to have that happen you need fdic and treasury involved.ecause these assets are not liquid, and they may pay off ten years from now. i don't think you're going to get a private seller without the treasury department and fdic being actively engaged in helping liquidity with these treasury bonds. >> you know that's not happening? >> whether they're -- i think they need to be engaged. they say they're engaged. theyresolve this by monday morning and i think the wae is opleill have acc t accounts. the bargain in our country been fdr, investors and shareholders lose. but the depositors are protected. let's talk about who these depositors are. they're not just the payroll companies. these are climate startups, these are startups that are helping cure cancer. >> yeah. >> these are companies in the wine industry. these are companies that are dealing with a.i. and defense to keep us ahead. there's 50,000 of them and employing americans across the the country. they didn't take risks. they just had their money in the sfwhoonk the president apparently s

to this day, treasury has provided no public answers, they have treasury commitment to invoke woke, racial, and climate politics in our monetary policy and our tax codes. the treasury department is woefully falling short. i hope our discussion covers these topics in more and productive way finally getting answers to the questions the american people have been demanding. i'm pleased to recognize rankin memberrom massachusetts for his opening atements. >> thank you, mr. chairman. we want to welcome the cretary to the ways and means committee. as is always the case, it's an honor to have the treasury secretary here. >> when secretary mnuchin took my phone calls he promptly appeared before the ways and means committ as well and i t with him regularly t diuss policy. there is much that can be accomplished wn theameras e not turned on. secretaryellen is onef the brightest, most accomplished policy maker i've known during allf my years in government. she's the fst person in american history to have led the white hse economic counci ofadsors, the feral rerve and the treasury deparent and at the hi

alix: you said on treasuries safe haven asset. our treasuries a safe haven asset? basis point move in two days does not seem very safe to me. that is part of the ecb problem. pooja: totally. svu will start setting treasuries because that is what they how those assets. i think because of what we have seen in the oil crisis where barrels of money just goes into treasury whenever there is any threat. i think the key is that if markets start pricing in more and more cuts from the fed, treasuries will be a safe haven asset. that is what the move has been. we have had certain banks actually looking at no hikes from the fed as well as adding in more cuts. we could see that actually continuing in treasuries. guy: can i just ask you about the gilt market? if i was thinking about a central bank already thinking about a pause, it would be the bank of england. do you think what we have just seen mixed at almost a certainty and if so, what does that mean for guild pricing? pooja: i think in the u.k., we are basically tracking the moves in the u.s.. the markets actually put in h

treasuries and other good bonds.quite a serious matter and authorities will need more time to dig in and reassure everybody the system is in good shape. haidi: i don't know if you would call it a contagion -- i guess asian financials falling in sympathy. do you think that is the end of it? we are hearing from national australia bank that they are assuring the contagion effect will be small. it is an idiosyncratic story in so many ways. mark: i think a lot of people would like to believe it is a one-off thing and that may prove to be the case. the u.s. authorities will not be jumping to that conclusion straightaway because this would have caught them blinds bite -- blindsided at the speed this happened in the direction from which it came. they do stress testing and somehow this was not picked up in the stress tests, so nobody jumped to the conclusion this is a one-off until they are absolutely sure and it's going to take a bit of time before they can say no other institution is at risk in the same way as svb. shery: i

the 2-year treasury is 4.86% 30-year treasury is 3.94%.in bond yields isis moving back to mortgage rates. the average rate on a 30-year fixed rate mortgage is above 7%. compared to 4% the same time a year ago you see that big move higher as the fed kicked off that rate campaign the housing market is focus with those rates. a number of housing names are getting hit hard dr horton and lennar down between 7% and 9% the last month. watch the home builders and manufacturers. let's check on oil prices as well u.s. benchmark wti crude still below $80. that is off roughly .50% ice brent crude is $84.33. that is off 42 cents about 1.5% gain for natural gas prices at $2.80 btu. >>> let's check on the top stores with pippa stevens. >> dom, arm is rejecting calls for a dual listing for the ipo and choosing only to list in the u.s. the softbank group owned by chip technology company announced it would make the u.s. move only this year. it is the best path forward for the company after holding talks with british and regulatory officials. the uk had been

so if i pay $100 for a treasury bill and the market goes down and the treasury bill is now worth 70. you do not market down he keep it at the amount you paid for it. that really solved a lot of problems because the banks naturally have a mismatched look. and if they don't, they are not doing their job. they are taking peoples short-term money from people and making long-term loans to other people. and that is what they are supposed to be doing. if you force them to mark the assets for market they go broke. so, that rule has changed. and we stop, we looked -- booked assets at cost. and did not write them down unless there was a permanent impairment in the value of the asset. so if you have a long-term corporate grande -- bond and corporation. the price goes down permanently market down. you say it is never going to be worth it anymore but if it is just pocket variations you do not require it to be marked down. they change that in that financial standards. they change that in conjunction with the sec. around 1991 as i recall. i was adamantly opposed to it wrote articles and it was righ

those treasury bills aren't going to -- even if the treasury bills are still at the bank in some kindm, that's not going to be money the bank can use. i think it's going to be less and less money for the banks to lend. and i think it's going to show up in slower numbers. i think we'll see now. i still don't think we'll go into recession by any means, but i do think the fed is going to have to rethink what they're doing. this is really what lail brainard was saying before he left over the last month, that something in the system was going to break. this is the first thing it's broken. the fed has moved too far, too fast and people can't -- you can't adjust that quickly. >> when do you think the first cut is? >> i think the first cut probably comes in july. you know, just looking at the numbers, i mean, two days ago you had three cuts built into december. when i came in right before the show, i looked, and it was probably 1, 1.5. it changes constantly. look, i think the range -- >> what if inflation doesn't come down enough by then? >> i still think the stability of the banking system i

the first wanted to leave the treasury department before the treasury and federal reserve she was a fellow at the brookings institute. she served as president of the american economic institution. she was a founding member of the leadership council. we welcome you secretary ellen of please proceed. sec. yellen: members of the committee, thank you for inviting me here today. i would like to start with an update on the recent developments in the banking system. this week the government took decisive and forceful actions to stabilize and strengthen public confidence in our financial system. first, we worked with the federal reserve and fbi see to protect all depositors of the two failed banks. on monday morning customers who are able to access all the money in their deposit accounts so they could make payroll and pay the bills. shareholders and debtholders are not being paid by the government. no taxpayer money is being used or put at risk with this action. deposit protection is provided by the insurance fund which is funded by fees on banks. second, the federal reserve is providing additiona

the first wanted to leave the treasury department before the treasury and federal reserve she was a fellow at the brookings institute. she served as president of the american economic institution. she was a founding member of the leadership council we welcome you secretary ellen of please proceed. sec. yellen: members of the committee, thank you for inviting me here today. i would like to start with an update on the recent developments in the banking system. this week the government took decisive and forceful actions to stabilize and strengthen public confidence in o financial system. first, we worked with the federal reserve and fbi see to protect all depositors of the two failed banks. on monday morning customers who are able to access all the money in their deposit accounts so they could make payroll and pay the bills. shareholders and debtholders are not being paid by the government. no taxpayer money is being used or put at risk with this action. deposit protection is provided by the insurance fund which is funded by fees on banks. second, the federal reserve is providing additional s

has treasury -- as treasury finalizes rules, will you insure that china's solar industry can't profit from these credits without developing a genuine domestic supply chain. >> >> yes. the purpose of, one purpose of ira is to make sure that we reduce our dependence on china and have a strong domestic capacity. and the features of the law guarantee that, and we're working on guidance to implement the laws that will lead to that result. >> thank you. ohio has the biggest solar are, about to have the biggest solar manufacturer in north america. and, mr. chairman, i, you know i can't come to this committee when secretary yellen is testifying and not bring up the child tax credit. i want to thank you again for helping us. i mean, it was not unprecedented, but remarkable perhaps. we passed thatas bill in march, the president signed -- president biden signed it two years ago, signed it quickly. you got it up and running, the child tax credit, by july. 60 million children and their familiesth benefited from that. it was so important. we heard some on the other side that find all kinds of made-

now treasury secretary. liz: exactly. >> now treasury secretary.re not really talking to each other, can't coordinate their messaging has rattled the market once again. so what this shows how fragile the system is right now as really, again this is a banking crisis. it is a different crisis that when we got 13 or 14 years ago because as you mentioned this is really, what, assets money good has assets, prices are lower because of repricing interest rates. this is not as much of a credit concern. what you have is mismatch of depositors. essentially the other side of the equation which is their asset base. so ultimately what the reason that we had been buying duration is that we were getting all of the signals of a classic recession. we're starting to materialize -- liz: can i ask you 15 year 30 year what duration? >> so the duration we've been buy something a split between the 10-year and the 30-year parts of the curve. 15 is not just as liquid, nor is the 20 as well. what we've been able to do, by doing that it is not just because we want to make an

the treasuries, if you are looking at the 10-year treasury, 3.354% the 2-year treasury is really the place to be paying attention. 3.755% i have to say if you were looking at this number last week, first of all, on friday, the 2-year treasury at 3.846%. a week earlier, the friday before, the 2-year treasury closed at 4.588% a drop of more than 75 basis points from a week ago friday. if you are looking at what happened in asia overnight, where trading is active right now. nikkei is off 1% the hang seng is down 2.6% shanghai off .50%. in europe, where early trading is taking place, things are mild just a flatline. dax is off barely. spain ibex down .25% then bitcoin has been steadily rising for more than a week. since friday, you see the big gains. up above 28,000. >> gold, too >> gold is up. $2,000 >> again, all of this happening, andrew, as the big news is b breaking from yesterday. >>> let's talk about it. big banking news ubs buying credit suisse pledging a loan up to $8 billion to support the takeover. credit suisse shareholders will receive one ubs share. the deal will trigger a

treasury still dispenses the funds? >> i don't know, off the top of my head how often and how recently the funds have gone now. we can certainly get you follow-up information on that. >> look, we got somewhere else. we gotta figure something out. if treasury is sending money now and they are our requirements for information, the recipients aren't getting that back to treasury, why are we sendinghe money? it's a simple thing >> if i give you $10 and i say, hey. i need this. you don't do. it you don't get two more dollars from me! that's just a personal thing. we are quick, wrapping up, mr. turner, mr. shoemaker, out and know if you can comment, to your areas, labor or sba, do they keep track or have an accounting of money going to deceased individuals? >> we have 200 and $67 million. >> billion or million? >> billion. >> oh you almost hit me with that one. 267 million dollar scares me to, you know? >> we identified -- 45.6 billion dollars that wi point of what we found in our review of those four areas. 267 million of th

>> we have seen examples and. >> treasury still dispenses funds?> at an off the top of my head how often are recent. and we can get you follow up information. >> if treasury is sending money out and they are having requirements for information and the recipients why are we sending the money? >> if they give you $2 million and you don't do it then you don't get more dollars from me that is personal. >> and do those labor or sba have accounting of money going to deceased individuals? >> with $67 million. >> billion dollars. >> million dollars but 45.six of what we found in our review of those four areas and 267 million were deceased individual. >> 45 billion went out i know i'm slightly over mr. chairman can i ask indulgence for clarification. >> as any member would give that to clarify questions you may continue. >> i appreciate that. >> just to clarify $45 billion through the auspices of the department of labor that have not gone out of which 267 million has gone to deceased individuals quick. >> yes. >> and potential fraud but yes. >> thank you so

the secretary treasury is not engaged and -- they are politicians. the fdic is independent and the fed is independent. these decisions ought to be made by experts who are independent from the political system. the fdic has a bipartisan board on purpose. the last problem we had in 2008 and 2010 where folsom was the secretary of treasurer and he took over he took charge. a proposed $750 billion bailout bill which was nonsense. they never should have proposed that. i think congress should not have enacted it. it was a terrible idea to dump $750 billion of troubled assets on the government. instead of letting the fdic and defend figure out how to deal with it. that is where this thing went wrong in 2008. i've said this all the time i wrote articles against it and testified against it. i said the program was a terrible program and it was going to diminish the authority of regulators and cause a lot of needless expenses on the taxpayers. that is where we went wrong. we are still in that mode. the secretary of treasury should not be talking right now about

park in treasuries., we contend this is not an issue for the banking sector. if the fed raises rates down the line, you see inflation coming down. multiple reasons for the fed to stop hiking which is good for the economy down the line. >> you feel inflation is coming down. we will get a read this week with the pce. with the turmoil in the banking, do you believe the pce report is as important to the fed as before march 10th? >> it has not gone away. it is not something they will ignore. that is a closely watched number. inflation has come down since october. we had the january reading which was higher than expected. you saw the markets saying inflation is not coming down fast. it is pretty normal. as much as we like inflation coming down from there, it is normal to have fluctuation which we saw in january. it is continuing to come down afterwards. we are hopeful and continue to see the data. the fed will watch that and we need to see that continue to come down. a lot of the reasons is hopeful to continue

delmar, acting inspector general at the department of the treasury, and mr. shoemaker, deputy inspector general at the sba small business administration. so mr. shoemaker, i understand you got this promotion six months ago. soso congratulations. we are delighted that you are, also understand you are appearing in place of mr. ware, the inspector general sense is that a memorial service for his grandmother. i hope that you would convey to him that your presence today is appreciated and that we wish them him the best in this time of need for his family matters. with that i would now like to recognize the ranking member, my friend mr. mfume, for any opening statement that he would choose to make. the gentleman is to recognize for the purpose of making an opening statement. >> thank you very much, mr. chair. i want to thank you for attending this meeting. it agree with what you said earlier, that our purpose here is to find out what went wrong and make sure it does not go home again. i want to add my thanks again to the three of you, as a chairman just mentioned,

so they had to sell treasury's or was a loss. and that actually cost a cascades, so that more and more investors, one of their money, the bank head to sell more of the treasury's for a loss. and that was this run on the bank so that eventually a regulators had to jump it. could this at us only event at the moment? could it actually spread globally? i mean, it's all about trust. so if trust is lost, we could see that in other places, definitely as well. and then also that interest rates are on the increase is not justin american, a phenomena. so what i hear mostly from the industry and that's why i said at the beginning, don't fully panic. obviously the, the biggest financial institutions seem to be safe. so that's at least what i'm hearing, but the next couple of days. so definitely will be very interesting. and if trust is lost, if more people stop taking the deposit, so from their banks, i mean that could have a, in effect, definitely not just in the united states, but it could theoretically effect pretty much all of the go sou

i have question treasury -- question treasury secretaries. never have i asked a yes or no question because i know events shift. the people who have had the job have been competent over the years. could you talk about the child credit and the new jobs that were created this morning? sec. yellen: yes. the child credit. so, the child tax credit was expanded in the american rescue plan. that was important because the pandemic, especially hit low income families very hard. it had a dramatic effect in lowering child poverty, according to many studies. it really helps families -- helped families. many families were able to use the child credit to get back to work, to help with childcare. the majority of families that received the child tax credit for working families. others were seniors taking care of a grandchild or sometimes children with disabilities. it had a dramatic effect in hel ping families that were impacted by the pandemic, that the president believes this is something that should be in place permanently in his budget. it recommends rein

they own all these treasuries and massively under water in quantitative easing. the fed doesn't have any money the only response to crises right now is printing money and that's why i think we have a steepening yield curve or deinverted yield curve and don't have the long bond going up as much as the 2-year today. >> you mentioned one of these so-called carry trades i suppose. marco from jpmorgan sent out the note before you came on and i want your reaction quote, there are many carry trades they can't all be bailed out. when the economy is slowing down and financing costs are rising, all these implicit or explicit carry trades are pressured to unwind leading to an end of the cycle. we believe we are in that stage and remain negative positioned on risky asset classes as such, we maintain a defensive tilt in our model portfolio, increase our underweight to equities versus raising our cash allocation what's your reaction to that comment? >> i think he's on to something when he says you can't bail out every carry trade. we've gone through so many bailo bailouts in r

the two-year treasury wasxd at 5.10% and now it's at 4%, so it's still a big drop.easury rate starts to go back up. go back up. i don't see it becaus has woken up to thisx

are treasury notes and bonds. those are conservative investments and as safe as you can be. but for a company like this, leveraged to the point that the it needed cash past to cash out of those, it would be underwater and, obviously, you know what cascaded since. federal regulators have said and janet yellen, the treasury secretary the, has emphasized that this is not widespread, they're monitoring the situation, and the fdic will back depositors there. we have gary kaltbaum on the significance of what's going down. and what from what we -- from what we hear, gary, we also have with us douglas are holtz-eakin and susan li. so, gary, on that notion this is isolated to this bank, what do you think? >> well, they tell us it's isolated, but just remember they've also told us everything's fine and there are no problems out there, yet the 16th large bank is now being taken over. and i always worry about the word termites, is there anything else out there? just remember, banks are as good as deposits that are with them.

subadra: i still favor treasuries, high -- shields.s i was mentioning earlier, there is a deposit from the smaller banks into the bigger banks and other sources of investment that are perceived to be safe so it is not unusual in a quality-type scenario for money to flow into money funds or cash but broadly speaking if you look at her bond yields are across the curve, you are getting these are returns to owning treasuries. in this context it makes sense to either be looking into treasuries for high-yielding investment grade assets for returns because if you want a play, bonds is where you want to be. katie: up next, the final spread, the week ahead. we discuss it. this is really yield on bloomberg. -- real yield on bloomberg. ♪ sfx: [soft beach sounds] c'mon ref, that's a foul! jay? jay's back? gimme a time out. huddle up! i call the time outs. didn't expect to see me so soon, huh? well, i invest in a fund that fuels innovation, like next gen video conferencing, and when i saw your defense in the first half, i had to step in! anyone can

treasury?ice does not have oversight of the irs but i agree the extent where tax information can be put that it is a specific exception to have that useful affect. >> we are not giving them anything that that report is sufficient to subpoena the records and that this legislation that was signed into law word accomplish the objective into his credit the president is trying to achieve the same objective back in front two pages if he sciences into law i guess we have to have hiring a bunch of prosecutors but with $100 billion and there is 50 or $90 billion and all americans can agree if $100 billion l was stolen through the ppp loan program adding these people need to be held accountable. sba has the data. and then to deliver this report to the attorney general this is not hard to do . . . . at the end of the day we were driving 90 miles an hour down the road and i will say sba in the government brought my faith back into humidity these people were working enormous amounts of time to get the neede

treasuries, but not t bills because those are shorter terms. but let me say this, i think what happened, and we'll only know through history, is some prominent vcs started telling their portfolio companies to pull their money out the reason that they were saying that is first of all, it may have been the crypto bank that went under, but i think more likely the fact that svb said they were out raising capital and people were worried they weren't going to have access to cash so vcs rushed to tell their portfolio companies to head for the door most did not do that, i want to be clear but enough of them did it and svb, because they were in a quiet period, couldn't speak up. and as a result of not speaking up, panic ensued and ensued in less than a day. >> very interesting. fascinating story, a screenplay, whatever it is going to be deirdre bosa, thank you very much mark, thank you as well. >> thank you >>> what a day what a weekend coming up, fallout from silicon valley bank being felt in the bond market. the ten-year is down 20 basis points, down

department -- of interest to the treasury department. you give your quote, absolute word to keep uupdated on treasury findings about private taxpayer data that was improperly shared from the irs to pro-public. it's been almost two years since that breach was made public and their administration still has not provided a meaningful response. you n answer that let me move on here. i want to ask a question about the actions taken by the administration short of silicon valley bank and others. treasury issued a joint statement that stated, no losses will be borne by the taxpayer. do you stand by that statement? sec. yellen: yes. >> want to stress this is something deeply important to taxpayers and something i and a lot of my colleagues will be strictly holding this immigration to account on. in the ira got additnal $80 billion, six time the annual budget of the irs, and 87,000 new employees. the request of this year's budget is for an additional 15% increase somewhere on the order of 29 billion dollars in additional we still do not have the pl

they actually invested in some safe haven like us treasury . so that's what, for example, silicon valley bank did. so now all of a sudden the need of the customers, a lot of silicon valley start up, they needed money and they went to the bank that give us our money. so they had to sell the treasury with a loss, and that actually costs a cascade. so that more and more investors wanted their money, the bank had to sell more of the treasury for a loss. and that was this run on the bank so that eventually regulators had to jump it. could this us only event at the moment? could it actually spread globally? i mean it's all about trust, so if trust is lost, we could see that and other places definitely as well. and then also that interest rates are on the increases not justin american phenomena. so what i hear mostly from the industry and that's why i said at the beginning, don't fully panic. obviously the, the biggest financial institution seem to be safe. so that's at least what i'm hearing. but the next couple of days definitely will be very intere

treasuries is something to pay attention. 10-year treasury is 3.556. 2-year treasury at 4.2 crypto pricesny in the last hour. bitcoin had gone down and was only saved by the government >> with signature bank stepped in and taken care of. >> and circle and specifically stablecoin pretty interesting. >>> the fed rate hikes are front and center as regulators try to figure out how to manage the silicon valley bank failure. goldman sachs said yesterday that it expects the central bank to halt rate hikes joining us now is former fed vice chair roger ferguson. the former president and ceo of tiaa and now a fellow for international economics with the council on foreign relations he is, of course, a cnbc contributor. roger, let me ask the measures taken by the fed and treasury. are these enough to stem concerns about other banks at this point >> obviously, time will tell i certainly hope they are enough to stem concerns what i find most interesting is the easing of the terms around the discount window through the special new bank term facility the fact that the fed is willing to basically take as

treasury steps inside silicon valley b

moves in the treasury markets, sharp. these are some moves that we're seeing, ten-year below 3.5% right now. >> thank you for being here. >> great to be here on a day like today see you friday >> join us tomorrow. "squawk on the street" begins right now. ♪ >>> good morning, welcome to squaw "squawk on the street," i'm carl quintanilla with david faber and jim cramer the surprise drop in february ppi sends the two-year yield down to 3.88%. market pricing in a full point of cuts. our road map begins with fresh seasonal sector fears. ces's biggest shareholder ruling out further backing. >>> plus, wholesale prices did post an unexpected february, and retail sales fall. futures, of course, as you may have already seen, are pointing towards sharply lower open >>> we'll also spend a little time talk about blackrock larry fink's letter in which he warns a third domino could fall. >>> let's begin with tresh worries about the banking sector, credit suisse tumbling to a new low saudi investors say they cannot boost their shares euro

february, two year treasury yields up 61 basis points last month, 41 on the 10-year treasury yield uphat a buying opportunity? at one point do we see deppe buyers scoop up those yields? kelsey: i think we already are. if you look at the 10-year treasury yield, it is testing that 4% level and people have seen interest at that level. i think we see interest at that level. we continue to see people look at the bond market and say this is a good opportunity to increase your allocations. if you look across the curve, two year yields can continue to go higher. we have done historical analysis . two year yields always trade at least to the terminal rate of the fed funds at some point during the cycle which means twos are absolutely going to continue to rise, may test 5%. tends on the other hand i think are going to be more sticky. along end yields are not going to rise to the same extent as they did last year. what we are seeing is that correlation between the two year yield and the terminal rate and 10 year yield and terminal rate. the 10 year yield and terminal rate correlation is declinin

we wil start with treasury. mr. delmar. >> my oice as i have oversight of t irs, b that said, i agree with what mr. horowit said abo the extent of stion 6103, usage which tax formation cane put. bu if your legislation is a a specific exction to the general prohibition of 6103 i'm sure it wouave a useful effect. >> again were not giving them anytng other than this repor and theeport would be sufficient to go a subpoen of theecords to then build aase tohen start aestingeople. seem to mehat this legislation, if it w signe into law, would accomplh the objective. iuesso his credit the president isrying to achieve the same objective picky just wants to belowld $0 million to achieve it. back in front, two pages. he decides this into law it saves 300 billion -- i i guese still have to been some money because we will have to hire a lot of people but a candidate we recover $100 billionup to an hundred windows. you alreadydentify $5 billion. if there's 50-$90 billion out there and we will recover some of it. it will cost aot o

we're seeing a big influx in treasuries.oving clients, more to treasuries in our fix funds, but this is a flight to safety, you're exactly right. stuart: are the regional banks done? that's a strong word to use, but i believe you're using it. >> yeah, stuart. small banks, regional banks are going to have a hard time keeping deposits. look, i think profitability is going to drop way down for these banks. but look, it count even matter if it's a -- doesn't even matter if it's a small bank. if there's a run on the banks and in the age of social media which is, i think, what caused a lot of these bank issues is depositors go to take their money out at once, your money is not there. this is why we're encouraging investors not on the fearful, but you shouldn't have more than $250,000 in any one bank. anything over and above that amount. treasuries, sounds like a broken record, is a good place to hold cash over those fdic limits, stuart. stuart: if we see people lining up at the doors of these regional banks this morn morning, that

the federal treasury was going broke. in fact, how will cobb, who was? secretary of treasury from georgia under buchanan in the north by december as the threat of secession was mounting, southerners were to to welch on their debts to two northern banks, which was them in a terrible spot. the north put out some bonds and federal bonds. and how will cobb, whose name was on those bonds? mocked. mocked those bonds. he said, anybody who buys this is a fool because the government behind them is going to be dismembered. and shortly after how, of course, resigned to go back to georgia and join what would become the confederacy on january, the u.s. had an interest payment due and some of the private bankers. on december 31 actually had to go in york, actually had to go door to door in a horse and carriage raising kitty of funds. and the funds were wired to washington where telegram said expressly to pay interest do january one you know no other purposes so the treasury was broke and i want to just tale about the the challenge facing the two sides as the war begin

hat their own departmental budgets, not out of the treasury?— out of the treasury?? not entirely clear- the _ out of the treasury? not entirely clear. the only _ out of the treasury? not entirely clear. the only guarantee - out of the treasury? not entirely clear. the only guarantee beingl out of the treasury? not entirely - clear. the only guarantee being made as it won't affect front line services. but i think that is not only important looking further down the line but other unions come to perhaps negotiate with the government and they might want some guarantees that there will be extra money on the line because it isn't just about pay, it is the state of public services as well. this feels like a lifetime _ public services as well. this feels like a lifetime ago, _ public services as well. this feels like a lifetime ago, we _ public services as well. this feels like a lifetime ago, we used - public services as well. this feels like a lifetime ago, we used to i public services as well. this feels i like a lifetime ago, we used to talk about pay relativities, once

treasury and his majesties treasury in uk.we are planning to do the same thing with the eu in order to make chipmunks are allies of barter we are better able to utilize these tools we needed going forward -- . >> final question for me. you of course a look at how was looked at the broader economic landscape and national economic security is more than just sanctions of course. anti-money anti-money-, antibribery corruption, cfius, comedian foreign investment of u.s. which you help oversee empty public finance, a whole range of economic tools and arenas that now form part of notches competition but even content. how are you think about that broad-spectrum and are you organizing the treasury department to look atng this moe broadlynd than just one tool for wondering at a time? >> i think russia's invasion of ukraine has forced us to look across thene entire toolkit especially the treasury department and across u.s. government to think through what we can do to make our economic strategy objectives when it comes to russia. by focu

so i'll give you a fund, fiax, this is our treasury income fund. you just mentioned treasuries.'t have to choose between treasuries or stocks. what fiax does is99 -- 98% of the portfolio is in treasuries, but if the market goes up, investors get another quarter percent each month. so you could end up getting about 3% on top of your 4.5% for the treasury. also acls is a semiconductor company. we think the market is not -- or we think the economic market is not going to fall off a cliff later this year. that is really good news for semiconductors. a name like acls doesn't produce the chips, but they produce the equipment that chipmakers need to produce the chips, so we think -- it's down this morning, we think it's a great bargain to get in so that you can have treasuries in a fund like fiax, balance that with names like acls that are elative -- relatively undervalued, and those two names will do well. stuart: you wouldn't touch microsoft, amazon, etc., etc., big tech, you're not going to teach thumb? -- touch them? >> facebook is the one i like. if you just look from a valuation

stuart: treasury secretary yellen was wrong on inflation in the past.'s saying is huge spending will not create a lot of inflation in the future. do you agree? >> she's completely wrong completely wrong. inflation is easy to define, too many dollars chasing too few goods so now the fed's policy is trying to harm the economy which will reduce the number of goods available for all the dollars printing, they will be chasing so is easy to define, $32 trillion in debt no end in sight. what's going and when the president says his budget reduced deficit, plaster the deficit was 1.3 trillion, this year 1.5. he's projecting 1.8. where's the deficit reduction? it's absurd, they liked the american public. stuart: forgive me for asking about football which i know very little, i'm told aaron rodgers lead wisconsin green bay packers and head toward the new york jets. do you have an opinion on that? >> i enjoyed watching aaron rodgers play but if he's not committed to your team, i guess it's time frame to move on, it's sad but that's what happens in football. stuart:

two year treasury yields plunging again as traders scale back rate high bets. bloomberg -- markets are such francine: this is what the futures are looking like. the collapse of good value bank was swift and brutal. everyone was in a panic about what would happen next. the u.s. and u.k. would not only sell the u.k. arm but guaranty off depositors. the question asked is what happens next for the fed. tom: here in the u.k. but also over in the u.s.. the question for investors will be to what extent are these moves particularly in the u.s. sticky masters -- measures. the equity markets in europe reflecting what's happening in terms of the steps made again to reduce the risks in the u.k. and with svb and the other bank sectors. we will zero in on the banking sector shortly. the ftse 100 off by just 1/10 of a percent. this moving across assets. pointing to the aggressive moves in these yield markets and the treasury markets in terms of the yields diversion. around 70 basis points now so that aggressive steeping we've seen across the yield curve. futures in the u.s. p

we are striving for this, that for citizens means social treasury.eans that all types of services are from the social fund. they should receive most of them, either without a declaration at all, yes, that is, on the fact that some event in their life took place. well, i 'll give an example now, for example, we are now assigning disability pensions, and the so-called monthly cash payments to people with disabilities without an application. that is, they should not go to wear any right at all, that is, it turns out the fact of the event, god forbid , the same situation happened as an offensive disability, and a social expert doctor to track a person, we receive this data and return a person's pension based on this data that we received from this information system. this is like the first example without indicativeness, a very convenient topic, and last year we already had more than 300,000 pensions. thus, our prayers were appointed in this way. and accordingly, people did not even come to us in this regard, and the second topic of the development of so