Good Wednesday morning. Welcome to Squawk on the Street. I'm Sarah Eiffin with Carl Continia and David Faber. We are live, as always, from post-9 of the New York Stock Exchange. Coming up, day two of Fed Chairman Kevin Warsh's testimony on Capitol Hill, today appearing before the Senate Banking Committee to face lawmaker questions. We'll take you live to Washington in just a moment. Plus, we'll talk about the headline sending shares of PayPal sharply higher this

morning, including new reporting from our David Faber. And former NEC director and current IBM vice chair,

Gary Cohn with us, his read on the economy, the market, and much more. But guys, we got a

PPI report, and we had CPI yesterday. And so inflation is top of mind as we await Kevin Warsh,

the Fed chairman on Capitol Hill day two. He really did not say much yesterday as we expected, right?

The guy does not want to give forward guidance or any hint of what he's going to do. But here was the

only quote that I thought was notable as far as how he's thinking about inflation and policy.

He said, quote, it's one data point. This is in regards to yesterday's CPI number, which was better

than expected. It was cooler. The market took it as a release. He said it's one data point. The reason

I created a task force on data is I do not want to overread or cherry pick data. There might be some that look

at this morning's data and say, mission accomplished. Everything is swell. That is not my view.

Does that mean that he wants to raise rates? Who knows? We don't know exactly what he means,

but it means that he's not satisfied and that the inflation fight is not

over just because there's a good data point, that he's not reading too much into it.

That was the only notable thing.

And again, it doesn't really point us one way or another on policy.

As far as what we got today, more really good news.

I mean, PPI, this is wholesale inflation.

What's being passed on at the wholesale level, it's often seen as a precursor to consumer inflation with a negative number on it.

I mean, even economists with the sharp decline in oil prices expected a 0%. We got a negative 0.3%.

That was good. We also got a revision for the month before, a little bit

lower as well. That was good. That was a hot month because of oil prices. Here's the problem.

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