that's something we continue to discuss with the federal reserve. >> okay. mr. powpowell? >> yes, that's where we are. >> thank you, madame chair i yield back. >> thank you mr. clay, you're now recognized for five minutes. >> thank you so much, madame chair and thank both witnesses for your participation today mr. secretary, i'm somewhat troubled by recent reports that some banks have taken stimulus payments from individuals and families with garnishment orders or negative account balances to offset unrelated debts owed to them i find it troubling that banks would serve as debt collectors at a time like this when families need the resources most when will treasury issue guidelines articulating your expectation that financial institutions refrain from taking stimulus funds away from their customers during a time like this >> well, let me first say i agree with you and that i think it would be awfully unfortunate if banks are doing that. we have had inquiries about the issue of garnishment and we agree from a policy standpoint that there should have been no garnishment unfor

federal reserve is committed they say to use the full range of tools to support the economy. this was a unanimous decision but again, charles, holding the federal funds rate where it is at least through 2022 is their projections. back to you. charles: edward, thank you very much, my friend. hopefully we'll come back to you for some additional information but right now i would like to bring in to discuss, kaltbaum capital management president, gary kaltbaum, katherine rooney vera and bahnsen group, david bahnsen. gary, let me start with you. any surprises here? market trading down lower initially? >> i got one big surprise. last i looked it is june 2020. they're talking about keeping rates to zero through 2022. to me that is utterly insane. there are some variables, so many things that can happen. one day the bond market may tell the fed, we're a lott stronger than you and interest rates back up regardless what they do, then they're in a box. i do not like the fact they're talking 2022 but everything else, no surprise. they're going to print money at $1.5 trillion a clip into t

powell, have jerome chair of the federal reserve bank system. mr. powell has served on the board of governors and's 212 and is chair since 2017. mr. powell has testified before the committee. i believe he does not need any further introduction. so without objection, your written statements will be made part of the record. each of you will have five minutes to summarize your testimony. when you have one minute remaining, a yellow light will appear. at that time, i would ask you to wrap up your testimony so that we can be respectful of the committee members time. secretary mnuchin, you are now recognized for five minutes to present your oral testimony. secretary mnuchin: thank you very much. mr. barr. let me express my condolences for your loss. of the committee, i am pleased to join you today to discuss how the treasury department and the federal reserve are working together to provide liquidity to the credit households,iness, as well as state and municipal governments. we remain committed to making sure every american gets back to possible.ickly as

this is uncharted territory for the federal reserve. jonathan: and the individual bond buying as well. things yesterday, with an equity market down, and in the process of reversing, and then the federal reserve steps in and boosts it higher, i think it was the timing that the federal reserve might take a little bit of criticism for in yesterday's session. tom: i am of the triple leverage cash fund, and i studied a number of weeks ago, should i step into those three year 0.4% yield.with a can you imagine that the fed needs to buy those amazon three your notes? that is extraordinary. jonathan: i think it is fair to say the fed has probably moved far away from market functioning and towards something much bigger for this market. that's start the conversation this morning with mike pyle of blackrock, the chief investment strategist. live coverage right here on bloomberg tv and radio. let's begin with the bond buying program from the federal reserve. in many ways, they have done exactly what they said they would do several months ago. i thin

pandemic at a virtual pandemic hosted by the university, and the federal reserve was days away from making the first loans to small and medium-sized businesses for the lending program. this is 40 minutes. >> i have the signal that technology is working. no one would have put that in my domain so to quote somebody i don't take any responsibility for that. alan reiner, director of public affairs at princeton university. thank you for joining us on the special princeton reunion event for federal reserve chair jerome powell, i might add we are happy to have many members of chairman powell's classmates from the princeton class of 1975 on the zoom. on a logistical note if you have a question you are welcome to submit it using the q and a future zoom which you will find on the bottom of your resume window that says q and a. you may upload questions you would like to see answered and take as many of these, a full recording will be posted on the griswold center website. it is live streamed right now it is working. we are live. let me introduce a man who needs no introduction but we are happy

central bank clutched at the federal reserve has propped up markets in the u.s. it is posed an interesting issue for a major debt holder china and later the race is on for the head of the world trade organization and the european union is weighing in we bring you the latest on the run with a packed show today so let's dive right in. and we lead the program with the latest policy update from the federal reserve's federal open market committee as expected fed chair jerome powell and now it's interest rates will hold near 0 through 2022 but the real question has been what action will the fed take moving forward. since march we've been purchasing sizable quantities of treasury and agency mortgage backed securities you know to support the smooth functioning of these markets which are vital to the flow of credit in the economy our ongoing purchases have helped to restore the market conditions and have fostered more accommodative financial conditions as market functioning has improved since the strains experienced in march we have gradually reduced the pace of these pur

when you look at the overall picture and i mean this is if you go back of the origination of the federal reserve i think this is kind of their plan all along this is part of the rolls largest legalized. they can do has allowed the rich to get richer as times get tougher you know for years they've had access to this cash and capital to borrow it's only recently that the average guy can actually browse for my to get in so they threw a fry and bad conditions and actually. always built well under the toughest conditions because they have the access to capital that others don't they have the ways they get the money others don't so their businesses are allowed to thrive well everybody else is out of business you come by where i am in chicago and almost every small business is going to be out of business i had time to selling is over not just wiped out 5 an entire class of people because you allowed the wealthy to go out and thrive through these tough times getting access to capital doing all the things that normal people don't get to do so the class divide will continue and it's mostly because we don'

or one teacher you dollars there is no going back i mean why do we believe that this federal reserve ever said we're the value of the u.s. dollar these are very hard assets. how much longer secular ways i don't think it's going to last i think as you point out the structurally the situation has broken and it's a company dumpty can't put it back together again they're in a trap as you say their only recourse is to keep printing and to keep buying these stocks and bonds and they are in effect take me entire economy private with a leveraged buyout from the bankers at the federal reserve bank and their attitude toward the $150.00 or $300000000.00 americans are that they're the new presidents and they they really have no rights anymore and when i say the dollar is in a hyper inflationary collapse i do mean against the only sound money in the world today and that is core of course is bitcoin so against decline the dollar is an hyper inflationary collapse so but but to your point i mean my answer would be that there's not there's not going to go back this is the new normal and we're back to

i don't think the federal reserve is very well equipped to be a venture capitalist. there's a question about whether a government can be a good venture capitalist in any guise, but i think that's one of the problems we are facing the congress is hoping the fed can get them out of this thing and they won't have to appropriate most money, and most of the economists i respect say that's not going to work, so it's bandy on jay powell, and to forcefully argue congress and the president that we need to put more fiscal support into this economic if people will have a decent recovery >> last question, bill why couldn't the whole fed main stride program simply been a congressional program? again, the money comes from both sides, but why aren't we thinking of it as more of a congressional activity >> in fact, it is. the key to monetary policies, we need to redirect the flow of money to equity financing. i'm not saying -- in fact i wanted to redirect the money flows away from debt, which we already have way too much of toward equity financing. it's the -- and the legal changes

liz: this is uncharted territory for the federal reserve. >> yes. liz: i want to get to that part where the fed announced it would get in the business of buying individual companies corporate bonds that are eligible of course, and i believe that would mean investment grade before march 22nd, when everything fell off a cliff, but it won't require certification. you know, i'm very interested to know exactly what that means. do you see any unintended consequences from doing something like that, buying the debt of companies, owning small pieces of bankrupt companies that could become insolvent? >> well, let's be very clear. the program that we announced earlier this week would be focused on companies that were investment grade, as of when the covid crisis hit the economy. again, there may be some fallen angels in that category that have been downgraded but only after the crisis. so that will be the focus of that program. it will essentially be a very broad index of corporate bonds issued across many sectors of the economy, and again, that is to support

. >> up next, federal reserve chair jerome powell talks about the u.s. economy and his agency's response to the coronavirus pandemic at a virtual event hosted by princeton university. >> okay. hello, everybody. i now have the signal that the technology is working. fortunately nobody would put that in my domain. i don't take any responsibility for that. i'm professor of economics and public affairs here at princeton university. thank you for joining us on this special reunion event with federal reserve chair jer powell. sponsored by princeton's griz wald center. we're happy to have many members of chairman powell's classmates on the princeton class of 1975 on the zoom. just one quick logistical note, if you have a question, you're welcome to submit it any time you want using the q&a feature of zoom which you'll find at the bottom of your zoom window. it tez q&a. you may also upload questions that you'd like to see answered and we'll take as many of these as we can. a full recording of the talk will be posted on the griz wald center's website and the talk

. >> and now remarks from federal reserve chair jerome powell on the u.s. economy and his agency's response to the coronavirus. he spoke last week at a virtual event >> federal reserve chair jerome powell discussed the u.s. economy and his agency's response to the coronavirus pandemic, at a virtual event hosted by princeton university. chair powell: hello everybody. i'm a professor

the presence of the chairman of the federal reserve and everything the federal reserve has done lastonths has been totally unprecedented. i want to go back to something the chairman said to close out last week, which is that the federal reserve does not contribute towards inequality. i think we ought to take issue with that and not simply ignore it. that is one hell of a statement from the chairman of the federal reserve, when we know from the experience of the last 10 years that if you have assets you went up. who has assets? that is a simple question to answer. i would also at the federal reserve has the best of intentions, but that does not mean the outcome does not contribute to widening inequality. that is simply not true. tom: i think you said it delicately and i thought you and michael mckee speaking with loretta mester of cleveland touched on that as well. i see a lot of pushback from our guests that we did not nationalize the bond market. i do not buy it. i observe we are in the process of nationalizing our bond market. maybe we can say in five to 10 years it will not be, bu

up next, kevin warsh, former federal reserve governor, next on the federal reserve and monetary policyorldwide. with equity futures advancing, good morning. this is "bloomberg surveillance ," live on bloomberg tv and bloomberg radio. ♪ ♪ jonathan: from new york city, this "bloomberg surveillance." we are live on bloomberg tv and bloomberg radio. alongside tom keene, i'm jonathan ferro, together with lisa abramowicz. two hours away from the opening bell. we add some weight to the rally of the last three days. the s&p 500 advancing by 18 points, up around 0.6%. really muted price action in the bond market. treasuries go nowhere. your yield on the 10 year, 0.775%. in foreign exchange, mixed session for the u.s. dollar. a little weaker against the aussie, stronger against the euro. we wait for day to of chairman powell -- for day two of chairman powell on capitol hill. tom: we've got someone here right now, wonderful to speak to. i want to take you back 14 years to january of 2006, where president bush made a brilliant set of two appointments. one was randall kroszner, a great financial ec

in 2012, president obama appointed him to the federal reserve board. in 2018, president trump elevated him to the chairmanship of the board. trump, as you know, has since complete many times this was a terrible choice trade almost everyone else on the planet sees it as a fabulous choice. , havingeeply grateful him running the fed now. and for spending time with us this morning. thank you very much for being here. start with the most obvious question. are you sleeping well? you, ellen.: thank and first, thank you for having me here today. it's a great pleasure to be here. myould like to say hello to hello classmates from 1975. if you'll permit me i want to start this by noting, that this is a difficult time for many americans. people have lost loved ones. many millions of people have lost their jobs. there's a great deal of uncertainty about the future. i really think we ought to start by acknowledging that fact. , the fed is strongly committed to using our tools to do whatever we can for as long as it takes, to provide some relief and stability now to

we're waiting on federal reserve chairman.ar what jerome powell is doing ratewise next year or two or three. let's take it to charles payne. hey, charles. charles: neil, thank you very much. in fact thank you all. this is charles payne. we're starting a little early right now because we're just moments away as neil just mentioned from the federal reserve, jay powell and company. how creative can they be to keep that pump primed? will they cap yields? will we go to negative rates? will they once again invent new tools? at 2:30 we hear from federal reserve chairman jerome powell himself, expected to reiterate the u.s. economy is still in need of help despite the huge jobs gain on friday. indices are mixed ahead of the fed decision. nasdaq continues above 10,000. it continues to be a powerhouse. will small businesses get help from federal government. we'll bring you important hearing from capitol hill featuring treasury secretary steve mnuchin. for right now, folks. let'slet's go to washington, d.. edward lawrence waiting by with

on the other cited that is that the federal reserve stokes inequality.hink it was bold to say that the actions of the federal reserve do not add to inequality , when the last 10 years suggest that maybe he is wrong. tom: what is so important about this, and it really is front and center, is does the unrest we see in the unrest that is widely predicted, does that jumpstart the second, third, or fourth tranche of assistance from washington? a changedy, is there policy prescription from washington? sharpens theope it focus washington, d.c. on many fronts. some of the benefits of the best some of the things of the last andmonths will be fading, the federal reserve is talking about the next phase. i think we need to hear about the next phase from the fiscal policy makers as well. tom: much more to come not only here, but in europe as well. jon, why don't you take it out with a data check here on our simulcast? jonathan: thanks for embarrassing me because the equity market is embarrassing us all this morning, completely detached from the mood of the world. up

in fact i think that the federal reserve, i mentioned earlier the comments of mr. kaplan but even later on this week i will be sitting down with esther george to discuss some of these same issues. thank you, chairman waters >> thank you very much ms. wagner, you are recognized for five minutes >> thank you, madam chairwoman and i thank you, chairman powell, for coming before this committee today. i wanted to commend you as so many of our colleagues have and the federal reserve for moving so very swiftly and decisively these past few months on keeping america's economy stable during this pandemic. just this week the federal reserve announced it would begin buying up to $250 billion in individual corporate bonds through the secondary market corporate credit facility with the ability to also, i believe, tap into $25 billion in funding from the treasury department that was provided by the c.a.r.e.s. act i understand the need for the federal reserve to have this facility at the ready, but i'd like to know why you decided that it was at this time to launch the facility n

owning a home so here's the data from the federal reserve that everybody's talking about online which shows how the cantillon effect drives this and equality in terms of whoever have their home in 1971 because even the data here in the sam b.c. article they don't mention 1971 what happened then but they actually trace that back to 1970 so in terms of this inequality. household wealth the median price for an existing home was $287000.00 in april up more than 7 percent from a year ago according to the national association of realtors these gains have disproportionate lead gone to the wealthy and white americans while 72 percent of white households own a house a key source of household wealth that's true for 42 percent of blacks and 47 percent of hispanic households the urban institute said this gulf between white and black americans is greater than at any other point in 5 decades according to the report what happened 5 decades ago in 1970 what happened after that so from that with the wealth the money printing has created. it doesn't create real wealth but in an asset base the khana be

effort to survive where perhaps i disagree a little bit is in looking at the government or the federal reserve or the treasury as somehow the place to start understanding what's going wrong i don't see it that way i see capitalism as a system that gets itself periodically into trouble lets remember the national bureau of economic research and many other institutions have traced through the rise and fall of capitalism's instability its business cycles if you like every 47 years we have a downturn that's the average and typically if it takes longer than 47 years which it did since the last crash in 2009 you pay for the longer upswing by either a longer or a sharper downswing we are now in a longer deeper downswing we would have been in any case the pandemic only makes it worse blaming the pandemic is a desperate effort to allay facing the instability that dreamed that capitalism has always brought with it adding said that the federal reserve like this u.s. central bank that preceded it was an attempt to manage the very same contradictions of capitalism its business cycles its inequality and so n

about the federal reserve use and the sensitivity to the coronavirus.so gives us insight into the expectations under loan losses for the banks, and then return of capital, it is fascinating to see the narrative the fed has looking out from today, not only to the issues but 2021. there was much more language and scenarios not only to a u-shaped, not a v-shaped, but a we doed scenario where not have a second rise of covid-19, but the fed has been thinking about this. i think that is important. tom: you absently nailed this as you always do. i was thunderstruck by the language we saw from the team. why did they do that? what is the back story on the why when there was so much ambiguity and mystery past september? ken: it is a great question. it was two things. you had to have a narrative that linked stress test that did not look bad and economy where unemployment was far greater in the adverse scenario of 10.3% unemployment. second, we are looking at unemployment that is not likely to recover with outgrowth of the fed's view, but over a long period of time

i speak for my colleagues throughout the federal reserve system when i say there is no place at the federal reserve for racism and there should be no place for it in our society. everyone deserves the opportunity to participate fully in our society and in our economy. these principles guide us in all we do, from monetary policy, to our focus on diversity and inclusion in our workplace, and to our work to ensure fair access to credit across the country. we will take this opportunity to renew our steadfast commitment to these principles.s we understand that the work of the fed touches communities, families, and businesses across the country. everything we do is in service to our public mission. we are committed to using our full range of tools to support the economy and to help assure that the recovery from this difficult period will be as robust as possible. thank you, i look forward to our questions. >> for the first question, nick. >> yes, thanks, chairmann powel. "wall street journal." want to ask about the economic projections and i realize these are more of an educated guess at this poi

federal reserve boosting markets oversea as well.cross the board with the fq100 up 156, the cac up 122, and the dax in germany up 363 right now. in asia overnight, similar story. the bank of japan comes into play here. the boj also taking action, increasing lending to businesses, they went from $700 billion to $1 trillion in aid from the bank of japan. jeff bezos set to make his first appearance before congress. cheryl casone with those details right now. cheryl: it's going to be something. good morning again. according to the new york times, amazon lawyers told lawmakers bezos will testify before the house judiciary committee as part of this anti-trust investigation into big tech companies. lawmakers are expected to ask bezos to respond to claims that his company used its power against small businesses that sell on its site. those third party sellers. and he will likely be asked about alleged mistreatment of warehouse workers during the covid-19 pandemic. that hearing which could include other big tech ceos expected to take place so

we have to talk about the federal reserve policy.nderstand you have a little bit of reticence about that. of identifiable fault line our central bank policy is somehow, the there debt has to diminish. how will they do that? raghuram: they cannot do anything about it for now. what they have to do is support all markets. the problem is when you support all markets, you're not letting the markets do their work. the question is when do you allow that to happen? take the highly indented which arelike hertz experiencing a revival without any debt restructuring. the question is when do we allow them to restructure their debt so they can emerge earlier from the crisis? that is a question the fed will have to grapple with. when does it allow the market to start opening on its own? tom: does the fed risk its independence? we had a conversation earlier today about how the fed came out in the 1940's in world war ii and basically had to nationalize the debt economy to allow the nation to recover. have agreat unseen we fed that loses its independe

this open-ended financing from the federal reserve, i think, will continue. it's going to give a lot of to passity to congress additional support programs. obviously, some of them may be constructive and positive, but some of them might actually turn out to be highly disruptive. to the capitalist system. i believe we are fundamentally in the process of altering capitalism in the united states and the free enterprise system has a number of threats on a number of fronts. >> the idea of altering capitalism -- inequality has be t of peop's minds as this crisis continues and as bank sees continued to mount. what do you mean by a different capitalism? inequality, the inequality of all types racial inequality, wealth inequality, all of these things are the result of, basically, poor planning and programs at washington. you know, the dispersion of income as a result of policies which have favored tax reductions has basically exacerbated the income equality issue. one of the things also has been quantitative easing. if you came out of the financial crisis and you had

it flattened going into the federal reserve decision.s-tens coming down to about 60 basis points. that is the spread between the two-year and the 10 year. your yield coming down three basis points in this session to just south of 0.8% on the 10 year yield. one theme that does continue this morning is a weaker dollar against the bulk of g10. euro advancing several tenths of 1%. that is a stronger euro and weaker dollar going into that decision and jay powell news conference just around the corner. tom: i am glad you mentioned euro. i was looking at that to go through $1.14. making it very clear at deutsche bank that we see weaker dollar. he even framed out in one part of the conversation a $1.20 euro. can you imagine the challenges for christine lagarde? i am not saying he predicted that, but he framed out how you get there. we've got wonderful guests coming up, including alan blinder on our fed show with scarlet fu. at that 2:00 p.m. this afternoon. right now a most interesting economist. mark zandi has led the charge at moody analytics

getting over that but there are 3 things in particular that seem to affect it one of them is the federal reserve you know that federal open market committee meeting that was held on wednesday and when you did those meetings it seems like every time they come to an end there's a little bit of a dip for big point as well as the stock market christine loves to use the term when he talks about buying the rumor and selling the news and i think with big point it seems like as of late we see a lot of selling the news every time there's another announcement we see that that number just dropped just by just a little bit for bit quite so that's part of it and then part of it also is the issue of the kind of this continued resilience it goes back to 2019 we've seen this issue since 200-1000 where big going gets close 210000 then it falls back now remember it fell back at one point from 10000 all the way to 3500 and it climbed back slowly from there we haven't been able to get over that point and i think part of it is a psychological barrier that says that the coin is not going to be able to sustain above 1

well i mean the federal reserve 1st of all is also coming up with the numbers saying that the u.s. economy probably will contract by about 6 and a half percent this year before coming back 5 percent in the next year and then another good 3 percent the year after i guess it's really impossible to really come up with 6 year numbers because there are so many unknowns what the federal reserve is not doing they're not playing around with negative interest rates but they will keep interest rates near 0 and chill the end of 2022 they're saying they're not even thinking about at this point to increase rates and they're purchasing u.s. treasuries roughly $80000000000.00 per month the reaction on wall street was very mixed we had financial stocks for example sharply lower because for banks for example lower rates are not caught on the other side if you look at capital intense companies like technology companies for instance they bravo that interest rates are going to stay near 0 for quite some time and the nasdaq composite actually achieved something historical it crossed the 10000 point mar

the elephant in the room is obviously the federal reserve.rillions have been expanded in the balance sheet and they're buying up everything in sight. look, i'm all for the recovery. i'm in there, i'm fully invested at this point but you have to recognize some of the other factors driving this asset inflation. charles: well, alicia, to that point, dani talked about lennar earnings. we have the nhab homebuilders sentiment. it came in extraordinary and blew away expectations. in fact if you look at the three components, where we are currently, single family homes six months out, the only thing held it back is foot traffic. hard to go out there to kick the tires on a house. but we do have other things, household formation, for instance, that has nothing to do with stimulus at all, but just maybe a change in attitude amongst consumers? >> absolutely. look, housing is a bright spot in the u.s. economy and was actually a bright spot going into the pandemic because there was already a turnaround you could see in january and february. the other thing,

in fact, i think that the federal reserve, i mentioned kaplan, but even later on this week, i will beitting down with justice george for some of the same issues. thank you, chairman waters. rep. waters: thank you very much. ms. wagner? rep. wagner: thank you, madam chair. thank you, chair powell to it i want to commend you and others in the federal reserve for moving so quickly and decisively these past few months and keeping america's economy stable during this pandemic. just this week, the federal reserve announced it would begin ining up to $250 billion individual corporate bonds through the secondary market's corporate credit facilities, into 25 billion dollars in funding from the treasury department, provided by the c.a.r.e.s. act. i understand the need for the federal reserve to have this facility at the ready, but i would like to know why you this is time to launch the facility now, what was the reasoning for launching it? chair powell: well, actually, this is something we have been saying since we first launched the facility, which we do, it did happen to be the fact that we u

and how the federal reserve has been conducting itself over the past few weeks and months and really years but especially during coronavirus i think what we're going to see is that the more moves the fed makes the better it is for any kind of safe haven asset because the fed continually demonstrates that it is erratic in its behavior it's not based in any kind of sound fiscal policy it's not based in anything that deals with the future and what future economies will look like it's all kneejerk reactions to prop up an economy that is almost on life support these metals seem to be a pretty safe haven but staying with ben silver is in a different space and gold because it is an industrial model and there are analysts who are predicting that silver is poised to go through the roof why is that. well because of exactly what you just said so silver is different from gold in that it is an industrial metal and it is used for industrial purposes so right now while silver is certainly cheaper than gold as we watch the economies around the world start back up again there are a lot of anal

dollar is really the federal reserve dollar you know if you look at the paper currency system reserve note i'm a bit you know the u.s. dollar and law is a lot of point 3 something fine grains that go. so what might happen is the federal reserve is just enough of the currency in all of deaths and everything to nominated in the most you could mean years government sound becomes especially worthless and it built a new monetary system based on past additional money which is of course you know goal so there are so many different possibilities acacias this could unfold in the future reset the watch and see and you know plan accordingly but one thing is pretty certain in my mind that all is going to have a key role to play as this unfolds right now jan was the last time i talked with the actual a oil it pre-dates when the world started to implement negative interest rates we have not had a chance to speak to you about negative interest rates at all and this is a new thing in the history of economics and government bonds suddenly were issued at negative rates it's aimed a repudiation of all l

how big is the federal reserve balance sheet right now? chair powell: just a touch over $7 trillion. >> how big was it at the end of december? $4 trillions.low >> how long do you think it will take to reduce the size of that balance sheet to something that is not otherworldly? chair powell: [laughter] that is an interesting standard. i think when the time comes and the crisis is over and we are not purchasing assets at this kind of pace, what we will do, that will be sometime out, but what we will do is what we did in 2014 to 2017. we just froze the size of the balance sheet, and as the economy froze, the balance sheet shrinks as a percentage of the economy. that was a peaceful period during which people worried about the size of the balance sheet, but it declined from 25% to 17%. that is some years away but this is probably the way we start. >> i cannot see the clock. how much time do i have left? >> you have two minutes. chairman, none of us can predict the future. is estimated to take a real hit this year, as you will know. the intellig

and the federal reserve's analysts printing of dollars in order to stimulate the economy is resulting in a new set of consequences for one of the largest holders of u.s. debt china according to a new reports china the 2nd largest foreign creditor has decided not to wait for the devaluation of the dollar and is actively selling american debt securities joining us now to discuss those that investigative journalist ben swan now the chinese government has sold off u.s. treasuries in the past to correct and what makes this time different than the last time. well one thing that makes it different is kind of the situation they were in globally look at chinese have sold off debt in the past including $110000000000.00 just last year alone about 10000000000 dollars over the last couple of weeks so it's not a new thing necessarily but what makes it different is that china seems to be actively trying to divest right now of that u.s. debt and u.s. securities and trying to let go of those in the midst of a time when the u.s. is as as chrystia danielle were just talking about when the u.s. is printi

on june 10, the fed released projections of the federal reserve board members and federal reserve board bank presidents under their individual assessments, the projected monetary policy. most projections forecast of the unemployment rate falling to 10% later this year from a high of 14.7% in april. can you elaborate on your projections for what the economic outlook is right now and can you take into consideration whether there is a differential between the short-term outlook versus the longer-term outlook, and how you approach this? mr. powell: to me, it is helpful to think of it in three stages. the first was the shutdown. we have seen what that produces, very sharp declines in economic activity and large increases of unemployment. that was q2. we may be reaching a bottom on that now. after that, it is reasonable to expect, and all of this assumes the virus remains reasonably well under control into does not iterience an event where researches widely across the country. the second part will be the bounce back. you should see during that andod stores opening, people going back to work.w