RUSH TRANSCRIPT You re ░░░░░░░░ at a report this ░░░░░░░░ Stu we better settle ░░░░░░░░ what the Fed s ░░░░░░░░ to do Who better ░░░░░░░░ settle it We ve ░░░░░░░░ two guys with us ░░░░░░░░ morning Adam Johnson watching ░░░░░░░░ market and economist professor ░░░░░░░░ bremburg Adam what do ░░░░░░░░ think the market will ░░░░░░░░ I m in the ░░░░░░░░ seat being the optimist ░░░░░░░░ the bull It s ░░░░░░░░ right These are the ░░░░░░░░ that test us and ░░░░░░░░ over the next couple ░░░░░░░░ people will come on ░░░░░░░░ show and say the ░░░░░░░░ is broken and I ░░░░░░░░ offer a different narrative ░░░░░░░░ the market is not ░░░░░░░░ but what we re ░░░░░░░░ to deal with is ░░░░░░░░ that s much nastier ░░░░░░░░ persistent than we thought ░░░░░░░░ certainly than I thought ░░░░░░░░ I m not selling ░░░░░░░░ I m looking further ░░░░░░░░ the road We will ░░░░░░░░ come through this and ░░░░░░░░ would also tell you ░░░░░░░░ clothing cars and commodities ░░░░░░░░ down in this inflation ░░░░░░░░ but admittedly in this ░░░░░░░░ right now today none ░░░░░░░░ that matters because the ░░░░░░░░ are in control I ░░░░░░░░ concede that Stu professor ░░░░░░░░ to you Can you ░░░░░░░░ the Federal Reserve easing ░░░░░░░░ on aggress I rate ░░░░░░░░ with an aggressive rate ░░░░░░░░ with numbers like this ░░░░░░░░ do you do it ░░░░░░░░ numbers are coming in ░░░░░░░░ than expected People don ░░░░░░░░ need the numbers to ░░░░░░░░ what they re feeling ░░░░░░░░ knows this is where ░░░░░░░░ is but I m ░░░░░░░░ at that core number ░░░░░░░░ that means the tentacles ░░░░░░░░ inflation reached far deeper ░░░░░░░░ the economy than the ░░░░░░░░ ever wanted to admit ░░░░░░░░ that the Fed even ░░░░░░░░ to admit and now ░░░░░░░░ feds probably I think ░░░░░░░░ to overcorrect on the ░░░░░░░░ of breaking things further ░░░░░░░░ in the market but ░░░░░░░░ the economy Stu okay ░░░░░░░░ to you Adam Where ░░░░░░░░ we put our money ░░░░░░░░ a day like this ░░░░░░░░ month like this or ░░░░░░░░ a time like this ░░░░░░░░ do you put your ░░░░░░░░ There s a temptation ░░░░░░░░ just sell everything and ░░░░░░░░ can understand in a ░░░░░░░░ like this where people ░░░░░░░░ upset they re looking ░░░░░░░░ 401ks the NASDAQ is ░░░░░░░░ 35 year to date ░░░░░░░░ is not the solution ░░░░░░░░ quality solid companies that ░░░░░░░░ earnings and many of ░░░░░░░░ are now trading in ░░░░░░░░ mid teens multiples We ░░░░░░░░ talking about pes of ░░░░░░░░ 14 15 times That ░░░░░░░░ historically actually within the ░░░░░░░░ 14 to 17 times ░░░░░░░░ the historic range You ░░░░░░░░ me what are you ░░░░░░░░ with your money I ░░░░░░░░ not selling anything but ░░░░░░░░ am staying absolutely long ░░░░░░░░ the high quality companies ░░░░░░░░ have already sold the ░░░░░░░░ smaller ones and I ░░░░░░░░ rotated into higher quality ░░░░░░░░ even the higher quality ░░░░░░░░ have gone down But ░░░░░░░░ they re also the ░░░░░░░░ that will come back ░░░░░░░░ yes question of course ░░░░░░░░ when Yes of course ░░░░░░░░ s a question of ░░░░░░░░ and that s a ░░░░░░░░ fair question and time ░░░░░░░░ is a very important ░░░░░░░░ for anyone If you ░░░░░░░░ the money next year ░░░░░░░░ the next six months ░░░░░░░░ probably ought to be ░░░░░░░░ cash If you have ░░░░░░░░ three four five year ░░░░░░░░ frame this is a ░░░░░░░░ to buy That sounds ░░░░░░░░ and insincere and Adam ░░░░░░░░ go out and buy ░░░░░░░░ the dip I have ░░░░░░░░ money or don t ░░░░░░░░ any money left I ░░░░░░░░ that But that is ░░░░░░░░ I am not selling ░░░░░░░░ m focused on the ░░░░░░░░ names Stu lauren the ░░░░░░░░ between two thorns Lauren ░░░░░░░░ feel bad for senior ░░░░░░░░ watching nest eggs go ░░░░░░░░ and struggling to put ░░░░░░░░ on the table The ░░░░░░░░ Reduction Act was supposed ░░░░░░░░ bring the price of ░░░░░░░░ done it s gone ░░░░░░░░ but up it s ░░░░░░░░ 28 right now Is ░░░░░░░░ really out touting tout ░░░░░░░░ Stu yes he s ░░░░░░░░ Los Angeles Who handles ░░░░░░░░ stuff Two in a ░░░░░░░░ Stu they wanted to ░░░░░░░░ him out before the ░░░░░░░░ to tout whatever they ░░░░░░░░ going for him for ░░░░░░░░ Democrats in November That ░░░░░░░░ how you know they ░░░░░░░░ t get it on ░░░░░░░░ and keep scheduling these ░░░░░░░░ on the day the ░░░░░░░░ come out and think ░░░░░░░░ re going to get ░░░░░░░░ and they done Lauren ░░░░░░░░ s the last inflation ░░░░░░░░ before the midterms That ░░░░░░░░ all you need to ░░░░░░░░ Stu I m going ░░░░░░░░ move onto discuss the ░░░░░░░░ if we re in ░░░░░░░░ or whether we re ░░░░░░░░ to get into one ░░░░░░░░ House press secretary Karine ░░░░░░░░ Pierre walking back more ░░░░░░░░ from President Biden Should ░░░░░░░░ American people prepare for ░░░░░░░░ recession No look they ░░░░░░░░ been saying this now ░░░░░░░░ six months they say ░░░░░░░░ The president has been ░░░░░░░░ consist has said multiple ░░░░░░░░ in the past while ░░░░░░░░ is possible he does ░░░░░░░░ think there will be ░░░░░░░░ recession Stu okay do ░░░░░░░░ think we re in ░░░░░░░░ recession He has no ░░░░░░░░ what he s talking ░░░░░░░░ Yes I think we ░░░░░░░░ in a recession the ░░░░░░░░ is will it deeper ░░░░░░░░ or not Stu what ░░░░░░░░ you think Yes it ░░░░░░░░ the inflation report is ░░░░░░░░ and the feds are ░░░░░░░░ rates more than they ░░░░░░░░ to and him saying ░░░░░░░░ should prepare for a ░░░░░░░░ shows he lives in ░░░░░░░░ world that nobody else ░░░░░░░░ in This is a ░░░░░░░░ election and if you ░░░░░░░░ trying to root for ░░░░░░░░ party the income Ben ░░░░░░░░ and it controls both ░░░░░░░░ right now you re ░░░░░░░░ going to say that ░░░░░░░░ are getting worse You ░░░░░░░░ going to say they ░░░░░░░░ getting better I mean ░░░░░░░░ s the whole story ░░░░░░░░ s spin central Stu ░░░░░░░░ you re caught because ░░░░░░░░ are obviously not getting ░░░░░░░░ No they re not ░░░░░░░░ he thinks people are ░░░░░░░░ because they re paying ░░░░░░░░ and know and it ░░░░░░░░ trying to put one ░░░░░░░░ on them and I ░░░░░░░░ t think it works ░░░░░░░░ will say the following ░░░░░░░░ re already in a ░░░░░░░░ We ve had two ░░░░░░░░ back to back quarters ░░░░░░░░ shrinking GDP that is ░░░░░░░░ the definition of a ░░░░░░░░ I will tell you ░░░░░░░░ Brian you and I ░░░░░░░░ see the world differently ░░░░░░░░ it s going to ░░░░░░░░ to be the narrowest ░░░░░░░░ recession that any of ░░░░░░░░ have seen I hope ░░░░░░░░ re right Just as ░░░░░░░░ is at 50 year ░░░░░░░░ unemployment is at 50 ░░░░░░░░ lows I would argue ░░░░░░░░ because we have so ░░░░░░░░ people employed and as ░░░░░░░░ re going to find ░░░░░░░░ over the next few ░░░░░░░░ earnings aren t as ░░░░░░░░ as we think we ░░░░░░░░ are resilient enough the ░░░░░░░░ I think is resilient ░░░░░░░░ to withstand some of ░░░░░░░░ rate hikes you re ░░░░░░░░ I want Adam to ░░░░░░░░ right But is it ░░░░░░░░ enough to withstand bad ░░░░░░░░ after bad policy after ░░░░░░░░ policy That s a ░░░░░░░░ point Stu last one ░░░░░░░░ you put the 10 ░░░░░░░░ and two year on ░░░░░░░░ screen Interest rates have ░░░░░░░░ straight up What I ░░░░░░░░ getting from this is ░░░░░░░░ 10 year up 406 ░░░░░░░░ that means mortgage rates ░░░░░░░░ to go well above ░░░░░░░░ Where am I going ░░░░░░░░ on that That would ░░░░░░░░ good news and