or not to ease. what that means for the economy in 2014. decoding the just concluded federal reserve meeting is the inside story. ray suarez. what the federal reserve decides has a direct impact on the economy, and your pocketbook and effects felt around the world. since the great recession the federal reserve has taken interest rates to historic lows and used its power to stimulate the economy using quantitative easing. ben bernanke announced the feds will scale back the program next year. we'll decode the fed's actions, look ahead to the tenure of incoming fed chairman janet yellen and look at the recovering economy. >>> the federal reserve wrapped up two days of policy meetings and concluded the u.s. economy is strong enough to start tapering the banks investment program known as qualitative easing. >> starting in january we'll purchasscale back purchases. >> reporter: the positive signs are few but strong. unemployment reached 7% in november. the s&p 500 gained 25% just in the past year. the highest in a decade. and congress passed a budget for the first time in four year

>> the afl-cio president richard trumka sits down tomorrow to discuss the economy and the state of u.s. labor unions. to get started at 8:00 a.m. eastern. and on c-span3, a forum on mexico's decision to private investment for the first time in 75 years, ending the state monopoly. that is live from the atlantic council at 8:30 p.m. eastern. >> like so many of the viewers, you know, i would do the annual consideration of the things they care about because they were important to us as we grew up and at martha's table, they delivered hot meals to the little park outside of the gates foundation and the dc offices and i would see that then. every night. and i would see the lines of people there every night. and i knew that it was 10,000 volunteers, 80 hard-working staff. and that they had enormous influence in the community that they were serving that was a great brand, and i thought, why would i not join that organization and see if i can put my skills to work and also see if i can understand better. and why do we have this issue that is persistent with child poverty. and so many childr

because we can do something doesn't mean we should.ily gwen: or the economy and the budget. >> it has been about a little four years now since the recovery began. years. it has been a slow recovery. pathis is not the right forward. my constituents back home in wyoming and americans across country deserve better. >> we showed compromise is not a word. gwen: but there are still far more questions than answers. president's year and review and what it tells us about the state of the nation with stan of the washington post. today.avis of u.s.a. greg of the economist and pete news.ms of nbc >> award winning reporting and history as iting happens. capital, our nation's this is "washington week with gwen ifill." funding for "washington week" is provided by: >> additional corporate funding for "washington week" is provided by prudential. funding is provided :y th clash thank you. >> once again, live from moderator gwen ifill. gwen: good evening. custom,ecome his president obama gave himself one final reason to look forward to a hawaiian christmas. he met the white house press corps for a year-end n

it does exist in a real world but there is still much to be done at home to expand the economy i. discuss this and more i'm joined by my guest chris weaver he is the senior partner with macro advisory and we also have been heiress to use the editor in chief of business new europe all right ben if i go to you i think you were on the first program of this year if not the second one in a nutshell in a few words how is the russian economy ending this year or this year i think it's been rushes. in so much is it's been the worst year was in a crisis year for the last decade and a half and so we're puttering out of the year slowly with very disappointing results across the board and everyone is looking forward to next year because can't be worse than this one always can be worse interest in a few and a few words a few sentences how would you describe russia's economy as we're ending the year i would actually agree with ben there compared to where we were the start of the year looking for three three and a half percent growth or think of the optimistic end now we're no ending the year ac

economy was faltering. we needed an additional boost, we brought in the asset purchase program again. we put in specific objective which on the labour market, our sense was once the intermediate objective was obtained, the economy had grown and was moving forward, at that point we could wind down the secretary chew, supplementary to lend achieve the same amount of accommodation using interest rates and forward guidance and so i do want to reiterate that this is not intended to be a tightening. we don't think there is an inflation problem or anything like that. on the one hand asset purchases are going to be continuing and rebuilding our balance sheet. total assets we require are probably more than expected in september of 2012 or june of 2013. we have a substantial balance sheet which we will continue to hold and also clarified our guidance we will keep rates low well past unemployment of 6%. we are trying to get high level accommodation. it is true that the purchases are supplementary, the interest rate policy but the action today is intended to keep the level of accommodation more

>>. welcome to "lunch money" i am adam johnson. the fed chose confidence in the economy and starts to taper it economic stimulus. in tech, facebook and mark zuckerberg land to sell shares worth $4 billion. the crash test results are out. we will tell you who is the safest and who is not. and we had to the farm to find out what makes wide you -- wagyu beef different than the others. seenast few weeks we have signs of the u.s. economy on the mend. growth has picked up. unemployment has dropped. the treasury department exited its stake from general motors. congress passed a budget, and n y n the federal reserve are confident enough to taper the pace of their bond buying program. >> the committee decided to reduce the pace at which it is reducing the size of the federal reserve balance sheet. bernanke, when should we expect to see additional tapering? reduction reflects the belief that progress towards economic objectives will be sustained. if the incoming data supports the outlook for inflation, we will likely reduce the security purchases in further measured steps in future meetings.

decides that from his perspective the economy is not right there. charlie evans apparently willing to go along with it. esther george misses her chance to be only the fourth fed official to be dissenting. the big thing that catches your eye is, two things, one is the change in guidance. that they will keep the fed funds rate well past six percent. they have been saying that, and now they have formalized it. >> i think they had to do something with guidance. i think this might just be enough to placate markets, where -- front andds yields are back to where they were in june. we have sold off six basis points from -- where we are basically right now, earlier today when the option occurred. >> equities do better. 11y were negative and now up on the dow. that is a nice move. begin is a proxy for the global market. a weaker yen, a fractionally stronger dollar. michael, i interested. please. >> we don't have time to talk about this at length, but it is a very illiquid time of year in the bond market. do you think that figured in? was fully staffed today. one of the things about the bond it

the economy. there have been solid job numbers and major revision for the gd approximate, and a strong end to the week on wall street. it has a bunch of experts predictioning that a steadily improving economy is on the horizon for the coming year. what would that mean politically? health care and obstruction are the clubs are choice for the two parties. they are beating each other up over both issues and both could be problems as well. the economy is the wild card right now. right now things are looking up. on friday we got word that they push the average jobs growth to 189,000 a month. not great, but not horrible. it's an improvement over 2012. unemployment is down to 7% down 18/10 of a point from this time last year and the lowest since november of 2008. we saw a big revision that was up 3.6% in the third quarter. that's a half percentage point better than 2012. there is a caveat. a good portion came from businesses building up inventory. they may end up stocking up so much, they don't need to buy as much. there other green chutes here. the first double-digit year over year in

, stocks zoomed to record highs on news the fed thinks the economy is healthy enough to scale back the stimulus, but not strong enough to raise interest rates, perhaps for years. >>> budget deal, congress gives final approval to a government spending plan without any drama. will the agreement help with the recovery. >>> rate watch, could today's decision cause mortgage rates to spike making it more expensetive to buy a house and throwing a wrench in the economic turn around? that and more for "nightly business report" for wednesday, december 18th. >>> good evening everyone. all those months of taper talk are done. the federal reserve said today it will begin winding down the landmark stimulus program, a process wall street dubbed the taper. starting in january, the central bank will cut back on the huge bond purchases by $10 billion a month. why now? speaking at his last press conference as fed chairman, ben bernanke said the economy is healthier and the job market is making progress. this marks the beginning of the end of the historic money program that lunched in 2008 to stabilize th

off the easing early this year. monetary policy t it's impact on you and the economy coming to life. that's inside story. ♪ >> hello, i'm ray suarez. 2013 will be remembered as a year of partisan dysfunction in wash despite the threat of default and government shutdown the economy has been showing signs of life. unemployment dropped to its lowest level since president obama took office and since the great recession the federal reserve has been using tools in its toolbox to keep the economy on track. interest rates are still at rock bottom, and the fed kept up its bond by bu buying program. that policy has been the signature of outgoing federal chairman ben bernanke. but the fed will begin to ease off the easing under new chair janet yellen. under this new edition, we'll examine the green shoots of a recovering economy. >> reporter: the federal reserve wrapped up two days of policy meetings and concluded the u.s. economy is strong enough to start tapering the banks investment program known as quantitative easing. >> we'll be purchasing $75 billion a month reducing purchasing of tre

>>> it's been a rockin' year for stocks and signs the economy is starting to pick up, but are they both about to get socked when the ball drops and the new obamacare taxes and fees kick in? hi, everyone. this is "bulls and bears." get let's get right to it. we have gary b. smith, tracy burns, jonas ferras and david mercer. welcome to everybody. tracy, new taxes and fees from the health care law hitting in the new year. will they hit the market and the economy? >> they most certainly will. what a culture shock this is going to be. first, when you sit down to do your 2013 tax return come april, you are going to realize there were 13 new taxes in 2013 alone. we are talking about increasing dividends, medicare, payroll taxes, you name it, you were clobbered in 2013. you will sit down and do that, mentally you are already psyched out about what's going to happen about 2014. plus you have the obamacare fees that are going to hit coming in 2014. everyone is going to just be thinking about these things all day, all along, that's going to hurt consumer spending, it's certainly going to make

flourishing." the book is about the modern economies as i call them that arose in a few nations in the 19th century. britain and america are at 1820, later germany and france. economies the remained well functioning through the middle of the 20th century. they were a marvel of the world. i wonder was not so much a high wages and wealth. there was rampant prosperity, material and non-material. mark twain spoke of the drive and push and rush and struggle of the regime, caring, booming 19th century. one kind of prosperity was classical. modern economies were achieving growth of economic knowledge, that's growth of productivity. wage rates and working conditions were constantly improving throughout the economy. a worker could just ride the rising tide, and non-modern economies through trade and technological transfers could tap into that prosperity in order to catch up. another kind of prosperity was modern, and of key importance. there were gains in one's earning power from one's new insights and skills, and gains in one satisfaction from the experiences in one's work. these gains, materi

was in some of the biggest areas, the market, the economy, washington, health care and real estate. >> and in all the topics that tyler mentioned and elsewhere, change both dramatic and subtle is one of the key underlying themes of 2013. and boy, a lot's changed in the past 12 months. >> reporter: few wall street pros could have predicted the stock market would soar 25%, hitting one record after another. the dow above 16,000. the s&p perched at 1,800. numbers hardly imaginable a year ago. investors snapped up stocks because where else could they get big returns given super low interest rates? the federal reserve and this man get some of the credit. fed chief ben bernanke stood firm on the central bank's policy of stimulus measures to pump up the economy. which led to a year-long guessing game, when will the fed taper that massive stimulus program? well, now we know. the taper talk wasn't the only guessing game. there was intense speculation about who would replace bernanke when he steps down in january. janet yellen, the first woman ever nominated as fed chair. she'll preside over

certainly boycotts were instituted there's a very valid argument against boycotts in terms of the economy of the country. boycotts are to hurt the poorest surely so should mrs thatcher was very adamant i mean she would have given anyone a handbag thing to suggest that you transfer a country as industrialized and developed a self africa to a bunch of ragtag communists some of that was the a.n.c. in the one nine hundred fifty s. the platform was nationalization and communism ok all right you're going to let me have it here that i let me jump in here but that didn't happen and that's a very interesting point roger if i go back to you i mean how do you think mandela saw the world in one nine hundred ninety after twenty seven years in prison because it was absolutely correct when he went to prison there was a certain world view when he came out what he wanted to do was virtually impossible that's why i'm going back he was a perfect front man for this new agenda in south africa to end apartheid importantly go ahead roger where my views largely align with jeremy's although alone and make some very

the economy has started to grow. osborne says that his policies are the reason why. i am pleased to have him back at this table. looking at how fast the economy in britain is growing, more than any other g-7 country, why is that true? take as much credit as you want to. >> i'm not going to take credit myself. there was a lot of hard work by the british people. >> what are the ideas in play? >> you must live within your means as they country. we have a solid economic plan that has been reducing the deficit. you also have to repay your banking system. so that i can lend and support the economy. we have made difficult changes to our banking system, but that has been worked through. finally, you must have an environment where people feel comfortable investing. britain is making itself super competitive in the world. the big pool of investment, which was the problem in the eurozone, is logistics. those things are coming together. >> so when you come here, you meet people you know, like mayor bloomberg? you also talk to leaders on wall street. what questions are they asking? what is their

interest rates already low. and they were expected to stay low for a good long time. the economy, though, was faltering. we needed an additional boost. and so we brought in the asset purchase program again. we put in a specific objective, which is substantial improvement in the outlook for the labor market. our sense was, was once that intermediate objective was obtained, was that the economy had grown and was moving forward, that at that point we could begin to wind down the secondary tool, the supplementary tool and achieve essentially the same amount of accommodation using interest rates and forward guidance. and so i do want to reiterate that this is not intended to be a tightening. we don't think there's an inflation problem or anything like that. on the one hand, asset purchases are still going to be continuing. we'll still be building our balance sheet. the total amount of assets we acquire are probably more -- certainly monday than was expected in september 2012 or june 2013, so we'll have a very substantial balance sheet, which we'll continue to hold. and now we've clarified our

small business. i think that's the problem. the economy is starting to show some signs of a decent pickup now. five years after the financial crisis, finally after all that stimulus has been pumped into the system, endless amounts of money printing, finally we are getting some decent job numbers, getting some decent growth. however, the elephant in the room as you said is obamacare. here's the thing. big businesses, ge, the big companies, they have scale. they can spread the costs over a lot of people across the globe. they are multinational business -- international businesses, in many countries. it's the small businesses that get screwed. here's the thing. when you look at the drivers of the economy, employment picks up coming out of a recession or economic slowdown or weak economy, it's usually small businesses. they are actually shooting the one business, hurting the one part of the economy that president obama needs to sustain job growth going into the 2016 midterms. >> adam, the pickup on that, small businesses could be facing a $2,000 fine per employee. that adds up very qui

reflect the committee's assessment that the economy is continuing to make progress and that it also is much farther to travel before conditions can be judged normal. notably, despite significant fiscal headwinds the economy has been expanding at a moderate pace and we expect that growth will pick up a somewhat in coming quarters, held by highly a comedy to monitor policy and waning fiscal drag. the job market is continue to improve with the on the planet right having declined further. at the same time, the recovery clearly is far from complete with unemployment still elevated and with both underemployment and long-term unemployment still major concerns. we've also seen ongoing declines in labor force participation which likely reflect not only longer-term influence such as the agent of the population but also disgorgement on the part of potential workers. inflation has been running below the committees longer-run objective of 2%. the committee recognizes that inflation persistently below its objective could pose risks to economic performance and is monitoring inflation developments car

economy back on track. that byt do complicating the problem and delaying a deal. there are still those the call the united states the great satan. there are still concerns among u.s. partners in the region. they think the u.s. is going to cut a deal that says, in exchange for iran's nuclear concessions, the united states is going to give iran a free hand in the middle east. to happen, butng it is a concern. the iranian leadership wants to confine this to nuclear. if there is compliance and people are comfortable with it, it can open doors to do more things. starting off with areas of obvious common interest, broadening from there. >> i think that we have both committed to do the nuclear deals as rapidly as we can. sequence before we try to solidify other deals. i think there is no question in doors, that in some core in some discussions, other issues come up. it is more important to have the iranians know what we think about these questions then to have them presume the worst in terms of how we go ahead. it is important to talk to the saudis about these questions. with respect to syria

reek yahoo! whitfieric. see you then. "your money" right now. >>> 2013 is the year the economy recovered, for some. i'm christine romans. this is "your money." the economy on track to create 2.3 million new jobs this year, the best since 2005. home prices are rising, the stock market is hitting new highs, industrial output is back to prerecession levels, and the government has sold its last shares of general motors. there are even signs of bipartisanship in washington. so, why aren't americans feeling optimistic? carly fiorina is the former ceo of hewlett-packard and today chairs good 360, a charitable organization. she ran for senate and advised john mccain during his 2008 presidential run. danny minton-betos is with "the economist." nice to see both of you. let me ask you first, why aren't more americans feeling this recovery? >> well, i think there are a couple things going on. first, income inequality is getting worse, not better. that's related to the second item, which is that there are still millions and millions of americans that are underemployed, that is working part-time when

right you right here on "mad money." i'm jim kramer and i will see you tomorrow! >>> the economy is slowly recovering, the fed says things are good enough to start tapering. the stock market on a five-year rally. and, yet, president obama is at the low point of his presidency. his poll numbers have never been worse. especially his handling of the economy. why is this? one-word answer. obamacare. speaking of obamacare, look at these creepy images of a 20-something guy in onesie pa pajamas. the image team obama sent out this week to encourage young people to talk about and sign up for obamacare. is it going to work? sounds like a question for the kudlow youth summit comprised of three young millennials. >>> do we really know what the heck the fed really did yesterday? i ask this because gold dropped 40 bucks today and the question is whether bernanke was really that dovish or is this the beginning of a long-term exit strategy tightening policy? >>> oh, and how about some real monetary rules for a change? all these stories and much more coming up on "the kudlow report." beginning right

years. they are studying the evolution of specialization as they uncover details of ancient economies around the world. in the maya city of copan, a jeweler fashioned rare shell and jade for his powerful lord. in mexico, living artisans echo the economy of a vanished civilization. and in teotihuacan, evidence of mass production has now been unearthed. tiny faces of clay reflect the men and women who made them a thousand years ago. on the other side of the world, in the ancient roman city of ostia, huge merchant ships were part of an economy much like our own. and today, the tanners of morocco still practice their ancient craft, living proof that economies have evolved out of the past. everyone who has ever lived has been part of an economic system. iel bote grande...mil pesos! economic systems are simply the ways people produce, distribute and consume things -- everything and anything, from tortillas to stocks and bonds. for 10,000, 10,000 an eighth. today, as in the past, economic systems lie at the heart of how a society is organized. archaeologists search for these systems because

country and beyond. a step in the right direction for the u.s. economy, a new report reveals the job picture is rienthing and unmroement is falling. a severe wind and ice storm is moving east. hundreds of thousands are without power, and travel problems are building. ♪ >>> in south africa and around the world people are k looking at the legacy of nelson mandela. meanwhile funeral plans are ama and the first lady will be there to pay their respects. here are some of the details of what is to come. on tuesday decemb10th an official public memorial will be held in johannesberg. his body will lay in state for three days. the memorial's culminate with a state funeral. finally, mandela will be buried on sunday december 15th. >> reporter: tributes are being paid and prayers made for the icon. and now the world can officially say good-bye to nelsonela on december 10th which will be the official memorial service. and then for the following three days his remains will lay in state. but before then south africans will have a chance to remember the man who change lives forever. >> we have decl

were expected to stay low for a good long time. the economy, though, was faltering. we needed an additional boost. we needed an additional boost. we brought in the asset purchase from graham. we put a specific objective, a substantial improvement in the outlook for the labor market. our sense was once said intermediate objective was attained, once the economy had grown and was moving forward, at that point we could wind down the secondary tool, the supplementary tool, and achieve, essentially, the same amount of accommodation using interest- rate and forward guidance. i do want to reiterate that this is not intended to be a tightening. we do not think this is an inflation problem or anything like that. on the one hand, asset purchases will continue. we will be building our asset sheet. the total amount of assets are certainly more than was expected in september, 2012, or june, 2013. we will have a substantial balance sheet that will continue to hold. now we have also clarified guidance that we will keep rates low well past unemployment of 6.5%. we are trying to get a high level o

the economy is making progress but that it has much farther to travel before conditions can be judged normal. the economy has been expanding at a moderate pace. we expect that growth will pick up in coming quarters, helped by accommodative monetary policy and waning fiscal drag. the recovery clearly is far from complete, with unemployment still elevated and with underemployment and long-term unemployment still major concerns. we have also seen ongoing declines in labor force participation, aging of the population, but also discouragement on the part of potential workers. inflation has been running below the objective of 2%. inflation below its objective could pose a risk to economic performance. this outlook is probably consistent with individual economic projections submitted in conjunction with this meeting. as always, each participant's projections are conditional on their own view of appropriate monetary policy. rejections for increases in gross domestic product of a central tendency of 2.2% to 2.3%. rising to 3.8% next year -- with similar growth estimates for 2015 and 201

looks like good news for the economy is finally good news for wall street. stocks rose sharply because of a super strong jobs report. american businesses added 2,300 jobs in november, much more than expected, and the nation's unemployment rate fell to 7% even, that's a five-year low. the rally was broad base with all ten sectors of the s&p 500 index on the plus side. today's gains come after five straight losing sessions on fears that a stronger economy would be the cat list for the federal reserve to cut back on the stimulus plan. now it looks like investors and traders believe a growing economy is good news. so here is a look at today's closing numbers. the dow shot up almost 200 points back above the 16,000 level. the nasdaq jumped about 30 and s&p rose 20 points returning to the 1800 mark again. >>> so where are all those jobs, and what do the gains mean for the economy? hampton pearson takes a look. >> just in time for the holidays, tanger outlets opened this 100 million dollar complex with 80 high-end retailers outside washington d.c. in light of today's surprisingly strong jobs

conference by declaring victory on the economy, but he also said this about the rollout of obamacare. >> since i'm in charge, obviously we screwed it up. >> all right. he acknowledged that. he still insisted obamacare is going to be a net positive. really? he also said he doesn't pay attention to the polls. yet another new survey out today puts him at another all-time low. while the president boasted about obamacare, the failures and attempted fixes keep piling up. the latest change, an exemptoin for people who had their policies canceled. the whole individual mandate may be fall apart. meanwhile, the healthcare.gov website was down for at three hours today, just three days before the deadline to sign up for coverage on january 1st. >>> and getting back to the economy, the stock market still bullish on ben bernanke's taper, and a nice revision for the q-3 gdp to 4.1%. a lot of economists are parking up q-4 to 3%. so are soaring stocks predicting a big 2014? all those stories and much more coming up on "the kudlow report" beginning right now. >>> good evening, everyone. i'm

central bank will start reducing the bond-buying program next month. he said the economy has strengthened enough to make it possible. we'll hear some of what bernanke said, and dig into what it means, right after the news summary. the fed's finding of economic progress sent wall street soaring. the dow jones industrial average gained 292 points to close near 16,168-- a new record. the nasdaq rose 46 points to close at 4,070. the senate gave final approval today to a two-year budget agreement, 64 to 36. it erases $63 billion in automatic, spending cuts, and replaces them with targeted cuts and additional revenues. nine republicans joined 55 democrats and independents in voting "aye", after supporters and opponents jousted over the measure. >> i think one of the problems we have around here often is that we don't know how to declare victory. we don't celebrate our successes. i'm not prepared to declare victory in the fight for fiscal responsibility, but i am prepared to declare progress. >> we have before us a bill today that is a purported compromise. but i want to describe wh

director of the congressional budget office, is the best congress can do good enough for the economy? >>> and is consensus driven speaker of the house, busts loose. john bainer and the tea party, the president and the promise and the governor a and the bridge. our political panel and their discussion. this is state of the union. >>> good morning from washington, i'm candy crowley. a political tug of war brewing in the ukraine, a country sand wished between russia and europe. ukrainian -- european union. it's a move that would align the former soviet bloc nation with the west. instead the president is turning his financially strapped country toward russia which has offered economic assistance. nick payton walsh is in kiev as demonstrators gather for a has rally today, nick? >> reporter: this country sflit in two, east russians speak near the russia border there and in the west, speaking ukrainians wanted to turn their eye toward the european union. didn't sign that deal with the european union that would push them in a westerly direction. more people came out on the street. that brought even m

diminishing and the risks are more newly balanced for the economy. >> steve, sorry to jump in, because i know one third of wall street strategists expected a taper. that's it. are you surprised, the $10 billion, does seem to be impacting the market a little bit. the dow turned slightly down but most people, the reaction we got here in the newsroom was one of surprise. are you? >> no. it's exactly what i expected. the fed did -- laid out a three-part test for figuring out if they should taper. the three parts were met. just because all of wall street wasn't on board 20% of our respondents were on board, brian, 55% thought it would happen by next month. i don't think it's a big surprise. what is a surprise to me and just a little bit, is how dovish they were on rates. i didn't think the fed had to go this far in being quite so dovish on rates. apparently they wanted a little insurance because as you know, what are they're really concerned about is the markets believe in that longer term rate guidance so they're very, very dovish on the back end in order to provide a taipg on the front end which

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it down next year if the economy stays on course. that is next on c-span2. [inaudible conversations] >> good afternoon. the federal open market committee concluded a two-hour meeting earlier today. as you know from our statement the committee decided starting next month to modestly reduce the pace at which it increasing the size of the federal reserve's balance sheet. the committee also clarified its guidance on interest rates emphasizing the current mayors are arranged for the federal lands rate target likely will mean appropriate well past the time the unemployment rate declines below 6.5% especially if projected inflation continues to run below the committee's 2% goal. today's policy actions reflect the committee's assessment that the economy is continuing to make progress but that it also has farther to travel before conditions can be judged normal. notably despite significant fiscal headwinds the economy has been expanding at a moderate pace and the expected growth and pick up help for highly accommodative monetary policy and waning fiscal drag. the job market has continued to

it is a little bit of both. growth has been good, the economy is starting to show signs of life. i think there are solid foundations for what has gone on in the stock market but maybe a little bit of froth in there because of the fed. adam: here's what i don't understand as a novice in all of this, even if we begin to taper, if we start to pull back it doesn't have that much of an effect on the 10-year treasury, and at the end of the day the fed reserve keeps saying we are not raising the interest rate, most people don't expect that to happen for another year, year and a half. >> you are absolutely right. the analogy is the difference between putting your foot on the brake versus putting your foot gently off the accelerator. that is what we're looking at. adam: do you agree with people who say we will never get rid of qe? it is here forever more? >> i think we will get rid of it, but the process will be a gradual one. adam: to get rid of the bond purchases, does it accomplish with the fed had thought it would accomplish, or has it not been a success? >> look at the difference betwe

believe that we're gonna see that data change very much. the u.s. economy is still in trouble. they're still gonna accomodate loose money policies still on the table. the stocks are going to march higher. whether you think it's manipulated or not, that's just the world we live in today. > >how have you been handling the hedge funds? they've been taking these large shots at companies, making a lot of news, a lot of noise. but what have you been doing as a trader with that information? > >unfortunately as a trader you have to have better timing and keep an eye on when they come and when they go. they are cyclical and they all act at once. but right now we have to have better timing and we can't use our big positions all at once. we have to slowly piece ourselves into the market because we can't afford to let it all go at once because these hedge funds are so big that that could really cost us some money. > >the ipo market has been hot this year. it's up about 43% compared to last year. did you buy any ipo's? are you buying any ipo's? > >we're gonna say this---yes we did. we're gonna go w

christiane amanpour and candy crowley. all at the same table. >>> the economy is climbing back. i'm christine romans. the economy is growing at the fastest pace since the beginning of 2012. driving growth? businesses. do they expect demand from consumers to surge and what happens if consumers are not buying? another critical sector to watch, housing. sales of new homes up 25% in october. the sharpest gain in 35 years. positive jobs numbers show the economy is healing. 203,000 jobs added in november. the u.s. on track now to create the most jobs since 2005. the jobless rate lowest in five years. stock market may have taken a breather, but it is a banner year for stocks. 25% of americans hold three quarters of all stocks. many americans are more concerned where the next meal is coming from than the 401(k). fast food workers striking against poverty wages. the economy, jobs, minimum wage. that is the president's agenda for the next three years. alex is the business director and chairman of the economic advisers. also with me is a former adviser to presidential candidate mitt romney. au

economy and we're ending the year with actually agree with that compared to where we were the start of the year looking for three three and a half percent growth to think of the optimistic and now we're no ending the year according to the world bank's forecast maybe about one point three percent very disappointing compared to what had been expected and that is come as a result of a big drop in investment in which a lower level of consumption than we've seen in previous years ok gentlemen i don't know if you agree with a lot of me or vladimir putin agrees with you but let's listen what he had to say about the state of russia's economy. that and of course we are feeling the affects of the global economic crisis but let's be frank the main reasons for the slowdown in our economy are internal rather than external in nature in terms of the size of its g.d.p. rusher is doing well and counts among the world's five biggest economies but in key indicators such as labor productivity there's a two to three fold gap between us and the developed economies we must work hard to close this gap. and