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00:00BASIS POINTS. YOUR YIELD BELOW 1.1%. CENTRAL BANKS READY TO STEP IN. > > GIVEN THE CORONAVIRUS, WE ARE NOT ABOUT TO SEE A DROP OFF IN LIQUIDITY. > > JAY POWELL SING THE FED -- > > THE FED WAS PREPARED TO DO SOMETHING. > > SHOULD AND MOST LIKELY WILL RESPOND. > > NOT JUST THE FED BUT OTHER CENTRAL BANKS. > > THE EXPECTATION OF RATE CUTS ACROSS CENTRAL BANKS. > > IT PROBABLY WOULD NOT MAKE A HUGE DIFFERENCE ON THE FUNDAMENTAL SIDE. > > EFFECTIVENESS WOULD BE TREMENDOUS. > > GENERALLY IT DOES HELP SENTIMENT AND WE WOULD SEE TURNAROUND IN THE MARKET. RIGHT NOW THEY HAVE TO TOW THE FINE LINE OF NOT CUTTING TOO EARLY. > > WE ARE STILL ARE PRETTY LOW RATE ON THE FED FUNDS RATE. THEY DO NOT HAVE MUCH MORE TO DO. JONATHAN: THE KEY QUESTION THIS MORNING, THE EFFICACY OF THE FED'S NEXT MOVE. JOINING ME IS SAMANTHA AZZARELLO, LORI CALVASINA, AND MICHAEL O'ROURKE. LORI, I WANT TO BEGIN WITH YOU. WE HAVE A MONETARY POLICY PROBLEM AND DOESN'T IT MAKE A DIFFERENCE? LORI; WE DO NOT HAVE A MONETARY POLICY PROBLEM RIGHT NOW BUT I THINK WE ARE IN THE MIDDLE OF A FIERCE SELLOFF. ANYTHING WE CAN DO TO RESTORE CONFIDENCE TO MARKETS OR NOT MAKE THE CONFIDENCE PROBLEM WORSE IS A NET POSITIVE AT THIS POINT IN TIME. I LIKED HEARING JAY POWELL SAY WE ARE ON THE CASE AND WE ARE WATCHING THIS. I THINK THAT WAS A HUGE STATEMENT. JONATHAN: THE BOJ HEARING A SIMILAR THING. CAN THAT ACT AS A CIRCUIT BREAK? SAMANTHA: I DO NOT THINK SO. THAT WILL NOT HELP THE GROWTH CONTRACTION, THAT WILL NOT HELP SUPPLY CHAIN DISRUPTION AND IT FEELS MISGUIDED WE ARE ALWAYS DEPENDENT ON THE FED. JONATHAN: THERE IS A HUGE RISK. IF THE FED MAKES A MOVE AND WE HAVE ANY KIND OF ADVERSE PRICE ACTION IN THE FACE OF VERBAL OR ACTUAL STIMULUS, IT WILL REINFORCE THE ARGUMENT THAT THE MONETARY POLICY SITUATION CANNOT ADDRESS THIS, AND THEN THE NARRATIVE CAN GET AWAY FROM IT. MICHAEL: THAT IS ABSOLUTELY RIGHT. THE FED IS RESPONDING TO SOMETHING THEY DO NOT HAVE THE TOOLS FOR, YOU WOULD SEE AN IMMEDIATE MARKET RALLY, AND THEN YOU WOULD SEE THE FED IS NEUTERED AND INEFFECTIVE. IN 2008 PEOPLE LOST CONFIDENCE IN THE FED BECAUSE THEY WERE TRYING TO STOP SOMETHING THEY COULD NOT. THEY LOOK LIKE THEY DO NOT HAVE ANY POWER. JONATHAN: TO LORI'S POINT, WHAT YOU THINK THEY SHOULD DO? LORI: MY VIEW IS IT SHOULD BE MORE OF A FISCAL RESPONSE. TAX RELIEF, TAX DEADLINE FILING RELIEF. THINGS LIKE THAT BECAUSE PEOPLE WILL NEED A BRIDGE TO GET THROUGH THE SUMMER. THAT IS HOW THE GOVERNMENT SHOULD BE LOOKING AT THE SITUATION. JONATHAN: I THINK THIS IS KEY. HOW DO POLICYMAKERS FOCUS ON STOPPING AN ECONOMIC SHOP THAT COULD BE TEMPORARILY FROM MATERIALIZING INTO A FINANCIAL SHOCK THAT COULD LINGER A LOT LONGER? SAMANTHA: I THINK THIS IS GOOD FIRST STEP. I DO NOT WANT TO SAY THE FED WILL SOLVE ALL THE PROBLEMS, BUT I THINK THEY HAVE THE POTENTIAL TO NOT MAKE THIS WORSE IN THE SHORT TERM. AT THE END OF THE DAY, WE HAVE BIG QUESTIONS ABOUT SHOULD THEY BE USING ALL OF THEIR BULLETS. THAT IS NOT THE BATTLE WE NEED TO FIGHT. JONATHAN: WE HAVE TO GET IN THE

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Betting on the Fed's Virus Response

Samantha Azzarello of JPMorgan Asset Management, Lori Calvasina of RBC and Michael O'Rourke of JonesTrading discuss the willingness and efficacy of the Federal Reserve to cut rates in order to help markets recover from the coronavirus sell-off. They speak on "Bloomberg The Open." (Source: Bloomberg)

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