MARKETS LIKE HIS PREDECESSOR,
MIGHT WANT TO TAKE A PEEK.
IT WOULD BE A TAD DISRUPTIVE.
LET’S GET THE READ FROM DOUGLAS
HOLTZ EAKIN, FORMER BUDGET
DIRECTOR.
I AM LOOKING AT THE MARKETS,
THE ENVIRONMENT PRODUCING THE
SELLOFF AND HAS ALL THE MAJOR
AVERAGES IN BEAR MARKET
TERRITORY, GOES IN AND OUT.
WHAT DO YOU MAKE OF THAT?
>> Reporter: THE MARKET IS
CATCHING UP WITH THE REALITY
THAT THE FED HAS TO BE
AGGRESSIVE TO GET THIS
INFLATION UNDER CONTROL AND
JEROME POWELL MADE A CLEAR CASE
THAT IT WILL TAKE A LONG TIME
FOR THAT TO HAPPEN.
HE SAID IT WOULD TAKE SEVERAL
YEARS TO HIT 2% TARGET, I DON’T
THINK PEOPLE PAID ENOUGH
ATTENTION TO THAT.
HE SAID THEY WOULD GET TO
NEUTRAL AS EXPEDITIOUSLY AS
POSSIBLE, PEOPLE REALIZING IF
YOU HAVE INFLATION SOMEWHERE IN
THE 6% TO 8% RANGE, EVEN 3%
INFLATION ISN’T CLOSE TO
NEUTRAL SO THERE’S A LOT OF
WORK TO DO, DO IT QUICKLY AND
STAY UP FOR A SUSTAINED PERIOD
OF TIME, NOT A BAD SCENARIO FOR
THE FINANCIAL MARKETS AND THEY
ARE REALIZING THAT AND THERE IS
A TRIP DRIP DRIP OF OTHER BAD
NEWS, RUSSIA IS CALLING UP A
MILLION ADDITIONAL TROOPS, THE
UKRAINE CONFLICT WILL DRAG ON,
EUROPE IS FACING A TOUGH
ECONOMIC OUTLOOK, CHINA DEAD IN
THE WATER, NOT A LOT OF BRIGHT
SPOT IN GROWTH IN THE GLOBAL
ECONOMY AND THAT IS WHAT YOU
ARE SEEING.
NEIL: CLIMATE CHANGE, WHATEVER
PEOPLE’S VIEWS ON THAT, WE ALL
WANT A CLEAN PLANET, CLEAN
WATER, CLEAN AIR, BUT IT IS
EXPENSIVE AND WE ARE ALREADY
HEARING FROM FORMER BARACK
OBAMA ENERGY OFFICIAL SAYING WE
GOT TO PIVOT A LITTLE BIT.
WE COULD BE ALL IN ON OIL --
ALL ENERGY INCLUDING WHAT WE
HAVE AN ABUNDANT SUPPLY,
BRITAIN IS MAKING THE MOVE TO
EXPLORE MORE NORTH SEA OIL
PRODUCTION, NOT SHYING AWAY
FROM CLIMATE CHANGE AND ALL THE
OTHER THINGS THAT COME WITH IT
BUT REPRIORITIZING FOR THE TIME
BEING.
I AM NOT FOLLOWING WORD FOR
WORD WHAT THE PRESIDENT IS
SAYING BUT HE IS SAYING IT IS A
FRONT BURNER AND BIG ISSUE, NOT
THE MARKETS, NOT INFLATION,
CLIMATE CHANGE AND I’M THINKING
OF ALL OF THESE OTHER NATIONS
PARTICULARLY IN EUROPE THAT
HAVE PIVOTED, THAT HAVE MOVED
TO THE REALITY OF THE MOMENT
AND WE ARE NOT.
>> I HAVE BEEN BAFFLED BY THE
AT MINISTRY SHOULD’S APPROACH
TO CLIMATE CHANGE.
IF YOU CARE ABOUT CLIMATE, YOU
CARE WHAT COMES OUT, YOU DON’T
DEMONIZE WHAT FUELS GO IN.
THE STRATEGY IS BUILT ON TAKING
VALUABLE ENERGY PUT SOURCES OFF
THE TABLE.
THAT’S NOT A RATIONAL STRATEGY.
ALL THE DEEP RESEARCH ON THE
ECONOMICS OF CLIMATE CHANGE
SHOW NATURAL GAS AND OTHER
FOSSIL FUELS WOULD BE IN THE
MIX FOR DECADES TO COME EVEN AS
YOU MADE THE TRANSITION TO
CLEANER FUELS AND CONTROL THE
EMISSIONS FROM THE ECONOMY.
THAT THE RESEARCH.
THE STRATEGIES NOT BASED ON
ANYTHING APPROACHING THE
RESEARCH REALITY.
IT IS A VERY RISKY THAT ON
SOLAR AND WIND AND DOESN’T MAKE
SENSE FROM THE PERSPECTIVE OF
THE BROADER SOCIAL GOALS WE
HAVE, SUSTAINED RISES, AND
ABILITY TO GET PEOPLE TO WORK
AND YOU CAN DO THOSE AT THE SAME TIME.
SAME TIME.
STRATEGY DOESN’T ALLOW IT.
NEIL: THE INFLATION, THEY
ATTRIBUTE TO ALL OF THE
TRILLIONS OF DOLLARS IN
GOVERNMENT SPENDING, JAMIE
DIMON WAS POUNDING THAT ON
CAPITOL HILL APPEARANCES, MANY
LIBERAL MEMBERS TOOK OFFENSE TO
THAT.
I’M NOT HERE TO DEBATE POLITICS
AS MUCH AS LET’S SAY THIS HAS
SAPPED AVAILABLE FUNDS FROM THE
AMERICAN PEOPLE.
JAMIE DIMON’S MESSAGE IS THE
FEDERAL RESERVE’S MISSION IS
TRYING TO UNWIND THE BALANCE
SHEET TRILLIONS OF DOLLARS AND
THE GOVERNMENT PILED ON
TRILLIONS MORE SO MONEY BEING
SHUT OUT AS THEY TRY TO GET
MONEY SHOVED BACK.
>> WE TALKED ABOUT THE
INABILITY OF CONGRESS TO GET
THE FISCAL SITUATION UNDER
CONTROL FOR A LONG TIME.
EVEN WHILE THEY ARE PRAISING
THEMSELVES FOR INFLATION
REDUCTION ACT, THEY ARE PASSING
CHIPS & BILL WITH $300 BILLION
OF DEFICITS, VETERANS PACKED
BILL, $600 BILLION OF DEFICIT
SPENDING, BUSINESS AS USUAL,
DOESN’T MATTER WHAT YOU DO IN
ONE BILL BUT OVERALL AND
OVERALL CONGRESS CONTINUES TO
SUSPEND AND PAY FOR IT LATER,
FUNDAMENTALLY INFLATIONARY AND
THIS HAS TO LEAN AGAINST IT.
THEY ARE IN CONFLICT, NOT
WORKING TOGETHER AND IT IS TIME
FOR THE ADMINISTRATION TO CLEAN
UP THEIR ACT.
THAT IS LONG OVERDUE.
OF THE 20 GOOD SEEING YOU