one will put $4 billion on the border wall. and other will say to change our asylum laws. not too hawkish and not too dovish. it was a side of confidence in the market. in u.s. stock market under pressure as well. yesterday was nauseating. following the fed rate news.

nauseating is a good word. the yield on the ten year treasury dropping to 2.7%. as you can see they are watching oil. and here is a tenure right now right here on the screen. it's on 1.3 percent. almost 3% to the downside.

fbn:am starts right now. >> it is thursday december 20. the morning after. and good morning. the wall street journal editorial board yet but they're weighing in. on the latest federal reserve hike. they had written a piece in the newspaper. the markets need to accept that lower rate hikes are coming. they told of financial markets the financial markets that they don't matter all that much to the real american economy and the markets barked right back. it could become economic trouble for 2019.

>> the federal reserve raise the federal funds rate by one quarter of 1%. there now and the range of 2.25 percent. the air signaling to more rate hikes next year. and one rate hike a year after that. it is down from three rate hikes from next year. is 2.8 percent. the federal reserve chairman said the jade --dash mcdata shifted somewhat since the last meeting. it all changed the outlook. >> we tried to factor that into our marker for the economy. that's how we think about it. we follow markets really carefully from a macro economics in point know one market is that indicator. they never indicated when they would actually pause.

jerome foul said that deposit would likely pause would likely come around neutral which could be towards the end of next year. listen to what he has to say. once you are broadly speaking in the range of neutral i think it's appropriate to be putting aside individual estimates of that and be looking at what the income data is telling you about the outlook updating your estimates of what neutral might be. with the state of the economy. we have a steady growth in our economy that we have low unemployment that will take even lower next year. and low inflation. so analysts are saying from that perspective this looks great for the fed to continue raising the interest rates until they can get to that neutral level. we get more from michael lee. michael, what is that neutral level. >> there is a neutral level when there is equal odds. there's a 5050 chance of them

either raising or dropping rates then you're neutral. traditionally this has been rate around gdp growth. if the market is looking for a neutral rate around 2% that means long-term growth for the economy is only run 2%. the editorial board subject of a piece this morning. take that. why is jay foul not concerned about the signals that the market is sending. 298 of the stocks in the s&p 500 are in the bear market territory. what's he looking at. once you get into saying what the equity market is telling the fed that's the tail wagging the dog. monetary policy should be based on the entire economic situation of the united states. in the outlook going forward. what i would say to the equity market is. we need to remember why we are

raising rates. at the economy the u.s. economy is booming. going all the way back to 2008 were only at the short-term interest rate level that we were right after bear stearns was there. $4trillion in the balance sheet. do you think the fed is right in the market is wrong and that's why jay foul seems to be ignoring the markets? as for the equity markets want certain things in the short term which might not be beneficial for the long-term. if you keep short-term interest rates low for too long it actually pulls on growth in inflation. the markets cratered today. michael lee, thank you very much.

>> that was a big loss for the market. it back your home lawmakers may be a little bleary eyed this morning. the senate staying stayed up late last night to approve a spending bill to fund the government. the measure only kicks the shutdown deadline until february 8. here's what's on the table right now. that is a lot less than the five billion of that president trump wants. it keeps the debate going. >> with the democrats failure to take our borders seriously the republicans will continue to fulfill our duty to govern by a simple measure that will continue government funding into february so we can continue this vital debate after the new congress has convened. >> the news -- the new congress will look a little bit differently. and the deadline to keep the government open is midnight on friday.

>> we will see what the president does. the lawmakers are expressing shock at the quick withdrawal of u.s. forces from syria. it's time to pull out. now that isis is defeated. >> our boys and our young women and our men they are all coming back and they're coming back now. we won and that is the way we wanted. and that is the way they want it. it seemed like an abrupt decision. it is dry negative reactions from those in their own party. i'm pretty partisan guy. i can't find anybody on either side of the aisle that thinks this was a good idea. i've never seen a decision like this. where nothing is communicated in advance.

>> neither the white house or the pentagon offered details of the withdrawal. >> also this story breaking overnight. carlos could be released from jail as early as today. a tokyo court in a surprise move rejected a request by prosecutors to ask dent that attention. they are appealing that decision the decision right now. the lawyer will seek bail if that appeal is also denied. remember he was arrested back in november and he was indicted earlier this month on charges of underreporting his compensation on nissan financial statements by $44 million. but there is a lot of question marks about exactly why he is in jail. and the reason. they spoke of finally facing legal actions for one of the biggest scandals. it's not facebook's year. washington dc. carl racing is suing over cambridge analytic up.

in a statement they said facebook failed to protect the privacy of its users and deceived them about who had access to their data and how it was used. this marks the first formal effort to punish facebook over the scandal a spokesperson for facebook said the company is reviewing the complaints. facebook is down 24% year-to-date. year to date. not a good year for them. >> 200019 we think it's gonna be a busy year for ipu -- ipo. >> pinterest is actively preparing for its ipo that could come as soon as april. the wall street journal reports that it is in the process of taking to bankers as it looks to choose underwriters for the early 2019 ipo. they could be valued at more than $12 billion recently the company has hired former google exact figure for setting that up.

>> one of the cars caught fire which is alarming. but not once but two times this happened in california. in one day. the model s owner was driving when he got a flat tire. his tahoe car was towed to a shot. you can see they put out the fire. but instead it could reignite. they waited six hours for the battery to cool down before toeing it to a new lot where caught fire again. the owner said he just got the car three months ago. only serving 1200 miles. tesla said it is investigating. it's up nearly 7% year to date. >> maybe he shouldn't worry about tunnels under los angeles. thank you. >> we have some buyers to show you this morning. here's what we are looking at this morning for futures. we are read again after yesterday's 900-point swing.

it was a nauseating day for investors dear and after the fed decision. still ahead. a stunning statement from north korea this morning. this is the latest sign of resistance. despite his promise to do nuclear eyes. and mcculley culkin mccauley culkin is home alone again. only this time he has a little bit older. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95.

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it's 2000 and 18 winds down to a close. the housing market is showing some signs of a slowdown. the steepest decline and seven years. now that the fed has ranked interest rates what does that mean for those who are in the market especially looking to buy a home. and for the industry look spring let's bring in mitch rachelle. >> we are looking at the 30 year right now. what does that tie about the housing market for next year. it was five something a month ago. that's certainly a concern. there are a whole variety of things that are waiting on the housing market. one of them is the confidence of the big ticket items. and right now with all the volatility in the markets and some concerns about the future of the economy buyers are just pumping the brakes right now. in their and there same just maybe not now.

sales for existing tumbling is 7% in october. >> if you look at the annual basis for this. 2.3 percent in the first 11 months sales are down. you're wondering how much more of these numbers can decline. one of the things that also happens. is that that sellers aren't selling homes either. you may not want to put that home on the market right now. because of low supply we are still continuing to see prices pick up so we have the double whammy. you sell 4% year-over-year growth.

i do and ask you about the news conference. a lot of times they want to address the housing markets. it's played a much smaller role in this recovery. and that's probably why they didn't talk about it that much. 5% on a 30 year is not 13%. for those out there. it's not that bad. my first mortgage was 13% in 1983.

let's take a leak at that. i don't want to jinx it as if it's 900 points. so close to the flatline. the fired national security advisor michael flynn just days ago he is now taking a swing at the president himself. you're watching fbn:am. [music] well, how are the massage chairs working out for everyone?

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>> look here. the mark as just turned positive. futures indicating a small gain for the tao.

at their summit in june. it should remove the nuclear umbrella. election meddling in the association of the former russian spy back in march. he just ruled against the asylum policy. that policy established by former attorney general jeff sessions made it more difficult. someone just hacked into nasa a few months ago and they are still trying to figure out how this happened.

the nasa staff members will be offered identity theft protection. >> two drone sightings. near london had triggered significant flight delays in cancellation. it affects about 10,000 passengers. that was expected to remain closed for about close for about another hour or so. janice dean is here with what to expect for thursday in traffic for the holidays. the east coast is gonna going to be dealing with delays. seasonal average for much of the country which is great news any systems that move and are going to be mainly a rain event. we can see this one developing across florida. in the friday evening to saturday. we will see some wind went out of this.

get this one batch on thursday. there will be travel delays is going to be one to 3 inches. we had flash flood watch is in place for about 70 million people. this is can be a bit big deal heading into the next couple of days. here is the historical probability. mainly rain is going to be a green kristin -- chris just. it will be a right -- it will be a white christmas for much of the rockies. that means here. early merry christmas you.

let's take a look at futures. he is defending the latest rate hike. letting that lead you to adjust your outlook and therefore your appropriate path of policy. is it leading us into a bear market. we will explain. when we return. [music] jardiance asked:

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350 points. there was also some wild trading and in the bond market yesterday. there is. it is. 2.77 percent. they are waiting on stocks there. nearly one and half% down. >> other than that i'm in good shape. how google has a new twist on a holiday classic. fbn:am continues right now.

the reaction she should be how they feel about their portfolios lately. good morning. it is the morning after. the federal reserve hiked interest rates for the fourth time this year. it's raising the question is the fed sending stocks into a bear market. we saw the political pressure from president trump. his account with the market says.

we are going to hike rates today. and they would have absolutely loved it. they're really only removing one rate hike. up to 90% of the classes are in a bear market. 298 stocks in the s&p are down this morning. and he's kind of been relentless. they love it. we are tightening. we can continue to gonna continue to sell off our portfolio. in the markets seem to be

really annoyed by all of that. my neighbor said we are on the point of no return. there is his tendency to be calling the sky is falling. it's been very loose. people are overreacting to this. they are comfortable with two rate hikes. they have televised to to five. he still have the wild ride it yesterday. yesterday. it's so true. i'd disagree with that a

little bit as much as i like you guys. it's a mechanical thing. >> we are while below normal but we are not considering the amount of money in the system. quantitative tightening is a reverse of that. that 600 billion coming out of circulation next year. is a sky falling. we have we've a record amount of debt in the system. it's really can a put good to put pressure on the debt system. and really quick about the bond market.

those could have the economic pressures in the u.s. it does affect the average american. the federal reserve can be destabilizing its policies we can see things with what is good to happen into the economy in the future. and the fact that everybody always has to be watching them to be guessing what they're doing. it's can have that potential. >> used to be like that under greenspan back in the day. they can absolutely impact the

ipo market in 2019. as another popular company makes its plan to go public. pinterest wants an ipo as early as april 2019. the online shopping tool what follow other high valued startups. is this the best time. good morning. tech kind of let this led this last great push. i think maybe i needed to stop the bleeding. when we look at these names. many of them were founded during the crisis. during times of discretion -- destruction is the market ready for them to do so. a lot of folks are saying there is a tsunami of companies ready to go up in 2019. the market especially in the

first quarter might be closed to them. we spoken about where the growth comes from. these are actually the great companies that will come and get us that. i think people will welcome them. >> a lot of them are unprofitable. and we know what the stock market does to profitable but on popular companies. the one i'm most excited for is air b&b. what we use. i think it is a great transactional platform. is totally disrupting the industry. they are baking and some incredible innovation. it won't come for quite some time. kind of doing nice way to turn

into they get a valuation of $12 billion. not too keen on this one? >> i only know and invest in the things that i know. is not unseen and really gung ho on it. i think they found a way. it's one of the smaller kind of platforms. it doesn't seem to be what's gonna change the world. we will see how 2019 shapes up. with everything that's going on we earn an urine we liked pinterest as well.

it's a major market. now pay attention wall street. tracy has that story. they are reportedly close to the deal. to take 35% stake in jewel labs. this investment would make it one of the most valuable private companies they had been looking for opportunities outside of that shrinking business. it is the latest to get into the pot market. in heiser bush. to research nonalcoholic beverages laced with weed. this is one of many deals. those are both also working on

marijuana laced products. it's down 38% year to date. i believe after this news came out. it was a big story, a big move. how milan fans. alone fans. kevin mcallister is back. it's a new and for google assistant. take a look. >> give one event called talk to yourself. he got back into character as the 8-year-old re-creating iconic scenes. when kevin mcallister gets his pizza delivered he even got to say keep the change you filthy

animal. and this is looking pretty great also. not to sell off we just went from green and to read. it's now down 35 points. as we head into the final crucial shopping days before christmas will take a look at who the winners and losers are. and if amazon is eating their lunch. what does congress had to say about that. >> [music]. the hard work you put into lowering your

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it's great to have you back. now that you've have those kids you can take them out shopping and you can tell us what you're seeing out there. in the retail landscape. let's first talk about the holidays. a lot of the retailers are seen insane sales when you look at what is expected. from the national retail federation. were looking at numbers such as 3.4% increase for retail sales. they are experiencing people going into the stores and especially shopping online paypal came out with a study that said 47 percent of americans are shopping by their mobile devices having that ability to shop anywhere is having an impact on these retailers however when we look at the earnings and we look at the stock prices of a lot of these retailers macy, targets

for example. they have really taken a hit. i think the reason why is we are looking at these macro effects on the stocks. >> let's look at some of those year-to-date stocks. there is target right there on your screen. a lot of pressure for target. target is down more than 27% just in the first quarter. macy's has have a lot of pressure. tiffany that luxury market in china seems to be drying up for them. and of course we have jcpenney. >> when you look at a retailers such as target for example. when you analyze their earnings and how they performed last quarter. >> a lot of the effect that they have and the reason why we sought such a dive in those numbers is because they were spending a lot of money on infrastructure. in order to get those customers into the stores. you have to make sure that your infrastructure is up and running. with a lot of product in the storm. a lot of the investment is just having an impact on the

bottom line in an order to get the top line growth. when it comes to retailers like tiffany's tiffany's for example. that is dependent on the luxury shoppers. when the news came out that the tourism that it's dried up. that has impact there. i was can ask about the trade war with china. all of the retailers before the tariffs kicked in. they really loaded up for the season. now what's a story can the story can be for 2019 in general. >> there is a really big fear amongst a couple of retailers. walmart sent out a letter saying in expressing their fear about a potential trade war. it just remains to be seen what happens, january a lot of

them are sitting on pins and needles and waiting to see what happens. they're basically waiting to see what happens. >> congratulations on the twin i'm sure it will be a really fun holiday with the family. nasdaq is down just about seven this morning. it is going to boost the ability to come back. we're gonna take a look at some of the possible consequences of that decision one commuter did not get it down. you're watching fbn:am. [music]

>> let's see what's happening now. we are seeing something really interesting and the futures right now. we actually went in the green.

is now down 47. nasdaq is down seven. also this. a bipartisan effort between or in hatch in democratic senator orrin hatch. he said that it is protected to protect against that happened back in may. cuba has struck a deal with the major league baseball. it allows cuban baseball players to sign with mlb teams without defecting. some of the biggest stars had to risk their lives and had to escape to the u.s. for a chance to play in the majors. and finally, one man was stuck in maryland traffic can take it anymore. a woman driving by took this.

and posted it to facebook. see mecca can make this up if i tried. they are announcing that. over the islamic state. the president tweeting this. we had defeated isis in syria my only reason for being there during the trump presidency. let's bring in the foundation for the research fellow. thank you, for joining us. should done on truck -- should donald trump be taking a victory lap? >> know, syria has been failure since 2013.

i don't think general trump is going to be any better. if you can hold the thoughts. if you can talk about how strong isis is or is not. it's not the only beneficiary of this decision. i'm on the president has

rightly been making the case against more pressure. do russia and iran view present trump who started out so strong. does this make them think that president trump is weaker. they are engaged in the maximum pressure campaign to get more financial pressure there. that pressure. when they are bragging about sending ballistic missiles there. and two months later in the u.s. simply said it's going to be pulling out troops. that sends the wrong message. the wall street journal editorial board writing this

as an is an obama -like signal of retreat. they did declare victory over them. and he pulled out of iraq. they formed in a vacuum. can you explain the parallel for our viewers? >> you don't want to be leaving those. they are an extra-large problem when you have a regime aligned with russia and iran. but you're looking to reconquer territory. some more questions for you. we appreciate your perspective this morning. >> merry christmas to you. >> global markets sinking after the fed hiked rates yesterday. are the bears are not going into vibrate nation for the winter?

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i don't know scott, so much for santa claus rate? it is psychological. there hasn't been over any real news out there. we are borrowing trouble. we felt too guilty about this good rally we've head. now are only paying attention to the bat on the break. we are going to get a break. and when they take their victory lap we have it to 75

tenure. how come we broke then. you brought up oil. under pressure down 3%. but now behind this weakness. there is no new news out there. we know we had have a lot of oil. and here's what i say about this. we are focusing on the negative. will is such an integral

part. i'm trying to do some research. if oil is free how good would that be for the economy. that is a quickest way. i want to do that research as well. and look who's back is back in the hot seat. happy thursday. thank you for joining us. it is thursday, december 10. see mecca i'm sorry it's actually december 20. stocks under pressure this morning. they have the decline of about 25 points. the s&p 500 is down 200.

it's actually back and forth and now just turned negative. they are raising rates for the fourth time this year. we have a low low unemployment and strong growth. it has still remain just a touch below 2%. i do think that gives the committee the ability to be patient. there is significant uncertainty about the further rate increases. european industries are lower. it's down 1%. in index in germany at down about take a look.