Producer price index in August meets expectations as Fed weighs interest rate cut

Published: Sep 11, 2024 Duration: 00:05:18 Category: News & Politics

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>>> WALL STREET HAD A BIT OF A BUMPY START TODAY. THE TECH HEAVY NASDAQ'S ARE EARLY GAINS. S&P 500 AND DOW JONES LOSSES. THEY BOTH LEVELED OFF NOW AND FEDERAL OFFICIALS SAY THE THE CONSUMER PRICE INDEX ROSE 2/10 OF A PERCENT WHICH IS WHAT EXPERTS WIDELY EXPECTED. FOLLOWS A RISE IN THE CONSUMER PRICE INDEX WITH THE CORE RATE JUMPING BY 3/10 OF A PERCENT IN AUGUST CBS NEWS CONTRIBUTOR JAVIER DAVID JOINS ME IN STUDIO 57 TO TALK ABOUT ALL THE THINGS WE'RE FEELING CURRENTLY ON WALL STREET. JAVIER, WHAT DO THESE NUMBERS ACTUALLY MEAN? WHY DO THE MARKETS RESPOND IN THE WAY THEY DID? >> FIRST OF ALL, GOOD WORD THERE . CONGRATS. IT'S KIND OF LIKE A MIRROR IMAGE TODAY THAN WHAT WE SAW YESTERDAY IN THE CONSUMER PRICE. A BIT OF A MIX OF THE GOOD, THE BAD AND THE UGLY. HEADLINE, SPOT ON EXPECTATIONS. PRETTY APPARENT. IT WAS A REALLY GOOD NUMBER FOR THE CONSUMERS AND PRODUCERS ARE GETTING A REALLY SUBSTANTIAL BRUCE FROM FALLING ENERGY PRICES. PUTS MORE MONEY IN THE HANDS OF CONSUMERS AND PRODUCERS DON'T HAVE TO PASS ALONE COSTS TO SHOPPERS. SO THAT'S ALSO A GOOD THING. SO THE GOOD NEWS, BAD NEWS, YOU'RE SEEING A LOT OF BACK AND FORTH, TO AND FROM IN THE MARKET THAT THE MARKET HAS BEEN PRIMATES OFFER SOMETHING OF A JUMBO RATE CUT NEXT WEEK. WE'RE GETTING A RATE CUT. LIKELY 25 BASIS POINTS. SO IT GETS TO THE HEART OF HOW BIG THE RATE CUT WILL BE NEXT WEEK WHEN THE FED ANNOUNCES IT. IT SHOULD BE THAT THE FED IS GOING TO LAY THE GROUNDWORK FOR A SUSTAINED CAMPAIGN THEY'RE NOT GOING TO SAY WHEN THEY'RE GOING TO COVER WHEN THEY'RE GOING TO CUT, BUT THEY ARE GOING TO CUT. FOR THE MARKET OVER THE LAST SEVERAL SESSIONS HAS BEEN TALKING ITSELF INTO THIS IDEA THAT THE FED COULD CUT 50 BASIS POINTS, HENCE THE JUMBO. WITH THAT WOULD FREAK THE MARKET OUT BECAUSE IT WOULD CREATE THE IMPRESSION THAT THE FED SAW SOMETHING THAT THE MARKETS DON'T SEE THE JOBS MARKET IS SOFTER AND GROWTH IS SOFTER, BUT WE ARE NOT -- SCREAM AT YOU THINK IT WILL BE 0.25 AND SUSTAINED. YES, ABSOLUTELY. >> THIS IS ALL THE NUMBERS WE EXPECTED AND SO WHAT'S GOING TO HAPPEN IS WHAT WE'VE ALL PREDICTED, ET CETERA, ET CETERA. >> NOT SOMETHING THAT WOULD BE SURPRISING EITHER WAY. I THINK TOO BIG A RATE CUT WOULD RUN THE RISK OF VOLATILITY IN THE MARKET AND MAKING INVESTORS FEEL LIKE THE FED KNEW SOMETHING THAT THEY DON'T, WHICH IS SOMETHING THAT COMES. >> I'M GOING TO ASK YOU SOMETHING ELSE WHICH IS THIS NEW CENSUS BUREAU DATA THAT WAS RELEASED THIS WEEK. IT SHOWS THE GENDER PAY GAP SIGNIFICANTLY WIDENED FOR THE FIRST TIME SINCE 2003. JAVIER, WHAT'S GOING ON? >> WILL START OFF BY SAYING IT'S ILLEGAL, AGAINST THE LAW TO DELIBERATELY PAY A WOMAN LESS THEN A MAN DURING COMPARABLE WORK WHICH IS WHAT THE PAY ACT OF 1963 SPELLS OUT. HOWEVER, THERE'S A GAP ON WHAT BOTH THE SEXES MAKE. WIDENED FOR THE FIRST TIME IN 20 YEARS. IT DOESN'T NECESSARILY MEAN MEN OR WOMEN EARNING LESS THAN MEN, OFFERING THE SAME TYPE OF WORK. IT DOES HAPPEN SOMETIMES COME BUT IT'S A GOOD, BROAD ANY QUALITY INDICATOR OF WHAT THE INEQUALITIES BETWEEN MEN AND WOMEN. FOR A VARIETY OF FACTORS. CHILDCARE IS A BIG DEAL. A LOT OF THESE JOBS ARE FEMALE DOMINATED. A LOT OF THESE WOMEN ARE PARENTS . THEY HAVE TO TAKE TIME OFF. THERE ARE REASONS WHY THEY ARE NOT ABLE TO EARN AS MUCH IN THE CENSUS DEPARTMENT, THE LABOR DEPARTMENT GETS INTO THIS A LITTLE BIT. THERE ARE A BUNCH OF CONTRIBUTING FACTORS IN THE IDEA THAT WOMEN REPRESENT THE MOST, VERBATIM FROM THE LABOR DEPARTMENT, AND MOST OF THE WORKFORCE THAT PAYS THE WAGES. WHAT ARE THE WAGES? HOURLY WAGES. YOU HAVE TO TAKE TIME OFF. YOU CAN'T CALL IN PTO YOU CAN CALL IN SICK DAYS. MEANS YOU'RE GOING TO EARN LESS THEN A MAN. AND IF YOU ARE A PARENT AND YOUR KID CALLS OVER SCHOOL OR YOU GOT TO GO TO THE SCHOOL FOR A SPECIFIC REASON, THAT RESPONSIBILITY IS DISPROPORTIONATE. >> WHAT DOES THE STATE ACTUALLY MEASURE SO OUR VIEWERS CAN UNDERSTAND IT. IT'S NOT ACTUALLY SAME JOB, THIS IS HOW MUCH MEN ARE MAKING AND HOW MUCH WOMEN ARE MAKING. FOR MEN OR WOMEN IN THE WORKFORCE, THIS IS THE AGGREGATE AVERAGE. THE MEDIAN OF WHAT MEN AND WOMEN ARE MAKING . AFTER YEARS OF THAT, THAT WAS NARROWING AND WE WERE COMING CLOSER. SNOW STARTED TO WIDEN. SCREAM A BIG INFLUENCING FACTOR IS THE CHILDCARE FACTOR WHICH IS BEEN A POLITICAL TOPIC OF CONVERSATION ON THE TRAIL. IT'S EXPENSIVE AND YOU'RE TALKING ABOUT GIVING YOUR KID AWAY TO SOMEBODY FOR THE COSTS A LOT OF MONEY. IF YOU DON'T HAVE THAT MANY, IT INEVITABLY MEANS YOU HAVE TO TAKE TIME OFF WORK TO ADDRESS CERTAIN ISSUES AND WHAT IS THAT MEAN?

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