this is "nightly business report" with tyler mathisen and sue herera. funded in part by -- >> all it takes is a spark. one idea to take flight. the courage to seek the unknown, to innovate, disrupt, to move us all forward. to explore a different perspective. at nasdaq we connect the world, its ideas, its capital, its businesses, the people that drive global economy. the future isn't tomorrow. it's right now. all it takes is a spark. nasdaq. the simple message is the economy is doing well. >> the fed makes its move. the central bank likes interest rates, signaling there are more

raises to come. the market likes what it heard. >> shifting gears. president trump tells the auto industry he wants to make changes is that hands them a fuel economy victory. >> tax scams. why the bad guys want to get their hands on your w-2s. those stories and more on "nightly business report" for wednesday, march 15. >> good evening, everyone. welcome. interest rates are on the rise. federal reserve policy makers today increased the key short term rate for just the third time since the financial crisis. the move is a sign that the central bank is confident about the outlook for the economy but it is much more than that. the move will likely impact borrowers who are looking to take out a mortgage or finance a car. it could potentially help savers who have lermd little interest for years. as for investors, many say a strong economy is good for stocks and that helped lift the market today. the dow jones industrial average is 112 points to 20,950.

the nasdaq added 43 and the s&p 500 gained 19. hampton pearson takes a closer look at the fed's interest rate decision. >> inarguably, one of the most trans parent moves in the reason memory, the federal reserve committee raised interest rate points by a quarter point. it is the second rate like in three months. monetary policy makers cited a stronger labor market and improving overall economy as the primary reasons for the like. >> the simple message is the economy is doing well. we have confidence in the robustness of the economy and its resilience to shocks. the rollover of the last several years. we've created since the unemployment, around 16 million jobs. >> the central bank's outlook for growth changed little.

policy makers predicting 2.1 this year and next before stloipg 1.9% in 2019. fed chair janet yellen signaled the most likely scenario sees rates changing three times this year. in recent weeks, fed streak and stronger economic data raised concerns among market watchers there might be four rate likes this year. >> policy is not set in stone. it is data dependent and we're not locked into any particular policy path. the markets rallied with stock prices moving higher and bond yield. the dow is up more than 100 points. >> the fed is not going to precipitate any kind of recession. they're not going too fast but they're starting to get their groove. they're going to start doing what the market was expecting. >> today's statement was a little legal hawkish than some

had feared so we're seeing rally in stocks and bonds. >> fed markets think they may wait until june for the next rate like. by then we should have a better idea of prospects this congress for president trump's plans for. at a cuts, deregulation and increased spending on infrastructure. for "nightly business report." hampton pearson in washington. >> steven whiting joins us now for more analysis on the market at city private bank. good to have you with us. usually when interest rates go up, stocks tend not to like it. when interest rates go up, yields tend to go up. but today, stocks went higher and bonds went higher as the yields the went lower. why? >> well, i think there was a great deal of worry that the pace of tightening by the fed would in fact ramp up even more. janet yellen in her speech march 3 suggested that the fed was comfortable with the way the

economy is unfolding, the way inflation and growth is unfolding. and yes, they have now tightened twice in three months as opposed to once in each of the last two years. but they're quite comfortable with where they are. and they don't feel they've fallen behind the curve. so the expect pagss we would face a real interest rate shock faded today. >> they would do the three they've projected but not the fourth, progrerhaps that many pe are saying they may be strong enough by that point to withstand of. >> that's right. and the general uncertainty came down today. now, nine members expect three tightening step this is year. so two more tightening step this is year is more probable. but not some wild range. including perhaps even more than four tightening steps in past cycles, the federal reserve has tightened much more and much faster and the federal reserve

is signaling their comfort with their policy of continuing to raise rates very moderately and keeping the expansion intact. >> so we end up at the end of the cycle, two or three years from now, 2020, with a federal funds rate of what? about 3%. what does that then imply for what will happen or the mortgage rates and or savings rates? >> it means somewhat higher mortgage rates but savings rates should ultimately move up a bit more. it does mean that the yield curve is likely to flatten some. the real questions are answered by the policy. there have been business cycles, booms and busts despite it. you have to remember in most of the economic downturns, the federal reserve has been cutting into them. the federal reserve is not going to cause that problem if they continue to go at this pace. >> what about fiscal stimulus? and stimulus from the trump administration's proposed

agenda? how might that factor in? assuming the administration gets most what it is asking for? does that factor into the fed's actions? >> it can and will factor in. however, the position they're in right now with complete uncertainty be about what exact policy proposals would go before the congress and the likelihood of passage. the uncertainty just the isn't there now. whether there are offsets, whether this isser a tax reform or a large tax cut. those pieces of information are missing at the moment. >> thanks so much for your help. >> after today's rally, stocks are once again sitting near record levels. but no matter how high stocks go, investors are always on the lookout for a potential correction. and at these levels, a typical

pullback could look pretty streep. >> are you ready for a 2,000 point drop in the dow jones industrial average? that's what a normal correction would look like. so think about this. it hit an all time high. it was 21,000. that means a 10% drop would be considered a normal correction. it would be a decline of 21,111 points. that sounds pretty steep. 3,000 points over the past 30 years, the stock market has declined an average of 14% from high to low on a year to year basis. that translates from the march 1 pop. finally, with the eighth anniversary of the bottom of the market. it was widely noted the s&p 500 was up almost 250% since then. but it is up even more than

that. over 300% if reinvested dividends are accounted for. that's the power of compounded interest and staying in the market. that's about a 19% annual compounded gain every year, for eight years. your money would be up almost 20% when the money is reinvested over the last eight years. can stocks gain 20% a year for the next eight years? maybe but i wouldn't necessarily count on that kind of run. for "nightly business report." >> and neither would i. to the housing market we go ahead of the spring selling season. the national association of home builders says sentiment surge to a 12-year high exceeding expectations. builders views of sales prospects now and over the next six months.

>> consumer prices saw their biggest annual increase since 2012. the consumer index was tempered but over the past year, prices have risen 2.5%. by housing costs and medical treatments. today janet yellen said it is rising toward the central bank target. >> they've charged four men including two russian spies with hacking yahoo. they alleged they hacked into yahoo!'s system for roughly a halfer are billion customer accounts in 2014 of. >> they are continuing to send a powerful message that we will not allow individuals, groups, nation states or a combination of them to compromise the privacy of our citizens, the economic interests of our companies, or the security of our country. >> this marks the first time the

u.s. government has issued criminal charges against russian officials for cyber attacks. yahoo! says it appreciates the fbi investigative work and it is committed to keeping its users secure. still ahead, a big win for the automakers. >> is it time to change regulations when it comes to mileage? outside detroit, president trump is calling for a review of the fuel economy standards. that story coming up on "nightly business report." general motors plans to rehire some michigan assembly plant work here's were to be laid off in may. the automaker will add 220 new jobs to one plant in the state and it will hire back or

redeploy 680 of the 1,100 laid off workers at another factory in michigan. president trump is reversing rules pushed by the obama administration to have cars and trucks get substantially higher mileage by the year 2025. it is a change the automakers have been calling for. they say the higher fuel economy requirements drive up their costs and force them to build the times of vehicles that americans are not buying. >> in front of several thousand auto workers, president trump said it is time to review mileage requirements driving up the cost of cars and trucks. >> we're setting up a task force in every federal agencier for any regulation that undermines auto production. >> what he wants to review are the obama administration's rules

requiring vehicles built by 2025 average 54 1/2 miles per gallon. automakers say those rules were written assuming gas prices in $2017 would average 4 a gallon and keep rising. but with prices at the pump well under $3 a gallon, americans are buying more trucks, suvs and crossovers which will struggle to neat stlangs higher fuel standards. >> remember, we were in 2012 making decisions and looking at how we could make improvements through 2025. to take this in 2017 and '18, what has happened to fuel prices, what does the customer want? it makes a lot of sense. >> ultimately, auto makers should see the costs come down if fuel economy targets are lower. which is what many on wall street have been expecting. >> we felt that it was so

ambitious that irrespective of who was in the white house, that they would be graded out. delayed, softened a bit. >> for president trump, this stop in michigan allows him to push two messages. for voters near michigan, he can say that he is helping automakers lower costs. for others around the country he can say he's keeping a campaign promise to lower regulations. >> oracle continues in the cloud buness. it saw profits rise and beat estimates while the sales rose thanks to an increase in the cloud products. the the company raised its quarterly dividend from 15 to 19 cents a share and shares popped in after hours trading. they finished the regular session up a frash at $43.05.

guess reported earnings, that it helped offset he weakness at the locations in the americas. those results still missed estimates, as did the profits. guess gave some disappointing guidance for the current quarter and that sent shares initially tumbling after hours. they did end the regular session up. the camera maker go pro said would it cut its work force by 270 employees in an effort to lower operating costs by $200 million this year. the coil also said it expects earnings for the current quarter to come in at the high end. williams son dloema. the owner of pottery barn gave guidance for the current quarter and full year that was a little

light but still the company raised its quarterly dividend 5% to 39 cents a share. shares rose after hours and ended the regular session up to 48.12. mcdonald's largest franchisee said lower costs helped the company post stronger profit and revenue. the largest the restaurant chain in latin america record a rise in same store sales and set plans to open 180 more mcdonald's over the next three years. that news sent the shares up by 19% to $7.60. executive their finger on the pulse of american business quite the way chief financial officers do. tonight, cnbc is without a new survey of cfos. jackie tells us what they're seeing and worried about. >> and the survey says global cfos are concerned about president trump's key agenda items as well as the fed.

they reefld out to cfos of some of the largest in the world. together their companies are worth more than $4 trillion. most of the lead sars they're less than 50% confident that we'll see corporate tax reform, and interest rate changes this year. nearly all surveyed said they were worried about a trade war with china. a handful said they saw u.s. trade policy. the majority still see two rate thiks year but there was a little shift in the thinking. more were open to the idea of additional likes. actually about a quarter now believe janet yellen may hike three times. despite the expectation for rising rates. for "nightly business report." >> as just reported, the chief financial officers are indeed concerned that a trade war with

china. china is concerned about the same thing. that country's premiere said so himself at the end of the annual meeting of the parliament. tonight in beijing. >> the china he's premiere sent a clear message to donald trump that a trade war cuts two ways. the premiere warned that if the u.s. were to follow through with protecti protectionist american purchases foreign countries, especially american ones can bear the brunt of those actions. america has long seen china as an important market and it is true that american companies have outsourced to china. but that the bulk of the profit goes back to american firms. he also commented on globalization. he said he is back to xi jinping's view that china would be a defender of trade. however, he was a bit cautious about beijing's commitment to

that international role. >> the regional arrangements that concern china, we would have an open minded approach to it and be ready to walk together with others to push them forward. but china has no intention to overreach itself into areas where it is not in place. >> the premiere also weigh in the on the heightened tensions on the korean peninsula after the missile tests by north korea. >> so all the parties together to de-escalate the situation. to work together to find proper solutions. it is just common sense that no one wants to see it. >> when rex tillerson comes the

this part of world. he'll be touching down in beijing on saturday. coming up, is your tax information for sale on the dark web? what you need to be aware of this tax filing season. the white house tomorrow will release its budget blue print. the president will propose steam cuts for the epa and the state department. he will also propose to eliminate the transportation department program that subsidizes flights to rural airports. early exit poes give the dutch prime minister a big lead over his far right rival. the election which is the first of many across europe was viewed as a test of the european union

and of the rise of populism. in response to the exit polls, the euro touched its highest level in more than a month. it is tax season if you didn't know that already. if you haven't filed your taxes yet, you're not alone. there are a few things filers need to be aware of including cyber criminals who cash in the on nearly $2 billion of fraud t, fraudule fraudulent. >> your taxes could be on the web. we looked into this. >> you name it, they'll sell it. >> the stores look line legitimate websites. >> trade ad model that you can trust in an untrusted environment. >> and he says this season, a rush on w-2s like these for sale right now. >> people with high wages. so you should have higher tax

returns. >> how do the bad guys get their hands on your w-2? in one scheme, they send an e-mail that looks line it is from the irs or a tax provider. if you click on the link, you're just giving data away. >> we've seen an 400% increase. >> in another plot, they pretend to be a top exec at your company. irs commissioner. >> someone in the hr department or the finance department gets what looks like an e-mail from the ceo saying i need all the w-2s from our employers. just send them along to me. >> they can submit w-2s to the irs and claim the refund. even before you file. and there's more. he said the undercover crooks are sending e-mails that look exactly like the tax return you've been. >> you get on that, you've been infecting and you get a form of malware that is anything from

your personal financialing to lovinging on. >> these types of frauds are growing. but the irs is getting better at figuring out which are real. >> we can tell, if a computer is being used to file 30 returns, that's probably false. >> and the best advice. never click on any link even if the e-mail looks legit. go straight to the website instead. if you get an e-mail from the irs, delete it. they'll never send out an e-mail or ever contact you by phone to collect a debt. the agency relies on good old-fashioned snail mail. nightly business report. >> that's interesting. tirs never sends an e-mail. >> that's good to know. >> on that note, news you can use. that's "nightly business report." i'm sue herera. we remind you, this is a time of year your public television

station seeks your support. >> we'll see you back here tomorrow. >> "nightly business report" has been fund in the part by -- >> all it takes is a spark. one idea to take flight. the courage to seek the unknown, to innovate, disrupt, to move us all forward, to explore a different perspective. at nasdaq, we connect the world, its ideas, its capital, its businesses, the people that drive global economy. the future isn't tomorrow. it's right now. all it takes is a spark. nasdaq.

for several centuries, scotland was ruled from london. parliament hadn't met here since 1707. recently, the scots voted to bring their parliament home, and london didn't object. in the year 2000, edinburgh resumed its position as home of scotland's parliament. scotland's strikingly modern parliament building opened in 2004.

the catalan architect enric miralles mixed bold windows, wild angles, and organic themes into a startling complex that would, as he envisioned, "surge from out of the rock and into the city."