Mohamed El-Erian on Coronavirus and Fed Rate Cut

Jill on Money with Jill Schlesinger

Audacy

Self-improvement, Business, Investing, Education

4.6 • 1.8K Ratings

🗓️ 4 March 2020

⏱️ 11 minutes

🔗️ Recording | iTunes | RSS

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Summary

The Federal Reserve lowered its benchmark interest rate by a half-point, the largest cut since 2008, in a move to offset the impact of the coronavirus on the U.S. economy. To help explain it all, we're joined via telephone by Mohamed El-Erian, Chief Economic Adviser to Allianz. Have a money question? Email me here. Please leave us a rating or review in Apple Podcasts. "Jill on Money" theme music is by Joel Goodman, www.joelgoodman.com. To learn more about listener data and our privacy practices visit: https://www.audacyinc.com/privacy-policy Learn more about your ad choices. Visit https://podcastchoices.com/adchoices

Transcript

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0:00.0	Welcome to the Jill on Money Emergency Bonus episode.
0:08.0	Gosh, we're getting used to this lately.
0:10.0	Well, when you get a chance to talk to a renowned economist and old friend, the day that the Federal Reserve announces a half-point emergency rate cut, You take him on the phone even if you'd rather have a
0:25.8	studio line. I recorded this interview with Mohammed L. Arion, the chief economist of
0:31.1	Aliance, just hours after the Fed rate decision, markets were selling off,
0:36.8	it seemed like everything was going to hell in a handbasket, here's what Mohammed has to say.
0:42.4	What do you think is the Fed's intention here?
0:46.4	So I think the Fed had no choice but to cut into the rates.
0:50.0	It was under massive market pressure and also political pressure.
0:55.0	But what has become very clear is something that economists knew,
1:01.0	Central banks didn't want to admit it and now is becoming more evident
1:05.0	is that Central Bank policy tools are ill-suited for what ails the global economy.
1:11.0	Okay, why don't you explain that because we're talking about the spread of the coronavirus,
1:16.5	the health pandemic?
1:18.6	What is it that needs to happen in order to calm the jitters of investors and also maybe make a difference to stave off a potential
1:29.9	recession globally.
1:32.2	The spread of the virus around the world does two things.
1:36.0	One, it paralyzes economic activity.
1:39.0	People don't want to travel, conferences get cancelled, and more and more economic activity come to what is known as a sudden
1:48.0	stop.
1:49.0	They just stop.
1:50.0	The second thing it does, it fear so that amplifies the economic effect.
	...

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