pandemic well we can now speak to robert scott he's a senior international economist at the economic policy institute and he joins us now on skype from maryland rabbit we've seen the markets rally over the last few weeks off the lows we saw in late march the quickest rebound i believe since 1933 it's all seemed and in fairly stark contrast to the collapse we've been witnessing with lock down so was today is for the inevitable at some point. i think it was i think that the recovery of the market was really driven by 0 in bassett's inspection loans reserve we've never seen the federal reserve. issues or strongly dollars of loans so big. it's the. stuff i says but this is divorce what's going on in the real economy where a. testament is about 32 years half 1000000000 will actually all on unemployment compensation or applied benefits and it may that's or it's called actual to that it's rubbish there are seem to be a number of things going on here right a potential 2nd wave of infections the central bank now for costing sustained high unemployment and and also 170 about the speed of recovery as we say the

and he's a senior international economy the economic policy institute joins me via skype from potomac maryland good to have you with us on the program again so just a blip or a real sign of recovery in terms of the job figures. well it's a small blip in what is not our wise belief jobless picture i think it's important to remember that we had the highest level of unemployment in the u.s. census 2nd world war last month the picture has improved slightly since then we've added about 2 and a half 1000000 jobs spirit is important remember that there are still 19600000 workers who are and remain unemployed through which of 2 situation in february before the corona crisis hit that crisis is still upon us we're still losing roughly a 1000 people a day in the united states infection rates have not to climb to adequately and new cases appear to be growing in many areas of the country this is threatening to drive us into another surge of cases in the fall or center and that's going to cause another lock down of the economy so i think this is most likely to be a temporary blip that may last a fe

elise gould is a labor economist at the economic policy institute, a rescenter that gets funding fromrganized labor, and our own lisa desjardins, who covers economic policy on capital hill. lisa, let me start with you. you heard the president say that looking this jobs report, america's economic comeback has do you see that in this report? >> not yet. it certainly is welcome surprise that the top line numberstarted to turn around, but it would be a mistake to think it is nowor time policy-maker to turn off the valve and stop providing aid to workers, their families, cessary aid to state and local governments. >> reporter: the consensus of economists was that we would see another drop i payroll, in jobsla how do you e, or when you look at the numbers, what does it tell you to explain this increase of 2.5 million? >> it is a bit of a puzzle, absolutely. many economists did not expect this. i think there's a couple of factors. is the initial unemployment insurance claims came ind aro 10 million between the reference period in april and the reference perinod may, and would like many peopl

on different boats here we're all experiencing this very differently a new report by the economic policy institute on race ethnicity and the economy showed the black community like you said experiences some of the highest rates of unemployment yet they also make up most of these frontline workers that consist of one in 6 this is a pretty complex issue we're looking at here but how did we get to this point and what should happen moving forward. well just like you said we are the ones that are on the front lines and with that being said we are there pay needs to show that in these to reflect that these african-americans are on the front lines and maybe that would help with some of these inequalities i mean if they're going to risk their lives to make sure that they are grocery store workers that they're firefighters that there are people that are making sure that we get what we need for this pandemic then we need to show that and how do we show that by paying them what they deserve and some other reason why so many of them are are getting sick now the black unemployment rate was 5.8 percent in febru

as a senior international economist at the economic policy institute he says the long term picture for the u.s. economy is to leak and so. it's a small blip in what is another wise belleek jobless picture i think it's important to remember that we had the highest level of unemployment the us census the 2nd world war last month pictured in some groups likely since then we've added about 2 and a half 1000000 jobs but it is important remember that there are still 19600000 workers who are and remain an important religious situation in february before the corona crisis hit the crisis is still a part of us we're still losing roughly a 1000 people a day in the united states infection rates have not claimed adequately. new cases appear to be growing in many areas of the country this is threatening to drive us into another surge of cases in the 4 center and that's going to cause another lockdown in the economy so i think this is most likely to be a temporary blip it may last a few months but we've got big problems ahead now the world health organization has revised its advice on the use of face

valerie wilson of the economic policy institute, thank you very much for your time.preciate it. valerie: thank you. guy: this is bloomberg. ♪ guy: welcome back. what does the rest of the week look like? issue, thes the big bank of england, and witching friday. those are the three things i would pull out. guy: -- alix: lots of options will be expiring, so what that means on the retail level. we are heading out of the second quarter, so you will have to have positions wearing from both if you do not take advantage of the recent squaring we had into value. how that plays out will be interesting. guy: the bank of england will be fascinating. the bank is under real pressure bad more to its qe program? is qe the right solution? i suspect it does not want to go into negative rates, but i think that discussion will be on the table. it will be fascinating to find out where the bank sits on this. there is a review of the zero bound currently underway. is it prepared to go under it? we will find out. the biggest events of this week i think is jay powell. alix: agreed. that wrap

economics and policy to vice president biden, but more importantly, he is one of the progressive economists in washington that every conservative reads and studies. he's been doing it for decades. economic policy institute, and now at the center of budget and policy priorities. jared, we are thrilled you are with us today. what is the biden mandate forward? what does vice president biden need to do to speak not to those committed to him, but the marginal voters looking for the biden message? what does he need to say? jared: first of all, always listeningtart the day to your rap. the vice president is running for office in the midst of really three crises. economich crisis, the one that stems from the health crisis, and now the outpouring of racial violence, which, as i think i heard at least implicit in some of your comments, feels very justified for a lot of people. to bring theime nation together and restore a competent federal sector, something we so sorely lack, that can lead the kind of shock to come out in the global .conomy fast and furious we need a competent, amply funded federal sector that has the capacity to protect the american people and give them the opportunity they need to realize their

i want to bring in a senior economist and director at the policy economic policy institute , to bringre on this perspective. how surprised were you? should we have been surprised? >> i was very surprised. i am not a macro forecaster. i look at what other people are expecting and adopt those numbers as my expectations and everyone missed this. .t was surprising in retrospect we should not have been surprised because we knew that many states are using restrictions -- are easing restrictions. areine: what type of gains we seeing? are these job gains that will be lasting and enough to drive us back to a healthy labor market, or is there something more structural? heidi: that is the big question. one of the things that is important to keep in the forefront of our thinking about this is the hole we are in is so deep, that even with jobs rebounding quickly, we are still going to be deeply in recessionary territory for a long time. to put numbers on that, by april million jobs in this downturn. we got 2.5 million of them back. we are still down 19.6 million jobs. -- 13.3%arkable, the unemploy

h1b workers fall into four levels of skills and wages according to the economic policy institute. 3/5f these jobs were certified at lowest, two lowest prevailing wage levels last year. it makes it a whole lot more different or difficult rather for american entry level worker to get a job, if you take someone from a foreign country pay them $42,000 less than the american. joining me to discuss this, secretary of labor, eugene scalia. mr. secretary, thanks for joining us. you're getting a lot of pushback. put out tweet i would found offensive working in the trump administration. the insinuation this is racist, xenophobic policy. why is that untrue? >> charles, good to be with you. these are policies to help american workers at what is a challenging time. now, we've made a lot of headway in getting people back to work since, since march. you and i talked recently about the terrific jobs report we had showing, we added 2 1/2 million jobs through the middle of may but we still have a ways to go. part of how we get there giving every opportunity for american workers to be hired. what i woul

black workers are 60% less likely to have health insurance according to the left-leaning economic policy institutehe coronavirus, once again experts are saying, that all of these injustices and inequities are contributing to a higher death rate for black americans versus that for white americans. we can't separate any of this data from what's happening in the streets every day. of course the undercurrent of racial disparities and economic issues really driving a lot of the anger and frustration that we're seeing and hearing every day. >> thanks. >>> new concerns this morning about a spike in coronavirus cases. >> the death toll in the country is 109,000. 109,000 people have died. nearly 1.9 million people have been infected. >> so look at this graphic. it shows 22 states reporting an increase in new cases over the past week. florida, where theme park universal orlando opened to the public yesterday for the first time in almost three months. >> in california, cases are on the rise. new guidelines may allow schools, gyms, bars to reopen next friday. and then on the other side of the country new york

inequality.conomic published by the economic policy institute. i want to thank witnesses for their participation today. members of the committee may have additional questions they will submit. we will answer them as soon as possible. i want to remind my colleagues that pursuant to committee practices, questions for the hearing must be submitted by the majority, committee stabbed or committee clerk within seven days. questions submitted must address the subject matter of the hearing. recognize the ranking member for a closing statement. >> thank you, mr. chairman. i want to thank witnesses for participating in the hearing today. we should return congressional sentiment and hold our hearings in person. ryan the country through virtual proceedings is unacceptable. as we consider how to mitigate the impact of covid-19 on families and communities, we must highlight the benefit to children and families into parent households. the likelihood of poverty draft single parent families. this is crucial to remember. 88% to 69% since 1960. while single pass me

. >> reporter: valerie wilson directs the economic policy institute's program on race, ethnicity, andses are really lifelines for their paths of the city -- >> lifelines and parts of the city. they can't hire and employ more people. are an important people of building the u.s. economy as a whole. >> reporter: a survey of 500 minority-owned businesses found only 12% received a loan amount requested. nearly two-thirds had yet to receive any help. >> it's been a total nightmare. >> reporter: new york city salon owner juliet anderson is one of the many americans who hasn't seen any loan assistance from the government. her shop is in the bronx. the new york borough with one of the highest minority populations and america's largest city. >> the pandemic has been a complete full stop in terms of income, in terms of livelihooli. i would say nine out of ten did not get the ppp. yes. so they've been struggling to stay afloat. >> reporter: just staying afloat during the problem so many americans are wrestling with, including will turner. >> just like the actual virus that people are catching, bl

i just recently saw the last month, the economic policy institute estimates that over 16 million workers had likely lost their employment provided health insurance since the beginning of the pandemic and that is something i am deeply concerned about. not only because we want people to have health coverage during the pandemic but because we know how much of an out of pocket expenses that can be and could really draw down and negate some of the benefits that we are trying to provide through unemployment insurance and other means like the paycheck protection program. so i wanted to ask you here, what steps can congress be taking to reduce the burdens of these high health care costs or running -- for unemployed individuals and their families? you've also mentioned work share and other efforts like that. how does that fit in to the puzzle that we already have here now about the paycheck protection program, partial unemployment, how will work share potentially fit into that? >> sure. first, in past recessions government has subsidized wilbur which is things ... secondly when it comes to work s

according to the economic policy institute the united states has lost 3.7 million jobs to china in the last two decades. three-quarters of them in manufacturing. donald trump is not meaningfully changing any of the conditions that allowed these job losses to happen. now the bottom line with respect to china trade policy is real clear. the status quo under president trump is good for china and the chinese government is reportedly interested in maintaining it. now onto the new new nafta. ambassador lighthizer and i has long agreed that nafta needed in the overhaul. to a great extent in economy driven by activity industry and wasn't strong enough on enforcement to protect the american worker. when the trump administration right it's renegotiated deal to the congress get made some progress on several issues but it didn't go nearly far enough to protect family wage jobs and workers on labor and environmental protection. in fact the old broken down system of enforcement from the old nafta was really pretty much a star to the trump administration's approach to the new nafta and that meant all

. >> reporter: according to the institute for economic policy research, 42% of the workforce is working full-time from home. it's a little more than half that, 26% is working out the business, mostly essential services. 40% of those surveyed are working at home 100% of the time. only 4% of people working from home have returned from the office. >> this is the most practical way giving technological advances that have taken place. the fact that people are able to work from home -- >> reporter: she is with the school of business. she says the stigma associated with working from home prior to covid has gone away. monday's research also found higher and more educated employees are ugly to work from home. white-collar jobs might not require physical contact with customers. >> is a more knowledge-based economy. it is the knowledge base workers who have jobs where they are essentially working on computers. >> reporter: experts say another growth to city centers could stall. loss of physical presence means losses at bars and restaurants. ike's sandwiches in downtown san jose have seen that firs

. >> reporter: according to the institute for economic policy research 42% of the u.s. labor force is working full-time from home. a little more than half that is working at their business, mostly essential services. a poll found 40% of those surveyed are working at home, 100% of the time. only 4% of people working from home i returned to the office. >> this is the most practical way given the technological advances that have taken place. the fact that people are now able to work from home. >> reporter: the stigma associated with working from home prior to the covid-19 has gone away. monday's research also found higher paid and more educated employees are likely to work from home in white-collar jobs that don't require physical contact with customers. >> it is more knowledge-based economy and it's the knowledge- based workers who have jobs where they are essentially working on computers. >> reporter: another impact is the growth of centers, the loss of physical workers presence means loss of daily spending at bars and restaurants. >> a stanford economist predicts becaus

. >> reporter: according to the stanford institute for economic policy research, 42% of the u.s.abor force is working full-time from home. a little more than half that, 26%, working out their businesses, mostly essential services. a yahoo finance poll found 40% of those surveys are working at home 1% of the time. only 4% of people working from home have returned to the office. >> this is the most practical way, given the technological advances that have taken place. given the fact that the people are now able to work from home -- >> reporter: she is with the school of business. she says the stigma associated with working from home prior to covid has gone away. monday's research also found higher paid employees are likely to work from home and white-collar jobs that don't require physical contact with customers. >> the economy is moving. it is more knowledge-based. it is the knowledge-based workers who have jobs where they are essentially working on computers. >> reporter: experts say another impact, the growth of city centers could stall. the loss of physical presence means the l

this country desperately needs a reconciliation process around the racist policies of economic institutions that have left black lives devalued. this is an opportunity to intentionally acknowledge unjustified in ongoing wrongs engage with black amenities and rebuild them and then maybe, just maybe black americans including my patient that i mentioned earlier in my two beautiful boys in the next room playing could have more than a fighting chance against the novel coronavirus. thank you. >> thank you very much. now we will hear from dr. manny. >> chairman clyburn and distinguished subcommittee members thank you for addressing the intersection of racial disparities and the covid-19 pandemic. i come from the city of baltimore where i am a practicing physician and had the of serving as the health commissioner in my city children can expect to live 20 years more or less depending on where they are born in the color of their skin for their racial disparities across every metric of health and throughout the united states inequality is years of life in currency. this is what we are seeing with covi

is this if we're talking about the global economy we have to look at the institutions that are governing global economic policy like the world bank and the i.m.f. which were voting power is monopolized by the u.s. and for the rich nations where the global south which has 85 percent of the world's population has less than 50 percent of the vote on crucial decisions on macro to see the effect that i written extensively about this my book dead aid was specifically targeting international institutions and the fact that the put the policy making decisions were centralized at a particular particular place where i'm very much to be moved from from recipient countries you say in the book you re critical of professional politicians as are many people and you talk about how to raise the standard of people in public office that they should have experience outside of politics of real world jobs how do you feel about the president of the united states did the electing a c.e.o. billionaire make america more stable less corrupt and so i don't necessarily like the way the president talks about women and fact i don't like the

personal income, property, sales and excise taxes, according to an this, thethat tracks institute on taxation and economic policy250 thousand u.s. citizens are the children of daca recipients. howard in jackson, new jersey, republican. caller: yes ma'am. and my namelican, is howard. good morning. i know this country was built on immigrants [inaudible] but these immigrants, when they came in, they came the proper way. they became citizens of the united states of america. they follow the laws, as we follow the laws, as americans, i am a veteran -- united states air force -- i fought for my country in iraq and i feel like we are losing a battle here. when we talk about daca and immigrants, we have to bring them and legally. we welcome them, the door is opened, but legalization is the proper way to go. judiciary,ed to the carl holds for the new york times writes this piece this morning -- protege confirmed mitch mcconnell is one judge closer to his goal. on thursday, the senate confirmed the 52nd federal appeals court judge of the trump court era for that u.s. court of appeals for the district of columbia. was 51-42

economic discrimination based in poor public policy. you had decades and decades of discriminatory practices from lending institutions, from government agenciesu go down the list, so what we're seeing now is really the evidence of that discrimination come to the fore, and i think what we're really also communicating is the fact that while the nation is really focused in on the conversation around law enforcement and community, the larger narrative should include a conversation around economic disparities as well because all of this sort of impacts black folks on the ground in minneapolis and st. paul as well. >> you know, i'm embarrassed to say it but it's true. i had no idea about the disparity in terms of black and white homeownership as you guys highlight. 77% of whites in minneapolis own homes versus 26% of blacks, and when i looked into more -- to find out why, look at the deeds written for some of these homes in some of the neighborhoods back in the '30s and the '40s and they said, quote, premises should not be sold, mortgaged or leased or occupied to any person other than the caucasian race, and, yes, it's been unenforceable for the la

economic institutions in the u.s. would you commit to a thoughtful and open-minded study about how defense policies whether it is with regard to monetary policy or the fed's failure to you late ,ubprime lending -- regulate contribute into systematic racism? would you commit to eight thoughtful and open-minded study of doing that with us? take that away and think about it and talk with my colleagues about it and come back to you before we commit to a big study. i want to carefully think about it. as an institution we are very focused on diversity and inclusion. we try to make that a very high principle for us here at the fed. racialonsider disparities and things like that as a routine matter. let me talk to my colleagues and come back to you. >> one of the reasons i voted for your confirmation for chair was that before you work chair and you were governor of the fed, you helped lead the way on dealing with issues of race. the fed has a long way to go. we all have a long way to go. but thank you for that. let me talk to you about the president of atlanta fed. -- still the only african-american federal reserve bank pres

policies. you have the instrument -- international institution and it can pretty much do whatever it takes. on fiscal policy, it is a little different. it is not really the economic we need to watch is the expectation or 750 billion recovery fund, which we think will be ratified late this year, may fall to the wayside. it is about politics. it is not about economics. a good three weeks ago, we were watching nervously the budget discussions, and the market was increasingly thinking that italy is not happy with the way this is going. we have populism in italy creeping up. could we be going for an italian exit perhaps? that is a tale risk to watch. the brexit negotiation could be decisive. it is critical europe gets the 750 billion agreed, that the italians are happy with it, and we can put risk to the wayside but this is a huge international agreement. it is probably the biggest cross board agreement in history. it would be excellent for the europeans to support the medium-term outlook, as we think they will. anna: we will fear from to finance ministers who helped craft it from germany and france later on today. we will listen to what they have to say. what about t

these numbers and the broader economic concerns they raise, we turn to david wessel, director of the dutchins center on fiscal monetary policy at the brookings institution. hello again, david wessel. so how are we to interpret all of this? we see the markets todayng reacnegatively to news that the coronavirus rising in a number of states, an we see unemployment, we see unemployment continuing, but better than it had ben in recent months. what direction do we look when we see thebers? >> i think it's important tose rate the markets from the real economy. nearly 30 million people ar checking unemployment, that's nearly 20% of the workforce. that's good, because even though people are out of work, they have some income. but it's going to be a long, slow cliout of this covid recession. i think what happened in the markets is therkets basically overreacted initially, stocks fell 30%, and hen we had a euphoric moment. stocks recoveredll their lost ground, and then the last couple days they have given up 10%.to so the market is now 10% lower than it was before covid and that seems to me about thepl righe where it should be. >> woodruff: and then we have as we

institutional racism. the end goal is really antiracism and antiracist policy. that pursue racial justice. the criminal justice system is a gate way to racial and economic oppression and exclusion. we have seen it happen in l.a. the mayor announced $150 million scheduled for the police budget will go into communities of color. and disadvantaged communities. city of austin is looking to do the same. other different cities and city council at the local level. and states will be doing it. are looking to redirect money to right size the police department and use the extra money to invest in everything from early child care and deincarceration. and invest and provide incentives not about tax breaks but racial integration. and gentryification. there's a lot of policies need to be changed and a will the of new policy that need to be implemented. >> thank you so much. good to speak with you. good luck with everything. >> thank you. >> there's also the case of ahmaud arbery shot dead jogging in a georgia neighborhood. charged with his murder. the lead investigator testified after they fatally shot him. he called him the n word. chances are those are the words he

economic damage that is going to be done. that is likely to have some sort of social impact, particularly with the policy response coming from institutions like the fed will rescuewhich the financial markets and insulate the richer portions of society from the effects of covid-19. michael: guy, i think that is essentially accurate. this is going to be a difficult recovery. a consensus view, i think, will be that it will take us until the end of 2021 if things go reasonably well to get back because there is this lingering risk in the system that will cause the sectors that require contact to recover very slowly. but the big worry is that a difficult situation with respect to the distribution of income get worse,nity will is getting worse as a result of the virus. unemployment is tipped toward the lower end of the income distribution, tipped toward women, blacks, latinos already, and the hope is that the implementation of these very mainlyupport packages from the federal government will mitigate that effect to some extent so that we don't worsen the situation with respect to social divisions as we are already in a very dangerous situation.

the pandemic and economic lockdowns, saying american workers compete against foreign nationals for jobs in every sector of our economy. i checked in with the migration policy institute they're estimating that these restrictions would block about 325,000 foreign workers and green card applicants and their dependents the administration reportedly puts the number closer to 525,000. tech relies a lot on foreign-born workers for example, in 2019 alone, amazon was approved to hire more than 3500 workers through the h1 program, google more than 2700, and microsoft, more than 1700. no surprise, many tech execs are not happy, apple's tim cook tweeting that he is deeply disappointed by this proclamation while he says he will completely stand by immigrants. >> it sounds like that order was effective immediately. >> i mentioned that i checked in with the folks at the migration policy institute in terms of wiggle room, i think you will have a fight. there will be legal challenges coming at the individual level and the corporate level. their point is these companies just put too much money and time into these programs. they expect a certain number of workers, they have a timetabl

economic policy goal, well, a lot of economists now say, why? interest rates are manageable, they are super low. and also the institutes like lending to a government. so there is no problem when the government goes out and borrows £104 billion in two months, more than it ever has in the same timeframe before, in fact more than the government borrowed in the whole of the post—financial crisis, over ten months, less than this government has borrowed over two months. it can still get their money m, months. it can still get their money in, that's because investors are worried about putting their money in shares, they would rather lend it to governments. andy verity, our economics correspondent, thank you very much. the us supreme court has ruled against president donald trump's bid to end a major programme that protects young immigrants from deportation. it's the second time this week the country's highest court has ruled against this president. it comes in the same week he has faced accusations of incomptetence in a memoir due to be published by his former national security advisorjohn bolton. and also another row over hi

is a resident fellow at the enterprise institute where he studied federal tax policy before joining aei, he was the chief economist and vice president of economic analysis at the tax foundation where he led the macro economic team. >> thank you mr. chairman. it is my honor to introduce -- can you hear me? vice president of economic analysis where he learned the team and rode on various tax policy topics including the corporate taxation, carbon tax reform and now i will yield to introduce the final witness. >> can you hear me mr. chairman? >> wese can hear you, yes. now we don't. the sorry about that. thank you mr. chairman. it's my honor to introduce the bilingual early childhood educator and proud member where she emphasized women's voices. i'm sorry. can you hear me now. it must be my connection. >> we can hear you. >> i am trying. i am here but i'm not sure about my connection. >> you are going in and out. why don't we recognize your constituents. >> we can hear you now. go ahead. -- >> let me just say ms. rodrigues is the constituent and close friend as they work together and has nothing but glowing comments to make and is a bilingual presc

economic policy goal, a lot of economists are saying now, why? interest rates are manageable, they are super low and the institutions that lend governments money, wellless lesson this government has bothered over two months. it can still get the money in and investors are worried about putting their money in shares, they would rather lend it to governments. hello, this is bbc news with geeta guru—murthy. the headlines: the uk's coronavirus alert level has been downgraded from four to three, the countries' chief medical officers have said. a billion pounds for primary and secondary schools in england, to help children who've fallen behind because of the coronavirus crisis. uk government borrowing hits a record monthly high of £55 billion in may, as the coronavirus continued to press heavily on the public finances. as businesses come out of lockdown, the queen sends her best wishes to business communities throughout the uk, commonwealth and the world. businesses and government departments in australia are hit by what its prime minister calls a sophisticated, state—based cyber attack. here in the uk, the opposition labour pa rty‘s heavy loss in the las

economic institution in the u.s. would you commit to an open-minded study of how the fed's policies, with regard to monetary policy or the fed's failure to regulate subprime lending and the various assumptions underlying our systems contribute to systematic racism, would you commit to a thoughtful and open-minded note us?tudy, doing that with mr. powell: i will take that away and talk about it with my colleagues and then come back to you. before we commit to a big study, i want to carefully think about it. as you know, as an institution we are focused on inclusion and we try to -- we try to make that a very high principle for us here at the fed. we do consider racial disparities and things like that as a routine matter in our work now. let me talk to my colleagues and come back to you on that. sen. brown: one reason i voted for your confirmation for chair was that before you were chair, you are governor of the fed and you helped lead the way on dealing with issues of race. the fed has a long way to go, but think of her that. let me talk about somebody else, the president of the atlanta fed. as you know, the first and

institutions performed well in annual stress tests. at uncertainty over the pandemic let regulators to limit what banks can do with dividends and stock buybacks. bloomberg global economics and policy busy. what did the fed to and what? surprising, is not the pandemic is coloring everything in the economy, everything the fed looks at. when it comes to annual bank stress tests, it has brought the endemic into the equation of how you assess the united states' biggest banks. so yes, they capped the payment dividends at the level of the second quarter and are not going to let anybody do share buybacks at the end of the third quarter. vice chairman supervision randy quarles says the fed wants next to be resilient in the face of covid-19 uncertainty. is assessinged banks more intensively and want to make sure they take steps to preserve capital. here is what the fed is requiring banks do now. again, share repurchases suspended the third quarter. dividend payments are capped and limited by the income of the banks, that is a new wrinkle. it is going to be bad for wells 89%o, because they had an drop in profits in the first quarter, so their income is going to play into that. they have to r

economic institution of the united states of course. would you commit to us to thoughtful and open-minded study of how the fed's policies, whether with regardicy or the fed's failure to regulate sub prime lending on the various or the various assumptions underlying our systems contribute to systematic racism in our country? would you commit to a thoughtful and open-ended and open-minded study of doing that with us? >> you know, i'll take that away and think about it and talk about my colleagues with it, about it, and come back to you before we commit to a big study, i want to carefully think about it it does, as you know, as an institution, we are very focused on diversity and inclusion, and we try to make that a very, very high principle for us here at the fed, and we do consider racial disparities and things like that as a routine matter in our work now let me talk to my colleagues and come back to you on that >> one of the reasons i voted for your confirmation for chair was that when before you were chair but you were the governor of the fed, you helped to lead the way on dealing with issues of race, the fed has a long way to go, we all

economic news today. allie renison is the head of eu and trade policy at the institute of directors.joining us. a lot of people didn't predict the shrinkage in the economy would be quite as big as 20.4% in april. are you surprised by the scale of it? not whatsoever. we have to remember, and perhaps numbers are needed to remind people, that the impact of the measures introduced effectively put the economy on ice andi effectively put the economy on ice and i think you have seen that reflected in that big a fall in gdp. it has tallied with what we saw in april in particular that demand in economic confidence were through the floor and the lowest since survey tracking began. we now need government to look ahead because i think what we don't want to happen is we get into a situation, as some schemes are winding down, and have many businesses, particularly among company directors who have not qualified for any relief, while social distancing guidelines are in place. we need to avoid a perfect storm in the summer. what does this say to you about the shape of the recovery, there has been dis

institute where he studies federal tax policy. before joining aei, mr. pomerleau was chief economist and vice president of economic analysis of the tax foundation where he led the macroeconomic and tax modeling team -- >> thank you, mr. chairman. it is my honor to introduce -- can you hear me? can you hear me? >> can you hold on one second? >> i am. i am unmuted. >> okay, hold on. where he was vice president of economic analysis of the tax foundation would led the tax and modeling titman road on various tax policy topics including corporate taxation, international tax policy, carbon taxation, and tax reform. and now i would yield to ms. delbene to introduce our final witness. >> can you hear me, mr. chairman? >> we can hear you, yes. please go ahead. >> now we don't hear you. ms. delbene, are you there? now we can see you. >> sorry about that. thank you, mr. chairman. great. it's my honor to introduce martha rodriguez, a bilingual early childhood educator at an -- and a proud member of -- which emphasize women's voices on issues of national -- i'm sorry. can you hear me now? it must be my connection. >> we can hea