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This to hitting the accelerator and slamming on the brakes at the same time because what you have is on the one hand, the bank of england trying to control inflation. trying to cool demand by hiking interest rates while the treasury �*s pumping money into the economy. so i think that could lead to a bit of a standoff as the time goes on and these two work at cross purposes. we are ready saw the proposals failing as we we look at the markets. in the pound is now at the markets. in the pound is now at $1.08. bond yields have risen, which is incredibly worrying because he's planning on this 45 ...

Worried about inflation expec expectations getting entrenched. not only will inflation be transitory but it could be quite persistent and last for years. that's what they're trying to nip in the bud. they're saying we're going to raise interest rates, cool demand, try to do it just enough that they don't get into recession, just enough that price growth slows dramatically, but not enough that we actually have a painful downturn. and it's really hard to -- to get that -- to thread that needle. >> this is typically what is thought and this is typically delusional. >> it's a very challenging task...

So the fed has to do more. so, if we think about the impact of raising rates it slows demands which, by the way, is exactly what they want. the concern is the fed will have to raise rates so much it pumps the brakes on the economy. that's why we're seeing the massive selloff across major asset classes. >> just to put a fine are point on that, what does it mean for average regular people if the fed did raise rates and if they raise is more than expected? >> just look at the mortgage rates right now, right? they're closer to 6%. at the beginning of this year, it was 3%. i was talking about this ...

See a way out of this jam. >> i think you're right. rahel, i know you're speaking with a lot of top economists. bottom line, just how bad could things actually get? >> well, look, i think the likelihood of a recession increased after friday's inflation report. the job for the federal reserve was already difficult, try to raise rates to fight inflation and cool demand, but not raise them so much that it sort of, you know, pumps the brakes on the economy, not so much that it triggers us into a recession. it was already a difficult job before friday's inflation report. friday's report that showed...

The board in terms of consumer loans like car loans, credit card rates, auto loans, mortgage loans. take a look at the 30-year fixed mortgage rate. at the beginning of the year, wolf, that was at 3%. today it's hovering closer to 6.5%. even last week the 30-year fixed was 5.3%, so a dramatic spike in mortgage rates. by the way, wolf, that's exactly the point. the fed is trying to cool demand, trying to cool spending and it's doing so my raising rates and making borrowing so expensive, trying to curb demand. >> i wonder what you're hearing, kaitlin at the white house, because none of these step...