'Squawk on the Street' crew react to April's CPI data

Let's begin with that marker reaction to CPI. As we said, four nine year on year on headline, five five on core Jim. Use cars actually up for the first time in several months up for. Yeah, I've been struggling over that new cars actually are in both an abundance and also you're getting much better credit terms. And so I don't really, I mean, if you wanted to look at what I think may would be, that's going to be down. I also think that I've begun to take a lot of issue with the compilation of these things. For instance, I do a lot of work on apparel.

It's gone back to Matt Boso and this from J.B. Morgan. Apparel's up in price and yet there is no, there is no single piece of clothing that's up in price. So how did they get that? Fuel, fuel is barely down and yet gasoline is down more than a buck and a quarter from a year ago. So even the areas that are with the exception of rent that are up are, I think, poorly tabulated. And I, but honestly, you can say that there's, that they're just wrong over the times and so what.

But I just think that this is a very, very positive number for the Fed and what they're doing kind of flies in the face of what Mr. Williams said yesterday. This is David, the beginning of what I find to be an almost universal categorical decline in every single price. Sarah was with Williams yesterday in midtown and I'm told that we actually have some sound from that interview. We should, we should take a listen because he perhaps said a somewhat different view than we've heard. First of all, we haven't said we're done raising raise. What we're signaling is we're going to, we're going to make sure that we achieve our goals and we're going to assess what's happening in the economy and make the decisions based on that data.

And if additional policy firming is appropriate, then, you know, we'll do that. So I do not see in my baseline forecast any reason to cut interest rates this year. So no cuts this year, according to him. Well, maybe the data, maybe the data are irrelevant. What do you mean? Well, if you listen to Stan Druckenbauer, he would say, well, they've inflated us to the point where this doesn't really matter. It's just a catastrophic development. Now, if you go back to 2022, he said the same thing.

He said to be a big bubble. We do have a bubble. These numbers may not be convincing enough to the Fed, which wants to see more than just a month or two. But the fact is, is that almost every calculation is incorrect. You don't trust the data? The data is empirically wrong. Yeah. I mean, Cleveland Fed was even hotter than the event.

Then this print came out. Well, you know, look, OK, so you have me, I do a lot of work with the utilities. I spoke into utilities for 40 million people in this country. And the utilities shows very barely down. But natural gas has been cut in half. So I mean, I don't know how I I'm stuck with what I do. But I had Exxon the other day, American Electric Power.

These are very big transmission. Yeah, very big electric companies. They're not getting any numbers like this. So I mean, like we can just we can just say that I mean, these numbers are not put together by Salesforce. OK, they're not put together by by Google. They're put together by a group of people who are tabulating, making a lot of phone calls. Well, I make a lot of phone calls.

I make better phone calls than they make. You make better phone calls than the than the staff at the. That's good. Yeah, really? Yeah, I do. All in one day. No, I just do nothing but make these. I've made my life completely miserable and wouldn't be able to do better than they do.

I have witnessed you working when you're not on set and it is a thing to behold. Whatever it is. That said, I mean, this is their job, their full time job. OK. You're busy talking to Jason. What's his name about getting a Robin? Getting a thank you, getting a, you know, getting a line on the debt ceiling. You're talking to brokers in New Mexico about land there.

You're not focused solely on this. That's what they are. Don't forget his spirit. OK, yes. OK, you're selling now. I'm talking to Amazon. I'm talking to Walmart.

I'm talking to Target. Talking to Coles. I'm talking to Macy's. I'm talking to TGX. Talking to Burlington. I don't know. Who am I talking to? Tell me who I'm not talking to.

I'll talk to them too. The guy who runs the bodega down the street. None of those is telling me that apparels up. Heck, I talk to Hollies. I mean, I don't even know who else to talk to. I try to put the other pastiche of not a mosaic of prices. OK, and so again, give us your conclusion from all those phone calls that you make.

I'm saying apparels down and they say apparels up. I want to know where apparels up. I just, I mean, tell me. I mean, you know, I'll tell you, across the street is there a mess. Apparels up. Maybe they're overweighing the air as LVMH. Apparels up.

Well, I'll tell you, I'll tell you what's interesting that goes along with this is the B of A card spend data today. Total per household down one in April. That's the first drop since February of 21. And a lot of that's happening at the high end. Yes, where pay, pay growth is not what it's been at the low end. And look, I'm David. I clearly speak in Ubers.

But what I am saying is that you have to believe in the truck miller. You have to stand truck millers view, which is that it's all bubble. And these numbers are just kind of no fusion. Because if you actually believe that these numbers are if you're data dependent, you're struggling over how how tight you should be because you're winning.

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