EXCERPT:
ROSS SORKIN: "Joe, if you are the White House this morning, if you’re the Federal Reserve this morning, if you’re an American this morning, these are not good numbers at all. We're looking at the stock market down over 500 points on the Dow right now, so we are looking at little over 2% down. And what’s so interesting is, you just said it. Everybody goes to the gas pump, you see the signs, and those signs were for inflation. That was actually the billboard for inflation for a very long time, but those prices are now down about 26%. But there’s almost a silent inflation going on or at least one that's not as visible to folks, which is to say that what we actually saw was that inflation has continued or at least persisted, if you will, in large part seeing it somewhat in food but definitely seeing it in health care and you’re seeing it in shelter. Not so much necessarily because the price of homes has risen, but you’re seeing it in rent across the board and you're seeing in wages. And you think the wages, that would be good, but in certain cases that becomes its own conundrum. What does this all mean? It means one thing. It means the Federal Reserve is going to continue to raise interest rates. Before today, there was an expectation maybe a 50 basis points or maybe 75. Now I think it’s almost baked in the cake, it’s got to be 75 basis points, maybe even 100 basis points, and that’s why you’re seeing the stock market falling because the only instrument the Fed really has is to make things more expensive. And the hope is that if you make it more expensive, maybe you can tamp down inflation."