let's get back to jim bullard, president of the saint louis fed.humor take some nice pills it's difficult and it's even friday so what we have going now with the economy, you said it's a pretty good economy, you've seen some of the proposals of mayor mike about a wealth tax, about raising money here, raising money there. would those be detrimental to the economy or do we need some ways to raise revenue given that we're running trillion dollar deficits >> so this is just about deficit reduction or about expansion of -- >> when you saw bloomberg's proposals. they're obviously different than elizabeth warren's and different than bernie sanders and different than biden as a fed guy, if he became president, what do you think -- would it make your job harder or easier >> as a fed guy trying to predict what actually will happen, i think very little actually will happen because of the divided government problem i do think that the two biggest pieces of legislation, dodd frank and obamacare are here to stay i think to the extent you had a backlash against t

waiting on central banks, traders price in cuts of the global central banks as the fed's james bullard says rate cuts may be necessary. vonnie: let's get a quick check on the major averages. don't forget, it is a month end. another date to february, but the last trading day. the downtown 2.1%, well off the lows of the day, but it's been the worst week for the dow points wise in any year since 2008. it has lost more points this week than any year in total since 2008. there are oodles of statistics that we could come up with to explain the point moves today. the s&p 500 down 61 points. the nasdaq down 1%. it has made a bit of a recovery. the 10-year yield at 1.17. we got to a 1.14 earlier. watching a lot of assets, as you point out, the last trading day of the month. one of them has been gold, having its worst day in years. some theories about what is going on, people have told me there were margin calls going on, so that could be one piece of pressure. there is also a sense that that is a place where folks can raise cash. you can see the decline on the sinceside, it hasn't been 20 since

i think bullard it right maybe we can see what fed fund futures joutd look changes to. look at an intraday of 10s and recall that we settled so much higher last week at 147 that at 117 we are down 9 on the day, go to one-week chart. down 30 basis points on the week if you think that's wild, a 2-year note now is down 42, 42 basis points on the week so it settled last week and if you said the math its settlement means from 136 last week to its kurmt trade of .94 it is down 30%. that's why i never use percentages with yields. timely, a january 1st to the vix index for 10-year notes and it's over 7.5%, highest since early 2016 back to you. >> enough to make your head spin, reck that's for sure. we appreciate it. >>> while coronavirus cases in china might be slowing down, the opposite is true for the rest of the world. meg tirrell is here with the latest that the hour meg? >> kelly, the world health organization today raising the risk assessment level for the world to very high, the same level for china since late january. the w.h.o. emphasizing there's a chance to contain t

i think it is too long now for the fed leadership not just evans, bullard -- to have been quiet. my guess is powell is sitting there working with some very good people to have on the fed trying to design some creative responses. >> is there a chance that they would want -- powell would want to do something, make some kind of a statement during market hours today? is it more likely to wait, digest things a little bit on the weekend, see how futures look, and then do something? >> i don't think so, skochltcott i tell you, it was walsh this morning who -- he has been there in the crisis before he said they want to get to the weekend. they want to get to the weekend. and they would like to make the decision in the absence of this strong downdraft out there although, you remember -- and you guys are old enough to be there, maybe not everybody on my left here, the women of course but when all it took was greenspan in 1987 to say we are there to provide liquidity. >> that's it in a nutshell. >> that was a big deal he didn't have to do anything. >> i couldn't agree more you need a plan o

eugene bullard was already in france before the war started. when we talk about what was life like for americans, african-americans before the war? he was from columbus, georgia. his father got into a scuffle with his boss. they left town. eugene made his way to france. he was a boxer. he joined the french foreign legion. he is interpreted three times in the exhibition. the global war. we are in the gallery. he joined french foreign legion, was wounded at one of the two bloodiest battles, 1916. then he became a pilot, he flew with the french. the continuation of his story, where we interpret him after the war, is also part of that. he owns a club for a short time. he is a manager of many clubs. he is one of the drummers. we have footage in this exhibition of him playing drums. interpretedrd, within this exhibition. he is a key to the african-american experience during world war i, although he served with the french. host: another individual story explored. sergeant thomas shaw. guest: sergeant thomas shaw represents what we talked about earlier

we just had jim bullard saying similar things, and philip lane from the ecb.ere is the reality of it, where people seem to not know what is going on. they are not going to back to work. there's more outbreaks every day, including in japan, where there isn't even a direct link to china from those outbreaks. tom: right. i think we are going to have a really critical moment in the next week. since thetwo weeks end of the chinese new year holiday. china imposed a two week quarantine on the hundreds of millions of people who traveled for the chinese new year holiday. so next week is the week where they are going to be going back to work. i think at that point, there's two diverging paths for china. there's a positive path where people get back to work in factories start operating, and concern starts to come down. there's also a risk that when people get back to work, we get a new stage in terms of contagion, and then some of those risks which the ecb and the fed have so far been playing down could start to materialize. guy: we are going to leave it there. thanks ve

louis fed president james bullard weighing in on the virus concerns this morning.t hq and has that along with the moving target that is where the market thinks the federal reserve rate is going. steve? >> really good way to characterize it, sara. let's talk about the market reacting to comments from the st. louis fed chairman where he appeared to lean against any near term rate cut here is a quote from his speech. further policy rate cuts are a possibility if a global pandemic actually develops with health effects approaching the scale of ordinary influenza but this is not the baseline case at this time the fed is monitoring the virus but is in a good position because previous rates are working through the economy. and to affirm the very aggressive pricing in the market for the fed to act and act soon, here are the probabilities sara was talking about. these are within the last half hour as she said they have moved around 100% chance of a march cut which is the meeting in a couple weeks. but63% chance of a 50-basis poin cut at that meeting. if it doesn't happen at

louis fed president james bullard joined "squawk box" earlier this morning.say about the coronavirus and the impact on the economy take a listen. >> if you think that this virus is going to dissipate and then we're going to have a temporary shock and everything is going to go back to normal, yeah. i think the fed is in great shape and we don't have to lower rates in that scenario >> for more on the virus of course and the impact on the u.s. and world economy let's bring in former atlanta fed president. i don't know if you had a chance to listen to larry kudlow from the nec. still, suggesting economic growth here in the u.s. will be fairly strong. what is your view in terms of the overall impact knowing of course how uncertain everything is right now in terms of the virus and its impact in china and on supply chains and economies around the world >> i agree with both jim bullard this morning and larry kudlow that first it's a little early to tell. and it's a wild card factor but i think we should not panic at this stage that it is going to have a major impact

eugene bullard was already in france before the war started.we talk about what was life like for americans, african-americans before the war? he was from columbus, georgia. his father got into a scuffle with his boss. they left town. eugene made his way to france. he was a boxer. he joined the french foreign legion. he is interpreted three times in the exhibition. the global war. we are in the gallery. he joined french foreign legion, was wounded at one of the two bloodiest battles, 1916. then he became a pilot, he flew with the french. the continuation of his story, where we interpret him after the war, is also part of that. he owns a club for a short time. he is a manager of many clubs. he is one of the drummers. we have footage in this exhibition of him playing drums. interpretedrd, within this exhibition. he is a key to the african-american experience during world war i, although he served with the french. host: another individual story explored. sergeant thomas shaw. guest: sergeant thomas shaw represents what we talked about earlier. what

bullard right that low yields are here to stay? is the flip side of the coin of that permanently higher stock prices >> i don't know about permanently higher we have been neutral on the market for sometime. clearly low interest rates are helpful for pe multiples and the whole story in 2019. lower interest rates surprise change in the fed's policy and you get the multiple expansion. but this year, even with the low interest rates you need to see earnings come through. to move stock prices higher. you know, depending on various other issues, both covid-19 and economic issues, maybe there's more pe expansion but this is about earnings and so far as we have seen from 2019 they oar not coming in so we're concerned about permanently higher stock prices from here. >> paul, let's tack about the action today a little bit yes, you have bond yields including that 30-year at record lows and notable stock prices though are slipping gold is moving higher. i got a lot of emails and comments from people who are very excited about the upward move i

eugene bullard, interpreted within this exhibition. he is a key to the african-american experience during world war i, although he served with the french. >> another individual story explored. sergeant thomas shaw. >> sergeant thomas shaw represents what we talked about earlier. what is going on with the black experience between 1865-1917. he was a buffalo soldier, the ninth calvary regiment. 1891 awarded the medal of honor. his particular story, they were fighting in mexico. they were outnumbered, 3-1. he exposed himself in what we call today, suppressive fire, to allow his comrades to survive that particular battle. he is interpreted within exhibition, a story develops around artifacts. we own his medal of honor at the smithsonian national museum of african-american history and culture. medal of honor as an affecting his image not to highlight him, but the fact that average americans had been serving their country since the american civil war but actually african americans have been serving their country before the boston massacre wh

jim bullard from the u.s. fed saying there's enough accommodation in the system with bit rate cuts last year still working their way through. the fact that rates have fallen so far this week is also a bonus for the economy so the fed does not have to act. david: there is also a question of whether it is the right tool. it was said most of this is a supply shock. on wall street week we have michelle meyer from bank of america making the same point. monetary policy does not usually help you with supply shock. wendy: that is a big part -- michael: that is a big part of the argument against doing something. the argument for doing something is it could also be a demand shock because people stop spending. they are not stopping spending because they have lost their jobs where they think the economy will slow down and they need to save money. they are not spending because they cannot leave the house. that has been the experience so far in china. if it were to be a long-term pullback by consumers, than the central bank

louis federal reserve president jim bullard were right in 2018. the president tweeted about all of this. i will read one of the tweets. i will read part of it. they don't have a feel for the market. they don't understand trade wars this is a tweet from december 2018, after raising rates four times in 2018. the fed has cut rates three times in 2019. now on the sidelines. back to you, melissa. melissa: edward, thank you. back to cornell -- connell in new hampshire. connell: thank you, melissa. we'll talk about the race. the voters are deciding in the state of new hampshire as we speak. senator bernie sanders is looking to win the democratic primary just as he did in the year 2016. he is leading in the pre-election polls with former south bend, indiana, mayor pete buttigieg. giving him a run for his money as he did last week in the state of iowa. chris wallace kind enough to join us here in new bed bored. >> this is not wall street. this is new hampshire. this is what you need to wear. i've been doing this since 1980. connell: you have seen a few. >>

it appeared to lean against any near term rate cut bullard saying they could cut rates if a global pandemic develops, but that's not the baseline case. that followed comments from charles evans who said fed action would be quote premature until we have more data proceeded by fed vice chair claire da on monday who announced it's too soon to speculate whether coronavirus will lead to a change in the outlook. while that's going on, you heard what i said about b of a futures markets continue aggressively price in rate cuts. take a look at these numbers here now 100% probabliy probability of t in march up from yesterday. >> it wasn't there the day before >> but not only that, there's a 49% probability of a 50 basis point cut at the march meeting i want to come back tho that in a second because i want to show you the rest of the tenor out there which shows if you don't get two cuts in march, you would get a 69% probability in april third cut for june 55% chance of a november 4th cut or a full percentage point being baked in former fed governor on squawk this morning reiterating his support for co

louis fed president james bullard giving the markets a mixed message on a rate cut saying, quote, further policy rate cuts are a possibility if a global pandemic actually develops with health effects approaching the scale of ordinary influential, but this is not the baseline case at this time. still, as we look at the fed fund future rate, the market is pricing in a cut of 100%. finally, sitting on global growth and earnings in terms of a wipeout for earnings in 2020, goldman sachs said the same kind of thing yesterday. look at the financials and you can see they're lower across the board, neil. neil: jackie, thank you very much. she was telling us what's going on with interest rates, record lows going on right there and, again, optimism that the federal reserve could cut rates sooner than expected even though a number of fed officials past and present on this network and elsewhere have been talking about, you know, don't get ahead of your skis here. whatever the case, the fed fund futures contract seemed to be calling for at least a quart point cut next -- quarter cut point next month, a

louis fed president jim bullard on the program last week he said that he expects to see these low interest long time to come. that does raise a lot of questions. if that happens about what this means for the stock market, what that means for banks, what that means for insurance companies, which you touched on in the letter, too. >> it's bad for insurance companies, but it's good for stocks >> bad for insurance companies what happens to the insurance companies as a result? are they getting more -- >> well -- >> some insurance companies have - >> well, the ones that really get hurt on it are either life or annuity companies that have promised returns the property kausht business doesn't promise returns. they still hold money so it hurts them but if you promise someone an annuity that's going to pay them 3% or 4% and now you find you're reinvesting your money at 1% or something, you know, you're going to disappear. >> are insurance companies being forced to make riskier and riskier bets >> well, they shouldn't. i mean, the answer -- if you need to get 3% and you're only getting 1%, the answer

ashley: from james bullard, head of the federal reserve of st. louis. he kind of echoes what we heard from other fed members. quote, further policy rate cuts are a possibility if a global pandemic actually develops with health effects approaching the scale of ordinary influenza, but this is not the baseline case at this time. so he also notes that the virus appears to have stabilized in china. so that's another dampening, if you like, comment from the fed with regard to rate cuts. stuart: let me recap what's going on. the bottom right-hand corner of the screen really tells the story. we are down 570 points on the dow jones industrial average. look at that. left-hand side of your screen, we are down 220 points for the nasdaq composite. we've got sharply lower stock prices. we've got sharply lower yields on treasury securities. we've got a sharply lower price for crude oil. that's a wrap-up of the markets. we are still by no means out of the woods. jonathan hoenig, come back in again, because look, we are looking at these maga stocks, looking at the big n

about for our clients the fed would be there, and this event, this coronavirus real will is, as jim bullard put it, kind of a peso problem it's a freak event discount. we're ready to go. why kind of tell the market we're not to be a slave to you? >>> particularly i think loretta and others, i don't think that helped the market. >> mike, what did you make of the fact that we saw the vix rise again >> it's not really the level that tells you anything, unless it really eastboundably peaks and starts coming down significantly. >> bob chapek will be the ceo of disney he most recently served as chairman of the parks experiences and -- bob iger will assuming the role of executive chairman and creative endeavorsly providing benefit , at the end of december, now 20-21, iger had extended his contract numbers times in a press release, iger saying the direct-to-consumers businesses and be grace of 21st century fox, he believes it's the optimal time for the transition chapek will be at the helm, he was most recently running parks and the studio he has been in the various roles. it seems like being selec

been surprised that so many fed officials and guys in the back if you have my wall on this, that bullard today seemed to lean against the idea of a rate cut until there was a global pandemic. that charlie evans, the chicago fed president and there it is right there. well done in the back. there's some of the comments that have been made. all of which have essentially leaned against the idea of a rate cut rate cuts are a possibility if there's a global pandemic. evans says it's premature until we have more data and one says too soon to even speculate well, i think powell may have changed that just a bit by saying that we were ready to use our tools here >> steve liesman steve, thank you sbl pleasure >>> let's turn now to the banks. wilfred, you've been taking a closer look at their performance this week. not pretty like everything else. >> not pretty and all this talk of rate cuts hurting it further. just want to reassess which of the banks have fallen the most over the course of the week and why. banks as we said falling sharply. the bank index is now down 17% this week. it briefly touch