depressionera unemployment numbers says mnuchkin if we don't do anything right now.hat's being used to hammer home the point they do want congress to take some action. here's mnuchkin yesterday on the size of what it is that he's proposing here >> i know there's been some rumors of the number it is a big number this is a very unique situation in this economy. we've put a proposal on the table that would attract a trillion dollars into the economy. that's on top of the 300 billion from the irs deferrals >> reporter: all of that comes side-by-side with everything that the fed is doing and for more detail on that let's get over to steve liesman now. steve? >> reporter: hey, i want to pick up on what you're saying a senior administration official tells me there will be additional emergency lending programs from the federal reserve that are backed up by the exchange stabilization fund. i'll show you what that looks like in practice in just a second a lot what eamon javers is talk about coming from treasury could be a leverage operation using the fed's balance sheet. we ha

many one reason treasury secretary mnuchkin talked about this there's more treasury out there.what it was in 2008 because the deficit has risen. that's an issue that requires, i believe a bigger fed response. >> unless you think i'm not paying attention i did notice you used phrase full monty on a morning when you're not wearing pants. >> reporter: becky, you brought that up. >> stay with us. we'll have more. joining us jason furman harvard kennedy professor and nathan sheets who pgim fix income and former treasury official nathan let's start with you. these moves from the fed >> i think that steve nicely framed the issues. what the fed is doing is taking out the crisis era playbook and we saw that with 50 basis points in a meeting last week and we're seeing it this week with the massive liquidity injections but i think it's right to think of that as a down payment on zero rates and qe at the meeting next week. and then in addition given the significant liquidity stresses that we're seeing in markets i mean frankly it's like a meteor has hit bond market liquidity over these las

treasury secretary mnuchkin said he would like to insulate taxpayeand hav loan guarantees to bail outsn on how governments and central banks can or should move at this point. >> look, there's a lot of stuff that can be done on the fiscal side and when we're talking about loan guarantees for the airlines that ought to come out of the treasury. that's fiscal policy the technocrats can implement it but shouldn't decide it. we talked about this before. if things got really bad we would wish that we could use negative interest rate policy effectively. it's not there although if you look at markets they think there's some chance we'll see a bit of it even in the united states. but the first line of defense here is fiscal policy because you have to address the problem. there's a health crisis. airlines are, you know, going to need loans small businesses i the think this has to come out of fiscal policy, the treasury, and i think we need a significant stimulus beyond that because the healthy part of the economy that suffers and that would really be a shame because i think this will pass and we

treasury secretary steve mnuchkin spoke to house speaker nancy pelosi more than a dozen times over thursday and friday as they worked towards a solution. the republicans, the white house especially had put the payroll tax in that bill. that's something president trump wanted to happen but democrats managed to keep that out. >>> sara, let's speak about the president specifically. in all that happened overnight we also overnight got a statement from the white house about why he has not been tested for coronavirus. what have you learned from him? >> reporter: that's right. we got a memo from the president's doctor talk about why president trump at this time will not be tested for coronavirus despite his known exposure to at least three people who have since tested positive for the covid-19 virus. i want to read you part of that memo. these interactions would be categorized as low risk for transmission for cdc guidelines. no indication for quarantine at this time. given the president remains without symptoms testing for covid-19 is not currently indicated. president trump yesterday, while speak

secretary mnuchkin wasn't even pushing for that in conversations with nancy pelosi.is is central and in others he's not. >> that's exactly right. look that payroll tax holiday, maybe a month ago it might have been relevant. but from what we know and what we now know beyond a shadow of a doubt how this will affect the economy, it's not the right tool and not the right dimensions of impact, of economic impact and it leaves out an entire swath of the economy, the people who are the gig workers, who drive cabs and ubers. people doing seasonal work. people who work in restaurants. this is not going to do very much for them in the first place. it's the wrong focus all together. >> yesterday the president, part of explaining the national emergency was this website that he described to organize testing. here's what the president said about it and the timing specifically. >> the goal is helping to develop a website. it's going to be very quickly done, unlike websites of the past. there's 1,700 engineers working on it right now. >> google released a statement saying that the t

i want you to take a listen to treasury secretary steven mnuchkin commenting earlier today on the staggeringlyigh number of unemployment claims. >> i just think these numbers right now are not relevant and whether they are bigger or smaller in the short term. the good thing about this bill the president is protecting those people. so, you know, now with these plans, small businesses hopefully will be able to hire back a lot of those people. >> so, can you explain what he meant when he said the number of unemployment claims is not relevant? >> reporter: well they are relevant. people inside the white house have been bracing for these numbers to look bad. i'm not sure they thought it would be this high, as high as they were but they have been expecting some pretty ugly figures coming out of that jobless claims, that report they got. the treasury secretary who spent most of his week on capitol hill, going back and forth between democrats and republicans that worked on this legislation. they are trying to give loans to small businesses. talking about the unemployment insurance as well. these numbe

let me put that quote to you from secretary mnuchkin, these numbers right now aren't relevant.ls you a lot about the priority of this administration that we have 3 million people who are going their unemployment offices or applying online. they are going to get on average about $385 a week. that will go up under the stimulus. then they will try to figure out how to stretch that out to pay their rent and buy groceries and so when you say that's not relevant, that, in my opinion, shows the mistake in priority for this administration that they are probably frankly more concern how the cruise industry is doing than how american workers are doing. what's important to understand as staggering as those numbers were yesterday they probably even understate the reality of how bad the situation is right now because we know a lot of the shelter-in-place rules didn't go into place until after this data was collected. we know a lot of people didn't apply for unemployment. gig workers don't qualify for unemployment. these numbers will go up significantly in the next couple of weeks and there

you have jay clayton at the sec, you have mcwilliam at the fdic, and mnuchkin at the treasury there'shout being too complex, the idea of marking those loans to mark to a bank so they have capital charges why a bank can't come to a restaurant and say time-out you don't need to pay, we'll take tint, we'll take it on over five years or take it on to the back of the bank and when this is all over which is 90, 180 days, we'll worry about it then. so you need regulatory relief primarily from the sec, cap accounting, these rules which were engineered after 2008 that say time-out on mark to market, let these intermediaries then go back to people who have rent and interest no problem you're not default we won't take away your houses same thing for banks they are not on default on regulatory requirements that is what needs to happen >> tom, if that doesn't happen, tell me what happens, actually, very specifically so people who may think this is self-serving, what would happen to colony capital if that does not happen? >> actually colony capital is in great shape. about 18 months ago we started

: this is a proposal now that is coming together in real-time as we watch it larry kudlow, steve mnuchkinsident went up to capitol hill yesterday to talk to senate republicans to gauge their interest in all these different ideas they are kick around behind-the-scenes. one idea under consideration is some kind of a relief for the shale oil industry not clear what form that would just take but they are talking about it at the white house given those oil price declines we've seen in the past several days they are aware that industry might need some help they are trying to figure out how to do that, guys >> indirectly tied to the coronavirus. >> reporter: right >> the supply and demand considerations that have been going on long before the virus got out. all right. >> reporter: critics say you should go with bankruptcicy and let those guys go bankrupt and get new owners and recapitalize. >> right now still a lot of private money out there. >> for now >> some of these companies could go into a bankruptcy satisfaction with the airlines, if they go hand-in-hand. this is the conversation we're ab