way she is claiming flat-out -- >> want to keep giving out stimulus money that is where they are we will see if gop can change anything in the new house majority cheryl brandon stay right the there next hour of "mornings with maria" begins right now. . . >> good friday morning. thanks very much for joining us this morning. i am maria bartiromo is friday, january 27, top stories right now it is just before 8:00 a.m. on east coast, today the state of inflation, federal reserve preferred read on inflation, pce index out inflation cuts into growth economy shows growth layoffs rising yesterday gdp showed fourth quarter growth 2.9% better than expected certainly lower than what third quarter showed job cults expand big tech dow,

s&p -- sap, latest to limit jobs joe biden claims his economic plans are working. >> jobs are the highest in america number in highest in american history. wages are up. growing faster than inflation. over the past six months inflation has gone down every month god willing will continue to do that. >> manufacturing jobs continue up stronger than any time in the last 40 years. i don't think unfair to say this is all evidence that the biden economic plan is working. >> a lot of talking points yesterday, markets this morning today, are trading lower, dow industrials down 25, s&p 500 down 15, nasdaq down 72 as we look to economic data this morning, and more earnings american s express colgate palmolive chevron reported this morning, chevron missed earnings per share beat

revenue colgate a double beat american express double miss amex up 5 1/4% others are down colgate losing 3 2/3% chevron is flat, stocks finished highs yesterday investors betting federal reserve going to be lowering the pace of rate hikes fed next meeting tuesday and wednesday where we are expecting a 50 basis points hike some are expecting a 25 basis points hike, when the fed announcing on wednesday. yesterday, dow up 205 two-thirds of 1% 2 nasdaq that really stole the show up 200 at close one 3/4 higher s&p up 44 it has been a great year-to-date for markets, yesterday dow seeing longest winning streak since october 28, dow, nasdaq and s&p 500, showing strong gains in 2023, check price of hoil this morning oil prices right now, are trading higher, the price of brent is 8839 up 1%, crude

oil at 82.06 a barrel up 1 1/3%, oil prices on rise are were european markets are showing some declines a mixed story in europe, as you see the ft 100 down two points, cac quarante down 17 dax lower by 30, and in asia overnight green across the board china closed for the lunar new year holiday, year of the rabbit the others moving fractionally "mornings with maria" is live right now. . >> calling for more regulation now on artificial intelligence concerns growing over open a.i., bot programs chatgpt. california congressman ted lieu wrote a "new york times" op-ed, using chatgpt, to write the entire first paragraph this is what it says, i simply logged into the program, and entered the following, right

attention-grabbing paragraph why artificial intelligence should be regulated officials charge chatgpt could make certain jobs could, completely obsolete that includes education, finance, software engineering even journalism obsolete joining us right now all hot topics cheryl casone brandon arnold, cheryl i am sure, a.i. is incredibly effective in a lot of industries we see it in medical breakthroughs in manufacturing, when you are talking about here you are talking about white collar jobs those jobs, that are gone after years of study university higher education, they are obsolete because of how effective he open a.i. is thoughts. cheryl: you can't stop innovation i think the reason we've seen uproar because of the 10,000 jobs being cut at microsoft, because microsoft said they wanted to make a multibillion-dollar investment and in a.i., use brains for a

heck the human brain looking at ted lieu op-ed in "new york times," the first line says imagine a world where autonomous weaponize rode streets perpetuate biases hackers devastating cryer attack already doing cyberattacks before chatgpt came along i think a place for a.i., consumer service with airlines, with -- with, you know, microsoft with amazon a great place. for the consumer for the american consumer when it comes to technology like this i think there is a good place for it, i think that this op-ed in "new york times" is overreach i think trying to grab a big headline i guess he has we are talking about it this morning. maria: i share concerns for sure you can't stop growth, he

innovation you don't want heavy happened of grovt stopping invacations. >> school districts blaming chatgpt on check at concerns say ease to cheat one requiring the chat bot to help with class work calling it useful merging still. >> to some extent can't put gene in bot a.i. is going to take place there are areas of concern, and, actually, chatgpt pointed some out areas i think we should be concerned about, that is military applications, a.i. that is cybersecurity are we having sophisticated attacks that exceeded to block attacks calling for regulatory action we are going to have to adapt, this is how o innovation

works, whether you know, it is things like noticing the horse and buggy to automobile or what not that is how innovation works to some extent we need to embrace it. >> maria i am sorry breaking news, kids are figuring out ways to cheat on exams in skoom? oh, my gosh. >> i am shocked. maria: well, look have you seen these technologly powered robots in china talking national security around ai it is downright scary so we will continue to zero? on that, because there are indefinitely worrisome threats i agree you can't stop he innovation, we've got much more ahead coming up how markets are as we look to inflation date did he see pce out 20 minutes' time, we've got a rally so far year-to-date for major

averages. we'll be right back. ♪ .

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>>. >> . maria: welcome back, futures indicating a decline start of trading this morning dow industrials down 14, nasdaq down 68 right now after a huge gain yesterday for the nasdaq, busy morning earnings and economic data chevron and american express reported earlier, chevron missed on earnings per share but beat on revenue, amex reported a double miss, and yet the stock is trading up this morning, by better than 5% on amex chevron

shares down 1 1/2% a phenomenal year 2022 and 21, looking to parks amazon meta alphabet all next week on earnings that is going to set tone joining me right now no u.s. bank asset management group achieve investment officer eric freedman good to see you. thanks very much for being here what is your assessment of the earnings period so far, then i want your take on what is most important next week, with those big tech numbers. >> great to see you great to be with you ultimately we think technology is still a decent spot what we will talk about that general earnings have been pretty good, that is consistent with what we think for probably next quarter, acquired ant 1/2 before things start to slow down concerned about optimistic wall street is for the full year 2023. probable a moment trade will work next couple months but, again, back half of this year

when we any things start to slow downbrate. on tnl can he feel. maria: you think you think going to be the disconnect half of the year that things slow down? there are others think the first half we heard from ceo of intel yesterday said he sees no good things in the first half of the year. >> you know technology specifically pc maria, pc demand is really, really slow that is true across the board, so, we expect more chatter from pc manufacturers as well chipmakers we think in general there is still some momentum in terms of consumer spending but we think that starts to hit a wall as we get deeper in 2023 to some going to play out we think other sectors more quickly, so places where we think investors should be, remain energy, utilities, infrastructure, places that really kick off cash flow. that is a great place to be when we kind of cash flow to

tied one over until data slowing down back half of the year. maria: good point tech had a bad year last year, of course, this year, have been really the leadership of the entire market look at stocks, microsoft, amazon, googles, announcing thousands of job cuts yet you've got stocks up in the double digits year-to-date, we are all looking forward to apple and amazon next week also meta, alphabet reporting what is most important what do you think we will hear? >> i think two key points, maria number one going to be what happens with cloud, and the migration to cloud that is momentum again you talked about innovation very thoroughly last segment enterprise spending negative xhevents about that last couple, we we think that is point of focus the other point of focus will be what businesses do in terms of cappex, and if you look at things bike cyber businesses going to keep up spending other things where businesses are really ratted cheting back

spending you see, job tlnz as well as capex trends seem other way not environment where companies especially tech companies have a blank check to write whatever they want some rationalization overall enterprise spending we think it can earnings probably invulnerable more cautious there a nice bounce but we think not a bounce that is sustainable as we continue on this year. maria: agent especially engines cloudy we heard about cloudy, from microsoft, wondering if weak spots in weak points in the cloud business at microsoft, says what to expect from amazon aws business? >> it seems maria like the almost shift to cloudy in terms of low hangings fruit a phrase i know probably used too much that already happened the next question what is incremental spend from here who is next to apply what is marginal buyer going to do in terms of cloud? we think in this intirpt where

you are seeing tech companies having to rationalize expenditures going to affect we think entire chain we expect probably a little bit of back-and-forth next couple of months and quarters, but, again, we think there is probably more of a challenging environment as we get deeper in this year. maria: inflation seems to be cooling thanks to federal reserve consistent rate hikes if he had preferred read on inflation coming out out 10 minutes or so, the pce index is coming out last piece of economic data before fed meeting next week on tuesday and wednesday what do you expecting in terms of inflation how about the fed meeting? will we get a 50 basis points hike or 25? >> yeah, we? >>. >> we think 25 over 50 we many think that in terms of nation, in a is going to be that pesky houseguest hangs what fed adamant about sticking to 2% overall target we are a long way away between n right now in terms of inflation, and 2%

we expect some moderation pcdata expect again, some slowing, of inflation, but, again, it is still higher than fed wants, is to, we think next week, in particular on wednesday, being when powell is on stand will talk about how pesky inflation is, so, again we expect back-and-forth market maria, there would be opportunity to apply shares lower meantime we spend time looking at cash flow, dividends as well as energy and infrastructure great places to be. maria: all right. we will leave it there eric great to get your take thank you so much. >> thanks ?oos morning mover colgate check check fourth quarter numbers this morning, the toothpaste maker beating on earnings per share and revenue colgate is also, eyeing up to 5% sales growth this year, not enough for investors the stock down 9% last year this morning,

declining 3, 2/3% china select committee member iowa congresswoman ashley hinson here will preview next steps as china prepares for potential invacation of taiwan, we've got all-hands-on-deck to go through the last round of data before the fed meeting next week stay with us. . >> ♪ ♪ in the honky-tonks, come on come on come on -- for catfish deep in the creek ♪ ♪

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looking at we have a presidentialat election divided importantly taiwan presidential election, and so i think those two things aspire to convince xi jinping he can't achieve this via political warfare might choose kinetic hard power options 2024 really is the year of maximum danger in my opinion. from chairman of the select committee mike gallagher joined me on this program wednesday discussed what should happen, what will happen, should china invaded taiwan joining me iowa

congresswoman member of house ways and means appropriations committee china select committee congresswoman good to see you things very much what do you make of gallagher's prediction of 2024? and what can u.s. do if that is what is the -- the base case -- prediction? >> well thanks for having me on maria, first and foremost we know that chinese communist party is our greatest threat chairman gallagher clearly realizes that i thank him for leadership in laying out a great vision for select committee on china we have to stand up to china, for portfolio postureing against taiwan tiktok as spying tool on american people the form land continue to buy up in droves across our country, so we have very real threats from the chinese communist party. that is wrifrng chairman gallagher realizes this our committee realizes this a bipartisan committee i am hopefully, we can do this not as republicans or democrats

but as americans because this is a very real threat to our country. maria: let me ask you congresswoman throwing out for a second, i mean, how are we supposed to believe, that tiktok is a threat to america's freedom given the surveillance, and the data that they are keeping on american citizens, and the propaganda spewing out? how are we supposed to believe them when the former chairman of the house intelligence committee adam schiff, uses tiktok to tell us he is running for senate? >> well, i think in this case we should be leading by exel i recognize to all americans, that it is a threat something that chinese are using to collect data on americans every single day, i don't let kids have tiktok on their phones i don't have it on my phone i don't think any american should have it on phone chinese communist party again using this to collect

data every single day. maria: i want i mean does adam schiff have tiktok on his phone? i mean that how he did tiktok video he has a app on his phone? you know how irresponsible that is every day you come on tell us how threatening tiktok is adam schiff the chairman of the committee, gets on tiktok and tells us this story that he was thrown off a committee now running for senate on tiktok? >> well, certainly laughable, maria, i think it just speaks to the lack of integrity and understanding of if real threat facing our country, so, i believe our china select keb members will warble again in a bipartisan manner republicans on committee serious legislators ready for serious policy solutions we are taking it very seriously because they are biggest threat to our country speak mccarthy led out

big less that national debt and china we are seeing chinese communist party, again is applying up in a land they are buying upland near air force bases a national security threat. continued postureing toward taiwan putting forth meaningful policy solutions to tackle not only that but other he go political issues surrounding china as welcome. >> is it, by the way, tiktok, is also being used, to lure young kidsity get away drivers adborder the drug cartels taking hole billions and billions of dollars every week, on human smuggling and drug trafficking advertising their you know, business quote/unquote on tiktok getting yung kids to drive 18-wheeler, 22 wheeler to take people from the border to houston, 77 democrat lawmakers wrote to president biden, i mean democrats they complained to biden that his border policies are too strictest no

kidding! here is what alexandria ocasio-cortez had to say about all this yesterday, watch this. >> the right to seek asylum is enshrined in domestic and international law. and united states is a shining example the administration is making effectively impossible to seek refuge at border president biden should listen to courts human rights activists reverse course we know who is behind wide-open border what are thoughts about your colleague alexandria ocasio-cortez, she just wants free-fall 5 1/2 million illegal migrants breaching into american border not enough she wants a free-for-all wants open border to say that way. >> it is very clear president biden and his administration have listened to that group of 70 on their border policy because border is effectively still open 250,000 illegal immigrant encounters in december 38 people on terror

watch list since october this month alone already 10 swefrntdz in del rio sector when you look at statistics sobering making our country less safe, again they have made it very clear they want an open border but i think time president biden and our so-called, border czar i am convinced should take that a off résumé our vice president has not taken this seriously, we need to start taking this seriously at the southern border. >> he hasn't taken any seriously in fact congresswoman i would like to know what is to growth plan? of the biden administration? he went after republicans yesterday, and claims his economic plan whatever that is is working watch this. >> -- raise taxes on working middle class people in america by passing a national -- taxing every item from groceries gasoline clothing supplies, medicine, even big tech -- rent cars i thought i heard today that day speaker of the house says not sure he is for it now.

>> -- father for the sin, that -- >> congresswoman what is biden's growth plan do you know it? >> well, i think certainly laughable trying to distract from his economic failures that drove our country into chase catastrophic but not laughable is prices that i and americans pay every single day at general revenues store days tank emergency bills republicans going to lay out agenda reinhave iing rate economy protect small businesses working families you can count on us to put a check on biden administration checkbook that has been spending out of control. >> what will we get that plan. >> working on it right now you are seeing committees do their work work budget committee lay out plan to reduce spending appropriations as well, so, you will see a solid plan you saw our commitment to america, obviously, of our policies, that enacting to take tax cuts permanent for small business,

around those lines where we're going with economic plan. >> volatility has begun, we are waiting on pcindex for december reading congresswoman you are sticking with us ashley, to react to the december pce index coming out right now markets are up and down trailed volatility. cheryl: get a lot of it starting with spending in income data, in particular, maria let's start with that the estimate was going to see decline .1% we saw a decline .2% of the for income and spending remember not inflation justified information breaking right now you do taking more leg down income, we saw a gain of .2% a gain .2% that was in line, with expectations. now going through to look at the pce price index this is the fed here goes the study okay month-over-month, a gain . %, a gain .-- excuse me

-- 1% apologies wrong chum cheryl, .1% month over month pce price index year-over-year gain 5%, year-over-year, december, 5%, now core number this excludes food and energy volatile, indices if you will in line .3% month-over-month .3%, the core pce price index year-over-year in line, 4.4%, so numbers are in line right now, again now dow flattening outs to go back through give you this so much on pce, others we did not have estimates, culmination consumption dropped .2, in line for income a jufrnl .2% month-over-month headline pce price index .1 up, up 5. year-over-year, headline number pcli.e price index core month-to-month, in blien, a gain . %, core year-over-year,

4.4%, maria, you were talking about fed decision that is february 1 next week, and two year-over-year numbers headline and core on pce the ones fed is going to look at these are last pieces inflation data we get before the meeting, next week where we see 25 basis points or more? we shall see back to you. maria: all right cheryl, while you were talking markets were trading, said and done that is flat performance we got futures right now showing a decline start of trading because it looks like much of this is pretty much in line with expectations, core become being up 4.4 personal income up 2/10 core up 3/10 to break it down committee for responsible budget maya macguineas. >> thomas fip ipson iowa congresswoman house appropriations committee

member ashley hinson joining us all morning long cheryl casone brand owner arnold thank you for being here maya macguineas i want to kick things off with you your take on inflation numbers, and most importantly, get your take, on what needs to be done, to rein in this debt given the fact, that now the treasury is doing extraordinarily moves so that u.s. can continue paying obligations. >> good morning nice to be with you, yeah congresswoman was just saying before, people are pointing ought that we have two major threats right now china, and the debt, debt is one we focus on there is a lot to focus on, the numbers that we're seeing today confirm what we basically know which is inflation is coming down slowly but still a very significant problem. and one of the important things to keep in mind about inflation is that when you have inflationary environment as we are now, you do not want to borrow more you want your debt smaller and borrowing smaller not larger that said

past year has been very bad for fiscal policy many years bad for fiscal policy durings inflationary period we continue to borrow, and that exacerbates the situation. so where we are right now we really need to focus on what ways we can control borrowing, not add any more to the debted, i -- i would say first objective is no new borrowing, through legislation, or executive orders should take place in have 2023 unless perhaps an emergency basically, no new borrowing, and we need to focus on fiscal situation where debt is share of gdp is near record levels, we need to figure out what changes to make to bring that debt down one thing i will say you and i had talked a lot about the very critical need, of fixing social security medicare, perhaps most worried about right now as i am hearing politicians promising not to talk those programs but straightforward we have to. we don't have the revenues coming into to pay for promised best we need to make

changes to strengthen them tough politically we need everybody to be honest about that we need that to be something we focus on because the deadlines are closer as we continue to kick the can. maria: a great point maya, you are right politics has completely hijacked this whole conversation, it is impossible for these politicians to be honest about the real threats that we face, in a political environment, we broke the news last week, that senator joe manchin wanted a meeting with kevin mccarthy to actually identify areas to cut but white house is not going to have any discussion around the debt ceiling debate thomas we know that, the white house, said debt ceiling will be raised that is that, unfortunately, we know we can't you know have the market, get disrupted by worries that u.s. is not going to pay bills, they are not doing any efforts not making any effort to actually find areas to cut. in terms of spending.

>> yeah, the big issue you know, republicans aren't -- in pretty bad bargaining situation we know we're not going to default with defaulting raise spending cost of debt going up dramatically actually blown up exponentially with higher debt levels higher interest rates when covid -- you know declining interest rates kept svbz costs constant even though raising debt now the reverse, so we have -- they are in a situation eshlly don't have a credible threat in negotiation threat going forward. >> tell us about that you are in middle of it on appropriations committee as well. >> absolutely i hear, this conversation, centering around finding places to reduce spending absolutely, we are doing that, we are already having those discussions, meeting with our subcommittee chairs about places where we

can reduce spending, of course, we need to be serious about the issues you mentioned about our programs because, they will run out, about 11, 12 years my understanding that if we do nothing next couple years we will see automatic cuts i think definitely worrisome time for congress to get series about that issue, series for our seniors series for americans, so, we do have a number of looming issues i am hopeful president biden will come to the table we cannot continue this spending spree that we've seen out of democrat controlled congress over the last two years a dma democratic administration credit cards maxed out looking to spend every nicel, dime they want the same result right they want us to continue spending without making think changes, so, it puts our country on even more dangerous path, we were discussing, the threat of fortune, what that looks like for us, balance two things together, puts us in a very precarious position, we should not be using this, as a political football. maria: i mean yesterday, we

spoke with chairman of the house ways and means committee jason smith we will go back to 2022 spending levels, that sounds great going back to 2022 spending levels. but if you go back to 2022 spending levels that is a 75-billion-dollar cut in defense spending. are you going to cut defense spending while china is about to invade taiwan? >> certainly wouldn't be my wrmgs i think we need to take a look at programs that have been, for instance kor marineing out of control no check appropriators of committee writes check we have committees that have been authorizing spending, and looking at programs, they have done nothing to continue that oversight on programs that don't need to exist that is going to be a large focus of our republican majority, taking a look holistically at all of how, we've allowed that to continue to go out of control, then coming up with real solutions to present those cuts we are going to pass our bills other of house, and then send them to the senate and i am hopeful that they will take it as

serologies as we are because, again these are serious problems facing our country. >> maya same question for you, let me play the sound bite from chairman of house ways and means with me yesterday on this program watch this. >> we are going back to fiscal year '22 spending think about this maria that is what we were spending just over weeks ago before they passed 1.7 trillion-dollar spending bill it wasn't that long ago not that much to ask there is no guarantee what is going to be cut because you have to go through appropriations process look at defense nondefense but there are numerous ways, to not, not cut defense and cut a lot of nondefense discretionary be able to hit it fiscal year '22 numbers. >> maya what is the word? something has got to give right? so if you don't want to cut defense where are the low hanging fruits here? is it just social security and medicare or are there things on the fringe that can

actually move the ball forward? >> a first off i wouldn't -- medicare, close to low hanging fruit there is going to be so much demagoguery pushing back, going to spin up all members get them terrified, talking about cutting benefits when they are not i think the problem with fiscal responsibility there is no to have low hanging fruit this is really hard the reason going to be so hard is we borrowed trillions in the past years, we borrowed under trump when economy was strong borrowed there covid when we didn't need to under president biden incredibly fast rate when and any was strong sflairgs and we should not this tax made worse by spending expresses pointing fingers made worse with all around by politicians in general we have to talk this through try to make changes i agree white house needs to show up have discussions this is not a i am not going to talk about what to do, nobody

should be threatening defaults we need a dfrgs what to do about fiscal situation in terms of spending caps getting back to levels going to be challenging, it is is dobl not if you take defense off table there is a lot of places we could have savings a lot of new needs i leave that to defense experts how much standard of cares you can get what we can do, caps if too strong congress will not stick they need to be reasonable level make sure that spending doesn't grow, as quickly as it has been in the past years, there are also many other places we need to look for savings, healthcare is one area there is a lot of things impacted bipartisan ideas we can do maybe social security separately so doesn't become so politicized but we need to make that so he will vent so we don't have across the board cuts, i think everything on table you know me a go get a big deal revenues on table as

well, i think that brings all parties to the table, but if we just start small, there is definitely place for spending capps may be commission to look at important programs to you ho strengthening medicare social security where trust fund don't go insolvent. >> we need to communicate to ensure people understand, what is behind this debate, because if you think markets are volatile now, wait until we get into the middle of june, if this issue is not resolved, and there is a serious worry, about the u.s., paying its debt and paying obligations, we've had a pretty tame pce index this monk markets not moving much dow industrials up 15, nasdaq down 41 get to cheryl get revisions for november. cheryl: there is policy, american consumer, we got revisions for november i think very interesting, they actually for spending revised it down, to .1% that is

negative, it had been a bounce .1% income revised lower talk about this november, december american consumer spending less, and making less money and spent less money assessings rate went higher in december savings rate .4% in this new report, and november savings rate was 2.9% many market watchers come on to show tell us, that the personal savings rate is something they closely watch because that is maria the u.s. economy, another data point i want to bring up fed funds futures right now we are looking at the expectations now for 25 basis point hike next week, and then one more, then the next meeting after march 22 so again revisions for november showing, that people made less spent less money that is not the story we initially got for november data, of course, december we just broke this morning, look. the american consumer is starting to flatten out maria

flattening out. maria: yeah, that is why we're seeing rally in stocks because of the expectation that we will get a 25 basis point hike, as opposed to 50 as opposed to 75, brandon we will seal what fed brings on tuesday and wednesday next week this is all about the fed, this stage gain for averages year-to-date nasdaq up 10% since january 1st. >> i agree with cheryl more 25 basis points conversation the concern i go walk to what maya said earlier, spending has driven inflation no question about it, and despite all the actions of the fed extremely aggressive actions by this fed, we've seen congress basically rowing opposite direction pushing trillions and trillions out the door in terms of increasing spending 25% almost over the past two years, we need to put of course on the final, that means social security, that

means medicare that means defense if we take items off the table we are not going to be able to make this sufficient cuts we need to get nation under control, try to back down, below 2%, where it was pre-pandemic. maria: congresswoman hinson do you agree with all of this? >> i think what we need to be looking at here is those numbers that we were hearing about from maya look at savings rates, the impact on our consumers back on constituents, back home that spending that has been out of control over the last two years, is a direct result of democrat policies that are failing the nern consumer, iowans tell me when they go to grocery store more expensive to make breakfast holding back money at home worried about make utility bills heating homes in the middle of winter, absolutely we need to rein in our spending get this under control, in congress, also we need to take a look at the riding sigh driving costs for consumers businesses over regulation, we are going to see, a biden administration

now that we have a republican congress, try to be more aggressive, with rules and executive orders that is something we are absolutely watching closely because as you consider all these things, in the pie of solutions, the -- the accountability here for the biden administration is going to be absolutely critical, to make sure they don't try to circumvent congressn and role in this discussion. maria: it has been all about fed doing anything on inflation, congresswoman, the federal government has not helped fed at all, with all this new spending, let me ask you, has all of the covid money bn spent that was appropriated congresswoman that 1.9 trillion dollar package march 2021 was root because things out of krom in terms of spending in this last two year-old period. >> absolutely as a result of that we've seen inflation numbers with increased government spending to local level skyrocket president

biden is inflation president i want to be very clear about that economic policies have taken our country in the wrong direction, inflation is not transitory inflation is persistent impacting every single day bottom purchases biden, i like to talk about this when cost so much to make breakfast eggs my son ate five eggs i almost had panic attack price has gone up so much american family facing that we need to get real the amount of spending we saw happen in the last two years trillions and trillion dollars of dollars, clearly, sent our country down wrong pact we need to make sure money not being spent is clawed back however we can do full accounting of that many states municipalities sitting on cash. maria: if biden is inflation president are you going to be the debt control congress? >> we certainly hope so, again that is our economic plan maria is to rein in spending

out of control spending provide relief for american working faechlz, take a look at regulatory environment get serious about problems we need to be a check on the out-of-control checkbook that we've seen over the last two years from a democrat controlled could congress democrat controlled administration. >> what is joe biden's growth plan? i feel that there is not an actual growth plan that has been kun indicated to american people i roifl selling oil from strategic petroleum reserve beyond that what is growth plan. >> i think largely missing the sad part we've seen despite the boosting of great economy seen real wage declines last two years, uptick last couple last month we are going to see probably more real wage declines not because prices are raising faster than wages

but because wages probably take a hit we are now coming into sort of this is kind of been a boy cried wolf session economists thousand helping q3 last year then q4, now q1, people pushing into the later part of 2023. i think, you know, it is we're starting to see with december retail sales down, industrial production down housing obviously, down, et cetera, now today revised consumer spending it is starting to look like we're finally into this downturn, and which is going to be very sad for real wages going forward you are right, i don't think they have any plan, to essentially reverse that. maria: yeah, that is what i have been looking for, maya can you identify a growth plan? >> -- >> talking -- >> talking about debt. >> i would think

administration would say growth plan is a whole lot of new spending they call investments have a that is what with you call spending you like would argue willing to pay with a lot of taxes on very rich we've seen that in president's budget budget will come out soon it will be late unfortunately but will come out soon i think what you have two incredibly different visions how you grow economy, they are different preferences legitimate i would say that growth fueled by spending and borrowing in if inflationary period not going to work that is a big problem something you asked how is is house going to fair during this i feel you encouraged to see how much the fiscal issue has been brought up, in beginning weeks, i have been really encouraged that chairman eric chairman of the budget committee seem very, very focused on putting out a budget, let me reminded country didn't have budget committees least budgets

reckless cannot run without a budget hopefully the summit will do same be very different paths then we do work supposed to do assessing trade-offs firingings out what we want to spend on if so are we willing to pay rather than borrow i think important that discussion happen well in advance of the debt ceiling limit like last moment let's not wait to last moment have discussions now let's not even mention default should not be on tablet take really seriously that this is a great opportunity to make some much-needed fiscal improvements. >> i think investors would like to see as well your thoughts. >> absolutely what we need is a comprehensive strategy, to assessing our national debt the fact democrats won't gauge president burying head in sand frustrating a week ago president was croweing about

reducing the defendant to tune 350 billion dollars, now i think that was completely disingenuous but back then way back a week ago he thought deficit instruction was a good idea, now with republicans trying to engage in conversations, he is saying we can't do so because we can't risk our nation's credit woreness i think riled our nation's credit worthiness improved, broadly speaking the economy will be strengthened if we reach bipartisan consequence to put country ban okay track we need to be. >> what arrogance, they come up with come might have had solution to roof is absence of

leadership 31.trillion dollars national debt we maxed out credit cards we need to game in conversation how to fix this enormous problem. >> we are looking at market that is fractionally lower right now, showing major gains year-to-date because of this expectation that the federal reserve is almost done, are you going to point out one thing jay powell has said over the last year he said the one mistake that the volcker federal reserve made when they were in charge is they started cutting rates too soon, it is really important to remember what jay powell said because all of these fan fantasies jail going to raise rates then cutting rates i think misguided your thoughts on federal reserve moves in 2023. they are not going to turn offer the second half of the year said it, it already the mistake volcker made cutting too soon.

cheryl: i think a pie-in-the-sky wish for watchers want to see cheap money back good for market but i think you are correct jay powell isn't jumping on that banned wagon collateral damage for next fed meetings february 1 next week march 22, may if he is done, on may 3, maria, now going into summer for markets traditionally unevent full time for markets, if that is the case this market may not start to really feel the effects of a positive way of the pause on rate hikes until september. after 20 years covering markets business news i just i think i have a feeling that we're not going to see markets turn around until fall i don't think paul is going to start to cut rates in the fall i don't see that prapg i agree -- >> i am not worried about the market having a quiet

performance i am worried about a major sell-off, thomas things are down in a big way you are seeing job cuts not just in big tech but dow chemical, others, ibm, microsoft, we know all of the big tech companies already announced layoffs how much worse than this economy get? >> as the fed starts to trail off here? >> well i think, a little bit surprised yesterday with lower than expected claims report on unemployment claims i think surprised some people i think still waiting for this, massive hit to take place the question sever or mild i think fed is they are going to -- about a 25, 25, next two meetings seems that is what you know, futures markets are expecting after that you are right i think going to be a lot better for the markets

going forward but i think, you know, in general, when you say which is you this going to hit i think we kind of -- proved 2022, proved how difficult to predicting business cycle even for people who mike money when right lose when wrong let alone fed timing price controls credit markets zero incentive financial incentive to get it right, that is why a lot of economists like me are skeptical whether fed can time things or not. because it is so difficult to predict the cycle. >> interesting maya i know lawmakers pick up the phone and call you and committee for the responsible budget for some ideas, so let's talk solutions for a second, in final couple minutes, maya, because, i have been searching for a growth plan, and that there is none out of this administration can growth really take us out of this? what are most important items you want to highlight in blast few minutes, maya, in terms of

lawmaker coming up with solutions, to alleviate this 31.4 trillion in debt? >> absolutely. thank you. would love if it they would do a number of these things. we need to put in play of did spending ceps on discretionary portion of the budget keeps from excessively high growth rates they needed to be reasonable but there, should be for to long term next decade, healthcare a number of areas savings we can look at medigap programs equaling coast of procedures a none of things, both like in budgets take on some savings in healthcare. >> on social security we need to look at raising retirement age this program started turn it age was 65, life expectation was 63. gradually to 67 we live in 70s

80s for young people change in retirement age nobody is affected in the program today so we need reassure people not let owed groups get them worried look how we calculate inflation payroll tax on cap on social security as way to get more revenue into the program, we need to look through our tax code for a lot of special tax breaks we lose a trillion 1/2 dollars per year tax breaks many paying people to do things they would o do any now because inflation in areas we are trying to control may be a longer list than up wand we have to do this none is easy guess what always easier to give tax cuts or spending increases but there are things we can do, just bring deficit down in and of its a growth plan because excessively high levels of debt marlz our economy, harms our budget the single fastest growing part of budget interest fatalities like the congresswoman said before it weakens geopolitical position

at very time when we cannot be more vulnerable we need to really look how to be secure as role of leader until the world getting this debt under control national security issue as well. maria: yeah sure is all right great conversation everybody we so appreciate your time, thank you so much, dow industrials down 24, s&p down 15, nasdaq lower by 66 maya macguineas thomas finish upson ashley hins owner cheryl casone brand owner around untold my pleasure honor being with you today have a fantastic weekend i will see you tonight on maria bartiromo wall street 7 pm eastern sunday amongst fox news channel a hot show join us have a maria: i hang in my closet upside down on saturday z. [laughter] lauren: i'd love a picture of that, maria. good morning, everybody, i am lauren are simonetti.

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