CHECK. SAVANNAH, HODA, BACK TO YOU.
SAVANNAH, HODA, BACK TO YOU. >> TOM COSTELLO, LEADING US OFF,
>> TOM COSTELLO, LEADING US OFF, THANK YOU.
THANK YOU. CONGRESS IS NOT ALONE IN
CONGRESS IS NOT ALONE IN STEPPING UP TO RESCUE THIS
STEPPING UP TO RESCUE THIS ECONOMY.
ECONOMY. THE FEDERAL RESERVE, THE
THE FEDERAL RESERVE, THE NATION’S CENTRAL BANK, IS TAKING
NATION’S CENTRAL BANK, IS TAKING EMERGENCY MEASURES TO HELP
EMERGENCY MEASURES TO HELP BUSINESSES AND AMERICANS ALIKE,
BUSINESSES AND AMERICANS ALIKE, CUTTING INTEREST RATES, BUYING
CUTTING INTEREST RATES, BUYING UP HUNDREDS OF BILLIONS OF
UP HUNDREDS OF BILLIONS OF DOLLARS OF DEBT AND OFFERING
DOLLARS OF DEBT AND OFFERING TRILLIONS IN LOANS TO BANKS.
TRILLIONS IN LOANS TO BANKS. JOINING US NOW IN A RARE AND
JOINING US NOW IN A RARE AND EXCLUSIVE LIVE INTERVIEW IS
EXCLUSIVE LIVE INTERVIEW IS JEROME POWELL, CHAIRMAN OF THE
JEROME POWELL, CHAIRMAN OF THE FEDERAL RESERVE, MR. CHAIRMAN,
FEDERAL RESERVE, MR. CHAIRMAN, GOOD MORNING TO YOU, IT’S GOOD
GOOD MORNING TO YOU, IT’S GOOD TO HAVE YOU WITH US.
TO HAVE YOU WITH US. >> GOOD MORNING, THANK YOU,
>> GOOD MORNING, THANK YOU, SAVANNAH.
SAVANNAH. >> THE FEDERAL RESERVE DOESN’T
>> THE FEDERAL RESERVE DOESN’T EXACTLY PRINT MONEY.
EXACTLY PRINT MONEY. BUT AS ONE WRITER PUT IT YOU DO
BUT AS ONE WRITER PUT IT YOU DO HAVE THE ABILITY TO CONJURE
HAVE THE ABILITY TO CONJURE MONEY OUT OF THIN AIR.
MONEY OUT OF THIN AIR. MY QUESTION TO YOU IS SIMPLE.
MY QUESTION TO YOU IS SIMPLE. IS THERE ANY LIMIT TO THE AMOUNT
IS THERE ANY LIMIT TO THE AMOUNT OF MONEY THE FED IS WILLING TO
OF MONEY THE FED IS WILLING TO PUT INTO THIS ECONOMY TO KEEP IT
PUT INTO THIS ECONOMY TO KEEP IT AFLOAT?
AFLOAT? IS IT A BLANK CHECK?
IS IT A BLANK CHECK? >> SAVANNAH, WE -- IN CERTAIN
>> SAVANNAH, WE -- IN CERTAIN CIRCUMSTANCES LIKE THE PRESENT
CIRCUMSTANCES LIKE THE PRESENT WE DO HAVE THE ABILITY TO
WE DO HAVE THE ABILITY TO ESSENTIALLY USE OUR EMERGENCY
ESSENTIALLY USE OUR EMERGENCY LENDING AUTHORITIES.
LENDING AUTHORITIES. AND THE ONLY LIMIT ON THAT WILL
AND THE ONLY LIMIT ON THAT WILL BE HOW MUCH BACKSTOP WE GET FROM
BE HOW MUCH BACKSTOP WE GET FROM THE TREASURY DEPARTMENT.
THE TREASURY DEPARTMENT. WE’RE REQUIRED TO GET FULL
WE’RE REQUIRED TO GET FULL SECURITY FOR OUR LOANS SO THAT
SECURITY FOR OUR LOANS SO THAT WE DON’T LOSE MONEY.
WE DON’T LOSE MONEY. SO THE TREASURY PUTS UP MONEY AS
SO THE TREASURY PUTS UP MONEY AS WE ESTIMATE WHAT THE LOSSES
WE ESTIMATE WHAT THE LOSSES MIGHT BE.
MIGHT BE. BUT ESSENTIALLY THE ANSWER TO
BUT ESSENTIALLY THE ANSWER TO YOUR QUESTION, THOUGH, IS NO.
YOUR QUESTION, THOUGH, IS NO. WE CAN CONTINUE TO MAKE LOANS
WE CAN CONTINUE TO MAKE LOANS AND REALLY THE POINT OF ALL THAT
AND REALLY THE POINT OF ALL THAT IS TO SUPPORT THE FLOW OF CREDIT
IS TO SUPPORT THE FLOW OF CREDIT IN THE ECONOMY TO HOUSEHOLDS AND
IN THE ECONOMY TO HOUSEHOLDS AND BUSINESSES.
BUSINESSES. >> SO YOU’RE SAYING NO, IT’S NOT
>> SO YOU’RE SAYING NO, IT’S NOT A BLANK CHECK, BUT YES, YOU’RE
A BLANK CHECK, BUT YES, YOU’RE PREPARED TO SPEND AN
PREPARED TO SPEND AN UNPRECEDENTED AMOUNT?
UNPRECEDENTED AMOUNT? >> WE CERTAINLY ARE.
>> WE CERTAINLY ARE. IT’S NOT A BLANK CHECK IN THE
IT’S NOT A BLANK CHECK IN THE SENSE THAT WE ARE LIMITED BY THE
SENSE THAT WE ARE LIMITED BY THE ABILITY TO TAKE LOSSES.
ABILITY TO TAKE LOSSES. BUT I WOULD SAY THAT THE
BUT I WOULD SAY THAT THE NUMBER -- EFFECTIVELY $1 OF LOSS
NUMBER -- EFFECTIVELY $1 OF LOSS ABSORPTION OF BACKSTOP FROM
ABSORPTION OF BACKSTOP FROM TREASURY IS ENOUGH TO SUPPORT
TREASURY IS ENOUGH TO SUPPORT $10 WORTH OF LOANS.
$10 WORTH OF LOANS. SO REALLY THE ANSWER IS WE
SO REALLY THE ANSWER IS WE WILL -- WHAT’S HAPPENED IS ALL
WILL -- WHAT’S HAPPENED IS ALL OVER THE WORLD INVESTORS HAVE
OVER THE WORLD INVESTORS HAVE PULLED BACK TO VERY LESS RISKY
PULLED BACK TO VERY LESS RISKY THINGS, THAT’S UNDERSTANDABLE.
THINGS, THAT’S UNDERSTANDABLE. BUT WHAT THAT’S MEANT IS THAT
BUT WHAT THAT’S MEANT IS THAT MANY PLACES IN THE CAPITAL
MANY PLACES IN THE CAPITAL MARKETS WHICH SUPPORT BORROWING
MARKETS WHICH SUPPORT BORROWING BY HOUSEHOLDS AND BUSINESSES,
BY HOUSEHOLDS AND BUSINESSES, MORTGAGES AND CAR LOANS AND
MORTGAGES AND CAR LOANS AND THINGS LIKE THAT HAVE STOPPED
THINGS LIKE THAT HAVE STOPPED WORKING.
WORKING. WE CAN STEP IN AND REPLACE THAT
WE CAN STEP IN AND REPLACE THAT LENDING UNDER OUR EMERGENCY
LENDING UNDER OUR EMERGENCY LENDING POWERS.
LENDING POWERS. WE WILL DO THAT.
WE WILL DO THAT. WHEREVER THERE IS IN THE CAPITAL
WHEREVER THERE IS IN THE CAPITAL MARKETS WHERE CREDIT IS NOT
MARKETS WHERE CREDIT IS NOT FLOWING WE HAVE THE ABILITY IN
FLOWING WE HAVE THE ABILITY IN THIS UNIQUE CIRCUMSTANCE TO
THIS UNIQUE CIRCUMSTANCE TO TEMPORARILY STEP IN AND PROVIDE
TEMPORARILY STEP IN AND PROVIDE THOSE LOANS.
THOSE LOANS. WE WILL KEEP DOING THAT
WE WILL KEEP DOING THAT AGGRESSIVELY AND FORTHRIGHTLY AS
AGGRESSIVELY AND FORTHRIGHTLY AS WE HAVE BEEN.
WE HAVE BEEN. >> THE PRESIDENT HAS SAID HE
>> THE PRESIDENT HAS SAID HE WOULD LIKE TO SEE THE COUNTRY
WOULD LIKE TO SEE THE COUNTRY RARING TO GO BY EASTER.
RARING TO GO BY EASTER. HE WANTS THE COUNTRY BACK OPEN.
HE WANTS THE COUNTRY BACK OPEN. PUBLIC HEALTH EXPERTS HAVE
PUBLIC HEALTH EXPERTS HAVE RESISTED THAT TIMELINE.
RESISTED THAT TIMELINE. CAN THE ECONOMY HANDLE A MONTH’S
CAN THE ECONOMY HANDLE A MONTH’S LONG SHUTDOWN IF THAT IS WHAT
LONG SHUTDOWN IF THAT IS WHAT THE PUBLIC HEALTH EMERGENCY
THE PUBLIC HEALTH EMERGENCY REQUIRES AND DEMANDS?
REQUIRES AND DEMANDS? >> WELL, THIS IS A UNIQUE
>> WELL, THIS IS A UNIQUE SITUATION.
SITUATION. SO I THINK THIS IS -- PEOPLE
SO I THINK THIS IS -- PEOPLE NEED TO UNDERSTAND, THIS IS NOT
NEED TO UNDERSTAND, THIS IS NOT A TYPICAL DOWNTURN.
A TYPICAL DOWNTURN. WHAT’S HAPPENING HERE IS PEOPLE
WHAT’S HAPPENING HERE IS PEOPLE ARE BEING ASKED TO CLOSE THEIR
ARE BEING ASKED TO CLOSE THEIR BUSINESSES, TO STAY HOME FROM
BUSINESSES, TO STAY HOME FROM WORK, AND TO NOT ENGAGE IN
WORK, AND TO NOT ENGAGE IN CERTAIN KINDS OF ECONOMIC
CERTAIN KINDS OF ECONOMIC ACTIVITY.
ACTIVITY. AND SO THEY’RE PULLING BACK.
AND SO THEY’RE PULLING BACK. AND AT A CERTAIN POINT WE WILL
AND AT A CERTAIN POINT WE WILL GET THE SPREAD OF THE VIRUS
GET THE SPREAD OF THE VIRUS UNDER CONTROL.
UNDER CONTROL. AND AT THAT TIME CONFIDENCE WILL
AND AT THAT TIME CONFIDENCE WILL RETURN, BUSINESSES WILL OPEN
RETURN, BUSINESSES WILL OPEN AGAIN, PEOPLE WILL COME BACK TO
AGAIN, PEOPLE WILL COME BACK TO WORK.
WORK. SO YOU MAY WELL SEE, YOU KNOW,
SO YOU MAY WELL SEE, YOU KNOW, SIGNIFICANT RISES IN
SIGNIFICANT RISES IN UNEMPLOYMENT, SIGNIFICANT
UNEMPLOYMENT, SIGNIFICANT DECLINES IN ECONOMIC ACTIVITY.
DECLINES IN ECONOMIC ACTIVITY. BUT THERE CAN ALSO BE A GOOD
BUT THERE CAN ALSO BE A GOOD REBOUND ON THE OTHER SIDE OF
REBOUND ON THE OTHER SIDE OF THAT AND THAT’S ACTUALLY ONE OF
THAT AND THAT’S ACTUALLY ONE OF THE MAIN THINGS WE’RE TRYING TO
THE MAIN THINGS WE’RE TRYING TO DO BY ASSURING THE FLOW OF
DO BY ASSURING THE FLOW OF CREDIT IN THE ECONOMY AND
CREDIT IN THE ECONOMY AND KEEPING RATES LOW IS TO ASSURE
KEEPING RATES LOW IS TO ASSURE THAT THAT REBOUND, WHEN IT DOES
THAT THAT REBOUND, WHEN IT DOES COME, IS AS VIGOROUS AS
COME, IS AS VIGOROUS AS POSSIBLE.
POSSIBLE. >> I GUESS THE ISSUE, THOUGH,
>> I GUESS THE ISSUE, THOUGH, THAT’S BEEN SORT OF RAISED IN
THAT’S BEEN SORT OF RAISED IN THESE RECENT DAYS IS, IS THE
THESE RECENT DAYS IS, IS THE CURE WORSE THAN THE DISEASE?
CURE WORSE THAN THE DISEASE? IS SHUTTING DOWN THE ECONOMY FOR
IS SHUTTING DOWN THE ECONOMY FOR THE SAKE OF PUBLIC HEALTH, DOING
THE SAKE OF PUBLIC HEALTH, DOING LASTING DAMAGE TO THE ECONOMY
LASTING DAMAGE TO THE ECONOMY THAT MAY NOT BE RECOVERABLE?
THAT MAY NOT BE RECOVERABLE? SO I GUESS YOU’RE NOT A DOCTOR,
SO I GUESS YOU’RE NOT A DOCTOR, YOU’RE AN ECONOMIST, BUT WHERE
YOU’RE AN ECONOMIST, BUT WHERE DO YOU COME DOWN ON THAT DEBATE,
DO YOU COME DOWN ON THAT DEBATE, IS IT BETTER TO SOLVE THE PUBLIC
IS IT BETTER TO SOLVE THE PUBLIC HEALTH CRISIS AND THEN LET THE
HEALTH CRISIS AND THEN LET THE ECONOMY BOUNCE BACK OR DO YOU
ECONOMY BOUNCE BACK OR DO YOU THINK WE SHOULD RUSH INTO
THINK WE SHOULD RUSH INTO OPENING THE ECONOMY BACK UP
OPENING THE ECONOMY BACK UP BECAUSE, FRANKLY, THE DAMAGE
BECAUSE, FRANKLY, THE DAMAGE BEING DONE IS WORSE?
BEING DONE IS WORSE? >> SO THAT, OF COURSE, IS NOT --
>> SO THAT, OF COURSE, IS NOT -- WE’RE NOT AN EXPERT, WE’RE NOT
WE’RE NOT AN EXPERT, WE’RE NOT EXPERTS IN PANDEMICS OVER HERE,
EXPERTS IN PANDEMICS OVER HERE, WE DON’T GET TO MAKE THAT
WE DON’T GET TO MAKE THAT DECISION.
DECISION. I WOULD SAY, THOUGH, YOU KNOW
I WOULD SAY, THOUGH, YOU KNOW THAT WE WOULD TEND TO LISTEN TO
THAT WE WOULD TEND TO LISTEN TO THE EXPERTS.
THE EXPERTS. DR. FAUCI SAID SOMETHING LIKE
DR. FAUCI SAID SOMETHING LIKE THE VIRUS IS GOING TO SET THE
THE VIRUS IS GOING TO SET THE TIMETABLE AND THAT SOUNDS RIGHT
TIMETABLE AND THAT SOUNDS RIGHT TO ME.
TO ME. I THINK THE SOONER WE GET THE
I THINK THE SOONER WE GET THE SPREAD OF THE VIRUS UNDER
SPREAD OF THE VIRUS UNDER CONTROL PEOPLE WILL REGAIN
CONTROL PEOPLE WILL REGAIN CONFIDENCE WHEN THEY BECOME
CONFIDENCE WHEN THEY BECOME CONFIDENT THAT IS THE CASE THEY
CONFIDENT THAT IS THE CASE THEY WILL VERY WILLINGLY OPEN THEIR
WILL VERY WILLINGLY OPEN THEIR BUSINESSES UP, GO BACK TO WORK,
BUSINESSES UP, GO BACK TO WORK, THE CONSUMER WILL BE SPENDING.
THE CONSUMER WILL BE SPENDING. SO I THINK THE FIRST ORDER OF
SO I THINK THE FIRST ORDER OF BUSINESS WILL BE TO GET THE
BUSINESS WILL BE TO GET THE SPREAD OF THE VIRUS UNDER
SPREAD OF THE VIRUS UNDER CONTROL AND THEN RESUME ECONOMIC
CONTROL AND THEN RESUME ECONOMIC ACTIVITY.
ACTIVITY. >> AS YOU WELL KNOW A RECESSION
>> AS YOU WELL KNOW A RECESSION IS A TECHNICAL TERM.
IS A TECHNICAL TERM. IT MEANS TWO STRAIGHT QUARTERS
IT MEANS TWO STRAIGHT QUARTERS OF NEGATIVE GROWTH.
OF NEGATIVE GROWTH. WE’VE ALREADY HAD ONE QUARTER.
WE’VE ALREADY HAD ONE QUARTER. PUT IT BLUNTLY, DO YOU THINK WE
PUT IT BLUNTLY, DO YOU THINK WE ARE ALREADY IN RECESSION?
ARE ALREADY IN RECESSION? DO YOU THINK IT IS INEVITABLE
DO YOU THINK IT IS INEVITABLE THAT WE WILL BE IN RECESSION?
THAT WE WILL BE IN RECESSION? >> WE MAY WELL BE IN A
>> WE MAY WELL BE IN A RECESSION.
RECESSION. AGAIN, I WOULD POINT TO THE
AGAIN, I WOULD POINT TO THE DIFFERENCE BETWEEN THIS AND A
DIFFERENCE BETWEEN THIS AND A NORMAL RECESSION.
NORMAL RECESSION. THIS ISN’T -- THERE’S NOTHING
THIS ISN’T -- THERE’S NOTHING FUNDAMENTALLY WRONG WITH OUR
FUNDAMENTALLY WRONG WITH OUR ECONOMY.
ECONOMY. QUITE THE CONTRARY.
QUITE THE CONTRARY. THE ECONOMY PERFORMED VERY WELL
THE ECONOMY PERFORMED VERY WELL RIGHT THROUGH FEBRUARY, WE’VE
RIGHT THROUGH FEBRUARY, WE’VE GOT 50 YEAR LOW IN UNEMPLOYMENT
GOT 50 YEAR LOW IN UNEMPLOYMENT FOR THE LAST COUPLE OF YEARS SO
FOR THE LAST COUPLE OF YEARS SO WE START IN A VERY STRONG
WE START IN A VERY STRONG POSITION.
POSITION. THIS ISN’T SOMETHING THAT’S
THIS ISN’T SOMETHING THAT’S WRONG WITH THE ECONOMY, THIS IS
WRONG WITH THE ECONOMY, THIS IS A SITUATION WHERE PEOPLE ARE
A SITUATION WHERE PEOPLE ARE BEING ASKED TO STEP BACK FROM
BEING ASKED TO STEP BACK FROM ECONOMIC ACTIVITY, CLOSE THEIR
ECONOMIC ACTIVITY, CLOSE THEIR BUSINESSES, STAY HOME FROM WORK
BUSINESSES, STAY HOME FROM WORK SO IN PRINCIPLE, IF WE GET THE
SO IN PRINCIPLE, IF WE GET THE VIRUS SPREAD UNDER CONTROL
VIRUS SPREAD UNDER CONTROL FAIRLY QUICKLY THEN ECONOMIC
FAIRLY QUICKLY THEN ECONOMIC ACTIVITY CAN RESUME.
ACTIVITY CAN RESUME. AND WE WANT TO MAKE THAT REBOUND
AND WE WANT TO MAKE THAT REBOUND AS VIGOROUS AS POSSIBLE.
AS VIGOROUS AS POSSIBLE. >> YEAH, A LOT OF PEOPLE SAY
>> YEAH, A LOT OF PEOPLE SAY THAT AFTER A RECESSION LIKE THIS
THAT AFTER A RECESSION LIKE THIS YOU COULD SEE A BIG BOUNCEBACK.
YOU COULD SEE A BIG BOUNCEBACK. WE DIDN’T SEE THAT IN 2008.
WE DIDN’T SEE THAT IN 2008. YOU KNOW, IT WASN’T LIKE THE
YOU KNOW, IT WASN’T LIKE THE AVERAGE RECESSION WHERE YOU SEE
AVERAGE RECESSION WHERE YOU SEE A DROP AND THEN YOU SEE A BIG
A DROP AND THEN YOU SEE A BIG BOUNCEBACK.
BOUNCEBACK. IT WAS A SLOW AND SLUGGISH
IT WAS A SLOW AND SLUGGISH UNCERTAIN RECOVERY AFTER 2008
UNCERTAIN RECOVERY AFTER 2008 BUT I THINK I HEAR YOU SAYING
BUT I THINK I HEAR YOU SAYING THAT ONCE THIS PUBLIC HEALTH
THAT ONCE THIS PUBLIC HEALTH ISSUE IS RESOLVED YOU EXPECT A
ISSUE IS RESOLVED YOU EXPECT A ROBUST BOUNCEBACK.
ROBUST BOUNCEBACK. >> WHAT I’M REALLY SAYING IS WE
>> WHAT I’M REALLY SAYING IS WE DON’T KNOW.
DON’T KNOW. AND THE SOONER WE GET THROUGH
AND THE SOONER WE GET THROUGH THIS PERIOD AND GET THE VIRUS
THIS PERIOD AND GET THE VIRUS UNDER CONTROL THE SOONER THE
UNDER CONTROL THE SOONER THE RECOVERY CAN COME.
RECOVERY CAN COME. THERE’S NO OTHER -- WE DON’T
THERE’S NO OTHER -- WE DON’T HAVE COMPARABLE EXPERIENCES TO
HAVE COMPARABLE EXPERIENCES TO GO BACK AND LOOK AT.
GO BACK AND LOOK AT. WE KNOW THAT ECONOMIC ACTIVITY
WE KNOW THAT ECONOMIC ACTIVITY WILL DECLINE, PROBABLY
WILL DECLINE, PROBABLY SUBSTANTIALLY IN THE SECOND
SUBSTANTIALLY IN THE SECOND QUARTER.
QUARTER. BUT I THINK MANY EXPECT, AND I
BUT I THINK MANY EXPECT, AND I WOULD EXPECT THE ECONOMIC
WOULD EXPECT THE ECONOMIC ACTIVITY TO RESUME AND MOVE BACK
ACTIVITY TO RESUME AND MOVE BACK UP IN THE SECOND HALF OF THE
UP IN THE SECOND HALF OF THE YEAR, VERY HARD TO SAY PRECISELY
YEAR, VERY HARD TO SAY PRECISELY WHEN THAT WILL BE AND IT WILL
WHEN THAT WILL BE AND IT WILL REALLY DEPEND ON THE SPREAD OF
REALLY DEPEND ON THE SPREAD OF THE VIRUS.
THE VIRUS. THE VIRUS IS GOING TO DICTATE
THE VIRUS IS GOING TO DICTATE THE TIMETABLE HERE.
THE TIMETABLE HERE. >> WHEN WE SEE SOME OF THE
>> WHEN WE SEE SOME OF THE ACTIONS THAT THE FEDERAL RESERVE
ACTIONS THAT THE FEDERAL RESERVE HAS BEEN TAKING, AND THEY’RE
HAS BEEN TAKING, AND THEY’RE EXTRAORDINARY AND IN SOME CASES
EXTRAORDINARY AND IN SOME CASES UNPRECEDENTED, I THINK SOME
UNPRECEDENTED, I THINK SOME PEOPLE WILL FEEL REALLY KIND OF
PEOPLE WILL FEEL REALLY KIND OF RELIEVED AND HEARTENED.
RELIEVED AND HEARTENED. AND OTHERS MIGHT FEEL A LITTLE
AND OTHERS MIGHT FEEL A LITTLE WORRIED.
WORRIED. WHAT ARE THE RISKS ASSOCIATED
WHAT ARE THE RISKS ASSOCIATED WITH TAKING SOME OF THESE BOLD
WITH TAKING SOME OF THESE BOLD ACTIONS, PUMPING SO MUCH MONEY
ACTIONS, PUMPING SO MUCH MONEY INTO THE ECONOMY?
INTO THE ECONOMY? I MEAN, ONE ISSUE, OF COURSE,
I MEAN, ONE ISSUE, OF COURSE, WOULD BE WORRYING ABOUT
WOULD BE WORRYING ABOUT INFLATION.
INFLATION. IS THERE A LONG-TERM RISK TO THE
IS THERE A LONG-TERM RISK TO THE ACTIONS BEING TAKEN NOW?
ACTIONS BEING TAKEN NOW? >> YOU KNOW, WE DON’T REALLY SEE
>> YOU KNOW, WE DON’T REALLY SEE THAT.
THAT. WHAT WE SEE, THOUGH, IS WHAT WE
WHAT WE SEE, THOUGH, IS WHAT WE SEE IS SMALL, MEDIUM AND LARGE
SEE IS SMALL, MEDIUM AND LARGE BUSINESSES ARE NOT ABLE TO
BUSINESSES ARE NOT ABLE TO BORROW THROUGH THEIR NORMAL
BORROW THROUGH THEIR NORMAL CHANNELS TO SOME EXTENT.
CHANNELS TO SOME EXTENT. WE STEP IN AND REPLACE THAT.
WE STEP IN AND REPLACE THAT. THAT’S A VERY HEALTHY THING.
THAT’S A VERY HEALTHY THING. THAT’S A POSITIVE THING.
THAT’S A POSITIVE THING. WE’RE PROVIDING RELIEF, WE’RE
WE’RE PROVIDING RELIEF, WE’RE PROVIDING STABILITY.
PROVIDING STABILITY. WE’RE TRYING TO CREATE A BRIDGE
WE’RE TRYING TO CREATE A BRIDGE FROM OUR VERY STRONG ECONOMY TO
FROM OUR VERY STRONG ECONOMY TO ANOTHER PLACE OF ECONOMIC
ANOTHER PLACE OF ECONOMIC STRENGTH AND THAT’S WHAT OUR
STRENGTH AND THAT’S WHAT OUR LENDING REALLY DOES.
LENDING REALLY DOES. IT’S VERY BROAD.
IT’S VERY BROAD. IT’S ACROSS SMALL, MEDIUM AND
IT’S ACROSS SMALL, MEDIUM AND LARGE BUSINESSES.
LARGE BUSINESSES. WE’LL -- WE ARE ALREADY HELPING
WE’LL -- WE ARE ALREADY HELPING STATE AND LOCAL GOVERNMENTS AND
STATE AND LOCAL GOVERNMENTS AND JUST PLACES WHERE CREDIT IS NOT
JUST PLACES WHERE CREDIT IS NOT BEING OFFERED WHERE IT SHOULD BE
BEING OFFERED WHERE IT SHOULD BE OFFERED, WHERE IT’S REALLY JUST
OFFERED, WHERE IT’S REALLY JUST A QUESTION OFLY LICK-- APPROPRIA
A QUESTION OFLY LICK-- APPROPRIA DO IN THIS HIGHLY UNUSUAL
DO IN THIS HIGHLY UNUSUAL SITUATION WE’RE IN.
SITUATION WE’RE IN. >> THE OTHER ISSUE THAT COMES UP
>> THE OTHER ISSUE THAT COMES UP IS WHETHER OR NOT YOU MIGHT NOT
IS WHETHER OR NOT YOU MIGHT NOT RUN OUT OF AMMO, RUN OUT OF
RUN OUT OF AMMO, RUN OUT OF BULLETS AND TO THAT POINT ARE
BULLETS AND TO THAT POINT ARE YOU SORRY THAT YOU DIDN’T RAISE
YOU SORRY THAT YOU DIDN’T RAISE INTEREST RATES A LITTLE MORE
INTEREST RATES A LITTLE MORE WHEN THE ECONOMY WAS STRONG SO
WHEN THE ECONOMY WAS STRONG SO YOU’D HAVE MORE CUSHION NOW?
YOU’D HAVE MORE CUSHION NOW? >> WHEN IT COMES TO THIS LENDING
>> WHEN IT COMES TO THIS LENDING WE’RE NOT GOING TO RUN OUT OF
WE’RE NOT GOING TO RUN OUT OF AMMUNITION.
AMMUNITION. THAT DOESN’T HAPPEN.
THAT DOESN’T HAPPEN. YOU KNOW, WE SET THE INTEREST
YOU KNOW, WE SET THE INTEREST RATES IN TIME AT WHAT WE THINK
RATES IN TIME AT WHAT WE THINK IS THE RIGHT -- GIVEN THE
IS THE RIGHT -- GIVEN THE ECONOMY, THE RIGHT LEVEL OF
ECONOMY, THE RIGHT LEVEL OF SUPPORT.
SUPPORT. IF WE’D RAISED INTEREST RATES
IF WE’D RAISED INTEREST RATES MORE IT WOULD HAVE BEEN HIGHER
MORE IT WOULD HAVE BEEN HIGHER THAN WE THOUGHT AND ECONOMIC
THAN WE THOUGHT AND ECONOMIC GROWTH WOULD HAVE BEEN A LITTLE
GROWTH WOULD HAVE BEEN A LITTLE BIT SLOWER SO IT WOULDN’T HAVE
BIT SLOWER SO IT WOULDN’T HAVE MATTERED IN THE END.
MATTERED IN THE END. WE REALLY ARE ALWAYS SETTING OUR
WE REALLY ARE ALWAYS SETTING OUR INTEREST RATES AT THE LEVEL WE
INTEREST RATES AT THE LEVEL WE THINK IS APPROPRIATE AND WE’VE
THINK IS APPROPRIATE AND WE’VE CUT THEM TO 0 NOW.
CUT THEM TO 0 NOW. WE STILL HAVE POLICY ROOM IN
WE STILL HAVE POLICY ROOM IN OTHER DIMENSIONS TO SUPPORT THE
OTHER DIMENSIONS TO SUPPORT THE ECONOMY BUT THE MAIN THING WE’RE
ECONOMY BUT THE MAIN THING WE’RE DOING NOW IS REALLY WITH OUR
DOING NOW IS REALLY WITH OUR LENDING PROGRAMS.
LENDING PROGRAMS. THAT’S THE PRINCIPLE THING WE’RE
THAT’S THE PRINCIPLE THING WE’RE DOING IS SUPPORTING THE ECONOMY
DOING IS SUPPORTING THE ECONOMY THROUGH THAT CHANNEL.
THROUGH THAT CHANNEL. >> IF I’M SITTING A THE HOME AND
>> IF I’M SITTING A THE HOME AND I LOST MY JOB OR I’M A
I LOST MY JOB OR I’M A RESTAURANT OWNER AND I LAID OFF
RESTAURANT OWNER AND I LAID OFF EVERY SINGLE ONE OF MY WORKERS
EVERY SINGLE ONE OF MY WORKERS OR I OWN A NAIL SALON AND I HAD
OR I OWN A NAIL SALON AND I HAD TO CLOSE UP SHOP DOES ANYTHING
TO CLOSE UP SHOP DOES ANYTHING THE FEDERAL RESERVE IS DOING
THE FEDERAL RESERVE IS DOING RIGHT NOW HELP ME?
RIGHT NOW HELP ME? >> YES, WELL KEEPING RATES LOW
>> YES, WELL KEEPING RATES LOW WILL REDUCE THE INTEREST BURDEN
WILL REDUCE THE INTEREST BURDEN ON PEOPLE, KEEPING THE FLOW OF
ON PEOPLE, KEEPING THE FLOW OF CREDIT WILL HELP PEOPLE.
CREDIT WILL HELP PEOPLE. PRINCIPALLY, THOUGH, I WOULD
PRINCIPALLY, THOUGH, I WOULD LOOK TO THE LEGISLATION THAT
LOOK TO THE LEGISLATION THAT PASSED LAST NIGHT OR THIS
PASSED LAST NIGHT OR THIS MORNING.
MORNING. REALLY.
REALLY. WHICH IS GOING TO DIRECT AID TO
WHICH IS GOING TO DIRECT AID TO SMALL, MEDIUM AND LARGE
SMALL, MEDIUM AND LARGE BUSINESSES, TO LOW AND MODERATE
BUSINESSES, TO LOW AND MODERATE INCOME COMMUNITIES, TO THE
INCOME COMMUNITIES, TO THE UNEMPLOYED.
UNEMPLOYED. TO STATE AND LOCAL GOVERNMENTS.
TO STATE AND LOCAL GOVERNMENTS. TO THE HEALTH CARE SYSTEM.
TO THE HEALTH CARE SYSTEM. THAT’S REALLY WHERE THE
THAT’S REALLY WHERE THE IMMEDIATE RELIEF IS GOING TO
IMMEDIATE RELIEF IS GOING TO COME FROM.
COME FROM. THE HELP FROM THE FED WILL BE
THE HELP FROM THE FED WILL BE WHEN THE ECONOMY BEGINS TO
WHEN THE ECONOMY BEGINS TO REBOUND THEN WE’LL BE THERE TO
REBOUND THEN WE’LL BE THERE TO MAKE SURE THAT THAT REBOUND IS
MAKE SURE THAT THAT REBOUND IS AS STRONG AS POSSIBLE.
AS STRONG AS POSSIBLE. >> MR. CHAIRMAN, I HAVE TO ASK
>> MR. CHAIRMAN, I HAVE TO ASK YOU, I’M SURE YOU’RE AWARE THE
YOU, I’M SURE YOU’RE AWARE THE PRESIDENT HAS BEEN QUITE
PRESIDENT HAS BEEN QUITE CRITICAL OF THE FED AND OF YOU
CRITICAL OF THE FED AND OF YOU PERSONALLY.
PERSONALLY. I’M NOT GOING TO GET INTO ALL OF
I’M NOT GOING TO GET INTO ALL OF IT BUT HE HAS IN TWEETS CALLED
IT BUT HE HAS IN TWEETS CALLED YOU CLUELESS, CALLED THE FED
YOU CLUELESS, CALLED THE FED PATHETIC, SLOW MOVING.
PATHETIC, SLOW MOVING. DOES WHAT THE PRESIDENT SAYS
DOES WHAT THE PRESIDENT SAYS AFFECT YOU AND WHAT YOU DO?
AFFECT YOU AND WHAT YOU DO? DOES IT MAKE YOUR JOB HARDER OR
DOES IT MAKE YOUR JOB HARDER OR DO YOU JUST IGNORE IT?
DO YOU JUST IGNORE IT? >> YOU KNOW, MY COLLEAGUES AND I
>> YOU KNOW, MY COLLEAGUES AND I HERE ARE TOTALLY FOCUSED ON OUR
HERE ARE TOTALLY FOCUSED ON OUR MISSION OF SERVING THE AMERICAN
MISSION OF SERVING THE AMERICAN PEOPLE.
PEOPLE. WE KNOW THAT WHAT WE DO IS
WE KNOW THAT WHAT WE DO IS IMPORTANT FOR ALL AMERICANS.
IMPORTANT FOR ALL AMERICANS. AND WE TRY TO DO OUR ABSOLUTE
AND WE TRY TO DO OUR ABSOLUTE BEST TO SERVE THEM IN A WAY THAT
BEST TO SERVE THEM IN A WAY THAT IS COMPLETELY NON-POLITICAL,
IS COMPLETELY NON-POLITICAL, NON-PARTISAN.
NON-PARTISAN. JUST TO SERVE ALL AMERICANS.
JUST TO SERVE ALL AMERICANS. THAT’S OUR ONLY FOCUS.
THAT’S OUR ONLY FOCUS. WE DON’T LET ANYTHING ELSE GET
WE DON’T LET ANYTHING ELSE GET INTO OUR THINKING AND I THINK,
INTO OUR THINKING AND I THINK, YOU KNOW, THAT’S JUST THE WAY IT
YOU KNOW, THAT’S JUST THE WAY IT ALWAYS IS AT THE FED.
ALWAYS IS AT THE FED. WE HAVE A VERY STRONG CULTURE.
WE HAVE A VERY STRONG CULTURE. THAT’S DEEP IN OUR DNA AND
THAT’S DEEP IN OUR DNA AND THAT’S JUST THE WAY IT’S ALWAYS
THAT’S JUST THE WAY IT’S ALWAYS GOING TO BE.
GOING TO BE. >> AND FINALLY, SIR, IN ABOUT
>> AND FINALLY, SIR, IN ABOUT TEN SECONDS I HAVE LEFT WE WENT
TEN SECONDS I HAVE LEFT WE WENT BACK AND LOOKED, THIS SHOW’S
BACK AND LOOKED, THIS SHOW’S BEEN ON THE AIR 60 PLUS YEARS, I
BEEN ON THE AIR 60 PLUS YEARS, I THINK IT’S BEEN 30 YEARS SINCE
THINK IT’S BEEN 30 YEARS SINCE WE HAD A FEDERAL RESERVE
WE HAD A FEDERAL RESERVE CHAIRMAN ON LIVE, MAYBE LONGER,
CHAIRMAN ON LIVE, MAYBE LONGER, MAYBE NEVER.
MAYBE NEVER. IT’S SO RARE TO HAVE AN
IT’S SO RARE TO HAVE AN INTERVIEW LIKE THIS.
INTERVIEW LIKE THIS. I JUST WAS CURIOUS, WHY YOU
I JUST WAS CURIOUS, WHY YOU DECIDED TO SPEAK OUT AND WHAT IS
DECIDED TO SPEAK OUT AND WHAT IS THE MESSAGE YOU WANT TO SEND TO
THE MESSAGE YOU WANT TO SEND TO AMERICANS AT THIS VERY DIFFICULT
AMERICANS AT THIS VERY DIFFICULT TIME?
TIME? >> SO REALLY THE MESSAGE IS
>> SO REALLY THE MESSAGE IS THIS.
THIS. THAT THIS IS A UNIQUE SITUATION.
THAT THIS IS A UNIQUE SITUATION. IT’S NOT LIKE A TYPICAL
IT’S NOT LIKE A TYPICAL DOWNTURN.
DOWNTURN. WE’VE ASKED PEOPLE TO STEP BACK
WE’VE ASKED PEOPLE TO STEP BACK FROM ECONOMIC ACTIVITY REALLY TO
FROM ECONOMIC ACTIVITY REALLY TO MAKE AN INVESTMENT IN OUR PUBLIC
MAKE AN INVESTMENT IN OUR PUBLIC HEALTH.
HEALTH. THEY’RE DOING THAT FOR THE
THEY’RE DOING THAT FOR THE PUBLIC GOOD AND THIS BILL THAT’S
PUBLIC GOOD AND THIS BILL THAT’S JUST PASSED IS GOING TO TRY TO
JUST PASSED IS GOING TO TRY TO PROVIDE RELIEF AND STABILITY TO
PROVIDE RELIEF AND STABILITY TO THOSE PEOPLE.
THOSE PEOPLE. THE FEDERAL RESERVE IS WORKING
THE FEDERAL RESERVE IS WORKING HARD TO SUPPORT YOU NOW AND
HARD TO SUPPORT YOU NOW AND WE’LL -- AND OUR POLICIES WILL
WE’LL -- AND OUR POLICIES WILL BE VERY IMPORTANT WHEN THE
BE VERY IMPORTANT WHEN THE RECOVERY DOES COME TO MAKE THAT
RECOVERY DOES COME TO MAKE THAT RECOVERY AS STRONG AS POSSIBLE.
RECOVERY AS STRONG AS POSSIBLE. >> ALL RIGHT, FEDERAL RESERVE
>> ALL RIGHT, FEDERAL RESERVE CHAIRMAN JEROME POWELL.
