whiplash on wall street. the dow jones industrial average lost more than 1,000 points yesterday, its worst day since 2020. it wiped out a huge rally on wednesday after fed reserve chair jerome powell helped reassure investors. he said the fed was unlikely to raise interest rates as aggressively as many on wall street expected. joining us now, cnbc reporter frank holland on this. first of all, talk about the drop yesterday. what are we expecting today? well, i mean, right now, futures are down slightly, not down big. after yesterday, it s been anything goes environment. we ve been talking to people all morning on cnbc. a lot of thoughts about the jobs report that s coming up later today. could be a factor in the markets, may not be a market on the factor on the markets. when chair powell said the fed isn t actively considering a 75-point hike in june, at first the markets responded well on wednesday. we saw a rally. then people slept on it and
republican senator rick scott s economic plan. here he is. let me tell you about this ultra-maga agenda. it s extreme, as most maga things are. it will actually raise taxes on 75 million american families. over 95% of whom make less than $100,000 a year. biden claims his administration will reduce the deficit by a record amount as opposed to trump s administration, which increased the deficit every year he was in office. the u.s. federal reserve has issued its biggest interest rate hike in 22 years in an effort to bring down inflation. fed chair jerome powell announced the increase on wednesday. he says similar increases will be on the table for the central bank s next few meetings, but for now, the fed isn t considering steeper hikes. inflation in the u.s. is the worst in 40 years and the war in ukraine, plus covid lockdowns and china mean prices likely
certainly china was a positive with president trump coming out. early in the day saying he might very well be on her way ahead of schedule getting phase one of the china trade deal. one thing that s been helping stocks that this mission of the federal reserve might give and the fed isn t widely expected to cut interest rates on wednesday and the third time this year they ve done that but the big question for investors is what s next. the chairman and the federal open market committee have planned for the future. will they keep cutting, because they are worried about economic slow down and perhaps, that might happen but there are now more investors saying it might be time for a timeout of sorts. i grant interest rates don t need to go much lower because the economy remains relatively strong. we will see about that wednesday and the corporate earnings, huge weight, biggest one we ve had to come a hundred 50 companies above the s&p 500 reporting this week so far they have been strong and
wall street s nervous response. once the tweets started, the markets said oh, no. exactly. i think it s that tweet storm that really has put the markets on edge, because we have seen the numbers fall with each tweet that president trump has put out, especially the one where he s threatening to respond to china s latest retaliatory tariffs, promising that he s going to have a response later on this afternoon. so you ve got that uncertainty stirring the market up, making investors very nervous, which is why they are selling. one thing i have to say about one of those tweets that the president made, the one where he said once again the fed does nothing, at this meeting in jackson hole, wyoming, the fed isn t expected to take any monetary policy action. in fact historically it hasn t. it has to wait until usually its meeting that happens in september. the next meeting is september 17th and 18th. so if the president was expecting fed chief jay powell to take action, i think that s really
questioned him today and i asked him what he thought about the economy. he said on a scale of 1 to 10. neil: he took umbrage to the fact that may be the fed isn t doing a good job, saying look at the economy. not saying it s not just the president. what did you think? it s a combination of factors and he acknowledged some of the negative factors perhaps economic factors and other countries that can be an issue. i think what we heard today was that overall things are going great and the american economy. the fed chairman believes that and the president believe that my think a lot of back-and-forth perhaps is more fake news driven. certainly not on this network. but i think it s neil: i think it s safe to say that the president wanted to