hi, welcome to "on the money." i am becky quick. janet yellin speaks, the markets quake, what did she say, mean and what's next? toyota find $1 billion. gm facing criminal investigation. who is watching the automakers to make sure they're doing their jobs? and is america a third-world country when it comes to the airports. ranking the best and worst nationwide. whether you are walking to the altar or ready to retire. tax tips for every stage of life. your money, your future "on the money starts right now." >> announcer: this is america's number one financial news program, "on the money." now becky quick. >> here is a look at what is making news as we head into a

new week. fed chair janet yell spin spein. she answered questions from the media for the first time since she became chair. ye yellin said the fed would slow the bond buying program by $10 billion and stop using 6.5% as a rate target for when the fed will raise interest rates. she also talked when she thinks the rates could go up. >> it will be a considerable period after the asset purchase program ends before it will be appropriate to begin to raise rates. and of course, on our present path, we will be looking at, x next fall. >> when they would raise rates? or when they would stop tapering? in any event the markets didn't like the comment about timing. some assumed rates would stay low even longer. the dow falling triple digits

wednesday. but among further review, investors decide maybe that wasn't so bad. the markets recovered most of the loss on thursday. stocks fell though on friday. most of america's major banks are in pretty good shape. the federal reserve released the results of the stress test. 29 out of 30 large banks passed with the bank falling short. it is whether the banks can with stand a downturn. and have the fed decide to approve bang banks plans. a few companies reporting earnings. kb beat expectations as did technology company, adobe and nike. fed-ex missed, blamed bad weather. oracle fell short as well. >> at first blush the markets clearly didn't like what janet yell spin had yellin had to say. did they overreact? a tempest in a teapot? joining us, barry knapp head of u.s. portfolio at barclay's.

guys, thank you for being here today. what do you think? did janet yellin misspeak, or making too much out of this. >> she didn't misspeak. i didn't think that once the market had gotten the forecasts from the participants. all the governors. and regional presidents that they thought by the end of 2016, the fed fund' rate would be 2 1/4% up from 1 3/4%. forecast in december. really mattered what she said from that point forward. the fact is the market has been pricing at an overly passive rate hike cycle for some time. this idea that the fed would once they get started raise rates 1% per year. they have never gone slower than two. so, really -- it is not a question of her misspeaking. a question of the economy is getting better. the fed will raise rates. >> aaron, to that point, is it the fed raising interest rates. has the the market worried. or should we really focus on the real economy. if the real economy is good

isn't that great news for equities. >> great news the fed feels confident the economy will improve and give them ability to raise rates. my concern the fed for the last several years has been wrong and forecast on the economy. overshot where they thought the economy would be and wrong about inflation too. the market had a freak accident. no, oh, no, fed will hike in 2015. recent past is history. the fed will tighten later rather than sooner. >> brings us back to the point of where the economy stand rights now. we did get thrown off by the weather. what is your underlying sense of what is happening? >> economy is in good shape. the real issue held the economy back the last three years was uncertainty about public policy, fiscal policy, what was going on in washington. that, that, weakened business confidence, slowed investment, slowed hiring. that has gotten substantially better. that's the core of why the fed remains optimistic and is not cutting their forecasts. >> let's talk about the other factors, not what we can control here in washington.

what happened to the u.s. economy here. there are a lot of things outside this geopolitically. it looked like we cared for a day. when it came to the situation in ukraine. is that something that either of you think could come back and pressure stocks from here? >> i'm surprised there wasn't more fallout from that. just because of the impact it could have on the european e con of my putin doesn't -- economy if put-in does not stop with crimea. if the german economy falters, the european recovery is in trouble. the other thing, the chinese economy slowed. the market is sensitive to every piece of economic news out of china these days. >> my perspective on that. first on russia is, that we did, a macro survey recently with all our clients. and the vast majority think that the deflation is a bigger risk than inflation. one of the parts of the elements of the deflation story this year was, energy prices are going to be weak because of the u.s. energy meiracle. the whole russian situation

means they went be that weak. keep the jgeopolitical risk situation high. i am concerned about china. but ultimately i think the inflation dynamic will push the fed toward normalizing policy, faster than the markets expect. and will dampen, the enthusiasm of the market for a time. >> aaron, i want to ask you about ipos, a big year for initial public offers. we got the news that they'll hold an ipo in the united states. is this a good sign or start to worry you, things are feeling a little bit bubblish. >> good sign. companies come public. that's what the stock market is about. help companies raise money. go out. expand. hire more people. ultimately a good thing. some of the deals that are coming out though. some of the valuations hatch been frothy. that was 1999esque. you don't want to make comparisons. some of the, we saw end of the past week. cloud companies.

not a tremendous amount of track record or revenue. it is starting to get frothy around the edges. it is in pockets. >> let me ask you you think this is a year we tread water. markets move higher. what would you be telling retail investors now? >> that i would not be committing new dollars today. but if we get a pull back related to the fed normalizing policy, concerns, a rise in interest rates. trying te triggers a 5%, 8% pullback. i would buy it. fed normalizing policy because things are getting better has never been the end of the bull market advance out of the recession. never the end of the economic expansion. merely a pause. it is a pause. a pull back. commit money on the pull back. >> thank you both for joining us today. >> when we come back. we are on the money. you are watching the road. who is watching your car.

gm and toyy ota were in hot wat after known defects were uncovered by the public. later you, know you have been there. tr travel trouble. talking worst and best airports in america. all relative. as the we head to a break. look at how the market ended the week. ♪ ♪ you used to sleep like a champ, you lay down, clocked off

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change author, reuters managing editor, paul engrazia, and joan claybrook. joan, paul thank you for joining us. paul, i would look to start talking about this. the justice department as it is clear making an example of toyota. back on april 1st, we have the gm c.e.o. to testify before congress. >> a big problem for the company. pub ri a black eye in public relations. and huge drain of senior management time for a long time. i think. typically these things get worse before they get better. i think financially. not going to be a problem for -- for gm to handle whenever fines, apparently, lawsuits. settlements. that sort of thing. this will be a significant issue for a while. raises fundamental question as but the company's culture. >> you criticized, the ntsb for not acting sooner when it knew of gm's problems in 2007.

why do you think the agency didn't demand a recall? >> well i think they have a culture problem like general motors does. it is essentially, don't ask/don't tell. they never ask general motors for enough information to open a defective investigation. according to them. in my view they had more than enough information in 2007. when an accident investigation team looked at one crash in wisconsin. determined the accessory position, meaning you can run the radio, but not the car. the airbags didn't inflate. when the airbags didn't inflate is because the electric system in the car wasn't working. but they identified why. so the agency had this. talked to general motors about it. then it went into a deep, dark hole. they now say they didn't have enough information to open an investigation. i completely disagree with that. >> do you think this is a wake-up call for the agency? >> well it should be. but you know when the ford firestone case came up in 2000,

the congress passed a law, called the tread act to put some additional requirements on the auto scum pacompanies. we thought we solved the problem. one of the issues here is that they keep everything secret. they are very, very secretive. way beyond what is required to be disclosed. >> we heard about another recall from chrysler. announced to recall fiats for transition issues. every time we turn around. there is a recall that has come. should consumers be concerned about quality. how safe are we when we come to today's cars. >> cars are safer. than they have been for decade. some cars have up to ten airbags per car. you have, collapsible, steering wheel columns. never used to have. anti-lock brakes are standard. safety equipment is very common, quality scores are way up. but nonetheless, they're defects. honda had a big recall, of

minivans because of potential engine fires. it happened in the field. good for the company to take it step. caught him before anything actually, did occur. so, listen, it is complex. anything that is made, you are going to have recalls. but i think it is hard to say that cars are unsafe or not safe, than they were, in the past. that they are safer. >> joan, how about you? what do you think? >> they're safer. a lot of the reason they're safer, the federal government issued motor vehicle safety standards. including airbag requirements. so the companies have to make safer cars. they crash test the cars. and the government. that information is public. the companies are sensitive about it. they make an effort to exceed the requirements of these crash tests. >> you know, toyota sales took a hit when their troubles began. they have begun to rebound. do you think gm will come back as easily? >> well i think it will come back. you know, of course, a good

question whether it will come back as easily, becky. this is the reason. until it is a problem. that huge recall. they had really a sterling record, reputation, anyway for safety and reliability and all of that sort of thing. and, general motors is coming into this with more baggage. honestly. gm has the had more reliability and safety, use over the years than toyota. and, you know, the unfortunate thing about this, from the company standpoint. lots of unfortunate things. mostly from the, from the victims and the families, sadly. from the company standpoint. look, they have gotten the government out of the ownership structure. new ceo. first ceo in history. and talk brand new start. all that sort of thing. all this really, evokes memories of a bad old gm. not a good thing. >> thank you both. great talking to you. up next we are "on the money." ranking america's airlines, airports. how to survive the worst of the worst. what you need to know when you

fly. later, tax tips for every stage

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>> took you to la guardia airport in new york, you would think i must be in some third-world country. >> vice president joe biden putting new york's la guardia airport in the news about the infrastructure, part of growing concerns for the airline industry as big fliers try to navigate, weather, competition, and demand.

a special correspondent at travel & leisure. thank you for joining us. >> thank you. >> i know we had weather delays this winter. a big issue. all in all. a good time to be an airline from the business perspective. airline business. >> air lanes have seen an increase in revenue because of baggage fees. in the first three months of last year, $2.5 billion just in additional fees. not seeing them go away anytime soon. >> yeah, we see investors who suddenly never would touch, airline stocks, a good time to buy airline stocks. one side of things. if you are a consumer, traveling on an airline these days what's that like? >> so, just this week the department of transportation released air travel consumer report. what we saw is that it is not great news for the travelers. there is an uptick in frustration because it is delays. there were 30% more delays in january than december. could say it is the third worst winter in three decades.

so, really suffered through that. those additional complaints. airlines are doing interesting things to connect with their travelers. social media, a really important way that airlines are communicating directly with travelers. and helping alleviate some of the stresses. >> if you are sitting online. you get frustrated you. tweet something about the air lane that is making you sit there and wait. they'll get back to you and respond? >> often times that is true. an example one of the airlines called out. having negative experience was jet blue. they're also at the forefront of social media. they have seen a wonderful, halo effect of brand loyalty. there is an open forum for discussion. people are being hit with delays, with increased baggaged stringent. you won't see big carryons. >> i am in favor of that. push the bag. paying particular attention. additional news. delta changed frequent flipper program starting next year, people will get points based on

the price they paid versus the amount of miles that they have flown. this is interesting because. advantage for business travelers, paying last minute high priced fares. >> disadvantage for anybody sent on their, you know, use hub and spoke things. make you fly how to houston before you can fly to omaha. which is crazy. going to make me fly the miles. pay me for the time putting in. >> true. something that we are watching. there is a question about whu whether others will follow suit. >> travel & leisure polled readers, best and worst airports in america. what did you find? >> interesting things. we found the best airports exemplify what travelers are looking for in the air port. bringing local food into the airport experience. that means swift check-ins. tsa precheck. two best i would look to note, portland, austin. destination that are having emerging culinary scenes. culinary hot spots. and the airports are bringing those out posts into the airport experience itself.

that's why two examples our readers loved those. >> the werest? >> some of the worst, not surprisingly, la guardia. bill and hillary clinton national airport. undergoing renovations. that's one reason why people are frustrated. billings, airport in montana. >> thank you for joining us. >> thank you. >> next, a look at the news this week that will have an if pact "on the money." and from wedding bells to rocking chairs show you how to save big on your tax bill at every stage of your life.

for more on the show and guests go to our website -- here are the stories coming up that may move markets and impact your money. carnival, lulu lemon. game stop. blackberry reporting earnings results. monday, president obama will be visiting the netherland for a nuclear security summit. then heading to belgium, italy, saudi arabia. tuesday, the s & p, index is due. and the kickoff event for us, ipo began. thursday, final read for fourth quarter. and 2013, gross domestic product released. thursday. and holding his first press conference at microsoft ceo. we are nearing april 5th. if you made significant changes in your life anything from getting married to having a baby that could impact your tax bill. joining me with tax tips for every life stage, is personal finance correspondent, sharon epperson. thank you for being here today. >> my pleasure.

>> why don't we start off with people who were either newly engaged or newly married. are there thij things they cou doing? >> newly married couples need to think of filing their taxes do ways. married filing jointly. which are the best options, best savings? two working people in the, marriage. then it is going to be better to file married, filing jointly. if some one is making more money. more income. got to do it both ways. and a lot of folks when they're single. claim the standard deduction. think about claiming perhaps, itemizing your deductions. that will give you a bigger savings. >> a really good point. makes sense to run the numbers both ways. you could see a significant change in what you are paying. >> you could. >> talk about parents. a new parent what do you get. >> new parent. gement $3,900 personal exception for the child. >> not bad. not bad at all. phase-out limits for credits. deductions. think about child tax credit.

may qualify. $1,000 per child. that its 16 or younger. dependent care krez it that you may also be able to take advantage of. and that's for day care, or, summer dale camp for 12 and under. >> basically, need to be keeping good record all year long. go back andiry create what happens through the course of the year. >> going back. and the summer camp my kids did. i have all tax information. it could be a big savings. >> those nearing retirement. what deductions? >> close to retirement. you can contribute until april 15th. up to $6,500. 50 or older. 5,500 for everyone else. a tax break. may want to consider ira rollovers. folks wondering whether they should do a roth ira. may make sense. don't want to have taxes taking out of money you withdraw. pay the tax now. it will be tax free after 59 1/2. for seniors, this is important to know.

the medical expense deduction. the special applies to you. if you are 65 or older. and, so, adjusted gross income. in terms of medical expenses you need to have. to deduct that amount. for everybody else, this year, 10%. >> sharon. thank you so much. >> my pleasure. >> april 15th coming up quickly. >> get the taxes done. >> that's our show. i'm becky quick. thank you for joining us. next week, zeke emmanuel, adviser on health care. >> each week, keep it here, we are "on the money." i will see you next weekend.

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