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Quest Means Business

Inflation Comes In Hot At 3.5 Percent In March; Biden Hails Monumental Alliance As He Hosts Kishida; Boeing's Dreamliner Production Under New Scrutiny; Hamas Leader Aware Of Three Sons Killed In Israeli Strike; Gen Z Full Of Financial Angst Despite Solid Labor Market. Aired 4- 4:45p ET

Aired April 10, 2024 - 16:00   ET



RICHARD QUEST, CNN INTERNATIONAL HOST: A second to go to the closing bell on Wall Street. Trading coming to an end on this day. The markets showing

that the Dow was lower. We are up one, two -- I've only got two gavels there -- 420 down on the Dow. Look at the triple stack and you will see

that it was across the board. The NASDAQ was also lower, S&P lower, the DOW bore the brunt of it. Those are the markets, the reason they were down, the

main events of the day.

Sticky and stubborn: Inflation just won't come down fast enough.

The Japanese prime minister in Washington, defense cooperation and joined AI research on the agenda, so far, Nippon Steel is not.

And more trouble for Boeing after a whistleblower comes forward, claiming flaws in its production process of 777s and 787s.

Live from New York. Good day to you. It is Wednesday, it is April the 10th. I'm Richard Quest and of course, I mean business.

And a very good day to you.

The US inflation has climbed for the third straight month, dashing hopes that it would edge closer to the Federal Reserve's two percent target. CPI

rose last month to three-and-a-half percent year-on-year, the highest reading since September.

Energy and shelter, more than half of that gain, and then the CPI numbers were hotter than economists had expected, that means a big disappointment

for investors.

The Dow closed off more than four, you can see the number down 422 because now the concern is the Fed won't cut rates in June. Also, of course, the

Fed's favorite measure, and of course PCE and all indeed, the core measures were also on the hot side.

So Julia is with me.

Julia, does this take June off the table?

JULIA CHATTERLEY, CNN INTERNATIONAL ANCHOR, "FIRST MOVE": Goldman Sachs says it does. They were straight out of the gate, Richard, they've gone

from June to July.

You and I were discussing it.

I gave it zero probability in June and I think investors are also now incredibly nervous. There is a lot in this number that I think is

important, it is not just the fact that it was higher than expected.

You said it. We had a disappointment. It was higher than expected in February. It was also higher than expected in January and the Fed looked at

this and said, look, it is quirks, it could be the seasonal impact on the data. They are going to have to adjust, I think the way that they

communicate and talk about what they think as far as inflation is concerned.

And you mentioned rent and energy prices; not just that, Richard, the service is part of this inflation number is important, too. Think medical

costs, think insurance costs. These are things that are tied to the labor market. And when that strong, you have these price pressures and that

remains sticky and that I think is a warning shot as well.

So there is this sort of reality check going on for stock markets, but it has been going on for a while now. Remember, we came into this year with

investors thinking that we would see six to seven rate cuts around what?

QUEST: Right.

CHATTERLEY: One-and-three-quarters of a percent. Now, we are talking about one to two cuts, around half a percentage point. So I think the reality

check that we've been affecting really is sitting and settling in here.

The problem is of course, for consumers, that would like to see some easing of their debt costs, and I don't think that's happening anytime soon.

QUEST: Stay with me, Julia. Stay with me because there has been a lot of discussion on this so-called soft economic landing versus a hard one, which

would be a recession. Now that seems we are in a no landing scenario where inflation struggles to reach two percent at all.

Factors like rising oil prices, higher shelter costs, and a resilient economy are the reasons. So it is now when or if the plane will finally

touch down --


UNIDENTIFIED MALE: Flight crew, please prepare for landing.


QUEST: Fed officials are warning. It will take some time before we hear that "prepare for landing."



JEROME POWELL, US FEDERAL RESERVE CHAIRMAN: We do not expect that it will be appropriate to lower our policy rate until we have greater confidence

that inflation is moving sustainably down toward two percent.

NEEL KASHKARI, PRESIDENT, MINNEAPOLIS FEDERAL RESERVE: We've got to go all the way, because if we stop short, then you all are going to say, well,

maybe they are going to stop short next time.

AUSTAN GOOLSBEE, PRESIDENT, FEDERAL RESERVE OF CHICAGO: Services we thought was going to be extremely persistent, has actually come down, and the

puzzle is that housing inflation has not come down as we expected.


QUEST: Mohamed El-Erian is with me, Julia as well to do battle over this.

Mohamed, is Julia right that June is off the table in many ways?

MOHAMED EL-ERIAN, ECONOMIST AND ADVISOR, ALLIANZ: I think she is. In fact, the market is now pricing only a 16 percent probability of a June cut.

QUEST: So if -- is there an impossibility in your view that we could actually see a rate rise?

EL-ERIAN: It is not an impossibility, but it will be a huge mistake and it would be yet another fed policy mistake. Why?

We have a fed that is very data-dependent. They love that phrase, Richard. It means they look at what has happened yesterday in order to determine

what will happen tomorrow, because their tools act with a lag, so if we continue with hot inflation prints, which we probably will for some time

then there is a whisk that the Fed will not only not cut rates, but would increase it, but that will be a huge mistake because the economy is

starting to weaken.

And if they look forward six to 18 months, they would end up making the slowdown even worse. So this is a very delicate time and one in which the

fed has to go from being data-dependent, driving the car, looking at the rearview mirror to being strategic and looking forward.

QUEST: Julia --

CHATTERLEY: Mohamed, you've long said that two percent is the wrong target for the Fed now in this environment, and actually they should be mentally

thinking about a target of around three percent, which argues what you're saying, which is look, even if you have slightly higher inflation that we

are looking at today, it is not a problem. You don't have to message about needing to either hike rates or perhaps not cut rates.

How far away from that are we? When one, you look at the data and when you try to read between the lines on what the Fed is thinking, even if it is

not what they're saying.

EL-ERIAN: So, I think the data, and I think more generally what is happening to the supply side globally confirms that two percent is not the

right inflation target. But the Fed will not come out and say, we change an inflation target, because they have overshot it for so long.

You remember, inflation was over nine percent. They have overshot it for so long that the last thing they'll want to do is change the target because

their credibility is already damaged.

So what they would have to do, which I think is the right thing, is keep on promising this two percent in the future, see whether we are stable at

three percent inflation, I think we will be, and then slowly move from a two percent target to two to three percent target. That's totally doable,

and that would not sacrifice what has been US economic exceptionalism.

QUEST: I've set --

CHATTERLEY: How do we communicate that? Oh go on, Richard, I am taking over.

QUEST: Well, you see we are ganging up on you, Mohamed. It isn't that we both get to attack you, but to take your very -- to take your point,

Mohamed, if they do that, I mean, they are -- their credibility is already in the toilet.

Essentially, they are saying, well, don't listen to what we say, just sort of follow on later.

EL-ERIAN: Yes, the alternative is worse, like we shouldn't be here and we are here because they mischaracterized inflation as transitory in 2021, you

and I spoke about it. I spoke to Julia about this and they were late.

So they got here because of a policy mistake. The worst thing to do is to add a second policy mistake. You know, there is no world of first best once

you make a policy mistake.

So is it perfect? No. Is it without risk? No. But it sure dominates the alternative of sacrificing economic growth and hitting the most vulnerable

segments of the population with lower wages, with unemployment at a time when the paycheck has already been eroded due to high inflation.

QUEST: Julia, the one in the markets, one of the markets, Julia, got to grow up and behave like adults instead of children in a playground who have

been told, you're not going to get a sweet or some candy because that is what today is all about.

CHATTERLEY: Richard, you're being really tough today.

Fed credibility in the toilet, and in fact is acting like little children, having their lollipop taken away.

QUEST: Come on. Come on. The two of you.

CHATTERLEY: We are not far away from record highs, I would say and that reality check, I mentioned going from it, wanting it all in January and

seeing six to seven quarter-point rate cuts. We are now at one to two.

So I think they've been growing up steadily perhaps over this year.


I guess my question to Mohamed at this point is if they're not willing to suggest that perhaps, going to, in their minds move that inflation target.

What is the right policy to get us to the soft landing that Richard was talking about without necessarily communicating because you're saying that

they won't do that.

But they could at least use policy to achieve it. What's the right policy to do that?

EL-ERIAN: So, they need two things -- communication and action. Communication is slowly pivot to first characterizing the two percent

inflation target as longer term. Chair Powell has started doing that and then second, take a more strategic view and say holistically, we are not

going to be over-dependent on past numbers, but we are going to look forward.

And then in terms of action, they are going to have to come through with a couple of cuts this year. If they do not cut a couple of times this year,

they will unduly sacrifice growth, and we may see the end of US economic exceptionalism.

QUEST: I am going to get one more to Mohamed, it is an election year. History shows that the Fed moves regardless. If you look at the last --

goodness knows how many elections -- either both up and down. They do continue doing it.

But this is going to be an election like none other for obvious reasons, so Mohamed, do you think there is a point upon which they will say we cannot

move because we will be perceived as getting involved in the election?

EL-ERIAN: I don't think so, Richard, I think like what you said earlier, I agree, the Fed will do what the Fed thinks is right. However, whatever they

do, Richard, they are going to be blamed if they cut, they will be blamed by President Trump for favoring President Biden; and if they don't cut it

is going to be the other way around.

So they will be blamed whatever they do, but I truly believe they will do what they think they need to do.

QUEST: Thank you, sir. You've been very generous, allowing both of us to have a go at you. But been a great discussion.

EL-ERIAN: It's an honor.

QUEST: And great to have you, Julia. Thank you. You'll be with us in a couple of hours. Thank you for doing double duty as well, kind of you both.

Now, the leaders of the US and Japan are celebrating what President Biden has called them monumental alliance. The president welcomed the Prime

Minister Fumio Kishida to the White House and said the relationship between their countries is stronger than ever before.

Defense and security are high on the agenda with the US president announcing a plan for stronger cooperation.


JOE BIDEN, PRESIDENT OF THE UNITED STATES: I am also pleased to announce that for the first time, Japan and the United States and Australia will

create a network system of air missile and defense architecture. We are also looking forward to standing up a trilateral military exercise with

Japan and the United Kingdom.

And our AUKUS Defense partnership with Australia and the United Kingdom is exploring how Japan can join our work in the second pillar, which focuses

on advanced capabilities, including AI, autonomous systems. All told, that represents a new benchmark for our military cooperation across a range of



QUEST: Kayla is with at the White House.

This is interesting because in many ways, you know, all the headlines stuff about relationship, but this potential inclusion of Japan in some version

of a larger AUKUS is really what this is all about.

KAYLA TAUSCHE, CNN SENIOR WHITE HOUSE CORRESPONDENT: It is, Richard and Biden administration officials are heralding this as a new era for US and

Japanese relations and pointing to the fact that Japan has changed some of its own laws to be able to deepen its collaboration with the US

specifically on the development of military technology and collaborating on some of the weapon development like building a nuclear submarine, which is

what the AUKUS partnership is focused on.

That being said, there are also a number of commercial deals that are part of today's state visit. You have Google, Amazon, Microsoft agreeing to

invested billions of dollars in artificial intelligence research, data, and digital development in Japan.

And then you have on the flip side, Honda, Toyota and many other companies pledging to invest billions of dollars in manufacturing in the US, but

there is one commercial tie up that is really sort of the elephant in the room for today's visit, and that is the proposed merger between the two

biggest steel companies in the US and Japan a proposed takeover of US Steel by Japan's Nippon Steel.


President Biden has before and once again today took the opportunity to say that he will always stand up for the American workers in saying that he

does not support the deal as he has in the past. Well, Prime Minister Kishida was also given a chance to respond on that and he said that he

believes that ultimately, the law in both countries will prevail. Of course, here in the US, we have antitrust authorities that weigh in on such

tie ups like that.

But certainly, perhaps putting a little bit of a fly in the ointment for a very positive overall visit, and one that certainly comes with quite a few

deliverables for both countries to walk away with.

QUEST: I am grateful to you. Thank you. Kayla at the White House.

No relief for Boeing or its stock. Now, its whistleblower who is claiming the company took risky shortcuts on the production of its two wide-body

jets, 777 and 787.



QUEST: Boeing's stock closed lower. It was the eighth session when it was down and with the latest concerns over Boeing's production processes and

its safety. The share is off two percent as investors take in a whistleblower's claims about the 787 and the 777 planes.

The public -- the complaints about the two went public on Tuesday. Now, what is this all about?

A Boeing engineer is alleging the company took shortcuts in the manufacture of these two types and warning that the risks could become catastrophic as

the planes age.

Boeing in response says since the claims about the wide bodies are not accurate. It says about the Dreamliner, these claims about structural

integrity of the 787 are inaccurate and do not represent the comprehensive work Boeing has done to ensure the quality and long-term safety of the


Shawn Pruchnicki is a former commercial pilot, now professor at the Ohio State University Center for Aviation Studies on Safety, Culture, and Human


The problem here, Shawn is that you know why should we believe Boeing? I mean, their credibility -- I saw the whole statement and basically they are

saying that -- they are not even saying we've got it right. The FAA and others have looked into it and there is nothing there. But what do you make

of it?

SHAWN PRUCHNICKI, PROFESSOR: Well, Richard, I agree with you.

I think we have some serious concerns here and you're exactly right about what would Boeing say and what can we really believe at this point?


I think one of the biggest concern we have here is the comments and the whistleblower's comments about how the aircraft in the short term, maybe

all right, but their comments about the long term, right?

I mean, these are aircrafts that are wide-body aircrafts, as you mentioned, Richard, about what do we have to worry about ten, fifteen, twenty years

from now about the stability of the fuselage?

QUEST: Right.

PRUCHNICKI: That doesn't sound like good engineering.;

QUEST: No, but there are two aspects to it.

One of them is the gaps in the fuselage, which when the thing is -- the different parts are put together. The second one is this mis-drilling where

allegedly people were jumping up and down on parts of the plane to try and make them line up so they could put the rivets between them.

Neither of them is entirely satisfactory, and I think you'll agree.

PRUCHNICKI: Absolutely, I do agree. And I can tell you, the second one that you mentioned, almost always when we see this, not only in aerospace, but

other companies, but especially in aerospace being a high-risk industry is this comes back almost always to quality assurance, Richard. This comes

back to the number of people that we have out on the line to assure that these things are being done correctly.

And what I would want to know is, and I know there have been cutbacks in that area. I don't know what the percentages are, but where are the

original numbers of Boeing had over the years with the number of people that are responsible for checking these things. Where are those people now,


QUEST: So the planes that we are talking about would have been manufactured over the last few years. The FAA says, well, they are aware of this and

they are looking into it.

I guess it is a question of what do you do about it?

PRUCHNICKI: Well, what you do about it is, first of all, you'd have to do a very thorough investigation, right? Because the problem is, you can't go

and just scrape the surface. Because if they're going to take action against Boeing, usually, in the form of heavy fines or making them park

aircraft like we saw with the Max, they have to have all of their data and it takes a while to do that.

And you know, and here is another problem we see in aerospace is, that it is volumes of data and it takes a long time to go through that and I am not

saying that Boeing could be hiding something, what I am saying is historically, we have seen an aerospace where sometimes, things are hidden.

So they need to be concerned about that.

Let us put it into bigger -- lets go up a level if we may. Boeing versus Airbus.

Now Airbus has always said to me or they take no pleasure in this because in actual fact, even if there were more orders coming in, they couldn't --

they couldn't fill them anyway because their order book is full and there is a feeling with Airbus anyway, there but for the grace of God go I, it

may be Boeing today, but I can remember 10 years ago when Airbus had its own difficulties.

So the duopoly serves the industry well up to a point because airlines like to have both to choose to play off against each other.

PRUCHNICKI: Yes. Absolutely, and Airbus is exactly right. But keep in mind, this -- you know, this is something that is not just going to play out,

Richard, over the next year or so because these orders take place many years into the future.

So you're exactly right. It doesn't surprise me what Airbus is saying about this, but that doesn't mean about orders for five years from now or 10

years from now.

So, you know, even if this is resolved with the FAA over the next two or three years or sooner, I hope that doesn't change about orders for even US

carriers for airbus five years from now.

QUEST: Good to see you, Shawn, always grateful. Thank you, sir.

PRUCHNICKI: Always great to see you, Richard.

QUEST: Now, Donald Trump keeps modifying his stance on abortion because the facts keep changing. Whist campaigning today in Atlanta, he discussed

yesterday's ruling in Arizona that we talked about, the bans nearly all abortions in the state.

He said, it went too far and that it will be straightened out and then he doubled down that states should decide these questions. And then there was

this --


REPORTER: Would you sign a national abortion ban if Congress sent to the desk?


QUEST: All right, Kristen Holmes is in Washington, so let's take this very carefully. First of all, he says it is really a matter to the states. Well,

now you have a state that basically says, oh, we are going to go with a lock here and abandon them.


But now he says, oh, well, maybe not. Maybe the state has gone too far. How is he going to square this circle?

KRISTEN HOLMES, CNN NATIONAL CORRESPONDENT: Richard, he is not going to square that circle, which is why you're seeing him have such a difficult

time when it comes to talking about abortion.

When he started down this road of running for office, again, he was still trying to take credit for the overturning of Roe v. Wade while saying 4that

it should go to the states.

Then in a self-inflicted wound, Donald Trump started publicly and privately talking about the idea in recent weeks of supporting a national ban, a 15-

week abortion ban. This is because of some of the people that he was talking to at the time.

He talked about it so much and made so many statements on it that people started to believe that this was exactly where he stood and Democrats

started openly campaigning against the fact that Donald Trump might support this national abortion ban, which by the way, is widely unpopular here, and

Donald Trump knows that.

So then he had to come out and basically say what he had been saying all along, which was that this should go to the states. However, as you saw,

Arizona passing this incredibly strict abortion ban with no exceptions, Donald Trump now saying they went too far.

So now, he is saying it should go to the states, but also criticizing some decisions that the state has made. Now, when I talked to his advisers, they

say, look, this was bound to happen. They believe that no matter what, even if Donald Trump had gotten behind a federal abortion ban, one that would be

more unpopular than what he currently said about it being left to the states.

But two, at least when he says to the states, he was going to get blamed for a decision like Arizona or a decision if Florida passes on the six-week

ban, no matter what. At least in this case, he is not talking about a federal abortion ban.

QUEST: Well, now, you see, we've also got look, I mean, in Arizona, it looks as if an attempt by the Democrats to overturn or at least to get rid

of the law has been thwarted by Republicans.

This is going to be an almighty fighting ground, the likes of which arguably we've not seen before.

HOLMES: When it comes to abortion, its going to be a key issue in the 2024 election and we know that. We look at both sides. Abortion is going to be

what Democrats run on as they should. Because if you look at polling, it shows that most of the country supports more lenient reproductive rights.

They do not want harsh abortion restrictions, and that is something that we saw in let states like Ohio and Kansas, who earlier this year, Republicans

got on board and essentially stopped these amendments to the Constitution that would have limited reproductive rights.

It is not a popular issue and its one that Donald Trump has gotten to navigate because he is the modern day architect of the overturning of Roe

v. Wade, and he still wants to take credit for that while knowing that this is a problem for him.

QUEST: Yes, and that is the conundrum. How to take credit for the bit that you like and not the consequences that you don't.

Good to see you. I am grateful. Thank you.

Now, as we continue tonight, an Israeli airstrike targeting the family of a Hamas leader. How he says the group will respond. We will talk and show you

after the break.



QUEST: The head of Hamas says the group won't back down even as he got word that three of his sons were killed in an Israeli airstrike. Ismail Haniyeh

says the targeting of family members of the group's leaders would only increase its resolved. Israel has confirmed the deaths, saying the sons

were Hamas military operatives. And the group is indicating it currently can't track 40 Israeli hostages to exchange who would fit the criteria for

the first phase of a ceasefire deal.

Jeremy is with me. Jeremy Diamond in Jerusalem.

Let's take this sort of point-by-point. First of all, let's deal with the deaths of these three sons. And when he says they will not take them,

they're going to retaliate or whatever, what does it mean?

JEREMY DIAMOND, CNN CORRESPONDENT: Sorry, say that again, Richard?

QUEST: Well, when the Hamas leader who lost his three sons says that they will be -- that they respond in kind, what does he mean, bearing in mind

they're already engaged in the most brutal of wars with Israel?

DIAMOND: Yes, I think that's very much an open question. I don't exactly know how he would respond, but I think the concern is that this could be

impacting the negotiations that have already been pretty tough over the course of the last several weeks. We know that Israel and Hamas are trying

to strike a deal for a potential ceasefire and the release of some 40 Israeli hostages. But there have been a number of stumbling blocks, and

this could potentially be the latest one.

And that's why tonight, Richard, Israeli officials are scrambling to try and distinguish between this Israeli military strike that took out three of

Haniyeh's sons, as well as three of his grandchildren, according to sources on the ground, but trying to distinguish between that and the political

negotiations at the table. Tonight Israeli officials are telling me that Benjamin Netanyahu and Yoav Gallant were not aware of this strike taking

place before it happened, trying to draw a very bright line between this military operation and those ongoing negotiations in Cairo and Qatar.

QUEST: The issue of the hostages and the inability to locate them, this was -- this was always going to be a mega problem, well, more than that, a

tragedy, in a sense that pretty much from the first moment they were taken, we knew that they had been dispersed to renegade parts, even of Hamas, and

now, well, no one knows where they are, or even if they're alive.

DIAMOND: Well, there are two kind of major issues here, Richard. On the one hand, there is this notion that Hamas may not have full visibility, full

knowledge of the whereabouts of all of these hostages, and that they say that they cannot at this moment identify 40 hostages who meet that

category, who are set to be released in this first phase of the agreement. We're talking about the remaining female hostages, as well as elderly men

and other men who are sick or who are injured.

But the second issue is that Hamas is also indicating that they do not have 40 hostages in that category, meaning that there may be more hostages than

we currently know who have -- those who have currently been confirmed dead, who may in fact be dead as well, indicating that the death toll of Israeli

hostages currently held in captivity may be higher than we know.


An Israeli official told me that Israel has suggested filling out the remainder of that category with some of the military age men or the Israeli

soldiers who are being held. But that is still a major question going forward.

QUEST: Jeremy, before we sort of finish, I mean, the awfulness of a situation where those who took hostages, I mean, appalling in its own

right, now can't even maintain their duty of being able to tell us, do they still have them? It's an incredible situation. Those who took it can't even

tell you that.

DIAMOND: Yes. No doubt about it. I mean, Hamas, you know, if you ask them for their explanation of why that is, they say that it is the state of this

war zone that Gaza has become, that does not give them the ability to have this kind of full insight into where these people are being held. But

beyond that, of course, Richard, we know that part of this has to do with the fact that it wasn't just Hamas, but it was also Palestinian Islamic

jihad that took hostages, and there were also civilians in Gaza who entered after those militants, and also have been reported to be involved in the

taking and holding of hostages.

So a whole host of issues here, but certainly very difficult and very heartbreaking for the families of those who remain captive.

QUEST: Jeremy, I'm grateful. It's late for you in Jerusalem. Thank you, sir.

President Zelenskyy says Ukraine could break Putin's backbone with the right military support. He was speaking to Fred Pleitgen at the Delphi

Economic Forum in Greece. Zelenskyy said the situation has stabilized in Eastern Ukraine, and he called of course on the West to hurry up with its

deliveries of new weapons to turn the tide against Russia.


VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): I understand that this is not easy and everybody is thinking about one's self and we are

grateful to all our partners, but what we have now is not sufficient if we want to truly prevail over Putin, if nobody wants Putin to drag the world

into third world war.

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Thank you, Mr. President. As you know, there was a report out this week that allegedly,

if, and it's still a very big if, Donald Trump is elected president of the United States in November, that he would essentially force Ukraine into a

call it a peace deal with Russia that would force Ukraine to cede territory like, for instance, giving up on getting back Crimea and also ceding the

Donbas region. Would you ever be willing to give up Ukrainian territory for peace?

ZELENSKYY (through translator): First and foremost those signals were on certain media platforms. I haven't heard that directly from Trump. His

ideas in detail, I did not have an opportunity to discuss them with him, and to discuss his ideas on how to end the war. If I have such opportunity,

I will, with pleasure, listen to them and then we can discuss the topic.


QUEST: Moving on, Gen Z is entering the workforce and many of them on non- too pleased about their economic prospects. Gen Z, well, according to the U.S. job market, is in their favor at the moment. And employment for people

aged 16 to 24 is around 8 percent. It was more than 18 percent in 2010 when millennials were getting started.

Inflation, now it's coming down, but it has been high. You can see why rent payments or savings for home can seem far out of reach.

Allison Morrow is with me to discuss this.

What are they complaining about now?

ALLISON MORROW, CNN BUSINESS SENIOR WRITER: I mean, I'm with you. As an older millennial myself, I am jealous of the job market the Gen Z is

graduating college and joining right now. You know, the numbers speak for themselves. The unemployment rate was terrible in 2008, 2010, and now it's

a much better situation. There are tons of entry-level jobs and we're seeing wages grow faster for those entry-level jobs.

So it's a very enviable, you know, some have said the best economy that we've seen for a generation entering the workforce in 50 years.

QUEST: Except they have never seen and with respect to yourself, I would include you as well, it's only old folks like me, who can sort of go back

far enough, you've never seen that sort of double-digit inflation where you realize your paycheck or your allowance or whatever it is, the work that

you're doing doesn't go as far as you thought it was going to go. That prices are going up faster than you can cope with.


MORROW: Absolutely. Yes, we've never seen inflation really in any appreciable way. And inflation becomes a lot harder to survive when you're

not a homeowner and you've been kind of shout out of the housing market as many millennials and Gen Z have been. And so that's adding to the kind of

financial angst that people are expressing.

The other thing I think that's happening here is important to note that Gen Z is the first generation entering the workforce with as much social media

exposure as they have, and that we know that algorithms create a negative feedback loop. And the bad news about high prices kind of get turns into a

spiral and creates this viral content that I've written about in my piece today.

QUEST: Do you think, though, that they are better at handling it because they've grown up with it, and it's sort of been part of their lives more

than that, or have they inculcated it to such an extent that they're on a downward spiral regardless?

MORROW: The negativity seems to be particularly pronounced in part because they've grown up with it, and, you know, they're starting at a

disadvantage. You know, they are like any generation entering the workforce, they're starting at the lower price point, the lower wages and

they're entry-level jobs, they're going to have to pay their dues.

QUEST: "Nightcap," tell me about it. Where can I get it? How do I see it? What's it all about?

MORROW: Go to and sign up for the newsletter.

QUEST: We will certainly. Thank you very much. I'm grateful to you.

MORROW: Thank you.

QUEST: Tough day for the major averages. The Dow fell more than 400 points on the hot U.S. inflation report. It's raising more questions.

And that's QUEST MEANS BUSINESS for this Wednesday. Wednesday. I'm Richard Quest in New York. Whatever you're up to in the hours ahead, I hope it's