>> could not agree with michael farr more. my pick today is lockheed. pay close attention to stocks that are within 3% of all-time highs. there is meaning there. >> did you finish that rubik's cube, by the way >> no. >> playing with it the whole show. i'm wondering if you actually finished it. >> no. not for me. >> i guess not. >> i can't. >> pete najarian what do you say? >> mel, first of all, great job today. see you at 5:00. will be great. kinross gold love it. september 6th calls i bought as well. >> do not miss "fast money" tonight at 5:00. mean time, stay tuned. "the exchange" begins right now. >> thank you very much, melissa. hi, everybody. welcome to "the exchange." i'm kelly evans and here's what's ahead markets feeling nervous as the fed get more aggressive tightening vix up, transports down. markets continue sell-off broadly and a wrinkle investors have to digest here to talk more about that, our guest. and mortgage rates hitting all things housing, even lows. down more than 20% talk to the analysts nailed it downgrading them's in late 2021.

farr michael, it is always great to see you. it is almost even better to read your remarks because when i do it is like i'm reading a conversation of a very interesting person, having a conversation with himself and sometimes the best person to talk to. own best conversationalist you think the fed will skirt disaster explain. >> tyler, what the markets are telling you is that they still don't know if they can believe the fed. the fed didn't have credibility to stick to the guns go back to 2018 starting to raise rates. markets starting to fall the fed falls back your comments to ron were right. quarter of a point hike is all we have seen and the rest is talk taking interest rates up, great. but it could be that they overdo i think there's also a reasonable likelihood that this leads to a recession they're trying to put a large thread through a narrow needling here. >> talk about the kind of stocks that you think can do best or better under the kind of scenarios you forecast earnings are key interest rates always key, as well you

farr, who his an architect, has emerged as a meeting contender. he seen as a nominee who could appease the progressive and moderate rings of the democratic party and would support in the narrowly divided senate. global news, 24 hours a day, on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries. haslinda: sri lanka is warning of an unprecedented default and has halted payments on foreign debt as it looks to stockpile dollars for essential food and fuel. let's find out more from bloomberg's managing editor. what pushes sri lanka to suspend payments now? >> good morning. sri lanka was ahead of the rest of the world. it had been struggling to make payments even last year, but at that time, the political and central-bank was adamant that it will not be vote. sri lanka has never defaulted, and the central bank said that we will never default in the fed. having said that, the pandemic, the war in ukraine, all of these global events and cost policies within sri lanka have pushed the nation. they're running