fed as the markets are right now moving to the downside. but let's get to hampton pearson with what's going on with the fed decision. i want to read you out what's going on. the nasdaq is down by 25 points and we've also been watching the yields higher. hampton, what's going on? >>. >> the fed ends qe. repeating the federal reserve is ending its policy of qe. reading from the statement. the open market committee judges there's been southbound stan chal improvement of the labor market since the current program. the committee continues to see underlying strength in the broader economy and context of price stability. according to the fomc the committee decided to conclude its asset purchase program this month. turning now to interest rate policy, no significant change here. the committee anticipates based

on its current assessment it's likely to be appropriate to maintain a zero to quarter percent target range for the fed funds rate for a considerable period of time even as the asset purchase program comes to an end. turning now to the assessment of the economy. since the last open market meeting in september, the fomc judges that the economic activity is expanding at a moderate pace. labor market conditions have improved somewhat with solid job gains and o lower unemployment rate. on balance, job rate in the labor market indicates and suggests that the underutilization of labor resources is gradually diminishing. household spending rising moderately. advancing the recovery of the housing market remains slow. overall as far as the balance of the economy and inflation, the committee sees the risk of the outlook for economic activity and the labor market as nearly balanced saying here although inflation in the near term will

likely be held down by lower energy prices and other factors, the committee judges that the likelihood of inflation running persistently below 2% has diminished somewhat since early this year. there was one descending vote, that from the governor who believes that in light of the continued sluggishness and recent slide in market measures, the current market run for the fed funds rate should continue at least until the one to two-year inflation outlook has returned to 2% and he believes that it also should continue the asset purchase program at its current level. this is hampton pearson reporting live from the federal reserve. >> hampton, thank you very much for that. the vote was 9-1. we have the end of qe as you predicted, steve. as far as the stock market is concerned, we're marginally lowinger than where we were going in. but there's a bit of a knee-jerk

reaction, isn't there, steve, and they need time to digest this. >> i did not hear. did you hear considerable time? >> still in. >> so there was a market upgrade. this is what i was focusing on when hampton was talking as soon as he said it. market upgrade to the jobs picture. significantly is gone. right, hampton? you still there, hampton? >> say again? >> significant is gone and it's been replaced by labor -- it's gradually diminishing and later on they're saying there's been substantial improvement in the labor market. there are two things upsetting each other and it's interesting how the market is going to realkt here. considering time tells you, be cool, be chill, however, the improvement in the labor market seems to consider they may be a little faster. i don't know how these things offset but right now it's interesting to say what happened. the two decenters, the hawks,

are now on board which makes you think maybe a little bit faster while the dove is now a decenter, so maybe a little tiltier overall. >> steve, steve, steve, steve. here's my issue with the fed real serve right now. it seems like they're saying we're not going to do it, oh, unless we do. they were harping on the jobs numbers for year. here you have the federal reserve with a very strong statement about the recovery health of the u.s. job market. they talk a little bit about energy prices. do you believe it cannot keep this dovish stance for much longer? they're basically becoming hawks with an exit sign over here to the left. >> i think becoming hawks is a tad strong, brian. i would say there's a hawkish tilt to this statement when it comes to labor markets and what it means for the outlook for policy. they clearly upgraded the labor market. they got rid of a key policy line that told the markets the fed's interest rate hikes would be in check which is under

significant utilization of labor market resources but it did keep in place the guidance. >> i'm sorry. they naturally move hawkish by merely ending qe. it takes the balance of where they are in that direction in and of itself. >> and how much is the significance of considerable time undermined anyway. wasn't it stanley fischer who said two months or two years, right? that's hardly clear and narrow guidance, isn't it? >> think that's right but it tells the market there's a period at least of some length. i think it's under to be at least two meetings. i don't thing this sets you up for an imminent rise in interest rates but it leaves open the possibility especially if it comes to what happens with inflation. it's very insignificant. if you read the statement is that they expect this to be energy price led. if it's more than that, then i think the fed would stay its

hand. >> i know we have to go to guests. do they pull forward mid-2015, early 2015? >> i think what we -- you said mid-2015 to what? >> do they go from mid-2015 to early 2015 if the gdp print comes in big. >> brian, i have to say spring 2015 and i'm changing my mind is perhaps on the table here. thing tomorrow's kind of built in. we've been tracking a 3-2, 3-5 number but if you start to get the fourth quarter over 3 and get much progress coming down and if inflation stabilizes, all of those could point toward a faster fed. >> we're going to bring in a few voice here but i want to get you quickly caught up. the dow is now down by 75 points, the nasdaq down by 38. the stock markets have moved marginally lower. the yield has moved up. it was already rising ahead of

the decision. let's bring in three more voices to the conversation. we have david kelly with jpmorgan. gentlemen, good to have you with us. ross, what's your reaction to the decision and statement today? >> mostly as expected. the part i find the most interesting and the part that was a bit more hawkish were the comments on inflation. i think a lot of people were looking to the fed to use inflation as an excuse to take their time might be a bit disappointing because it seems what the fed is saying is we're looking past this period of weakness. question think it's mostly about energy prices and we think it's on target with the 2% level. >> so what's going to be the reaction? your clients are going to call and say, okay, qe is over, now what? what are we going to do? >> i think it's over.

i think part of the reaction we're seeing is mostly about the fact that perhaps those more dove i dovish. you've seen a rally in the last couple of months. rates stay very low. if it backs up, the rally we've seen in some of the defensive rates, that gets called into question. >> you may want to take a look at the eurorig right here. the european central bank is about to become more dovish. there's strong sentiment that europe follows the fed in terms of qe and so the divergence of forecast and outlooks here for both inflation and growth, i think, if you can look what happens will be a very interesting move here. >> bob dahl, as you look at the market reaction, i can't get over the folks who have come on in the last 24 hours at least

and said the markets are ready, investors are ready for this to happen. yet the dow goes down, yield goes up. what gives? >> look. i think we've had quite a move in stocks off the bottom from a couple of weeks ago. that's part of how we have to reflect on this. it's clear if you talk to them they're having increasing trouble finding workers. wee going to get wage increases in that part of the world. second, i'm glad you brought up currency. as the fed heads toward eventual exit and the european bank continues to weaken. final comment, i think the fed is less important for tocks going forward. qe is done. the multi. game is largely done. it's more about earnings. >> what do you do about the labor comments? does it make you move up your timetab

timetable, raise the risk of a rise? >> i think they're ahead of the curve. i'm glad they moved there. i'd like to see the fed go sooner. that would mean the economy is stronger. earnings are going to be better. i think that's good for the stock market. rehn in the early part of speculating about the fed's first increase, stocks tend to do pretty well. i think that will repeat. >> janet yellen is certainly not in the business of trying to shock them. obviously this has been a well flagged move. we've had plenty of time to adjust for it. nonetheless, how do you think stocks and bonds are going to do without their so-called go-go juice? >> i think ultimately the stock markets will be fine here, but i do agree with all the other comments that this is somewhat more voikish. they basically call this labor market wrong. even add a moderate pace, this market is tightening up fast. i think the real key to whether we get a rate increase even as

early as march is what do wanls do from here. our search shows once it heads down from there, that's when you get wage gains. i think the federal reserve will move further toward that sigde. i don't think the bond market is prized for what they're going to do. >> i believe we could see some wage inflation soon. that would be a very good thing if indeed it happens. but i want to go back to bob's point about the dollar. i'm flying blind so i'm going to trust my crack team to throw up a 20-year chart on the dollar index. basically for 20 years the dollar has weakened. weakened against major world currencies. i believe after looking at it myself after ten years we should see a dollar bull market, that the u.s. dollar could go into a period of unprecedented strength. i sound like larry kudlow. for the next ten years. david, do you agree with me, why

or why not? is the dollar going to be king again? >> i don't. i believe there will be pressure but the problem is the united states has got a very low long-term economic growth range. we're using about the economic slack. i think the u.s. economy is going to be growing at about a 2% pace two or three years from now and if it's only doing that, it's going to be faster overseas. >> let me jump in. if the other student gets a d-minus, i look good by comparison. i'm not going to say the u.s. economy is going to boom. you heard europe. china has got a lot of concerns about their nonperforming loans number. the dollar trade against other currencies. isn't europe going to purposely drive the euro down? >> i think they've got more room for improvement. they've got room for improvement. we really don't. we're running out of capacity. that means that other countries

will have faster growth rates in a few years than we have. >> david, i want to focus on current labor and the comments in the statement here. one of the significant things underlying policy here has been janet yellen's believe in a lot of slack in the labor market. the idea there was a low participation record and these people could be drawn back into the labor force by high wages or attractive jobs. do you get a sense reading this statement that janet yellen has given up the ghost on whether or not there is a vast pool of labor slack out there? has she changed her mind and is that underpinning of dovish fed policy crumbled away? >> exactly. that's exactly what's going on. when you look at the decline in labor force, you've got demographic issues, young kids going to college. you've got an increase in kids'

criminal records. when you put it together. there isn't that many of male workers you want to hire. i think what the fed is seeing, you know what, maybe there isn't that much. maybe most of this is structural and if it is, we're behind the game here. thank's why the tone is changing. one thing to echo. the participation rate has been heading down since 2000. this is mostly a structural issue. it's not clear the fed can do much to change this. >> we have to leave it there, guys. but thank you very much for joining us with your thoughts on the fed decision. let's take a look at the market because it's been through tantrums and turns and twists with the qe. but do take a look at this. since it started in november of 2008. the s&p is up. bob pisani and rick santelli. bob, it looks like we moved ever so slowly. the currency market is quite a

big move. >> i want to introduce you. ian shep hardson from pantheon saying in short a spring '15 hike is on track. >> spring '15. >> that's three months earlier. >> i wanted to chime in with that. that's the first i got. >> keep it coming, thank you. bob? >> you'd certainly expect that from the commentary. this is quite bullish that. wasn't in the prior statement. labor resources is gradually diminishing? that is quite bullish. what the fed is doing is acknowledging what the stock market has already ak phenomenaled which is strong growth in the united states and somewhat a downgrade of global growth imf has said that a while ago. >> the fed did not -- i thought one thing that could happen today, the fed did not incorporate any of the global

weakness into the statement and it's very important that something gets into the statement because then it becomes a reaction function for policy, but that's not in the statement, bob. >> remember we talked about the minutes and global growth slowdown in the minutes. it created a lot of confusion on the part of them, even if it was policy discussion in the fed meeting. i'm not surprised it another not in there. i think it's wise. i don't quite know what to make, steve. maybe you can give us a comment on this. they considwere asking about it. dae min issued somewhat since early this year. is this a belief that the economy is going to be improving and that will gradually heed to a somewhat higher inflation because it's certainly not there in the statement. >> right. that's a repeat. it's a repeat from the prior statement. the new language is about energy in there, bob. basically a central bank always believes it will hit an inflation target. it's one of those things if it

doesn't, you should not be in the central banking business. it's diminished somewhat. it's not a policy matter right now. they're not reacting to inflationary concerns and they're kissing off what's going to happen to the cl pi because of internal and they're going to come down and say that's just a result of energy. we're not changing policy as a result. >> bob, if we could put up -- brian, just put it up on the dow. we passed 100 points on the dow. that may have been a reaction to the comment from the commentings about a spring 2015 rate hike. i'm not -- i'm surprised it hasn't happened earlier. find these very bullish comments on the u.s. economy. >> bob, i agree with you completely. that's why i asked the hawkish questions. my first read, my first screen is that it was hawkish. bob pisani, this is why i think it gets interesting. did you ever see "swingers" with

vince vaughn? he said my baby's all growns up? we're going to find out if this economy is all growns up because it's going to stand on it own. right, bob? we're going to find out if all the people that said stocks only rose because of the fed are right or if the economy and the stock market can stand up -- i feel like i should say it's all growns up. it's going to be interesting for the next few months. >> yeah. >> i think the evidence is the u.s. economy is rebounding nicely. when i talk to traders who have european clients, they're dying to get into this country. they're not just buying the stock market. they want to buy real estate, anything that's nailed down or not nailed down. we're the hottest economy in the world right now. >> rick santelli, the view of the prior panel was rates were more hawkish. rates were moving up. they continue to move up now. >> i like brian sullivan's askinger a movie. there should be movie called "the emperor doesn't need a

closet." this statement to me, i'm sorry, it's fascinating to listen to all this logic but do we need an economist to tell us what we think, what direction the economy is going, whether the economy is weak or strong when the rates of unemployment are so glaring. ze do zero interest rates and buyibu buying help a guy on the assembly guy get to college? i don't know. 5s win. 5s are up about six basis points which means there's current flattening, the exact opposite of one of the biggest one-second trades in history yesterday. 10s are only up two basis points. 30s are basically unchanged. dollar index improved marketly mostly because the euro currency

increased. in terms of the future trade going on in treasuries, my guess is that you're going to continue to see the same thing that we've seen all along in stocks. therefore the solid base of stocks built on the fed will keep rates most likely slightly upward bound, and this 155 level, if we can show a chart while i'm talking, that starts on august 1st. you clearly see it's at a significant level. >> rick santelli, great is relevant. >> john from wells fargo says he's sticking to the june 2015. i mean at the oepd testify day, we're going to argue over may versus july and when you get done raising rates, it doesn't matter. >> is there an ideal time to raise rates? >> there will never be an ideal time. will there always be a rough move.

we maybe will talk about it on the other side. does it matter in the short run? in the long run it doesn't matter. >> we'll find out if it's ""the wizard of oz"" or "apocalypse now." >> okay. the markets have had about 20 minutes now to respond to the fed news. we're going to keep on watching the markets for the entire market, guy. we're going to talk to the man who manages the world's biggest bond fund. street signs will be back right after this. don't go anywhere. (vo) you are a business pro. solver of the slice. teacher of the un-teachable. you lower handicaps... and raise hopes. and you...rent from national. because only national lets you choose any car in the aisle... and go.

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okay. let's take a look at what's going on in the treasury market here. it's currently yielding 2.84%. remember at the beginning of the year we were yielding 3% and earlier on the day, 2.7%. we were moving up ahead of it and continuing to move up after the decision to end qe. largely as expected but a very hawkish statement. let's get more big money reaction to today's fed move. joining us now, scott mather, lead manager of the world's biggest bond fund. the pimco total return fund. good to have you back on street sign. give us your reaction to what it means to investments that h hi, mandy, great to be here. thank you. yeah. no big surprises in terms of what the fed said today. i mean we must remember that goal number one today was just to pass the major milestone if you will of winding down quantitative easing after years and years of quantitative easing

after talking about tapering for the last year and a half and to do no damage. beyond that there's no surprise they kept in the statement words with recollect to the considerable time period. they had to acknowledge the obvious, which was that the labor market's been improving faster than they thought and clearly faster than it has been over the past few years, and they also had to acknowledge that near term headline inflation will be lower as a result of the significant drop in energy prices. but that doesn't significantly alter their view with respect to long-term underlying inflation trends. that's more determining by the state of the labor markets. no big surprises from our standpoint. >> do you think, scott, that it was more hawkish and what to you think it is now for rates as you saw it moving up. things are moving around a lot now. in fact, the stock market is starting to follow after news from the fed. >> it was disappointment. there was expectation that

people thought there would be maybe more of a dovish buyish, acknowledging a growth or underlying the inflation drop as a result of the energy prices but that didn't happen. at the same time we've been talking about the destination of rates being more important than ultimately whether the fed starts in the beginning of the summer or end of the summer and, you know, that will still be determining by the high frequency data but in our minds people should be paying attention to what is the destination of fed policy. in there we think it's much more likely the fed will neutralize rates and find a resting rate. we talk about the new neutral outlook meaning the fed funds become neutral around 2, 2.5%. the destination is much more important for investors, we think, ultimately than trying to decide if the fed is going to move in the second quarter or third quarter of next year. >> let me get this right.

you see the fed going to 2%. 2.5% is the endpoint of this cycle on the fed funds? >> not necessarily the end point. that's the mutual point. it's very unlike what we saw in the past two decades but it's much like what they saw in the 100, 200 year history. it's no surprise that a zero percent would be sort of a neutral level. the fed doesn't typically stop at neutral. sometimes if they undershoot, they may have to go to the other side. >> the only thing i want to make, when we talk about some of these things in a negative way, that the fed now sounds hawkish, it's because of a positive upgrade to the economic outlook. >> right. if you're going to take away the negative connotation, hawkish meaning good for the economy. >> the fed is no longer saying the fed is underutilized. say that. that's good news. >> tell that as the market comes to grips with the fact that this

is done, that the economy is, in fact, improving and as brian made the point earlier, we're going to find out if the stock market can stand it. >> joe kernen taught me ten years ago. there were weak hands and stronger hands and what's happening right now is we're moving from the weak hands who don't like -- who really are holding stocks because of fed policy to hands os exteten os sentence sibably stronger. >> this is a hawkish statement. they're leaving themselves the exit stage left. oh, the considerable period of time here. i want to ask you about the fed in general is my last question before i sprint out of here, which is this. you're about got a lot of smart people, pimco. federal reserve is smart peep. how much do you take what the fed says is gospel or use it as

another data point in your basket and come to your own conclusions? >> well, that's a good question. it has to be a data point. they're telling everyone they're going to pay a lot of attention to the heisigh frequency data. >> they've been wrong a lot. >> right. you have to focus really on the median term. we would say back to market where you want to focus on the fundamentals again. we have to move away from this environmental where one just assumes that the fed is very hypersensitive about financial market prices. it's natural to think as we move closer to the first fed rate hike that the fed will be less sensitive to financial market developments, to little wiggles in stock prices or bond prices. that's as it should be. the economy is much less sensitive as things have improved over the past few years. >> we're going to get more impact on the economy later on in the show, but in the meantime pimco's scott mather.

thanks for joining us once again on street signs. to your point, wapner, what we're starting to see here is the post feds and knee-jerk reaction, they're starting to come back. still in the red. slightly but not as down as we were, right? >> there's always a knee jerk reaction immediately following a statement. it takes more than a day for things to sort of settle in. >> that's right. but, brian, i understand you say you were going to have to run off. i quipped at the top of the show you wouldn't miss the stark fed decision for the world. it was sort of semijoking. maybe not a joke. it was history in the making, right? >> it was very hawkish. the market's going to have to learn. we're going to have to find out together. we'll find if the market can indeed stand on its own because the fed has pushed it out of the qe nest. obviously a very hawkish tone. not to sound like larry kudlow.

as themes seem to be going on i'll hop out and talk about the steve mcqueen movie. i've got to go see a race car. >> we'll see you back in the chair tomorrow. >> hopefully. if not, call h-e-l-p. >> how did the fed impact your money and your home? we've got close-to-home's for you coming up next.

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the fed's qe program has had a huge aspect on every part of the market. what's next for the housing market? die ana o diana olick, do you have a crystal ball? >> just for a little perspective, six years ago last month mortgage giants were taken under government conservati conservativership. now the fed stepped in, bought millions of dollars of mortgage-backed securities and

essentially kept the home loan doors open. take a look at the average rate on the 30-year fixed loan. it went over 6% to 3% cut in half. but look what happened in june of 2013. that's when the fed himmed at a pullout. hinted. didn't do it but said it was considering. that put mortgage rates solidly above 4%, approaching 5%. home sales and refinances both fell with refis cut in half. now today's rates are back around 4 and even dipped into 3s a few weeks ago concerning mid economic growth. but mostly among jumbo loan borrowers and id did nothing to juice home buyers. so lower rates may have helped many to refi and help some buyers over the past several years but the low rates also pushed investors looking desperately for yield to suck up distressed homes and push home prices far higher, far faster than expected and faster, of course, than income growth. so really, mandy, it's a

double-edged sword. >> diana, i have a question for you. people wanting to get into the market have been put off by the fact that home prices have been rising. now that they're starting to moderate and come down, rates are starting to go up and may continue to do that. i just wonder what the impact would be on the market. >> well, rates going up is not good for anything. the home prices are jumping. what we have to do is get more buyers in on the lower end in the mid level buyers. they're having trouble. it's not just the rate. it's getting credit. having that down payment to qualify for the loan. and with home prices higher and mortgage rates going higher, that makes it even harder for them. >> many more things than mortgage rates to consider when purchasing or refiing. thank you very much, diana olick. coming up next. did the feds get it right after all these years? >> larry kudlow is going to be

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okay. let's talk bonds, guy. the yield and the u.s. treasury. the ten-year is currently yielding 2.335% up this on the

board, the highest level of three weeks with the fed announcing an end to qe as we expected. but it has been a bit of a wild ride for bonds. where are we going now? let's talk with ari and ira. gentlemen, grade to have you with us on such a big day, but ira, let's start with you. what are you telling your clients in the wake of the fed today? >> so the fed was certainly more hawkish than people thought. i think it's a lot less dovish though. we do think that we're very close to a bond and a ten-year yield and we think that ten-year yields are poised to back up a little bit, but probably not as much as some people think because we still don't know how far the fed's going to go and ultimately if the federal reserve or the expectations is to hike it only 2, 2.5%, then

they have only so many basis points to sell off. and our forecast is 3%. >> so from a fundamental side you think only to the upside a little bit, but what are they telling us? are they suggesting a different tone? >> in the charts we kind of say the yields are going to remain range bound. we see 2.4 to 2.5%. what we're showing is sent meant. coming into it, very few bulls. that has risen through the years as the yields have come down. from a contrarian perspective we think october marks the lows, a meaningful low. here's the big but. we have u.s. trading higher than spain's rates versus a lot of these european bond markets with much weaker economies.

and the trade is still lower. there's a resistance that starts at 2.4. moving average at 2.5. so we would play very much like we did in late 2011 into 2012. we think this needs to base further, maybe for the next 12 months but there's one probably at 2%. >> got it. thank you very much. ari and ira. we can check out the online edition with our partners yahoo! finance. but plenty more like this. okay. qe is over but short-term interest rates are still near zero. we're going to get real actionable trading advice from one of our friends johnna jeerian. he's going to be here in a moment. never stops, tdd# 1-800-345-2550 even on the go. tdd# 1-800-345-2550 open a schwab account, and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 so if you get a trade idea, schwab can help you take it on.

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and it's made with ibm. a very quick look at the markets. the dow, down, nasdaq, s&p. one particular area of the market steve, that has not run tripped at all and is still down sharply is the euro/dollar.

>> it's lost a penny. they may rethink it again as the time goes by. the euro remains off. it was 127 going in. now like 126.4. >> things are going to remain low especially as qe or what they even doing over in europe is not going to be tapered any time soon and if they do a more full-blown qe among other things, that seems to be a winning trade. >> these are divergent tracks when it comes to monetary policy and it comes to it. >> john na jair jan joins us now. you said earlier you were hopeful this would happen, that the stock market would go up without the qe. >> i still believe that and i think the rates lower for longer is how it's going to play out, scott. but there were a lot of folks who took advantage of that pump volatility. it's nowhere near pumped up when

the s&p was up 1820. that's where we were with the vix. right now i think we're probably 15 and change, scott. so that's a little premium people were able to eek out of pretty much a known in the market. >> you feel like the stage is now set for a rally between now and the end of the year? >> well, i still say that refinancing of debt at record low levels right now for corporate is a big thing as well as the fact that the iwm, the smaller capped stocks, the longer that rates stay down, the more of them are going to be able to take care of it and to basically refinance balance sheet, the risk they had on, at lower rates. so that's a positive for those guys. the big guys have had it in their favor all along. >> what's the biggest risk for the markets? >> probably something overseas quite frankly, mandy. for instance, something over between isis and turkey because that's certainly a flash point over there.

but it doesn't appear to be that people are that concerned about a cut-off, scott, in crude oil supplies and so forth but we have the opec meeting coming up in 2 1/2, three weeks. that will be something they focus on after they focus on the election, which, of course, is next tuesday. >> i don't think we expect any change. they've youb played any expectations that there could be a cut to the production output. >> right, mandy. they always say it's like herding cats. you've got to put the mpedal to the metal and pump and it was cut back a little like mr. putin. >> jscott, one of the things yo do every day is corral them like herding najarian. >> like herding cats. >> how are they going to be tomorrow? are they going to say hawkish ones sell? >> i think it's the statement

made by one of the early lower guests. maybe this is less dovish but not necessarily hawkish. i think there's a difference. i think guys like jon and the others on the show were hopeful this was going to happen, that it means the economy is, in fact, improving, not to put words in your mouth. but this certainly sounded like a positive from your standpoint, that there was a real reason to buy stocks and to thing that the stock market could go up if it happened for a reason. >> exactly. certainly the confidence numbers that came out were surprise fog many on wall street. in other words, that's a positive to have a consumer going into the holiday season. >> a lot of people said if there was a delay to qe, it would have been a negative signal. >> i agree. >> qe, rearview mirror. it's resting in the third policy graveyard. coming up, we're going to be reflecting on its life.

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now that qe-3 is over, qe altogether is over, let's explore whether it worked and to what extent.

let's bring in senior contributor larry kudlow. welcome back. get of you to join us on a day like this. what score would you give qe? >> i don't think the fed hprooub that it did any good for the economy. qe-0 in late 2008 was essential. we were on the verge of god knows what. 1, 2 and 3, i don't think the evidence is there. i don't think the system, the federal reserve system, put out much evidence so the counter factuals -- i don't know. >> s&p up 131% since qe. dow up 100%. >> yeah. >> unemployment rate of 8% to 5.9%. >> wages 2%. labor participation rate the lowest in decades. i don't think the case is there. i don't think that's why you hear them making the case. look. i'll say our economy would have recovered. it's a flexible, free enterprise economy. you can't convince me that we

needed $4.5 trillion of new bonds on the fed's balance sheet. our economy would have moved towards recovery anyway. i will say this. i want to praise janet yellen because sometimes i have been a critic. she followed through on ending qe and there were moments in recent months where a lot of us thought she wouldn't and she did it. and i give her a lot of credit for that. who i don't give credit to is all these reserve bank presidents who are constantly out there yapping and in my opinion, okay, just my personal opinion, they're misleading markets. they're responsible for some of the volatility. and they speak for only themselves. and this is wrong. they should be seen and not heard. they're two people that the people in the market should listen to. one of them is janet yellen and vice chairman stan fisher. the rest of the group, i have never seen such a lack of

discipline. >> i don't agree at all. >> i figured you would. >> i think the evidence is that the expectations for the federal reserve and for interest rates had been remarkably stable and what's out there, the mistake people make is listen to one person who may not be -- have the right call. >> that's what i'm talking about. >> i think it's comments of jim bullard and maybe suggested the fed may not end qe. >> not the only one. >> that's followed up of an interview of boston saying nothing of the kind and seemed to suggest we were right on track. comments over the weekend. richard fisher, as well. the plurality of voices led stability. >> i think -- >> i remember no idea, we looked at alan greenspan's briefcase to know the policy. you remember that. >> i'm from the old school. i don't think that these fed guys should be talking so much at all. okay in the actions speak louder than the words.

but i'm afraid i don't agree with you on some of these presidents. they change the positions a lot. one guy's talking about qe may go on for longer time. john williams said that just a few days ago. that was nonsense. no business saying that. bullard, what's his name? >> bullard. >> i don't know him. not personal. he flips. he flips. one month one thing, one month another. that damages the system. on the positive side -- >> told him to talk to the hand today basically. >> on the positive side, i give ms. yellen. i'm a market watcher. the sensitive indicators tell me there's no recession. there is no inflation. dollar is rising. profits are rising. and lower oil prices are uniformly good. it's a massive tax cut. these are positives for the economy. and what we need now is give us a corporate tax cut in washington and let the fed start

normalizing interest rates gradually. gradually. no rush. they need the cover. >> larry kudlow, always good to hear you. >> you heard the shout-out of brian. >> he was hot today and sorry he's not here. i'm grateful he said that and he's right. this is going to be king dollar. dollar will go up. >> thank you. big fed day today. lots of market action. one final check on the markets and how they're reacting. that's coming up. and when weather hits, it's data mayhem. but airlines running hp end-to-end solutions are always calm during a storm. so if your business deals with the unexpected, hp big data and cloud solutions make sure you always know what's coming - and are ready for it. make it matter.

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been a very big day here. the end of qe. history in the making. dow down. nasdaq down. pretty much round trip to where we were going into the decision. thank you, steve, scott and thank you for watching "street signs." "closing bell" is coming up next. welcome to the "closing bell." i'm kelly evans at the new york stock exchange. >> i'm bill griffith. markets still trying to sort out what the fed said in its statement following the two-day meeting. one notable phrase, more constructive comments about the labor market. they had talked about all the slack in the labor market to this point and this time around they were more constructive on labor than quite a while so that has been believed