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US Federal Reserve Cuts Rates To Zero, Launches $700 Billion Quantitative Easing Program | MSNBC - YouTube

Channel: MSNBC

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to get out there on something not

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related at least to the white house

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directly and that is the Federal Reserve

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Corps New York Times The Washington Post

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The Wall Street Journal looks like this

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was coming off in a bar go right at 5:00

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p.m. has just announced that they are

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further lowing their interest rates in

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the Joads

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zero to 0.25 range essentially bringing

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interest rates all the way down to zero

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that is a remarkable emergency move by

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the Federal Reserve it gives you an

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indication of how concerned they are

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about what's happening in the economy

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and there's also some assets persitz in

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there which not to walk out too much but

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it's known as quantitative easing

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I think The Times put it at fifty to two

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hundred by five hundred to two hundred

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billion excuse me here and all the

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excitement I realize that taking off my

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microphone so I'm going to just slide it

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up here but the news is according to

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other news organizations the journal

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that posts The New York Times the Fed is

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acted and they have acted in a way that

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is quite dramatic lowering interest

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rates almost down to zero it was just

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yesterday that I asked the president

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what he thought he had the authority to

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fire Jay Powell the chair and the

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president said he had the authority he

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wasn't making a decision so we'll get

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into the details of what this is what

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this Fed decision means and the

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specifics on asset purchases but I think

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overall it is an indication that people

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the Federal Reserve are very concerned

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about the state of the economy and what

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coronavirus can do to not just the

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United States economy but a global

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slowdown Richard yeah the Hansa with

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that bit of news that is being reported

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on from other news agencies as we

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understand these fed cut rates are so

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essential to give confidence to the

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markets and as you were describing

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effectively free money for folks that

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need to borrow and if not being paid for

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money when you look at inflation itself

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and so with this 500 billion or half a

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trillion dollars in Treasuries and 200

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billion in mortgage-backed securities

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you know as the Fed says you know

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they're concerned about economic

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disruptions from the coronavirus you

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know one of the questions that's been

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asked Hans how much is needed right

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because it the the black box is a black

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box yeah and the answer is they don't

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know because a lot of the data on this

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is lagging and one

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criticisms not just from the president

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but even from democratic economists from

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conservative left-leaning honest was

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that the Fed raised interest rates a

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little bit too quickly over the last

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eighteen to twenty four months they

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always want to be one step ahead but

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it's very difficult to get it right and

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so it does look like they're going with

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overwhelming force on this now there

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have been cases where central banks have

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got it right and it's basically by using

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a bazooka you saw that with Mario Draghi

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and the ECB

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and the Greek debt crisis doing whatever

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it would take this is a strong signal

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from the Federal Reserve that they are

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going to continue to be involved in this

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and they want to send a message to

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markets that a there will be liquidity

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which is what NBS and buying Treasuries

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does and B that'll be very cheap to

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borrow money in that banks should try to

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lend money to consumers to get the

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economy going again but you know the

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latest number we had was from I guess

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ten days ago now eight days ago that

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Friday jobs number for the month of

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March which showed the print of

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something like two hundred and seventy

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two thousand in non-farm payrolls that

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is a remarkable number so the economy

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fundamentally was very strong heading

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into this say towards the end of

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February there's a great unknown on what

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the economy looks like now and all kinds

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of data comes in anecdotally they're

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obviously in touch with industry the Fed

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is seeing how the gears of finance are

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working and they may be seeing some of

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these concerning them and taking this

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emergency action trading is gonna open

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up here and a couple hours in Asia

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I believe it's it's about 6:00 a.m. and

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Tokyo markets will start opening up

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there and we'll see which way they go

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and I've been through too many of these

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with market moving events from a central

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bank to not hazard a prediction they

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could like it or they could be worried

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about it and as they say it could go up

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or down

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Richard hey there I'm Chris Hayes from

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MSNBC thanks for watching MSNBC on

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