COME OUT, AND ALSO SPEAK WITH THE PRESS.
THE PRESS. SO WE ARE EXPECTING THE VICE
PRESIDENT IN JUST A LITTLE BIT,
RIGHT, HANS?
RIGHT, HANS? >> VICE PRESIDENT, NOT SURE
WHERE THEY STAND.
5:00 P.M. WAS THE DEADLINE.
ALSO NEWS TO GET OUT THERE, THE
FEDERAL RESERVE.
FEDERAL RESERVE. ACCORDING TO "THE NEW YORK
TIMES," "WASHINGTON POST," "WALL
STREET JOURNAL," HAS JUST
ANNOUNCED THEY ARE FURTHER
LOWERING THEIR INTEREST RATES TO
0.0 TO 0.25% RATES, ALL THE WAY
DOWN.
DOWN. THAT IS A REMARKABLE EMERGENCY
MOVE BY THE FEDERAL RESERVE.
IT GIVES YOU AN INDICATION ABOUT
HOW CONCERNED THEY ARE ABOUT
WHAT’S HAPPENING IN THE ECONOMY.
THERE’S SOME PURCHASES OUT
THERE, KNOWN AS QUANTITATIVE
EASING, IT’S 50 TO -- 500 TO 200
BILLION.
BILLION. I REALIZE I’VE TAKEN OFF MY
MICROPHONE.
MICROPHONE. THE NEWS IS ACCORDING TO THE
JOURNAL, "THE POST," "THE NEW
YORK TIMES," THE FED HAS ACTED
IN IF A WAY THAT IS QUITE
DRAMATIC, ALMOST DOWN TO ZERO.
THE PRESIDENT SAID HE HAS THE
AUTHORITY TO FIRE THE CHAIR,
WASN’T MAKING THE DECISION.
WE’LL GET INTO THE DETAILS OF
WHAT THIS FED DECISION MEANS AND
THE SPECIFICS ON ASSET
PURCHASES.
PURCHASES. OVERALL IT IS AN INDICATION THAT
PEOPLE OF THE FEDERAL RESERVE
ARE VERY CONCERNED ABOUT THE
STATE OF THE ECONOMY AND WHAT
CORONAVIRUS CAN DO TO NOT JUST
THE UNITED STATES ECONOMY BUT A
GLOBAL SLOWDOWN.
GLOBAL SLOWDOWN. RICHARD?
RICHARD? >> YEAH, HANDS WITH THAT BIT OF
NEWS THAT IS BEING REPORTED ON
FROM OTHER NEWS AGENCIES, AS WE
UNDERSTAND THE FED-CUT RATES ARE
SO ESSENTIAL TO GIVE CONFIDENCE
TO THE MATICRKET, AND EFFECTIVEL
FREE MONEY FOR FOLKS THAT NEED
TO BORROW IT, IF NOT BEING PAID
FOR MONEY WHEN YOU LOOK AT
INFLATION ITSELF.
INFLATION ITSELF. WITH THAT 500 BILLION OR HALF A
TRILLION DOLLARS IN TREASURIES
AND 200 BILLION IN
MORTGAGE-BACKED SECURITIES, AS
THE FED SAYS, THEY’RE CONCERNED
ABOUT ECONOMIC DISRUPTIONS FROM
THE CORONAVIRUS, YOU KNOW, ONE
OF THE QUESTIONS THAT’S BEEN
ASKED, HANS, HOW MUCH IS NEEDED?
THE BLACK BOX IS A BLACK BOX.
>> THE ANSWER IS THEY DON’T
KNOW.
KNOW. BECAUSE A LOT OF THE DATA IS
LAGGING.
LAGGING. AND ONE OF THE CRITICISMS, NOT
JUST FROM THE PRESIDENT BUT EVEN
FROM DEMOCRATIC ECONOMISTS,
CONSERVATIVE LEFT-LEANING
CONSERVATIVE LEFT-LEANING ECONOMISTS, WAS THE FED RAISE
INTEREST RATES A LITTLE TOO
QUICKLY EVERYONE THE LAST
MONTHS?
MONTHS? THEY ALWAYS WANT TO BE ONE STEP
AHEAD BUT IT’S DIFFICULT TO GET
THEM RIGHT.
THEM RIGHT. THEY’RE GOING WITH OVERWHELMING
FORCE ON THIS.
THERE HAVE BEEN CASES WHERE
CENTRAL BANKS HAVE GOT IT RIGHT
AND IT’S BY USING A BASOOKA.
YOU SAW THAT WITH MARIO DRAWINGA
IN THE ECB IN THE GREEK DEBT
CRISIS.
CRISIS. THIS IS A STRONG SIGNAL FROM THE
FEDERAL RESERVE THEY’RE GOING TO
CONTINUE TO BE INVOLVED.
THEY WANT TO SEND A MESSAGE THAT
THERE WILL BE LIQUIDITY, AND
THAT IT WILL BE VERY CHEAP TO
BORROW MONEY AND BANKS SHOULD
TRY TO LEND MONEY TO CONSUMERS
TO GET THE ECONOMY GOING AGAIN.
THE LATEST NUMBER WE HAD WAS
FROM EIGHT DAYS AGO, WHICH SHOWS
273,000 IN NONFOREIGN PAYROLLS?
THAT IS REMARKABLE.
THE ECONOMY WAS VERY STRONG
HEADING INTO THIS PHASE TOWARDS
THE END OF FEBRUARY.
THERE’S A GREAT UNKNOWN ON WHAT
THE ECONOMY LOOKS LIKE NOW.
ALL KIND OF DATA COMES IN,
THEY’RE IN TOUCH WITH INDUSTRY,
THE FED IS SEEING HOW THE GEARS
OF FINANCE ARE WORKING.
THEY MAY BE SEEING SOMETHING
THAT’S CONCERNING THEM AND
TAKING THIS EMERGENCY ACTION.
TRADING IS GOING TO OPEN UP IN A
COUPLE HOURS IN ASIA.
I BELIEVE IT’S ABOUT 6:00 A.M.
IN TOKYO.
IN TOKYO. MARKETS WILL OPEN UP AND WE’LL