>> You wrote what my turn is to
our next subject.
It is the economy.
Inflation is at a four decade
high.
Grocery stores and gas stations,
hitting Americans so hard.
With six months to go, the
midterms, administration trying
to shift its messaging on
inflation and economy.
The treasury secretary admitted
on CNN that a year ago, she was
incorrect when she said
inflation would be transitory.
She told the network "I think I
was wrong about the path
inflation would take."
There is some good news that the
may jobs report was better than
expected, despite the economic
slowdown.
Joining us to discuss is an
economics reporter for the wall
Street journal.
Thank you for being here.
I want to start off with where
we are.
I'm so happy you are here.
We really need an economics
reporter to break it down for
us.
Jamie Dimon, the CEO of J.P.
Morgan chase, says there will be
an economic hurricane.
Mothers will be able to find
baby formula.
We also have a jobs report
looking better.
Break down where we are in the
economy and horizon.
>> The state of the economy is
in a delicate place.
There are a lot of bright spots.
Looking at the labor market, a
solid jobs report today.
If you look at the balance
sheets, those are some of the
positive signs in the economy.
Inflation at a four decade high,
it is hitting families hard.
You look at polling data and
consumer sentiment data,
families are concerned about the
higher prices at grocery stores,
gas pumps, it is a big problem.
You also have the federal
reserve mounting this very
aggressive campaign to lower
inflation.
Raising interest rates,
shrinking the balance sheet.
They are tapping the brakes on
the economy.
That is giving corporate leaders
and economists some pause.
The fear is the federal reserve
will not bring down inflation
without launching us into a
recession.
People are hopeful the federal
reserve will be able to do it,
but there is fear amongst some
that they will not be able to
do.
>> Another big question, what
can president Biden actually do?
There have been so many
presidents, from lbj, Nixon,
other presidents who tried to
deal with inflation and failed.
How much can he really impact
the economy on his policy and
messaging?
>> He is trying.
You saw him say that they are
going to be engaging in this
month-long campaign to speak to
Americans about the economy and
reassure Americans have a plan
to fight inflation.
If you talk to any economist,
they say the president can't do
much, his administration can't
do much.
The most powerful player is the
fed.
Have to wait for the fed to make
its move and see how they work
through the system.
From a political standpoint, it
is impossible for the president
and his administration to say it
is the fed's responsibility and
we will not do anything.
So really trying to reset
messaging.
You see him talking about what
they are trying to do, whether
it beer a release from the net
-- the energy reserves, or
passing president Biden's
economic agenda.
Economists say those things
don't move on inflation,
particularly in the short term.
>> This week began with
president Biden calling on
congress to pass things like a
clean energy tax credit or
investments and tax reform.
How much is congress interested
in what the president is talking
about?
>> There is a lot going on.
I do think it is interesting
president Biden has spent the
week -- for months, they have
tried to be more optimistic
about inflation and the economy
than the reality has been.
With Janet Yellen saying she was
wrong and the administration --
they have positive economic
indicators like the job numbers,
but they are trying to show they
are taking inflation issues more
seriously.
June will be an interesting
month between the roe decision
out of the supreme court,
gunboat in congress, the January
hearings.
It will be a big month for
Democrats to convince voters it
is not just a referendum on the
president and Democrats in
control of congress.
It is a choice election.
It is a big month where it will
either happen or it won't.
>> I want to ask about the
challenges.
I want to ask about Janet Yellen
saying she is wrong.
She fell on her sword.
>> Absolutely.
Something we don't often hear.
When you think about the
invasion becoming evident, the
press secretary at the time kind
of scoffed at the idea it was
going to stick around for a long
time.
They kept saying it would be
transitory, not around very
long.
That feels a lot different now.
Janet Yellen saying I was wrong
on this, that was brought up to
the current press secretary this
week.
Were you wrong or will you say
that as well?
Kind of moving on and saying
that.
Talking to the American people,
what they have said is the whole
time they felt they were not
taking it seriously.
President Biden giving speeches,
telling people I feel your pain.
But talking about the economic
indicators that are good for
this administration or the
country.
People were not hearing that
when the milk and gas was going
up.
Now you have this issue of
infant formula not being able to
come to mothers and be on
shelves.
>> There are so many challenges.
I want to get your sense of what
you thought about Janet Yellen's
comments.
You told our producers people
feel sour around the country.
Weigh in on her statements and
how people are feeling being
part of this.
>> It was a rare moment from the
treasure Terri -- treasury
secretary.
He also heard her saying what we
have the inflation we have.
She said there were
circumstances that could not
have been foreseen that caused
supply shocks to the economy
driving the inflation we are
seeing right now.
What I heard her saying is a
pushback to the criticism
Republicans have constantly
launched at this administration,
that it was their policy is
fueling the inflation we see.
What you heard is a lot of
reasons we have inflation,
inflation is a global problem,
supply chain issues.
They are pushing back on the
criticism from Republicans.
Whether the messaging resonates
with voters and breaks through,
that remains to be seen.
The administration has been
messaging on inflation for
months.
We see the data, people are not
buying it.
They feel bad about the outlook
of the economy in months to
come.
So it is a difficult position
for the administration to find
itself in.
>> Going back to the great point
about the challenge the white
house faces.
What are they dealing with and
the overall mood?
Folks sound like they are
overwhelmed, but like this is
what the white house has to deal
with.
>> The mood is sour.
In the country and the white
house.
So much is going on.
The biggest problem we have been
talking about the entire show is
there is not much the white
house can do for some of these
issues.
On inflation, guns, things
American people want them to do.
>> I should also say that they
did not tell president Biden
about the baby formula.
It wasn't until April.
They are also walking back
statements.
There is a frustration.
>> Like a flurry of what seems
like missteps.
Especially talking to the
administration and asking why
the president was not briefed on
infant formula when the people
who make it new that the closing
of the Abbott facility would be
an issue immediately.
That is one of the many things
they are dealing with.
White house houses are hard.
At a time when people are
feeling how they are feeling,
this administration feels like
they don't have a lot to do, but
are pushing forward, talked
about chewing gum and walking at
the same time.