senior fed economist and deputy director of the bank's financial stability division kiley said that the fed will need to monetize deficit equal to 30 percent of g.d.p. or $6.00 trillion dollars now the fed is already purchased a record 3 trillion dollars in bonds in march that basically means another $3.00 trillion is needed those are some insane numbers we're looking at here are we just now caught in this vicious cycle where more and more stimulus is needed to avoid a complete collapse. yeah i mean if we're actually i think that's the case the national debt is now eclipsed $27.00 trillion dollars deficit interest in 2020 is $3.00 trillion dollars although it was monetized by the federal reserve c b o says or what you deficit is going out over the next 10 years will be $1.00 trillion dollars all that has to be monetized by federal reserve and if you think you can build a fire it will help the economy by borrowing and printing money not just america it's all over the developed world so this is not just americans we are being held together the developed world is being held together by rubber bands and glue oh or efficiently lower interest rates by the way and the only thing i reme

senior fed economist and deputy director of the bank's financial stability division kiley said that the fed will need to monetize deficit equal to 30 percent of g.d.p. or $6.00 trillion dollars now the fed has already purchased a record 3 trillion dollars in bonds in march that basically means another 3.5 trillion is needed those are some insane numbers we're looking at here are we just now caught in this vicious cycle where more and more stimulus is needed to avoid a complete collapse. yes. i think that's the case the national debt is now clinched $27.00 trillion dollars deficit is just going to be down to $23.00 trillion dollars all dues monetized reserve should be 0 says or what the deficits don't you know the next gen years will be $1.00 trillion dollars all that has to be monetized about federal reserve and if you think you're going to build a viable. why or when you're drifting not just america or the developed world it's not just americans we are being told to get the developed world is being held together by rubber bands and. or efficiently lowered interest rates by the way the only thing i remember is you don't remember if i say today the only thing is holding your face

the gulf coast devastated by hurricane laura just weeks ago now bracing for round two. another powerful hurricane set to slam the same area. the big concern right now. >>> the growing fallout after the feds bust an alleged plot to kidnap the governor of michigan and overthrow state government. what we're learning about the suspects and this morning the trump campaign fights back after the governor claimed president trump is complicit in the plot. >>> caught on camera, a close call for a distracted pedestrian. >>> a consumer alert. the new scam targeting amazon slopers. >>> and later feel like living under a rock for the next month? well, now you can. >>> good friday morning, everyone. we begin with president trump's health. >> during a new interview last night, he said he wants to return to the campaign trail as early as this weekend. >> his doctor says the president should be able to resume public engagements tomorrow, which is ten days since he was diagnosed with covid-19. >> but this morning many unanswered questions remain regarding his condition and the state of the presidential race with just 25 days before the election. this morning president trump eager to get back on the campaig

and probably the most important thing right now, the fed will continue to print money until they reach dual mandate. and that won't happen anytime soon so that really is underpinning a lot of things right now in my opinion. >> when we look at sort of equities to buy and all this, some people say you buy the safe sort of big consumer discretionary company, walgreen a name you like, koesk cococa-c another name you like. dividends look okay. >> yeah, just to hit on the points you made there, in this low yield environment, i continue to think that dividend payers and companies that grow their dividends will continue to look attractive. walgreen's has been hit a bit by the pandemic, but their yield is over 5% and they grow that yield. and you mentioned coca-cola, jchlgt jpmorgan chase, their yields are over 4%. and those are certainly some names that look attractive to me right now. >> you like the financials, and they have been left in the dust. as the yield curve might haves, knelt intere net interest margins have compressed, 0.71 on the ten year yield. i don't see how these companies mak

now the feds and private industries are spending billions on it every year. >> all the people that survivedare finding up to 50% have heart damage and other organ damage. how will you regenerate the tissue? it is stem cell therapy. >> it provided research money for covid-19 treatment. >> using this cell based therapy. to reduce the injury to the lungs from covid-19. and to also accelerate the recovery process. >> executive director of the center for genetics and society opposes prop 14 because of the quote shameless over promising and height set the stage for hundreds of under regulated commercial clinics now offering unapproved treatments that cause tumor and blindness. >> i'm not familiar with specific concerns about tumors. in fact cell base therapy we used in others has been shown to be effective without that problem. >> it should be pointed out everyone in the piece is in favor of stem cell research. it's opponents feel the billions being asked of taxpayers could be better spent on healthcare, housing, jobs or education. >> okay. thank you. our web site is good resource preparing to ca

now. the fed chairman shortly before the president came out and sort of ended negotiations, came out and said you can't go too big here. can you go too small. you can't go too big. act now. now we're in the sort of phase of uncertainty. you know, we've been through this cycle covering negotiations between the white house and the hill how many times in the course of this presidency where president trump stays out of it, stays out of it, stays out of it. jump in. everything goes to chaos. sometimes it comes back together. the problem is that election is looming and many members of congress want to be campaigning. >> right. let's add to the uncertainty the fact kaitlan collins, one week from tomorrow, the president is supposed to be at debate number two. debate one cost him and cost him dearly. public opinion polls, refusal to denounce white nationalism, constant interrupting and bullying joe biden. co-chairman of the debate commission says i hope so but it depends on luck. >> it will depend on the president's health. he said yesterday, i understand from the newspapers, he's ready, raring to go,

now. the fed would have to upside in or to offset the supply. enormously to offset the supply.n: what matters more, the outlook for inflation or the outlook for supply at the long end? michael: inflation will set a fundamental level for bond yields. supply can create some significant swings within that. low righte are so now, there's not much upside. we have seen a lot. we saw equities move pretty substantially in the last month. 10 year yield stayed in the six basis point range the whole month. you're just not seeing much of a hedge benefit from treasuries at these levels. that means less fundamental value in treasuries. treasuries underperform corporate the vast majority of the time. the only reason you own treasuries is when they outperform is when the equity market gets hurt. when you lose some of that hedge value, that diversification value, treasuries are fundamentally worthless. -- fundamentally worth less. lisa: treasuries can no longer be a hedge, right? there could never be a balance to your 60-40 portfolio. do you think it is too soon to ring the death toll for bonds

now. the fed is banging the drum, banging the table. they are saying that the u.s. economy is desperately in need of a stimulus package. in terms of how you see the u.s. economy right now, how binary is this? how different are the outcomes if we get it, if we don't get it? ellen: i think the different outcomes are basically on how long it takes us to recover from not just covid, but from the lingering impact of long-term unemployment because we are still at an unemployment rate in the u.s. just under 8%. while that feels very good compared to where we were during lockdown, taken alone, that is a very high rate of unemployment, and typically not a time you would want to mess around with taking fiscal support away. of amhersten stanley pierpont was on earlier. he said the u.s. recovery could continue even without fiscal support. do you agree? ellen: i do agree, and that is in our numbers, too. we have mechanically stripped out an incredible amount of income from household pocketbooks with the expiration of benefits at the end of july, but it is positive growth. it is

so, this is a network that is now the feds are trying track. e as you read through the transcripts of the online messages with the intent to harm law enforcement and at least some of them succeeded in that goal. >> josh, the president and the attorney general bill barr have been focusing on left wing extremism and blaming violence on antifa, in both this case and the case of the so-called umbrella man, who helped insight riots in minneapolis, it turned out to be instigators from the right. when you go back and all of us, and back to the place in time, after this civil unrest kicked off in several cities. you had attorney general william barr, you had president trump coming out vocally and blasting antifa, saying that the leftist groups were behind the movements. the police took a look at 300 arrests that took place around the country. only one of the incidents did federal officials reference anfifa in their prosecution. there's been folks on the left and folks on the right. we continue to see folks like the boogaloo boys that are on the radar of

and plenty of monetary support, if not enough now, the fed will step in again. does it really matter what the outcome of the election is what do you make of that thinking i keep hearing it more and more? >> yeah, i would push back on that i think the outcome matters quite a lot. but what i do think the market is seeing is one that the probability of a democratic sweep is going up quite substantially. and if you get that democratic sweep, you're looking at a very sizable fiscal stimulus coming in the u.s. very early in 2021 so i think it does matter, you know, what happens, but the market is moving toward a democratic sweep >> in terms of what that means for the dollar, i would be interested to hear your thoughts on that. there is a view that we do get some dollar weakness we saw the pboc over the weekend trying to enter the market to ensure that some of that strength that they're witnessing, their own currency is tamed what do you think we're setting up for if there is a blue wave >> i would say, just firstly on the china news, it's going to be very difficult for

the u.s. banks. editor joinsonomy us now. what was the fedon for this latest announcement taking this halt to the end of the year? inwell, you heard it there michael mckee's interview with thomas barkin, the keyword word being uncertainty. that is something the fed is holding onto and their message. they cited it on wednesday saying the economic uncertainty as well as the need for the banking industry to preserve capital were driving this extension. there are some unhappy campers with this decision including the likes of j.p. morgan, which had interest inaled resuming buybacks and they are likely to be disappointed. there was one dissent from brainerd. she had said in june that allowing capital distributions to show we have not learned the lessons from the global financial crisis. she was pushing for more restrictions and said that it rates a significant risk, these small allowances for distribution, significant risk that the banks will need to raise capital or curtail credit at a challenging time. as you might imagine, some democratic lawmak

the government spending plan. it,line: let's get right to joining us now is the former new york fed president, bill dudley, now workingthe university as academic, and economist. your perspective is that we need more in terms of fiscal spending. doesn't matter that we are not getting it now and we might get it after the election. dr. dudley: obviously if we got it after the election, it would not be a big deal. the prospects are that we will not get anything substantial publicly until after the inauguration, which is many months away. point thinkat this joe biden is probably going to be elected president. i just can't imagine the outgoing trump administration, if that happens, is willing to deal on a financial stimulus bill with democrats. we are not talking a week or two, we are talking months. that is important in an environment where the pandemic is worsening. there was going to be more social distancing, more forced lockdowns of various kinds of businesses, so the outlook for the economy is deteriorating. we are looking in the rear mirror. this week we will get the third-quarter gdp, it will show the worst third-qu

now for asset bubbles? to our traders. scott redler, phil flynn. scott, the feds going to do what the fed's going to do, keep rates low, but now they are suddenly worried about asset bubbles. you see any forming? do you expect any to form? what are they? tell our viewers. >> well, first of all, the fed has done everything in their power to keep assets inflated so for them to be worried about it now, i don't think they will be the pin that pops the bubble, so to speak. i don't think we are in a bubble. i think some groups might have been overheated. maybe if you want to look at a sector, maybe the spac sector. everybody wants to have a spac and everyone thought each one of them were going to perform well but now it's a little oversaturated. you need to be very careful if you are going to be investing in spacs because they are not all created equal. but as far as tech and the s&p, you know what, people are a little anxious right now. we have an election coming up in a few weeks, people are worried if it's going to be contested. we have major earnings reports coming

the federal reserve? right now? skanda: i think the fed is being justifiably clear.n though fiscal policy is not directly in their mandate, it directly connects and relates to what the fed is trying to achieve in terms of maximum employment and price stability. how they define those goals are inherently dictated by the choices made on the fiscal policy side. the cares act, they could find ways, as brian chapala highlighted, there are ways to make municipal facilities more attractive, lower the costs trying to borrow. it could still help at the margin in terms of making that market even more liquid and make it easier for issuance to take place. we are talking about things at the margin, whereas fiscal policy can do direct payments to people who really need it to make sure their standard of living is kept afloat in a period of immense turbulence we are headed into. a lot of the experts say that the havoc has a greater risk of getting out of control, especially because we are getting colder months. second waves have actually a lot more common if you look across the worl

isn't more treasury issuance so it's a matter of the fed not having enough product out there to buy given the limited amount of treasuries that are right now in circulation so the fed's tool box is extremely limited until the fiscal authorities can get their act together and get stimulus spending passed again that could not arrive and so we're looking at the next of the next of the next holidays valentine's day show we don't like to make the show so much about politics but obviously as we. get a presidential election coming up just a week away it's going to eating up all of the headlines at this time so in your opinion and what you're seeing what are investors looking at when it comes to this election and the turnout at the end. well it seems like the market is actually hedging for either candidate to win because we saw coming up into this we are looking more like a biden when people were buying more alternative energy selling oil and gas and there was a rotation into the small caps which would really be manufacturing given the fact that they probably would assume by train wars with china might ease up but then we've got into this week now

it will be a very good overview of where the fed sees the economy right now. and the home for more relief from washington, helping to fuel today's big rally, as you see the nasdaq up 200 points targeted aid maybe, perhaps as much as $25 million for airlines we have details on that. >>> later, a democratic-led house panel calling for a crackdown and breakup of the country's biggest tech companies. the chair of the anti-trust subcommittee will join us later this hour as "power lunch" starts right now >> tyler, thanks welcome to "power lunch. i'm kelly evans. we're digging through the fed minutes just released. in the meantime, take a look at what's leading the rally it's consumer and consumer discretionaries. the house panel is going after big tech it's a mixed bag but apple and amazon both up more than 2%. with markets rocketing back after the late day drop we saw yesterday, stimulus back on the table. bob pisani has more on what we're seeing here. >> in fact, we're at the highs for the day. we're on light volume again. the volume tends to be lighter on up days

they are now they need the stimulus people are still suffering from i'm goin meant that they can't get to a deal now this comes on the same day that president tweets this now our congress and the fed 'd just on different pages. obviously are out there they haven't really going to go along from day one it seems so they're on different pages which is not a good sign for the economy really we need to see things come to. either and at this point i mean it's we're going into election that is very uncertain and a lot of people are really in need for this kind of stimulus plan because as christine said people are running out of money they're running out of their borroughs tax free deferred interest kind of loans and if this money doesn't come through now it's not coming through for months and it could cause a cavity more or less in the small business sector when it was interesting because yesterday or at least on monday headlines were saying that there was going to be a deal made one way or the other. and had these talks that lasted an hour they remained pretty much in gridlock over those enhance unemployment benefits and that number unemployment rate is is actually still going up unfort

why the feds are now getting involved. >> the two pieces of thai integrally have been on display more than half a century now, the usa says those pieces need to go home. they are indicative crawlspace that goes above the doorway. ancient thai temple decorations hand carved out of sandstone from the tenth century. >> we know they came to the united states in the 19 60s. don't know when they came to europe. both of these were purchased one in london, one in paris at some.they left thailand and moved across the continent. that is the mystery under what circumstances did they leave thailand. with a stolen? where they exported legally? without papers, no proof. the thai government wants them back in the u.s. attorney stepping in. >> morning for us was the museum took the position they were in stolen and statute of limitations to prove they were stolen have room was concerning to us and prompted us to take the next step. >>reporter: the u.s. attorney filing a civil suit to make sure the pieces are return. the museum says after researching history a too agree artifacts will be returned to th

barack obama, the former president, campaigning tonight for joe biden in philadelphia, delivering a blistering rebuke of donald trump's presidency. let's get to our breaking news now on the feds accusing russia and iran of election interference. let's discuss now. cnn's senior justice correspondent is evan perez. our national security and legal analyst susan hennessey, and miles taylor, former top official in homeland security under president trump. great to have all of you. thank you so much for joining. evan, what is the latest on the attempts by russia and iran to interfere in our election? >> well, don, according to the director of national intelligence, what the iranians and russians both did was they were able to obtain voter registration data, which, you know, is very concerning, right? on the iranian side, according to the dni, they were responsible -- the iranians were responsible for sending these spoof emails that people reported getting in states around the country that were threatening people saying you've got to vote for trump or else. and according to john ratcliffe, the dni, he says this was some way attempted to undermine president trump. there's a lot of ske

the fed. i think that is important. what he said is he could tweak the rate of qe. they could do more regulation of the banks. the fed right nowant the banks doing big payouts or buybacks heading into year-end because they want to make sure they have plenty of equity cushion. if we were in a 10 out of 10 risk environment, a risk-taking environment, we are probably in a risk taking environment. they want to make sure they don't do any long-term damage by having too much money in the financial markets and not find its way into the economy. that is a very important, each cycle is different. what has really been somewhat illuminating,also is the bifurcations in this market. you have seen five stocks do really well. that gets to your point about why there is greater scrutiny about the tech sector. contrast that with areas that have had a much tougher time around energy or something like that. i think what we need to all root for is the stimulus, both monetary and fiscal, gets to plug the holes where we've had more problems. i think the investment grade market is doing just fine. i am not sure we need a lot of support for big compan

now. the problem is this, the fed has a lot of tools, and we have more things we can do, but our tools primarilyconditions. they make it easier to borrow money. our tools are not well-suited when you have an income loss and we need to make up an income loss. there's two areas -- there's individuals that have lost their jobs who have lost income. there are states and municipalities that can borrow and are using the private markets, they have a fiscal toe and they need balance their budget and they need to cut expenses if they don't get any relief because they have a fiscal hole. borrowing more money will not solve their problem either. i'm sure we will look at all of our options. those are not substitutes for fiscal policy. kathleen: how about fixing the composition of the bond purchases that are in place tomorrow longer dated bonds? robert: if you look at the 10 year and the 30 year, could they be lower? yes. is it an impediment to business operations, investment, mortgage rates, they are historically low. i think we have to recognize that we are already buying a significant amount of bonds as i

the older generation was once alexander lukashenko has by now though many demonstrated a fed up with the regime. we're not afraid of stun guns and. everything will be fine seems to. have now been over 2 months of protests in valorous. the government seems powerless to stop displays like days inn said. but it's trying in recent weeks security forces have again been intensifying their crackdown. and now the country's hardline deputy interior minister is warning there might be even worse to come from security for. this is. when you we do them so i pledge we will make tying order in this country if the situation demands that interior ministry offices and military service men might use rock control weapons. as the situation in belarus deteriorated in brussels a year foreign ministers met the deliberations focusing on how to get the right shame to negotiate with the opposition. with little sign about they great to prepare more sanctions on government officials including one president himself today ministers. lacks any democratic nature. and they sent a message to the better side it is sayin

the fed would further use some terms and its mainstream lending program targeting smaller businesses so this stem the bleeding somewhat at the very least stop the dumping this morning the fed's announcement today now adjust the terms of mainstream lending in 2 important ways to better support small businesses so 1st the minimum mon sizes for borrowers that has been reduced from 252-500-0210 extension 0000 the fees have been adjusted to encourage the provisions of the smaller lots and secondly the board to parma the treasury there clarify that the paycheck protection program loans up to 2000000 may be excluded from burra debt if certain terms and requirements are met so that should also help smaller businesses access main street moans as we're getting into 4 q. as we're getting over seeing the spikes in coronaviruses again so we've seen this ackerley this year as these new press releases they work to act as a temporary band-aid to stem the market bleeding and basically buy some more time until a substantial package gets done so we will see that happen as we bounce off the session lows as the news that got digest among the traders they all realize that this is kind of a nothing burger nothing really

i think the fed, the ecb have said as much. , and weinteresting now have seen this in the chatter thisorning, the debate around fiscal stimulus. fed seeing itthe as increasingly important. but i think the market as well is really heavily scrutinizing .ow i thing it is import to focus on the fiscal stimulus -- it is important to focus on the fiscal stimulus. they can obviously do a lot more , but on the fiscal side that is really the main question. jonathan: but ultimately, if you believe the central banks can just keep financial conditions loose regardless of economic conditions, i don't mean to go too far with this, do you mean we have centrally planned financial markets now? does it go that far? marilyn: i don't think they are centrally planned. for that, you would also need to see even greater coordination between the fiscal and the monetary policy as well. that being said, i think the central banks, and terms of what they can do in interest rates, they do have less room to move. they could continue to cut rates. they could go further negative. you could see further asset purchase p

. >> interesting conversation with the richmond fed president speaking to my colleague michael mckee. let's stick with the role of the fed right nowderal reserve is extending its unprecedented complaints. juneirst announced in banning buybacks. joining us to discuss is dani burger. why is the fed extending the limit and will it have or what kind of impact is this going to have on u.s. lenders? yesterday, the fed saying it needed to extend these through the end of the year because the ongoing extended uncertainty by the coronavirus capitalneed to promote during the banks. it would not be surprising to be somewhat a bit of a selloff in the u.s. lenders because banks like j.p. morgan had expressed the desire to increase their buyout levels starting pretty shortly because they felt confident they could do so. a lot of people moving into equity markets looking for the dividend, because yield is lacking everywhere else, so banks still don't seem like a pocket they can go to. it is going to hurt these lenders. agreed there would have to be payouts to preserve capital, but he was a dissenting voice for this extension, so there are some sl

they didn't face any jail time now you know because of that crime wave that we've been focusing on and looking at because their markets finance and scandal you know the fed's balance sheet they now own 22 percent of all marketable securities which is from 13 percent last september 2019 so the fed's balance sheet is having to expand as the fraud expands and the fraud can't shrink because you can't taper a ponzi right exactly right that the fraud has been going exponential with goldman sachs j.p. morgan and all the banks. this fed has been soaking up all the bad debt that had they kept on their balance sheet these banks would have had to declare insolvency. and as a result america is now losing out in the global geo political race to china i think the. a direct connection it's a direct connection and now we're at a stage where frankly we also broke that point on a dollar on the show you know resurrect the point now in history where the central bank is kim la bella out itself if it's the only boat in the water in other words america sprung a leak it's sinking i'm geopolitical stage to china and to bail itself out it's it's trying to. you know shovel the water

tracking 129 but as soon as the fed stepped in and they really threw everything except the kitchen sink. very hot so that is really what's driving markets more than if the fed now decides. who came by his look doesn't need more. marci stimulus moccasin was positively to that and i think the balance of the list is this and he's going to do that again even more aggressively to keep the markets where they are markets divorced from reality for sure now kristie as the market is plunging monday another problem is actually emerging in the bond market as the default cycle is beginning to hit what's happening there. so it's a really scary thing as bloomberg published that right now on hold and start fighting over recoveries as low as one percent so that's insane and shouldn't be a surprise and we've been discussing this actually constantly in recent months that bankrupting us filings are surging so instead of recouping about $0.40 on the dollar which was the more important unsecured lenders now face the prospect of walking away with just pennies at that so recently we saw men's wearhouse which in august trying for less than $0.02 on the dollar then when j.c. penney went

process the unemployment claims so you know these recoveries are not smooths they they take time and they can they get hurt and sing a bit that's what's happening right now. well you mentioned the fed chair, the he said the fed cannot prop up the economy by itself and it is right before. >>an election and you say that's a normal unstable time anyway, this is a more severe in terms of a ripple effect mention the jobless numbers, what else is involved in the ripple effect from something like this. >>well i i absolutely agree with you there's a rippling effect of when you delay delay delay, the recovery takes longer longer longer. but if looking at a 30 day time frame until the election because seriously when the election occurs. whatever president is in office. they're going to do several things. they're going to bridge us economy they have to because they have the economy for the next 4 can do that they're going to really get away from the politics and focus on covid-19. we have to find a solution got to get the vaccine out to people and they're going to focus also on social becomes less of a political issue and more of an issue of just creating a place for our economy to grow for p

they didn't face any jail time now you know because of that crime wave that we've been focusing on in looking at because their markets finance and scandal you know the fed's balance sheet they now own 22 percent of all marketable securities which is from 13 percent last september 2019 so the fed's balance sheet is having to expand as the fraud expands and the fraud can't shrink because you can't taper a ponzi right exactly right that the fraud has been going exponential with goldman sachs j.p. morgan and all the banks and this fed has been soaking up all the bad debt that had they kept on their balance sheet these banks would have had to declare insolvency. and as a result america is now losing out in the global geo political race to china i think there's a direct connection it's a direct connection and now we're at a stage where.

the g. 20 is trying to get commercial in doesn't. it it helps a little bit but it doesn't really help us now they're even cause already for the fed that day to be pushed back even further that we know that there was some resistance from china to this debt and i plan what what is the criticism of china in this whole situation after all it is one of the major credit has. it's one of the continent's biggest critics china is the g 20 member officially is on board with the g 20 years as a. chinese. actors are insisting on negotiating debt on a case by case level rather than rather than in a blanket agreement so this is taking very long and it also they pushes private creditors to to wait it out to hang back and to try and see if china gets better better terms than they do so it is true it is you can push the negotiations longer and longer like pushing many countries closer closer to default so the chinese position is it's quite problematic and on the other hand you know i think i think in the end the chinese prisoners will be willing to to arrange some form of a settlement where it's not clear exactly what the commercial that this was to a

government and the democrats at least keeping the house. >> i wonder what you think the read is in congress right now about the fedncreasingly amped up rhetoric about the need for fiscal stimulus calling it tragic if we get it is the sense among members that that's a wake-up call or more hey fed chair, mind your own business >> it depends on who you are talking to they want that we are happy you are speaking it out. it is real for people on the street talking about that k economy where certain people can work from home. we have to continue that part of the reason the market has been there, we think, okay the fed has a lot of powder dry and we think eventually congress will do the right thing. >> he said a blue wave indicates a key risk and that biden indicated an increase for the highest income individuals they are expecting selling pressure among the highest income individuals individuals at the end of the year if there is a blue wave as people look to chrrystallize thr gains before the change. are you expecting that if there is a blue wave >> that's a great point. on the one hand, there will be a psychological m

march, jerome powell announced that one of the key elements of the focus of the fed was making sure lending markets were working. nowe context of continuing money may not be working in the context of assessing risk appropriately, but the fed was very successful in opening up markets and pumping a lot of liquidity in. but the fed can solve liquidity much better than solvency problems, particularly in the context of companies overlevered even coming into the covid crisis. it's important that investors know that corporate america was more levered in january and february than it had ever been before, before we even had a recession. so the fed can solve liquidity challenges, but ultimately, a number of these companies are in trouble regardless of covid. so so when they go bankrupt, there's not a whole lot left for bond investors. jack: just a quick question, the focus is not on jerome powell, it's on the white house and the senate. how important do you think elections are to what goes on in the stock market? >> sure. look, at thornburg we're looking much longer term and, frankly, the elections are not really much of a bl

the atlantic. alix: breaking news now from the fed. michael mckee, bloomberg chief economics and policy correspondent. michael: they are changing the main street lending program, which has been criticized for being ineffective. companies either can't or won't borrow, so they are tweaking it for main street businesses involved. so far the fed has only made about 400 loans for $3.7 billion, and this is a $600 billion program. thebig issue, the size of loans, too big for small businesses, not alone for that's not enough for some medium-sized businesses. the fed is lowering the minimum loan size to $100,000. it is adjusting its fees to encourage borrowing. this is for both profit and nonprofit organizations. they now say when you calculate your assets and liabilities for the bank when you are applying for the loan, you don't have to to $2e ppp loans up million that may be kept some people from getting loans. are good for up to five years. principal and interest payments deferred for two years, but unlike the ppp, they are not forgivable. t