>> remains about 6.5%. inflation around 1 and 2 years ahead. no more than half a percentage point.

the committee is prepared to increase or reduce the pace of the purchases to maintain appropriate policy accommodations as the outlook for the labor market or economy changes. suggested that it has been expanding at a pace. labor market conditions have shown improvement on balance. but fiscal policy is restraining economic growth. inflation has been running somewhat low to the committee's longer run objective.

the unemployment rate will gradually decline. the committee judge is consistent with its dual mandate. remains concerned. continues high levels of accommodation accommodation. >> the other thing is remember i said maybe they would beg

harder. they are saying fiscal policy is restraining economic growth in the prior statement they said it was somewhat more restrictive so they raised their language on the economy. >> how big is that? they said they could reduce. and they also said increase. that r-word is now out there. >> they put increase first. the i word is first and that's what caught my ear as well. as it did steves. they have been speaking in press conference, the talk in terms of the possibility one way or the other. but obviously as the economy is slowing down and importantly as inflation is only around 1% in terms of their objective. they have got a long way to go. so increase? i think there are problems with that. there is no doubt that the stoimt opens the possibility. >> cancel out the r word,

reduce? >> i suppose it does. i mean, it's possible that you get some further rally in the treasury market or the possibilities that the fed does more purchases. if you like your policy overeasy, that's what you have got. i think the economy -- it's such an aggressive policy. and besides it's not actually helping the economy. >> let's get into that a little bit more. >> here is what i did. i went through and looked at the purchases. a little over $200 billion this year. i dug into all the surveys.

based on the amount of money that we have spent this year and last 12 months divided by the jobs added, the fed is spending 500,000 this year and over the last year $536,000 per job added.

>> most of the rest. >> how am i supposed to control if you're going to agree with him on the harebrain ideas. >> the enormity of the fed operation and the i think purchase of x is the better way. you are getting the bond in return. when you look at certain things in the fed that are happening in the economy.

>> sit not like fiscal stimulus. >> he even referred to a money

financed helicopter drop in the money as a tax cut being a drop of money in that speech which helped milton beginning. he was the one who originally said the helicopter drop of money. he has been begging for fiscal stimulus or to do no more harm.

>> they can raise the fed funds rating. >> it distorts the overall economy. >> at what point do they say we can't do anything more here? or are they too scare d. >> and basically the fed, although it's informal, is targeting a 5% nom gnat gdp

roll. we're not getting what basically monetary policy, not as promised but as tried to deliver.

>> i think it's a demand problem, a top line problem. we have seen that in the earning earnings. >> if i'm right and they don't raise rates. >> we're going to do feats of strength. right now we're going to talk about growth.

>> 0.8 is the subtraction from the government. if i told you we grew 3.233 in the first quarter, would you be sitting here complaining? >> i'm just saying. >> hold on. you're going to ask me a question, i'm going to answer. >> i'm asking diane why he is at 1.1 now. >> 15 and 11, not that much different. we're starting to see fiscal drag. it's do that or do nothing.

>> a fiscal drag going on right now. later on this year this is going to ease up. the fed reserve needs to be a little forward-looking here. i agree that the problem is demand but demand is fed by confidence confidence. >> you bring up an important issue. as you talk it down too much, they worry about a self fulfilling prophesy and they do have their forecast.

so much information they have given us. it is like washing it. it has been -- should be a gift. >> what's the view over the course of the year? >> well, they continue on with a 25 basis point policy. >> that's what the fed has failed to realize and perhaps what you're failing to realize, too.

>> we're going to bring you back in just a second. >> stick around on deck. today is the last day to get in on quarterly dividend for big names. but which ones are worth your money, if any of them. you see, we're doing some changing of our own. ah, we can talk about it later. we're putting the wonder back into air travel, one innovation at a time. the new american is arriving.

>> let's get more market reaction. >> that's right at 2:00. we have come off of those highs. i was a little surprised. kind of covers them on that. they say the committee is prepared to increase or decrease or reduce pace of its purchases.

it's a reminder that the fed is on realtime watch. >> they thought it was dovish enough. indeed, down here, the big phrase was they as you can see, we cut the losses in half. now we're down lower. we have got a three basis point

ran range. >> the biggest issue on the floor is misallegation. >> say that it is an unintended consequence. once velocity picks up, approximate buckle your seat belts. >> we have breaking news now. further developments of the aftermath. >> more information on the three young men. they are charged with obstruction of justice.

decided to take the laptop as well because he did not want them to think that he was stealing or behaving suspiciously. the three are expected to . >> okay. what exactly do i do?

you are recommending getting further and further off risk from 2013 and beyond. what are you doing? >> that's what we're doing. let's, you know, put it on as a table that this comes in a number of forms. it comes in a form of longer maturity maturities it comes in the form . >> what does that mean specifically? for corporate bonds. buy that apple issue.

what does that mean in terms of high yield? it means buy high yield bonds. less than a ten year maturity. hys is a symbol that does just that. i would suggest reduced risk as you move along. we're not looking at armageddon but an increasingly risky environment. >> we often have lively debates. on one side it's the corporate fundamentals. and the other side it's a fed led rally. which can't be love. do you think is because of the fed and the stimulus.

certainly prices have been elevated by check buying and by $85 billion a month. but the real economy and corporate profits have been increased as well because of the cost of interest. we would estimate .

>> that depends on euro land and how quickly they come out. >> i'm tired and grumpy. so i'm going to be negative here. >> worse case would be 0-1%.

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>> in the meantime, in terms of what the markets are up to, going into the fed decision, before:00 p.m. eastern, we saw the dough is down about 110 points. >> posting solid but not spectacular sales numbers today. but there is one area that is really picking up. >> the pace is just a smij

slower. compared to 15.3 last month. when you look at the auto sales. they are all over the place here. that's really where you see the split between the asians and domestic and yet the stocks for the asian automakers, they are out performing the domestics. >> and yet, there is a come back in truck sales. what's going on. >> absolutely. for the big three, this is welcome news. f for the last three years we have been waiting for the

contractors. in a lot of cases it's because they are looking for more future efficient models. >> nobody wants one. >> not for pick up trucks. maybe some day that might change. in terms of. >> people may be at home saying who are they? they are an electric car company that just filed for bankruptcy prodex.

r rsh. >> all four literally were down on their knees reflecting about the car. they loved it. it was the best car they have ever driven. shocked me a little. >> and is it too late for j.c. penney to apologize? street signs is back in 2. nt of. you know how to mix business... with business. and you...rent from national. because only national lets you choose any car in the aisle.

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>> with let's make it through. we are running out of time. >> deflation right there. ahead of this weekend's big event where becky will be with warn buffet.

remember, 85% of brookshire's revenues come from the us of a. this was only a $100,000 stock. one share. >> unbelievable. two teslas. a big winner. might be today's big winner. >> revenue is actually down by 13% and the stock is up 15%. one of these not as bad as we had feared kind of stories here. it all wasn't as bad as we thought it was. now we're like it's not as terrible. >> still down 34%. blooming brand. did you put that in for me?

>> i'm going to take the blooming onion. we have also got facebook set to release results after the break. down a little bit today but none the less, almost 5% higher over the past week. so the question is whether or not today's earnings will propel it higher or bring it to a zreeching heart.

>> these guys are gaining significant share. in 18 percent sequential jump. that will be the focus of the call and what investors are looking for. >> first of all, i don't think those numbers include mobile. they have already added everybody in the u.s. that they will add. 90% of the growth in the last few quarters have been coming from outside the u.s.

and the opportunities that they had through many of the add products whether facebook exchange or custom audiences. they have not monetized instagram yet. there are a lot of opportunities ahead of them. this is an investment year. because they see all of these opportunities in the coming years. >> i want to do back to what you said. you say the number that we have to focus on is mobile ad revenue? >> the primary reason for that is transition from desktop to mobile is a critical part of everyone's thesis. as far as a top and bottom line, i think we will hit those numbers. i think they hit them without hitting the mobile number. so that's why i think the focus on mobile, that will reflect their effective transition.

>> will it work? or will it make it worse? we will dig in and show you the ad coming up. i've always kept my eye on her... but with so much health care noise,

i didn't always watch out for myself. with unitedhealthcare, i get personalized information and rewards for addressing my health risks. but she's still going to give me a heart attack. that's health in numbers. unitedhealthcare. trust your instincts to make the call.

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>> welcome to the earnings squad. we dissect the stories that everyone is talking about and some you may have missed. let's start off with that score card. 69% beating estimates. we are waiting to hear from a number of companies that report in just a few hours time. among them, shares of boston beer down ahead of its earnings report. but the company behind sam adams. what can we look for?

seasons of this. s training around 38 times earnings. you will hear people talk about competition coming from all angles. also big names stepping in here. >> there is a premium in the stock. there might be some expectation specifically in the beer industry. >> there has been speculation on that. >> not one little miss. >> was it 10%? >> if you look at volumes, that was about 10% year-over-year growth.

>> already came out. so we sort of know what to expect from this. here is another reason why we will watch this report very carefully. we got word today that pick-up truck sales were very strong. a pick up truck indicator. going into the -- we want to hear what they are going to say about the spring specifically and whether or not things are -- >> based on everything we have seen.

>> they had the offering. but they also offer guidance. it was good but not as good as people expected. how could they not do well? >> that is earnings squad for today. if you want to join the conversation, tweet me. back tomorrow morning during squawk on the street with more updates and insights. street signs continues right after this. >> time now for today's return on retirement. they have kept matching 401(k) contributions over the past five years. and more than three quarters of companies surveyed have not shaken up their matching formula in the past months and don't plan to do so in the future. more good news in just a second.

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employees are tapping their 401ks for loans to cover medical and financial hardships. check out "closing bell" today beginning at 3:00 p.m. eastern for portfolio retirement advice for all ages and go to retirement.cnbc.com for more tips on how to prepare for your golden years. well, jcpenney out with a big mea culpa today, saying, we made mistakes in a new video posted on their youtube page. let's take a look. >> it's no secret. recently, jcpenney changed. some changes you liked and some you didn't. but what matters with mistakes is what we learn. we learned a very simple thing,

to listen to you, to hear what you need to make your life more beautiful. come back to jcpenney. we heard you. now, we'd love to see you. >> wow. will that work? joining us now, mary epner. we've got worldwide enterprise ceo, rick snyder. mary, i don't know, my first reaction is, it's awful on about a hundred different levels. what's your take? >> it's a good first start, in my opinion. >> why? most people don't even know why they're apologizing. >> remember, they lost 30% of their customer base last year, so they need to get those people back, and the best way to do it is through tv, because those people watch tv. they don't just go on the internet. it's a good way to start, just bad execution. >> and yet, jan, when i watch that particular ad, i don't see anybody who i would think is the typical jcpenney customer. >> i'm with you on that one and i don't like the mea culpa part

of it. the customer only comes in four times a year. it's not like when dominos buy their mea culpa in 2010, people buy pizza once a week. this is a lot different. this ad is not even funny. it's way too serious. i love the fact that mike is trying to do more promotional pricing, i like the fact that kim hanna has shored up the finances. i like the fact they've been out meeting with venders, convincing the venders, but i don't like this ad. >> and rick, rick, i know you like it a little bit more, but how about this ad. i think to combine jan's point of view, what about this, we screwed up, every customer that comes in and mentions this commercial will get 10% off for the next week, at least make it about sales. >> i think, to some degree, it is about sales, but i also like your idea better. i think americans have a tremendous capacity to forgive people for the, you know, heinous acts like everyday low pricing, if they say i'm sorry. so i think it's a good first step. my question is, who's going to

come back to take advantage of these? and i think the first customers to come back are those who we call cherry pickers, just to shop the discounts. and it's going to really hurt margins is and i think a lot of costs have to go back into this company to go back to the old discounting model. >> you know, mary, rick was saying, it's great they came out and said they're sorry, but most people watching that ad wouldn't even know, because it's certainly not very clear explaining why they're sorry. we follow the stock every day, so we know why they're sorry. does someone watching that ad know why they're sorry? >> no, but they know that something went wrong at jcpenney. that's what the average customer would say. so to their point, if they say i'm sorry and give a big apology in the form of cash or credit. we all know it goes a long way to say i'm sorry and give me something for it. so that can work. and they have a tremendous opportunity in the back half of the year. if they can get it worked out by then, it can be a tremendous win for them. i'm not writing this off.

i'm agreeing with what everyone is saying, but they had to start somewhere, so it's just a bad first start. >> no, no, no, this is just a bad ad. >> like, come back to see it. like your girlfriend breaks up with you and you're like, okay, come back, but she left you. she's not coming back. >> you need to say to your best customers, and you know who they are, you've got them in a mail file, you need to go to them and say, come back, here's a coupon, here's a discount, something to bring you back in the store. you have to say, it's a beautiful new store, it's got great new product, we've got these shops. visit us again after we've got these great home shops open. act like you've got something to see, don't act like you're ashamed to be there. you asked the girl to the dance and put her in the corner and pretend, i'm afraid my friends will see you here. this is not a good ad. >> rick, it's kind of interesting that this ad has come out, just really not so long after the fact that ron johnson, the former ceo, was fired. is this a slap in the face to

him? >> i'm not going to comment on that, but i think that everyone would agree that mistakes were made under his stewardship. >> okay. >> i'm going to comment on it, rick. >> go right ahead. >> you know what you didn't see at the end of that ad, the new logo. >> yeah, jan, so you comment on that question that i ask, whether or not assist slit's a the face to ron johnson, a rather pointed remark. >> i think it is a slap in the face and i don't think it was necessary and i don't think the customer knows he was around to slap. so i don't think that's a good ad for the customer. i understand the ad, you understand the ad. i'm a big fan of jcpenney right now, as you know. i think mike's doing the right things, i think the cfo is doing the right things, ken hanna is doing a great job. i don't think this is the ad that's going to bring the people back. they need to do something different. >> will this ad move the needle, either higher or lower, rick, in terms of the stock price? >> this particular ad, no, i

don't think it's going to move the needle. i think what's going to move the needle is how much they discount, but theo offset to tht is, what is going to be the hit to margins. this ad, by itself, i don't think is really going to move the needle. it's going to be, and i think jan would agree, in the execution of the old strategy. >> okay, we have to leave it there. mary, jan, rick, thank you very much for joining us. and if anyone is still interested, they can go and view that ad again on youtube. >> make up their own mind. >> yeah. well, they can take the heat. so italians, apparently, are getting out of the kitchen. it's a very cheesy sign of the times. and i'm supposed to say, "can't take the heat," because that made no sense otherwise. i'll clean up my act after this. he's agreed to give it up. that's today? [ male announcer ] we'll be with him all day as he goes back to taking tylenol. that was okay, but after lunch my knee started to hurt again, and now i gotta take more pills. ♪ yup another pill stop.

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[ static warbles ] [ beeping ] red or blue? ♪ the pizza capital of the world is in desperate need of pizza makers. they say they need to fill 6,000 pizza maker positions which is pretty crazy, right, brian, considering the country is dealing with the worst unemployment crisis in decades. surely, there'd be plenty of people who want a job. many of the pizza makers are immigrants, mostly from egypt and other countries. pizza, by the way, is a $9 billion per year industry. >> i'm get the impression after all of this discussion in austerity, that you can pretty much put any occupation and then say, is in crisis. blank doesn't have enough blank >> pizza makers -- >> whatever it is. >> -- is in crisis.

>> whatever it is. except for people on unemployment. spain, 26%, whatever it was. that's a feel-good story and a nice way to the end show, everybody. thanks for watching us. go get some pizza in italy. >> you've got a snooze. you've got to get a snooze. "closing bell" is coming up next. hi, everybody, welcome to the "closing bell." i'm bill griffeth. maria will be along in a few minutes here at the new york stock exchange, where stocks are poised to start this new month on a down note so far. the fed sent the market and the world a message today, first, that it is prepared to do more or less depending on the economy and how it's faring. also, it said that washington, d.c. and our elected officials are dropping the ball big-time with their fiscal policy. our steve liesman and many others will be here to break it down in just a few minutes here. we are also wondering whether clorox ceo donald knauss i