I'm John Batcher, the Wall Street Journal of Dittorial. Inflation isn't conquered yet. Real

wages have only begun to increase, and the Fed isn't done. This is the journal reminding

those bull cases on Wall Street that it's not off to the races. The Federal Reserve

says 2% is a target. However, I welcome Verenick to receive the Mercatus Center my guide

on the task of the Federal Reserve. Verenick, the impression we get from the inflation

number, the CPI. There's always more data coming. The CPI is that the 10 hikes in the last

year are finally resulting in a reduction of the inflation number. Now at 3% although

the core is much higher at 4% or 4.1. The Wall Street Journal sounds like a school

marm saying, do your homework. Is it warranted to remind everyone that inflation is not beaten?

Good evening to you. Good evening, John. Yes, it is warranted because as you and I have

talked about many times, Wall Street would have wanted the Fed to stop fighting inflation

seven, eight, nine months ago. They've always been against this and there's a tremendous

amount of pressure on the Federal Reserve to actually stop fighting inflation. And the

problem is that if they stop too early, it's going to go up again. And as you said, core

inflation is nowhere near where we want it. And I assume that the market has already priced

in a fair amount of the future hikes because people are expecting that they will be future

hikes. So I'm just kind of, yeah, it's important to remind people that it's not done.

There is a term, a metaphorical term now being banded about soft landing, meaning that

the Fed is like, it's like a fairy tale. It's not too hot, not too cold, just right. Is

that possible? It's hard. It's hard. We're in a situation that we haven't seen before where

interest rates have gone up quite dramatically. And yet the impact of the traditional

big recession impact that we would see with such a rapid hike has not taken place.

...