Federal Reserve promises major action to boost markets


welcome back we have a lot to digest this morning from the Federal Reserve from Bill Ackman from Stephen minuchin Mitch Rochelle jump in here because we have been discussing and reporting the incredible effort from the Federal Reserve taking major action to cushion the strains in the corporate bottom you need bond markets as well as expand and create additional lending facilities my favorite line in this press release from the Federal Reserve is this the Federal Reserve will buy any amount needed any amount needed Mitch yes they are pulling out all the stops if you look at what’s happened in the last week or so credit spreads got really wide that just means that the market saw a tremendous amount of credit rest risk and the corporate bond market in the municipal bond market and what they’re trying to do is ease that to put liquidity back in the market so corporations can continue to borrow and what’s really interesting is they’re buying assets potentially in the secondary market so those are bonds that are already out there just to continue to provide liquidity and assure bondholders investors that there is no credit risk that is unreasonable and trying to make sure that investors are willing to jump back into that market and continue to buy bonds so it’s not just what the Fed is buying but other investors to come in and continue to buy new assurances corporations I think it’s a big move it’s a bold move and the Fed is using all the powers that they have that’s a great point and the Congress is trying to use all the powers that it has Ryan pain but as you heard from Treasury Secretary Stephen venusian with us just a few moments ago he’s getting some pushback from some Democrats he wants that bill signed today he wants that cash in people’s hands and businesses today absolutely I have to say Bill Ackman for president I think that’s lacking here is we just need clarity from government to know exactly what’s gonna happen if small businesses know they’re gonna be shut down for a month then they can manage the cash flows better they can get access to some loans right now I think that’d be fantastic and then I think the layoffs will actually be the less but I really think we just need that clarity and we just haven’t seen that worry and that’s gonna be so critical here this is so unprecedented digging people do not understand what a 30 days shutdown might look like and whether or not we do see a pretty good bounce-back at the end of the year remember when Steven minutia joined us last week he said to me we are expecting a gigantic comeback in the fourth quarter but that was after he said if we don’t get fiscal stimulus addressed we will see unemployment at 20% indeed in terms of the time frame we’re looking at the the biggest missing piece in all this discussion the Fed the Federal Reserve all in the help for particularly individuals and smaller businesses in the Senate package but we need some more certainty about the amount of testing and the control of this disease outside of these hot spots New York State in California the biggest areas about what these states are going to do so that also falls on the governors and it falls on the entire health system to communicate more effectively with the American people about who’s getting tested and trying to identify the spread of this disease is an incredible story in The Wall Street Journal today about the testing of all of those NBA players gave health officials great insight into how people were transmitting this disease despite having zero symptoms and how that was spread among individuals this is more of what needs to be done from a health perspective yeah meanwhile there’s a Bloomberg story out this morning I want to get your take on diggin because it is saying that President Trump began talking privately late last week about reopening the nation despite swiftly rising number of kornev virus cases and against the advice of health professionals he’s talking about relaxing the guidelines because he wants to curb the economic route so we don’t know where this is going the president has shut down and the governors have shut down a handful of states you’ve got calls to shut down the entire country but the president is looking at the other side of this what is the economy going to look like if in fact we were to see this kind of a shutdown the easiest way to rescue the this country economically and financially is to reopen it but there has to be that cost-benefit analysis there has to be weighing the health risk to individuals versus the risk to our country financially for a long period of time we’ve still got what a week left in this 15-day period certainly the president and other people in the administration have looked to health professionals for guidance and ultimately that’s a conversation that everyone has to have it people need to stay in their houses people need to stay at home as much as they can because they’re still not doing that people looking at the cherry blossoms in Washington DC that’s why New York had to completely shut down because people were not following guidelines they weren’t even over the weekend they were congregating in parks outside potentially spreading this disease to healthy people they are not listening individuals are not listening they’re adults they need to act like that well it does sound like the government will be taking equity stakes in the airlines I just asked Treasury Secretary Steve Heymann ushion about that he said there are specific provisions for airlines that are still being negotiated we’ll see if that ends up being equities sakes the Treasury secretary also said the Treasury will add enormous amounts of new Small Business Administration lenders this is one of the key parts of the fiscal stimulus to make sure to help small business this is the business Mitch that are the job creators in this country right small business and and I really like what Steven monition said which was that you know two months worth of payroll and overhead so that they can continue to employ those people I think the uncertainty of businesses of what to do with their people and certainty of employees regarding whether or not they’re gonna have a paycheck next week that’s key we’re talking about 60 million people employed by small businesses and we absolutely have those small businesses open well monition wants this bill passed today the other thing that he talked about just a moment ago saying that if this health crisis continues the administration will go back to Congress for more let’s face it the Treasury secretary said that this is for the dislocation in the I mean for the next 10 to 12 weeks Ryan Payne 10 to 12 weeks meaning we may go see a fourth tranche of support from Congress real quick throw the kitchen sink at this and I think that is something that you know we have to expect and I think that’s gonna be very very good for the economy in the markets so I think today we’re gonna get some yeah Congress to get to agree on something and from there I think things are gonna look a little bit better if they don’t sign this or pass this today dagen we are gonna have a different market opening tomorrow morning agreed yes absolutely 100% they act they need to get money to individuals and they need to again these businesses coming to the federal government for money because we’re fighting a virus it’s not because of any fault of a CEO or an individual rescuing the companies is rescuing jobs which is one reason the Federal Reserve has made extraordinary actions and that is why you’re seeing a rally this morning in stocks the complete reversal fortune down industrials up 500 at the start

100 thoughts on “Federal Reserve promises major action to boost markets

  1. These "loans" will enslave small businesses. Think of it as student loans for small businesses. This is a HUGE socialist takeover of the capitalist system. Bill Gates did this brilliantly!

  2. WHY ARE WE BOOSTING OUR ECONOMY IF IT IS SO GOOD? DEMOCRATS CREATED THIS CORONAVIRUS HOAX ALONG WITH THEIR MEDIA AND THE IDIOT FAUCI. TERRORIZING OUR COUNTRY INTO SOCIALISM IS A PRETTY DEVIOUS ACT AND WORTHY OF A LOT OF JAIL TIME FOR DEMS.

  3. Sad to see Fox is STILL SHILLING for the fed! Unbelievable. We need fake money NOW! Fire up those printing presses boys and girls, get ready for helicopter money! QE # Infinity! What will the price of TP be in 2020, if it still gets produced? $5 per roll. Forget gold as a hard asset, invest in Charmin and Angel Soft it will be a great trade when $ is not. /sarcasm

  4. Democrats are correct no bailouts for corporate America and workers first . The entire stimulus should be just for workers / people on the bottom rung . I hope McConnell gets the virus and has trouble breathing for awhile

  5. Did I hear it wrong? Sounded more like a loan with CEO wage caps to me. That's not equivalent to printing free money.

  6. Democrats if they don’t get money for their friends like PLAN-PARENTHOOD they and money to help their election they won’t sign package these Democrats are disgusting PRLOSI & SCHUMER NEEDS TO GO FIRE THEM OBVIOUSLY THEY DO NOT CARE FOR AMERICANS!!!!!

  7. The treasonous federal reserve can do nothing with fear mongering and lies. Since oct 2019, 12000 Americans died from the flu. Pandemic? Stfu

  8. How about these CEOs rescuing the companies themselves, using the money from obscene profits driven by stock buybacks on leverage?

  9. BIG PROBLEM, TOO MANY SHEEP. People trust the government and the msm, at least half the country does unfortunately and the media will never go against the government who will never go against the private federal reserve. WE NEED A REAL REVOLUTION! Too bad more internet censorship is coming and more gun laws to take our rights to fight against the tyrannical government we have today so it will never happen. This is the only war Americans should be down for not the wars based on lies that we are still in today over seas.

  10. I don’t see a clip of the stalemate vote they have on the bill for a reason republicans are trying to funnel all the money to corporate companies but no surprise they are dirtbags and a bunch of MAGAts freak 😂😂

  11. PEOPLE AREN'T FOLLOWING BECAUSE THE NEWS FINALLY TELLS THE TRUTH AND PEOPLE BELIEVE IT TO BE ANOTHER FAKE OR MANUFACTURED CONSENT CAMPAIGN.

  12. Don't worry folks, I can print food, drinks, jobs and everything else your heart desires. Virus you say? I got you, just need to add some digits and it will all go away. Don't forget to pay interest later. Love you all!

  13. Nancy putting the stick in the spokes again. She's doing everything she can to make Trump fail. And that is sabotage of not only him but our country and us.
    She's not going to suffer a collapse of our economy she has plenty of money.

  14. Why not make a 30 day no payments no interest for all business and individual debt, no utility bills, no rent and cash for all individuals for the basic food stuffs. The utility companies can take afford the revenue loss for 1 month and the banks and federal reserve can afford no interest for 1 month.

  15. So what about our retirement that were destroyed lost 45k and get back a few k for stimulus hahaha sounds like tax filing season 2.0

  16. They should rethink their whole approach. Quarantine everyone over 60 like me and get everyone else back to work or the virus will be the least of our problems. I think they are intentionally trying to crash the economy.

  17. The democrats are now doing China’s bidding!
    Time to allow quarantined Senate to vote or Trump will have to move forward without them to protect Americans.

  18. The FED's end game is to own EVERYTHING! They can create all the money they want and there is nothing we can do about it thanks to our congress.

  19. 1933 emergency banking act.Insolvency bankrupt united states.Hence great depression.Criminal organization takes over,using the united states name.The criminals operate under united states,name only

  20. 🔴I guess the “How are you gonna pay for it?” Is out of question now? Here comes BIG BAD NANNY GOVERNMENT to bail you out. “SOCIALISM BAD” and “I WANT THE GOVERNMENT OUT OF MY LIFE” people are the first to scream for help. Where’s your privacy now? Aren’t you the one that don’t want government help?🙄

  21. The feds only job is to adjust % according to inflation, they are not economists and are playing god with the money they rent to us. It's sick greed.

  22. The fed is legal it never was lawful centralized credit is one of the main stairs on the Communist manifesto

  23. People in rural areas DO NOT HAVE TO STAY IN THEIR HOMES if they don't come into contact with outsiders of their communities. You can't blanket the whole country

  24. Another month of this Virus . And there will be no US Economy to worry about . Unemployment of 30% could be a Low ball number ?

  25. Who are the list of seven evil spirits the rulers of kingdom of air and slaves before MicahEL😡🕎✡🗡🗡🏹.

    Lust
    Malice
    Rage
    ………..

    Why the towers lightened with pride🌈 color's display? Warning or amusement.

  26. Legalease will save America folks. The privately owned Corporation called the Federal Reserve – that creates fake fiat currency – will buy up assests and bonds across the US. Federal Govt Corporation to TAKE EQUITY STAKES IN LARGE BUSINESS thus Nationalizing them. Govt owned !

    The NWO and the US Federal corporation take over !!! They made these stocks worthless !! Now will Rescuing these companies.

  27. Did Trump do anything for American public, NOTHING, He just say "It's just flu", But NO, It's NOT truth, more and more people loss them life helplessly, maybe in his opinion, money of rich people is more important than life of poor people.😡😡😡😡😡😡😡

  28. Print Print Print!!! Helicopter money for everyone!!! DO IT. DO IT!!! Blow up the fiat system. I need cash NOW.

  29. If the economy collapses you can blame it on Congress! Trump doesn't write the bills. He just signs them, so no blame there if he doesn't have anything on his desk to sign.

  30. President Trump is helping North Korea and Iran with the Coronavirus, But stall on helping Americans, the Disabled, Seniors and the Homeless!

  31. The Federal Reserve, will buy everything with Monopoly money, and crash the entire system. The Constitution states, (Article I, section 10 "No state shall… coin money, emit bills of credit, make any thing but gold and silver a tender in payment of debts")

  32. Printing money like it's toilet paper…smh What happens with the debt after this is all over? This spending is rediculous.

  33. President Trump has to fight two enemies: inside enemy is Democrats politicians and new media., outside war is China virus.

  34. I have an idea. The taxpayers ‘The people’ want to BORROW our money back, until this is over. Not corporations being bailed out.

  35. I don’t care about the cruise lines or airlines when can’t pay rent, buy food or bills. Money 💰 aka Taxes back to the people who pay them. Simple

  36. How about we quarantine the old and sick and everyone else gets back to f work. End this shut down of all people.

  37. Fed is admitting defeat right now. Trump bankrupted his businesses now he is bankrupting the United States. He will go down in history as the man that ruined America. It's over.

  38. Do any Fox News supporters understand that the bailout will be paid by taxpayers. There needs to be oversight and not only just the Secretary of Treasury disbursing funds to corporations.

  39. FED's major action should be to give back all the money and assets thieve stolen for the last 100 plus years and vacation at gitmo

  40. At 1:06 he says that "no credit risk is unreasonable" WTH? That is exactly how we got into the economic trouble of 2008. Now its going to be all industries. We are headed for MASSIVE INFLATION!!

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