It is posed an interesting issue for a major debt holder china and later the race is on for the head of the World Trade Organization and the European Union is weighing in we bring you the latest on the run with a packed show today so lets dive right in. And we leave the program with the latest policy update from the Federal Reserves federal open Market Committee as expected fed chair Jerome Powell and mts Interest Rates will hold near 0 through 2022 but the real question has been what action will the fed take moving forward. Since march weve been purchasing sizable quantities of treasury and Agency Mortgage backed securities you know or to support the smooth functioning of these markets which are vital to the flow of credit in the economy. Our ongoing purchases have helped to restore the Market Conditions and have fostered more accommodative financial conditions as market functioning has improved since the strains experienced in march we have gradually reduced the pace of these purchases to sustain smooth market functioning and thereby foster the effective transmission of Monetary Policy to broader financial conditions we will can increase our holdings of treasury and Agency Mortgage backed securities over coming months at least at the current pace paul added the fed will continue to monitor the situation make moves as necessary and went on to talk about the Economic Impact of the krona virus pandemic. The virus and the forceful measures taken to control its spread have induced a sharp decline in Economic Activity and a surge in job losses indicators of spending and production plummeted in april and a decline in real g. D. P. In the Current Quarter is likely to be the most severe on record. Even after the unexpectedly positive may employment report youre only 20000000. 00 jobs have been lost on net since february and the Unemployment Rate has risen about 10 Percentage Points to 13. 3 percent. The u. S. Central bank says it expects g. D. P. To contract by 6. 5 percent in 2020 but doesnt this big growth of 5 percent in 2021 and 3. 5 percent in 2022 u. S. Equities had bounced back after the decision but fell quickly with the dow dropping by more than 200 points however the tech heavy nasdaq continued its record run on wednesday above 10000 points for more on all of this lets bring in bill bus cohost christine and c. E. O. Of cool intelligence and former fed insider daniel de martino both then i want to start with you here what are the latest takeaways from the fed and did it meet Investor Expectations for what they wanted to hear from Jerome Powell. I think that investors have to be happy with what they heard today that the fed is expecting for gross to resume 2021 but at the same time to to quote how the fed is not even thinking about thinking about raising Interest Rates which is kind of a goldilocks scenario were going to have a return to g. D. P. Positive g. D. P. Over there over the next 12 months or rising or so unemployment is going to come down but the feds not going to think about raising Interest Rates which should keep animal spirits that are really propping up the stock market going hes hes hes saying in no Uncertain Terms i am not turning off the Printing Press so that should definitely have pleased investors which i think we saw with the way the nasdaq closed at the very least christi what data point do you think the fed is monitoring here at this point to gauge whether or not to continue being a cow. Dating or to start to tighten as we just heard drone policy. Well this is a really delicate game that the market is actually playing right now like the old narrative that we always spoke about before bad news is good news the worse the data actually looks the better for the market because then it expects to get help from the fed so thats why the markets want Employment Data to be good but not too good that against back to 5 percent unemployment within a few months because then you have the policymakers starting to tighten so the job numbers is going to be a big one to monitor because that will likely set the pace for policy and right now Market Participants are also watching for signs of the fed will continue to stay dovish in order to prevent any taper tensions on the day when it hold away from q. E. And 2013 so the market clearly wants a high level commitment to continue treasury purchases so currently the fed has slowed down dramatically those purchases that its Balance Sheet has already blew into about over some point one trillion dollars already but despite this the market is still pricing in that there is about another 3. 00 trillion left to go so we shall see if the market actually gets that or be disappointed and have a need jerrick leg down so today we actually never got any solid statements from the regarding his purchase and how long they will continue for the only indication we got was that it would maintain these purchases to quote sustain a smooth functioning of the markets which really doesnt give anyone any time i. Dont know know theyve the fed has actually pointed out that the there theyve never gone negative on Interest Rates they really dont have it in drone policy as he has no real plans to go negative however like you said were not raising rates any time soon so the fact of the matter is if the economy gets worse rather than Getting Better is this still the case and will we even you know is there a slight possibility that we might see negative rates this year or even next. Well i think that as long as your own powell is running the Federal Reserve that the answer that question is going to stay no he said that the fed is contemplating and he spoke to this in the press conference the idea of yield curve control which has been going on for some time and japan executed by the bank of japan but i dont i think that rather than negative Interest Rates he would take that next step and if need be i also believe that the fed would go so far as to buy stocks as well d via e. T. F. Again in the same way that the bank of japan has been doing no christo one of it to move markets here and 1st well start with commodities or oil really took a dive today after a surprise jump in crude inventories is persistently low oil prices kind of here to stay at least until we see all that travel and everything kind of pick back up after the crowbars paid emigres over which we dont know this may still be another year to 16 months out. So i think the persistently low oil prices are going to be here to stay because right now indications from the a. P. I. Data shows us stocks built up quite a lot between both crude and distillates and total crude stockpiles including commercial and as rose by about 8000000 barrels now thats the 2nd largest buildup in the past 6 weeks that we had and today you have Goldman Sachs also issuing a warning that the bounce an oil may soon be over and that it was completely overdone and the u. S. Shell industry will start hurting again from another sharp fall in oil pricing coming in the next few weeks so we already see this happening in the stock market some of the biggest producers of shell oil which includes exxon chevron and you know sources all of which are trained down between 3 to 5 percent today now the combined weakness and as you mentioned commercial travel and indestructible lead to the plainness in oil prices and Global Markets which is not expected to recover for some time and right now one of the biggest risks the market has actually saying is that the low price of oil will not only the fact that u. S. Will also heavily affect the political regimes in the middle east especially saudi arabia iraq and iran whose nation depend head. On oil exports up to 60 percent of it so the us persistently low oil prices could lead to a shift in the balance of power as a nations would not be able to prize social services to their populations and country such as menace well where its almost basically 100 percent dependent on how many they have absolutely no cushion to fall back on and they will have a tough time weathering the storm as its already suffering from one of the worst Economic Crises in modern history no did i want to talk a little bit about equities here with you because you know weve had this this kind of run despite the last few days of kind of meager losses you know lost a couple 100 points here and there in the dow every day as we talk about that as they can still hit that Record Number now with record out of play the news of a recession obviously of civil unrest in this Global Pandemic i mean are investors really is that confidence just there because of the fed intervention and they know theyre going to be there. I think that theres only one reason that the stock market is up right now and that is the Federal Reserve hes got 40 percent of the s. And p. 500. 00 that cannot provide Earnings Guidance a year out so you cant even really calculate what the what the broad price to earnings ratio is but we did we what we do know is that valuations are at an extreme we havent seen retail participation the likes of what weve been seeing these last few weeks said it really has been a matter of weeks with these micro investors swarming into insolvent already bankrupt companies once you get this kind of animal spirits going and an assurance from the fed that theres going to be a 1999 style of Alan Greenspan type of support for the stock market we could easily see this thing run the risk is of course that the feds actions are encouraging corporations that were already over indebted coming into the corona crisis to take more debt on yet while its inflating at the same time equity market bubble the likes of which weve never seen so id hate to be the person in charge of the fed when both of these dueling bubbles burst. You know booth and christie i would have had a whole show on that last one there thank you so much for your time thank you thank you. And the Federal Reserves printing of dollars in order to stimulate the economy is resulting in a new set of consequences for one of the largest holders of u. S. Debt china according to new reports china the 2nd largest foreign creditor has decided not to wait for the devaluation of the dollar and is actively selling american Debt Securities joining us now to discuss is both of those events just journalist ben swan now the Chinese Government has sold off u. S. Treasuries in the past to correct and what makes this time different than the last time. Well one thing that makes it different is kind of the situation they were in globally look at chinese have sold off dead in the past including 110000000000. 00 just last year alone about 10000000000 dollars over the last couple of weeks so its not a new thing necessarily but what makes it different is that china seems to be actively trying to divest right now of that u. S. Debt and u. S. Securities and trying to let go of those in the midst of a time when the u. S. Is as as chrystia danielle were just talking about when the u. S. Is printing money at an astonishing rate with the fed intervening as it is in the economy printing some 2 trillion dollars just in the 1st quarter of this year a lot and now been part of the reason for this move was because reportedly the fed was looking at negative Interest Rates despite being specifically against it as daniel said as long as hes in charge is probably not going to happen she is the fed insider she knows it better than any of the lot of us but as a judge today the fed you know did not lower the rates will that actually make any sort of difference well im not sure it does make a difference in terms of the way china is you know because i dont think china is necessarily going to listen and say well we trust the drone paul is not going to do this and if its not your own pal then it might be someone in the future when youre holding as much money in terms of u. S. Securities that the chinese are holding youre going to want to divest that china is the 2nd largest holder of american debt in the entire world and so when youre looking at negative Interest Rates you know that obviously thats good for you know what the Federal Reserve is trying to do if they get to that point but its terrible if youre holding that u. S. Debt so i dont think the chinese are necessarily going to take solace in the idea of the drone paolos going to save them at some point and again they going to look at the situation in say remember the Federal Reserve has been talking about negative Interest Rates for months even though they havent done it now as of wednesday they said theyre not going to it doesnt mean they wont at some point in the future and how much of this is actually about china attempted to kind of move away from the u. S. Dollar as the World Reserve currency because weve seen some other nations not like move fully off of it but kind of sell their stakes to diversify. Yeah i think thats exactly what it is i think more than anything else what were seeing is if you imagine the chinese and other nations of brics nations so brazil russia india china and south africa essentially looking at the u. S. Reserve currency as a currency they want to get away from in terms of the economic control that the u. S. Has as a result of it and so when they look at that they say well what do we do in order to really break free from that this is one step on the staircase that does that there are going to a lot of moves made by the chinese to break away from the u. S. Dollar as that World Reserve currency i think this is one of those steps certainly to do that and to divest themselves and open quickly before we were actually you know when im out of time but boom bust cohost ben thank you so much for your time. And time now for a quick break by here because just saw the other side the race to head the w t o is heating up as the e. U. And mexico have made moves to seize the spot straight ahead we bring you up to speed on the state of the race never get a break here the numbers of the close. In point is now made it to the gates of the central bank in the house just like of course apocalypse now was a remake of part of darkness and it really reflects the chaos and sanity of the vietnam war america is part of darkness americas plunge into the paralysed. Insanity by spending billions on to conquer really nothing of vital interest but spending billions and trillions to get there were servants a repeat of the insanity but on a much more epic scale. Its hard to take some from somebody if you know hey if someone replaces. Going to this interview today and i dont use market open then they take me. To. Syria. So how can i tell you stop selling drugs if well hire someone to put the money in a box. They judge me on the way to life its almost been basically mccullers peaceful for the worst do you guys know what secret me security positions are going to be that. David jacked me again. You see people get all their cars and ill see you coming no hard and it seems like theyll hurry up and run into the house like they dont want to they dont want to talk to your get your mail or anything like that. I just want to go. And do this. Just try reading. Some give me. Of know what you can do but she will be no use to you. But me my its always with a because it was a go through more with the late. Not something youd see immediate this happens today thankfully so thats the mood at the close to that. Specific question to the capital. City they say yes. Yes. 54 jets and more than 1300 military personnel are headed to heal some air force base in alaska where is that to say come on ill show you whats the reason for any type of enhanced u. S. Military presence in this area russia. What is it suddenly about the South China Sea that makes it so that it 11000000000 barrels of oil. Take a look at this map who really owns what kind of says no it belongs to us india says no we claim that that belongs to us both of these countries have Nuclear Weapons capabilities there is reason for concern so thats why were going to drill down on the story for you today right here on the news with rick sanchez where you know as we always like to say we do believe by golly its time to do news again. No shots. Actually. Just. Switch your thirst for action. Then welcome back the nomination process for the next director general of the World Trade Organization began this week it is set to go through the 8th of july and european trade commissioner phil hogan confirmed he is considering a move to secede brazils roberta as of 80. 00 who is vacating that position a year early at the end of august now the comments from home again come as e. U. Member states consider the prospect of unifying behind a single european candidate now officials have said that discussion will be had in the coming months no hope and spoke about the importance of naming a strong leader to the w t o during a video News Conference on tuesday saying i think there is an important amount of work to be done to reform the organization to make it more effective and efficient but also to deal with many