david wessel to you first, what would you add to the explanation of what the fed did today exactly? >> well, i think the fed is beginning the end of what has been an extraordinary period of monetary policy when ben bernanke became chairman, they had a portfolio of $800 billion. today it's $4 trillion,s that-- 4 trillion, that is just unprecedented but he made clear they dr. going to keep interests rate very low for a long time. and that seems to be what the market is focused on. because the stock market was just jumping for joy at this announcement, not fearing that the dreaded tapering. >> woodruff: and david, why did they do it now? >> well, mr. bernanke said that they did it now because the economy had reached the point where they thought it was time to start turning the dials. the labor market had improved substantially. he insisted it had nothing to do with the fact that he's leaving office in january. but it's very hard for me to believe it wasn't a factor in their mind it would be good to get this going before he handed the gaffe told janet yellin, his likely successor. >> wo

joining us is russ koesterich who is the global chief investor and david wessel at the brookings institute. thank you for being here today. russ, why don't we start about what to expect in 2014. you think we can get a repeat with the stock market? >> well, by repeat you mean another year where stocks were up 30%, that may be optimistic. >> maybe a little bit of a stretch? >> maybe a bit. i think stocks can go higher next year. fundamentals were down. valuations are a bit stretched more than a year ago. if we have a year in which economic growth accelerates in the rise and interest rates remains modest it can make 2014 higher. >> are you expecting the economy will do just that? >> we are a base case scenario for 2014 the growth will be seen. the path for two years. something close to two and a half to 3%. i don't think it will accelerate beyond that. while there are a number of factors, the improvement of the job market, higher household wealth. one factor which is still working with the recovery is higher wages. it's harder to see spend and accelerate dramatically from here. >> david, what

the week, jackie calmes of the "new york times," michael fletcher of "the washington post," and david wessel of "the wall street journal." >> award-winning reporting and analysis covering history as it happens. live, from our nation's capitol, this is "washington week" with gwen ifill. corporate funding for "washington week" is provided by -- we know inw-up, cyber world, threats are always evolving. we were protecting networks, then we were protecting the transfer of data, today, it's evolved to , finance, and military missions. constantly innovating to advance the front line in the cyber battle wherever it takes us. of performance. northrop grumman. additional corporate funding for "washington week" is provided by prudential. providedl funding is annenbergndation foundation, corporation for broadcasting and contributions to your pbs station from viewers like you. thank you. once again, live from gwenngton, moderator ifill. gwen: good evening, as you know, tonightd is in mourning for nelson mandela, the southan passed away this week. in washington, the week's other been on the economy, good

also joining us is david wessel, "the wall street journal," and david, for readers of "the wall street journal," david also needs no introduction. he's been with the journal for 30 years, and the capital columnist for ten, david? ten or so. he's written a best selling book, as you've heard, "in fed we trust." did you go with the whole title of that, david? the whole title is interesting, in fact, "in fed we bernanke's great war of 2009." thank you very much for both joining us today and look forward to this. thanks, david. >> thank you very much and thanks for doing this. i thought what we might do here is reflect a little on the lessons of history that liaquat and simon discussed, that influenced you while you were in the midst of avoiding the great depression, or likely you avoided two-thirds of it. but i be at the federal reserve. you got your ph.d. at the university of michigan in 1970 when a lot of people were wearing long hair, smoking dope and protesting the vietnam war. you ended up at federal reserve bank of kansas city. >> where no one was wearing long hair, smoking dope and