Words investors obsessing over patient, from its socalled policy statement. Thats the explanation and outlook the fed gives at the end of its monetary meeting. Will the fed become impatient . You heard her say no not so in deciding when to raise Interest Rates, quite the contrary said chair yellin. Said the fed will remain cautious and focused on Economic Data and some of that data said the fed indicates the pace of Economic Growth in the u. S. Has moderated lately and that launched stocks like an f18 off a carrier deck. Rose 227 points. Close above 18,000 trading in a 1400 point range. Nasdaq gained 45. S p 500 tacked on 25. The yield on the 10year bond fell back below 2 . And one of the biggest moves was in the currency market as the dollar slumped and the euro jumped. Two reports tonight. Bob pisani on the markets. Sharp reaction from the New York Stock Exchange but first, Hampton Pearson has more on what some are calling the Federal Reserves most important policy decision in years. Reporter Federal Reserve chair janet yellin and fellow Monetary Policy makers appear ready to open the door to a rate increase later this year. But they also appear to be in no rush to do so. Just because we remove the word patient from the statement doesnt mean were going to be impatient. Reporter the fed chair rules out a rate hike at the end of the april meeting. Economic Data Tracking further improvement of the job market and higher inflation appr to be the most sensitive rate hike triggers but the fed chair acknowledged slower Economic Growth and downward pressure from the strong makes a strong case for waiting. Just as we dont want to be pre in tightening policy and aborting a recovery that we have worked long and hard to proceed as far as it has, we also dont want to be behind t curve and beginning to tighten given those. Reporter markets rally based on the notion of late increase they use further off in what many traders had assumed. We can debate june or september, but its this year. Remember rates are zero. Our economy got to a zero fed funds because we had an emergency, the emergency is long since passed. The fed needs to get rates where they belong. Reporter what we got today was a small step towards what will eventually be the new normal for Interest Rates. But the exact timing as to when liftoff returns remains anyones guess. For nightly businesn the fed did it again. The markets were terrifying at the prospect the fed would remove this patient phrase. The fed did exactly that and yet, stocks fa of the year. Dow industrial down 150 points going into the fed meeting at 2 p. M. Eastern but the next hour and a half it raled at about 400 points. In the bond market 10 year bond yields saw one of the biggest declines of the year roughly from 1. 03 to 1. 9 . Thats huge. Interest rates for yields rally dramatically with gains in utilities and telecoms and home builders. M not done. Lower rates caused the dollar to drop dramatically particularly against the euro. Commodities like oil and gold rally as did commodity stocks like energy and metals. What happened . Despite yellins comments that the fed could raise at any time believe the fed is once again pushing the day of rate hikes farther down the road. Looks like the markets read the dovishness and heard, no rate hikes this year. We heard what you said but no rate hikes. Reporter its not good for banks by making money by short and long. Bank of america and key corps ended down on the day. Im bob pisani at the New York Stock Exchange. Randy crawford joining us. A former fed governor and now professor of economics at the university of chicagos booth school of business. Welcome back randy. Nice to have you here. Great to be here. Lets start first of all with something i found kind of in the statement and the q and a session. The fed feels as though the economies has kind of backtracked a little bit. No inflation and still worried about the labor market and those who want to work more but cant find those jobs. Did that surprise you as well or not . It didnt surprise me because the, i think the chair isnt really clear we made progress in the labor market but if you look at the broader labor market indicators not just the Unemployment Rate and they kind of took out the emphasis on the Unemployment Rate a while ago from the statement, it doesnt look quite as robust. If you look at the number of people who would prefer to be fulltime and are only parttime employed thats over 6 million. If you look at the number of people who havent looked for a job recently but have looked sometime in the last year or would like to be employed thats another 2 million. Theres still a lot of slack in the labor market as far as the fed is concerned. The wall street journal today said the fed opened doors but reluctant to walk through it. Why do you think that . Well i think exactly as you had in the quotation from janet yellin when i was at the fed and when janet was at the fed, we were working long and hard and certainly, they have boricworked very hard since i left the fed in 2009 to make sure i didnt have a repeat of the recession. Cut off the green chutes before they take root. There were those who said maybe the fed lost credibility because the last news conferen that mhz yellin held she seemed to indicate the rates would go up in the next few meetings. Has she lost credibility . It seems like shes backtracking. I didnt take that from the Previous Press conference. I took that it was going to be datadependent. Theyll see where inflation and growth are. And one of the developments that weve seen is a little bit Slower Growth or robustness in the economy. And certainly, the inflation rate has been moving downwards rather than upwards. And the fed doesnt want deflation to come back. No they do not. And so the question then becomes, you have the dollar until today moving higher against the euro. Youre effectively sort of importing this inflation or deflation, if you want to take it to that. How do you spark inflation randy . So they want some inflation but not too much. Gold locks. Try to get the balance just right. We start to see inflation kind of moving downwards. Certainly, we dont want to see slip into deflation territory. So they want to see a bit more robustness in the job market. That would likely to be leading to greater wage growth. You dont want that to go too far. Janet yellin talked about that. She doesnt want to be behind the curve. Inflation hasnt moved. They try to get the balance right but its really about data and not about particular dates. There are those who think the dollar did have a big influence on the fed but Central Banks around the world are actually easing and the fed is standing pat, how does that weaken the dollar . Doesnt seem to. Many think it will continue on its upward path. It depends on these countries. Now theyre facing deflation. Sort of take some leaves of the feds play book in 2008 and 2009 to cut rates close to zero or in some cases, make them negative to undertake quantitative easing and the fed realizes the rest of the world may need the kind of support now that the fed had given to the u. S. Economy in 2008 2009. Randy, thank you very much. Pleasure to see you again. Randy with chicagos booth school of business. A case in point of what randy was talking about, in europe swedens central bank slashed Interest Rate deeper into negative territory. Expanded the Bond Buying Program to stem the rise in currencies. Swooed and central bank just one of several in europe measured to fit low inflation. The organization for Economic Cooperation and development is warning global economies from relying too much on Monetary Policy to support growth. The oecds chief economist said overreliance on Central Banks could exacerbate risk taking and endanger the stability of the financial system. I think there has been an overreliance on Monetary Policy. We understand why the Central Banks have moved the way they have or the way theyre going to to but that cant be the only policy were looking for. A sense of certainty about what the fiscal path is going to be. Theres been uncertainty about that. Said the outlooks for the World Economy improved especially in europe as the euro depreciates. Mario draghi authorized the ecb building in germany today but the ceremony was met with protests that he rupterupted into riots, the measures imposed by the ecb. Annette. Reporter in frankfurt on the streets. [ chanting ] reporter more than 10,000 people took to streets here and had clashes with the police. They were protecting of course against the austerity policy of the e krrk bcb many live in poverty because of the policies of the ecb advocating. Bottom line from the day is that we had more than 80 people injured from the police. Many burning across town and there is part of the town where essentially blocked by the police. People living and working in frankfurt were actually asked to stay at home and not to go to their workplace because it w for nightly business report, annette avisa in frankfurt. The u. S. Reserve policy statement. The commodity was lower when inventory showed another massive buildup with record highs for the tenth week in a row. With the dollar tumbling after the policy statement, oil prices rallied with crude settling up almost 3 . Brent settled up by 4. 5 . And in mexico that countrys finance minister said sees the same slump in oil prices and the countrys public finances will face hurdles in the year ahead. Revenue from state oil company, p mac, accounts for a third of the federal budget. Drop in crude pushed the currency to record lows. Still ahead, fedex delivers a disappointing outlook but therre to the companys Earnings Report than m target is reportedly raising the minimum wage for all of its workers to 9 an hour. The move matches similar moves by walmart, Tjx Companies as well. As first reported by dow jones, the new wages go into effect next month. Fedex, the Worlds LargestCargo Airline trims the top range of the first year profit forecast citing the strong dollar. The company often considered a barometer of Economic Data because the better the economy, the more goods shipped. Shares dropped more than 1 on the week outlook. But as Morgan Brennan tells us the report may be better than it looks. Reporter santa was good to fedex. The parcel carriers earnings for the peak Holiday Season soared more than 50 . Trumping analysts expectations. Mild weather in ongoing restructuring in the air express segment contributed to the strong results but analysts said the biggest takeaway is package volumes continued to grow. Ecommerce, worldwide as far as domestic air freight started to grow. A very positive outlook on the overall economy. Reporter 4 more packages via express shipping. Grond volumes jumped 7 . This was likely the best christmas peak ever in terms of service for customers. But it wasnt all good news for the shipping giant. Revenue fell short of expectations and fuel surcharges for customer were lower and the strong dollar created a head wind. Sending shares lower, tightened full year guidance to a forecast that fell short of wall street expectations. Still, analysts remain bullish on the stocks. Especially in light of strong profit growth. We continue to be positive about fedex despite the drop in price today. Its just a minor adjustment. Its a company on pace to earnings by 30 plus percent this year. Should be able to grow 20 something percent next year. Its selling for slightly below market multiple. I dont know where else i could 20 Earnings Growth on top of 30 Earnings Growth. Reporter translates into more freight coming across the pacific into the United States via fedex. Experts keep an eye on oil, whether it will continue to boost earnings. Also the success of dimensional weight pricing. A new size plus weight that rules out in january. For nightly business report, im mo a legal victory for herbalife is where we begin tonights market focus. Herbalife won the dismissal of a lawsuit related to claims that the company is in an illegal pyramid scheme. Shareholders did not show the makers of the weight loss and Nutritional Products did not misframe by representing itself as a legitimate company. 76. 76. General mills, earnings did fall on restructuring charges and as the stronger dollar hurt revenue, the maker of cheerios saying it completed the previously announced plan for positions. Shares 1. 5 higher. Investors reacting to news that kraft is recalling about 6. 5 million boxes of kraft mack and cheese 6 in my kitchen because some packages possibly contain pieces of metal. The food company has received customer complaints. No injuries happily reported. For more information on the recall, head to nbr. Com. Microsemi, the test conduct tr for407 million. This and other chip makers have merged. Driving consolidation in the industry. Micro semi soared almos 40 but worth noting it is a small cap stock. William sonoma, in line with consensus bu the retailer gave weak guidance partly to blame on the west coast ports. Hiked to 35 cents a share. Shares lower initially in after hours trading. Before the close, the stock was off about 3. 5 to 80. 96. And javl circuit that makes phone casings for apple, a 20 rise in rev nuf helped by strong iphone sales. The stock popped initially. Before the close, up a penny to 22. 65. Coming up starbucks takes a bold step into race relations, tying its brand directly to that hot button issue. Well discuss the risks to business and brand with a top market a quick look at what to watch tomorrow as janet yellin said today, the feds policy needs to be datadependent and thursday will bring a fresh read on the jobs market with a weekly jobless claims report. Retail giant nike will announce its earnings after the market closes and investors will get a chance to se its first day trading as a do starbucks is going more than brewing up coffee. At its annual meeting today, the ceo announced a 2 for 1 stock split and test Delivery Service but the initiative that has everybody talking about is the race together campaign. The coffee chain is encouraging baristas to get customers talking about race relations. Shares at starbucks up 1. 5 . Race together is to stimulate conversation but is it Smart Business . Jane wells reports fro reporter starbucks always puts on a good show for its investors but this years annual meeting seemed to show the company less about coffee more about change. This meeting is going to be a little bit different because we are going to tackle a subject that is making its rounds throughout america and tearing up so many lives and so many people and so many families. Reporter the subject is race and starbucks hopes to get people talking about it by encouraging baristas to write, race together on coffee cups. The social media backlash was brulgt with tweets like breaking all will serve atop a high horse but shareholders began lining up before dawn like the concept. Starbucks seems to promote, you know socially progressive things and i think thats a terrific thing. Im mixed on that. I dont know how baristas are going to have time to have conversations. Reporte customers outside the very first starbucks in seattle were also supportive. Mostly. I think its a good idea. I dont know how much you can have in a short period of time while waiting to get coffee. Reporter would it make you uncomfortable for someone to engage in a conversation about it . Not really. Depends on if i have the time to engage. Religion race dont talk. Just walk out. Reporter two for one stock split, new delivery e in new york and seattle later this year. A salute to veterans but a good portion set aside to discuss the rates initiative which is voluntary. Workers do not have to do it. But many want to. It puts into words how i feel. Reporter a new kind of coffee talk while whipping up lattes. Theres always time to make that extra effort and have those conversations. Multitasking. The bottom half of your body thats doing all this stuff and then your head is thinking. So i mean reporter solving the worlds problems. Yes, making coffee and solving problems. Day in the life right . Reporter starbucks will soon find out if starbucks customers drink it up. Jane wells, seattle. Our guest, dean kruch field, said the campaign is a positive for the brand. Hes Senior Vice President at sterling brand. The brand consul tan si in new york city. Welcome. Good to see you. Its positive for the brand, id love you to explain why and what do you see the risks inherent in spurring conversation in their cafe cafe . I think the successful brands are about clarity and a true difference in how they position and communicate themselves to the market and customers and starbucks has done an amazing thing today. And they knew they would get a lot of negativity initially but its important to put best foot forward. Government and institutions potentially failed why not can they actively target this conversation . What about the risks though . As tyler mentioned, there are risks. I suppose if this is successful and he does get the conversation going, i mean thats a huge leap forward. But what if that doesnt happen . I think, you know do or dont do. There is no try. This is a very big subject starbucks has taken on. Lets think about it. It was one of the first to talk about gay rights and marriage. Why not talk about race . I think that its very do and why i should believe in you. This is very perfect or bang on starbucks brand. You get a real sense of the personality. Products relevd extra reas to buy the coffee but believe in starbucks just as a brand. It might give you an extra reason to buy the coffee but i can well imagine it might give some people pause who dont want to be engaged or evangelized or choose your descriptor there, when theyre going to buy a latte and get out. Not everybody is going to be talked to by the barista. Theyre obviously going to kind of see whether theres a potential for a conversation. I dont think its going to be constant or consistent. Its going to be happening during the course of the day but not every customer will be asked. Not every customer involved. They might just want to get their coffee and go. But were better to have a discussion about a hot topic. He said in his statement that he doesnt want to point fingers or place blame. Because staying silent is not who we are. And it struck me when we had our afternoon evening, maybe hes partly succeeded because its what everybody is talking about already today. Any publicity is good publicity. For a subject like this who could really defend someone not tackling this subject . Such a big issue in america right now. I think you would be foolish to pew it. You might not be into having a conversation but i cant see why youd say dont do it. Thats my take. Are there legal risks here at all, dean that you can see that people might feel harassed or singled out because of their race for conversation or engagement . Well, litigation is a 258 billion market in america. This is a country that will go after something if theres that opportunity, if someone feels discriminated against or embarrassed, these situations might occur or might be movers from some baristas who dont want to be involved. Who knows but this is a business thats very sophisticated, it knows what its doing. It has powerful agency partners. It must have discussed with the pr. They knew they would get a lot of negativity. Failing to prepare is failing to prepare and this is a case where i believe starbucks is prepared has organized itself and i believe this will be a major impact for their brand and bids. Thank you very much dean. Dean kruchfield with sterling brand. An update in seattle on a story we told you about last night. Decided not to block part of the minimum wage law. Raises seattle minimum wage to 15 per hour. More quickly for Big Companies than smaller ones. International Franchise Association said it should be considered a Small Business not a large one, even though it is part of a bigger network. That does it for us on nightly business report. Im sue herera. Thanks for joining us. And im tyler mathisen. Thank you from me as well. Have a great evening everybody. Well see yo roll up, roll up. For professor terdinnicks most marvelous tempestulator for the failsafe prognosticating of the weather laura once a year, the fair came to candleford green. What wondrous sights and sounds. There were hay bail races and high jumps and dipping heads in tubs of water to retrieve apples with the teeth. And then there was the contest of contests the great shinkicking tournament a test of strength and speed courage and skill. And the winner was crowned champion and carried through the streets in glory. And the prettiest girl was named queen at the fair. It never rained when the fair came to town. It seemed to bring only sunshine and laughter. And great good fortune. I won a pig