J Powell, FED, Michael Ray discussed on CNBC's Fast Money

CNBC's Fast Money


He and the whole committee. You can imagine a scenario and this is what every client wants to talk about in some shape or form. Inflation is down, but still high. Unemployment is up. Maybe it's four and a half, maybe it's 5%. Equities, not so good. What do you do if you're the fed? One thing you do for sure is get a lot of pushback from Congress. It is. And it's going to do intensify quite a bit. It's going to put the fed in a really tough spot. So if unemployment does head up to four and a half or 5%, those J Powell really hang in and fight inflation. It's an open question. I think he will want to. The rest of the committee, we're not sure. All right, Michael, good to see you. Thank you for coming. Thanks Melissa. Pleasure. All right, so Bon went, how do you think about all that? I think Michael ray is a couple of good points. So in terms of reaching a terminal rate and then persisting there, I think that's really what's not priced in. Like we said, 75 is kind of off the table in terms of we already know that's all but a given 50 at least the following month is all but a given. And then the economic conditions are also kind of the variable there. And I think it's presupposed that we're going to get to some terminal rate, have some massive erosion and underlying economic dynamics. And then be forced to pivot. But that may not happen. And a lot of the economic indicators that we're getting, in fact, whether it be jolts, whether it's construction, whether it's the last GDP reading, are still saying that things are holding up holding up very well. So we might have a longer tail or top to that plateau than perhaps is suspected. We talk about the pressure that's coming from Congress on the fed. I mean, this is a group of legislators also that are like traders. They have not seen an environment where they haven't had the tailwind of monetary policy. And do your job too. Fiscal policy at many times is really not matched up. I'm not encouraging because we've been watching this tug of war between fiscal monetary over the last three weeks, especially in the UK. I just point that out. I think you get back to the sectors that perform in lower growth environments, and yet can have pricing power inflation. It sounds boring, but healthcare and consumer Staples are going to continue to work. I think energy will continue to work because there's nothing in this backdrop that I think deteriorates demand so badly when we're demand constrained around the world right now. All right, coming up. We've got some after hours action shares of AMD and Airbnb, the details from the quarter's next plus cross your heart and hope to buy Johnson Johnson scooping up a heart pump company, so will the $16 billion buyout boost growth. We'll break it down when fast money returns. Indeed's mission is to help people get jobs, so it might come as no surprise that they've created a podcast called here to help. Hosted by indeed CEO Chris hyams, here to help

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