esther george said the fed needs to give details on guidance when it comes to the fed's intentions whend purchases to ensure effectiveness, transparency, accountability. what is going on here? what is the question you guys are grappling with? robert: i will speak for myself on that. i think we are buying still a substantial amount of bonds every month. treasuries and mortgage backed securities. i think we could say more about what our plans are going forward, but my own view is i, right now, would be hesitant to see us doing more in that area because i do not see the benefits. i can see how it would further add fuel to the financial markets had i am more skeptical how much it would help the real economy. kathleen: i got to ask you a question that struck me coming out of the minutes because the minutes said the new outcome based forward guidance is not an unconditional commitment to a particular pass. i thought you guys just said -- you said the fed will not be moving rates until inflation is at 2% and moving higher and your maximum employment. now it sounds act there is some flex abilit

for them but you know on the other hand the fed has their back has blackstone's back they get to dump their bad debts like all these foreclosures that aren't allowed to happen and blackstone is the largest private land they'll be able to dump it on the fed's balance sheet so you know schwartzman at blacks and will never have to pay for this but the small landlords will pay for that here we're looking at the difference between the big and the small why we have the rising wealth and income gap and looks like the fed is starting to notice this and their answer is what the people have been demanding essential a m.m.t. modern monetary theory that if you could print money for the for the banks why not for us and i want to add that one of our 1st episodes ever the 1st 5 episodes a kaiser report we spoke to steve kean in 2009 and he said that we should have quantitative easing for the people rather than for the banks and this is what it looks like the fed is going to get ready to do what's behind the fed's project to send free money to people directly so on september 23rd cleveland fed presid

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

we heard earlier from new york fed president bill dudley. joe: yes, he said the fed is out of ammo. central bank wants to admit it is out of firepower." unfortunately, the federal reserve is near that point, which means america's prosperity hinges more than ever on the government spending plan. it,line: let's get right to joining us now is the former new york fed president, bill dudley, now working in the university as academic, and economist. your perspective is that we need more in terms of fiscal spending. doesn't matter that we are not getting it now and we might get it after the election. dr. dudley: obviously if we got it after the election, it would not be a big deal. the prospects are that we will not get anything substantial publicly until after the inauguration, which is many months away. point thinkat this joe biden is probably going to be elected president. i just can't imagine the outgoing trump administration, if that happens, is willing to deal on a financial stimulus bill with democrats. we are not talking a week or two, we are talking months. that is important in an

i would submit the fed is insolvent.f you can create money out of thin air, it's a wonderful thing. i am in the camp that it's trying to tell you something >> coming up, presales surging for g m's ev hummer. ♪ ♪ for skin as alive as you are... don't settle for silver ♪ gold bond champion your skin united states can't easily get to a doctor or afford the treatment they need. that's why goodrx has built a leading consumer-focused digital healthcare platform. we wanted to make shopping for healthcare as easy as it is to shop for travel or electronics. as a public company, we hope to provide even more services that help people get the healthcare they need at a price they can afford. if you're concerned about the environment and climate change, how do you find companies that are driving the right outcomes? if you care about economic equality and social justice, which firms are addressing it in their workplaces and their communities? for nearly 40 years, calvert has delivered competitive returns by investing in companies makin

booth danielle fed minutes are in focus today and are specifically investors are going to be focused on inflation averaging an extended rate guidance this is these are the last minutes before the election that's just weeks away give us some color on that and how is the market digesting this latest update. so i think the market is interpreted in today's minutes as saying the fed is standing ready to monetize to print money to satisfy any stimulus spending that comes out i think the obviously the hurdle here is is actually getting congress to act but again the fed is showing a willingness especially with what powell said yesterday. there was no way that there could be too much stimulus and that is fed speak for saying whatever it is if it's 2 or 3 or 4 trillion dollars whatever the price tag is however many treasuries are issued we will buy them in the open market and ensure that there is a smooth transition to getting that money from congress out to the people we get that in spades the problem is that fed policy so far has proven that it doesn't do a lot in terms of satisfying its 2nd

rosengren boston fed president said years of low interest rates that encourage risk taking are making the current economic downturn worse he specifically cited low rates persisting for an extended period even after the economy had made progress in the recovery that can create problems well this is obvious you know as i've been saying you can't have capitalism without capital you can't have capital without giving people an interest rate to incentivize them to save. and the reason to do that is that if there is a downturn like a covert then there's plenty of state stuff there's plenty of capital in your capital system to smooth it out but if you debase the currency and you interest rates are 0 and there's no incentive to say therefore there's no capital then you don't have to apples them anymore you have a tough talker see run by central banks and the worse it gets the more they pay themselves and of course low interest rates re the crisis worse because low interest rates drained the economy by all capital and without it you will at the 1st. encounter with a pandemic like cove it you al

let's circle back to the fed. extended restrictions on paying dividends and share buybacks. the constraints first announced in june will last until the end of the year, so really cash preservation for the u.s. banks. editor joinsonomy us now. what was the fed justification for this latest announcement taking this halt to the end of the year? inwell, you heard it there michael mckee's interview with thomas barkin, the keyword word being uncertainty. that is something the fed is holding onto and their message. they cited it on wednesday saying the economic uncertainty as well as the need for the banking industry to preserve capital were driving this extension. there are some unhappy campers with this decision including the likes of j.p. morgan, which had interest inaled resuming buybacks and they are likely to be disappointed. there was one dissent from brainerd. she had said in june that allowing capital distributions to show we have not learned the lessons from the global financial crisis. she was pushing for more

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

we're up about 400 some points before the fed minutes the last 100 or so you can chalk up to fed describingmy as better than expected. let's go to dom chu at the commodities. >> right now u.s. benchmark wti prices, $40 almost on the nose and $42 for world benchmark crude futures. its uncertainty over the fate of financial relief from the government, it's spurring that drop in prices along with energy department data that shows a larger than expected build in oil stockpiles investors are keeping an eye on hurricane delta right now in the gulf of mexico >> thank you very much. >>> the house judiciary antibiot anti-trust subcommittee releasing a report particularly targeting facebook, amazon, alphabet, accuse some of bullying competitors the report also offering a strict recommendation, including potentially breaking up the businesses if needed, tougher m&a approval, preventing platforms from preferencing their own users. here to discuss further the anti-trust subcommittee's report is its chairman, congressman david cicilline. welcome. this report is quite massive i mean, it is 450 pages. ther

is the fed going to tolerate yields moving higher?llen: that is an excellent question because i do get that a lot. the fed would not allow the 10 year yield to move higher because that would tighten financial conditions. they wanted to stay where it is. the fed doesn't have a specific idea of exactly where the 10 year should be. they don't have an official yield curve control policy in place. areong-term interest rates rising for the right reason, because we have a stronger fundament a backdrop, and the incoming data suggests that the outlook is going to come into the upside of their expectations , then it is rising for the right reasons. it is not going to be tightening financial conditions because long-term yields are rising, but at the same time, these positive elements would increase equities. you might have the dollar weaken , which would be offsetting factors to that. about 10 year yields moving higher or lower. but as you said, they do have unlimited firepower. for instance, if there is a catalyst where financial conditions tig

for fiscal policy. >> george said the fed needs to give details on guidance when it comes to the fed's intentions with regards to bond purchases to ensure effectiveness, transparency, accountability. so what is going on here? what is the question you guys are grappling with? robert: um, i will speak for myself on that. i think we are buying still a substantial amount of bonds every month, treasuries and mortgage-backed securities. i think we can say more about what our plans are going forward, but my own view is i, right now, would be hesitant to cs doing more in that area, because i do not -- see us doing more in that area, because i do not see the benefits. i think it would add more further fuel to the financial markets. i do not see how it would help the economy. >> i have got to ask you another question that struck me coming out of the minutes. the minutes said the new outcome-based for guidance is not an unconditional commitment to a particular path. i thought you guys just said -- and you decided against it -- that the fed would not be moving rates until that is at 2% and moving

fiscal policy. >> he said the fed needs to give when iton guidance comes to the fed's intentions with regard to bond purchases to ensure effectiveness, transparency, accountability. so what is going on here, what is the question you guys are grappling with? >> i will speak for myself on that. i think we are buying still a substantial amount of bonds every month. treasuries and mortgage-backed purities. i think we can say more about what a bar -- what our plans are going forward but my own view is i, right now, would be hesitant to see us doing more in that area because i do not see the benefits. i can see how it would further add fuel to the financial markets. i am more skeptical of how much it would help the real economy. >> i have another question that struck me coming out of the minutes because the minutes said that the new outcome based forward guidance is not an unconditional commitment to a particular path. i thought you guys just said that he defended against it that the fed will not be moving rates until it's moving higher and you are at maximum employment. now, it sounds like

it will continue to be fed chairman jerome powell. the fed is the key driver of the stock market.hey made it clear they want to keep interest rates near zero for the foreseeable future. i think that matters more than who the next president is. if we have trump, more spending on infrastructure, if we have biden, more spending on infrastructure, the green nude deal, and taxes. that i don't think either one of them are going to get a recession. i am bullish on the market. vonnie: always fun to chat with you. bond jolanta, ed vigilante, ed yardeni. theng up, preparing for final debate between the president and joe biden. a lab report from the debate location -- live report from the debate location. this is bloomberg. ♪ vonnie: this is i'm vonnie quinn. --bloomberg markets. i'm vonnie quinn. president trump and vice president joe biden face of the final time in tonight's debate. we are joined by kevin cirilli live from the debate site in nashville. our people lining up, is there prep already? kevin: i have to admit, it is a much different vibe from the previous cycle. you don't have th

erik: i want to go back to the fed and talk about where fed money is not helping. are huge swaths of the economy that are not benefiting from the fed liquidity, restaurants and hotels and small and medium-sized businesses, real estate markets. as that credit disconnect a more appropriate reflection of economic fundamentals? the disconnect is not more appropriate. what you are seeing in the industries and entities that the fed cannot reach is you are seeing reality. hurt businesses have been in their business plans are in jeopardy and their revenues are way down and their employees are at risk. company whichat a is not in the same trouble, even though its business is way down, that is not reality. that is papering over problems. saying theas been fed can provide liquidity but it cannot provide solvency. we have a lot of businesses which are inherently -- today we call them zombies. there debt service requirements exceed their cash flow, so they are eating money every day. in some cases, the treasury replaced that capital as it got used up and they stayed in business

boston fed president eric rosengren says -- sees increasing the fed's asset purchases but that is not as good as other relief packages. louisiana is bracing for hurricane delta. storm has picked up strength and is now a category three with wind up to 100 what he must power. it is expected to slam into an area of louisiana still recovering from hurricane laura. companies are shutting down almost all of the oil production gasoline and also

the commerce on the treasury what about the fed's own tool kit?ty? we'll look at all of that next. >>> and travelers managing a gain of just about 1%. upng iba ia s ckn cole ness it's a thirteen-hour flight, that's not a weekend trip. fifteen minutes until we board. oh yeah, we gotta take off. you downloaded the td ameritrade mobile app so you can quickly check the markets? yeah, actually i'm taking one last look at my dashboard before we board. excellent. and you have thinkorswim mobile- -so i can finish analyzing the risk on this position. you two are all set. have a great flight. thanks. we'll see ya. ah, they're getting so smart. choose the app that fits your investing style. ♪ car vending machines and buying a car 100% online.vented now we've created a brand new way for you to sell your car. whether it's a year old or a few years old, we want to buy your car. so go to carvana and enter your license plate, answer a few questions, and our techno-wizardry calculates your car's value and gives you a real offer in seconds. when you're ready, we'll

. >> it all comes back to the fed.he fed is very concerned about the outlook. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: from new york and london, for our audience worldwide, good morning, good morning. this is "bloomberg surveillance ," live on bloomberg tv and radio. alongside tom keene and lisa abramowicz, i'm jonathan ferro. we are -1%. bonds are bid this thursday morning. it is risk off. tom: we are going to go to gabriela santos in a bit to talk about the reframe of investment. the news flow today is absolutely extraordinary. i know lisa is going to touch on this. can we all focus a moment on 800,000 in claims at 8:30? what is still involved in our politics and our markets is a labor economy that is, to be polite, fragile. jonathan: secretary mnuchin throwing some cold water over that. we need to talk about the new restrictions across the continent in europe. the economic recovery in europe was already fragile, already stalling. these restrictions will make

that is a lot of fed speak going on and of course -- >> focus on the fundamentals, right?solutely. but it certainly adds some possibility of uncertainty with the markets when so many fed presidents speak so we'll see what they have to say today. >> so what do you focus on obviously the political drama, covid, the president, the fed, what is key to you, what do you look at every day? >> well, i think if we start with the economy, we're probably going to get a really good number for gdp growth in the third quarter. that will come out later in the month. so that is good. but it is also a backward looking indicator. and unfortunately, in the second quarter, only 53 of the 500 companies in the s&p 500 gave any guidance so that is continuing to provide uncertainty going forward. the economy does seem to be improving though if you look at a number of indicators, you know, certainly housing and nonfarm payroll, unemployment, consumer confidence. and probably the most important thing right now, the fed will continue to print money until they reach their dual mandate. and that won't

why is the fed so vocal right now? as it relates to politics and obviously pushing hard for fiscal, but these kind of comments for me are bizarre. i think we don't know where fed policy is going. >> you know, i think they know what they want fed policy to be. they want no rate hike for three years. they want everybody to think the stock market is up and it has nothing to do with the fed, that there is no stimulus push for monetary policy to push the market higher. i think what their fear is that it's somewhat out of their control. yeah, they condition sincere, but if a set of circumstances, inflation, manifests itself in '21, they'll have to change course, so i think they're kind of concern that things are a little out of their cele they're just guessing, that they think they have a hand in controlling the future and they're hoping their guesses are right. >> hey,jim, you want inflation hit a 37-year high or whatever, so what makes you thing one more stimulus bell, whether it's a skinny bill now, and then an administra

but we also have the fed meeting election next week and payrolls, and the fed can really do a lot toe market just by saying it has investors' backs. jack: let's just hope we actually know who the next president will be are. jack, ben mentioned tech stocks. it was pretty incredible. i mean, all the numbers kind of rolled off good, it all sounded great, and then the market just took each stock out to the wood shed one by one. >> yeah, the numbers were good. hey, jack, quickly, i just want to nominate carlton for employee of the month. [laughter] because last week on this show carlton pointed out the numbers were good for snap, she thought that that looked good for pinterest, and this week pinterest went bananas after earnings. the stock was up 26%. i want to give an atta boy to carlton, whatever an atta boy is for laid duhs -- ladies. [laughter] >> thank you. >> amazon's getting ready for a huge holiday quarter. facebook had a big beat, but it did have a cautious outlook. i don't think investors loved that. alphabet beat across pretty much everything, search, youtube and cloud. now, ap

kathleen: he said the fed needs to give details on guidance when it comes to the fed's intentions with to bond purchases to ensure effect -- effectiveness. what is the question you guys are grappling with? robert: i will speak for myself on that. are buying a substantial amount of bonds every month. treasuries and mortgage-backed securities. i think we could say more about what our plans are going forward, but our own view is i, right now, would be hesitant to see us doing more in that area because i do not see the benefits. i could see how it would further add fuel to the financial markets. i am more skeptical how much it would help the real economy. kathleen: i got to ask you another question that struck me. the minutes said the new outcome-based forward guidance is not an unconditional commitment to a particular path. i thought you guys just said -- you said it against it that the fed will not be moving rates until inflation is at 2% and moving higher and you are at maximum employment. now it seems like there is some sex ability there. was this a compromise that had to be reached fo

julia: a clarion call for more stimulus from the fed chair. that is not new, but it is particularly overt. he sounds more worried about the outlook. i think reflecting two things. one, the flattening in the data momentum is still positive, but it has flattened out. he noticed and acknowledged that more clearly than he has to date . and i think the prospect of no fiscal stimulus are more acute now than they have been, and i think that really worries him. monetaryhe point that policy works together with fiscal. , andeed the fiscal support together they can support the recovery. by itself, monetary policy can't get the job done. alix: so does d.c. listen? julia: i think we are so tangled up in politics and division right now, i don't think so. i think the bar for getting something done before the election, which is less than a atmosphere i made an that is fraught with tension, i think the chances are more than likely that it gets kicked to after the election, and then we various political scenarios that will lead to different fiscal outcomes, wit

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

off and sustainably much higher fed funds rate. will be stuck at a low rate. and as it becomes apparent, you will see yields stay in this zone, and 80 basis points being the top of the range for the 10's. tom: on a portfolio basis, what is the pressure to go outside full facing credit and go into high-yield?redit or robert: i think you definitely need to avoid the hotspots. spreads in many areas, whether you are looking at clo's or european peripherals have recently widened out, there are really good spreads, they are not where they were at the end year, and in many cases, they probably should be. i think the equity markets valuations are high. their pe's are high. cash balances investors have our high. it has become apparent that you will see investors creeping out the risk spectrum, supporting high-yield and you will have strong outperformance from spread products despite the fact that we have already had a really massive recovery. which brings us to 4:30 p.m. today, which is looking at the latest reports from the fed balance she

bloomberg spoke earlier to the dallas fed president. have a listen. >> i think the fed can do more.re we will look at all options. those are not substitutes for fiscal policy. we know stimulus can help a lot. it showed up in the jobs data in canada, regaining almost double what was expected in terms of jobs gained, putting us on track for job recovery. there is a lot of uncertainty ahead. the chief canada strategist joins us. in terms of where things stand today, give me your level of optimism about whether we can continue these gains. we are expecting a second wave in canada. we expect to hear about the restrictions and hotspots for covid. >> the simple answer is we cannot continue these gains. two more months of this and we would be above job levels from february which would be encouraging but naÏvely optimistic to expect. print.s a very strong degreestill have a fair of confidence in canada's recovery. vonnie: they are saying canada is about to enter a second phase of coronavirus and this is dangerous. how much more stimulus will be needed? >> i don't think we are likely to see m

. >> it all comes back to the fed. the fed is very concerned about the outlook, whether it is l- shaped or u-shaped. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. day.i day -- what a 5, 6, seven major stories, are driving us forward. simply an open question with all that is going on, what has your eye this morning? jonathan: the italian bond market. i know that feels a bit off the beaten road, but right now rallying aggressively over the less capital weeks. look at the spread of btp's to german debt at the moment. it is about 20 basis point. that was about 280 earlier in the year. that is one to watch in the debt markets. tom: bond price up, yield down. what is the why? is it a flight to quality? jonathan: reduced redenomination risk, i am not sure we are completely there yet where we can say that this market now trades like a proper sovereign. what that means, we used to question how long some of these countries would play into the euro zone. the

morgan and all the banks in this fed has been soaking up all the bad debt that had they kept on their balance sheet these banks would have had to declare insolvency. and as a result america is now losing out in the global geo political race to china i think there's a direct connection it's a direct connection and now we're at a stage where frankly we also broke that point. dollar on the show you know resurrect the point now in history where the central bank is kim la bella out itself if it's the only boat in the water in other words america sprung a leak it's sinking i'm geopolitical stage to china and to bail itself out it's it's trying to. you know shovel the water out of the boat then they put it back into the central bank right so they're there doing this that's how they're bailing themselves out and of course are sinking again we've talked about this in previous episodes it's just an inevitable thing it's not like if it were france who are the empire right now they would be doing the same thing if it were brazil they'd be doing the same thing this is the inevitability and what we

sonal: i think the fed currently plans on sitting it out. but i believe that if the facts change, the fed will change. we are looking at the dot plots, taking comfort in the fact that there are no rate rises in the next three years. however, the fed has given itself enormous amount of flexibility. we don't know the look back period, but there are lots of degrees of flexibility for the out, andrtainly hold then allow the market to start pricing in some move slightly faster than the market is currently anticipating, based on plots. of course, this depends on economic outcomes. if we see more lockdowns with social distancing through the whole of next year, we are looking at a completely different scenario. the fed is on hold, i could see high yields -- we could see credit spreads blow out. maybe not going all the way up to the thousands because the fed would step in, but we could go through 2021, we saw a re-imposition of very strong social distancing and lockdowns instead of a dominion ration. the market is not position for uncertainty. jonath

that the fed would try to do something. i think markets are supported here. the election is sort of this existential risk, but not really to the extent that we have a clear victor and that we can move forward from there. as we know, once policies are clear and direction is clear, you can invest. jonathan: great to catch up. let's hope we get some transparency and clarity soon. speaking of chairman powell, substance of the message, not new. not different. the delivery and the boldness of the delivery yesterday, that is what got my attention. at some point, the fed chair starts to sound a little too bearish on this economy without fiscal stimulus, don't you think? tom: yeah, but the venue was the national association for business economics meetings, and you are absently right. the delivery was shockingly out front, given the history of fed chairmans. there's no question about it. jonathan: we reflected last week on the chief economist of the bank of england, that some of the fear can become self fulfilling. breachr are we goi

the fed has already ramped it up by enormous amount.yone really understand what the fed balance sheet is anyway? probably not most people. if they take that number up sustained chili -- up substantially, we doubt it. how much of a rate increase on the backend could the fed tolerate? we think if it is for the theht reasons, if covid situation improves, the fed might be perfectly content to see the 10-year treasury yield go up to 1% in a matter of a month or two. that probably wouldn't phase it a lot. it would have to be a more prudish is reason than simply -- more pernicious reason rather than just improving covid. lisa: i wonder, which asset class to you think is being bolstered the most by the fed ongoing intervention -- by the fed's ongoing intervention, and central bank's around the world? michael: we are sitting here at 10-year treasury yield at 68 basis points. since then, bonds have been zero. equities have gone on fire. it seems to us it is pretty clear, it is equities moving right down the risk curve. equities, high yield. the r

. >> the fed has a lot of upside to accelerate. i think they are going to maintain this pace. >> we need support for the economy both from monetary and fiscal policy. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. good morning, everyone. bloomberg radio, bloomberg television worldwide, good morning. 11 days to go on the election. what are we trying to do? we are trying to get through friday. this is a serious time, a serious debate last night. this pandemic has worsened worldwide. the challenge of a $3 trillion deficits. the civility of last night was noted. jonathan: it was civil. it was muted. but stark differences on the outlook, particularly over covid. the president promising a vaccine within weeks, and biden focusing on the failures of the administration and the winter ahead of us. the vice president talking about winning hope over fear. that really goes to one of the themes this week we haven't talked about, which is the partition of economic america. lisa: the idea that the jobless

in register to intelligence and former fed insider danielle de martino booth and managing director of the market gauge group and author of the bestselling book plant your money tree a guide to growing your wealth and michelle schneider thank you both for joining us today danielle i want to start with you here now that it looks like another relief package is not going to happen before the election unless something miraculous happens. here what will be the impact in the near term for the u.s. economy and markets. well you know it's interesting and there is a new gallup poll out today that showed that american the amount of money that they're going to be spending over the holiday season which is critical given that the back to school holiday shopping season was weaker than it would have otherwise been but it showed that the amount that americans are planning to spend this holiday season is going to hit a 4 year low and that is obviously before gallup took that poll that survey before we've seen this latest setback in the stock market if this is to continue then they'll even be more of pr

it's something that we're studying and the fed -- really, this is a decision which is much with fed as with treasury. the fed has a working group that is looking at this and studying it very carefully, a domestic working group. they're also part of an international working group looking at this question, as is treasury. and the fed is even partnered with mit to do some research as sort of the technology behind it. so there's a lot of work going on behind the scenes. you know, the short answer is, there have been no decision yet. i think, you know, the pros are-- listen, there are clearly efficiency benefits and cost bert benefits to using a distributing letter. and it's important for government to embrace innovation and not be scared by it. that said, there are, you know, a number of concerns and things that have to be studied to make sure, if it is done that it's done in a responsible way, i mentioned a few of these in my remarks. you want to make sure that you're not-- you're making it easier for illicit activity to occur. you want to make sure that you're not threatening financial s