The statement the following. I quote. The committee currently expects to implementing Balance SheetNormalization Program earlier this year, provided that the economy evolves broadly than anticipated. In a separate press release, trish, they outline how all of this will work. Fed will begin to unwind the Balance Sheet by allowing 6 billion to roll off monthly initially, 6 billion at threemonth intervals over 12 months until it reaches 30 billion per month. Separately as relates to mortgagebacked securities, 4 billion a month initially. Will increase to 4 billion over threemonth intervals to 12 months until it reaches 20 billion per month. As far as relates to long term projackses here, the fc projects here, three rate hikes this year. They dropped their projection from march earlier this year, from 1. 9 to 1. 6 . They raised gdp slightly. Longer term relates to unemployment 2018 and 2019 they dropped it down to 4. 2 from 4. 5 . Rate hike of a quarter of a point. Neel kashkari the lone dissenter. Balance Sheet Program will begin here. Trish thank you very much, blake burman. We have kelvin kelly, jay pelosky, fox news contributor, steve cortes, our very own nicole president pet Nicole Petallides live from the new york stock exchange. We have given up earlier gains from the session. First of all, i want to go to jay on this one. You know what im troubled by, jay . Im troubled by the fact we have no inflation in this economy right now. Look at cpi, today, what people are paying, consumer price, went down 1. 1 last month. I guess i just question, jay, how it is we can be Interest Rate environment thats rising when prices are going down, so there is no inflation . In fact we should be worried about a little deflation at this point. Unemployment is pretty darn good at 4. 3 . I think you actually hit the nail on the head, trish. Look, the fed is leading the Global Central Bank policy normalization process but the u. S. Economy is lagging. Our Economic Growth is less than that of europe, less than that of japan, less than that of emerging markets. I think you have a situation where the markets could get a little bit concerned that the fed is boxed in here. It wants to raise rates but the economy may not allow it to. On top of it, one other factor that you didnt mention which i think is very significant as we move forward into the year and 2018, the political environment and policy inertia that is existing in d. C. I think it means a weak economy, policy inertia, means very slow if he normalization process. Trish we have the market he reacting a little more postively, nicole up 35 points right now. The fed delivered. They did exactly what investors thought they were going to do but again i think there is a conundrum here as jay points out, they may want to raise rates but can they . That is a great question. Economic reports they know oh so welcoming are tepid, going back to early 2016. Retail sales today. Inflation report. We know that theyre watching inflation so closely. We are seeing markets right now at 21,354. So you now just at this moment, were at alltime record highs. So the market sold off, digest ited moved right back here to the record highs. He keep a close eye on the 10year bond. This is at the lowest level since late last year. 2. 11 . Really unbelievable when you look at that 10year bond. Commodities are just fine. Trish i hear you. It is a strange environment were living. I spoke to bill gross about this yesterday. He is concerned about the structural problems going on in our economy. Kevin kelly, we now live in an environment where it is getting increasingly heart for the next generation to be able to do as well as the last one, for a whole variety of reasons. But how does that start to change . You hit the nail on the head when you started this segment talking about wage inflation. That hasnt happened. Wages are not rising. That leads to healthy inflation. Well not get anywhere a gdp print this current government wants, 3 , 4 . It will take fiscal policies. The fed governors asked for the fiscal policies. That is the only way we can stoke growth in the economy to it raise wages to bring up Living Standards and jobs. Trish this, sr. This is part of bill grosss point yesterday. Theyre not seeing the kind of growth you would think you should see coming out of a recession such as we went through, what is it now, almost 10 years ago . 10 years. You guys are way too negative. Come on people im just, if i were to listen to what were all saying here, i would be shorting everything myself. You know what . There is a great story. Think about it most number of people in america are working in 16 years. Unemployment down to 4. 3 . Corporate Earnings Growth is back. Okay, fine, inflation went down month over month but up 11. 7 yearoveryear of the fact i think we need to rethink our whole assumption about inflation, food prices are low, gasoline prices are low. Thats a great story. Trish i want to explore this a little bit because you say 1. 7 , that is not a ton of inflation. By the way, looks like theyre revising their expectations for inflation from 1. 9 down to 1. 6 . On the one hand, none of us want to see a ton of inflation, right . You dont like it when prices keep going up. Right. Trish but on the other hand inflation is normal for an economy. We need 2 to 3 . Were not even getting that. I know but there is something happening right now as a result of technology. Whether you want to talk about more efficient drilling that has kept, an ables us to access oil and gas in the shale that is technology, right . That increased productivity. If you talk about the fact were buying stuff on our phones which we never did before. If you have robots in warehouses restocking shelves youre going to have lower prices. You will have less inflation. Trish that makes sense but then the corresponding side of that is, why dont we have higher wages . If we have 4. 3 unemployment, kevin, why arent wages going up . One of the biggest overhangs in wages is the Affordable Care act. That tampered Small Businesses from hiring. They have had to fire people and people are going part time. The Regulatory Environment put a noose around the neck of small business. Health care is 17 the gdp. Second largest cost to employers outside of wages. So with that going up it is up from 13 gdp back in 2012. So youve got this environment where Health Care Costs are rising. The regulatory costs are rising. You so you cant raise wages or hire more people. That is why youre seeing that happening. Unskilled jobs are already filled. Trish jay, no inflation why raise rates . Why do this right now . I think the fed would like to get off the zero bond. Clearly it is doing that. It gives them a little bit of cushion for the next recession which we know is inevitable. At some point well have recession. I think the fed wants to protect against it causing a recession by raising rates too fast or pulling back on the Balance Sheet too quickly. Thats the concern that the fed might be in a box here, that the economy is not really Strong Enough to allow it to fully normalize its Interest Rate policy and its Balance Sheet. Therefore if it raises rates too fast you create the condition it doesnt want which is recession because if we do have a recession the fed with rates at 1 is very limited in what it can do to offset the recession. Trish nicole, there is nothing left, right . I mean they have printed as much money as they possibly can. They need to wind that down because there is no end in sight right now and Interest Rates are so low. So yes it is healthy to get off zero, i get that. I guess we all better hope and pray there is no recession lurking down the road because there is not a lot of wiggle room . Well they did raise it at least two times prior to this. Last december and prior december and march and now. So they have raised it a little. They have a little bit of wiggle room ever so slightly. Why theyre talking about one more hike. It is really interesting about the plan winding down the Balance Sheet, 4 1 2 trilliondollars. It came with that caveat sentence, trish, about normalization, normalizing the rates, normalizing what theyre seeing on the Balance Sheet and evolving the economy broadly as estimated. Any blip in the economy they will stop unwinding securities they plan on doing, mortgagebacked securities. They will essentially let them roll off. Theyre trying to hold on to something. Well wait for janet yellen. Got to hear the language. Very interesting, were talking about her term, right, in the new year. Will janet yellen remain the fed head . That is trish that is a very good point because, steve cortes, donald trump wasnt necessarily a fan of Janet Yellens on the campaign trail. Right. Trish and if you couple that what he said about her in the past with the fact that she is not necessarily doing him any favors here by raising rates right now, he might really be looking to replace her. What are your thoughts on that . Could gary cohn be in the mix . Any other names that you can think of . I think potentially, id love to see somebody like cohn, somebody outside of academia. Enough of mit economists because they created a world by the way harmful to regular working americans. They have created in a sense ironically, donald trump you should appreciate janet yellen, because she created the kind of economy that led to his election. That is economy only rewards owners of assets which is very small slice of people to the detriment of working masses. How do we break outside kel . Were normalizing rates albeit slowly. What we need it is not central bank issue, it is fiscal side issue. It is tax cuts and we need them yesterday an more regulatory relief. If we get that, i think the economy can trulily break out. Trish im hearting a theme here. Let me point out i hear the theme on both sides of the aisle. Not as though, steve, full disclosure here, you were on trumps team, hispanic advisory council. We know politically where you stand. Right. Trish that said im pointing out something i think is, bipartisan in that people want to see tax relief and tax reform and its crazy to think, adam johnson, you will let 2 trillion sit overseas working for other countries instead of bringing that money back here and getting people back to work and opening new factories and investing in new research that could help our country grow . Of course they are goingbring that money back. Of course they are going to pass some sort of tax reform, if for no other reason the gop wants to get reelected they have to pass tax reform. Trish youre very confident about that. Confident, as is the market. That is one of reasons were up. Well get a 12 to 15 bump in earnings. Well not get it this year, because washington is so dysfunctional it will take an extra year. Trish you think it will happen before 2018 . Yes. Trish go ahead. Not only do i think it is going to happen, sounds like adam does but more importantly key sectors of the market think it will happen. Market is smarter than any of us individuals. I point to one stock which is boeing. Boeing is almost a trump stock. It is at alltime highs. It is soaring today. Absolutely soared since the election. Up 30 since he was elected. Combination of defense and infrastructure, airports, investment. Boeing certainly believes all of this is certainly going to happen. I believe boeing. If that is true, what will be good for boeing will also be very good for america and good pour for work. Charles trish go ahead. This is tough conversation because the markets benefit from low Interest Rate environment and earnings are worth more but it is not translating to the consumer and not translating to the real economy. 70 of our economy is services. It is struggling right now. The s p 500 is doing so well. They want the status quo. They could care less if tax cuts happen. Trish brought it up, it is bipartisan issue. Obama had in his budget business taxes going down. That will help Small Businesses. Same with hillary clinton. It was part of her plan. We need to get it done. Doesnt seem like its a priority to get done this year. Theyre focusing on everythings including health care which they should do tax cuts. Trish turn the conversation a little bit. Janet yellen will be speaking momentarily. I always point out, look im a reporter. I like i like the fact there is information available. But adam, he heard me say this before, jay, you probably have too, i think the fed has gotten a little too chatty. Yes. Trish always giving a press conference, not just janet yellen but every governor speaking to the media every chance they get. Almost overtelegraphing to the media by which the way is not entirely consistent. The market is up 38 points in part because people are relief they have followed through but adam, have they gotten a little too chatty for their own good. You know that will give boost to this market, adam johnson. You know they want everything telegraphed. You know what, nicole . Weve all become spoiled children. We expect the fed to bail us out. We expect the fed to do everything. That is why they call it the koolaid. Why they call it the koolaid. Well hear from janet yellen. Household spending was higher. That is good. Business activity increasing moderately. That is also decent. Interesting the Neel Kashkari the one dissenter. Trish we like all the information. The only thing i would say information is not always, it will switch on a dime, right . She consistently says, looks things will go along as such provided as such happens. If something doesnt, just feels as though some of the telegraphing that used to happen, the fedwatchers that would try to figure out all of this, you know, just been so saturated by members of the Federal Reserve itself. Go ahead. This is response to how the market reacts. The taper tantrum happened because the marketplace was not expecting tapering to happen with quantitative easing. Markets sold off, bonds sold off, so that was a big issue. They need to telegraph so the market is not caught by surprise. That will cause volatility in the marketplace. If we were down on the year and volatility was up, would they have raised rates today . The answer is no because they talk about the market in their minutes all the the time. Trish hang tight, guys. We have a lot to talk about. Janet yellen is coming up any moment. We want to take that as soon as that happens. Another breaking story going on right now, very sad day, very sad story, President Trump sending his thoughts and prayers to all of those hurt in todays shooting at republican congressional baseball practice including House Majority whip steve scalise. Watch. Well the president earlier coming out and speaking and confirming that the shooter is in fact dead and he expressed of course his condolences to everyone. Here is the president right now. Many lives would have been lost if not for the heroic actions of the two Capital Police officers who took down the gunman despite sustaining gunshot wounds during a very, very brutal assault. Melania and i are grateful for the heroism and praying for the swift recovery of all victims. Trish congressman scalise underwent surgery this morning. He is expected to recover. Also wounded, two Capitol Police officers, a staffer for congressman Roger Williams of texas, and lobbiest for tyson foods. The shoot who was killed at scene has been identified as a 66yearold man from illinois, reportedly a leftwing supporter of Bernie Sanders. I want to go to adam shapiro. He is live on the scene in alexandria, virginia. He joins me now. Adam. Reporter trish, want to bring you up to speed on the status of one of the people shot, matt mica, lob by it for tyson foods. His family said he was shot multiple times. He is in Critical Condition at hospital. The other people, Capital Police officers are expected to recover from their wounds as is the aide to representative Roger Williams. That aide was zachary barf. Matt mica shot multiple times and his family said he is in Critical Condition. Speaker paw paul rye held a News Conference and picked up on president s theme of unity. What he said about this mornings tragedy. We are united. We are united in our shock. We are united in our anguish. An attack on one of us is an attack on all of us. [applause] reporter trish, you pointed out that the shooter, 66yearold James Hodgkinson was killed. The president announced that. We interviewed witnesses who saw the shootout with the Capitol Hill Police an the man with the rifle. He turns out not only been a Bernie Sanders supporter, but opponent, he is opposed to policies of President Trump. Bernie sanders took to the floor of the senate to denounce the violence and here is what he had to say. Violence of any kind is unacceptable in our society. And i condemn this action in the strongest possible terms. Real change can only come about through nonviolent action and anything else, runs counter to our most deeplyheld american values. Reporter so the fbi is now in charge of the investigation. They said this is secure area. They did not room out or confirm other people might be involved. That will be part of their investigation. They will have another president briefing sometime in the 4 00 hour. Trish . Trish we await on janet yellen, chair of Federal Reserve. Will address reporters. Were back with the whole team. What do you want to hear from her, steve cortes, when she comes out . What would be your number one question . My num