paul donovan, would you suggest that mr. powell will act today? iewers look for a fed action, a rate cut or cuts? paul: rate cuts i would find disappointing because rate cuts are dealing with the third-quarter, not the second quarter. rate cuts don't work now. i don't care if he cuts rates 50 basis points or 100, i am not stepping foot on a cruise liner. it will not change my demand. what we need now is the integrated thinking, the comprehensive approach which recognizes, the self-employed have got a problem, the small business sector has got a problem. a rate cut, absolutely great the third-quarter, wonderful, i would be cheering wildly, but not now. tom: i will go away for a week ,n the "surveillance" princess cruise liner. francine: alone. in a bubble. tom: that is it. james bevan and paul donovan, we will continue. on fiscal, there is no greater expert then vitor gaspar. arguably our most important conversation ever, really looking forward to that in the next hour. this is bloomberg. ♪ ♪ francine: this is bloomberg "surveillance," tom and franc

paul donovan, ubs global chief economist, joins us from london. if we have money market funds getting freed up by the fed, the dollar swap line being extended to more central banks, does this eliminate the dollar squeeze? paul: i think it certainly goes a long way to helping on that. to be honest, i am not really that worried about the liquidity issues. central banks know how to deal with liquidity issues. that's the easy part of what we've got to try and deal with over the course of the next three to four months. i think central banks have got this. the speed with which they've reacted, the fact that they are using traditional methods which will work, likely swap line. we know from the financial crisis this is exactly the sort of thing we need. they may need to do more. depends on the extent of liquidity demand that we have. but they know what to do in this situation. alix: one more point on that, how much do you think we are going to have to see the fed do to really clear dealer balance sheets? do you have an idea? paul: no, i think it is too un