RUSH TRANSCRIPT President Biden ░░░░░░░░ a prime time speech ░░░░░░░░ night calling for new ░░░░░░░░ legislation We should repeal ░░░░░░░░ liability shield that often ░░░░░░░░ gun manufacturers from being ░░░░░░░░ for the death and ░░░░░░░░ caused by their weapons ░░░░░░░░ we re getting into ░░░░░░░░ all morning long mornings ░░░░░░░░ Maria is live right ░░░░░░░░ on fox business And ░░░░░░░░ is the time for ░░░░░░░░ word on Wall Street ░░░░░░░░ me right now is ░░░░░░░░ cliff capital CEO Mike ░░░░░░░░ and Brian and hudson ░░░░░░░░ investment advisers CEO and ░░░░░░░░ gus Gentlemen great to ░░░░░░░░ you all Thank you ░░░░░░░░ much Mike kicking things ░░░░░░░░ with you with well ░░░░░░░░ re getting a little ░░░░░░░░ performance for some tech ░░░░░░░░ software stocks did well ░░░░░░░░ Elon Musk is out ░░░░░░░░ he has a bad ░░░░░░░░ about economy The Tesla ░░░░░░░░ preparing to cut staff ░░░░░░░░ 10 also pausing all ░░░░░░░░ hiring at Tesla are ░░░░░░░░ thoughts on the macro ░░░░░░░░ whether or not we ░░░░░░░░ going to see these ░░░░░░░░ materialize Yesterday weed that ░░░░░░░░ Dimon saying that an ░░░░░░░░ hurricane is coming Mike ░░░░░░░░ morning Maria Yeah I ░░░░░░░░ if you re looking ░░░░░░░░ negative news there s ░░░░░░░░ lot of it out ░░░░░░░░ and from none other ░░░░░░░░ know Jamie Dimon and ░░░░░░░░ Musk arguably two of ░░░░░░░░ titans of industry here ░░░░░░░░ the U S and ░░░░░░░░ of them in the ░░░░░░░░ camp of there s ░░░░░░░░ negative news coming When ░░░░░░░░ look at it Maria ░░░░░░░░ 100 000 employees so ░░░░░░░░ s 10 000 people ░░░░░░░░ are going to be ░░░░░░░░ laid off I wonder ░░░░░░░░ this is a leading ░░░░░░░░ or a lagging indicator ░░░░░░░░ I m in the ░░░░░░░░ that it s a ░░░░░░░░ lagging indicator We already ░░░░░░░░ a fed that s ░░░░░░░░ to rein in inflation ░░░░░░░░ raising rates but rates ░░░░░░░░ way ahead of themselves ░░░░░░░░ ll argue so you ░░░░░░░░ the 10 year now ░░░░░░░░ under 3 at 2 ░░░░░░░░ I think the big ░░░░░░░░ we have to look ░░░░░░░░ Maria especially in tech ░░░░░░░░ look at Tesla Maybe ░░░░░░░░ hired too many people ░░░░░░░░ Elon didn t see ░░░░░░░░ potential slowdown or an ░░░░░░░░ slowdown coming in the ░░░░░░░░ So for companies to ░░░░░░░░ off a portion of ░░░░░░░░ work force that s ░░░░░░░░ going to stop our ░░░░░░░░ in its tracks I ░░░░░░░░ there s still enough ░░░░░░░░ strength there But the ░░░░░░░░ will be the Fed ░░░░░░░░ the Fed not overreact ░░░░░░░░ the Fed look at ░░░░░░░░ interest rates are doing ░░░░░░░░ maybe within the next ░░░░░░░░ 6 months realize hay ░░░░░░░░ t have to keep ░░░░░░░░ rates at pace they ░░░░░░░░ been Maria well it ░░░░░░░░ not just Tesla and ░░░░░░░░ s not just Jamie ░░░░░░░░ I mean you know ░░░░░░░░ saw the tech sector ░░░░░░░░ announce the highest amount ░░░░░░░░ layoffs since 2020 and ░░░░░░░░ course yesterday we spoke ░░░░░░░░ the CEO of Parler ░░░░░░░░ said that we re ░░░░░░░░ to see the layoffs ░░░░░░░░ We also got the ░░░░░░░░ akp report in two ░░░░░░░░ adp report in two ░░░░░░░░ Estimates have come down ░░░░░░░░ For example the broad ░░░░░░░░ is 325 the 000 ░░░░░░░░ added to the economy ░░░░░░░░ this morning Nancy lazar ░░░░░░░░ at pipe sandler says ░░░░░░░░ s expecting the number ░░░░░░░░ be 200 000 Do ░░░░░░░░ think this is a ░░░░░░░░ market mover How do ░░░░░░░░ react do you think ░░░░░░░░ we get a 200 ░░░░░░░░ number I think the ░░░░░░░░ would react favorably to ░░░░░░░░ because you know although ░░░░░░░░ re still seeing wages ░░░░░░░░ higher we do need ░░░░░░░░ the Fed is trying ░░░░░░░░ get the economy to ░░░░░░░░ could be can So ░░░░░░░░ that s working whether ░░░░░░░░ want to give the ░░░░░░░░ credit for that or ░░░░░░░░ I think that would ░░░░░░░░ a good thing Maria ░░░░░░░░ talk about the tech ░░░░░░░░ in hiring look at ░░░░░░░░ happened with Microsoft yesterday ░░░░░░░░ think it s very ░░░░░░░░ for viewers to key ░░░░░░░░ on things like this ░░░░░░░░ if has been a ░░░░░░░░ for the past several ░░░░░░░░ They came out yesterday ░░░░░░░░ lowered their guidance and ░░░░░░░░ that the sock the ░░░░░░░░ the off in the ░░░░░░░░ sold off in the ░░░░░░░░ and closed higher on ░░░░░░░░ day That tells me ░░░░░░░░ a company like Microsoft ░░░░░░░░ has already sold off ░░░░░░░░ much and is baking ░░░░░░░░ lot of in into ░░░░░░░░ stock price already That ░░░░░░░░ what I want investors ░░░░░░░░ key in on and ░░░░░░░░ to Passenger regarding the ░░░░░░░░ on layoffs the Fed ░░░░░░░░ anything else Maria well ░░░░░░░░ lot of this goes ░░░░░░░░ to policy Brian I ░░░░░░░░ we ve seen the ░░░░░░░░ of massive spending over ░░░░░░░░ last year that has ░░░░░░░░ inflation and now even ░░░░░░░░ of the administration like ░░░░░░░░ CEO of blackrock Larry ░░░░░░░░ yesterday blamed inflation on ░░░░░░░░ and supply generated issues ░░░░░░░░ said to bloomberg this ░░░░░░░░ the type of inflation ░░░░░░░░ I don t believe ░░░░░░░░ Federal Reserve has the ░░░░░░░░ or the tools to ░░░░░░░░ the anything about right ░░░░░░░░ Brian So the bottom ░░░░░░░░ is you re hearing ░░░░░░░░ say yes here we ░░░░░░░░ with 40 year high ░░░░░░░░ but we don t ░░░░░░░░ the tools to do ░░░░░░░░ anything about it Even ░░░░░░░░ joed Biden said well ░░░░░░░░ we haven t seen ░░░░░░░░ that we can actually ░░░░░░░░ to change anything with ░░░░░░░░ to prices in food ░░░░░░░░ energy Thanks Maria with ░░░░░░░░ s a great point ░░░░░░░░ money supply increasing 40 ░░░░░░░░ start of the pandemic ░░░░░░░░ started the inflation flame ░░░░░░░░ But then the supply ░░░░░░░░ inefficiencies as well with ░░░░░░░░ flame lit the flame ░░░░░░░░ the war in Ukraine ░░░░░░░░ t help It elevated ░░░░░░░░ prices But I think ░░░░░░░░ you move forward we ░░░░░░░░ inflation is going to ░░░░░░░░ the sticky because rents ░░░░░░░░ housing costs are definitely ░░░░░░░░ big part of that ░░░░░░░░ as well as wages ░░░░░░░░ sticky And I think ░░░░░░░░ we re seeing right ░░░░░░░░ in the jobs market ░░░░░░░░ well as in the ░░░░░░░░ chain is the fact ░░░░░░░░ there s about 131 ░░░░░░░░ jobs open 11 million ░░░░░░░░ open which is about ░░░░░░░░ million more than we ░░░░░░░░ with prepan chem doic ░░░░░░░░ think the pandemic Influencing ░░░░░░░░ consumer around a shift ░░░░░░░░ purchasing capital goods and ░░░░░░░░ to services with hopes ░░░░░░░░ brings down some demand ░░░░░░░░ at the same point ░░░░░░░░ time st the not ░░░░░░░░ across all sectors or ░░░░░░░░ but we do expect ░░░░░░░░ chain inefficiencies to the ░░░░░░░░ If you think about ░░░░░░░░ 8 inflation right now ░░░░░░░░ think it s possible ░░░░░░░░ it could be fix ░░░░░░░░ the 10 of this ░░░░░░░░ But the Fed has ░░░░░░░░ change their policy in ░░░░░░░░ about future inflation They ░░░░░░░░ talking about 2 p ░░░░░░░░ think what would be ░░░░░░░░ helpful is to hear ░░░░░░░░ revise that goalpost and ░░░░░░░░ look we re in ░░░░░░░░ different world now where ░░░░░░░░ is broken and you ░░░░░░░░ to bring up your ░░░░░░░░ from 3 to maybe ░░░░░░░░ to maybe 3 or ░░░░░░░░ which would cause them ░░░░░░░░ relook how they re ░░░░░░░░ interest rates through next ░░░░░░░░ Maria look yesterday fed ░░░░░░░░ braynard said she is ░░░░░░░░ to see a change ░░░░░░░░ the inflation levels but ░░░░░░░░ we don t see ░░░░░░░░ significant move in inflation ░░░░░░░░ by September the debate ░░░░░░░░ is it going to ░░░░░░░░ 25 basis points or ░░░░░░░░ basis points hike So ░░░░░░░░ re expecting 50 basis ░░░░░░░░ in June another 50 ░░░░░░░░ many in July We ░░░░░░░░ see about September Are ░░░░░░░░ buying stocks in the ░░░░░░░░ of that What are ░░░░░░░░ doing in terms of ░░░░░░░░ capital then Brian That ░░░░░░░░ a great question Maria ░░░░░░░░ have to have a ░░░░░░░░ right now to say ░░░░░░░░ you think the economy ░░░░░░░░ going to move into ░░░░░░░░ recession base on your ░░░░░░░░ of the economic variables ░░░░░░░░ some of these uncertainties ░░░░░░░░ forward And we think ░░░░░░░░ now that the market ░░░░░░░░ overly pessimistic and it ░░░░░░░░ pricing in a recession ░░░░░░░░ the balance of the ░░░░░░░░ and we have the ░░░░░░░░ view that that s ░░░░░░░░ going to happen Definitely ░░░░░░░░ the economy s going ░░░░░░░░ continue to slow That ░░░░░░░░ hasn t changed since ░░░░░░░░ we were at the ░░░░░░░░ of the year But ░░░░░░░░ think the one good ░░░░░░░░ item that we heard ░░░░░░░░ the vice chair yesterday ░░░░░░░░ that meeting in September ░░░░░░░░ definitely going to be ░░░░░░░░ data dependent and a ░░░░░░░░ meeting And I definitely ░░░░░░░░ it s baked into ░░░░░░░░ cake what s going ░░░░░░░░ happen in June and ░░░░░░░░ But if we start ░░░░░░░░ see some improvement in ░░░░░░░░ inflation x food and ░░░░░░░░ costs the Fed might ░░░░░░░░ start to recalibrate their ░░░░░░░░ and that s the ░░░░░░░░ part that s been ░░░░░░░░ rates in the market ░░░░░░░░ ve only increased rates ░░░░░░░░ so far this year ░░░░░░░░ the overall yield curve ░░░░░░░░ thereat Ened flattened Maria ░░░░░░░░ m trying to understand ░░░░░░░░ what to do about ░░░░░░░░ So oil prices have ░░░░░░░░ falling this morning gus ░░░░░░░░ has been place to ░░░░░░░░ both in this upset ░░░░░░░░ brent and crude are ░░░░░░░░ above 3 116 a ░░░░░░░░ Saudi Arabia about to ░░░░░░░░ production extending a truce ░░░░░░░░ the rebels in Yemen ░░░░░░░░ energy still the place ░░░░░░░░ be in terms of ░░░░░░░░ capital How do I ░░░░░░░░ to Mississippi in the ░░░░░░░░ of all of invest ░░░░░░░░ the face of all ░░░░░░░░ this worry Listen you ░░░░░░░░ China which is going ░░░░░░░░ open up at end ░░░░░░░░ the month That s ░░░░░░░░ going to increase demand ░░░░░░░░ can t produce m ░░░░░░░░ think when you get ░░░░░░░░ new Congress in place ░░░░░░░░ might be a change ░░░░░░░░ terms of expanding supply ░░░░░░░░ only makes sense There ░░░░░░░░ very few places you ░░░░░░░░ go that you re ░░░░░░░░ to get an expansion ░░░░░░░░ supply Saudis want them ░░░░░░░░ overall we would think ░░░░░░░░ re going to have ░░░░░░░░ an upward bias on ░░░░░░░░ You re probably looking ░░░░░░░░ to 6 a gallon ░░░░░░░░ gas price as we ░░░░░░░░ in through the summer ░░░░░░░░ season It s not ░░░░░░░░ up for a great ░░░░░░░░ We needed to do ░░░░░░░░ It s a long ░░░░░░░░ thing that needs to ░░░░░░░░ put in place Having ░░░░░░░░ goal without a plan ░░░░░░░░ just a dream so ░░░░░░░░ said Maria okay We ░░░░░░░░ leave it there Mike ░░░░░░░░ gus thanks very much ░░░░░░░░ joining us this morning ░░░░░░░░ you Maria much more ░░░░░░░░ Coming up the Biden ░░░░░░░░ finally admitting