nela richardson, senior economist with bloomberg. well, with $85 billion a month to $75 billion. $10 billion is by anybody's measure still a lot of money. is this a big deal, nela richardson? >> it is a big deal because they pushed a button. it's a start. it's a start that signals two things. one, that we're going to have low interest rates for a very long time as part of the federal reserve guidance. and secondly the feds think the economy is improving. that's significant after years of being sluggish, after years of treading water we might see some growth next year. that's a big deal, and that's what gets markets excited. that i think is why you saw such a strong positive explosive market reaction to this taper decision. >> well mark, what happens when $10 billion comes in rely bly month after month. is there going to be a difference. >> instead of buying $85 billion a month, they're not going to be buying $75 billion, but we don't know what is going to happen on the supply side. is the government going to issue as many treasuries? is fanny and freddy going to issue as much debt. if that reduces, then you won't see an impact. you will see a small impact on rates. and basis points are 100th of a point. so in the cost of mortgage or in across the economy. it will be noticeable to emphasize something that nela said. it's less the size than a signal in the change of confidence in the economy. >> at the beginning critics of the policy said this is terrible because this is the worse abuse of fiat money. money that you talk into being, but then it didn't get lent out. it didn't go out flooding the economy. it got held in closets somewhere. if it's not being issued. it's not written into being, will it make a difference? >> the question is will it make a difference on the positive side or the critic side. . critics said it would lead to run away inflation. but that has not been the fact. and it gave a little bit of pause about today's decision. but in terms of what mark is saying , what the effect will be and where is it going to go? the fed has been adding stimulus to the economy ever since the crisis started. this is the first time they have taken a step back from adding stimulus. that's a significant event. whether or not the $10 million will make a difference, that's a testament of the feds

pedro who covers knicks in the central bank for the wall street journal, and nela richardson with bloomberg government. nelajanet yellen, i had to hedge my bets in the last segment there. she hasn't been confirmed, voted on, sworn yet, but by all accounts she's on her way in. said to be much more hawkish on getting the unemployment rate down than worrying about inflation. what does that mean in practical terms while the bank is also unwinding this long-term stimulus project? >> i think for the near term futureish it means that she has the freedom to really target unemployment as aggressively if she chooses as bernanke has in the past. she really can be data driven, deliberate, but look at a certain set of indicators, motivated by those as opposed to worrying about the specker of rising inflation. >> one of the ways that traditionally has been done is by lowering interest rates. they're practically at zero, it's not that like you can do more than that. >> there is the head wayne as we've been talking before the break. what you may see is a policy that goes forward, reverses, stops. the market may be queasy f