Find the latest episode of "The Uncertain Hour" here. Listen

How the Fed responds to crisis

Kai Ryssdal and Sean McHenry Mar 3, 2020
HTML EMBED:
COPY
Federal Reserve Chair Jerome Powell announcing a half percentage point interest rate cut this morning. Mark Makela/Getty Images

How the Fed responds to crisis

Kai Ryssdal and Sean McHenry Mar 3, 2020
Federal Reserve Chair Jerome Powell announcing a half percentage point interest rate cut this morning. Mark Makela/Getty Images
HTML EMBED:
COPY

The Federal Reserve announced Tuesday morning it’s making an emergency half percentagepoint rate cut, as fears continue to mount about the global spread of COVID-19. Marketplace host Kai Ryssdal spoke to Daniel Tarullo, a former member of the Federal Reserve’s Board of Governors and professor at Harvard Law School, about what the central bank’s decision process may have been like.

“The mood was probably a fairly somber one,” Tarullo said. “I suspect a lot of preliminary discussions were held last week.”

Despite the rate cut, the Dow fell 700 points today. Tarullo said the market reaction implies that the Fed’s announcement may have further worried people about the severity of COVID-19.

Click the audio player above to hear the interview.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.