right now the unlike the federal reserve it's already having interest rates in negative territory and there's a lot of risks that could come with taking rates even further into negative territory this would put a lot of pressure on banks who just can't make money off of lending when rates are that low so i think the what what the e.c.v. is doing is trying to get liquidity to the market trying to get liquidity to businesses but they're trying to do it and a more targeted way so through it through cheap loans and things like that but obviously investors not particularly happy about that and that's one reason why we have we've seen this massive sell off in stocks the dax was down about one point more than 8 percent it's come back a little bit but. i think i think investors are just really you know trying to see what what central banks can really do in a situation like this tell me more about that i can understand where investors are coming from the e.c.b. itself has very little leeway less than the u.s. fed but central banks in general i mean they're not used to fighting off the flu. no

the resources. one thing i'll think will happen this time unlike 2008, the federal reserve will behave in a very different way. the actions after 2008, 2009, hurt the credit market especially for small businesses. that really hurt the recovery, this time i think the federal reserve took really good action to keep the credit market open, keep them going in another's recognition, you saw in this bill the past congress, recognition of relief for small businesses. i think on the tax side and on the regulatory side, there's going to be much more sympathy for small businesses being exhibited by washington then there was after 2008 and that will be really helpful for recovery. melissa: steve forbes, you are brilliant, just what we needed. thank you so much. connell: melissa, as we have fox business alert to bring you as we go to to buddy carter of georgia to talk about the breaking news of the day, the alert is from president trump who put out a statement with regard to the defense production act, something we've heard a lot about this weekend the president saying he has signed a memorandum to the hhs secretary

policy rate had so much policy space unlike the ecb, where would it go. the federal reserveas had the ability. that is allowing or preventing a flood of money making sure the fed is not a part of the problem. >> so the expectation is reflected in the treasury market now at its lowest level. the treasury inflated are those that index you are now negative yielding for longer ends of the curve. that means that people don't think any real growth is ahead for the future is that true now >> what people are responding to is the shock we are all talking about. that will be five years lower or 10 years lower prior to this, core inflation is right around 20% for changes depending on how to track severe that is more of a function of energy prices. what is the forecast or the base case we are looking at given today about the markets on the economy. >> does the virus have to be eradicated >> no. we get to economic levels. if you stopped travel, you can rebound from that. and china's case, people were at a place for the lunar new year we can see china rebound a bit it will be possible aft

the credit markets have been, but the mortgage stresses we are seeing are substantial right now and unlikely does it -- to disappear anytime soon. the federal reservelater launch a series of packages to support the bond market. it is stepping in and buying in etf's for the first time. analyst with etf us now. this is a huge step by the fed. why is it stepping in and buying etf's? >> you mentioned a small part of that massive support package from the fed announced monday, the ability to support corporate bond markets. the fed is responding to stress it is seeing and how much more limited dealers are, so the fed is turning to etf's to get representative baskets of the .nvestment grade bond universe vonnie: and you have watched this headline with great eliminatinggel oaks 70% of its staff. there could be a cascade? morgan: yes. we have seen fixed income bond etf strain -- trade at huge discounts from where custodians are able to price their net asset values, which is how aggressive and fast selling has been in the fixed income market. the fed stepping in and expressing it is a willing buyer in this market has created a 180 this week. to the seen retur

reporter: mcconnell said unlike small businesses large industry like airline that are slated to the get 50 billion if federal reserve will have to payback that amount. they are using to try to keep alive an industry is is being crush by coronavirus. s senate, is really moving here break-neck speed there was some disagreement this afternoon about whether or not full g.o.p. caucus here in senate would support idea of giving checks to americans, we reported exclusive leo fox business, that number has moved up from 1,000 per person to 1200, 500 per child. and me with my colleague edward lawrence, reporting a tapering, this money to people up to 75 thousand dollars income per here, and then papers up to 95 thousand, if you make more, you are likely not going to be eligible for this check. >> thank you very much. >> president trump, signing into law second coronavirus relief bill after it passed in senate provides paid sick leave, unemployment health and covers cost of virus testing. 8 senators vote the again the bill marcia blackburn from tennessee joining us, why did you vote no yesterday. >> you know, there were some p

look at the sea of liquidity that the federal reserve, the ecb, people's bank of china, everybody is putting out there it is possible that financing dries up it is unlikely in those conditions, really unlikely. >> i don't see it. rates are so low there is so much capital out there looking for a home. >> that's my point >> if he have to pay -- yeah i don't see that happening if you don't see that happening yeert and you agree with jon then you should be plowing money into the market right now. >> it is just a question of the bottom. >> you are sitting on 12% cash i don't hear you saying i own boeing, it is at 268 and that's absurd so i am buying it intel and all the other stocks are getting hammer, that's absurd, too, scott and i am buying that. >> yeah. >> why aren't you doing it >> i am days away. you know i am a long term investor let me say something we are going into friday in a terrible news cycle. a bad news cycle you go into a friday like people want to buy tomorrow may be my day. >>> want to disagree with joe on one thing. i don't think value -- i agree with you on your long side but i don't think value should be trading higher value is more of t

situation which is unlike anything remotely that we've seen since world war ii, how that plays out, we'll have to see. >> reporter: and no less than the st. louis district of the federal reserve projects that 47 million americans will lose their januarys before this is over. that's more than lost in the great recession. >> let's bring in our meteorologist for a look at your pleasant forecast today. >> that's right. it a nice pleasant forecast over the next couple days. probably the biggest thing, some change in the wind speeds. stronger winds toward the coast. that'll be in your wednesday outlook. we jump right into it for tomorrow. mostly sunny skies. a bit of a breeze with winds around 15 to 25 miles an hour. the dry pattern continues. that area of high pressure offshore and the winds do pick up tomorrow afternoon, especially near the coast. around portions of the bay. as we come in closer right now on the satellite, we do basically have mostly clear skies over a good portion of the bay area. we're gonna have more of a northwest wind developing near the coastline. we'll be locally breezy for your wednesday forecast as these winds ramp up in speed. outside right now, still a

working on congress would authorize the treasury department, the federal reserve, that they would backstop these massive credit lines unlike in 2008 it wouldn't be going to a bunch of wall street firms, these credit lines would be going to all companies across the country. we would use the fed plumbing, fed infrastructure, fed supervision of banks with other bank regulators but the losses would be on the taxpayers' dime. i think there are huge multiplier effects by having the fed and treasury stand behind it i'm hopeful that in the coming days some voergs version of a plan would work to reliquify this economy because time is going to be running against the fed. so i do believe the time is right now for this full relick which if i case of the economy it requires all parts of the government to act in concert none can do it alone >> andrew? >> hey, kevin, i just wanted to talk a little bit about the structure of how you do that i got a lot of feedback in the past couple of days about akol lum i wrote about the equivalent of a large bridge loan provided to everybody on the same terms so long as they continue to employ people.

the federal reserve stepping in again. >> yep. >> to shore up the short-term funding market for corporations. does all of these things give you confidence >> to a certain extent i think this crisis is unlikerior cires. we're not just -- by the fed and even -- so much. barometer you want to watch. this is what worked in china, deceleration in the number of cases reported this is a different crisis i mean, i think that the barometers we've used in prior bear markets like credit spreads and oil prices and all of that are irrelevant fiscal stimulus is relevant but it might not be the full bailout that we need i think we need to see health care policy response and most importantly sort of a containment and deceleration in the number of announced cases. we're really looking to italy to see how that resolves. i think that's a good example or case study of a country similar to the u.s. that is implekting aggressive policy right now. let's just see if it works i think that's what we're watching to signal an all-clear. >> crossing below at your screen you'll see the fedex numbers, withdrawing guidance let's get to frank with more with numbers trading up. frank? >> after the company reported eps in

unlike any other and that's absolutely right. this is forced economic stop it's also true however that because it is unprecedented, the federal reservecedented steps. the federal reserve has basically said there is limitless money to borrow to get you through this difficult time. that's a lot of support for these big companies. they are a good credit risk. i cannot believe that i think it's not factual that they will simply disappear of course we need to try and save jobs. but the truth is the small businesses in total have more jobs at stake than these big companies do i also must say don't like the idea of the government taking equity stakes in these companies. president trump has been reluctant to nationalize industry those are his terms and that has explained his apparent reluctance to sign the defense procurement act other than for gm, but the truth is the defense production act is not nationalization as i understand it, but the government taking equity stake in an airline now we're starting down the path of nationalization >> and carly, sorry, my microphone was having issues this is so different than 2008 you know in 2008, ther