Update (1145ET): The market – just like yesterday – is staging a comeback after Kudlow spoke, perhaps in the hopes that The fed will indeed do an emergency rate-cut…

Nasdaq briefly went green…

Fed Speakers were active this morning and definitely didn’t suggest that a Sunday night rescue was planned (despite Kevin Warsh’s urging)…

0830ET Kaplan: “I’ll be prepared to make a judgement as we go into the March meeting, I am trying to keep my attention on what’s going on in the underlying economy.”

0905ET Bullard: “Further policy rate cuts are a possibility if a global pandemic actually develops with health effects approaching the scale of ordinary influenza, but this is not the baseline case at this time… Longer-term U.S. interest rates have been driven lower by a global flight to safety, likely benefiting the U.S. economy.” Bullard added that “even with the current stock market price drop, equities have been on a long upswing.”

1030ET Bullard spoke again reaffirming that US GDP Forecasts “don’t look very severe” and The Fed is “willing to react if virus has major impact but will want to wait and monitor events until the next meeting.

CNBC’s Steve Liesman also summed things up well:

“At what level of interest rates would I be willing to go to a rock concert and risk infection?”

*  *  *

With global markets in freefall, the S&P opening 3% lower and cementing its worst week since the global financial crisis; the Dow (or is thar Down Joanes) plunging more than 4,000 points this week, traders (especially levered ones) are left with just one option to stave off a career (and personal fortune)-ending margin call: praying, though not to god but rather to the Fed.

To be sure, the Fed itself has given enough reasons for this: on Monday the biggest uber-dove in history, former Minneapolis Fed and the Fed’s only negative “dot” ever, Narayana Kocherlakota penned a Bloomberg op-ed saying the Fed should cut not once but twice, and do it on an emergency basis ahead of the March FOMC meeting.

Then, this morning, one day after he penned a similar Op-Ed, former Fed Governor Kevin Warsh – who has finally crushed his “hawkish” facade as he guns to replace Powell as the Fed’s Chair – echoed Kocherlakota when he said he expects the Fed and other central banks around the world to act soon in response to the coronavirus outbreak. Warsh, no longer even pretending to give a rat’s ass about efficient markets and price discovery that is independent of Fed manipulation, recommended the Fed act as quickly as Sunday to assuage financial markets that have been in an aggressive swoon all week as the virus has spread.

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