tom: gary stern with us on television and radio worldwide, a former president of the minneapolis fed.ou took your phd at rice university, one of our great games there universities. it got great respect for thinking through games and systems. janet yellen did yesterday became very of avoiding maximum loss? is that what she did yesterday? dr. stern: that is an interesting way to think about it. grander terme a than appropriate. but i can think of it as loss minimization. i think that is right. there is no urgency for the fed to act now. the other side of the queen is if they wait until there is really urgency, they will have -- the other side of the coin is if they wait until there is real urgency, they will have waited too long. the other thing is it is always difficult anytime you want to change the direction of policy, the timing is always a challenging issue. i worked for the fed in excess of 30 years. and i can tell you that timing question is always a challenge. fortunately, the fed does not have to get it precisely correct. the fed has to avoid big errors. it does not have to get

with blackrock's rick reider and former fed president gary stern.ou're watching cnbc, first in business worldwide. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. announcer: babies who are talked to from the time they're born.. are more likely to have a successful future. talking and reading to children in their first years has a huge impact on what they do with the rest of their lives. the fewer words they hear, the greater their chances of dropping out of school and getting into trouble. talk. read. sing. your words have the power to shape their world. learn more at first5california.com/parents ♪ >>> welcome back. tomorrow is d-day. decision day for the federal reserve on whether or not to raise interest rates. jim grant is the editor of grant's interest rate observer and he joins me now exclusively. jim, are they going to do it? >> yes. >> you think they are. >> i th

let's bring in two fed inside sneers former if he had governor randy kroshner and gary stern. >> good afternoon. >> both of you, you've been in the meeting room, you know how to works. are they playing offense or defense? what did you make, gary, of the result today? >> well, first of all, i wasn't surprised and i can give you a variety of reasons. starting with the fact that the fed is a very conservative organization. so you're looking at a situation where the markets have been volatile, the economic outlook abroad not domestically but a brord has been deteriorating they haven't achieved their inflation target. you add all that up and it seems pretty easy for them just to continue on the course they have been on. whether that's the right decision is another matter and personally i would have favored a move at this point, but i'm not in the room anymore and so that's the way it goes. >> but we would like to focus on the right decision, randy. do you also think they should have raised rates today? >> i think one of the things they were looking at is they were looking at the softening

.- guests gary stern is the former president of the minneapolis fed and is opinionated.perspective on the domestic drama that we saw from janet yellen. in the markets the futures are -17. they'll futures, -140. this is bloomberg "surveillance." ♪ tom: good morning. bloomberg "surveillance." i am tom keene. what a week and it has been. there is an equity market. can you believe it? shares of adobe are falling. the company's fourth-quarter 3%.s is down they did add more subscribers, but we are seeing the trend. tom: cloud is tough. interestinghas been to watch adobe go through the transition of selling software to encouraging people to rent it online. vonnie: it will be interesting to see what the forecast is. whether they improve as the quarter's move ahead. brendan: i understand why it makes sense for their bottom line. it is a good thing to rent. as a consumer, i'm not sold on what they are offering. tonie: another ramification the drop in oil and natural gas prices. . 5% drop shareholders have authorized the board for a reverse stock split. newthis is listed on the yor