janet yellin took the stage and stocks took off. the federal reserve dropped the words investors obsessing over patient, from its so-called policy statement. that's the explanation and outlook the fed gives at the end of its monetary meeting. will the fed become impatient? you heard her say no not so in deciding when to raise interest rates, quite the contrary said chair yellin. said the fed will remain cautious and focused on economic data and some of that data said the fed indicates the pace of economic growth in the u.s. has moderated lately and that launched stocks like an f-18 off a carrier deck. rose 227 points. close above 18,000 trading in a 1400 point range. nasdaq gained 45. s&p 500 tacked on 25. the yield on the 10-year bond fell back below 2%. and one of the biggest moves was in the currency market as the dollar slumped and the euro jumped. two reports tonight. bob pisani on the markets. sharp reaction from the new york stock exchange but first, hampton pearson has more on what some are calling the federal reserve's most

. >>> ready or not, fed chair janet yellin said a rate hike is likely this year even as economic growth remains cool. >>> profit picture and it's not pretty. just how weak will corporate earnings be and what does it mean for investors? >>> market monitor. a list of stocks he says could deliver double digit returns for you over the next year. all that and more tonight on "nightly business report" for friday, march 27th. >>> good evening. gradual and conscious. that's how federal reserve chair janet yellin described the path ahead for interest rates that's become one of the biggest guessing gapes on wall street. in prepare for a conference call by the feder reserve bank of san francisco, yellin said it all hinges on the economy and the data. >> i'm cautiously optimistic in the context of moderate gross and aggregate outwardly spending labor market conditions are likely to improve further in coming months. in particular and despite the somewhat disappointing tone of recent retail sales data i think consumer spending is likely to expand at a good clip this year. >> and one number yellin is

janet yellin will be speaking in san francisco. many strategyist gisted say long-term the dollar trend higher is still very much in place, but a lot depends on what the fed says and what the fed does. >> you love to talk about the dollar, and you love to jab it up my nose that i don't know what i'm talking about with currencies, and you are true. i'm not a currency group, but i'm going to stump you. the dollar euro one of the best trades. currency cross-wise. do you know what the best currency trade is so far this year? up 14.5% year-to-date sarah. >> is it norway or sweden? >> well close. similar people. switzerland. >> switzerland. oh yeah of course. >> they hold the shocker central bank move. >> up 14.5%. sfwroo should have guessed that. >> kind of like norway. pretty. late. right. i just made that up. >> time now for street talk. a look at five analyst calls. always working to find new opportunities, america. put your head up and let's go. first up is m bridge energy partners ticker eeb. you want to hit it? >> sure. started cov

rate rises, following janet yellin's cautious approach. that's the business for this hour. one thinks they're going to be in an accident. which is why no one wants insurance. so we go cheap. you know, because we're never gonna need it. until one day, we do. now that cut-rate policy is costing us big. makes you wonder if there's something better out there . see car insurance in a whole new light. liberty mutual insurance. hershey's miniatures. we pour 'em! we pass 'em! we pick 'em! delicious fun for everyone. hershey's miniatures are mine, yours, our chocolate. now? >>> hello. this is sports today, live from the bbc sports center. coming up, barcelona dusts out of the champion league. and pelgreeni thinks his job is safe. and prepare for some hard-hitting tennis. raphael nadal sets up a clash with milash. hello wherever you are around the world, welcome to sport today. first up let's get the latest from the world cup quarter final between india and bangladesh at the mcg. india are well on top and heading for victory right now. they hit the

. >>> ready or not, fed chair janet yellin said a rate hike is likely this year even as economic growth remains cool. >>> profit picture and it's not pretty. just how weak will corporate earnings be and what does it mean for investors? >>> market monitor. a list of stocks he says could deliver double digit returns for you over the next year. all that and more tonight on "nightly business report" for friday, march 27th. >>> good evening. gradual and conscious. that's how federal reserve chair janet yellin described the path ahead for interest rates that's become one of the biggest guessing gapes on wall street. in prepare for a conference call by the feder reserve bank

but up next our janet yellin and company actually kowtowing to the stock market. we have steve liesman and the pros talking that out when we come back on "closing bell." in my world, wall isn't a street. return on investment isn't the only return i'm looking forward to. for some every dollar is earned with sweat, sacrifice, courage. which is why usaa is honored to help our members with everything from investing for retirement to saving for college. our commitment to current and former military members and their families is without equal. start investing with as little as fifty dollars. >>> just because we removed the word "patient" from the statement doesn't mean we're going to be impatient. >> and that statement, more than anything else yesterday, may have helped send the dow up more than 200 points when all was said and done. some believed it may have even been directed at the u.s. markets. is this fed more attune to market whims than it has been in the past? and if so is that a good thing or a bad thing? joining me right now with their takes on that joel lavorg

much is going to depend on the tone of fed chair janet yellin's statements following the policy meeting later today. analysts say there still may be a good reason for the fed not to raise rates just yet. as they still need to look at a lot of key economic data coming through, that's going to be a big focus. >> what about here in japan 37 there seems to be some developments to watch for in the gaming sector. tell us about that. >> a lot of developments there, a big focus, i wanted to follow on with nintendo and its plans to make aggressive moves into the mobile gaming market by teeming up with dna, which is one of japan's major mobile gamemakers, the two plan on developing mobile applications or applications for mobile devices. to move away from really relying mainly on consoles for nintendo. that's a big focus for that sector. >> give us an update on currencies, the dollar is still going strong. weighing on commodity prices it looks like. >> big focus there on what the strength of the dollar is doing to commodity prices. and dollar yen right now. really analysts saying the pace of the r

much is going to depend on the tone of fed chair janet yellin's statements following the policy meeting later today. analysts say there still may be a good reason for the fed not to raise rates just yet. as they still need to look at a lot of key economic data coming through, that's going to be a big focus. >> what about here in japan 37 there seems to be some developments to watch for in the gaming sector. tell us about that. >> a lot of developments there, a big focus, i wanted to follow on with nintendo and its plans to make aggressive moves into the mobile gaming market by teeming up with dna, which is one of japan's major mobile gamemakers, the two plan on developing mobile applications or applications for mobile devices. to move away from really relying mainly on consoles for nintendo. that's a big focus for that sector. >> give us an update on currencies, the dollar is still going strong. >> big focus there on what the strength of the dollar is doing to commodity prices. and dollar yen right now. really analysts saying the pace of the rise in the dollar is the second biggest in 4

. >>> ready or not, fed chair janet yellin said a rate hike is likely this year even as economic growth remains cool. >>> profit picture and it's not pretty. just how weak will corporate earnings be and what does it mean for investors? >>> market monitor. a list of stocks he says could deliver double digit returns for you over the next year. all that and more tonight on "nightly business report" for friday, march 27th. >>> good evening. gradual and conscious. that's how federal reserve chair janet yellin described the path ahead for interest rates that's become one of the biggest guessing gapes on wall street. in prepare for a conference call by the feder r

chair janet yellin will release the statement wednesday and hold a press conference. after the close of trading on wednesday, some reshuffling in the dow jones industrial average. apple replaces at&t and the dow component, nike reports earnings thursday. >>> backlogs delays there's a gridlock problem plaguing our nation's rail system. as the economy improves more goods are traveling across the country by rail leading to traffic jams on the tracks. and as morgan brennan reports from belleview, ohio companies are making big investments to fix th. >> reporter: they call it the belleview symphony. and it's only getting louder. >> we are currently processing 1800 cars a day and that number grows to 28 rkds 30030 cars a day. >> alleviates congestion. >> reporter: $165 million into doubling capacity where the train car filled with coal grain, even corn syrup comes through each day to be sorted and sent out to other parts of north america. but as more goods move by rail, companies struggled with unprecedented congestion. >> it was a major concern last year. we did not provide

yellin then the federal reserve bank of san francisco, argued strongly for the central bank to ramp up its efforts to increase growth. she pushed hard for more bond buying ahead of the open markets committee. somes prevailing sometimes not. but the 2009 transcripts cement her reputation as an easy money dove at that time. >>> a surprise rate cut by the central bank of india. that was the second rate cut this year joining other central banks easing monetary policy. the main repurchase rate cut to 7.5% citing economic weakness. about a dozen cut rates in an effort to stave off deflation. >>> hospital stocks rose today as the supreme court heard arguments challenging the signature health care law. we told you the case focuses on a statute and whether some subsidies are illegal based on the law. shares of hospital operators rose as kennedy raised concerns about the negative impact on states if the government loses the case and subsidies go away for many owners of health care policies. tenant hca holdings, community health systems, all up more than 5%. hampton pearson has more from the s

yellin then the federal reserve bank of san francisco, argued strongly for the central bank to ramp up its efforts to increase growth. she pushed hard for more bond buying ahead of the open markets committee. somes prevailing sometimes not. but the 2009 transcripts cement her reputation as an easy money dove at that time. >>> a surprise rate cut by the central bank of india. that was the second rate cut this year joining other central banks easing monetary policy. the main repurchase rate cut to 7.5% citing economic weakness. about a dozen cut rates in an effort to stave off deflation. >>> hospital stocks rose today as the supreme court heard arguments challenging the signature health care law. we told you the case focuses on a statute and whether some subsidies are illegal based on the law. shares of hospital operators rose as kennedy raised concerns about the negative impact on states if the government loses the case and subsidies go away for manyr owners of health care policies. tenant hca holdings, community health systems, all up more than 5%. hampton pearson has more from the

janet yellin took the stage and stocks took off. the fed

janet yellin took the stage and stocks took off. th

yellin friday. tuesday, maybe most important the government will release the federal consumer price index. economists look for a 0.2% rise that will only partially reverse the 0.7 decline in january. so year over year and further complicating the outlook for fed policy prices will still be falling in the u.s. raising the question, why exactly are they going to raise rates? for "nightly business report," i'm steve liesman. >>> still ahead, strong as steel? not so much. why some companies in the sector >>> federal trade commission made the decision in 2012 not to sue google for alleged anti-trust violations. as reported by "the wall street journal" and based on a confidential report google's search algorithm would place its own services above those of its competitors in search for results. fdc experts wanted to sue the company but instead settled the the investigation in 2013 when google agreed to change business practices. >>> av steel the latest to warn about profit outlook. reason? the imports of t

yellin friday. tuesday, maybe most important the government will release the federal consumer price index. economists look for a 0.2% rise that will only partially reverse the 0.7 decline in january. so year over year and further complicating the outlook for fed policy prices will still be falling in the u.s. raising the question, why exactly are they going to raise rates? for "nightly business report," i'm steve liesman. >>> still ahead, strong as steel? not so much. why some companies in the sector >>> federal trade commission made the decision in 2012 not to sue google for alleged anti-trust violations. as repornsd by "the wall street journal" and based on a confidential report google's search algorithm would place its own services above those of its competitors in search for results. fdc experts wanted to sue the company but instead settled the the investigation in 2013 when google agreed to change business practices. >>> av steel the latest to warn about profit outlook. reason? the imports of t

federal reserve chair janet yellin is giving a speech on monetary policy in san francisco. the third and final read on fourth quarter gdp is due out before the opening bell and the university of michigan sentiment index gives us a read on how the consumer was feeling about the economy this month. >>> well, as home prices continue to rise, house slippers are coming many markets. they're buying rehabbing and quickly selling but this time around is different. they're doing it with a new brand of funding. diana olick explains from bolingbrook, illinois. >> reporter: ben is flipping suburban chicago homes full-time at a fast clip but he's getting no help from the big banks. >> w 2 without a pay stub won't process the application. >> reporter: in e new era of tight lending, wall hood to the crowd, a platform called realty shares. founded the company two years ago. >> we're not in place for real estate investing. they can create a free account and have investments across the country. >> reporter: like wallhood chicago area homes. for a minimum of $5,000 a credited investor can get

a judge decides radioshack's bank in court and a run-up of chair janet yellin speech on friday. james folad. that's what to watch. >>> one of the highest paid television personalities in britain and the world in the host of one of the bbc's most profitable franchises has been sacked. jeromy clarkson already suspended for allegedly punching a producer on his popular show "top gear" was told today that his contract with the bbc won't be renewed and what a contract it was. in all he pulled down about $21 million last year. clarkson who was apparently miffed when the producer couldn't produce a state dinner for him at a yorkshire hotel. helped turn top gear into a cash cow for the bbc. in fact it's one of the most watched television shows in the world in all. "top gear" $1.5 billion franchise. estimated 350 million people in about 170 countries it's viewed by. >>> it's been a month since the temporary deal to end the slowdown at the west coast ports. as jane wells reports from the port of los port is getting creative to cut through all congestion. >> reporter: after months of conges

a judge decides radioshack's bank in court and a run-up of chair janet yellin speech on friday. james folad. that's what to watch. >>> one of the highest paid television personalities in britain and the world in the host of one of the bbc's most profitable franchises has been sacked. jeromy clarkson already suspended for allegedly pund ing a producer on his popular show "top gear" was told today that his contract with the bbc won't be renewed and what a contract it was. in all he pulled down about $21 million last year. clarkson who was apparently miffed when the producer couldn't produce a state dinner for him at a yorkshire hotel. helped turn top gear into a cash cow for the bbc. in fact it's one of the most watched television shows in the world in all. "top gear" $1.5 billion franchise. estimated 350 million people in about 170 countries it's viewed by. >>> it's been a month since the temporary deal to end the slowdown at the west coast ports. as jane wells reports from the port of los port is getting creative to cut through all congestion. >> reporter: after months of conges

. >>> we're going to turn to the economy now and the dow surging after federal reserve chairman janet yellin saying they might raise interest rates after april. >>> overseas tonight, prime minister benjamin netanyahu re-elected. declaring a huge victory after final returns came in. his main rival conceding, clearing the way now for a fourth term. >>> back here at home tonight, and to the weather now. and after that warmup bone-chilling cold and powerful winds returning. in new jersey this massive tree uprooted on a family's front lawn. in maine, the snow yikes, rush returning. great to see you, ginger but not the snow coming back. >> reporter: no. and just in time for the official start for spring. let's look at the temperatures david. that high pressure system really in control, pulling down that canadian cold air. 27 is where we'll start in new york city. pittsburgh in the 20s. syracuse only in the teens. single digits for some people in new england. now, as this pacific moisture mixed with the low pressure system that's dropped four-plus inches in places just west of corpus christi

>> it is going to be the dollar, and greece and the dollar going into it, and i heard janet yellin to be hawkish. >> she didn't say anything new, did she? >> well, this is what she said new, because of the lack, the lag in central bank policy, they have to act sooner than would be expected. and that is different than what she said in the past which makes me think that they are closer to raising the rates than a week ago. >> but it is going to be gradual, and that is it. >> and the market is going to immediately price in the terminal rate. >> and the hiatus from the dollar strength is coming back, and a major headwind for the corporatio corporations, and fx is a problem, and greece could be back on the headlines again, and this is everything that we have been worried about on the desk, and i know that we have shis rugged it off, but at this point, if you look at the charpts, i think that we are in for a little bit of the roller coaster in the next couple of weeks. >> and dan, alcoa in the next couple of weeks, and the earnings are back up, and that is a worry. >> yes, expect weak q2 gu

. >>> we're going to turn to the economy now and the dow surging after federal reserve chairman janet yellin saying they might raise interest rates after april. >>> overseas tonight, prime minister benjamin netanyahu re-elected. declaring a huge victory after final returns came in. his main rival conceding, clearing the way now for a fourth term. >>> back here at home tonight, and to the weather now. and after that warmup bone-chilling cold and powerful winds returning. in new jersey this massive tree uprooted on a family's front lawn. in maine, the snow yikes, rush returning. great to see you, ginger but not the snow coming back. >> reporter: no. and just in time for the official start for spring. let's look at the temperatures david. that high pressure system really in control, pulling down that canadian cold air. 27 is where we'll start in new york city. pittsburgh in the 20s. syracuse only in the teens. single digits for som new england. now, as this pacific moisture mixed with the low pressure system that's dropped four-plus inches in places just west of corpus christi, texas, th

nervousness about what janet yellin and co are going to say in that statement. but interesting, we've watched today the dollar actually turn positive. the dollar index a little bit. the euro is a little bit stronger. that's usually positive for gold, but hasn't seemed to really helped out in the metals. a bit of a reversal tuesday. they gave up the gains from yesterday. but what's interesting is, we are seeing a reversal when it comes to light sweet crude. nymex crude has moved right on up with the dollar here today. it is options expirations, so we are seeing volatility quite a bit when it comes to that oil price quite a bit. back to you. >> thank you, bertha for the gold closing. let's get a check on the bond market, as the fed kicks off this two-day meeting. rick santelli is getting ready for chairman yellin in chicago. hi, rick. >> we're all getting ready. if you look at a two-day chart of tens they're getting ready to small range, there is a drift lower. i don't care how good permits were. you can't put enough lipstick on that particular number. let's open

to the economy now and the dow surging up more than 220 points today after federal reserve chairman janet yellin signalled for the first time in nine years may might raise interest rates ss sometime after april. >>> overseas tonight, prime minister benjamin netanyahu re-elected. declaring a huge victory after final returns came in. his main rival conceding, clearing the way now for a fourth term. >>> back here at home tonight, and to the weather now. and after that warmup, tonight, bone-chilling cold and powerful winds returning. in westwood, new jersey, this massive tree uprooted right on a family's front lawn. and in bangor, maine, the snow -- yikes -- returning. and so is chief meteorologist ginger zee. great to see you, but not the snow that's coming back. >> reporter: no and just in time for the official start for spring. snow for some. i'll bring you there. but let's first look at the temperatures, david. that high pressure system really in control, pulling down that canadian cold air. 27 is where we'll start the morning in new york city. pittsburgh in the 20s. syracuse, only in the

janet yellin will hold a news conference half hour later washington. we will have live coverage of both. peter cook is at the fat. we will hear from him in a few minutes. also joining us, constance hunter, chief economist at alternative investments. a senior forex strategist. these are brought moments -- lisa abramowitz standing by. let me begin with this. 69% of the 49 economists surveyed by bloomberg news believe the fed will remove the word "patient" from its forward guidance language. will it be taken out and will it be replaced by some other form of guidance? >> i think they will take it out. i don't think they will replace it with another word per se. they realize having this word creates a bunch of interest of when it gets removed. i don't think that stops them from being patient. the fed will be patient. they will be data dependent. >> will they take it out? >> we have a 5% probability it doesn't happen. they will take it out. we are going for a rate hike in june. >> what is the bond market expecting? >> the bond market is expecting that they w

charles: every time janet yellin opens her mouth, i'm not sure what she is saying. what did you make of that? >> i think it's probably by design, i can't tell whether she's a hawk or a dove. this economy has ridden on the back of monetary policy and little has been done from the fiscal front. the administration taking their eye off the ball. we all have a lot to be talking about because they didn't get the job done. but we are going to have to do something about taxes, we are going to have to go to a flatter tax, a progrowth agenda, i'm sure everyone will vote for the no tax. charles: going to the next "the real, real deal." intel, one of those big giants with updates of money putting it to work. on the stock buyback, this is what i like to see. even though they all did not come back, it was in the day and could trigger a string of deals. >> i think it's a big bounce for us. >> why did you own it before today? if you like the lumbering giant didn't have a lot of things going on. >> they dealt with his earlier this week, i think that they are a leader that has taken

central bank opened the door for a rate hike since early june but janet yellin made it very clear, the committee needs to see more jobs created and inflation first. and that caused big gains on wall street. >>> now lastly internet giant yahoo! is closing its china office as part of a worldwide consolidation aimed at cutting cost. it's the only remaining physical presence in the country, after it sold its chinese operations to alibaba in 2005. a spokesman said around 350 jobs would be eliminated. we'll have more on those stories for you in world business report throughout the day. now back to david. >> alice, thanks very much indeed. thanks for watching bbc world news. stay with us if you can. we have something special coming up. we'll be talking live to one of the pilots of the solar-powered plane attempting to fly right around the world. it's coming en route to myanmar. will twizzlers mixed berry bites ever end their rivalry with jolly rancher filled gummy bites? not today. bites. little greatness. >>> you're watching bbc world news. i'm david eades. the latest headlines. 23 people ar

janet yellin speaks. let's check in with alan host hostler: what a crazy three hours it's been. >> crazy, kelly. over 135,000 people dipped their toe into fed coverage in one way or another. the centerpiece was the live blog from the statement to the market reaction through the press conference with jabtnet yellin. 46% of readers think the fed is more clear than before. we had a red line up which brings our readers inner criminologist. to compare the statements side by side, people love that one. the big difference is dropping the word patient which got people into a write-up where he thinks the new word is prudence as they look at the data points like wage inflation, strength of the dollar to make their decision. so that's the wrap kelly. all fit. >> so use of the word prudence has changed so much over time but i digress. thanks alan wastler. the fed's big move today and don't miss jim cramer's announcement. the controversy on having workers, discuss race relations with customers. that's tonight at 6 p.m

i don't believe janet yellin is going to undo the good that's been done but i do believe that places outside the u.s. like europe are fwegt into the position we were six years ago. europe and it's up 15% year-to-date. tomorrow ecb begins buying its quantity takive easing program that causes the six-year bull market to cause prices to triple in the stock market over the last six years. >> all right. remember well, always say don't fight the fed. now it's going to be don't fight the ecb. that's it for the first hour of power. i'm going to disappear. tyler, are saying and doing double duty. >> absolutely. >> thanks, mandy. >> it is 2:00 p.m. on wall street. do you know where your anchor is? he is out in colorado on vacation? it's noon in silicon valley. welcome, folks torque the second hour of power in for brian sullivan. melissa lee is over at nasdaq. we kick things off with the triple digit slide for the dow. you're looking at all 30 dow stocks right there. is any one of them green? no. that adds up to about a 250 point decline in the dow. that heat map is going to get one big makeove

presumably, janet yellin is going to tell you exactly what their thought process is. are we going to get specific comments on currencies impact on their mind-set when it comes to raising rates and what's the impact on the market? >> i think they'll be asked those questions, but i think they'll be very vague about it, because they don't want to say currency is really driving where they're going to go with rates. they're going to focus -- we talked about flexibility and we'll focus on watching the data and seeing where the economy is going. >> do you have a trade for the second half of this day, ahead of tomorrow? >> i think the way oil is going, i think you buy the transports. the transports will do much better as oil keeps on going down. >> pete, what about you? >> i like these transports. he and i have been on these airlines for a really long time together. >> which have underperformed, by the way. >> underperformed, year-to-date. they've had some ups and downs since the beginning of the year after a phenomenal year last year. >> liking something that's very unlikabl

tom: when does janet yellin begin to raise rates? anyway june guy or september guy? >> the summer of this year. that puts me june-julyish. i am consistent. tom: he would give me an answer. olivia: time to answer our twitter question of the day. should we raise the minimum wage? "it will curtail government social spending and raise corporate profits." "a hike in minimum wages benefits marginal employees who retain their jobs." tom: these are way too microeconomic for a friday morning. olivia: did you think gwyneth paltrow was watching? "more beer money for 21 million college students." >> i think the u.s. has had a minimum wage for a long time and it has served our country's interests. it has been at $7.25 for several years. you are seeing states raised them in wage. red states voting overwhelmingly to raise the minimum wage. tom: is there any research indication that the drama of a double-digit minimum wage cuts jobs, cuts output cuts spirit? >> i think the weight of the evidence suggests a moderate minimum wage benefits the economy. when you talk about double-digit,

. >> how does that change in the three days before janet yellin gets her news conference? are we treading water until then? >> we might be. i would expect volatility to increase. as we get closer to that event speculators and hedgers will come in and push the price higher. for someone concerned about that , i would want to be looking for protection now. >> looking for protection now. let's get to your trade on adobe. such report earnings on march 17. it tends to rally, in six of the last eight quarters. will we expect the same going forward? >> i think we will expect a move higher. it moves a lot on earnings day. this time around, the options market is targeting just above $81. i can look for a call spread out to next week's expiration for fix $.60. i'm getting a bit more aggressive because the move they are implying is a bit cheaper than that 7% average. i can better than triple my money if i'm right here. >> give me an overview of the market because we are still getting troops and drabs of earnings -- drips and drabs of earnings. >> we are technically driven right now at

yellin is, it seems to me that she's still in control. you have more of a convergence of fisher moving towards yellin than yellin moving towards fisher, who is supposedly a little more hawkish on policy than ms. yellin was. >> do you see it that way? >> not quite. first of all, i think, ron, if i could correct the record i think he said this year when he spoke. it was the first time that had been said quite so definitively. i think, on the other hand i think that the vice chair is going to have to be at least publicly close to the chair. my thinking of stan fischer is he represents in many ways his own orbit, but an orbit not for this moment. when -- i think he is pushing the fed towards normalization. that's where he wants to be but he can't do so too quickly, and he is going to be the guy who is the guy you want there when they start to normalize. kind of like a throwback. here's the story. i think that the normalization camp won one, but not definitively, and it dpoendz the data. if they get where they're going to go, ron, then he is g

yellin. here's what he told carl can't feea this morning on quack alley. >> she has to deal with the real realities of the world. the realities of the world is we have a soaring dollar, and the affects on that soaring dollar are just starting to be felt. you know it's going to make u.s. exports more expensive. what does that mean for u.s. manufacturing? what does that mean for u.s. jobs? it's not going to be positive. >> ron insana at market fi.com. a cnbc contributor. mr. koen says it's not going to be good for american manufacturing or american jobs. is it going to be good for american portfolios? >> maybe not. i'm concerned that the market is getting a little tired here, and we've seen some underlying technical deterioration. it might be time to hedge. >> rule of thumb every 10% increase in the dollar is like a 50 basis point hike in interest rates. dollar is now up 20% year over year. it shot straight up against major currencies. it's up very sharply against the your wroe. it is already,

now, janet yellin throughout this thing is more concerned than others around her with the economy, more concerned with declining inflation, lower unemployment. here's one thing she does bring to the table. she says "another disturbing sign of how tough things are getting is that people are going to be breaking into their piggy banks to make ends meet." tyler, there's one line in there that says yellin who ran simulations said if we did this according to the models we would have a negative federal funds rate of 6%. that's how much stimulus the fed's models at the time we had to do. >> they were stuck at zero. they would not go negative but the models at the time they were looking at showed 6%. this was a time of extraordinary history, extraordinary fear around the table. there was option a and option b, and bernanke said you know what let's do them both. >> go big or go home. >> there was agreement around the table. one other thing, they were all doves in the fox hole. people who would later emerge as hawks, jeff -- they were all in agreement that the fed needed to act big. >> i think th

. >> it could, but i would take my cues more from what janet yellin said last friday as posed to the reading in the payroll report this friday. i think what you are seeing is the fed is going to take an incredibly pragmatic approach towards raising rates, and they've sent clear signals to us that this is not going tobacco set railed. in my opinion, unless you have something extraordinary on friday that radically changed the fed's thinking, i think what you are going to see is good news is actually good news this time in terms of the equity markets. >> good news is good news. okay. mike and david, thank you very much for joining us. you can also go to power lunch.cnbc.com to see how mike ryan sees the cap x slowdown from others, and how you can play it. ty. >> mandy, it may not look like much, but coming up we're going to tell you why this house, yes, that one, is so important to san francisco real estate right now. that story and more when we come back in two minutes. >>> united health is buying catamaran. that's $61.60 per share. hyperion xwhoe all these deals in cash. a wig deal da

. >> well we've been yelling so much about janet yellin do we even remember ben bernanke? remember him? we haven't heard from him in a while, but he spoke today at the brookings institute in washington d.c. when ben bernanke is speaking you better bet your bottom dollar that steve liesman is going to find him zoosh he has been on the speaking circuit talking for a fee, but not necessarily always publicly. very rarely sitting down for public interviews with the media. this time on tape and he was at a conference this morning at the brookings institute where he actually works and where he is completing his book due out in the fall and he was asked about this issue of a bill that would require the federal reserve to follow a monetary policy rule or formula. you can bet what he thought about that. if the fed is always taking actions like that and congress is pushing back and saying no you're violating the rule i think that is less direct of the fed, but i think it still is a way in which congress would exert undue influence of monetary policy. >> so the former fed chairman joi

i think that's happening is wall street was trying to look at janet yellin's comments very closely. they were following her comments on the dollar but also trying to understand where the federal reserve board was going in terms of interest rates. and the fomc is trying to ballet couple of things. they have two clear mandates. they need to keep inflation low, but they also want to keep unemployment low. they're constantly trying to balance those two things. wall street is watching to see whether the federal reserve thinks that the economy is overheating and is going to need to raise interest rates dramatically quickly. it doesn't appear to be the case and, therefore, you saw the markets rallying. >> so, connie i know for folks who are not cnbc watchers they might have said what just happened in nerdland. why are we talking about this idea of the dollar and global marketplaces. i teased about a european vacation becoming more affordable but in a real way for ordinary americans earning wages, what does the strength of the dollar mean one way or the other? >> the strength of the dollar