What are some of those things, and are those positives getting overshadowed?

Some of the positives are getting overshadowed by the NIMBY, not in my backyard, data center.

And I totally understand.

Um, if you have your family farm or if you live out in the suburbs and some sort of fly by the night, under the radar, big tech company comes in and starts buying the land underneath your nose and building up a data center, and you had no say in that, I understand the anger and the backlash at sort of the local city council leader of people saying, "Wait a minute, you didn't get my vote on this." And so I think there absolutely needs to be more communication.

I don't know if that's Mark Zuckerberg or someone below him showing up to the local city council meeting and saying, "Yes, we are gonna build a data center, and then also in return I'm gonna rebuild you a new school, a new library, and I'm gonna pave your roads, and I'm gonna cut your property taxes, and maybe I'm gonna cut some of your income taxes, and I'm gonna use my own water.

But yes, we're gonna have a data center." And that maybe will help the public sort of decide what are the benefits, what are the downsides, can I have a vote, and do the benefits sort of outweigh the downside? And that's, I think, very much from this administration what they've done.

This is a local level issue.

[laughs]

So give us the drama behind the scenes here.

Yeah.

So look, last week the Federal Reserve raised interest rates, and you might say, "Why?" Well, you know what? Inflation has become a problem.

The concerns about this, people have said raising interest rates into a supply shock never works, and we are in a supply shock.

We don't have enough oil, and there's too much demand.

We are not trying to, uh, cool demand by any, by any measure.

So the Federal Reserve raising interest rates doesn't open up the Strait of Hormuz, and that is the big criticism of why they raised rates.

Hmm.

So give us the drama behind the scenes here.

Yeah, so look, last week the Federal Reserve raised interest rates, and you might say, why? Well, you know what? Inflation has become a problem.

The concerns about this, people have said, raising interest rates into a supply shock never works, and we are in a supply shock.

We don't have enough oil, and there's too much demand.

We are not trying to cool demand by any measure.

So the Federal Reserve raising interest rates doesn't open up the Strait of Hormuz.

And that is the big criticism of why they raised rates.

Is it... basically just oil and products that come from oil diesel gas in general that is causing all of this uh you know this this concern about future inflation or is there anything else like is it just that issue

So give us the drama behind the scenes here.

Yeah, so look, last week the Federal Reserve raised interest rates, and you might say, why? Well, you know what? Inflation has become a problem.

The concerns about this, people have said, raising interest rates into a supply shock never works, and we are in a supply shock.

We don't have enough oil, and there's too much demand.

We are not trying to cool demand by any measure.

So the Federal Reserve raising interest rates doesn't open up the Strait of Hormuz.

And that is the big criticism of why they raised rates.

Is it... basically just oil and products that come from oil diesel gas in general that is causing all of this uh you know this this concern about future inflation or is there anything else like is it just that issue

So give us the drama behind the scenes here.

Yeah, so look, last week, the Federal Reserve raised interest rates, and you might say, why? Well, you know what? Inflation has become a problem.

The concerns about this, people have said, raising interest rates into a supply shock never works, and we are in a supply shock.

We don't have enough oil, and there's too much demand.

We are not trying to cool demand by any measure.

So the Federal Reserve raising interest rates doesn't open up the Strait of Hormuz.

And that is the big criticism of why they raised rates.

Is it... basically just oil and products that come from oil diesel gas in general that is causing all of this uh you know this this concern about future inflation or is there anything else like is it just that issue

What moves the inflation rate higher and lower that Kevin Walsh can actually tackle?

Here's my problem is I don't think I agree.

And the markets right now are pricing in a 90 percent odds of a rate hike.

But hiking rates to slow down the economy is the old Fed.

That's the Phillips curve.

And we've decided that that doesn't work.

But I do think that in order to help with credibility and to help slow the inflation, he is going to hike rates.

Sorry.

Yeah

...

I'm all for a four-day work week if we then instead of working eight hours a day work 10 or 12 hours a day and expand that over four days.

Look, here's my fundamental, uh, line: there is dignity in work.

There is dignity in showing up.

I think we learned during COVID that, especially on Labor Day, I had all these posts from the left saying, "Happy Labor Day to everyone during COVID who kept...

The mailman kept showing up.

Right.

I mean, the left hates profit, but profits drive the economy.

And then you could argue if a company is making big money, they're willing to invest, buy that new machine.

We've heard from John Deere in the last couple weeks, you know, all of these things.

We had, I mean, the jobs number today was great.

You had Jolt's numbers that came out where the entirety of new job openings are construction and manufacturing.

Wow.

You had a manufacturing index this week that showed an eighth consecutive month of gains in manufacturing.

I'm sure the Fed's going to take a look at that, too.

Most of them private sector.

Bingo.

So well reversing the trends in the previous administration when it was a lot of public sector jobs.

The unemployment rate's at 4.1%.

The sort of bad news, if you will, is you're not getting a lot of inflation from wage growth.

So wage growth is... barely keeping up with inflation, but it's not massively outpacing inflation.

So the Federal Reserve doesn't have to massively hike interest rates to cool off the labor market because wage growth isn't a spiraled out of control inflationary look right now.

You'll take the win because you hit six home runs, or you'll take the win because the other team committed 12 errors.

Teach that out for us.

Yeah, okay.

So right now we're looking at bond yields that we woke up and sort of overnight are back at the highest that they've been since 2008.

And no one wants to be compared to 2008.

We already remember what happened.

But I think this is sort of...

This idea that is going against the administration, which obviously every administration wants low interest rates.

Go ahead.

Okay

... to see more evidence that that's taking place, and he says he doesn't yet see it.

So he said, "My focus now is shifting away from the labor picture," 'cause the labor picture looks good- In favor of the price stability inflation picture because it is still much too high.

You're well above that 2% target.

So you're seeing the market respond.

Yields are rising because the Federal Reserve influences short-term rates, and so yields are rising.

He also had another really interesting comment.

[laughs]

Appreciate it.

Oh, thank you so much for having me, and it's always such a pleasure to be here.

And, you know, Roger obviously was such a dear friend to my family, to me, but I really think that his passing is going to be such a big loss, most importantly, for this community.

You talk about how this is community conversations, and Roger was in many ways the heart of this community.

I'll quickly just remind everyone and myself to hold tight to the last memories that we have with him.

My last memory... was actually about a year ago.

He was holding my eight-week-old baby.

Thank you so much.

But first up, our very own Taylor Riggs here with some of the details of today's record rally.

Oh, my goodness.

Let's do it, Larry.

Take a look at where we are.

All major averages jumping today on a potential deal with Iran.

And yes, your favorite strong earnings.

As you can see, the Dow at a fifty four thousand.

But the point is stocks are telling you things are doing very well.

Because of the war?

Um, in part, but also inflation has been above that 2% target for five years now.

I mean, it's been a really, really long time.

So Kevin Warsh just came in.

We got, um, the Fed meeting on Wednesday.

We've gotten two out of the three dissenters.

They've released statements today on why they dissented, and they voted for a rate hike.

[laughs]

... to change your ID.

So I am on the, um, this v- vote writers.org, where they say this Save America Act is gonna hurt women.

Here's what this says: "In 38 states, registering to vote may not be enough.

Voters are asked or required to show specific ID.

An estimated 8 out of 10, 10 women change their last names when they get married, meaning that the ID that they provide to vote might not match the name they regis- originally registered to vote with many years ago." They're effectively telling me that I'm too stupid or incapable or unable to go to the DMV and either get a new license when I change my name or to show up at the poll and sh- proof that I'm married and here's my name change.

And, you know, look, I don't kn- to be honest, I don't know the ins and outs of this bill, but what I don't like being told, and I feel like I'm told this more on the left than the right, that I'm, like, too stupid to figure things out, or I'm too dumb, or-

Mm-hmm

... they've been in the similar circle.

... and add to the grid of that state.

You know me, I don't want more regulation, but I do think that I want more than just a pledge.

Uh, we have come full circle with big tech.

I think I was not a fan during COVID, when a lot of us felt censored for having different opinions, and then of course big tech has been cozying up to the president, and then I think there is a lot of good within AI and good in data centers.

But I think a lot of people don't trust big tech, and they're [laughs] looking at Mark Zuckerberg and they're thinking, "Yeah, a little pledge doesn't really work.

We need more than that because we don't trust you." So I do think that this needs to be something more than a pledge, and I have been arguing that I think you should have representatives from these big tech companies go to these local city council meetings, hear what people are upset about, and then tell them how you are contributing back to the grid, how you're upgrading infrastructure, how you're relying on your own water, you're not pulling from the system.

This is actually a really interesting backdoor way to start privatizing our utilities, which I love.

I thought it was a terrible ad.

... seen movement this week?

We have, yep.

So we've talked about how Saudi Arabia's doing that east to west pipeline.

We have heard in the last three weeks Japan say, "We wanna reduce our reliance on the Strait of Hormuz to zero." You've had a lot of countries in the sort of Gulf nation say that we're gonna sort of fast-track pipelines.

Chevron is one of those that said, "We wanna go in and get pipelines to get out of the Strait of Hormuz." So the good new- there's good and bad news.

The good news is that Iran had one bullet.

They shot it.

... and add to the grid of that state.

But that, that's what they teach.

And we have raised a generation of children who, in my opinion, it started with teachers' unions in schools.

There are ...

I'm, come from a family of educators.

I love ...

M- my mom was a teacher, and it is wonderful.

But, uh, 98% of the people in the teachers' union believe in, probably, socialism, and they have indoctrinated in, uh, the youth's mind that somehow we're not gonna teach capitalism, we're not gonna teach economic literacy, we're not gonna teach history, to your point.

If we could get to that point, it would be an amazing economic boom for the world.

Yeah.

Netflix walked away.

Originally, people were like, "That's great.

Save your money." But now there's something with Netflix where instead of just watching subscriber growth, how many subscribers are you getting and how, what prices are you raising on everyone, it's about engagement, and engagement is falling.

So I'm not, like, on the platform engaged, watching what they're putting on, and that's what makes people nervous, which is why the shares are down 40% in the last year.

So-

Yep

... and talk to me about the jobs, the investment, the commitment by law that you will make into my power grid, um, about all of the water that you're gonna put back into the system.

Right.

72 for West Texas, uh, is still really good.

I think pre-war we were high 60s, 67 or so.

So, uh, we're kind of sort of getting back to where we were.

Now, a lot of people give me questions of, um, the gas station is so quick to raise prices, but now that global oil prices have come down, why is it not coming down at the pump? Okay.

Well, first of all, those little guys at the stations, that's not big oil.

That's like mom and dad, these little mom and pop shops who are operating these corners-

Anything else going on you wanna say?

Is there more that's wrapped up in the SpaceX, the Space Exploration Technologies Corp that you can talk to us about?

Yeah.

So here's the problem.

SpaceX owns XAI, which is their AI chatbot, like their AI platform.

They also own X, which you probably know is Twitter.

I think they also own SolarCity.

So they're sort of like, people are calling this kind of like a hodgepodge of companies.

How quickly does that turn into lower per gallon in my Chrysler Pacifica while I'm trying to get my kids to their baseball games? How quickly does crude go down and my gas prices go down?

Is there more that's wrapped up in the SpaceX, the Space Exploration Technologies Corp that you can talk to us about?

Yeah, so here's the problem.

SpaceX owns XAI, which is their AI chatbot, like their AI platform.

They also own X, which you probably know is Twitter.

I think they also own SolarCity.

So they're sort of like, people are calling this kind of like a hodgepodge of companies.

But what he's done is paved the way for, I think, what the market's also betting in a couple of years, He'll merge it with Tesla.

How quickly does crude go down and my gas prices go down?

Is that actually true? Yes, on paper.

And you can lose it all tomorrow because you're never actually there until you sell.

But I have so many thoughts on this.

First of all, good for him.

This is incredible.

This is a South African immigrant who came here, did PayPal, invested every last dime of his 20 or whatever years ago into SpaceX.

2006, he's like thinking there's problems.

Is there more that's wrapped up in the SpaceX, the Space Exploration Technologies Corp that you can talk to us about?

... which kind of backs up Kevin Warsh, I think.

I think so.

Instead of pressuring him to cut, you just say, "Don't hike.

Stay pat.

Let's lay, wait for all of this to, uh, play out and stay put." Larry, you know me, stocks go up and then stocks go down.

That's right.

Right? But look, in all seriousness, we had a, a unpleasant day.

I think my concern is you had a big sell-off Friday, we tried to rebound Monday, and then we sold off Tuesday and Wednesday.

Wow.

So you have all of these.

Ford, Ford Motors, not just your car anymore.

They have an energy storage business, so they're getting contracts from companies who wanna store AI data center within their energy at Ford.

I'm sure.

So we might as well, um, give our great American companies the chance for revenue.

And our American companies are gonna out-innovate them no matter what they get their hands on, because we just showed up with $15 trillion worth of CEO.

That's almost the size of China's entire economy.