well i think the federal reserve should go out of business. and i and they're not going to but they will self-destruct just like the brand would self self destructed so i'm on a short run i have dark predictions because they won't liquidate the debt but the market will liquidate today and that will be a major event long term but often missed because from what my where i've said you know i've been in congress in the programming i do now there's a lot of people who are sick and tired of it they understand what free markets all but they don't believe in negative interest rates they want their liberty back and that's a growing number when i 1st went into politics in the 19th seventy's people didn't even know about it and they want to ask me why are you talking about the federal reserve a lot of people are and they know that the federal reserve is going to get the blame for the for this and there's no easy replacement other than releasing it to the marketplace if we wait i lasted for a long time in this country in the most of the world did without

we will receive testimony from the secretary of the treasury and the chairman of the federal reserve as required under title four of the cares act. congress has appropriated $3 trillion to protect and support americans to fight the pandemic and also to stabilize the infrastructure of our economic system. fundingportion of this is authorized under title iv of the cares act which provides resources to loans, guarantees, and other investments from treasury and the federal reserve 13.3 emergency lending facility and support of eligible businesses, municipalities, and tribes. title iv of the cares act anvided $454 billion as infusion into the exchange stabilization fund to support the federal reserve's emergency lending facilities that facilitate liquidity in the marketplace and support eligible businesses, states, governments, and tribes. this unique authority known as 13 three authority is authorized under section 13 of the federal reserve act and plays a critical role in stabilizing markets. both prior to and after the enactment of the cares act the federal reserve announced the establ

future looking like and does a federal reserve need to make some sort of change to its infrastructure. well i

federal reserve charger on powell has warned that the coronavirus pandemic could trigger a prolonged recession in the united states speaking by a video link mr policy said the u.s. economy would take some time to return to where it was just months ago you urged congress and the administration to do more to prevent long lasting economic damage the message comes a day after top infectious disease expert anthony ward against reopening the economy too quickly. all right let's bring in a wall street correspondent yes cordy here yes quite a grim projection there by jerome pala not at all mirroring the optimism markets were showing recently what's behind this outlook well i mean there's clearly a lot of uncertainty and that is nothing new but your own pall of point it's true puzzle possible bankruptcies and of that should happen that it could also take longer than hoped for what happened at the u.s. labor market and if you look at some companies so there was speculation going on that some big firms actually might have to file for bankruptcy protection energy for the chesapeake for example a

coming up in just a few moments, we've got the president and ceo of the dallas federal reserve, robert kaplan, to talk about the central bank expanding efforts to help businesses and workers during the covid-19 crisis and assessing the economy today. we're expecting we are in a recession right now. but first, u.s. equities had their best month in decades in the month of april. however, the coronavirus pandemic continues to wreak havoc on the broader economy. u.s.u.s. gdp shrank in the fourh quarter. the sharpest decline since 2008. now more than 30 million people have applied for unemployment benefits in just the last six weeks. as states are ramping up to reopen, what can be done to safely jump-start this economy? joining me now is omede mall lick, thank you so much for joining us. hope you're staying safe and strong in this shutdown. >> thanks. same to you, maria. maria: isn't it unbelievable that even as we are in this shutdown, we are seeing states across the country reopen this weekend, yet the markets have done exactly what they're supposed to do, provide liquidity. boeing offeri

shaped recovery ahead of the us federal reserve warns of an extended period of weak growth and calls on washington to write bigger checks also coming up travel giant tree announces thousands of job cuts after a loss make. in winter period and with an even tougher summer to come plus greece is notorious for its red tape and slow moving officialdom but the coronavirus crisis now has things moving faster. chris colfer and bill invoking the program u.s. federal reserve chapter on powell has warned that the coronavirus pandemic could trigger a prolonged recession in the united states speaking by a video link mr policy said the u.s. economy would take some time to return to where it was just months ago he urged congress and the administration to do more to prevent long lasting economic damage the message comes a day after top infectious disease expert anthony warden against reopening the economy too quickly. all right let's bring in a waltz or correspondent yes quarter here yes quite a grim projection there by drone powell and not at all mirroring the optimism markets were showing recently

so that's there for the federal reserve to do. it's a lending facility, not a spending facility. there's a big difference between the way the two are administered. >> let me follow up on the second point senator reid was making about the foreclosures. a lot of people are going to be watching that concerned. he alluded to the mistake that was made in 2008, 2009, that the fed bailed out wall street and left main street out to dry. how concerned are you that the way this is playing out right now, with all of these cares, nothing has offered homeowners the kind of relief and protection from foreclosures that we have seen in 2008 and 2009? >> thus far, that's only happened on a state-by-state basis where some governors have declared a moratorium on mortgage payments. there's a deeper problem with respect to how this is implemented. to the extent that individuals are foreclosed upon, not only do they get affected and thrown out of their houses, but banks have to take capital impairment on a they assume the responsibility for property taxes and maintenance. so they would also have to be

we are deeply in your debt and really glad that you're the chairman of the federal reserve. thank you. >> thank you, allen. great to be here today >> that's fed chair powell with former fed vice chair talking to a somewhat broader audience this time ferreting out some bits of news in the last few weeks. commenting the fed did cross some historical lines but it was appropriate. talked about a confidence factor with second wave of the virus. the thousands question about negative rates not working, at least mixed evidence that it works well with serious side effects. >> yeah, i would bullet all those as main news from the conversation he just had i'd add to that the idea the balance sheet is not close to any limit that he would be comfortable with he doesn't see it creating financial stability. he's comfortable with where it is now, where it's going and also suggested there's more to react. i thought the red line comment was a little curious maybe come back to that in a second the second wave concern is a theme that chairman powell has talked about quite a bit there serviit was

we are monitoring that closely at the federal reserve.ou are absolutely right that retaining liquidity in this area is important. i think it is right to ensure that we see that it has been adopted by the measures. they have certainly been helpful and we will continue to monitor that. sen. mcsally: what about on the commercial real estate? we have businesses that are closed, struggling to pay rent. if they can't pay rent, than the mortgage holder needs to pay the mortgage and that flows downstream. mr. quarles: you are absolutely right about that. we are monitoring how that is developing. the markets are working but we are keeping a close eye on it. sen. mcsally: great. thank you. one last question, i think i have a minute left. can you share the term asset to provideties, liquidity for consumers and businesses, can you provide an update on trends in consumer lending and what if any actions the fed is considering to see that across the country? getting a lot of input on what additional types should be considered there. specific changes to

i will try the chairman of the federal reserve. is it fair that those workers who are exposing themselves to --s virus, michaela wages this virus, making low wages, is that fair? chair powell: those are workers who are in the service sector. that is what is unusual about this, is it is all about the service sector, and particularly those parts where there are lots and lots of in person contact. those tend to be lower paid workers, and they are definitely the most affected. i would say all of our efforts are to do what we can to help those people and create conditions so they will have the best possible chance to get back to work. sen. brown: some of the best things you both could do is to support pandemic pay for these workers and support another recovery act that included more dollars for these low-paid workers who we continue to celebrate as essential. mr. secretary, we passed the c.a.r.e.s. act to help millions of workers who make our country work. you set up c.a.r.e.s. act programs to lend trillions of dollars to companies. am

two months, the balance sheet of the federal reserve has doubled. now, many of the transactions affected by the federal reserve, of course, are loans, but we all know that all the loans aren't going to be paid back. and since the federal reserve can't lose money, we are going to have to appropriate probably even more money than we appropriated in the cares act to backstop those losses. so we're up to $6 trillion, let's say. speaker pelosi, as you know, mr. president, has introduced a new bill that would spend another >> that of course we will have to borrow. some americans think the money that we don't go the issue treasury securities which is a bond and to borrow money from people in many americans and then have to pay the money back so now we're at $9 trillion go $9 trillion. and told her that one - - total debt is at $28 million. speaker pelosi's bill will not pass the senate in its present form go you have to be a senior at the university of one thing it cost $3 trillion and it will expand the affordable care act which is controversial in the se

committee this morning will hear testimony from secretary mnuchin and federal reserve chairman powell about the economic9 distress caused by the covid-19 pandemic. this testimony from the the fed is one of the requirements that senate democrats secured in the cares act, and we've been pushing for it to happen for several weeks. the fact that it's taken so long is once again one more indication that our republican senate colleagues are not focused on the covid crisis, but on other diversionary issues,ec witness leader mcconnell speech which i will have some to say but a few minutes. it could be more urgent thate they are testifying here covid-19 pandemic has thrown over 35 million people into sudden unemployment, the highest level since the great depression. and chairman powell has said that further layoffs could continue for months. the anguish that so many will feel. without further action, powell said we would risk, quote, prolonged recession and weak recovery. with unemployment reaching 20% or even 25%. and in chairman powell's words that may be that congress has to do more. the re

i will try the chairman of the federal reserve. chairman, is it fair that those workers who are exposing themselves to this virus and making low wages, we call them essential by all definitions, is that fair? >> those are workers who are in the service sector. it is all about the service sector and particularly those parts of the service sector where there are lots of in person contact. those tend to be lower paid workers. they are definitely the most affected. i will just say that all of our efforts are to do what we can to help those people and create conditions so that they will have the best possible chance to get back to work. >> some of the best things you both can do is support pandemic pay for those workers and a recovery act that includes more dollars for these low-paid workers who continue to celebrate as essential. mr. secretary, we passed the cares act to help millions of workers to help the country work. you set up cares act programs to lend trillions of dollars to companies. am i right that you are not requiring compa

. >> the senate banking committee this morning will give testimony from secretary and the federal reserve chairman help about the economic distress caused by the covid-19 pandemic. this testimony on the secretary and the chairman of the fed is one of the requirements the senate democrats have secured an estate care is actively have been pushing for it to happen for several weeks. the fact that is taken so long, is once again, one more indication the republicans senate colleagues are not focused on the tren covid-19 crs but otheris issues. it could not be more urgent that they are testifying. covid-19 pandemic, has thrown over 35 million people into sudden unemployment pretty the highest level since the great depression. and chairman powell has said, that further layoffs continue for months. the anguish that so many will feel. and without further action, powell says, we have prolonged recession and weak recovery. with unemployment reaching 20 percent or even 25 percent. and chairman powell's words, it may be that congress has to do more. and the reason we have got to do more, is to avoid l

so, wealthy federal reserve -- so, will the federal reserve continue backstop credit markets?in which zombies will just walk around and really start limiting the growth potential of america? or will the fed pull away and we start seeing distressed companies and defaults? that could be a more positive scenario so it could clear out the system. scarlet: lisa lee, thank you so much. theng up, what is next for u.s. economy after we reopen? we will look at a new kind of job picture. this is bloomberg. ♪ romaine: welcome back. alongsidene bostick scarlet fu. joining us now, the cohost of this show, joe weisenthal. also most of the odd lots podcast which surprisingly spotify did not pay $100 million for. joe: what were they thinking? it's ok, i would take you guys over 100 million, if i am being honest. romaine: what are you watching? one of the big questions, there is this jobs crisis going on even as we reopen. the interesting story on the bloomberg today about some of the types of new jobs that will be needed as offices, restaurants, all of these things reopen. it is going to be e

federal reserve bank because what charles saatchi did what he specialized in and he maybe he copied others before him but he was a show man and doing this as he would buy up junk junk art and then announce that he charles saatchi had bought junk art right and therefore he would make a fortune and dumping this junk are onto other people well this is kind of what the federal reserve bank is now doing is they are literally now buying junk they're starting as of just a few days ago to buy junk corporate debt in the in the e.t.f. market exchange traded funds so before we get into this i want to show you how it's how you could turn junk and to great art now a lot of people want a special show just for stakes hair so i was inspired me to come up with an art show right here is stacy's hair looking surprised on purple usually i'm responding to something max has said. you know this is me being shocked at something you've said this is stacy's hair on yellow no card looking kind of oh dear max has gone too far without one i have seen that face many times. and this is me my hair stacey's hair on green

balance sheet if you were to mark to market everything on the federal reserve balance sheet that is to say what is the actual resale value of the 6 they have the 7 trillion dollars of assets they claim to have what could i get in the open market the answer is 0 there is no market for those assets at all there they have no market price at all so technically even if these collectively got as little as $4.00 or $500000.00 it would be worth more than the $6.00 to $7.00 trillion the fed claims it has on its balance sheet because there's a market for these there's no market for what they have now the fed also strangles the market by the neck grabbed by the neck and strangles it and you can see that and another statement from another legendary hedge fund investor you know we talked about paul tudor jones getting involved in big point why because of the fed because the fed is dumping junk pretending junk means anything for testing junk has value junk refining the financial system just like the art market was junk a fight here to stand junk and jumped in miller everybody always says drunk

economy that's staggering did the federal reserve chairman suggest what the implications of that would be. well at least what the chairman said is that he doesn't not believe that we will see a depression like scenario that we saw well 100 years ago and the reason why is what is the difference between a recession and what is the difference between a depression it's basically the duration and overall the fed chairman is sort of hopeful that at least the duration of this economic crisis won't be as long as we've seen it in the thirty's in the united states so that's at least a tiny bit of a hopeful message from the fed chairman even if you also mention that nobody can tell you how everything develops from here on ok but at least the in the short to medium term things don't look that great despite that grim for forecast our markets are up over 800 points so what's got them so excited. it's incredible what we've what we're seeing here today blue chips up by about 3 and a half percent oh well the market is trading on hope we heard there was the word of a seen a couple of times and so there'

the federal reserve is in charge of the money supply.they don't do what treasury does or what the government does. yet i would imagine that people in congress or at least some people in congress would say well, we have given a lot of money right now. look at the stock market, up 963 points. yes, that's people's 401(k)s. what is the counter-argument there? at some point we do need to continue to think about people who are still on the unemployment rolls. 36.5 million people filed for unemployment benefits. does that worry you? >> i mean, it's a tragedy. the world is shut down because of the virus that america did not ask for but the stock market doesn't have to collapse the way the economy collapsed, because we are not necessarily in a normal business cycle. i think the stock market's message is really saying as long as credit's functioning, and as long as too much damage isn't being done during this shutdown period, the stock market's kind of telling us that there's a pretty vigorous recovery coming. i don't know when that starts but tha

plus the head of the federal reserve has issued his outlook on what the economy needs to avoid falling even further we bring you some insight from a former fed insider and later truckers have descended upon the capital of the u.s. as they bear the weight of the covert 1000 pandemic will take you there with a packed show today so let's go and dive right in. hundreds of lawmakers from around the world on wednesday called on the international monetary fund and world bank to cancel massive amounts of debt to the world's poorest countries due to the coronavirus pandemic now in a letter put together by former u.s. presidential candidate senator bernie sanders more than $300.00 legislators also urged the organization to increase funding to avoid a greater economic downturn now widespread lockdowns and stay at home orders have devastated the global economy in recent months with poor nations feeling the brunt of having to deal with both a public health and economic crises at the same time now in a press release announcing the initiative senator sanders said canceling the debt is the very least

. >> federal reserve chair jerome powell said the central bank will use its monetary policy tools to keep the economy going. during his news conference wednesday, chairman powell also indicated that interest rates will remain low for the time being and suggested that more federal stimulus might be needed to respond to the impact of the virus on the economy. chairman powell: good afternoon. thanks for joining us today. i would like to begin by acknowledging the tragic loss in -- and tremendous hardship that people are experiencing both here in the united states and around the world. the coronavirus outbreak is first and foremost a public health crisis and the most important response is coming from those in the front lines in hospitals, emergency services, and care facilities. on behalf of the federal reserve, let me express our sincere gratitude to those dedicated individuals who put themselves at risk. the forceful measures that we as a country are taking to control the spread of the virus have brought much of the economy to an abrupt halt. many businesses have closed, people have be

from 2007 to 2010 she served as a return to the federal reserve board.mcwilliams has three minutes. >> thank you very much for a chairman meeks ranking member luetkemeyer chairwoman waters ranking member mchenry and members of the subcommittee and staff thank you for the opportunity to participate today. i hope that you and your families and staff are able to do the nations work at this time. when it comes to the covid-19 pandemic with taking swift decisive action to maintain stability in the nation's financial system. we have taken action to encourage banks to work with customers and committees increase flexibility for banks to meet the needs of their customers offer small business lending and actively monitor the financial system. the brunt of this economic impact is the hardest and individual consumers independent contractors low-income are worse and hourly workers. the fdic remains mindful of those in our community for the most vulnerable because the pandemic and are an economic shock. particularly those on fixed incomes. as part of our -- we have co

in the federal reserve has done it. many of the transactions by the federal reserve are loans but we know all loans will be paid back and since the federal reserve can't raise money, to appropriate even more money than we appropriated in the cares act to backstop those losses. we are up to $6 trillion. the speaker introduced a new bill that would spend another $3 trillion. that of course we would have to borrow. some americans think we print the money, we don't. we issue treasury securities which is just basically a bond, and for many americans, including but not limited to china and we have to pay that money back. now we are up to $9 trillion, that is 900-000-0000000 and our total debt, that is going to put us at $28 trillion. i'm not going to repeat the 0s again. nancy pelosi's bill is not going to pass the senate in its present form. you don't have to be a senior at the university of georgia to know that. it has provisions in it. it cost $3 trillion, it will expand the affordable care act which is controversial in th

it would be administered through the federal reserve.eral reserve has the technology to do this. >> reporter: if for whatever reason legislation or legislation like this can't get passed, do you think the private sector steps in and kind of solves this problem? >> i think there are some things the private sector doesn't do. i mean, the banks don't really seem interested in low-income people because they can't make a lot of money off them. so that's why we want to allow our post offices and our community banks working with the federal reserve to give people that option. >> it will be $9. cash or vinmo? >> reporter: the cash at the farmers market, we noticed many shoppers were still using cash. >> we saw right when the coronavirus happens, big withdrawals from atms and banks. there's something about cash that people just doecht want n' entirely be above. >> reporter: even in the age of corona, cash isn't ready to give up its crown. >> we say cash or vinmo. they say what's vinmo? something you don't have. >> reporter: brooke silva-braga, ne

you worked at the federal reserve. you should be on the federal reserve right now in my opinion.ou understand economics better than anyone. i think both side are in incredibly awkward position right now. they have printed up a lot of money, trillions of dollars. we sent out a lot of checks, we learned moments ago from oxford economics just in the last three months the average american worker has lost $9,000. we're talking about almost 30 grand a year. what is the right solution at this point? >> the right solution at this point is exactly what secretary mnuchin as well as fed chairman powell alluded to. we must open this economy. allowing this economy to totally collapse is not a starter. it is not negotiable, it is not on the table. people want to go back to work. what federal reserve chairman powell was saying is that they're in the lending business. they are doing all they can do in order to make the lending available through the banks and that is a good thing. there is not a lot more they can do. they're not in the spending business. all secretary mnuchin says they have put t

and to be authorized under section 13 and to stabilize those markets but the federal reserve announced the establishment of the intent to establish to support the financial markets and businesses including some that are supported by the cares act. last week other members of this committee and i have a robust discussion with these facilities to stress the importance like the main street lending programs and the municipal liquidity facility of stress the importance with broad access is also a disk should be successful to take into the special purpose vehicles various programs they are a critical component of a strong economic recovery which reinforces the need and flexible as possible. it contains robust oversight revisions. it is critical each federal agency follow all reporting and oversight requirements and then to ensure appropriate oversight. and then favorably out of committee and then the congressional oversight committee with that oversight of title iv. and the biggest rescue package in the history of congress i look forward to hearing more on the status of the treasury loan prog

, by law, chairman powell's federal reserve can only lend money that must be paid back. congress, he believes, should spend money to expand its historic bailout-after all, he says >> powell: this is not because there was some inherent problem, a housing bubble or something like that or the financial system in trouble, nothing like that. the economy was fine. the financial system was fine. we're doing this to protect ourselves from the virus. and that means that when the virus outbreak is behind us, the economy should be able to recover substantially. >> pelley: and what sort of support, in your view, do you think the congress would want to consider? >> powell: i don't give them advice on particular policies. but i would say, if i may, that policies that-- that help businesses avoid avoidable insolvencies and that do the same for individuals. keep workers in their homes, keep them paying their bills. keep families solvent. >> pelley: among the options: extending the increase in unemployment benefits which expires in july and supporting powell believes trillions in additio

grant,e a $3 trillion the federal reserve, and congress has granted loans.ow long can you sustain -- another 3 trillion round after that. at some point, even if we wanted to do that, other outside investors and central banks around the world continued the compounding deficit we are mounting. i think they are doing everything they can and should. i applaud them come in the fog of war, that has been so coherent and quick off the block, but i think it cannot go on forever. >> it raises the question whether there might be some risks to the financial system itself. it has not been that big a problem, but now the fed is starting to worry about things like commercial real estate. do you see any risk on the horizon for the financial system? lloyd: anybody who says there is no risk on the horizon is crazy and blind. i would say the financial -- again, i am not talking as an insider now but as a pre-alert and attentive observer. the balance and liquidity banks were extraordinary and i do not necessarily mean that as a complement to the people who have been and are run