Purchases are not on a preset course. Contingentill remain on the Committee Outlook for the labor market and inflation for the success of the likely efficacy and cost of such purchases. With regard to the economy, some new language here since the last meeting. There are indications of growth and Economic Activity picking up in recent quarters. Labor market indicators showing further improvement. The Unemployment Rate declined but remains elevated. Household spending and Business Investments advanced more quickly in recent months while the recovery in the housing sector slowed somewhat. Market is having become more nearly balance, and then finally, i want to read you another section here. The same language we saw previously, maintaining that stance of the record low rates and highly accommodative stance of Monetary Policy. The committee continues to anticipate that it likely will be appropriate to maintain the current target range for the federal ones rate well past the time that Unemployment Rate lines below 6. Ive percent 6. 5 . The brodeur was unanimous, and new voters this time around, everyone in support of this statement, the first time we have seen that since june 2011. Two additional statements are being released at this time. One is a technical note explaining how the asset purchases will proceed going forward. A second note also with regard to the fed testing and overnight reverse repo facility in anticipation of moves down the road. That exercise will continue for one more year. The terms have also been modified somewhat. The fed getting ready to make additional moves in the future, reporting some additional pieces in place to be able to make some moves down the road. The bottom line the final meeting for an bernanke as ed chairman the final meeting for ben bernanke as fed chairman. Thank you so much. Lets get a quick check on the market reaction. We did see a bit of a spike, but right now, the average is still lower. Dow jones industrials down 100 41 points. The s p 500 and the nasdaq composite index art down. 75 are down. 75 . Lets get some reaction to the head and announcement the fed announcement. The fed state away from any kind of controversy. They noted that the economy was showing mixed signals in january, but on balance was the term they kept using, in general, the economy continues to improve, but they kept everything pretty much the same. They continued with the taper as forecasted. They are going to keep an eye on it. Did not put any new threshold in or change the forward titans. Looks like then bernanke looks like bernanke decided he would just punch it over to janet yellen. If anything comes, it will be on her watch. Not a surprise. It is important that they kept their inflation mandate in tact, and i think it is important they will be doing the reverse repo operations. One of the things that has happened with this new reverse repo facility is that during times that tank talents sheets sheetsct bank balance contract, its important to keep Interest Rates above zero. Close toey rates of so zero that one Balance Sheets contract, Interest Rates go down. Better than interest on reserves have. I think it is a very important tool. I wonder if that is a technical move, the Feds Authority expired at the end of the year. They had to renew it, and they wanted to keep at facility in place. There was concern from some people on the fed that if they announced a would make it permanent, people would read that as a Monetary Policy move, and they are not ready for that yet. That might be. One of the things the reverse repo operation does is become keeping parcel to Monetary Policy kind of stable during a time when they are buying a lot of bonds. At the same time, you have cuts to things like tbills because we have better deficits than we have had in the past, and the Federal Reserve introduced just this morning a new floating rate note row gram, which went very well. That is going to mean that the Treasury Department is going to wind up cutting bills even further. With liquidity building up and more demand for it, the fed is a little bit worried what happens if tbills and the repurchase agreement market wind up trading at zero and potentially negative . They would like to avoid that. Wanted toook, you jump in . With regard to the reverse repo facility, the fed went out of its way to make clear this is not a change in stance. There is a paragraph about earlier Operational Revenue that says, this work is a matter of prudent advanced landing by the fed. These operations do not represent a chance do not represent a change in stance. There are changes to modifications of the program. The allotment size. The cap has moved up to 5 billion, i believe it is, from 3 billion. The fixed rate continues to be authorized between zero and five basis points. Current operations will be maintained at. 03 . All Current Operations will remain the same. They are being smart here, getting ready for the future, but this does not mean something is happening. Bernankes last meeting who ran this meeting . Bernanke likely ran the meeting. In january, the chairmanship of the open market committee, the people who vote on Interest Rates, is not necessarily automatic. They vote on who should have that job. It is always given to the chairman. Last time when Alan Greenspan was leaving, his last meeting was january, they voted him chairman for the day. Bernanke probably voted chairman for three days until his term is up. They noted that they would hold an email ballot and elect the next chairman, who was the next and elect the next chairman. Bernanke, we saw, voted much the same as Alan Greenspan did. For many fed governors, their last meeting, by tradition, they do not. Markets still trending lower. What did wall street here or not hear . Trending lower, but as we discussed, not a lot of surprises or shocks in the market. That is what analysts were writing about this morning. I have one note from an analyst who says theties fed does not want to create any disruptions, and that is basically what im looking at. The yield on the 10year note coming down a little boy a little bit, maybe two basis points. We are seeing continued pressure on the equity markets, but again, that looks like a lot on the earnings forecast, and we are seeing gold taper a little bit on the back of this fed decision, but a lot of that looks like fear trade money coming out of the merging markets and into the safe havens of u. S. Treasuries. Before we wrap this up, i guess we would be remiss if we did not talk about bernankes legacy. I think he was the right man for the right time. The fact is we went through a terrible financial crisis. Guided that bernanke things just well enough that we really avoided a worstcase scenario. I think perhaps in some quarters he is not given enough credit for that, and maybe he kept things too easy for too long, some will wind up saying. I disagree with that, but i think his legacy really is we can make sure that crises are manageable. Your thoughts . I think ira fits on a good point. When we had the great depression, and bernanke was a scholar of the great depression, the fed did not know what to do, and the fed has managed to contain the crisis and keep the u. S. Economy on its feet through all of this and keep the Financial System operating. It does show we have learned a lot and he may have been the right person at the right time, whatever is there. The longterm view of bernanke will depend on the exit strategy, how well they get out of this, but he leaves with people giving him generally high marks. Great roundtable following that fed decision. I want to thank everyone for joining us. When we return, i will be joined by a partner from bessemer business partners, which has invested in over 100 30 Companies Worldwide. We will tell you which areas of tech they see the most opportunity in, but first, a live shot president obama speaking in pennsylvania. The president talking about retirement planning. Mr. Obama hitting the road just less than 24 hours after his state of the union address. Well be back after a quick rate. Because too Many Americans are working harder than ever just to get by, let alone get ahead. They still have the scars of the recession, but the truth is, the middleclass has been taking it on the chin since way before the financial crisis hit. You know that. The economy now has been growing for four years. Corporate profits where is money moves we focus on innovative alternative investments. We turn our focus now to venture capital. My next guest has been spending a lot of time focusing on internetbased software for small companies. Hes a partner at the summer venture partners, which has over 4 billion invested in over 130 Companies Worldwide partner at bessemer venture partners. You spent a lot of time looking software forased Small Business. How is that going . We are seeing a new generation of internetbased Software Models catering to Small Businesses. Small businesses have historically not had access to software. It has been hard to sell for them. They do not have internal i. T. Resources, and internet now makes it possible to sell to them. Do they need i. T. Resources now, or is it because things have gotten so technologically advanced, they do not need it . Thats exactly right. Software has gotten so advanced that you no longer need someone on site to manage it. We have a client called shopify, and it allows a retailer to set up an online store, and they no longer have to ask for someone to maintain it. It is entirely maintained by shopify. They also now offer pointofsale ftware. If you have an online store and physical store, you can use it. Why has it been growing . It has been doubling revenues every year since we had invested. It has been a rocket ship. Arst of all, anyone who has small brand or retailer needs to be online, needs to be selling online. Second, because of this internetbased Software Delivery model, they have been able to constantly innovate and release new products, which Business Owners love. It caters to Small Businesses, and i noticed that they must love this. Does this level the Playing Field somewhat . Absolutely. Another example of a company we have in our portfolio is a Company Called mindbody. Spas,ell to gyms, salons. Before, they used to do everything with pencil and paper. They can run their business from the comfort of their own home on their living room couch. What does this mean for their salesforce . Doesnt mean there is not one now . Do they need a sales force because all of this is now done through the new technology . Do they need people out there on the street doing this, or can they just host webinars . Thats a great observation. A lot of the sales force is now moving internally, through a. Elephonebased sales model you no longer need as many feet on the street to Sell Software or to sell anything online. You were going to mention yoga. Dy and allows any sort of Small Business owner to set up a small website for their yoga studio or Fitness Center or salon or spa, and much like shopify, its deliberate entirely through the internet, which means you do not need an i. T. Guy. You constantly benefit from new updates, and you can access through any internet that the device from the comfort of your home. Internetconnected device from the comfort of your home. Why does this seem to be blowing up all of a sudden . Mid last year, apple announced a new protocol which basically allows your smartphone to him in a signal. Sensors can then pick up on that signal to know exactly who you are and where you are. The possibilities become pretty exciting. You could walk into a retail store and have a minority report minority reportlike experience up on the display screen. You could walk up to the front door of your house or your car, and it would automatically unlock. You could use google maps to , an airportoors terminal or shopping mall. It is still early innings, but the possibilities are pretty extraordinary. What does 2014 look like . A lot of innovation around this ecosystem. A lot of innovation around wearable computing and internetconnected hardware devices. Angst for joining us here in the studio. Pleasure to meet you. Appreciate it. When we return, we will look at the upside and the risks of deflation. What investors need to know when we come back. To thes return our focus Federal Reserve. Concerned starting to ship from getting the job market restarted to the threat of disinflation or even deflation concern starting to shift. Why is the inflation risk falling . Isnt that a great question . An even better question is how come the head and doj and ecb are not explaining why it is anding the ed the fed doj and ecb are not explaining why it is falling . Inflation falling, not rising. What is their focus . They have the jobs target. They have the inflation target. Now janet yellen will be taking the helm. Will they have to change their strategy . I think this is really prudent, the big elephant in the living room. The fed comes out today, and everybody saying theres no real surprises. There are no surprises, maybe, but there is an elephant, which is deflation. You need to see more conversation about this. They are saying exclusively, even if we get that job target we were telling you about, we are going to keep this super accommodative Monetary Policy in place longer until we pick up inflation. Even this repo facility that you spoke about just a few moments ago, one of the reasons they have to put that in is because they do not want Interest Rates to go below zero. When you start to worry about the fed having to do crazy things to keep Interest Rates below zero, that is something you have to Pay Attention to. Is there an official explanation for this . There really is not. I have my own explanations. I think the tremendous amounts of debt that are out there in the global economy, the demographics, which are really unfavorable, especially in europe and japan i think technology is having a profound deflationary impact as it makes society more efficient. Its great that its more efficient, but its bad that it is creating deflation. I think what a lot of professionals are concerned about is why isnt the fed even talking about the reasons . If you are an investor, how do you play this . If you are concerned about deflation, you have to completely reset. The first thing is you do not want to have any debt outstanding because your asset values will all, but the amount of principal that you owe will stay in place, as all of our homeowners learned in 2008. The very interesting point here i just checked the statistics we still have 20 of homes with mortgages in this country 25 underwater. That is an example of what happens if you have a debt during a deflationary period. Bonds are risky. How do you play that . A lot of people are moving to things that are not ons, but like royalties. Thats very interesting because they have a chance to grow over time. The big secret is that one of the things you can really have in deflationary times is developable real estate because the cost of development falls even faster than the general rates of inflation and the economy, makes it cheap to have ilk once the rates come back. Whats the answer, quickly . Makes it cheap to have built once the rates come back. Whats the answer, quickly . Producing income today, and also real assets, which will inflate its inflation comes back. Bob rice joining us in studio. Thanks. 26 past the hour. Bloomberg is on the markets. The studio. Ns is in lets start with equities. Equities picked up a little bit of momentum off the back of the news that the head was going to maintain the pace of its taper and continue to reduce the pace on the news that the head fed was going to maintain the pace of its taper and continue to reduce the pace of its buying a bond. We are seeing some action in the treasury market. Treasury markets appearing to be holding onto their gains, yields coming down a little bit. The 10year yield trading look at that below two point seven percent. It was nearly 2. 9 when the fed first announced it was going to taper. We are seeing the u. S. Dollar gaining against the euro, against the yen, and against the South African ren, but thats another story. These broader rallies we have seen throughout the day, we are also seeing gold papering a little bit after gaining this morning ahead of the fed meeting. Gold papering a little bit after gaining this morning. Well be back on the markets and half an hour. Gold tapering. This is money moves where we focus on alternative investments. Thanks for staying with us. We have more Bloomberg Top headlines. The Federal Reserve says it will expand its monthly Bond Buying Program by another 10 billion in february. The head said labor market indicators are mixed but on balance show further improvement in the economy the fed said. This meeting was the last four chairman bernanke before janet yellen takes over as head of the central bank. Moments ago, president obama signed a memorandum directing treasuries to create the Retirement Program he spoke about in last nights state of the union address. The president also called for extending Unemployment BenefitsUnemployment Benefits, raising the m