GEOFF, BACK TO YOU.
>> SO CHECK THE FLIGHTS IF YOU
ARE BOOKED ON AMERICAN THIS
SUMMER.
THANK YOU, TOM COSTELLO.
>>> PRESIDENT BIDEN IS MEETING WITH THE TREASURY SECRETARY
WITH THE TREASURY SECRETARY
JANET YELLEN AND FED CHAIR
JEROME POWELL.
AND IT IS HARD TO IGNORE THAT
THIS MEETING IS HAPPENING WHEN
THE COUNTRY IS WATCHING WHAT IS
HAPPENING POST PANDEMIC.
WHAT AMERICANS IS ENCOUNTERING
IS ALMOST UNRECOGNIZABLE 16
MONTHS AGO.
HOUSING IS SCARCE, AND
EVERYTHING IS PRICING UP, AND
THERE IS A GREAT DISLOCATION
BETWEEN MILLIONS OF UNEMPLOYED
WORKERS AND MILLIONS OF VACANT
JOBS.
ALL RIGHT.
JOINING US NOW IS OUR FRIEND
ROBIN FARZAD, FROM NPR FORECAST,
AND THIS IS THE MEETING THAT IS
GOING TO MARK BIDENS FIRST
FACE-TO-FACE WITH THE FEDERAL
REGULATORS OF THE BANKING
INDUSTRY AND THE MARKETS AND THE
FED CHAIRMAN, AND EXPLAIN WHAT
THIS MEANS LIKE I AM A FIFTH
GRADER, BECAUSE THAT IS THE
UNDERSTANDING I HAVE OF ALL OF
THIS WORKS.
>> THE FEDERAL RESERVE OF THE
UNITED STATES IS THE BIGGEST
BANKER OF THE UNITED STATES.
IT HAS A BIG SPIGOT, AND BY
OPENING IT IT MAKES LENDING
CHEAP, AND OUT THERE FURTHER
BUYING ALL SORTS OF SECURITIES
TO SMOKE PEOPLE INTO TAKING THE
RISKS, AND YET LOOK AT THE
SAVINGS ACCOUNT YIELD, AND WHAT
THE MORTGAGE COSTS THESE DAYS,
AND IT IS AT PRETTY MUCH CALL IT
FREE MONEY POLICY EVER SINCE
THIS PANDEMIC TOOK HOLD.
AND THIS IS SOMETHING THAT IS
BOTH EXHILARATING IF YOU ARE
SOMEONE WHO WANTS TO BUY A
HOUSE, AND TAKE RISKS IN THE
MARKET, AND BUY A LAWNMOWER OR
GET A CAR.
BUT THEN, WHAT IS GOING TO
HAPPEN WHEN THIS STIMULUS COMES
A
AWAY.
THIS IS UNPRECEDENTED CHEAP
MONEY, AND HOW MUCH CAN THE
ECONOMY STAND ON ITS OWN TWO
FEET.
>> GOT IT.
SO BECAUSE EVERYTHING IS SO
RICHLY VALUED THE STOCK MARKET,
AND THE HOUSING MARKET, AND WHEN
THE FED DOES SOME HAND WRINGING,
AND SAYS, I DONT KNOW ABOUT THE
INFLATION THING, THE ANALYSTS
GET NERVOUS, AND THAT IS WHERE
WE ARE RIGHT NOW?
>> YES, THAT IS RIGHT.
THE FED IN ADDITION TO TAKING
THE MONETARY VALUE DOWN, IT HAS
MORE ITEMS IN THE QUIVER.
JEROME POWELL, AND OTHER
GOVERNORS CAN SAY THINGS LIKE,
WE DONT SEE OURSELVES TAKING
RATES BACK UP TO 2023, BUT WHEN
YOU SEE THE PREVARICATION LIKE
LAST WEEK, THE INFLATIONARY
MEASURES ARE LOOKING HIGHER THAN
WE THOUGHT, THEN THE MARKETS
START TO SECOND-GUESS THAT IOU,
AND MAYBE WE TOOK TOO MUCH FOR
GRANTED.
>> LASTLY, MAY I ASK YOU ABOUT
THE AMERICAN AIRLINES AND
STRIKES ME WHETHER IT IS
AMERICAN AIRLINES OR THE TACO
BELL OR THE SUMMER CAMP, AND
THAT IS WHAT WE ARE ABOUT TO
TALK ABOUT IN A MOMENT, BUT
THERE IS A LABOR SHORTAGE ACROSS
THE BOARD, AND WHAT IS THE DEAL?
>> IT IS UNPRECEDENTED HANGOVER.
AND REMEMBER THAT WE HAD TO SHUT
EVERYTHING DOWN WITHIN A WEEK
BACK IN THE HAZE OF THE SPRING
OF 2020, AND BRINGING THOSE
THINGS BACK, AND YOU CANT DO IT
OVERNIGHT, AND YOU SAW WHAT TOM
COSTELLO SAID ABOUT THE
FURLOUGHED WORKERS AND THE
RESTAURANT EMPLOYEES WHO ARE
SURVIVING ON THE ENHANCED