receive relief we should encourage them to do credit risk transfers with credit worthy counter parties and i can tell you that it's beginning to review these issues as well. >> okay. thank you. as you know it's hard for me to let a hearing go much of this year the federal reserve and the fdic and lcc intera rule to delay for two years the estimated impact on regulated impact of cecil followed by a three year phase in most recently my colleagues sent

a bipartisan letter urging for delay in implementation. every entity both banks and non-banks which were not included in the cares act on the same footing can conduct the study with real life se narp owe that we had going today. given the actions by congress, should we delay as i and my colleagues have called for and should the treasury examine the real life scenario we have gone through when kwuki inconducted study. >> i think that should be considered we are working on the study. >> the president issued an executive order with regards to each agenc looking at the rules, regulations that were waived, declined or whatever if they don't work now, why should we continue them down the road when we get out of this mess i assume everybody is doing that this accounting principle would fall in that area of we need to be looking at this as something down the road.

>> i would agree >> thank you appreciate that. there's a time and place for rules and regulations and a time and place that are nonfunctioning when you start over with the nation recognized organizations, and the federal reserve emergency facilities, i know you heard a lot about this issue for members on both sides of the aisle chairman powell especially the fed took modest steps to include smaller nrsro and the most recent faqs but if they accompanied by one of the three incumbent nrsros >> we started out getting this facilities set up quickly and we

went with the big three. we broadened it out to another look after taking a look we're balancing the need to move quickly and to move with institutions that we know well or that are well known and included more and more that's a process we're still looking at >> okay. all right. thank you very much. i yield back >> thank you >> point of inquiry. shouldn't i be on the other side of the aisle i'm sorry. okay all right. thank you. i appreciate that. chairman and mr. secretary, you know the word, unprecedented has been banned in my house by my college graduate he graduated remotely because he was looking around and was a little tired of that word maybe being used

he has a history his grandfather, my dad was born in 1921 on a kitchen table in a hired man's hand home. my mother was born in 1931 in flint, michigan. yes, that flint, michigan. had to move to oklahoma in the middle of the depression to try to survive when they lost their house and my grandfather lost his job. we know that there's history behind this. i'm not sure if this is unprecedented. it maybe unprecedented in way in the modern era where we have seen the government come in and sort of shut this down what we do know is from looking at history is we need to get the economy moving again the question is how. whether it's getting kids back to school as some have suggested because if you can't get kids into school, that's not going to free up the parents to be available to work. in my area, i know that

manufacturers and service companies are having a ver difficult time getting enough workers to come in to complete a full contingent of line workers, for example or to get a full shift filled there's various reasons. we know we have to address those folks who are not able to get a job and how do we distinguish from those that are just deciding to not take that job. the patriot bonus would be a 50% tax credit to any company that would give a per hour bump to their employees or a weakly bonus to their employee ors even a one time bonus to their employees to incentivise them to come off of that unemployment insurance and get them back

engaged in the work force. i think it's critical that we do that i want to say thank you for your work on the paycheck protection program. i talked to cheryl who owned a popular bagel and coffee shop who knows she survived because of it. don who owns a bowling alley in my district able to keep his folks on the payroll those types of things are critical and we're very, very important. i do want to draw attention and chairman powell and i had this conversation a couple of weeks ago. i brought up lacomb. it's a philadelphia based company that has a manufacturing production facility in my district it's a 26-year-old fast growing company. you may have got p their coffee and produced a number of great products for the last six years they have been focused on their growth they had to boar rrow tremendou

amount of money and lead to accumulation of debt they would not qualifier to participate in the main street lending program and i believe that the way that the leverage ratio requirements in the program are drafted really sort of punishing companies like lacomb and others who would otherwise be viewed as success stories. if it is the way the rules are written, it's designed to prevent funds from going to companies that have this debt but sometimes those companies might be some of those that need it the most. i'm hoping you'll commit to working with me on that to address that issue >> yes i'm not familiar with the company but we're happy to follow up with you and see if it can work >> great the remaining time, i talked to jeff this morning. jeff is 52 i talked to jim and liza she's 64, she's ligslightly

younger. she won't tell me how old. what do you want to tell them that have their small invetsm t investments in the market that are there to help them as they approach retirement. what assurances can we give them about etirement? >> i want to tell them and the other people that we are going to work with congress to make sure we can do whatever we need to do to get everybody back to work who lost their job due to covid. i'm also extremely optimistic about the research that's being done on vaccines and virals and combatting this terrible disease. >> thank you >> mr. meeks, you're recognized for five minutes >> thank you, madame chair >> mr. powell, you and others at the fed have written and spoken

about the importance of maintaining the economy at full employment as a way to pull a greater share of the minority work force upwards which is the first to be laid off and the first to be hired. while this is helpful, it's incredibly frustrating it's an admission that every one else gets a head start in the economy and communities of color only get out of a starting blocks after every one else has been running the race for mo months, years or decades let me ask you first, mr. powell, do you agree that structural discrimination exists in the united states economy today and impedes the economic success of communities of color and is a key to understanding why black wealth is just 10% of that of white communities? >> yes, i do agree >> mr. mnuchin, would you agree? >> i agree we need to do everything to create a level playing field. yes. >> i also believe addressing the

legacy of kpleconomic racism mut include equity investments communities that have been excluded for decades or hundreds of years that were disproportionately impacted by the financial crisis and now by the covid pandemic cannot borrow their way out of poverty and economic exclusion i believe a sizable equity investments over the coming decade or more and to communities of color will be essential to substantially lift them out of poverty and build resilience i'm working a proposal for creating a investment fund pulling together capital from the private sector and government to invest in these communities over the next decade or more. mr. mnuchin, do you agree that mass ifr amouive amounts of equ investments will be required to lift the communities and debt alone cannot solve the problem >> i think investments in these

communities is important and we look forward to working with you on your specific ideas >> great the same with you, mr. powell. can we count on the fund in you working with us? >> we'd be delighted to. >> back to you, given that secretary, mnuchin, the treasury department has the capacity and the authority to invest t to the best of my recollection -- t to the best of my recollection -- tier one authority and could use it for trust funds directly or through custodial accounts but it does not do so. since we agree we need to have investment, would you agree there's a critical role and providing minority communities access to capital and ask you then, will the treasury use its

existing authority and capital to provide direct support to mdis >> i have to review those authorities and get back to you. if that's something we have, it sounds very interesting. i'm not familiar with the specific authority let me look into it. let me say also the cdfis did a terrific job as well >> i agree i should have added the cdfis. i concur on that i look forward to working with you to make sure we're investing. we have public money as well as private money to invest so they have the capital and the wherewithal to move forward. that's the way to go have the fed and the treasury department made a -- on another issue i'll ask mr. powell this has the fed made a requirement of all asset managers and broker dealings with which they contract to partner with minority firms and fulfilling contracts in transactions?

>> yes, we do have obligations, for example, with the companies we have contracted with during the pandemic they have to address diversity and inclusion issues at their company and reach out to minority suppliers as well >> and the treasury, secretary mnuchin? >> yes >> i'm hearing from both you have that you'll commit to incorporating it aptnd making ia standard across all capital market programs that involve partnership with private asset managers or brokered dealers going forward with minority broker dealers and asset managers is that correct? >> that's really part of our rule book now. >> mr. mnuchin

>> that's something we work on as well. >> thank you i yield back >> you're recognized for five minutes. >> thank you >> i'm hearing from some lenders, and before participating in pppii heard comments from banks they were worried they might be exposed to legal liability without sufficient safeguards in a government grant program they felt like they had a duty to their customers and country during a time of need. now i'm told many banks are being targeted by litigation that takes advantage of the lack of clarity about how agent fees are supposed to be processed and how they ork for example, banks don't have precise answers on where the

fees were supposed to come from is an agreement between a bank and an agent required before any work on the application is completed or processed is this an issue you're aware of and does treasury offer any faqs to clarify agent fees and when they are due and how that works? >> i have become aware of this issue as well. what our guidance did say is that banks could pay agent fees out of the fees that they severed. that was intended to be based upon a contractual relationship between the agent and the bank to the extent there's any confusion on that, we'll look at clarifying that. >> it would be great if you dould could do clarifying faq. it will prevent litigation or allow for that litigation to move expeditiously and less

costly >> chairman powell, treasury and the international association supervisors have stated publicly that proposals to retro actively amend business interruption insurance policies and cover covid-19 claims would endanger financial stability. specifically, ais stated that they caution against initiative seeking to require ensures to retro actively cover covid-19 related losses such as business insurance and that those things were excluded in the insurance contracts. such initiatives could ultimately threaten policy holder protection and financial stability. do you share the concern requiring pay outs of uncovered policies and that they could result in insuring inkol vesolvs and destabilize our financial

system >> that's outside our authority except as you point out to the extent to which it relates to financial stability. we're monitoring it. so far we haven't taken a position on that i'm not asking you to exceeds your role but pay attention to it chairman powell, could you give us an over view of the current state of view of the municipal finance markets and effectiveness of the fed's efforts to stabilize the markets. >> municipal markets really shut down in the middle of march and we announced municipal liquidity facility and that announcement had an enormous effect on the functioning of that market you see a lot of healing in that market you see plenty of issuance of different credit ratings and different kind of issuers.

it doesn't return to where it was in february of 2020 but there's been a lot of progress as an example, state of illinois did most of its financing in the private markets without our support and came to our facility for its last piece of financing. i'm very pleased that the announcement affect was very strong and effective and is helping a lot of borrowers now >> i want to say thank you mnuchin and powell for your leadership and availability through this crisis. this hasn't been easy. clearly mistakes will happen when we're in unchartered waters but you both have been bold in your leadership. you made a difference and helped businesses survivor. you help the economy survivor. thank you for your leadership and we wouldn't be doing as well without it there's more work to be done i appreciate everything you have done and hope you'll continue to

focus on small businesses and medium businesses around main street because they are still struggling thank you so much. >> thank you mr. green you're recognized for five minutes >> thank you i thank the witnesses for appearing as well. i'd like to lay a proper predicate for my questions according to the latest data, in 2019 the vast majority of home purchase loans went to white borrowers at approximately 10 times that of loans that went to black and aapi borrowers here are the numbers the share that went to white borrowers, 60.3% to hispanic borrowers, 9.2%. to aapi borrowers, 5.7%.

and to black borrowers, 7% 60.3% to white borrowers, 7% to black borrowers. even when lending discrimination does not result in outright denials of credit, it drives up borrowing costs for minority home buyers. loans to black and hispanic borrowers continue to be higher priced for both conventional and non-conventional loans in 2019 home purchase loans were higher priced for the following share of borrowers to black borrowers, 20.3%. hispanic borrowers, 23%. white borrowers, 8.3%. consistently we see empirical

evidence there is evidence in discrimination in lending especially as it relates to people of color. here are my questions, dear friends. adjusting for education, credit score, assets and other relevant factors, do you believe that invidious discrimination in lending exist against borrowers of color i have been collecting these pictures i keep them in my office these are pictures of people who deny the existence of invidious discrimination as it relates to people of color. my question to you is, do you believe this invidious discrimination exists in lending as it relates to people of

color? if you do believe so, would you extend a hand into the air all right. would you kindly hold it up just like to get a good picture you have thank you very much. next question, do you believe that this invidious discrimination against borrowers of color can be addressed with legislation? can we craft legislation to help end this invidious discrimination if you think so, would you kindly raise a hand. legislation. can we craft legislation chair powell seems to think so mr. mnuchin? >> can i respond to the answer >> if you'll let me know where you're going first sometimes when people finish, i don't know what that said. this wouldn't apply do you >> i think we have legislation i think we need to do a better job. i'll say we can look at

legislation but i think it's more than just legislation >> okay. i agree with you that it's more than legislation but would you agree that legislation could be part of the remedy if you could kindly extend a hand thank you. i'm in agreement with you. we have a couple of pieces of legislation. hr149. the housing fairness act helps to deal with discrimination in housing as it relates to people of color and others as well. hr 166, fair lending for all act that would put an end to this race based lending and discrimination two pieces of legislation. hopefully they will move in congress here is my final question. i believe that it's time for us to reconcile in this country we have survivored slaifr ri but we didn't reconcile. we survivored invidious discrimination that exist, segregation but we haven't

regular siele reconciled would you work with a secretary of reconciliation, your departments, the agencies that you represent? bould you wo would you work with such a person to help us reconcile in this country if so, raise your hand >> all right there's a department then -- >> it would be a department designed to eliminate invidious discrimination and racism. that's what it would be all about at the cabinet level thank you both i yield back >> thank you >> mr. barr. >> i want to thank you all for your very decisive and aggressive actions that you all take from the out set of this pandemic i think both the fed and treasury through the emergency lending and with the tools that

we have given you through the exchange stabilization fund really made a difference in making a bad situation a lot less bad given the circumstances. thank you for your actions as an example of the agility that you have shown. let me thank you in particular for responding favorable to a letter that representative hill and i sent to you about streamlining and making less bureaucratic the loan application under the ppp program. that was tremendously helpful for borrowers and lenders cutting that red tape.

i'm hearing from those across the country where occupancy rates remain very, very low. shopping center owners, retail has not recovered. i think you'll see a wave of forclosures and defaults you did identify the problem with the inflexibility i think you mentioned we might need additional legislation to allow hotels to hire back workers. that's not the issue the issue is debt. over 100 of our colleagues urging the fed and treasury to establish a facility to assist commercial real estate borrowers especially those with cmbs

loans. secretary, you testified that you have 250 billion remaining in the esf to both of you, does the fed currently have the authority to establish such a facility and do you feel that market conditions and commercial real estate warrant action by the fed and treasury >> well, let me just appreciate and thank you for your letter. this is a large challenge. we have working with the fed, we have not yet figured out a way to set up a facility it's not out of a lack of interest or lack of desire there are structural problems. let me just add in many of these cases these companies don't need more debt. they need support. the chair said there's a difference between lending and spending

>> you said it in your comments and it's in the letter more debt may not be the answer here debt doesn'tsoever every problem. you have people that isn't confers debt you have these inflexible arrangements there's a serious problem that needs to get fixed we're racking our brains to see how it could be something we could do by lending. that's really what we can do is create more debt >> i would encourage you to consider in some cases additional indebtedness may be too restrictive that these owners could take on additional debt to get them through this period of time i look forward to working with you whatever the answer is real quick on main street, chairman powell. i have heard from a number of lepdse lenders and business owners who says the terms may prohibit lenders from participating

some have welcome the changes but many are still far from enthusiastic about participating. how is the fed going to encourage lender participation given hesitation >> we do webinars and out reach. we had something like 300,000 turn up. what the banks tell us is it's sort of a mixed thing. they are not getting a ton of interest in borrowers. many of them say they expect that will change they expect the demand from borrowers will increase. we continue to be open to playing with a formula and making adjustments going forward. >> my time is expired. the reason main street doesn't work is the ebitda limitation.

i yields back. >> we'll continue to talk about this issue and pay attention to what you're saying to us about it with that, mr. cleaver you're recognized for five minutes. >> thank you very much thank you for being here chairman powell for being here again. i know you have been asked about black and brown business owners being left out of the pot that we have clearly intended to help

during these down times. i'm frustrated like a lot of people not only in congress but a lot of people around the country. what is your philosophy mr. secretary. maybe not philosophy but what do you have to say to the person why weren't rule and minority businesses more equally supported in the emergency program? what do you think happened >> well, let me just first say, we need to all do a better job at making sure that we have sources of funds for those businesses and to support those businesses in the ppp we have worked with lots of different people to make sure that the cdfis get there. across the board we can be doing

a better job >> thank you i guess i'm here dealing with these minority businesses right now. if i say we all agree we need to do a better job, can you any ideas or an idea on specifically what we can do better? >> we would be happy to wrk with you on that. we have been working with robert smith and a bunch of external people to try to figure out how we can use the cfdis and make sure mdis have more access to capital. i think there's a lot of good ideas out there that we need to continue to explore before we have a one solution. i think there's multiple solutions. >> we're doing a great deal of outreach with mdis and cdfis to

get them access to the program that we're doing, including the ppp and we're having a meeting with the national bankers association tomorrow on july 1st. we're doing a lot of outreeach. we think it's having an effect >> thank you >> i did have a 35, 40-minute meeting withest ester george. i appreciate her going into detail about the issue we were raising as best as she could thank you for doing that i appreciate that. i was hoping the secretary would understand the pressure that these businesses are under which means as representatives of

theirs, we are also in tremendous pressurized situations and i was hoping that i could go back and say this is what we're going to do hence forest i appreciate where we are. many of my colleagues have already raised the issues. i would say you mentioned earlier, you can't respond to any classified intelligence. i won't ask those questions. i am nevertheless going to send you a letter and i don't expect a report i'm doing this for my own personal historic concern. that is i'm sure that the next generation and the generation after that will be asking us, grandma, what did you do

grandpa what were you doing during the times things were going off the rails. thank you for appearing. i yield back the balance of my time >> thank you mr. tipton, you're recognized for five minutes >> thank you appreciate mr. secretary, chairman powell. you taking the time to be able to be here do appreciate all of the efforts that you've made to be able to stimulate the economy and to be able to help our folks at home did want to bring up an issue that we heard back from our desk under the cares act the government did provide for communities, 500,000 or more people to be able to apply directly to treasury for assistance colorado that translated into 59 of the 64 counties in colorado were unable to sever direct assistance full recognition obviously the

additional dollars went in over and above the direct assistance able to be applied for i guess what i would like to be able to see it from you as there been any oversight to be able to do what i believe was the congressional intent to get those dollars back into small communities like those that i represent and we had any sort of examination of how those dollars being spent by the states >> we agree with you the reason we didn't do it to less was purely administrative we put out guidance saying the states should distribute money down we also had discussions with the ig to review this. we appreciate your comments. >> thank you i appreciate the recognition that the small communities, we

create 7 out of 10 jobs. a lot of that does happen to be in rural america and appreciate your attention to that as we're looking forward to any other package that may come forward. one of the biggest aspects that you both spoken to is the ability to get the economy going and make sure we'll be able to create jobs once again providing access to credit is going to be ultimately critical to being able to do that we have some that are tempted to be able to wipe create slates clean during the pandemic. would you speak to the importance of being able to maintain unalter and complete credit profiles so lenders can evaluate the credit worthiness

of borrowers >> yes, i believe that very important. >> one of the issues we hear on ppp that lenders big and small readily answered the call to make the loans out since there was no guidance when lenders began providing ppp loans, what can agencies do to the extent to hold them harmless in terms of provisions to the entirety of the ppp process. adequately president-ele lly pr lenders trying to do the right thing. >> most of the certifications the borrowers had the make and they would be liable for there were a few things that the

lenders had to do which was check the payroll and payroll documents. it was supposed to be pass through mechanism. >> thank you there's an interim final rule. the sba was also able to draw a claw back feature of the fee within one year if they determined that it isn't eligible for the pp loan considering the lenders did act in good faith through the ppp process and dedicated significant amount of resources to help the economy, why did the agencies decide to be able to take this approach >> i hope that's small number of loans that that turns out to be. the thought of taxpayers paying

fees seemed to be unfair i think the fees were attractive to the lender. if there were a small number of loans that were the case, i think there was still well compensa compensated. >> thank you, mr. secretary. i yield back >> thank you >> thank you thank you for your testimony and your leadership. the pandemic dealt a real blow but you helped cushion the blow. we're not out of this thing by any trestretch of the imaginatin we see california, utah, texas with rising case numbers rising hospitalizations, rising death counts we also know at the end of july, the pandemic unemployment

insurance payments cease as it's currently written. we know that a number of the moratorium on evictions and forclosures begin to cease and the eight weeks provided under the ppp for those initial takers of the loans start to run out. i see a brick wall at the end of july mr. secretary, you have played a key role in helping to fashion the fiscal pieces of this, the cares act. we call what we have done as this next it ration, the heroes act, so that law enforcement, teachers, transportation workers, medical staff don't get laid off in addition to the ones that already have been lads off by local governments, by state government, by school districts. i'd like -- i asked mr. powell a

question when he was in front of our committee a couple of weeks ago on he says i will say state and local governments employ something like 1 milli3 million people state vs to balance their budgets. revenues go down and expenses go up and states cut costs. we have seen state and local governments layoff a million and a half people already. state and local governments provide essential services as we all know you're know they are a great and big employer i would say it's worth considering. if we don't do something, it will hoeltd back the economic recovery if they continue to lay people off and continue to cut essential services and in fact, that's kind of what happened post the global financial

crisis mr. secretary, as you, again, are sort of in the middle between the house and the senate and the white house, where are you on assisting state and local and school districts to help back fill the lost revenue that we have seen hit them already? >> we tried to issue guidance as flexible as possible for firefighters, first responders and policeman so police could use the money and had a safe harbor and didn't need to let any of those people go, which would be the worse time when we need to support all those people i'm committed to working with the democrats and the republicans and the house and the senate in july we have a lot of important features that all come to an end

in july. i'm committed to these conversations and look forward to working with every one. >> we passed this. the senate has been sitting on it and time is ticking we're looking at a $2 billion drop in tax refr knvenues i would just ask you to really push on that one or theirs going to be a lot of people laid off at just the worst time in very essential sfrss. you have done a heck of a job. you get patted on the back now

we're still in this emergency and now we have to focus ongoing forward which is this next it ration or there will be a lot of trouble coming into this summer. with that i yield back >> thank you very much i'd like to thank our witnesses for their testimony today. without objection, all members will have five legislative days within which to submit additional written questions for the witnesses to the chair which will be forwarded to the witnesses for their response i ask our witnesses to please respond as promptly as you're able without objection, all members will have five legislative days within which to submit extraneous materials to the chair for inclusion in the record this hearing is adjourned. thank you very much. >> thank you all right. maxine waters bringing the gavel

down on a hearing where the testimony was wrapped up in front of her financial services committee. the topic generally was the response to the coronavirus pandemic and what might follow from it. for a quick check on the markets. it's a choppy trading session. the dow has been flat most of the day. let's look at where it is now up by about 20 points as the second quarter comes to a close the s&p 500 up about 1% and the nasdaq as it has been doing most of this very historic quarter best in i think almost more than two decades up 1.37% for more on what wall street was focused on during the testimony, let's bring in kayla >> tyler, the two top u.s. economic officials, the treasury secretary and the chair of the federal reserve acknowledge the

u.s. committeconomy is recoveri. significant challenges remain. they did say the stimulus programs, as designed, have largely been successful and where they haven't been successful both of those agencies remain open and flexible to changing them to suit the needs of neamerican consumers and businesses going forward. the fed chair said only 300 banks signed up because there wasn't that much demand for borrowers. he was open to changing the terms again if that continues into the fall. on the small business lending program, the treasury secretary said the $134 billion that remains in that program should be repurposed for businesses that continue to be hard hit and will continue to be hard hit in the months ahead there were a few specific industries that both of those officials called out from hotels to retail to commercial real estate and they paid special attention to businesses that have a high amount of leverage noting a lot of these programs are not tailored for them.

the federal reserve chair was asked specifically about a second out justice of the peace bre -- out break and whether the economy would be shutdown. here is how he responded >> i wouldn't forecast that. this just hypothetically, second outbreak could force governments and force people to withdraw again from economic activity i think the worth part would be to undermine public confidence, which is what we need, to get back to lots of economic activity that involve crowds >> chair powell said there remains extraordinary uncertainty in the economy and how the consumer behaviors will play out he noted one way the fed is trying to keep this consumer and spending crisis from turning into a banking crisis is by that decision earlier this week to limit bank dividends and buy backs to try to keep as much capital on hand forrainy day

depending on what lies in months ahead. tyler, back to you >> hang on for just a minkute as we bring in another guest to discuss this further reaction to powell and mnuchin there's a lot of discussion about what comes next as there's a cash cliff that is going to sta start in part today and at the end of the next month, july. does the country need another infusion of fiscal stimulus or fiscal safety net here to continue the progress that's been made so far we made a good efrt there with the paycheck protection program. we have the fact the extended

understand insurance benefits are set to expire at the end of july. could drop if we don't don't provide assistance to those who have lost money from the job market >> in what form would you recommend that assistance should take extending the unemployment stipend or several things in combination zbling it's several things in combination. i think it's better to go too big than too small obviously, households are going to be cash constrained because of the loss of jobs so we need to think about the unemployment insurance benefits think about whether we want to provide additional stimulus payments or cut the payroll tax and we need to hi about state and local governments.

they're going to face a huge buffett kr budget crisis. they've got to balance their budgets unlike the federal government so i'm concerned we could see huge budget cuts and job cuts at the state and local level and that could really sap the recovery and be a problem the rest of this year and into 021. 2021. >> that was something the last member was drilling hard on, the colorado member. he was saying if this comes to pass and you end up the massive layoffs across the municipal workforces of multiple state, you could have a second economic leg down >> and that's certainly part of the tug of war here, tyler, but it is going to be a lightning rod when that debate takes place in july because many republican members of congress believe that you know, that these states and municipalities should not be reimbursed for lost tax revenue. that that is not the job of the

federal government we heard rick scott talking about that, saying that when he was running the state of florida, they didn't get reimbursed for all the money businesses lost during hurricanes certainly this is a different scenario because the government ordered a federal shutdown for businesses in march and so there's an idea logical debate about what responsibility the government has to fill in some of those gaps, but this is going to be a political food fight when the debate begins in just a few weeks time and part of the reason why republicans want to not approach this debate until after a they've returned from their work period in the middle of july is because they'll have so much more data at this point. about what the job market looks like, what consumer spending looks like they want to have that data to know where public opinion lies and a what they need to do >> thank you very much kelly. >> to the bond market now. rick is tracking the action at the cme. ten-year was ticking up a a bit earlier. >> absolutely.

all yields are picking up a bit. if you look at intraday of two, it's crawled back to unchanged it's low yield today at 14 basis points that's pretty much the all time low yield close for twos if you look at threes, fives and sevens on one chart ifs 20 year, they have automatic time historic low yield closes yesterday and they're all building upon that to some extent look at a two day of tens. it is up several basis points on the day and why? leading into the last jobs report, we saw the same thing on the long wednesdend. we're expecting over 3 million jobs that isn't bad and i think that's the way the market's going to trade into thursday notice the high. around 134.5 now open up to march 1st it's a close to 24.37. we were above it intraday. back to you. >> all right thank you very much. stocks are higher right now. modestly so as you see on the

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driver of market action in the back half? >> i think they'll continue to play the role that they have, which is to be there to support consumers, small business. keep rates low so i think they will, but i think the economy also is responding, getting less worse as we like to say. i'm not sure that what the pace exactly will be, but i do see improvement in a number of areas where we see retail sales, more activity with regard to to travel, eating out it's modest, but it's occurring, so the fed is a big part of that the fiscal stimulus is a big part of that, and yes, they'll play a role, but at some point, we have to really see this organic growth come back and i think we see signs of that >> and andrew, it's interesting, you say if you look at the last economic recoveries, all three

valuations looked like, but they were still good buying opportunities. would that be your answer for those who are concerned? >> isn't it a great lesson the stock market rallied hard, march, april, may, then in the end of june, the head of the central bank stands up and says the economy's stronger than we expected so the economic data is coming to what the stock market has already told you, which is it's a v recovery and so i just hope everyone remembers, don't look at the economic stacks coming out of recession because the stock market will lead yet again we see that >> we don't have a ton of time i want to get something tactical you point out the software sector is five times the rest of the valuation while financial and energy are within 5% of their lowest valuations in 30 years, so which side are you on investment wise? >> i think there's a bubble in many of these tech stock, but

you can't say the market's in a bubble because there are so many reopening stocks that have that were a off the lows of june and have concentrated sideways to down i think those stocks are set up for another after basically selling off in the month of june >> all right and jeff, i see you have technology name, but not the usual suspects tell me about micron, qualcomm and the rest >> we should think all those are examples of stocks that are beneficiaries of what's going on in covid and swrus this move to online yaqualcomm is all about a 5g 17 times you know pe and yet a double digit earnings growth rate dividend yield of over 2.5% and dividend growth of ten these are high quality stocks with great balance sheets in the midst of covid a number of these stocks, micron

being an example, a great report last night it gives you that cyclical push without the head winds that some of these other areas like industrials are faced with macro concerns so that gives you some flavor for what we're thinking about tech >> thank you we appreciate it tyler, good to see you for a few short minutes. pick you back up tomorrow. >> it was our best 14-minute show ever. >> see you tomorrow. >> welcome to the closing bell this afternoon hey, morgan, who's in for sara the dow is lagging today largely due to boeing. let's look at what's krooifing the action u.s. consumer confidence rebounding in june but the recent surge in covid cases is raising questions about how long the rebound might last on that front, dr. fauci warned today the latest outbreak is going to be quote, ver