This is CBSI in the world. I'm John Batcher, the chairman of the Federal Reserve

Jerome Powell before Congress looking ahead for monetary policy for the sticky high inflation

of these last months for the challenge to control inflation at the same time not to

damage employment. In light of a coming recession we're told, I welcome Jim McTay. Many years

the Washington editor for Baron's magazine watching this strange dance of monetary policy

and the Senate and the House and the White House. Here we go again. Jim, a very good

evening to you. The headline reads, Jerome Powell says Fed is prepared to speed up interest

rate rises. Subhead. Chair says Fed is likely to lift rates higher than previously thought

to fight inflation. Translation. What does this mean for the markets? What does this mean

for the pending recession? Good evening to you. Good evening, John. What it means for the

markets is that the amateurs, those optimists who have been pushing stocks higher have suddenly

run into a wall of reality. They were betting that the Fed's interest rate hikes to date

were adequate to curve inflation. Jerome Powell is essentially admitting that the Fed was

way behind the curve that the interest rate rises so far have been ineffective and that

he may have to raise rates much higher than he anticipated and that they may remain elevated

for many, many more months than anybody ever thought. It's extremely bad news for the stock

market. It's great news for savers because it means great sun certificates of deposits,

treasuries, safer places to park your money are going to have attractive returns and you

won't have the kind of risk that we've seen in the volatile stock market over the past four

or five years. Do I recall correctly Jim for many years in our conversation about these events

and about the Federal Reserve's near zero interest rates? You would calculate each year

like Santa Claus in reverse how much money was not available to people who were savers and how

...