joining us right now, financial writer for the washington post and david bianco. thank you both for being here. ela n, one of the big stories had to be the fed anticipating that the fed might end tinkering with her statement. >> i think that would be an exaggeration. the fed has been very cautious in withdrawing its stimulus. they are very worried about rattling recovery and pulling the carpet out from under the people who need the fed support the most. and so they are not going to move until they actually have to. the considerable time that the fed has said it will wait before raising interest rates is linked to the end of its bond buying program. that one won't end until october. the fed has seven more meetins.s >> i just wonder what investors should do to prepare, if anything. >> one of the things, we see the bond market as having interpreted the action as a little bit of a tightening. within the statement, there is a survey as to what they think interest rates will be over the next years and the expectations went up. we saw a bond yield start rising and that h

joining us right now to help make sense of the signals from yellen and company is david bianco. he is deutsche bank's chief equity strategist. bill lee and, gentlemen, welcome to both of you. >> thank you. >> david, first of all, what happened yesterday? this was the biggest drop in over a month for the dow, the s&p and the nasdaq. >> we've seen long treasury yields move up just a little bit. there's tension in the equity markets over what's going to happen to interest rates. >> we're talking about finally pushing to above 3.5%. >> precisely. the big news of 20 sh is how low interest rates are with the confirmation of the ability for long-term yields to stay low. still, there's unresolved business about when is the fed going to start talking about or onlying the stronger data or changing way it guides markets. so in the next week, we could have some change about a considerable period until they hike rates. i think they will be hiking rates around the second quarter of next year. and i would argue that's an important thing to happen. in order for long-term yields to stay rel ative