michael: well, that is going to be a tough communication challenge for jay powell. you had to think that the decision would be difficult to make because they are committing to low rates, even lower rates now, forever, basically. you can't come up with a situation except an outbreak of inflation that nobody can see where they would be raising rates. they are going to be forced into keeping rates at this level. with all the problems that you get, trying to transmit monetary policy into the economy near the zero lower bound. vonnie: i want to do a reset because we've had quite the phenomenal 25 minutes. at 10:00, the fed came out with an emergency interest rate cut of 50 basis point. they did a double cut, possibly the most that they could have done in an emergency decision. it turned stocks around. we have stocks in europe still higher by about 2% for the major indices across europe. here in the u.s., we had indices plus 2%,1% to almost and no back down to about positive 0.5%, or thereabouts. 1.0914%.ar yield at interestingly, we are seeing gold futures also rise high

that is the message jay powell reiterated today. what you are looking at is the response to unexpected developments with the hope that doing this will extend the expansion for the for siebel future. vonnie: matt bosler, fed reporter, thank you for jumping on that. i also want to thank our panel of carl riccadonna, chief economic at bloomberg economics, and marilyn watson from blackrock. many thanks to you coming on and spending all this time with us on an interesting day for markets. coming up, it will be super tuesday on "balance of power" with david westin on bloomberg television and radio. this is bloomberg. ♪ david: from bloomberg world headquarters in new york to our tv and radio audiences worldwide, i am david westin. welcome to "balance of power," where the world of politics meets the world of business. the brief today is all about the fed. peggy collins in washington on what the fed did and why jay powell says they did it, and abigail doolittle with me in new york on the strong reaction in the markets. peggy, lay out for any

maybe not jay powell and company.the markets, fed fund futures, because of the big boys were they more stressed in the small retail investor prior to yesterday's bounce >> there are signs of it global forecast gdp and u.s. gdp forecast came down big from a lot of the street shops towards the end of last week the thing that hasn't come down yet is earnings forecasts. not much in terms of earnings forecast productions but they're coming next. >> now, we've had many ex-fed officials on one constant theme is, get in front of it, throw the kitchen sink at it early what happened with the markets supposedly being able to digest all this information isn't that what the market's job is, to digest this if earnings are meant to come down, if the economy is meant to slow, why would the fed want to inhibit that >> i can't disagree with you, rick i think a lot of the rally that occurred from early october to two weeks ago was based on nontrade deal, trade deal, and importantly the upturn in global industrial production, which this

between now and then, what will jay powell will be watching? at was a great question asked by our team and washington, d.c. y powell said i am watching the treasury market. at the beginning of the press conference, he listed the treasury markets and mortgage markets. we are seeing lack of liquidity. these are things he is watching. that is number one. here is how he put it, jay powell. atwe are going to be looking the treasury market function. we are going to be looking to see that financial markets are returning to more liquid, more normal functioning. kathleen: an important point. people are saying the fed can't cure the coronavirus with a rate cut and the fed knows that. but they know what is happening is not so much that they think they can get the economy going right now. can't get the economy going when people are staying home and can't shop or do anything. but you can prevent the coronavirus crisis from turning into a financial crisis. that is very important. something jay powell added to his list of what he is watching now is how the vir

guy: did jay powell explain why this move will address this problem? he admitted this will not address supply chain problems, this will not stop the virus from spreading. peggy: it was clear the fed was saying we are doing what we can to create more liquidity in the system. banks continue to provide credit to small businesses. iswas clear today that it coordinated fiscal policy that will be able to help most in the situation in terms of the coronavirus and the health policy. health experts will be what is inded in terms of the -- terms of helping a situation that is a public health crisis. guy: -- david: he went while out of his way to say this is not a political decision. at the same time, steven mnuchin was on the call. now we have the president saying that is nice but that is not good enough. peggy: that is nice. trump tweeted he thought the fed should cut even more. there was a hearing this morning where he seemed to be positive in terms of what the fed was doing. as jay powell said earlier and we are hearing from experts in the field, fiscal polic

jay powell and the federal reserve take action to shelter the u.s.my you can always watch or listen to us veli on the app. we'll be back in just a moment awesome internet. it's more than just fast. it keeps all your devices running smoothly. with built-in security that protects your kids... ...no matter what they're up to. it protects your info... ...and gives you 24/7 peace of mind... ...that if it's connected, it's protected. even that that pet-camera thingy. [ whines ] can your internet do that? xfinity xfi can because it's... ...simple, easy, awesome. [ barking ] >> it is grieat the federal reserve recognizes the weakness. this is like, wow, okay, 50 basis points i guess the claims are going to be bad now i'm more nervous than i was before >> welcome back. that was jim cramer yesterday after the fed announced the interest rate cut. the first largest. you can see the most recent three events go back to january 2008, october 2008 and yesterday. as a result, futures indicate a higher open today trying to make up for a steep selloff yesterday. those

as i said earlier, jay powell cares a lot about corporate credit, knows a lot about corporate credit, being from a private equity background n 2018 there was two months in a row that you couldn't issue a corporate bond that led to the pivot that powered the market in 2019 we had seven days in the investment grade corporate bond market here where you couldn't issue a bond that led to the fed cutting rates. clearly it helped the market clearly it helped the liquidity in the corporate bond market now it is almost like today with the stock market dropping and the high yield going back to its wide it is like the corporate market pounding on the door again that the fed acted in the history of the last 20 years when after they do an emergency intrameeting cut they make another cut at the next meeting. i think that makes the most sense. >> what about from the fiscal side you are not the only one who suggests that that's needed. a conversation i had with a ceo of a very large firm suggested the other night is that the reason the market didn't like what the fed did is because that's all that it

jay powell seemed to contradict the president's idea of reopening the economy by easter.t will be a big challenge of course because the number of states are getting different opinions and different epidemiologists saying to be careful. we had the world health organization and g20 cautioning a surge in infections if you go back to work or school. to quickly. i'm sure this is being put to the test, but we have to see what happens overnight first. stimulus package, $2 trillion u.s. the house is democratically controlled, it might be a little more rancorous to pass, but donald trump is urging urgency on the vote and he would pledge to sign it almost immediately. we have seen how the markets have responded in anticipation. meanwhile, the situation in the u.s. still looks fairly dire u.s.se now we have infections surpassing china. more than 85,000 cases in the u.s. out of 531,000 globally. if you look at u.s., china, italy and spain, the four main epicenters, that accounts for 57% of the total worldwide. bit of a harbinger for other nations perhaps. not give up your precautions

michael: jay powell said last night that we do not care what you call it. it is hard to separate this out from the moment from everything else they did, but over the period of time they are doing it, it will help hold out, particularly longer maturity. taylor: are negative rates in evitable at this point? michael: you get into a debate about that. in terms of market rates is where you might see, especially in the short and, negative rates in the united states. since i left here last night and came back this morning, rates have gone up a little bit from where they settled after the fed action. but negative rates are probably not going to happen in the united states. the fed does not want to do that. they do not think it is particularly well even in europe, and they do not think it will work in the united states because of the money market system. we have so many money market funds that will not be able to open if the fed went to negative rates. mckee, on topael of anything that central banks are doing. let's get straight to the berenberg senior economist, an

ecb, but lot about the everyone wanting to get their hands on dollars sort of making us wonder if jay powell is more of a central banker to the world. jay: in a sense, they are because the dollar remains the world's premier reserve currency. institutions around the world borrow and lend in dollars, so this is what these swap lines with central banks are about. germany, younk in are lending in dollars, so you need dollars. the ecb does not have a good way to get dollars, so what the fed is doing is by lending to the ecb and other central banks, --ugh central banks lend those central banks lend directly to counterparts. in some sense, the central -- the federal reserve is the world's central bank. at what: if you look the central banks have done so off ofe they based financial crisis or is it too soon to tell? jack: they have done a lot so far. the emergency move the federal reserve made overnight rattled markets, the equity markets, but i think that they need to keep liquidity flowing, need to keep dollars in the hands of those that need it. from that perspective, they are doing the right thi

someone said, when jay powell spoke, the markets were not comforted. perhaps if bernie sanders does very well super tuesday, that might give investors another reason to worry. d.c. toame down to contribute to our coverage on super tuesday. it is extraordinary how little people seem to be thinking about super tuesday. would have guessed that is the second-biggest story of the day. i am curious, when you look at different asset classes, is super tuesday political risk a thing or is it getting totally swamped by the virus? still has to, it do with some of the stickiness related to super tuesday. on the other hand, i was talking to someone who was saying markets can only really freak out about one thing at a time. in terms of asset classes showing pain, the fact that the is up, ip -- vix think this is telling you that there is still a lot of embedded concern. that is a story perhaps for tomorrow, because we only really have futures telling us anything tonight. romaine: when you look ahead at the potential risk, what are the main indicators that you are kee

the move came after president path toid he has no demote jay powell, but could do so. fed pathetic and slow moving. here in new york, the city is taking drastic measures to curb the spread of coronavirus. threes are ordering the closure of entertainment shutters -- centers, shutting nightclubs. food establishments are being limited to take out and delivery only. the move comes as virus cases approaching 3500, with at least 34 -- 64 people having died. the latest economic data from china are worse than the bleakest forecasts. activity declined sharply in --uary, with many factory manufacturing and retail slumping for the first time. it's four times worse than forcing. retail sales plunged by more than 20% while the unemployed it rate jumped the highest on record. global demand for oil is in freefall, heading for the largest decline in history as the coronavirus further weakens already fragile consumption. fear that itowing may outstrip the recession of 2009 and may even outstrip 1980 and the second oil crisis. oil has fallen by almost 50% this year. global news, 24 hour

fed chair jay powell said he is prepared to cut rates if necessary.n japan meanwhile the boj offered to buy $4.6 billion in sovereign debt. when you look at what a lot of banks are doing, are they saying recession is very, very likely? >> certainly, the financial markets, turmoil of last week in tightening financial conditions. what you are seeing is central banks, led off by jay powell on that signal alert. friday, we get it. we are on it. the bank of japan and bank of england, very much on this. >> it looks like we are going to get a meeting tomorrow that could lead to coordinated fiscal action as well. >> there is nothing that cheaper money can do to cure any of us from a respiratory virus, but we have had an asset price shock. central banks can attempt to address that and they probably should. and that is what the markets will want to hear. >> quite a rally in the markets here today. today. 4.6 on the s&p 500. the gain on the doubt, the biggest since march 23, 2009. >> four more patients have died in the american state of washington. and a top u.s

the high assessment we saw talking about with four million some of this cobb from commentary from jay powell jay paul is making clear, that the fed will do anything that in its power, and even expand power to provide liquidity to these markets to businesses, i do want to add, that in this aid package this rescue package passed by the senate about roughly 450 billion dollars is in that package, are will go into the treasury exchange stabilization fund, that money is used to backstop losses, that the -- in the federal reserve uses 13.3 power in the federal reserve act fed can open even more facilities to provide credit and essentially rescue money to businesses far and wide. and one of the ideas at fed they are going to be doing something for smaller businesses for medium i sized businesses not just larger corporations that is how that money will be used. and about 450 billion dollars turns to 4.5 trillion dollars in liquidity provided by the federal reserve. >> because like five times leverage or something, by the way, we haven't spoken about rates in a bit, but we are a negative when you loo

steve mnuchin is not wrong, nor is jay powell saying we could snap back. if you want to keep these jobs and businesses in place, you've got to get on it. >> you mentioned jay powell, the fed chair. he was actually on the "today" show a few hours ago. this is what he said about the state of our economy. >> we may well be in a recession. but again, i would point to the difference between this and a normal recession. there's nothing fundamentally wrong with our economy. quite the contrary. >> it should be pointed out, steph, for folks that don't follow these kinds of things, that the fed chair doesn't really do tv. in fact, this is his first appearance on the "today" show in the history of the broadcast. he's on national television all but admitting that we are, in fact, in a recession, but he's trying to reassure american people. talk to me about the significance of that. >> okay. here is to me the most significant thing, that jay powell was on the "today" show. never in the history of america's morning show has the chairman of the federal reserve come on te

fed chair jay powell talking on the "today" show says that we're already in a recession, but the fed is not out of ammunition, and the fed can lend any place where credit is not flowing. and then, here's what he said about the outlook. >> you may well see, you know, significant rises in unemployment, significant declines in economic activity. but, there can also be a good rebound on the other side of that and that's actually one of the main things we're trying to do, by assuring the flow of credit in the economy and keeping rates low, is to assure that that rebound, when it does come, is as vigorous as possible. >> hey, kelly, i just got a new statement here for the new york fed, where they said they're going to buy agency mortgage-backed securities, quote, in the amounts needed to support smooth market functioning. and they directed the desk -- this is the fmoc telling the desk at the new york fed to include purchases of agency commercial mortgage-backed securities in such purchases so we knew they were going to buy these things i guess we didn't have the instruction of, in the amou

. >> so the president has been, again, blasting jay powell, the fed chairman, calling him things liketions pathetic, slow moving, putting us at decided economic disadvantage, so the federal reserve pumped $1.5 trillion into the financial system. interest rates are at historic lows, biggest rate cut he announced before the financial crisis, what more should jay powell be doing? >> well, i think as you know as matter of policy i speak to jay powell almost every single day it would be inappropriate for me to make comments on specific policies. i can assure you, he and i are in discussions every day. they have certain tools, i have certain tools. certain tools were taken away. i'll go back to congress and ask for and again, we're fully coordinated. >> do you share the assessment of the president, pathetic, slow moving? >> again, as you know i'm not going to make comments on that it will be inappropriate as treasury secretary. >> i understand. the president also suggested again on friday that he could fire powell if he wanted to, put him in another position of the fed, is that right? that'

where is your bazooka, jay powell? i think jay powell fired today.we just got a few more breaking lines crossing the bloomberg. more details from erb de blasio. new york city is to order hospitals to cancel elective surgery. also getting a line from under armour, saying they are closing all of north american stores from march 16 through march 28. i want to get back on this latest detail from mayor de blasio. this is what we saw happen in china. elective surgeries are no longer happening at hospitals to the point where significant illnesses and therapeutics and treatments required by patients that were not coronavirus-related, life-saving treatments, were not able to be given because of how over qualm the health -- how overwhelmed the health system is. michael: the fed cannot do anything about that. and the fed is worried about that. you had the new york governor today, andrew cuomo, suggesting we are approaching capacity in new york state on emergency icu beds. that is what happened overseas and that is what happened in italy. problem.d be a real it

he's very greateful for jay powell the president has finally recognized that mr. powell has gotten ahead of things, that's very important i think, again, the stimulus will be focused on small businesses and keeping the working people in jobs liquidity for small businesses is a cheap priority. the cheap priority is about putting food on the table for individuals. i think that a lot of people who watch stocks would say what is the impact of that on stocks i would say nothing. they're not trying to save anybody. they're trying to make sure the employees get paid that san attitude that republicans and democrats will agree to and i think that secretary mnuchin is -- because he was a trader, because he understands the markets, he has a touch to recognize what speaker pelosi likes, it makes it so that there's more unity down there than it may seem >> the buybacks, is that mostly about optics, not balance sheets >> it's hard to borrow with a discount window to buy stock the banks are going to have big yields the banks, i think, are a better place to go than oils. i don't k

-- jay powell could step up jay should call. jay should have a press conference and say listen, we understand there's a lot of chaos out there, but we're not going to let the financial part of our country delay getting kits so everybody can be tested. we're going to make sure that you don't need to draft that credit line, but if you do it, we'll guarantee it and you'll return it after people are back at work. and that way we take it off the table. >> carl. >> and can lagarde make concurrent reassurances? >> i don't know why not. you don't want many companies filing bankruptcies because they have something that maybe will pass or be solved except then those companies will be in liquidation or reorganization. that's not the way our country works. our curreountry say it's all sym go everybody gets a test kit. it's hard to get test kits now, but testing, testing, testing. in the meantime, the federal reserve steps up and treasury steps up and makes it so your company can still pay you. and that takes something off the table that is

number two, early reporting that fed chairman jay powell and mnuchin will be, quote, coordinating a conference call to help orchestrate a global response to the coronavirus outbreak both good news for investors initially. but number three is giving some pause. drafting a statement from the g-7 makes no direct calls for fiscal or monetary support amid the coronavirus outbreak earlier, president trump weighing in on the crisis and the spread tweeting, australia's central bank cut interest rates. they reduced to half a percent, a record low other countries are doing the same thing, if not more so our federal reserve has us paying higher rates than others. we should be paying less tough on our exporters and puts the u.s. at a disadvantage must be another way around jerome powell has called it wrong from sad day one, sad that was a lot of stuff coming from president trump about the central bank here in the united states reaction from asia and europe so far has been interesting julianna tatelbaum standing by in london with the latest. we are seeing a lot of green on the screens. >> indeed, that inve

alix: jay powell said the virus poses "evolving risk" to the u.s. economy, signaling they could be ready to cut rates if needed. president trump urged the fed to do more. pres. trump: our fed has been a follower. we need a fed that is going to be a leader. we should have at least the same rights, and ideally lower, than other countries. we shouldn't be paying more. alix: joining us now is michael mckee. michael: for the fed, it seems like it is no longer a question of whether, but when and by how much. chairman jay powell opening the door friday with that simple statement, promising, "we will use our tools and act as appropriate to support the economy." by the time he spoke, markets had already priced in almost four rate cuts this year. the question is, do they cut by 25 or 50 basis points? not a consensus on wall street yet, but people are moving in that direction. if you look at what happened overnight, we are seeing some backing off from the number of rate cuts it is thinking about in march, at least according to fed funds futures trading. the qu

equity investors responded to jay powell?n places like india, even in china, if they are getting more money in their pocket, they will respond. you see a pickup in the economy. that is the why the fiscal response is important. infrastructure spending is critical in many of these countries. you have more employment. unemployment is a real issue in many of these markets. the reason why you see these countries growing out of very low rate in south africa, for example, we have low economic growth. if you can get these people working with infrastructure projects, you can really see a pickup in the economy. that is the reason, by the way, the fiscal response is very important. if moody's bites the bullet and we go to junk on south africa, is it all in the rand price at the moment? how much worse could it get? is not all in the price yet. there is a lot of hope this is not going to happen. at the end of the day, south africa is quite a great country. they have the rule of law. it is quite peaceful in many ways. they have problems, b

you are looking not just at jay powell but what was in the aftermath, a never before seen low in ther treasury yield. t

you have had the rhetoric from jay powell, from garuda -- governor kuroda, the words being used by thoses is about ample liquidity and appropriate support and appropriate response. who else has got the firepower to deliver? the fed of course. the coronavirus has spread around the world. it is shifting gears from goldman sachs. it will force the fed's hand. the morning call. >> goldman sachs, one of the most aggressive in terms of what they expect from the fed, they revise their forecast after jay powell put out that statement friday. they see a 50 basis point cut this month and 100 from the key interest rate by the first half of the year. one of the most aggressive calls we are seeing from the street, after powell friday suggested global central bankers are intensely focused on the downside risk, what they are also noting is they can say we could see coordinated responses from around the world. something we haven't seen since the global financial crisis. feds: let's see whether the meats up to them market's pressure. tim graph from state street. goldman's saying you have got 100 basis po

that is when the federal reserve, jay powell will hold a news conference.s taking questions? ashley: we hope. stuart: somebody is going to ask him why now, why so much? as mike murphy said, what do you see that we don't see? why did you do this? that is what they are going to ask. >> the answer will be very important. more important we have selloff based on the coronavirus and if we're getting past the coronavirus. on other side we have accommodative fed injecting more stimulus to the economy, i think net-net the idea you want to buy a selloff is bigger today than it was before we got this fed rate cut. it is a great opportunity. you don't need to chase, if there are quality names out there people need to put money to work in them. stuart: treasury secretary steve mnuchin is on capitol hill. he is he have iting. he just said the treasury will use all options to help any sector of the economy hurt bit virus. ashley: these are words of comfort basically and to try to create some confidence. stuart: wait a minute. the 10-year has just gone to 1.09%. literally

we've got jay powell basically trying to communicate with main street as well.egarding the relationship between what they are doing and what is happening with the claims number and the unemployment numbers we are seeing, are we moving too slowly? we all got really excited about this to trillion dollar program taking place in the united states, but the bank of england highlighted there could be lasting damage. there's been a lot of criticism over here that the covering program to help small businesses is simply too complicated and too slow. in the united states, it is going to take a long time for checks to go out and for small businesses to be helped. are the government programs we are getting simply too, located and too slow to help the economy where it needs it, right here, right now? michael: i don't think anyone would argue with that, and that is a historical norm. andal policy takes a while, monetary policy can be put into place immediately. there just is no demand right now. the fed and the ecb have instead turned their focus to keeping the markets moving,

what does jay powell say to president clinton to convince monetaryyou need policy to kick in? i think jay powell will explain why the fed has cut rates once again, but explained that there are limits to what the federal reserve can do. every economic situation is different. you need to use the right tool for the task at hand. the right tool for the financial crisis was to make markets work again. so there was a big role for the fed. this is not really about markets being dysfunctional. this is about the real economy and a high degree of uncertainty. week, when the fed meets that you talk about the real economy, the fact that people are not riding the subway, that some construction worker cannot go to work because he cannot buy a mask to do his job because people like you and me are hoarding them all. the problem is that the economic data being released does not show much impact because it is so recent. the last employment report is actually very strong. the fed does not have a current set of economic indicators measuring what is happening today in real time. i thick is difficu

did jay powell make a mistake?ustan: secretary summers is right that anytime you get the fed leaking information or foreshadowing how we are thinking on monday doing this, you open the door to rapid trading and dealing and information which can be problematic. the fed is not alone. you have seen around the world central banks trying to come forward and saying we see this could be a problem and we just want everyone to know that we are on it and are willing to cut rates. that makes me nervous is the double whammy -- that first we all know the fed that a shorter runway because rates are starting lower than they normally are and trying to fight recession. in the second is -- a virus induced recession in which people just don't want to leave their houses for a couple of months or so as they wait for the virus to go by. that strikes me as a very different scenario than a normal business cycle. i don't know that tax cuts or rate cuts or maybe we should be thinking about monetary and fiscal stimulus, but i'm a little afra

this as goldman sachs is out with another bombshell note saying jay powell will act sooner rather than later plus, two more airlines making chan changes as virus hits. cooperman taking on trump over the federal reserve in times of crisis "worldwide exchange" begins right now. >>> good morning and welcome to the show i'm dominic chu. >> announcer: to brian sullivan. with me the entire hour, peter bookfar wiright now stock futur indicate what could be a nice open to the upside, about 175 points within the last hour we were up 400 to 500 points implied. we'll see if that moves. the dow jones futures have been going from losses all the way to gains. at one point we had a range of 1100 it's been a volatile, possibly preshadowing the market. ten-year government yields we gone down to 1.0 3 year, setting the record two-year treasury notes, 1.2%. the session low for american-based crude is $43. you can see $45.53 the last trade there. we have seen a bit of a downside move in the last hour or two let's watch what's happening a rebound in under way, in asia and europe as well as investors hope f

the shouts of joe biden and jay powell may have you asking, should i buy or sell?a behavioral finance specialist. an idea whose time has -- has come. response makes his case for his etf just as the bull market unravels.

just to update you, federal reserve chairman jay powell just sat down for a live interview on nbc's "y show." he really tried to pass onto the american public that we will see a vigorous economic rebound once the coronavirus outbreak has passed area he described all of the action the central bank is taking, and's and mortgages and car loans are among the areas where the fed can step in. he also said the fed is not going to run out of ammunition in this fight. he really wanted to drive that point home as well. pretty unprecedented for the fed chair to go out and talk to the american people so directly. coming up, a then versus now situation when it comes to electronic trading. we will speak to rick mcveigh, marketaxess chairman and ceo, about the difference from 2008 and what that means about trading volumes, as well as liquidity. in the markets, you are still seeing s&p futures off just a touch. it feels like the biggest winners of your the last couple of days are the big winners this morning, despite that stimulus plan out of the senate. you are still seeing very strong buying in the

i can tell you that i am in daily conversations with jay powell.ing at the tools we have and they are looking at the tools they have. certain tools were taken away from both of us after the financial crisis with dodd-frank. if we need more tools, we will go back to congress and get bipartisan support to get that. chris: and in 30 seconds, very quickly, when people are scared to go out to a restaurant or to get on an airplane, if you were to cut the interest rate half a point, is that going to make any difference? >> well, let me just say, again, and i want to be careful because i don't comment on specific fed actions, but the market has already reacted. our treasury borrowing cost on a short-term basis is down to 25 basis points. we have a lot of flexibility to inject things in. people are focused on interest rates. people are also focused on other actions. the fed putting a trillion and a half dollars into short-term liquidity was obviously an extraordinary move. chris: we will leave it there. secretary mnuchin, thank you so much, obviously people

we know jay powell really wanted to do it in 2020. is this going to make it a lot tougher, if not impossible? mr. bullard: for those that want to interpret this as a pure supply shop, they've got some explaining to do, unless they are also willing to say that inflation is going to go up a supplyhat is what shock would typically be doing. that would be welcome from the point of view of the committee because we have been trying to get inflation up towards target. i think if we got that kind of development, i'm not really expecting met, but let's suppose we got some bottlenecks and some pricing that was enough to drive inflation somewhat higher. i think we would welcome that and accept that as part of the shock. when you at a time maybe don't want to rely so heavily on rate cuts, there's been forecast from fed officials that the liquidity provided through repo operations is going to be wretchedly tapering in the first half of the year. would this be a time to go in the opposite direction and be more generous, and make sure there is lots

announcements of this kind that -- what that gives sure shrift to is the idea as emphasized by jay powell, that it is the -- tony fauci as well, it is the virus that will determine when economic activity can resume. one thing i think people can take comfort from and christine was playing that sound from jay powell earlier is we do seem to see very coordinated central bank interventions around the country. today, president trump is going to be on a conference call with other g-20 leaders, he was asked about that last night, the question of what kind of coordinated response and he said, well, i don't know about coordination, we're going to have a phone call and a lot of these people i like. that was not in -- of itself very encouraging sign about the coordinated virus response. however, the united states has taken the fiscal step that is most needed right now. >> john harwood, christine romans, julia chatterley, again, i don't think anyone a year ago could have ever imagined seeing that number that is on the screen right now. 3.28 million filing jobless claims in a single week. thank you fo

reporter: neil, i am told that president trump had not spoken with jay powell in the last 48 hours. i was, kind of a time frame myself and another reporter put forward here at the white house. hadn't spoken to powell in the last 48 hours. it is also my belief. i am led to believe that the white house didn't necessarily, not didn't necessarily, did not know about this rate cut move at all. what i can't necessarily nail down at this point is whether or not the president had a head's up and whether or not the treasury secretary, steve mnuchin, had a head's up. as you know was on the call early today with powell at the g7 finance ministers meeting. our team on capitol hill spoke with the treasury secretary. fantastic team. i asked them to ask the secretary those very questions, whether or not there was any sort of head's up and whether or not powell told him, mnuchin told sally up on the hill, i speak to chairman powell on a regular basis and i won't comment on our conversations one way or another. in any event, neil, the president here at the white house has been asking for rate cuts. a

fed chair jay powell surprises the market with a 50 basis point cut. uncharted territory. >> i see another 15% decline from where we are now in stocks. alix: the market speculates the boe could also issue an emergency cut. michael: we got adp today, jobs day friday. you can forget those because it is old news. we might not see anything until april because it will take a while for anything to get into the data, as infections are just starting to ramp up in the united states. alix: now support is starting to mount for fiscal support. mr. biden: for those who have been knocked down, counted out, left behind, this is your campaign. alix: former vice president joe biden stages a huge comeback as wins theernie sanders california primary. sen. sanders: i can tell you with absolute confidence we will win the democratic nomination. kevin: this was a big night for former vice president joe biden, who beat expectations and was even able to pick off texas in the super tuesday prize, but it is not over yet. alix: elizabeth ryan and mike bloomberg face questions on

lot of notes to our clients as this was developing and as the announcement came last friday from jay powellready for something big and fast and likely to be i think we put it out there, something like 50 to 75 and former guidance. before the meeting so i'm happy to tell you what i kind of think is right or wrong and i think as you said, this was probably a better thing to do than not to but in general, we're just trying to get this reaction and i think we really i think we have a pretty good handle on the reaction i think they've been pretty clear so i'm happy >> let me put it this way. you're right you've pretty much nailed what the fed is going to do, but let me put it to you this way. are they still doing the wrong thing if if they're goal is to calm down the markets here and fix the problem right now? if your clients are saying what's going to get the ten year yield wak up, the economy on a more solid trajectory, it looks like target and fiscal stimulus and help would have done a lot t more good than this rate cut, but you seem like you're saying no, this rate cut will help in the long

jay powell cares about the stock market, but jay powell needs to care about the overall economy, and that's what he is looking at here. >> stephanie ruhle, great to get your insights. thank you so much. >>> coming up, president trump's claims of coronavirus vaccine coming soon, but again, that's at odds with what everyone else in the administration is saying. and health experts around the country as well. later, we ask two of the experts where we are fighting coronavirus in the u.s. >>> first, there are now two cases of coronavirus confirmed in new york and two local schools are closed. we are asking government officials what they're doing to combat the spread. new york governor andrew cuomo talks us live to talk strategy. don't go anywhere. you're watching msnbc live. we are live in austin, texas. >>> welcome back. a big election day question is whether coronavirus will keep people from the polls. the number of states expanded to 15, a second confirmed today in new york. officials from westchester county announced 12 other individuals are quarantined as precaution. today, governor a

i think jay powell is right. i think a lot of other folks are right.n territory at this point. just imagine when the 3.3 million unemployment number came out this morning, if we were off 1000 points today, no one would blink an eye, we would say it is because of that. instead it is almost the exact opposite. cheryl: at one point we were out of bear market territory, intraday anyway. that hasn't lasted. think about all the politicians, charles, they have all opinions where we're at. at the end of the day it is about the economy. i think the biggest concern we forget to talk about, we are a consumer driven economy. 70% of our economy is consumer spending and i'm wondering how long that will take to come back? i think that is kind of a worry for some. are you worried about it? >> i'm not worried about that per se. i am worried where we go. retail names will do extraordinarily well. after this hit i can go to costco. there are a lot of retailers i cannot go to. ironically the weakest, most precarious retailers out there. people are losing their jobs. model

get the treasury market working and also to try to alleviate some economic impact of the virus jay powell who yesterday called an emergency press conference after the fed met in the afternoon on sunday. >> the action we announced today will help american families and businesses and, indeed, our entire economy weather this difficult period and will foster a more vigorous return to normal once the disruptions from the coronavirus abate. we will continue to closely monitor economic and financial developments and their implications for the economic outlook. >> so, i think the question of the morning's going to be, why did it have such a negative effect i talked to some principals in the treasury market yesterday, and they thought that what the fed did could be sufficient to bring down some of the spreads that were out there. i think, though, that nothing is going to address really the principle issue, which is the idea of what's going to happen to the economy i asked -- i asked powell whether or not this meant a recession, and he said certainly a weak second quarter but the virus numbers will

jay powell never disappoints the market.otentially 100, but i think some people in the fed that will resist using the last bullet they've got. the fed is never going to go negative, at least in my mind. once they do four, they are done. collin: we think it pulls the whole yield, whole curve lower, so maybe short end before long term. we have heard this a lot over the last two years, the lack of diversification benefits that treasury provides. we hear from the stock bulls saying they are not going to provide that benefit. if anything, the past few weeks are proving that is not the case. we think they will continue to provide that benefit going forward. jonathan: right now, stocks are all over the place. positive on the day but volatile for the week. you are sticking with me. coming up, the auction block. issuers looking for opportunities amid the surging volatility. that conversation is coming up next. this is "bloomberg real yield." ♪ jonathan: i'm jonathan ferro. this is "bloomberg real yield." i want to head to the auction

jay powell said the fed is closely monitoring the situation and will act as needed. stocks have the worst for the week with the dow and nasdaq and s&p 500 all in correction territory or down 10%. the dow and s&p seeing the worst weekly decline ever. american airlines is waiving change fees on tickets amid the virus outbreak. american will waive fees up to 14 days before travel for customers who tickets through sunday and march 16th. the ceo of united said its airline will cut additional flights and united has cut flights to asia and suspended service to china and hong kong through april 30th. and walmart and verizon starting with a pair of sources here, the "wall street journal" reporting that walmart will launch video chats with doctors and realtime medical data. it could also share your information with the clinic to auto register when you arrive at store and tell employees to restock any products you pick up. it would also provide faster wireless connections for the rest of the store. back to you. >> that sounds good. >>> we also have business news. mcdonald's. >>

go to the store those items on even on the sounds to be able to buy someone a movies over here, jay powell isn't picking all of this up for herself bottled water melts. >>canned goods soups the pre med student at unr is launching a program called shopping angels expand that you know something i've been focus on him brainstorming pretty intensely for the last 2 days, no delivery fees, no extra costs powell just wants to help those who can't leave their homes when you card nate with us we'll give you the name of the volunteer who's offering to pick up your socks and you'll have them on your pickup order. so that we can go out and get those groceries to you go into one store. >>could take could be an all-day assessed for now though a person you know they they don't have a lot of money to spend on gas and you know a lot of energy to drive around told different stories only to find out that they can even get the basic supplies that they need to last them for a couple weeks. we've gotten toilet paper paper towels cleaning supplies anything you might need to get you through a couple of weeks. >>p