we'll hold near 0 through 2022 but the real question has been what action will the fed take moving forward. since march we've been purchasing sizable quantities of treasury and agency mortgage backed securities you know to support the smooth functioning of these markets which are vital to the flow of credit in the economy. our ongoing purchases have helped to restore the market conditions and have fostered more accommodative financial conditions as market functioning has improved since the strains experienced in march we have gradually reduced the pace of these purchases to sustain smooth market functioning and thereby foster the effective transmission of monetary policy to broader financial conditions we will can increase our holdings of treasury and agency mortgage backed securities over coming months at least at the current pace paul added the fed will continue to monitor the situation make moves as necessary and went on to talk about the economic impact of the krona virus pandemic. the virus and the forceful measures taken to control its

spread have induced a sharp decline in economic activity and a surge in job losses indicators of spending and production plummeted in april and a decline in real g.d.p. in the current quarter is likely to be the most severe on record. even after the unexpectedly positive may employment report you're only $20000000.00 jobs have been lost on net since february and the unemployment rate has risen about 10 percentage points to 13.3 percent. the u.s. central bank says it expects g.d.p. to contract by 6.5 percent in 2020 but doesn't this big growth of 5 percent in 2021 and 3.5 percent in 2022 u.s. equities had bounced back after the decision but fell quickly with the dow dropping by more than 200 points however the tech heavy nasdaq continued its record run on wednesday above 10000 points for more on all of this let's bring in bill bus co-host christine and c.e.o. of cool intelligence and former fed insider daniel de martino both then i want to

start with you here what are the latest takeaways from the fed and did it meet investor expectations for what they wanted to hear from drone powell. i think that investors have to be happy with what they heard today that the fed is expecting for gross to resume 2021 but at the same time to to quote here pal the fed is not even thinking about thinking about raising interest rates which is kind of a goldilocks scenario we're going to have a return to g.d.p. positive g.d.p. over there over the next 12 months or rising or so unemployment is going to come down but the fed's not going to think about raising interest rates which should keep animal spirits that are really propping up the stock market going he's he's he's saying in no uncertain terms i am not turning off the printing press so that should definitely have pleased investors which i think we saw with the way the nasdaq closed at the very least christi what data points do you think the fed is monitoring here at this point to gauge whether or not to continue being a cow. dating or to start to tighten as we just heard drone policy. well this is

a really delicate game that the market is actually playing right now like the old narrative that we always spoke about before bad news is good news the worse the data actually looks the better for the market because then it expects to get help from the fed so that's why the markets want employment data to be good but not too good that against back to 5 percent unemployment within a few months because then you have the policymakers starting to tighten so the job numbers is going to be a big one to monitor because that will likely set the pace for fed policy and right now market participants are also watching for signs of the fed will continue to stay dovish in order to prevent any taper tensions on the day when it hold away from q.e. in 2013 so the market clearly wants a high level commitment to continue treasury purchases so currently the fed has slowed down dramatically those purchases that its balance sheet has already blew into about over some point one trillion dollars already but despite this the market is still pricing in that there is about another 3 trillion left to go so we shall

see if the market actually get sad or be disappointed and have a need jerrick leg down so today we actually never got any solid statements from the regarding his purchase and how long they will continue for the only indication we got was that it would maintain these purchases to quote sustain a smooth functioning of the markets which really doesn't give anyone any time i. don't know know they've the fed has actually pointed out that the there they've never gone negative on interest rates they really don't have it in drone policy as he has no real plans to go negative however like you said we're not raising rates any time soon so the fact of the matter is if the economy gets worse rather than getting better is this still the case and will we even you know is there a slight possibility that we might see negative rates this year or even next. well i think that as long as your own powell is running the federal reserve that the answer that question is going to stay no he said that the fed is contemplating and he spoke to this in the press conference the idea of yield curve control which has

been going on for some time and japan executed by the bank of japan but i don't i think that rather than negative interest rates he would take that next step and if need be i also believe that the fed would go so far as to buy stocks as well via e.t.f. again in the same way that the bank of japan has been doing no christo one of it to move to kind of markets here and 1st we'll start with commodities or oil really took a dive today after a surprise jump in crude inventories is persistently low oil prices kind of here to stay at least until we see all that travel and everything kind of pick back up after the crowbars paid emigres over which we don't know this may still be another year to 16 months out. so i think the persistently low oil prices are going to be here to stay because right now indications from the a.p.i. data shows us stocks built up quite a lot between both crude and distance and total crude stockpiles including commercial and as i mean by about 8000000 barrels now that's the 2nd largest

buildup in the past 6 weeks that we had and today you have goldman sachs also issuing a warning that the bounce in oil may soon be over and that it was completely overdone and the u.s. shell industry will start hurting again from another sharp fall in oil pricing coming in the next few weeks so we already see this happening in the stock market some of the biggest producers of shell war which includes exxon chevron and you know sources all of which are trained down between 3 to 5 percent today now the combined weakness and as you mentioned commercial travel and indestructible lead to the plainness in oil prices and global markets which is not expected to recover for some time and right now one of the biggest risks of market actually is that the low price of oil will not only the fact that u.s. will also heavily affect the political regimes in the middle east especially saudi arabia iraq and iran whose nation depend head. on oil exports up to 60 percent of it so the persistently low oil prices could lead to a shift in the balance of power as a nations would not be able to prize social services to their populations and

country sentence men as well where it's almost basically 100 percent dependent on how many they have absolutely no cushion to fall back on and they will have a tough time weathering the storm as it's already suffering from one of the worst economic crises in modern history no did i want to talk a little bit about equities here with you because you know we've had this this kind of run despite the last few days of kind of meager losses you know lost a couple 100 points here and there in the dow every day as we talk about that as they can still hit that record number now with record out of play the news of a recession obviously of civil unrest in this global pandemic i mean are investors really is that confidence just there because of the fed intervention and they know they're going to be there. i think that there's only one reason that the stock market is up right now and that is the federal reserve he's got 40 percent of the s. and p. $500.00 that cannot provide earnings guidance a year out so you can't even really calculate what the what the broad price to earnings ratio is but we did we what we do know is that valuations are at an

extreme we haven't seen retail participation the likes of what we've been seeing these last few weeks said it really has been a matter of weeks with the micro investors swarming into insolvent already bankrupt companies once you get this kind of animal spirits going and an assurance from the fed that there's going to be a 1999 style of alan greenspan type of support for the stock market we could easily see this thing run the risk is of course that the fed's actions are encouraging corporations that were already over indebted coming into the corona crisis to take more debt on yet while it's inflating at the same time equity market bubble the likes of which we've never seen so i hate to be the person in charge of the fed when both of these dueling bubbles burst so you know de martino booth and christie i would have had a whole show on that last one there thank you so much for your time thank you thank you. and the federal reserve's analysts printing of dollars in order to stimulate

the economy is resulting in a new set of consequences for one of the largest holders of u.s. debt china according to a new reports china the 2nd largest foreign creditor has decided not to wait for the devaluation of the dollar and is actively selling american debt securities joining us now to discuss those that investigative journalist ben swan now the chinese government has sold off u.s. treasuries in the past to correct and what makes this time different than the last time. well one thing that makes it different is kind of the situation they were in globally look at chinese have sold off debt in the past including $110000000000.00 just last year alone about 10000000000 dollars over the last couple of weeks so it's not a new thing necessarily but what makes it different is that china seems to be actively trying to divest right now of that u.s. debt and u.s. securities and trying to let go of those in the midst of a time when the u.s.

is as as chrystia danielle were just talking about when the u.s. is printing money in astonishment rate with the fed intervening as it is in the economy printing some 2 trillion dollars just in the 1st quarter of this year alone and now ben part of the reason for this move was because reportedly the fed was looking at negative interest rates despite drove to being specifically against it as daniel said as long as he's in charge is probably not going to happen she is the fed insider she knows better than any of the lot of us but as a judge today the fed you know did not lower the rates will that actually make any sort of difference well i'm not sure it does make a difference in terms of the way china is you know because i don't think china is necessarily going to listen and say well we trust the drone paul is not going to do this and if it's not your own pal then it might be someone in the future when you're holding as much money in terms of u.s. securities that the chinese are holding you're going to want to divest that china is the 2nd largest holder of american debt in the entire world and so when you're looking at negative interest rates you know that obviously that's good for you know

what the federal reserve is trying to do if they get to that point but it's terrible if you're holding that u.s. debt so i don't think the chinese are necessarily going to take solace in the idea of the drone paolo's going to save them at some point and again they going to look at the situation and say remember the federal reserve has been talking about negative interest rates for months even though they haven't done it now as of wednesday they said they're not going to it doesn't mean they won't at some point in the future and how much of this is actually about china attempted to kind of move away from the u.s. dollar as the world reserve currency because we've seen some other nations not like move fully off of it but kind of sell their stakes to diversify. yeah i think that's exactly what it is i think more than anything else what we're seeing is if you imagine the chinese and other nations of brics nations so brazil russia india china and south africa essentially looking at the u.s. reserve currency as a currency they want to get away from in terms of the economic control that the u.s. has as a result of it and so when they look at that they say well what do we do in order to really break free from that this is one step on the staircase that does that

there are going to a lot of moves made by the chinese to break away from the u.s. dollar as that world reserve currency i think this is one of those steps certainly to do that and to divest themselves and open quickly before we were actually you know when i'm out of time but boom bust co-host ben thank you so much for your time . and time now for a quick break but hang here because just on the other side the race to head the w t o is heating up as the e.u. and mexico have made moves to seize the spot straight ahead we bring you up to speed on the state of the race and as we go to break here the numbers at the close .

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be with the yeah. and welcome back the nomination process for the next director general of the world trade organization began this week it is set to go through the 8th of july and european trade commissioner phil hogan confirmed he is considering a move to cede brazil's roberte to as of $80.00 who is vacating that position a year early at the end of august now the comments from home again come as e.u. member states consider the prospect of unifying behind a single european candidate now officials have said that discussion will be had in the coming months now hogan spoke about the importance of naming a strong leader to the w t o during a video news conference on tuesday saying i think there is an important amount of

work to be done to reform the organization to make it more effective and efficient but also to deal with many of the trade issues that have been bedeviling the international community now arising from copenhagen teen now mexico has nominated senior trade official has to say at a who helped renegotiate the north american free trade agreement and several other nations in the process of working out their nominees no less so let's take a broader look at the world trade organization with professor richard wolfe host of economic update and author of understanding socialism fessor was always a pleasure to have you here. and i know this is something you're likely passionate about i want to start with this comment from hogan he says a lot needs to be done to reform the can strong a strong leader actually do that within this organization or or is the deputy a lost cause. i don't think it's a lost cause but it's becoming a political football and i think that what people have to understand because that

will go into determining who the next leader is but also what the organization darren's the whole point the purpose of the world trade organization was to prevent countries from abusing each other as they tried to manage their foreign trade all countries do with the united states for sure among them and the question was you don't want to let the go too far that we become burdens on each other as has happened in history before that was working pretty well with villages until something fundamental shift that 2 thirds won the trade war between the 2 biggest economies in the world today with the united states and china and number 2 that turned the trumpet ministration away from free trade in globalism george protection bought a whole world including everyone in the w e l is trying to figure out now the number one question is is this a peculiarity of an unusual and b.

president or is it in a really a change more than the republicans more than mr trump is there a change that the united states is really going to go it alone internationally that's the big question but what i want to get to next that i think was something that you were kind of alluding to there is you know the deputy o. appellate body has essentially been hamstrung by the united states due to the fact that the trumpet ministration basically has held up any nominee and any appointment to that body which actually makes rulings on trade disputes as we were discussing which makes the body completely less effective and almost useless at this point now is this going to cause an issue or is this going to be a pop up push that you're going to see as we look for and that is we but as as leaders look for a. new leader to the world trade organization. yes it is definitely already playing that role the rest of the world is shocked sack angry to i don't know what are the

adjectives to use at the drop of the united states from participating not just in the number you know but in the paris climate agreements and a whole host of activities like that and the rest of the world as i say is trying to figure out navigate around the united states really united states really pull back if so what is it we're going to do minus the united states i would caution something very important if the united states continues on the path chartered by the republicans under trump you're going to see a further isolation of the united states the rules governing international trade upon which the united states the parents will be written by people other than the united states and they're going to put their interests ahead of most of the united states at a time of already serious economic difficulty that strikes me as

a very dangerous moment and now professor wolf also i mean obviously the really didn't get too involved 'd with the u.s. and china as the trade dispute was happening i mean last year it is continuing where we're kind of ignoring the fact that phase 2 is going to be talked about they just haven't started negotiating because of things that are happening throughout the world right now but is that going to throw a wrench into things and does that also stop the u.s. from actually having any sort of ambition to strengthen the w t o when the u.s. knows that well maybe the deputy might rule against us but they can't rule out anything at this point. you know i think you're going to see it in a very bad spiral they're going to make decisions without the united states but this is a patient more and more those are going to go against the united states at least more than they have that will make hostility in the united states' role and you'll get into this nation's cycle that makes itself worse which is

a replication of what has happened with china over the last 24 months anyway and it's part as i say of just broader refocusing of the united states the rest of the world is still wondering as is that dealt with or is this election maneuvering by an unpopular president or is this really a commitment of the business community in the united states to try to retool the dominance it wants and by breaking all of the globalization that he was the big promoter of for so many years and now professor will fire by the maybe 45 seconds left but i rather like the highs of the u.s. trade representative had actually pointed out to hogan he made a point about saying it's important to have someone from a developed country be the leader of the w t o in 30 seconds is that relevant to you. i don't think so i think that's political maneuvering the europeans are very distressed they have in many ways the most at

stake i mean hitch their way to get the united states if they shift on worried about is happening they don't want to be in a position to shape what happens next and that's why they're pushing and i think the united states is afraid of exactly that and so we'll go with some lesser known among the smaller country kind of person professor roger wolf host of economic update thank you for that insight as always. and file. the international space station was just the 1st step for a private company getting involved in private space development now elon musk's space x. is prioritising starship argy correspondents from each other as is following the latest developments and files this report. about a week after the successful launch of the ku dragon capsule to the i assess space

x. founder in 'd one musk is mapping out the company's strategy for what's next to lifted off from historic launch pad 39 a while most has been busy with the manned mission to the i.s.o.'s and satellite launches he is now shifting his focus to another major mission in a company e-mail to space x. employees he says that starship is the company's top priority and is forging ahead with his plans to transport a human colony to space in the twenty's thirty's the rocket aims to be fully reusable and launch as many as 100 people at a time on missions to the moon and mars musk has confirmed on twitter that he plans to stick to his ambitious launch schedule of firing up the 1st ship towards mars by 2022 these missions will haul cargo designed to support future manned missions to the red planet. while the starship development program has suffered several dramatic setbacks the gigantic spacecraft is currently undergoing construction at space x. this facility in texas must pass to means that it will take about

a dozen starship missions to the red planet to deliver enough material to build a self-sustaining colony there now earth of mars favorably in line about every 26 months or so depending on how many starships space x. builds and launches we could conceivably have enough here on mars 1st human settlement by 2050 reporting in new york trinity each of us r.t. . and that's it for this time you could catch boom bust on demand on the brand new portable t.v. up available and smartphones through google play in the apple app store by searching portable t.v. can also buy that portable dot t.v. so you next time. destruction of nature. that's a there's

a lesson. we need to be listening for us we're going to repeat this over and over if you teach destroy the last wild places and we do these things. 54 jets and more than 1300 military personnel are headed to air force base in alaska where is that to say come on i'll show you what's the reason for any type of enhanced u.s. military presence in this area rush up. what is it suddenly about the south china sea that makes it so that it 11000000000 barrels of oil. take a look at this map who really owns what kind of says no it belongs to us india says no we claim that that belongs to us both of these countries have nuclear weapons

capabilities there is reason for concern so that's why we're going to drill down on this story for you today right here on the news with rick sanchez where you know as we always like to say we do believe by golly it's time to do news again. there was a clip of she was. still a little scared. at the call it was. not salute me didn't you think we needed was a couple to that they can put us in the mood at the pointed up by the smithsonian brushing the open to get one to come to that at the i r. c they it. yes. if yes well.

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protestors in seattle barricade themselves into a central area of the city declaring it and its home in the sun doesn't trump the man's law and order that while increasing efforts to militarize the only. black largest mass ascension to sparking calls for a reassessment of the past we'll take you want to call st some irish to explore the history behind. him from this name some new york times at mit school nick you were a passenger for all during last year's elections in bolivia which triggered a coup that president.