Longer run objective, large a largely reflecting declines Energy Prices. Inflation compensation measures have declined. Surveybased measures of longterm Inflation Expectations have remained stable. Like a lot to say inflation is anticipated to decline further in the near term. The committee expects inflation to rise gradually toward 2 over the mediumterm as the labor market moves forward and transitory affect dissipate. The committee continues to monitor inflation of elements closely. As a factor in everything they are looking in their assessment will take in a wide range of information including measures of labor Market Conditions indications of inflation pressures, and Inflation Expectations and new language reading on international and national development. The Committee Judges it can be patient and began to normalize the stance of monetary policy, repeating the line from the december meeting and dropping the previous language about considerable time, as expected. The vote was unanimous. They are more bullish on the u. S. Economy. They see low inflation on their radar as a worry, but they still expected to move up to the 2 target, but they are looking at new factors. We will have to see how the market reads this latest statement. Washington correspondent peter cook, thank you. George me this afternoon your, John Herrmann director of interestrate strategist at usb securities. Diane swonk from the zero from mesirow financial, and scarlet fu. Scarlett, we are seeing a move higher. Stocks were gaining ahead of this announcement and they continue to gain on those advances. You can see here this is the s p 500, the dow, and the nasdaq. This is when the fed announcement came out. We had a Straight Line up as the fed says policy assessments will weigh international assessments, presumably meaning they will be more dovish given the turmoil we see in your. We are conduct europe. We have come down a little after that pop, but it is in a narrow range. In terms of the 10year yield, this is the intraday movement of the 10year yield. They were at their session lows and they got a lift, which means there was some selling of treasuries. All right, scarlet fu, the breaking news desk. Let me go back to peter cook in washington. You were giving us the breaking news about the fed statement. Something that jumped out at me you noticed the vote was unanimous. Is dr. Yellen using her powers of persuasion to develop consensus on this fed . I am sure she has not been hurt by the fact that the rotation of the Federal ReserveRegional Bank president the three dissenters from last month are no longer voters, so that helps around the table. The fact that they are all on the same page as we begin the new year is a strong symbol that there is not a tremendous amount of dissension within the ranks of the voting members of the fomc. That is critical. Maybe Janet Yellens position is not only the predominant position, but there is some unanimity around the table. There is a lot to digest. They are feeling good about the u. S. Economy. There is improvement there. There are watching inflation. There are reasons to be patient. Perhaps more patient than markets first thought. Doesnt we are moving cap does it mean we are hoping past june question mark you could take information and subscribed to both of those ideas. Diane swonk in chicago, is june a lock because of the strength we see in the u. S. Economy . I do not think june is a lock at all. I had stayed on september, and i do not think you will get much lift off. It had unanimous votes because it had everything but the kitchen sink. It acknowledged the economy was strong in the second half of the year with solid growth. That is one of the stronger verbs they have used to describe the economy. Also talked about inflation wages not being as strong as they could be. There really was everything for everybody in this statement. It was a more encompassing statement, and instead of waiting for the minutes, we got the concern the fed is hedging downtown downturn risks. Acknowledgments about uncertainty is front and center. You got unanimous because you had everything but the kitchen sink in the statement, and you had flexibility within the statement that nobody has to move anywhere anytime soon, or if conditions change, they could. They got everything they want right now. John herrmann if the fed does look past inflation and focuses on Interest Rates later this year, would that be the right strategy . That will be a big question mark. What diane is pointing out we all know it. We have built in negative inflation the next three or four months. What is critical is what is the trajectory for core inflation . We think there is a chance core inflation grinds lower over the next six to eight months. How much lower . More consistently, below the 1. 5 growth rate. You drift away from the 2 target. Wages we will have to watch which is closely on the friday number. Just watch all of these things. We owned a forecast for a long time that the Unemployment Rate would come down superfast, but we are the first to admit that over 55 of the decline is due to structural problems in the labor market so the fed really cannot be happy with these kinds of things, and it calls into question where is this number maybe it is within the 4 reading not the 5. 2 . Diane swonk, the strongest growth in the United States in 15 years, but growth in europe is weak. Well ahead would will the headwinds make their way here . The question is the strong dollar. It is starting to show its way through. That is a reduction in pricing power. I agree, core inflation could go down toward 1 . That is a full percent below what the fed would like. They are going to need some need to see some firming to get through the oil, although i do not think any to raise rates up to 2 , though some of the fed would like to see that. They will do lift off before we get to 2 as an anticipation but this makes it difficult, and wake celebration is another place when you have a strong dollar, it is harder on profits. This is something the fed will have to watch closely, and it puts them into reaction mode. They do not want to look to preemptive with the rest of the world easing further. I echo some of those ideas. This year will be a little trickier. It is not a straightforward slamdont year. There are a lot of moving parts. You do not want to jump into sin. Two soon. I think it is going to be a little trickier on the call on the economy than people are suggesting and we still have decent growth built and, decent built in, decent job growth that kind of stuff, but at the end of the day we need to see firmer signals from wages. I would strongly prefer to see a leveling off of the Participation Rate in the labor market. That just does not seem like it is going to happen anytime soon. Scarlet fu, you have been watching the movement in oil down nearly 4 right now. Down nearly 4 , and we are at the intraday lows. 44. 44 was the low we had reached a couple of weeks ago and we have match that with the fed announcement. Lets show you the crv index it measures commodities overall. Here is the backdrop for the decisions. Before the december 17 fomc meeting, the crv was at 2. 38 right about here. Today it is at about 2. 15, the lowest since march of 2009. When they talk about how the fed is gradually seen inflation moderate toward the 2 target you cannot help but look at the deep drop in Commodity Prices overall. In line with this stuff, back when we began to be worried about inflation August September of this year at that point we sent the 30year bond yield could grind below 3 and stay there. One month or so ago, we felt more confident in that view and we said if the 30 year bond yield it could get to 2. 5 . There is a chance they could grind lower from where they are now. I think the bond market is telling you something. It is not just a flight to safety. It is not just the feds manipulation of the backend of the yield curve. There are investor concerns reflected in these lower yields. Diane swonk you mentioned the dollar a few moments ago. We are seeing the strong dollar, and that is impacting profits and Investment Strategies of u. S. Businesses. Are they in danger of erasing the gains they made in 2014 because of this . In terms of profits, we had slow Profit Growth in 2015 because of the dollar about 40 of National Public we Companies Get profits from abroad. On the flipside, where we will be surprised, if we do not get some crazy thing out of russia, which is a possibility europe benefits more from Lower Oil Prices and their currency movements more than we do, so the ecb could get credit from the stabilization and a strong dollar for us, that does a road pricing power, and although we have minimum wages going up january 1 and 29 of the 50 states are pushing that up, that is not what the fed wants to see. They think we need 3 wage growth to get to 2 inflation. I do not think we will see that this year. The other point that was made about the natural rate of unemployment drifting below 5 there are some that do believe it is below the 5 threshold because of the structural problems in the labor market, and proof is in the pudding. People are saying you cannot get workers pay for them. If you really want a worker, you can pay up for them, and they are not. Diane swonk in chicago, John Herrmann in new york, as is scarlet fu. Peter cook is in washington. We will be back with more roundtable discussion on the fed on the fed and the overall economy when this special edition of bottom line on Bloomberg Television continues in just a moment. Welcome back. It is 15 minutes past the hour. Lets check world news word from Standard Poors that greeces Credit Rating might be cut as the greek Prime MinisterAlexis Tsipra has his first crisis after a few days enough. Greek bonds are falling, and so is the stock market. Alexis tsipra plans to avoid a standoff with european creditors. He says he will not be forgiven if he betrays his promise to renegotiate the greek bailout. Israel has responded to a dental week hezbollah deadly hezbollah attack by firing shells into lebanon. It is the groups deadliest attack against israel since 2000 experienced spanish peacekeeper in southern lebanon was also killed in the border violence. Officials in jordan may be ready to meet the demands of the Islamic State group that has been holding a captured jordanian pilot since december. Jordan is reportedly ready to release a female iraqi prisoner who was involved in deadly hotel bombings one year ago, but there is no 10 years ago. There is no mention of japanese hostages. Lets get back to the roundtable. Joining us, John Herrmann here in new york, and in chicago, diane swonk, chief economist at mesirow financial. Also with wall street reaction, chief market correspondent scarlet fu. Thank you all for staying. John, the fed and the speed or lack thereof in which they will make this decision of when to raise Interest Rates the consensus seems to be sometime this summer, but the economy by all measures seems to be picking up strength. Inflation is still below 2 . Will that change the feds calculus . I think a little bit. The u. S. Economy is the most resilient in the world. That all does suggest normalization of rate over the next couple of years. We highlighted some of the years that suggest they might go more slow, retro, that kind of thing, but let me point out something on overseas one of my clients is a top trader at a central bank in europe. He said the biggest thing he is worried about this coming year, 2015, was the syriza party in greece and the party in spain. That is what we have to put on the radar screens this coming year Political Uncertainty in europe, volatility, concerns about the greek exit, all of this stuff. It will be a challenging, uneven here. Year. Quite diane swonk diane swonks, the fed assessment does it have to do more with the sluggish growth in china russias weakening economy . The fed also wants to be accurate about what they are talking about in the second half of 2014 does look like taking up the Second Quarter, which was a snap back from the First Quarter with the polar vortex the second half of 2014 looks at the strongest six months in 2003 since 1999. We had fundamental growth. It is a statement of what the reality is that there was growth, but the problem is what will growth be. I think growth will be good this year cracking 3 easily, the strongest year in a decade for overall growth. We are moving in fits and starts, and we are risk risk on investment is certainly there. The durable goods data was miserable yesterday. I think they have to acknowledge that. This statement had, like i said everything but the kitchen sink. It was seen as an update upbeat statement on what the economy has done, but the economy has done better, and the question is what will it do and what will inflation the . As diane is pointing out, we had this uneven period of growth, but we ended the Fourth Quarter with disappointing retail sales in capital spending. Were not getting the evenness that we like to see and that we all count on, especially those of us that have been in the business for couple of decades. Just a couple of decades. More than a couple of us couple for some of us. Scarlet fu, what are you seeing . When you look at the dollar against the yen, you can see the dollar weakened to it session low. It is making a recovery, but it is within a narrow trading band that we have seen all day. Over a longer term period say five years, it is still a strong dollar versus yen story. I cannot help but think that as you compare with the central bank is doing here in the United States versus what the bank of japan is doing, peoples bank of china is expected to do in a couple of months, there is a huge divergence that move in opposite directions. John herrmann how much upward pressure does the ecb strategy put on the dollar at this time . I think it did a lot. People did not move up expectations for European Growth and performance we saw a big surge, for example, in the dax and we saw yields plunging in the euro zone. Even today, overnight, we saw a very disappointing participation in bond auctions in germany, so, what it suggests is investors are moving into equities. For example, in germany, they are moving away from there, you know, sovereign debt. We also see some flows into the u. S. Bond market, and that is appreciating the value of the dollar. All right, John Herrmann diane swonk in chicago, my colleague scarlet fu. Thank you all so much. We appreciate it. We will check the other top stories when bottom line on Bloomberg Television continues in just a moment. First. Bloomberg. Welcome back. This is bottom line on Bloomberg Television, streaming on your tablet phone and bloomberg. Com. I am mark crumpton. New england is digging out from the blizzard that dumped more than two feet of snow on boston. 70 mileperhour wind was reported in nantucket where virtually every resident lost power yesterday. The Public Transit system is running today and flights have begun arriving at the logan airport. Shares of apple are surging after the Company Reported a record setting 18 billion profit. Credit goes to the new bigger iphone. They sold 75 million of them in three months. The burger chain shake shack is being valued at 65 six and 75 million. The ipo is expected tomorrow. That is a look at the top stories we are following. Coming up, College Admissions racket we will have details on how some schools do it, and what students can do to avoid it. Stay with us. Bottom line on Bloomberg Television continues in just a moment. Welcome back to the second halfhour of bottom line on Bloomberg Television. I am mark crumpton. Thank you for staying with us. The u. S. Federal reserve maintain its pledge to be patient on Interest Rates, and boosted its assessment of the u. S. Economy and the labor market, even as it expects inflation to decline further. Lets show you how the equity markets are reacting. The s p 500 is down nearly. 4 at 2012. The Dow Jones Industrial average is falling as well at this hour down fractionally at 17,347. The nasdaq composite impact is showing strength, just like me up two points right now at 4683. It is time for the commodities report. Su keenan is in the newsroom with details. We see oil moving to its lowest after the fed decision dropped. It drop another percentage coming off of its rate. It was already down more than 3 . This was already a drop. The fuel supply rose to the highest in three decades. Check it out right across the board. Gasoline futures erased earlier gains. The big picture we see with the latest supply report from the government is that there was a buildup of more than 9 million almost a ninemillionbarrel gain last week and they were practically choking on this stuff, to quote one analyst. Oil started picking up steam as a big decline or. Old was down ahead of the fed decision. These are trader positions. It is now off of its low of the day. It did not help that goldman came out with a call that commodities, pretty much, are the worst for what they see nearterm. We see push back on presi