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taxpayer dollars on an illegitimate impeachment inquiry because donald trump, the puppet master, has directed extreme maga republicans to launch a political hit job against president joe biden. that s house minority leader hakeem jeffries calling out republicans in the lower chamber before the vote to authorize an impeachment inquiry into president joe biden. that came after hunter biden defied a subpoena from house republicans challenging them to hold public hearings for his testimony. we ll have much, much more from a bitter and partisan day on capitol hill. plus, the supreme court will hear the first case tied to abortion rights since it overturned roe v. wade. we ll get expert legal analysis on that just ahead. good morning and welcome to way too early on this thursday, december 14th. i m jonathan lemire. thanks for starting your day with us. we have a busy morning ahead, and we ll start here. the republican controlled house has voted to formally authorize its ....
tightening of monetary policy and also the lags and their impact on inflation and overall economic activity. acknowledging there is a lag between the actions it s taken to date and the impact they ve had on the economy so far, raisirais new questions about when the fed could evaluate those actions and at what point they ll be fully baked in thanks very much. appreciate that. let s bring in our panel as we see stock averages pare the losses s&p is up 15 points. dow just jumped 270 points nasdaq and nasdaq 100 have turned positive. we re seeing yields come off ten-year is hanging on to 4% just barely. let s bring in our panel back in. let s also add steve liesman, bob pisani and rick santelli steve, let s start with you and the change in language that kayla laid out she highlighted the most important part and it looks like there s two pieces to it the first one here in determining the pace of future increases in the target range, the committee will take into account ....
raising 75 basis points as expected, the fourth meeting in a row they re doing that it is interesting though the statement added this line, saying that the fed anticipates ongoing rate increasing will be appropriate to get inflation back to the 2% foal. then the statement says this, in determining the pace of future increases in the target range the committee will take into account cumulative tightening monetary policy, the lags which monetary policy affects the economic activity and inflation in economic and financial developments. the federal reserve statement says they will see modest growth. they have seen that spending, production, job gains, has been robust. inflation is elevated saying it is elevated because of supply and demand imbalances mainly due to the pandemic with higher food and energy prices. the statement says the war in ukraine is putting that upward pressure on inflation and the fed indicates that they want to continue the rate of balance sheet runoff ....
across board. the big one, the fed sees federal funds rate at 4.4% by end of this year. the fed sees one more rate hike in 2023 and possibly and rate cuts in 2024 and 2025. this year with two meetings left the federal reserve is indicating those hikes could be 75, 50 basis point combination of those two to get to the 4.4% federal funds rate at end of this year. cuts in 2024 they have to go back, go going back to the 25 basis point moves which the fed chairman does like to do, four rate hikes, rate cuts in 2024 and another four rate cuts in 2025 if they use that 25 basis point americament. gdp goes down to .2% of all of 2022. only growing by 1.2% in 2023 and 1.7% in 2024 and 1.8% in 2025. all under 2% growth for the foreseeable future. the fed believes the unemployment rate rises slightly from where it is to 3.8% by the end of this year. they have the unemployment rate going to 4.4% end of next year, staying there. the fed sees pce inflation, they have upgraded that proj ....
exacerbating supply chain issues because of lockdowns. the fed will continue to run off its balance sheet as planned that pace starting in september will be $60 billion in treasurys and $17.5 billion in mortgage-backed securities. that continues to the statement, goes on to say the fed will adjust monetary stance based on eve merging risks. this was a unanimous statement, includes votes 3:00 new members, full board, lisa cook, michael barr. the fed raising rates 75 basis points as expected but saying recent indicators show that spending and production have slowed, have softened is the word they used. charles, back to you. charles: a lot of interesting juicy stuff. edward, thank you very much my friend. the fed has made the hike expected. the street has to deal with the guessing game. you heard what edward said. new words, some taken out. maybe we ll learn some more in the question and answer period that is very important, more so today. this is a very serious dilemma, f ....