94%, so you have on one hand, we can talk about the past when we talk about america, and i think we spent far too much time on that instead of celebrating where we're at now. larry: charles as you said brilliantly and blessedly on my show a couple nights ago, things keep changing and they change

for the better including and most significantly race relations. the far left doesn't want to acknowledge that because they have an axe to grind but they are wrong. this is such a great country and i totally totally agreed with that and i'll say what i always say, don't tell me about systemic racism and there's all this racial divisions because we had black president winning two terms rather handedly with 80 million white votes. and when i was taking slack in the government in the year 2020 when the riots broke out, i used to say that and ask, how can we be systemic prejudice, systemic racism, when this african american was two times elected president with 80 million white folks and nobody, not any of these wack job cnn, msnbc, cnbc, nobody had an answer for that. charles: folks if you want more of this and i know you do because i see the numbers every

night, larry kudlow, 4:00 p.m. on the fox business network. we'll be right back. larry: thank you, charles. charles: thank you. you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

(dad allen) you know when you see a great deal on a phone, and then realize it's not for you? not at verizon. matching your job description. (mom allen) yep, they just gave us all a brand new iphone 13. (vo) now everyone can get a new iphone 13 on us on america's most reliable 5g network. for every customer. current, new, everyone. to show the love. we gotta tell people that liberty mutual customizes car insurance so you only pay for what you need, and we gotta do it fast. [limu emu squawks]

woo! new personal record, limu! only pay for what you need. ♪ liberty, liberty, liberty, liberty. ♪ so many people are overweight now only pay for what you need. and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now, there's golo. golo helps with insulin resistance, getting rid of sugar cravings, helps control stress and emotional eating, and losing weight. go to golo.com and see how golo can change your life. that's g-o-l-o.com.

charles: all right, folks you know the drill by now. extreme volatility, we're all worried about inflation and you've heard it throughout this show. is the fed up to the job,

bringing in ceo genevieve, investing a market can obviously be tricky, you always talk about long term investing. trying to time this market and get it out and thinking you can get back in, it's always probably the ultimate mistake, isn't it? >> i mean, we heard it last week with warren buffett himself he hosted his agm, and he said they've made mistakes not because you're trying to time the market because they get the timing wrong, they put money to work in 08, they put money to work before the covid crash and last billions of dollars so you should never try and time the market. if you look back 10, 20, 30, 40, 50 years the stock market has been up, and in times like these , today, like the decisions you make in your portfolio right now, is what's going to determine your lifetime returns. it's not for the faint of heart, absolutely not. charles: but the main point is you don't want to get out of the whole thing, thinking that somehow you're going to waltz back in at the bottom.

i want to get back to you on some of the things buffett is doing but i need your thoughts because when i saw this i thought about you, dr. doom, blasting bitcoin saying most of the investors in bitcoin have lost their shirt, and of course peter schiff piling on saying bitcoin is about to crash. its been a rough week for bitcoin all of a sudden all along knives are out. what do you say to the folks again predicting its demise? >> i mean, i'd say we have the highest inflation in 50 years and gold has barely budged so his whole gold thesis is not working out either, but bitcoin is up massively, this is an echosystem with a technological breakthrough, there's nothing wrong with the technology it's working, the asset class is speculative, because we don't know how to value it, but we know it works, and i mean even this week, there were $300 million worth of nft's sold and people are buying this stuff still, even when you're having a bit of a correction here in crypto, so it tells me that it's living and

breathing, there's 100 million people on this planet that own crypto, and are doing things with it and it's just going to take time to really, you know, come to its real potential. charles: i tell you what, i'm sticking with you on that one, i wish we had more time, i short changed you but next time we'll talk to you again real soon. >> sounds great thanks. charles: folks i'll be right back. exploring the heart of historic europe with viking, you'll get closer to iconic landmarks, to local life and legendary treasures

as you sail onboard our patented, award-winning viking longships. you'll enjoy many extras, including wi-fi, cultural enrichment from ship to shore and engaging excursions. viking - voted number one river cruise line by condé nast readers. learn more at viking.com. hey businesses! you all deserve something epic! so we're giving every business, our best deals on every iphone - including the iphone 13 pro with 5g. that's the one with the amazing camera? yep! every business deserves it... like one's that re-opened! hi, we have an appointment. and every new business that just opened! like aromatherapy rugs! i'll take one in blue please! it's not complicated. at&t is giving new and existing business customers our best deals on every iphone. ♪ ♪ welcome to allstate. where everyone saves when they bundle their home and auto insurance. isn't that right, frank?

i saved 25%. booyah. you protected your casa? sure did. and the frank tank? you know it. and now you're relaxing. i'm working from home. sure you are. alright i see a lot of head nods. let's circle back tomorrow. you weren't kidding. save up to 25% when you bundle home and auto with allstate. click or call for a quote today.

♪♪ this... is the planning effect. this is how it feels to know you have a wealth plan that covers everything that's important to you. this is what it's like to have a dedicated fidelity advisor looking at your full financial picture. making sure you have the right balance of risk and reward. and helping you plan for future generations. this is "the planning effect" from fidelity. ♪ charles: so we talked about

buffett all day, sort of like than nose, right? -- thanos. you know, there's a lot to debate over jay powell, his performance this week, his intentions in the future, but i've got to tell you one thing that's not up for debate, he is all-powerful, and he's got everyone's attention. by now we have to play the waiting game until the next fomc gathering. the most important cpi report in history, at least in my lifetime. i do believe the market's oversold, i am licking my chops. we have have taken some losses, but with you've got to make the tough decisions here. i'm gearing up for the next big move higher. i think it comes sooner rather than later. here's the thing, folks, we're in a trading range, so we're going to have major, major bounces. bounces that are so big that that you can make money from them. so maybe you're not a trade trader, maybe you've never done that before, you're going to have to be more nimble because

if you can get in something and make 15% in a couple of weeks, those are the kind of opportunities you want to take advantage of. otherwise it's like the proverbial frog sitting in the boiling pot. always looking for opportunities, and is once you get out, i think it's all she wrote. liz claman, i don't know if you agree -- [laughter] you don't always have to be 100% invested, but i think you should always be in the market. liz: yeah. cash is trash is a statement that some believe you really should be mostly mt. market in good quality companies, so i'm with you there, charles. all right. let's call it, about 60 minutes left of trade for a week that has just been insane, right? markets are lower as we wrap up a wild week that saw the biggest rally of the year wednesday after the fed raised interest rates by 50 basis points and then the u-turn yesterday, the dow's ninth biggest point drop in history.