IT’S ALIVE IN OIL.
GOOD TO SEE YOU.
FUEL PRICES HITTING ANOTHER
RECORD TODAY. WE ARE AT A NATIONAL AVERAGE OF
WE ARE AT A NATIONAL AVERAGE OF
$6.6$ -- AVERAGE OF $4.62 A GALL
LARRY, YOUR REACTION TO WHAT WE
ARE SEEING NOT JUST TODAY.
BUT WE COULD TALK ABOUT CORE
INFLATION.
STRIPPING OUT FOOD AND ENERGY.
BUT FOOD AND ENERGY IS
EVERYTHING RIGHT NOW TO THE
AMERICAN CONSUMER, AND THAT’S
THE ECONOMY.
>> AS BAD AS GAS PRICES ARE, THE
QUESTION WE KEEP ASKING
OURSELVES, IS THERE A BREAKING
POINT?
HE SEE THE DEMAND THAT EVERYBODY
IS TALK ABOUT.
IN EUROPE WE SAW THEIR
INFLATION.
IT’S MUCH MORE PROBLEMATIC
THERE.
BUT IT DOESN’T HIDE THE FACT
THAT WE HAVE OUR OWN ISSUES
HERE.
GAS UP 50% OR MORE IN MOST
MARKETS.
PEOPLE ARE USING CREDIT CARDS TO
FINANCE IT.
THAT’S HOW THEY ARE AFFORDING
IT.
IT’S A FOR NOW CONVERSATION.
COME THE FALL, IF GAS PRICES ARE
AT THESE LEVELS, THEY WILL HAVE
A PROBLEM.
THEY WILL PAY $50 TO SEE "TOP
GUN" AND BORROW FROM THE FUTURE
TO DO IT.
CHERYL: DESPITE WHAT WE HAVE
BEEN HEARING FROM THE BIDEN
ADMINISTRATION, PEOPLE ARE
STARTING TO SAVE LESS.
THEY ARE HAVING TO DIP INTO
THOSATION OF ACCOUNTS.
THEY HAVE BEEN LOCKED DOWN FOR
TWO YEARS.
BUT THAT DEMAND -- THERE IS A
FIGHT RIGHT NOW WITH THE
CONSUMER AND WITH BUSINESSES.
WHERE DO YOU SEE IT?
>> I THINK THAT’S RIGHT.
THE NUMBERS BIDEN CITED POINT
BACK TO THE END OF LAST YEAR.
WE ARE ALMOST AT THE END OF MAY
HERE.
AND THINGS HAVE GONE THE WORSE.
WE HAVE BEEN CLOBBERED WITH
RECORD-BREAKING INFLATION.
THEY HAVE DIPPED INTOING
THEIRATION OF ACCOUNTS.
WE HAVE CONSUMERS HITTING THE
BREAKING POINT.
WE ARE SEEING IT IN BIG BOX
STORES.
CONSUMER SPENDING IS STARTING
TO TAPER OFF.
ONCE WE SEE CONSUMER SPENDING
REALLY START TO FALL, WE ARE IN
A PROBLEMATIC PLACE WHERE THE
ENTIRE ECONOMY IS VERY
CONCERNING.
BIDEN IS SAYING EVERYTHING IS
HUNKY DORY.
IT’S JUST NOT MATCHING WHAT
PEOPLE ARE SEEING ON A
DAY-TO-DAY BASIS.
CHERYL: WE EXPECT TO SEE THE
PRESIDENT AND JEROME POWELL
AFTER THEY HAVE THE MEETING AT
THE WHITE HOUSE.
WHEN HE LAID OUT IN THIS "WALL
STREET JOURNAL" EDITORIAL
YESTERDAY.
HE SAID HERE IS MY 3-POINT PLAN.
MY PLAN FOR FIGHTING INFLATION.
WE COVERED THAT PIECE OF THE
PIE.
BUT THE COMMERCE DEPARTMENT,
THAT PERSONAL SAVINGS RATE AS A
PERCENTAGE OF DISPOSABLE INCOME,
THAT SOARED TO 4.4% IN APRIL.
AND THE FACT THAT THEY ARE
TALKING ABOUT POTENTIAL PRICE
FIXING.
THEY ARE GOING AFTER THE EVIL
OIL COMPANIES AND THE FOOD
COMPANIES.
YOU TAKE THE EVIL EMPIRE
CORPORATE GREED OF THE DAY AND
THE ADMINISTRATION SEEMS TO BE
MISSING THE MARK FRANKLY WITHOUT
PROOF.
>> PEOPLE ARE SO BUSY TALKING
ABOUT HIGH GAS PRICES, THEY
CAN’T GET TO THE HIGH FOOD
PRICES.
AS LONG AS GAS PRICES ARE AT
THESE LEVELS, THE FED CHAIRMAN
AND THE PRESIDENT MANY MEET ALL
THEY WANT.
THINK OF IT AS A BAD MEETING.
IT’S ALMOST AN EMERGENCY
MEETING.
IT’S VERY UNUSUAL TO HAVE THESE
TYPES OF MEETINGS.
THE CONCERN IS THEY WILL BLINK
COMING INTO MID-TERM ELECTIONS.
THEY DON’T WANT TO BE THE CAUSE
OF THE INFLATION.
SO I THINK WE HAVE A REAL
CONCERN HERE, AND IT STARTS WITH
THE PUMP AND THE GROCERY STORE.
UNTIL YOU GET THOSE TWO ISSUES
AND TAKE PERSONAL RESPONSIBILITY
FOR IT, THE REST OF IT WON’T
MATTER.
>> YOU CAN’T GET THEIR ATTENTION
OFF OF IT AND TELL THEM THE
ECONOMY IS GREAT WHEN IT’S NOT.
I WANT TO TALK WITH YOU ABOUT