Trump jawboned the Fed to cut the funds rate by 50 basis points and the market's still tanking.

[DemocratSinceBirth]

Trump jawboned the Fed to cut the funds rate by 50 basis points and the market's still tanking.
The Coronavirus doesn't care about your funds rate

[captain queeg]

1. I just saw this too

If the markets keep going down Trump will start bad mouthing the Fed again even though this is a substantial cut. He wants quick fixes, same as when he was badgering the scientists and execs to tell him they’d have a vaccine in a couple months.

[DemocratSinceBirth]

3. What happens when there's a recession and the funds rate is zero?

[earthside]

7. Bad for us, good for Trump.

All Trump cares about is cheap money for himself -- he must have tremendous business debt.

This is just an excuse for Trump ... Powell and the Fed have caved-in.

I think we are in for a recession; working and middle class already strained and now Trump making politics out of a health issue ... a perfect storm of bad economics?

[DemocratSinceBirth]

8. When all you have is a hammer the whole world looks like a nail.

Trump believes cheap money is the answer to everything.

[wishstar]

14. Already talk of payroll tax cut to prop up our economy before election

Heard on CNBC this morning

[SWBTATTReg]

2. Absolutely. And they (rump and worthless worthies) took way too long to react (probably...

because all of his advisors were too scared to do anything while rump is in the room/out of the room) and thus, brought all of this down on the US because they reacted way too slow. Best thing to do is sit back, don't react, and ride it out. I suspect that rump and cronies won't do this.

[Botany]

4. China Stopped Its Economy to Tackle Coronavirus. Now the World Suffers.

The virtual shutdown of one of the world’s biggest economies is hurting business around the globe, from multinational firms to truck drivers and tour guides.

If the coronavirus plunges the world into recession, China will be the biggest reason. Economists caution that its shutdown threatens the economies of Japan, South Korea, Europe and even the United States. Huge corporations like Apple, Microsoft, AB InBev and Pfizer have already seen an impact.

Even those warnings understate China’s reach. An economic disaster just four decades ago, China now touches the lives of billions of people around the world. China matters to Mr. Smerling, Chilean farmers, Thai tour guides, Indian automakers, Mongolian truck drivers and countless others who depend on its economic might.

When China stops, they feel it.

snip

The virus, he said, “is going to affect every level of American society.”



https://www.nytimes.com/2020/03/02/business/economy/china-coronavirus-economy.html

[earthside]

5. It is a 'panic' signal.

The coronavirus supply-chain break down must be much worse than we thought.


U.S. manufacturing sector stalls as coronavirus hits supply chains - March 2, 2020

https://www.reuters.com/article/us-usa-economy-manufacturing/u-s-manufacturing-sector-stalls-as-coronavirus-hits-supply-chains-idUSKBN20P29T

[Johnny2X2X]

11. This is my take too

The Fed has info the public doesn't and that info is very bad. That's apparently how the markets are reading it too.

[TheFarseer]

6. The market got a half point rate cut and yawned

That’s pretty much worst case scenario

[Bev54]

9. Yes and that forces Canada to do the same

and we didn't need it, our economy is doing fine.

[captain queeg]

10. Down over 900 at 11:40 PST

[Yo_Mama_Been_Loggin]

12. Such a stable genius

[DFW]

13. Warren Buffet's BRK.A is down $10,000 a share

It was up $10,000 yesterday. That didn't last long!