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more than a year. now, this decision comes just after that new data showed inflation had cooled to its lowest levels in two years. let's bring in cnbc's dominic chu. the fed didn't raise rates but didn't rule out more rate hikes to come. my question is when could they actually start cutting rates? >> well, ana, it's not going to be anytime soon. that's the message coming from federal reserve chairman jerome powell. it's probably the reason why the fed chief spoke deliberately about why the fed chose to pause or skip this rate hike at this meeting and hint at the possibility, as you point out, of more rate hikes later on this year. so he and central bank policymakers are trying to make sure that the markets, investors, lawmakers, everyday americans realize that inflation still remains a problem in this country and that the fed will not stop raising rates until unwanted price increases in the overall economy start to show some signs of really retreating as you point out. now, this pause or skip in raising rates breaks a string of
the economy. it's also going to weigh on hiring and inflation, and the fed acknowledges that the extent of the banking crisis is uncertain. but the fed is making clear through today's move that they are definitely focused right now, despite all the banking pressure on getting inflation down. kind of outlined a little bit what the fed was saying more broadly about its economic projections there. is there anything else you want to kind of expand on there that people should know at home? well, the yeah, so that the fed also changed its assessment on the economy somewhat up there, making clear that the economy still running hotter than they wanted to. they say that job gains have quote picked up in recent months. they're also getting more pessimistic. in some ways on the inflation outlook. they took out a line that previously said inflation has eased. they say inflation remains elevated. the fed also issued new projections on where they see the economy going. and importantly, the fed didn't really change where they see interest rates going. they still think they're going to have to
our democracy. >> reporter: the house select committee says giuliani fueled the former president's inclination to they're victory. >> president trump rejected the advice of his campaign experts on election night, and instead followed the course recommended by an apparently inebriated rudy giuliani to just claim he won. >> reporter: giuliani's spokesperson denies the committee's allegations. in 2021 federal prosecutors in new york, an office giuliani once led, raided his office in connection to business dealings in ukraine. that fizzled. >> the fact the fed didn't bring charges has to encourage him. >> reporter: giuliani may not be as lucky in georgia where prosecutors say he is a target of an ongoing criminal probe examining efforts to overturn the 2020 election. >> what are you expecting to talk about here today? >> well, they ask the questions, and we'll see. >> reporter: he was ordered to testify before a special grand jury this past summer. >> the man who used the rico
we were seeing some gains, and then right at 2:00, we're now at about where we started the day, dipping in single digit its into negative territory. matt, i know you don't have this in front of you, but for a market that was doing pretty well before 2:00, what would be the reaction now that would see that drop-off, a drop off the cliff here? >> well, i think it would probably be because the statement, as i mention the, was identical. the fed didn't acknowledge anything about the cool off in inflation. they didn't drop any hints yet about what it's going to take for them to stop raising interest rates altogether. there may be some disappointment there. i would caution that knee-jerk reaction is often wrong or at least reversed. we saw the opposite last time, last meeting, markets popped when the statement came out. there was a lot of enthusiasm about some of the framing in that statement, and then what
a little bit of inflation coming down in some ways. >> this administration is in trouble. the economy is going in trouble. the federal reserve, they may not raise interest rates as much as they indicated but they are still raising them. >> wall street was totally caught off guard by. this they didn't expect this report. the fed didn't expect this report. none of that is any surprise because they didn't see the inflation problem in the first case. >> bret: well, the economy, job one is big issue today as the jobs and employment come out 263 jobs added. unemployment at 3 pulp 75% as you heard the economy is still cooking can with steam. and that means inflation are still a concern. and inflation outpacing wages, october wage increase 4.9%. october inflation 7.7%. i just want to update you as we have been throughout the show. we are waiting on elon musk, the ceo of twitter to put forward what he says will be the story behind the suppression of the hunter biden story.
hiking cycle, but it often takes nine months or more for these rate hikes to filter through. we have to remember, too, the fed didn't really get serious with these jumbo 75 basis point hikes until june. it's going to be some time. we saw some evidence last week in the latest inflation report that inflation is coming down slightly, but we need to see more progress in the months to come. it seems that fed may start to dial back the pace of these increases and give them more time to filter through the economy. i think we could be stuck with high credit card rates for the foreseeable future. >> and that's tough, given that we're entering the holiday shopping season. we're a few weeks out from thanksgiving and black friday, a lot of people thinking what are they going to get their loved ones. what do you think this high apr average is going to do to impact retail sales? >> credit card rates are very high, and i think honestly, this
united states and all around the world. >> i'm max foster joining you live from london. just ahead on "cnn newsroom." >> this was a targeted attack. he specifically sought out their home. he sought out the speaker. >> does someone need to die before republicans and democrats can all come together on this issue? >> we've got politicians who instead of wanting to bring people together, do their best to stir things up. >> it's a choice between two vastly different visions for americans. policy makers need to decide whether to raise interest rates. >> i look at economic history and i see there's many times when the fed didn't do enough. >> announcer: live from london, this is cnn "newsroom" with max
not doing enough because i look at economic history and i see there are many times when the fed didn't do enough so inflation reaccelerated. i can't find any times in the last 60 years of economic history. >> his best guess is items rose by 5 1/2%. did police miss a chance to head off a deadly stampede? plus, new rules that prevent people from throwing out dirty socks and old mattresses. first, candidates fighting to get the support of the black voters at the polls. >> you don't think the outreach is the same? >> absolutely not. they say one thing butut when y look at the policies, they're
rates at 3% perhaps going to 3 3.75% and core inflation at 7%, the much greater risk is of not doing enough because i look at economic history and i see there are many times when the fed didn't do enough and so inflation reaccelerated and that i can't find any times in the last 60 years of american economic history when the fed did too much because the fed has got a goal. they've been very explicit about it. 2% inflation and even if there is something of a downturn or a recession, i don't see any reason to think that there's any real prospect without a lot more fed action that they're going to push inflation durably below 2%. >> so how high will interest rates have to go, mr. secretary, to bring down inflation? >> right now, markets are making a judgment that it's going to be
control inflation, they say. >> ainsley: this comes as a new poll is showing nearly two-thirds of voters say their family income is falling behind the cost of living. >> steve: despite this crippling costs, "fortune" magazine tells americans to be happy about inflation. somebody who is not happy about inflation is for a national economic counsel director and the host over on fox business, larry kudlow. hey, larry. >> hi. hello, good morning. >> steve: it's good to have you. the federal reserve is going to jam the brakes and try again, they're going to hit three quarters or 1%. they are trying to slow things down. unfortunately, when they do that, people lined up in a painful situation. things cost more and people lose their jobs. >> yeah, you are right about the pain. it's too bad the fed didn't start this about 15 or 18 months ago, because they never took it seriously. like the biden administration, they call it transitory.