>> kashkari: it is.eep in mind, treasury bond prices are still very high relative to history. they've just been just not quite as high as they were a few weeks ago. so they still are viewed as a very safe investment, very attractive for a lot of people. but this fear of where the virus is going to go is leading people to say, "i just want cash. and if that's cash under my mattress or in my safe, i'll sleep better at night." >> pelley: what's it going to take to get the bond markets working again? >> kashkari: i think a combination of factors. i think congress taking bold action to say they're standing behind the u.s. economy, the $1 trillion stimulus they're talking about. i think that'll help. i think continued actions from the federal reserve will help. and i think more confidence that the health care system is catching up to the crisis. >> pelley: this past sunday, the fed dropped interest rates nearly to zero. then every day last week it announced emergency lending programs. it pledged to spend at le

. >> peter, i saw kneel kashkari -- joe kernen you didn't say hi to me. >> joe, i'm sorry. didn't, of course, see you i didn't, of course, see you i znt kndidn't know you were the >> the point be about treasuries is a good one. it can change at any time, obviously, but i did watch kashkari and scott pelly asked him, i had to laugh, he said, you know, nobody is willing to buy our bonds now. basically saying that they're worried about buying our paper and kashkari said, you know, the 10-year is at .8 of a percent. i don't think -- >> somebody thought it was funny. >> why people go on -- fine, you get a much wider audience on "60 minutes" but you're going to get questions and comments from the people on that show. there is money still moving into our treasuries i mean -- not necessarily moving in, but it's not like, you know, we've seen a spike of 3 or 4 percentage points on our debt. it would be bad if we did obviously but so far -- >> right, joe. i think you're right i don't think that's going to happen you have to think about the 10-year treasury markets around the world as

let's bring in our guest, neel kashkari extraordinary things happening in the last month or so, neil. we keep using the phrase necessary but not sufficient necessary, that's the first step that you've got to take care of and what the fed has orchestrated so far, you would feel that it's appropriate and necessary for where we are >> absolutely. good morning thanks for having me on. our first job, our first job with the fed is to make sure that the financial plumbing is working, that the treasury market hassli quit at this and is functioning appropriately, that the mortgage market, the agency and bs market is also functioning. those are core functions and jobs we are using our tools aggressively to make sure the markets are functioning. most other financial markets are priced off of those markets. making sure those foundations are acting in an orderly manner is a core part of our job and we're doing the appropriate steps. >> pushing on a string analogy, you've had a deal with criticism like that, neil, we have nothing left in the tank no dry powder. what are we cutting now? weigh will h

minneapolisurley of -- neel kashkari of many hapless. we are joined now by damian sassower.s a huge demarcation between an ok take for big countries, and i do not see a good take for emerging markets. why is that? --ian: emerging-market $20ou get closer to that per barrel price, you are seeing producers getting hit much worse than their peers. it is the e.m. low yield as i've been sort of a safe haven, but even they have declined relative to the dollar. it is all about king dollar. tom: one final question before i jump over to bloomberg radio, and that is simply you mentioned the low yield there's. havern europe -- do they enough strength to withstand this medical crisis? damian: not at all. they are tracking the euro. bulgaria, some of them do not trade as actively. though,is pretty big, poland as well. there are few places you can find to hide from the dollar. even the china yuan has started to roll over. this is with cross currency basis swaps narrowing today. really unusual price action. francine: good morning. it is francine from london. what do you see in terms of unce

neel kashkari.t the packages put in place right now, i don't know if there is a template for how you do it right. i don't know if the u.k. was at the forefront because first we saw coordinated action between boe and treasury. it is really trying to help -- to tell people that not only do not default, but if you are unemployed, you will get benefits. sonja: i think you are already raising the right word. coordination is the one that we are most looking after, because it is very different. it is not about bailing out big banks, it is not about allocating money to big corporations. we are now facing a crisis for sme's and individuals. with countries going into lockdown, it is how can we get the money to those in need? that is very different, as you can imagine, a lot more complicated. this is what we are really looking into, how well-equipped our governments and central banks to make sure that the money is reaching those in need? this is very different with the playbook of 2008, 2 thousand nine because

he along with neel kashkari of the fed they the fed can do a lot more. but what is hitting markets overnight and in today's session is the lack of progress on the $2 trillion stimulus package in the u.s. u.s. futures hit limit down after the worst week for the cash trade since the financial crisis last week. we broke through that no one the s&p 500. we saw green on the screen on friday in europe but european futures taking a big hit with european leaders struggling to get ahead of the virus. read on the screen in asia. the 10 year yield had its biggest drop on friday since 2009. it continues its slide today. dollar strength takes a little bit of a pause. in g10, began outperforming the kiwi on the back foot with kiwi out of new zealand and oil at a 2003 with questions over the prospect of that opec texas deal. getting back to the u.s. and the fiscal package, senate democrats blocked mitch mcconnell's attempt to advance a coronavirus economic rescue package late sunday evening after leaders disagreed on how to spend nearly $2 trillion. >> we are fiddling

the most important about this, we heard it from neel kashkari on "60 minutes" this weekend.e have unlimited amounts of cash to put in the system. six million from d.c., four trillion from the fed. i think it will total somewhere 12 to 15 trillion when it is all said and done. markets love easy money. you see that reflected. we'll have to get back to the real world soon, that is earnings and revenue. if we stay shut down for two two for long, i think markets head down. the virus is the economy, the virus is the economy. deirdre: ray, based on what gary told us, do you agree or disagree? >> gary is spot on. the backstops are there, that is the short term. revenues have to come in. if this thing goes out four, five weeks longer i think we'll be in trouble but there are also bright sides if you look where the market is. companies that are sitting on cash. we have google, facebook, apple, oracle, cisco, amazon, they're sitting almost half a trillion dollars of cash. you might see a lot of merger and acquisition activity once we roll out of this, as well as consolidations in the m

neel kashkari on 60 minutes yesterday saying the fed still has many tools and is willing to use them.problem is, government imposed shutdowns across the globe destroying the economy with an absolute sudden stop to everything. as a result, james bullard from the fed says unemployment in the u.s. could rise to 30% and that the growth in gross domestic anduct could evaporate, actually turn into a contraction of 50%, so half of economic activity in the u.s. disappearing overnight because of government imposed regulations to try and stop the spread of the coronavirus. thatn't helping so far cases continue to add up, as do deaths. the u.k. briefly suggested that building up herd immunity was one of the ways to deal with a virus. destroyed, ands bloomberg click take breaks down how heard immunity would work and how effective it could be at halting the global pandemic. >> heard immunity is basically the idea that if you get sick with a lot of infectious diseases, your immune system kicks in and it helps you survive the infection. as part of that, you build this immunological memory, a memory

the crony capitalism issue i think is one that, on the precipice of it, if you talk to neel kashkari, was the front line. criticism in the past was the only bailed out a few, but that is not really true. in the end, it ended up making money for the u.s. but to have one person making a decision in such a complicated momentat happened in the was necessary because the regulatory complexity of what is here is massive. you need to have plenary authority on top of it. it doesn't bailout only the ony capitalists. if it gets caught up, the person who suffers are the little people, not the big people. the big people can survive to the other end. this is the difficulty in explaining these complex issues. thank goodness we have secretary mnuchin at the helm of all of this trying to explain in a very politically charged environment, whichthis is america. we need to dig in and use everything we have got. on a regulatory basis, the same thing. i think we are on the precipice of solving it. erik: we all hope some solution is afoot. i want to thank you for joining us this morning. foundertom barrack,

we heard neel kashkari, he said basically they have infinite capabilities in terms of helping thingsfed is trying to use a wet spaghetti noodle to play pool, as a pool cue, when i think about that, which do you think is true, infinite ability or pushing on a string? >> i would put somewhere in between there. monetary policy is part of the mix. the fed cut interest rates near zero starting essentially another quantitative easing program, that will help once the isolation is over. we're getting back to business monetary policy will help. monetary policy is not doing much now it doesn't do much to incentivize people to go out and buy when they can't leave their homes. the fed is using another set of powers, lending powers, which we used in the 2008 crisis as well. in a world where credit markets are not functioning well, that can be a big help. i would just like to say, i can say this now, since i'm six years away from being in the institution, i think the fed has been extremely proactive and jerome powell and his team have been working really hard gotten ahead of this have shown that t

most importantly, you had neal kashkari on "60 minutes " sayin unlimited amounts of money and jay powelling the same thing. i hate the fact a bunch of this will be on their back but that's what the reality is at this point. i have to mention something about employment on the positive side. we keep talking about how many people losing jobs. we are going to see a ton of people getting back their jobs in the months ahead. i expect a half v shaped back recovery. in other words, you have the straight down, you are going to get halfway back up, then you will get a lot of reassessment by companies and if the economy gets back in shape, i expect to get a good portion of it back. i'm really positive. it's just a matter of getting past the virus. the virus is the economy. if it goes more than 10, 12 weeks, all bets are off. but if that's all it's going to be, i think this is a gargantuan opportunity. before this happened things were pretty darned good. stuart: okay. scott martin, i'm looking for a bend in the curve. that is the virus curve. when the number of new cases plateaus and starts to come

the four members who come in seem more apt to move on this neel kashkari, president of minneapolis federal have rate cuts. the year before he wanted rate cuts. so you have new members. the dallas federal reserve president robert kaplan, more apt to make a move if something is needed. patrick harker, the philadelphia federal reserve president not afraid to make a bold action. these are new members coming in this year. last year's fed may not have made this action as they were more on the hawkish side, more cautious. this year's fed more bold i would say, new members coming in willing to take action if the action is necessary. stuart: while you're with us, what can you tell us about the sanders campaign in vermont, just to change the subject radically? reporter: sure, sure. very excited feeling among the people here in vermont. this is senator bernie sanders's home state. they're is lot of excitement around the bernie sanders campaign and the energy he is generating. they're expecting huge crowds for his rally he is expected to have later on as the polling sites close. they are expecting to

i don't know if you watched it with neal kashkari who basically indicated the fed was going to do whatever it takes. in fact, back in 2008 they thought they were slow in the response to the financial crisis. indications were you are going to get more shock and awe this morning. they have delivered. i think it's up to the senate to deliver that $1.4 trillion stimulus plan. don't forget, you remember 2008, remember t.a.r.p. and that $700 billion buyout package or that package that they wanted to help the auto makers and other companies with? that also failed in the first vote in government as well. so you think they would have learned from that time around when they saw the market response to the first round of failures in voting that in. stuart: okay, susan, thanks very much. i'm looking at kroger right now. up a fraction, it's at $31. one of the grocers that is doing reasonably well. ashley, have you got anything for me? ashley: just looking at the market reaction, it's interesting what keith fitz was just saying there. i think it's not liquidity that's hurting the economy here, anywhere e