that was of course chairman jerome powell of the federal reserve. this is the very first time we have ever had i guess it's considered a zoom federal reserve meeting and reporters, of course, were standing by. you saw the chiclet screen there. here we are. we got it back. let's dip right back in. >> -- but to let that get in the way of us winning this battle really. >> edward lawrence. >> thank you, mr. chairman. edward lawrence from fox business network. given the amount of stimulus on the fiscal side and monetary policy side, how much weight do you give to finding a vaccine, from clearing that uncertainty you talked about around treatment and whatnot, for the federal reserve pulling back on some of the fed's actions and raising the rates from the zero lower bound. also, when does that main street

we are watching markets as jerome powell is about to hold the news conference. he will be speaking in about 12 minutes from now. now they did hold rates steady a month after they slashed rates near zero in unprecedented move was not even a meeting move, remember that. we'll be talking about, leading you up to jerome powell's comments when we come back. stay with us. ♪. this is an athlete, twenty reps deep, sprinting past every leak in our softest, smoothest fabric. she's confident, protected, her strength respected. depend. the only thing stronger than us, is you. she's confident, protected, her strength respected. i have always wanted to be a teacher. i've been teaching for over 20 years. with everything going on, we've had to alter our classroom settings. we have to transition into virtual learning. on the network, we can have teachers face-to-face with a student in live-time. they can raise their hand and ask questions. they can type questions. we just need to make sure that the education is continuing. (vo) at verizon, we're here and we're ready to keep st

he has been following the fed chair jerome powell with his comments today. edward, what have you got? reporter: ashley, he is taking questions and answers. powell says he believes we could see a rebound in the third and fourth quarters. how big of a refund bound depends on us staying home and healthy at this point. they will pull back the lending only have they see clear signs the economy is on the road to recovery. talking about after september pulling back lending. he says further stimulus, fiscal stimulus is a good idea. he talked about adding money again to the payroll protection program. he said that is a good idea. possible help for state and local hospitals directly from the federal government. back to you. ashley: great stuff. edward, thank you very much. i want to bring in blake burman who has some staggering numbers from the airlines, blake. reporter: pretty devastating, ashley, when you talk about airline usage, airline usage right now as the passengers that are trying to fly, 94,931 passengers made their way through tsa checkpoints yesterday. tha

so why did fed chair jerome powell paint a different picture this morning? >> when the spread of the virus is under control, businesses will reopen and people will come back to work. there is every reason to believe that the economic rebound when it comes, can be robust. we entered this turbulent period on a strong economic footing and that should help support the recovery. liz: to the floor show. sarge guilfoyle usually joins us from the floor of the stock exchange. he's on the phone with us, along with dave ernstberger on russia's big oil announcement. sarge, to you first. look, it is a bold move by jerome powell that some traders wondered what does he see that we don't. that got some people a little worried. they are thrilled with the money idea but you can see the market's down, still up about 246 but give me your thought on this. >> i think it's imperative that people at home understand the municipalities, the local and regional government, they all have their taxes, tax revenue, pushed back several months to july just like we don't have to pay it until

been listening to fed chairman jerome powell give economic updates. we are going to take a short break. you can continue to monitor the chairman using the function live o> on your bloomberg. this is bloomberg. chair powell: the principal focus now is not on unappropriate stance of monetary policy for the next couple of months. the printable focus is on the lending programs and making sure that credit does flow in the economy. we saw what happens when the credit system breaks. it can really inflict much greater damage on the economy. ♪ from london, i'm guy johnson. this is "bloomberg markets." let's get back to fed chair jerome powell's economic update. -- are scared now. this is not something any of us have lived through in our lifetimes, a pandemic that causes the economy to stop and makes people afraid of interacting with their neighbors. i think people want to know that our leaders, people like you, are confident that we will get through this. i want to give you this opportunity, if you like, to reassure people about what lies ahead. chair powell

in an interview just last hour, federal chairman jerome powell said, yes, the situation is incredibly bleak right now. he believes conditions, though, will improve. >> when the virus does run its course and it's safe to go back to work and safe for businesses to open, then we would expect there to be a fairly quick rebound as people do go back to work and start resuming normal levels of economic activity. i think most people expect that to happen in the second half of this year. >> the president today plans to detail a new task force to focus on the coronavirus economic challenges, including the delicate question of when at least part of the economy can reopen. and the senate is debating today how to add even more money, $250 billion or so, into a program designed to help small businesses keep afloat. but there are some partisan differences there that need to be worked out. that's going to take a bit. joining me now is business correspondent christine romans and the leader for economic research at smith futures. christine, let me start with you. when you look at these numbers, it was

a.l: i give jerome powell an have gone very extreme. they took i think the right point of view, which is that there may be some purchases that we will regret later, but we will regret not stabilizing the financial system a whole lot more. they took all the risks on the upside. there was a point a few weeks back when it really was looking like 2008. you could see liquidity was the fed threw trillions of dollars at it, which was the right thing to do. the one thing we have appeared to avoid is a financial sector fallout. everything else is going to hell because we are not getting money out the door fast enough. you mentioned it in couple of times already, the need for more aid from cities and states. maybe that will come from congress and the later rounds. do you think the fed can do more de and expand that facility so it can further ease the austerity we are already seeing across the country? paul: not too much. the constraint on state and local is not that they cannot sell bonds, it is basically that they are not allowed to sell bonds.

where there was one phrase that was quite telling from fed chairman jerome powell he said lending is not spending so the federal reserve is trying to do whatever is possible but at the end of the treasury department it's congress so that really. gives more money to companies and to the u.s. population the federal reserve can lend money but they will need to get the money back at a later point but this lending is very crucial because what the federal reserve tries to do is to prevent at least the financial crisis even if it can not do much to prevent the health crisis and also the economic crisis so but the federal reserve also said they are going to do everything possible in their power to soften the impact of the coronavirus and also the economic lockdown of the markets overall by the way they reacted to positively the dow jones industrial average was up by more than 500 points so that was another gain of more than 2 percent. thanks young's quarter our correspondents in new york and sticking with. something of a flurry of results coming in joining wednesday let's bring in the main h

haidi: federal reserve chairman jerome powell speaking at his news conference earlier today following the fed's latest policy meeting. the fed stuck to guidance. for a closer look at how the central bank sees it from here a professor of economics at princeton university. thank you very much for joining us from washington dc. say that chaird powell was successful in this meeting. there was a most no reaction -- almost no reaction, which for central banks is a success. >> there are occasions where the central bank that is trying to move rockets. one.was clearly not trying, when you don't move markets, that is good. those expecting a change in monetary policy were sorely disappointed. i saw speculation he might hint at yield curve control. that didn't seem likely. he didn't. his basic message was what it had to be, we are here with a toolbox. it doesn't have everything in it. congress has to do some things. but we have a toolbox and intend to use it to the maximum extent possible. >> could that mean additional measures? already they have announced so much. so far it seems only five of th

powell today. risk? isn't that the many people accused them last time around of being so quick to talk about an exit plan that they minimize the risk. you lose maximum impact if you rush talk about normalization. rate or need an express an inflation rate, and express focus for the market. is that a real risk that they suboptimal lies their maximum impact? >> i think it is possible they do announce a marker of where they could start withdrawing a lot of the stimulus. i think maybe one of their reluctance as will be, again, after the financial crisis, they also have to revisit and change what the market has put down. we should not be anticipating .ny kind of tightening there is no doubt that during the press conference, jerome powell will be pressed on a number of issues. .tuff like yield curve control these are things he will be , and it will be important for him to suggest we will provide support if deemed necessary. factorshould investors deflation risk into the portfolio? >> i think it is a risk,

we heard the fed chairman, jerome powell, comment on this. i share his view, which is if we look back at 2008, there were similar concerns when the fed was implementing quantitative easing, putting liquidity into the markets monica: we did not see -- markets. we did not see inflation. because of the reason i cited in my last answer, the reluctance of consumers to spend, we are unlikely to see overall in nation. there may be areas where there is higher demand, like sanitation products, and other things because of the public health crisis. even food. groceries. i don't think we are likely to see that on an overall basis because there is going to be a drop in demand for a lot of goods, even if people have more money. frankly, a lot of people losing their jobs, businesses going out of business, we are likely to see a push and paul in both directions. host: the fed chair was for dissipating in an event with the brookings institute with an optimistic view on the economy. powell says the economic recovery can be robust after the coronavirus is conta

. >>> on thursday the chairman of the federal reserve jerome powell pledged to use the power of the fed proactively and aggressively to get the economy back on track. but for many americans, no matter what the fed does, this will still be a long recovery. more now from scott pelley's report for "60 minutes." >> reporter: manufacturing output is dropping at the fastest rate since the great recession. >> we employed about 120 full-time employees. >> reporter: michael be dna rk owns a brooklyn design and fabrication company that makes displays for retailers. >> we laid off about 25% of our staff, about 30 people. we made basically a pay cut across the board for everyone. so a wage reduction. >> reporter: his factory builds in wood, glass, metal and plastic. he has enough contracts at the moment to last about a month and a half. toy p six weeks, and hopefully on the other side there would be something to do. >> reporter: and you found a way. >> we did. >> reporter: overnight, working with a partner bednark is now manufacturing gear for hospitals. the minimum pay here is $18 an hour. they're

we heard jerome powell the other day comment on this and i shared his view, back in 2008, there were similar concerns when the fed implemented a policy, or it was putting liquidity into the market. because of the reasons i said in my last answer, there will be reluctance by consumers to there may be certain areas where there is much higher demand, like sanitation products and other things that people are increasingly demanding because of the public health crisis, or even food, in some respects. but i don't think we are likely to see that on an overall economy basis because there's going to be a drop in demand for a lot of types of goods, even people who have the same money in their pockets. theirof people are losing jobs, and a lot of businesses are going out of business, so we are likely to see a push and pull in both directions. host: jerome powell was participating online in an event last week with a very optimistic view, potential optimistic view of the economy. the headline, powell said the economic recovery can be "robust" after the coronavirus is contained. here's what he had

fed chair jerome powell making remarks a little while ago in the last hour. joining us to give us some analysis, viktor hjort, global head of credit strategy at bnp paribas. what did you make of what the fed had to say? what did you make of jay powell's comments? viktor: you are absolutely right, this is a further step from the fed away from being a liquidity provider of last resort to being a liquidity provider of first resort, now providing funding to corporate bond markets in both primary and secondary markets. i guess the significance of the that it is also prepared to go below investment grade in terms of where it , today sayingng that it will also include so-called fallen angels and its corporate qe program. it will also be including high-yield etf and its bond purchases. expanding the -- ,rogram to include aaa tranches providing funding for the leverage loan market as well. hand, it is a big step for the fed, but it obviously follows other central banks that have already been operating in this space, but i think the main significance of all of this is

. >> federal chair jerome powell not sugar coating the economy. they have agreed to maintain interest rates in the range of 0 to 1/4 of a percent. we are expecting the latest report on u.s. unemployment claims in the coming hours. economists expect another 3.5 million americans will have filed first-time claims. cnn's christine romans is with us in new york with the details. good to see you again. unfortunately we've come to that time again. what can we expect from the unemployment numbers when they are released? >> reporter: this is just misery. this is what is happening in the economy. for millions of people who are concerned how you pay your rent or your mortgage payment tomorrow, friday, may 1st. this is really a tough spot for the american economy. the fed chief is calling it heartbreaking, too, so many people who made gains are the first ones to lose out in this one. i think 3 1/4 to 4 million jobless claims brings it to almost over 30 million. that number is almost unimaginable. every one of those people trying to file for jobless benefits,

chairman jerome powell, federal reserve keeping interest rates where they are foreseeable future. federal reserve chairman jerome powell said the coronavirus had significant impact on economic activity, employment and inflation, further lowering expectations. the federal reserve chairman believes we'll see double-digit unemployment when the next unemployment rate comes out. he backed off saying there would be a robust third quarter going farther, saying some uncertainty around when the crone cron treatment will be available is when in fact the economy will start to pick up again. but he would not say if the announcement after treatment or a vaccine changes anything that the fed is doing. also federal reserve open market committee statement saying that the fed will keep rates where they are until they are confident the economy has weathered recent events. the federal reserve chairman saying a main street lending facility designed to help small businesses but also medium businesses too. the companies will be up and running, it will be up and running soon. federal reserve chairman sa

i just wonder what you think of that and whether that has changed the environment that jerome powell might yet get reappointed, again in the president were to be reelected or a democrat comes in, joe biden let's say, would he look in this environment, saying you did good through this? >> look, everything that powell has done would make everybody from alan greenspan to ben bernanke to mario draghi or janet yellen absolutely blush. the whole idea of buying junk bonds. today we're seeing energy drunk bonds for example, absolutely melt. the only thing jerome powell has not done is buy the stock market, take interest rates to the negative realm. other than that he threw in the entire kitchen sink. there is not much more you could ask of a fed chair. i'm highly disappointed how much the fed has intervened in the markets because at some point you will crowd out natural investors and their ability to do what their job is which is to allocate capital. if you have a larger bodyworking with treasury, that is simply no longer feasible and that is not also american. neil: all right. danielle, the

jerome powell voices concerns about the long-term fallout from the outbreak. attention turns today to christine lagarde as economists expect the eurozone economy to pump the most since the second world war. grenada cuts. norway joins opec in slashing oil output. we will see shortly what the ceo , after exxon mobil throws its dividend for the first time in 13 years. just under an hour away now from the start of cash equity trading across europe. let's take a look at futures here. we have gains on the euro stock. in blue-chip benchmark index europe of almost 1%. dax futures are up more than 1% this morning as ftse futures rise about three quarters of 1%. anna? 6 -- anna: let's talk about breaking news. around the subject of the earnings coming out of shell. the big headline is around the dividend. the board decided to cut the cord we dividend to $.16 a share. they are talking about further prudent steps to bolster resilience in this tough time. they are fighting a drop in demand driven by the coronavirus. negative oil prices on wti in the united states. we know

powell about to do all he can. >> we are doing all we can to help families whether this period. we continue to use our tools to ensure the recovery will be as robust as possible. reporter: interest rate cuts and trillions of dollars of spending by the fed have injected liquidity into the system along with the stimulus passed by congress, markets have been reassured. it rose after gdp figures were announced. money is not reaching those in need. unemployment is projected to reach 20% in june. there are increasing calls for bolder action to help those who find themselves without money for rent, mortgages, health care, and food. >> live now from washington, more on the developments. meetingt trump has been industry executives at the white house. what did he have to say about the disastrous news about gdp and the u.s. death toll? trump stillesident maintaining a degree of optimism, saying the third quarter will be a transitional one. the figures for this particular quarter are lower than people expected, showing a pretty substantial drop. the largest decline in gdp since the recessio

i think jerome powell will deserve to be reappointed. but i'm very nervous about the fed taking winners and losers in the economy right now. we cannot have this wear will be allowed this company not the company. that makes me a little bit nervous but i'm going to give him an a- grade for what he's done in a crisis. neil: all right, it looks like were bailing out everybody at the rate were going pre-will see what happens. always a pleasure pray thank you my friend. let's get the reed on this, we have jackie deangelis, and charlie gasparino, what did you think about your own power. powell might be changing minds, i don't know about the one in the oval office but what do you think. >> it is very mixed record, the guy in the oval office might not be in the oval office to reappoint him. we should point that out coming november. so a lot is in flux about powell's future. listen, i have a problem with what the fed is doing in the sense or what the government is doing. you can throw trillions of dollars of fed easing and backstops and everything

. >> while the president is pushing to reopen the economy, the federal reserve chair, jerome powell, is expressing caution. watch this. >> we need to have a plan nationally for reopening the economy. what we all want it to happen as quickly as possible, we all want to avoid a false start where we partially reopen and that results in a spike in coronaviruses cases and then we have to go back again to go to square one. we all want to avoid that. >> the president dismissed the idea that mass testing is needed before allowing people ton to work. >> how could the administration discuss the possibility of reopening the country when the administration does not have an adequate nationwide testing system for this virus? don't you need a nationwide testing system for the virus before you reopen? >> no. we have a great testing system. we have right now the best testing system in the world. but there are certain sections in the country that are in phenomenal shape already. other sections are coming on-line. other sections are going down. >> don't you need that, mr. president, to make sure people

a dire warning from jerome powell. quite incredible. this huge downturn which is to be expected, but is really bad news and really only the tip of the iceberg, like you say. there is worse to come. this doesn't factor in the situation right now. people are going to be bracing. yet yesterday we see the us market in particular is carrying on its bald run and it is what we are seeing on the economic front. why is that? why are the markets going in a different direction to the mood generally? i think there seems to be optimism and determination in the us, especially on the markets, just come out of his ok, to come through this, to get out of this crisis we are in. today also there has been a big surge in the market on the back of great earnings coming through from the great and the good of silicon valley, again not particularly factoring in the current situation, but it points to them pulling through. a massive surge on the back of hopes for this antiviral drug thatis hopes for this antiviral drug that is hoped it may be some sort of lot is

powell will hold his news conference after the meeting wraps up this afternoon. >>> well, the u.s. treasury department is now asking people who received stimulus checks that were issued to someone who is deceased to be returned. a treasury spokesman person says the department is coming up with a plan to retrieve those payments that were issued by mistake. treasury secretary tells the wall street journal that officials are checking data bases to help track down those palms. the sacramento family says the accidental palms are opening some old wounds. now, the family says their son's bank account was deactivated long ago. they don't know where the money went and wonders how much more stimulus money is tied up in payments for people who are deceased. for those wanting to know how to return the money sent to deceased family members, the irs says wait for future ructio websuit. >> a new report says uber play off lay off 5400 people. >> i uber employs 267,000 around the world. mean justice of the peace time in an unrelated announcement, uber says the longes major leag come back next summe

jerome powell will hold a virtual press conference. investors will look to see what the fed thinks that the gradual reopening of the companies tha the human systems to bring people back to the moon. nasa's artemis mission aims to send a man and a woman to the moon by 2024. last year nasa unveiled mission headquarters in huntsville, alabama. that is the cbs money watch report. for more, go to cbs money watch.com. >>> human back to the moon, not the only thing nasa is working on. it's also joining the fight against the coronavirus. it's doing so in record time. >> reporter: for scientists who specialize in spacecrafts, designing and earthbound medical machine may be one of their most unusual creations yet. >> this was a complete departure. we are not a medical device company. >> this is project vital, a group of jpl employees designing a new type of ventilator from scratch. in just 37 days. >> it was an incredible feat for a socially distanced staff. a group worked on the prototype in person and the rest relied on videoconferencing. >> c

the other ones, norwegian cruise they should go borrow from jerome powell. he's giving out money like it's going out of style >>> all right. tuesday kicks off what might be the most bizarre earnings season in my life i expect no one will be able to tell us about the future no guidance whatsoever when wells fargo and jpmorgan report out, we hear good things about the past quarter before the amanda lynpandemic, who car. there's no way to forecast anything right now, especially not with jamie dimon, after the heart procedure, and new guy charlie. i pushed for this guy to get loans. it was me that got it done that's what my wife says, you ego maniac i didn't have anything to do with it, but it's good to see they're doing it i'm giving you a lot more information than you usually get. i'm hoping the big banks will swear by their dividends which is why you want to own them. jpmorgan was up. thank you, j. powell it was an easter present we're going to hear from j.j i have it in my charitable trust, the actionalerts.com club maybe the best by the way, they may have w

. >>> anticipating new insights from ted head jerome powell. bazooka is -- here with an early read is karen cho. karen, good morning. >> good morning, frances the federal reserve will release statements following the two-day meeting at 2:00 p.m. eastern followed shortly after comments from jay powell, the chairman of the federal reserve. initiatives are expected this time around after firing that bazooka that -- many are keen to see how the initiatives are helping out the economy. you may recall in mid-march taken down to near zero. $2 trillio treasury and mortgage securities will be purchased along with other credit and other easing measures all eyes on this meeting it could be june when many expect to see what the lockdowns looked like and unemployment rates. in the meantime, social distancing continues consumer trends are already changing what we've seen from adobe analytics is there's been a surge in curbside pickup people ordering online and going to the stores to pick up some of retail stores are ready to adopt those trends. koe kohl's an

jerome powell believes the of t under control the businesses will reopen and people come back to work. there is every reason to believe the economic rebound when it comes can be robust. >> the senate democrats blocked a republican bill to add an additional hundred $50 billion in relief for small businesses and democratic leaders say any bill providing money for small businesses would need to provide just as much money for hospitals, local governments and food stamp recipients. >>> today is good friday, a very special religious day around the world. in paris at the damaged notre dame cathedral this morning a small good friday service was held as seven people gathered including priests attending a meditation ceremony. this marking the crucifixion of jesus christ. and many bay area churches will use the internet this easter weekend to reach and connect with their congregations and beyond by staying home and not going to church. ktvu's amber lee talked to religious leaders about that challenge.>>reporter: we're really putting our faith into action.>> faith into action for bishop keith cla

i will reserve chairman jerome powell gave a virtual news conference following the central bank's latest policy meeting. they signaled that they will continue to keep short-term interest rates near zero and will aggressively use powers to bolster the economy. while also indirectly called on congress to continue fiscal stimulus packages.>>> could man's best friend help combat the pandemic? the university school of universal medicine as a pilot program to see if dogs can detect coronavirus and people which can help identify asymptomatic carriers. preliminary screening could begin as early as july. that is your cbs money watch report. for more ahead to cbs money watch.com. i am diane king hall.>>> nearly 1000 employees at lyft are now out of work. the san francisco-based rideshare company filing paperwork with government regulators detailing plans to lay off 17 % of its workforce and furlough hundreds more. driver taylor hazel typically log between 25 and 30 fares a day with those fares disappeared as millions sheltered in place and now he can't work. >> i don't have health insurance so it'

if you could in layman's term explain what jerome powell the fed chair announced today.

powell says this is a crisis the u.s. has never seen before next week's jobs report is expected to show that the unemployment rate which was at 50 year lows just 2 months ago has surged into double digits the recovery process is expected to be gradual but president trump is optimistic, i think next year is going to be an incredible year. >>for economy. i think the 4th quarter is going to be. really really good in the meantime businesses struggle to stay afloat we went from a full restaurant of a 120 see capacity to. >>2 of 3 people which chaiklin and it makes you realize. and look forward to an economic rebound when the spread of the virus is under control. >>businesses will reopen and people will come back to work. we will continue to use our tools to assure that the recovery when it comes will be as robust as possible i'm john lawrence reporting. >>our coverage of the coronavirus continues on our website kron 4 dot com there you'll find the latest on outbreaks in the bay area and an interactive map as well as informatio

and when it comes to kick starting life back into action, fed chairman jerome powell expects a robust economic recovery, we would expect there to be a fairly quick rebound as people do go back to work and start resuming normal levels of economic activity. i think most people expect that. >>to happen in the 2nd half of this year. i'm nadia romero reporting. well the federal reserve is continuing efforts to prop up the economy in the wake of the coronavirus pandemic. >>the central bank announced a new trillion round of loans yesterday, including a billion main street lending program that's aimed at small and medium size businesses, the make a reasonable effort to keep those workers on the payroll. the fed is also lending billion to struggling state and local governments. >>well still news people of all faiths are shifting through unknown territory during this holy season, how faith leaders are helping lately, i've discovered that while keeping safe and staying in, we can still go out! -sort of. so while you're discovering new things to do in the box, we'll be here for you... at the driv

jerome powell voicing concerns about the long-term economic impact of the coronavirus. leavenks it could lead -- a permanent scar on the u.s. economy. chairman powell making the comments after the central bank, he says the battle to save the economy is far from over. and now european central bank will decide if one trillion euros in stimulus will be enough for the euro area. the expected increase in seven under 50 billion euro asset plan. -- 750 billion euro asset per search -- euro asset purchase plan. investors -- assures that if all goes to plan, the aerospace tighten will be generating cash again. boeing is treating -- shrinking its workforce by about 10%. production a streamliner jet will go forward. global news 24 hours a day on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. francine: let's focus on hedge funds and one in particular that's been well. investment managers have been snapping up those affected by the coronavirus pandemic. saying credit markets offer an exceptional opportunity in invest

up next, remarks from federal reserve chair jerome powell on the coronavirus and how it is impacting monetary policy and the economy. he spoke about unemployment claims and the central bank's role during the pandemic. here is a look. >> a ladies and gentlemen, good morning and welcome to brookings , this morning's brookings presentation. my name is john allen, i am the president of the institution and it is my great pleasure to welcome to this virtual stage our honored guest, federal reserve chair, jay powell. at this moment of unprecedented challenge, not only to our public health system and our health in general, there is an and norma's challenge to our economy and chair powell and his colleagues responded to this crisis. solutions create of with credit flowing to houses and businesses and prepare the economy so it can recover when this virus recedes. and it surely will, ladies and gentlemen. your work, sir, and that of your colleagues, is far from over, but we are in good hands under your leadership. indeed, leaders are tested in crisisf crisis and this tests our leadership in no

jerome powell, the chairsaid speculation. jerome powell, the chair said the us economy may see an unprecedented drop in quarter two. some are saying that it may fall as much as 30% but for the moment they are keeping those interest rates at zero. as i say things could get a lot worse in the second quarter. it's something i can put into the former security treasury that said bill clinton whether he agreed with some of the predictions. the downturn only really started in march. so this only effected a third of the first quarter. and it didn't have the full effect during the first quarter. so my guess is that the number will be -30 my guess is that the number will be —30 perhaps, perhaps it could be as high as —50. for the second quarter. think about this way something like 30% of the workforce is unable to work or is not working because they are not doing jobs that can be done at home and they're doing jobs that are being deemed essential stop and that they're forced to do. so they're not being productive. 30% of they're no

reporter: we go live now to a briefing with federal reserve chair jerome powell. we join this event already in progress. section 13.3 of the federal reserve act, it requires we be secure o

fed chairman jerome powell will tell us more about what the fed is doing to help prop up the american economy. you can't overstate the power of the fed. with a phone call much faster than congress can after weeks of dlaeebate. that will start at 11:30 our time. a data point perhaps ignored a bit by wall street is gdp. latest numbers show first quarter economic activity fell by 5%, the worst drop since the great recession. the number is horrible and entirely expected. after all, we're all at home. many people are not working. we're certainly not out there buying or using services. it's only a little fraction but we're certainly not using ride share services. marcus, we just got word from lyft, they'll be laying off thousands of employees, nearly a thousand employees. we hear uber is about ready to do the same. that's the latest on the american economy this morning. >> certainly hitting a lot of companies hard. thanks, scott. >>> governor newsom is talking more about the new guidelines to reopen the state of california. nbc bay area's bob redell is live for us this morning. bob, i know

powell. it will be an interesting experience for everyone included and let's get a quick check on the markets right now, as stocks are near their highs of the session, with the dow up more than 500 points right now, 2.3%, the s&p up even more, on hope both from gilead on the coronavirus treatment and optimism about reopening the economy. let's bring in for more conversation right now, jpmorgan's david kelly david, welcome back. you know, one of the things that i've been thinking about a lot is the amount of debt that is being piled on by the federal government, the amount of money and obligation that's going to be taken on. we seemed to have stopped worrying about that debt, but i guess the total debt in the united states is likely to top, in percentage terms, the gdp in a couple of years. do we need to worry about that >> well, i think we do long-term. of course, the right time to worry about is when the economy was very healthy, in the last few years, it was unconscionable to rack up debt t

chairmanderal reserve jerome powell, he worries about the long-term economic damage of the coronavirus. if the economy starts to recover in the third quarter, it's far from over. to the european central bank it will decide today if $1.1 trillion stimulus is enough. it will include asset purchases, ecb president christine lagarde is said to reiterate her pledge to do everything necessary. we had with the worst quarter on record. 5.8%, thatng at shows the dramatic impact, a similar story and spain. following an annual rate of 5.2%. global news 24 hours a day on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. equities, bonds, currencies, commodities. lift, i really a want to point out how the two-year u.s. yield has come in, but it speaks volumes about the economic data we are seeing worldwide. dollars with a 24 handle on brent. francine: there is a modest melt up. some of the corporate's out there. overall if you look at european stocks are down to 0.3%, pretty terrible figures in terms of gdp. , i'm als

jerome powell worries about the long-term economic damage from the coronavirus. chairman powell suggesting even if the economy starts to recover in the third quarter, the battle would be far from over and is urging congress to do more. the european central bank will vote today if a 1.1 trillion dollars stimulus is enough, including a genuine -- generous lending plan. christine lagarde is supposed to reiterate her pledge to do everything she can. the euro area economy plunged into a record contraction, shrinking at an annualized rate of 3.8%. that reflects shutdowns aimed at containing the coronavirus and more demands for fiscal support from governments. global news 24 hours a day, on air and @quicktake on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. hurtado.ana this is bloomberg. tom: thanks so much. equities with a fractional left. ,acebook out with earnings microsoft with earnings, and apple later today in new york. in the bond space, short-term paper coming in with a vengeance. the u.s. two-year well under .20%. that

federal reserve chair jerome federal reserve chair jerome powell said the central bank will use its monetary policy tools to keep the economy going. during his news conference wednesday, chairman powell indicated that interest rates will remain low for the time being and suggested that more federal stimulus might be needed to respond to the impact of the virus on the economy.

the federal reserve chair jerome powell has warned there is significant risk of long term damage ongoing public health crisis will weigh heavily on economic activity employment relationship in the near term and poses consider all risks of the economic outlook over the medium term at the fed we're doing all we can to help american families and businesses weather this difficult period. when the spread of the virus is under control businesses will reopen and people will come back to work we will continue to use our tools to assure that the recovery when it comes will be as robust as possible the slump in the u.s. is part of a global slowdown caused by the pandemic the european economy has also suffered a record fall the euro zone's g.d.p. shrank by 3.8 percent in the 1st 3 months of this year that's its sharpest quarterly decline since records began in 1995 germany said its economy could shrink by more than 6 percent this year and the president of the european central bank warned the eurozone economy could fall 'd by 15 percent china's has declined by a record 6.8 percent and japan's is als

what grade would you give jerome powell? what further do you think is in the fed's potential toolkit to further ameliorate this crisis? .> i give jerome powell an a they have gone very extreme. they took, i think, the right point of view, which is that there may be some loans, some purchases later, but we will regret not implementing the system even more. they took all the risk to the upside of doing too much. there was a point when it was really look like 2008. you could see that liquidity was drying up and markets were starting to freeze. the fed just through an incredible amount of money at it, which was the right thing to do. o, the one thing that we appear to have at least avoid is a financial sector crisis fallout. everything else is going to hell because we are not getting money out the door fast enough but the fed is getting its money out of the door fast enough. matt: that was nobel prize-winning economist paul krugman. the biggest oil etf with $4 billion in market value has been caught in the turmoil of plunging cr

yesterday, a downbeat news conference from jerome powell. no significant guidance in terms of what comes next from the fed. a lot of people look to june for that. the 10 year yield dips slightly. we're seeing strengthen oil today. surprise drop in america's gasoline stockpiles. we are seeing oil, wti, and brent. back to what to -- moved market yesterday, gilead with data from a trial for its covid-19 treatment. the ceo says he's talking to u.s. regulators over a possible emergency use approval. an infectious disease expert called the results good news. that it has aows clear-cut, significant positive effect in diminishing the time to recovery. nejra: annmarie hordern is live in new york for us. great to have you with us. how much optimism should investors actually put into this trial from gilead treatments? annmarie: the next big question is the fda. when will they approve it? the new york times says we could see an emergency approval as soon as yesterday. that will be front and center. the gilead ceo says he's in constant communication with

we know that is something important to jerome powell, and then you see progress on these measures essentially blowing up in the span of a few weeks. it could take us years to get back to where we were a month ago. romaine: yeah, yeah, it will be interesting to see how this gets addressed by lawmakers and policymakers. day, normally a day we focus on the claims data we got today, it steals some of that thunder. what are you looking forward to in that report tomorrow? joe: it is going to be depressing. it will be bad, but it would just be the beginning of what we surveye, because of the period. it won't capture the true extent of the damage over the last three weeks, unfortunate. i'm just looking at the unemployment rate on bloomberg. 3.5%,n see officially, that is still the freshest data, but we know according to every economist that we will see that 10%,ployment rate skyhigh, 15% as soon as next month, so it is looking into this time capsule. tomorrow's number will be interesting, but will probably not get the attention it usually does because we know the world has already changed so much sin

reporter: we go live now to a briefing with federal reserve chair jerome powell. we join this event already in progress. section 13.3 of the federal reserve act, it requires we be secured to our lendfaction, and we cannot insolvent companies -- it is clear these are lending bound to implement the laws that congress gives us. we can't make grants. that in my raised remarks is that i just want to be clear on that. ou know, we can do what we can do and we will do it to the absolute limit of those powers. it.l keep at and you -- i just want people to know that we will be at it with that we authorities have until we get through this thing. we will keep using our authorities. ut there are authorities that we don't have and there may be a need for those authorities to be used as well as ours. powell.hair it's heather long from "the washington post." i have two questions for you. timing. do you plan to launch the corporate facility and main lending facilities in may, early may, anything you can timing?a sense on second in a statement you referred to the fmoca refers to me

jerome powell speaking at 10:00 eastern. christine lagarde reiterating her call for more physical help because central banks are struggling. the ecb is the only game in town. is one of the long-term indications of the fed controlling the u.s. curve and asset prices, what does that mean for foreign exchange? george: you do have an unprecedented situation because there is no historic precedent. on one hand, you have one of the largest gdp drops and economic contractions in history. on the other hand, you have extreme amounts of government and central-bank intervention, central banks lending to the entire economy. there is a huge debate that will eventually emerge in terms of whether all of this is inflationary or disinflationary. we sit in the disinflationary going on is at is global liquidity trap. the private saving rate will have to rise aggressively. if you look at what happened across previous pandemics, the private sector started saving a lot more because of all the uncertainty and central-bank actions are not enough to

chairmanderal reserve jerome powell will have comments on his monetary policy and emergency actions later wednesday. the macro strategist from wells fargo will be listening in closely. great to have you with us. there is no great surprises we are expect to hear from jay powell, but what level of assurances of you need to give to markets? bewe expect the message to they will remain accommodative for a long time especially with the policy rate and the different measures they have taken. what we are looking for is details on some of the measures that have been announced but are not in operation yet. the corporate credit purchase facilities, we are expecting we could hear details on that and perhaps a start date. this is more of a fill in the to steal the notion from my colleague. , butn't need new measures we will get more information about things previously announced. longevity? about do you think jay powell will be signaling the fed will be staying the course? yeah. i think the big message is they will be accommodative until they start to see the economy turned the corner from the effects