. >>> yellin speaks and the markets listen. and take off after the federal reserve said it would be patient about raising interest rates. >>> and historic overture. president obama said america will normalize relations with cuba reversing 50 years of u.s. policy and quite likely creating opportunities for business and investors. >>> ruble rebound. russian currency stabilizes after extraordinary measures from the central bank and finance ministry. we'll take you to moscow for the very latest. all that and more tonight on "nightly business report" for wednesday, december 17th. good evening, everyone. and welcome. susie gharib has the night off. >>> it was a day of major developments on multiple fronts and big swings up in the value of your stock holdings. the biggest, in fact, of the entire year. start with the electrifying news the u.s. will reverse 50 years of policy and restore diplomatic relations with cuba. russia seemed for a day to staunch the bleeding in its currency and top it all off with signals from the federal reserv

janet yellin and the federal market committee are seen taking it all the way until first quarter of 2018 to get to their end point for rates, a very low 3.2%. a tenth below what the market previously bou >> hey, how's it? >> reporter: the forecast comes amid rising optimism for the u.s. economy. the chance of a recession in the next year has fallen to the lowest level in the history of the survey. growth is estimated to pick up in 2015, all the way to 3% 2.4% this year. and lower oil prices should add more to that growth while reducing inflation. the outlook for inflation looks to be the real driver for that. that and european economic weakness which is now seen as the bigges economy. although there's good agreement on the path to policy, now looking to janet yellin and her press conference tomorrow for any hint of plunging oil prices and global economic weakness could alter the fed's course. for "nightly business report," i'm steve li >> and william lee joins us now to talk about what we may hear from the fed tomorrow and into 2015. he's head of north american economics at citi. mr. lee

we can thank janet yellin on that one. federal reserve says it will be patient when deciding when to racial interest rates. yellin says they will probably raise interest rates sometime next year but that the fed isn't convinced that the economy is strong enough just yet. investors like what they heard, ukee and erika. >> with just a week away from christmas but we hear the that the very popular gift for all of the people really like to wait until the final hour, final minute even. >> reporter: that is right, i will not name any names but it does look like those last minute shoppers out there will be stocking up on, star bucks. now the coffee giant expects to set a record for star bucks gift card purchases on december 24th. so, last year on christmas eve, star bucks sold more than 2 million gift cards, and that comes out to about 1500 minute, ukee and erika. >> 1500 a minute. >> wow, boy. >> yes. >> the line will be long. >> yes, it will. >> thanks, jill, see you later. >>> coming up next, traffic and wet are together, we w

janet yellin, time to ring the register. james in connecticut. james?caller: hello, jim. >> hey, james! >> caller: very sorry to hear about your dad. >> thank you. >> caller: my father taught me how to invest and all that good stuff. >> so did mine. >> caller: so i'm trying to do the same thing with my daughter. >> okay. >> caller: and i took your recommendation on linn energy back in june of 2013. >> right. >> caller: and what do i do now? >> remember, i sold linn. my charitable trust sold linn. we got in linn, battled it, and then we sold it and said that everybody should sell it, because we didn't like what was happening to their balance sheet. the stock went up today, because they made an asset sale and i think that it is going to be able to go up a little bit more, but you have to sell it. i battle -- we battled linn hard, stephen link and i, but we did not recommend it down here, and i can't recommend it down here. they screwed up. mark in wisconsin, please, mark? >> caller: jim, thanks for taking my call. i've got a two-part question about kinder

and the markets were seemingly happy with what yellin had to say, because when she spoke, the marketsbounced. in two days the dow jones industrial average gained 700 points, its best two-day rally since 2008. and the s&p jumped 2.4%. i want to explain what this means for the wealth and income gap in the u.s., and we know these are concerns of janet yellin. i will instead turn to you and ask you, what exactly did janet yellin mean by being patient, and why did the market react the way that it did? >> so what the guidance has been in the past is that there will be a considerable amount of time that interest rates will remain low. so she gave the market confidence that this won't happen any time soon. so this is -- she said in the next two meetings, there will unlikely be a change in policy. so the next two meetings are in january and in march, so this gives businesses time to do whatever they're doing now and more time to see the gains that they've seen and solidify the gains they've seen over the last two or three years. >> and why is it a good thing that interest rates are staying low

we wonder what janet yellin and other policy makers review this report. they have a meeting coming up pretty soon. what do you think? >> well, it's interesting today because even though we had a great report and the market priced in a higher probability of the fed raising rates in june, right now the market is discounting a 75% chance that we get a rate hike by the june meeting next year. so even with that expectation, the fact that stocks ended higher to me is really good news. will the fed take rates hike hooier in june? i think it's possible with a few more jobs number and wage continue to rise. if we get the jobs and inflation stays muted or eases further with the commodities, i think the fed's preference would be to go as slow as they can to ensure this economy is really self-sustaining. >> the fact that the market rose or at least the dow did rather strongly, does that suggest we have gotten past the point we're so worried about the speed and timing of a rate hike in the future? >> it definitely helps suggest that, tyler. i do think when we get to t

in a news conference, janet yellin said the statement used the word patient because it judged that some modification to its guidance is appropriate since the asset purchase program ended in october. she said the fed will not raise the rate until next april at the earliest. >> the committee considers it unlikely to begin the normalization process for at least the next couple of meetings. this assessment of course is data dependent. >> the board members also released their forecast for the future economy and interest rates. 15 of 17 policymakers expect rates to go up sometime next year. they estimate that rates will be raised more than once at policy board meetings to about 1.125% by the end of next year. investors on wall street took the fed's decision positively and bought stocks. the dow jones industrial average rose more than 300 points at one stage and showed the largest gain this year. the dow closed higher by more than 1.6%, the nasdaq surged more than 2%. market players were relieved that players would keep their rates at near zero for a considerable time. investors hope this will

we can thank janet yellin for that one.ederal reserve said it will be quote patient when deciding, when to raise interest rates. yellin says it will happen sometime next year but the fed is not convinced the economy is strong enough yet to raise rates. we will watch that closely. >> and jill, lots of folks watching the calendar just a week from christmas and we hear there is a popular gift for all of the people like to wait until the final hour, if you will. >> reporter: it looks like last minute shoppers will be stacking up on star bucks, coffee giant expects set a record for star bucks card purchases on december 24th. the last year on christmas eve star bucks, sold more than 2 million gift cards, and that is 1500 a minute if you are counting. ukee and erika, they do make great gifts. >> i will say. >> that is incredible. >> a lot of money. >> for more money tips and information from money watch.com just head to our web site at cbs philly.com. >>> now an "eyewitness news" exclusive, a woman from brigantine, new jersey fall

won't happen until june of next year but definitely investors will be watching every word from janet yellin today. >> i can imagine. >> some good news for anyone who is still waiting to buy their holiday gifts, amazon is extending free shipping deadline by one day. >> reporter: customers have until this friday, to buy gifts at the amazon and get them delivered for free, by christmas eve. if you want to leave it to the last minute amazon will be offering same day delivery, on christmas eve, in a dozen cities, including philadelphia. now they do recommend, if you are going to leave this to the last minute as in ten minutes before you are seeing your family you could send them a gift certificate and that can be spent via e-mail, everyone can read between the lines there, ukee and erika. >> we learn from you that people want the gifts, instead of the cold hearted cash. >> give people what they want. >> reporter: as long as it is not hard liquor, right. >> exactly because who want that. >> coming up after a short break traffic and weather together and we will do it on the >>> you can celebrate t

fed chair janet yellin hinted it will be closer to the middle of next year before the fed makes any moveow the economy is doing. that is what wall street wanted to hear. her comments snapped stocks out of a three-day losing streak. powerful woman right there. >>> now uber is trying to clean up its bad reputation. it has been at the center of scandals including allegations of drivers raping and assaulting passengers. now the company is working on new technology to monitor drivers and improving the background check practices. uber is setting up a rapid response team for emergencies. this is amazing to me. we have body cams on cops and possibly now car cameras for uber drivers. everybody will be watched closely. >> they have to break the streak of bad press. cristina alesci, thanks so much. >>> the historic agreement resumes a relationship with cuba. president obama really shocks so many people with that announcement. "new day" picks up the story now. >>> these 50 years have shown that isolation has not worked. >> there's much ingrained doubt and anger. >> this president is the single worst

i haven't heard a reason why yellin isn't selling the bonds? why hold them until maturity? why not provide them to the world who wants them. >> and you think they could effectively dispose of $4 trillion in bonds? >> absolutely. >> you do? >> yeah. >> that's a lot of money. we're still talking a lot of money. >> i want the yield curve to change. i don't think they can sell them at this price, but it would be terrific to raise the 30-year. why not? let's cool things off a little. >> you once said, they know nothing, in regards to the fed, and that was on the downside, you're not saying they know nothing now on the upside. >> this day is such it's very strong. maybe the affordable care act slows down things a bit. i don't think they're going to slow them that down. this is a very robust number. if you believe that oil bounces right back, boone pickens did bounce back right, you're going to say, wow, what i did was react to that momentary low. but i think that the fed has this great weapon, which is to sell its bonds, give a little inflection in the yield curve, that will help

with the hash tag fox 29 weekend and santa will answer their questions tomorrow morning i'm sheldon yellini started my career rebuilding homes for one family at a time. today, our companies help build something more. for 28 years, belfor has been restoring homes and businesses destroyed by fire, flood, or any disaster. and even though we've grown to over 6,000 dedicated people around the world, for me, it's still about helping one family or business at a time. at belfor, we're restoring more than property. >>> you are smarter than you look, girl. >> 6:44. frontier airlines is cleared for take off at philadelphia international airport. >> today is frontier's first flights, from philadelphia, to celebrate the company's giving away, one free round trip ticket, not just for the day, every hour from noon to midnight. >> that is 12:00. >> you are brilliant. >> i am it is on our facebook page. i don't follow them, maybe i should, sign up and friend them. >> yes, you could. that wouldn't be right though. >> why not? >> all right. >> caitlin. >> yes. >> you know, of course, in the past hour or two,

we'll check the fog cams, sue i'm sheldon yellin, and i started my career rebuilding homes for one family at a time. today, our companies help build something more. for 28 years, belfor has been restoring homes and businesses destroyed by fire, flood, or any disaster. and even though we've grown to over 6,000 dedicated people around the world, for me, it's still about helping one family or business at a time. at belfor, we're restoring more than property. >> rain is out of here, cold front following it, after today you can expect chillier temperatures that will feel a little bit more like december. and then we have this potential for nor'easter over the weekends t looks like we'll get a glancing blow from this one, and we will probably start out with a wintery mix as this thing passes along the coast. i think in a more inward track would be more trouble for us. but it doesn't look like that's the way things are going. wintery mix changing over to rain saturday, into sunday. so, ultimate doppler shows where the rain is right now. and in the case of new hampshire, little bit of snow. but it

federal reserve chair janet yellin closes the fire hose that pumped billion into the economy through buying program. that fed stimulus lasted six years with the final measures tapered down in 2014. the fed say it is labor and housing markets have improved, risks of inflation have diminished. the big question now, when will the fed start raising interest rates. >> number six. apple gets its umph back. a new line of products including record breaking sales of the iphone 6, new ipads, the apple watch and apple pen, they all -- and apple pay, they all refresh the company's product line. its stock price hits a record high in 2014 and apple's chief exec tim cook becomes the first openly gay ceo of a fortune 500 company. he wrote in an op ed "i'm proud to be gay, and i consider being gay among the greatest gifts god has given me." >> number five, jobs are back. the labor market hit two milestones in 2014, first the economy gained back all the jobs it lost during the recession. 8.7 million jobs. it took four long years to do it. second, 2014 marks the best year in job creation since 1999, av

janet yellin took over as first woman to head the federal reserve and the dow jones industrial averageouched new highs. the market finish in record territory. >> taylor swift shook up the music industry. >> ♪ >> after releasing her new album the pop star pulled all of her songs off have of spotify saying there should be a value on art. jill wagner, cbs news, new york. >>> all right. 6:42 right now. looking to renovate your kitchen count are tops, well, coming up next angie's list explains what is trending and useful ape is what a waste of money. >>> stopping for students, the the cast of a local performance group gives a lesson to teens in return for some goodwill. >>> a mild holiday so far but winter is making a come back when like it or not, carol has >>> welcome back. there is a lot coming up on cbs this morning saturday, anthony mason and vanita nair join us live from new york with the preview, good morning, guys. >> good morning, nicole this were hot holiday gifts this year but many new drone owners have not read their owners manual. we will look at why those first flights are in

when janet yellin speaks everybody here on wall street listens. >> you got good news for inn in stillfind holiday gifts. it looks like amazon is extending free shipping deadline by one day. >> that helps people. the customers have until this friday now you to buy gifts at amazon and get them delivered to free by christmas eve. if you really want to leave it to the last minute amazon will offer same day delivery, on christmas eve day, and in about a dozen cities and that includes philadelphia. they do recommend also if you want to be really last minute get a gift certificate and that can be sent via e-mail and as you guys mentioned before, a little cash never hurt anyone either. >> it is top of the list these days. >> yes. >> it is such an a easy gift. >> i don't like it. >> yeah. >> i know. >> i won't turn it down. >> i necessity that is right. >> no cash for me. >> thanks, jill. >>> we're used to seeing rain delays at baseball games but not basketball games. get to see unusual problem that delayed an nba game about a half an hour. >>> is this the future of shopping? why this store ha

. >>> yellin speaks and the markets listen. take off after the federal reserve said it would be patient about raising interest rates. >>> and historic overture. president obama said america will normalize relations with cuba reversing 50 years of u.s. policy and quite likely creating opportunities for business and investors. >>> ruble rebound. russian currency

federal chair janet yellin holds a conference after the meeting. that is live at 2:30 p.m.nd answer and we're featuring a one-time question and answer headed by leaders, thinkers and policymakers, from 2006, lonnie bunch, on the importance of the african-american experience to u.s. history, to 2007, robert novak, through years of reporting, and from 2009, conservative commentator, s. e. cub, question and answer at 10:00, at 7:30 p.m. eastern on c-span. >>> now, a house hearing on the effect of repealing the decades-old ban against exporting, u.s. production, while u.s. fuel consumption is declining. witnesses before the energy and commerce subcommittee include the administrator for the u.s. energy administration information and energy policy analysts, this is two hours and 20 minutes. >>> i would like to call the hearing to order this morning. and before we get into the subject of the hearing i would mention that this will be the last hearing of the 113th congress for the subcommittee. and i did want to recognize a number of members who are on the s subcommittee, and who ha

. >>> yellin speaks and the markets listen. and take off after the federal reserve said it would be patient about raising interest rates. >>> and historic overture. president obama said america will normalize relations with cuba reversing 50 years of u.s. policy and quite likely creating opportunities for business and investors. >>> ruble rebound. russian currency

way too low for janet yellin. labor participation rate is a problem people are saying. the more you chip away at that unemployment rate even with the issues surrounding the participation rate, the labor market is going to get tighter. wages will start picking up. guess what, that's going to lead to much faster consumer spendin spending. >> moody's has downgraded japan and put outlook at stable. ratings agency says the cut is down to uncertainty about japan's ability to cut fiscal deficit, effectiveness of growth measures. the yen hit a seven-year low. since then, it has recovered. would you put money into japan at this point? we haven't seen abe-nomics work. who says it will work in the next 16 months? >> seema, remember, you don't want to put money to work in an equity market when everything is perfect. things are still dicey. you did see capital expenditures number, very encouraging, which tells me the third quarter number in japan, gdp declining, that number will be revised higher. i would not even be shocked if we come very, very close to being on change on that gro

. >> one local girl, she's everything that she could to make sure her elf didn't lose i'm sheldon yellinicated people around the world, for me, it's still about helping one family or business at a time. at belfor, we're restoring more than property. or business at a time. ♪ ♪ we put all the apps you love inside a car designed to connect you to a world of possibilities. the connected car by volvo. innovating for you. give the gift of volvo this season and we'll give you your first month's payment on us. find options to fit your budget. nah, nah, insurance, nah, nah, nah, discount. my name's flo, you want to go out with me? no. uh-huh-huh! >>> y'all still wrapping gifts out there. >> yes, i think some people are this morning. >> did you know there is a proper way to wrap. >> okay. >> we make sure, and we can see if you can pass this test. >> okay. >> and we have great holiday music for you this christmas morning. a very special performance from the enan baptist tabernacle choir is on the way. >> they are always great. >> and did you have an elf on the shelf, at your house this season. >> y

it was interesting late in the week the attention turned to what janet yellin had to say in her commentaryabout when and if rates will rise in 2015. markets seem to focus on that and stocks nearly closed at session highs on friday. >> we are definitely taking cues from the central bank and from yellen, definitely the fed and more and more the ecb in the anticipation that q1 is going to be the point where we see quantitative easing. they indicate that they are going to reassess what measures have been put in place already to see if they work or they need to do more. and more and more the policymakers in europe are towing the line to say, guys, we need to do quantitative easing. >> we should call this the central bank easing. perhaps the market isn't focused enough on the fundamental data and that should be driving markets higher, not just what the fed says and what the ecb says. >> you don't want to fight the fed. and the trend is your friend until the end, my friend, right? so we've had certain trends that have been very much in place, one of them being the oil trade down over the last cou

however, for now at least i believe janet yellin has dodged a bullet. when she pulled back from qe3, europe has done her a big favor in essence. and helped keep interest rates down in this country to keep the market supported. >> but we have to point out that this is a dual mandate by the fed. the encouraging data out of the labor market, of course, is positive, but inflation still is well below the target. when do you think we could see inflation tick up next year for the u.s.? >> it's always difficult to say exactly when. i actually wrote in a newsletter to clients back in may of 2008, but i think there's some of greater chance we'll go into a deflation in their environment than an inflationary environment. with demand being reduced in new york for goods and services, in the united states of america, we have a whole generation of investors that has gotten bit twice by the stock market and once by the real estate market. and they have learned now to pay off debt and they need to save and invest money, which in part is helping to fuel the stock market.

will janet yellin be dubbish, that's what the bond market is suggesting. we have had yield compression in europe for an additional reason, that's the expectation of more easing at the next meeting of the ecb. 0.96% to tell the story there. and coming off the five-year highs on monday against the broader index. today bouncing back a bit against the euro, 20 basis points, 1.2434. it's been giving up ground against the yen to cross the 121 handle at the beginning of last week. now back to 118.6. not so much based around the election but coming off the highs as i said last week that it hit. the aussie dollar is flat despite a worsening trade deficit numbers and indeed the situation in sydney. what is coming up, seema? >>> coming up on the show, we'll focus on uber taxi drivers who are protesting against uber. we'll speak to the rival of uber in 30 minutes' time. >>> and u.s. shale boom project in jeopardy? we'll tell you all the e the tails. >>> and sony scrambles to play damage control demanding news outlets stop publishing leaked e-mails. that's coming up ne

i'm sheldon yellin, and i started my career rebuilding homes for one family at a time.oday, our companies help build something more. for 28 years, belfor has been restoring homes and businesses destroyed by fire, flood, or any disaster. and even though we've grown to over 6,000 dedicated people around the world, for me, it's still about helping one family or business at a time. at belfor, we're restoring more than property. >>> yes, they clash on to their ipad. >> yes. >> so sony is feeling the heat now to release the interview. >> let's bring in fox business network studio reporter lauren simonnetithis has been the big story for more than a week and theaters say there is some money to be made here. >> i say release it, what do you guys think. >> do you want to see the interview. >> there is so much talk bit, i don't know. >> i don't want to see it for the hype but i want to see if it is good. >> reporter: it is probably in the good but reason everybody wants to see it new because we're not stopping talking bit. latest news about this controversial film about the assass

yellin can control the margin rate. we haven't done anything with it.thing that she's in charge. take that margin rate up very big, get it so the market doesn't overheat. there's nothing the matter with doing that. but to take the fed funds rate up to 4%, create an inverted yield. in order to be able to satisfy all the people that are short. it's like, yeah, let's just run the whole market for the shorts. let's just go and do it. >> someone else was pointing out that the nasdaq went up 400% after inappropriate easing, because of foreign conditions in late 1998. >> well, that's absolutely true. >> we're not there. >> it's a casualty of the market. honestly, if you want to throw everybody in recession and have a gigantic year for hedge funds, terrific. that's never been my style. but you know what, maybe the hedge funds, there's 317 million americans. and there's, what, like 100 hedge funds that matter? maybe 100 versus 317, i'm going with the 317. raise the margin rates. it is up to the fed, the margin rates. that could really help. and also, let the ben