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

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 sending the 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 with point of what we found in our review of those four areas. 267 million o

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

we work on climate in almost every aspect of what we do at treasury and international affairs treasury. but just to list a few things we do, one is we are trying to deliver on the climate goals of the inflation reduction act. the ira is about increasing the production of clean energy and building clean supply chains and that will try to keep us on track for the goal of reducing emissions by 50% by 2030. these investments will ask all right the point of clean energy, drive down costs and bolster energy security. we are working with the world bank and regional mvps to align them to make sure there align with the paris agreement and trying to reimagine the architecture to make sure it can reach the goals set and have greater coherence and better linkages and less fragmentation across the somewhat fragmented landscape. third, our work and successes on the energy transition partnerships are essential. they are processes where we work with high emitting emergency markets and seek to bring together different players in support of ambitious partner country transition commitments. we have seen

starting with treasuries, yields have declined further. the 10-year yield its lowest level since mid-september. that follows a gauge of service activity that suggested the u.s. economy is headed for downturn. let's bring in chief rates correspondent garfield reynolds in sydney. i would be the worst trader ever at this moment, because i would assume now is the time to be shorting treasuries because of the run-up over the banking sector fears. as it seemed like the impulse to keep buying treasuries will stick around? >> it does seem rather like it will. part of the reason is that we're moving beyond the period where one, or a couple of data points or fed species can make a serious dent in the treasuries market. we already went through powell being extremely hawkish in his march testimony to congress. the bond market said the fed reroute will continue. banking fears hit. that turned the picture completely around. since then, there has been a steady drip of poor data, especially of frontrunning the jobs data. we had as you mentioned the servic

and i even then asked for national treasury to, to intervene. so i sent that what have message to my peer and them a group more because we deal with an national treasure being our shareholder. if your cfo you deal at a higher level. and i doubt at the probably deputy director level and that's re i see my message to for asking them to please intervene. have a look, kept what's coming up. and i sent a message. they often joined the rest of my group on their walk, but the rest of my pilgrimage was not as calming as i thought that he was going to be because her head this heavy hot of what would wait for me when i came back to the office i'd like to get into that in a little bit more detail. you went to the airlines executive manager, the chief risk officer and the head of internal audit, all logical people to whom to blow the whistle. but none of them did anything. you then went to people you trusted at the national treasury, and a week later, you submitted a complaint to south africa as ombudsman. and finally, you made a disclosure to a civil right

treasury yield curve.his is to use treasuries as a hedge first in terms of if we have a credit crunch for example and also because close to 4% receive value on the long-term on treasuries because we expect steel and corn and fish to come down over the next decade. manus: let's just pick up on the credit crunch versus a credit squeeze. we have gone through a hugely volatile. -- hugely volatile there in march when money flowed to money markets among other banks and deposits dropped. what we put in the gtv lives, the use of emergency facilities at the fed, discount window is down for the fourth week in a row. let's take able to edit. this is where the debate is on credit crunch versus credit squeeze. what is the difference for you, and are you heartened by the fact emergency lending has dropped? laureline: so, is definitely good news that we have seen the slowdown, but it is still low slowdown because it is still quite large. what we see as we look at corporate markets, what you see is the dichotomy between t

and what it does is it tells the treasury to read a report. it's two separate reports, it's a list of every business that had no withholding whatsoever in 2019. that got a ppp loan. because that is clearly fraudulent. there is an exception to that. any business that they're high of 2019 was for acts. the ppp loan they got was for x. high mountain for 19. we are giving them some breathing room. i'm not trying to get people out of clothes i'm trying to get people that just stole. that seems to be a pretty good plan. what are your thoughts? do you think it is good legislation? >> well who wants to start, we will start with the treasury. >> my office does not have oversight of the irs. but that said, i agree with what mr. horowitz said. the extent of section 60 103, these -- but if your legislation is a specific exception to the general prohibition, 60 103, i am sure it would have a useful effect. >> again, we are not giving them anything other than this report. that report would be sufficient to go subpoena other records to then build the case. t

we welcome the fact the treasury are not going — welcome the fact the treasury are not going to deductrspend from last year that will offer some relief for government departments though we note there will not be any further flexibility— note there will not be any further flexibility this year either in terms — flexibility this year either in terms of— flexibility this year either in terms of barnett consequentials or savings _ terms of barnett consequentials or savings. any savings or barnett consequentials that will come our way will— consequentials that will come our way will go towards paying off this debt which is being pushed into next vear~ _ debt which is being pushed into next vear~ in _ debt which is being pushed into next ear. , ., ., debt which is being pushed into next ear. ., , year. in terms of what happens next, and the impact _ year. in terms of what happens next, and the impact of _ year. in terms of what happens next, and the impact of that _ year. in terms of what happens next, and the impact of that budget - and the impact of that budget settlement, water people imm

treasury and our bonds as the standard of the financial marketplace.e legacy, and we can't afford to forfeit it. but the reason we have this problem is spending. and i hope that as part of resolving the deficit -- the ceiling issue, we will see some concerted effort on spending. of and i hope the biden administration come forward -- will come forward and really offer some good ideas, and i hope the republicans will as well. this ought to be a bipartisan cause. inflation is everybody's enemy. liz: yeah, it truly is. i want to thank you for coming back on. it has been too long. and, by the way, can i give away your secret when you were treasury secretary? you had the best candy drawer in the federal reserve offices. i stole enough of those candies -- [laughter] >> yeah, i wish it had worked more effectively on a lot of other people. [laughter] liz: yeah, energizing them. well, you know, government moves slowly but, hey, it's the best we've got -- >> it does. good to be with you. liz: great to see you, former treasury secretary john snow. >>> ahead, regio

two year treasury, way, way down this morning.susan is with us and i want to talk about apple. i know they're opening retail stores in india. is that a big deal? >> well for a country of 1.4 billion and the fact that these are the first two stores in the country, i think that's a big deal, so we're looking at two new ones opening in new delhi and mumbai next week, and reports say tim cook, the ceo himself, will be on hand for the first retail shop openings. as i mentioned apple only broke into india's retail stores and retail market pretty late. back during the trump administration, and we know that their compiler, foxconn, has been investing hundreds of millions of dollars to expand their production capability in india, and many expect that this is a subtle shift away from china to put more manufacturing in india, and india could possibly make 25% future iphones according to the indian commerce minister and of course because of the covid lockdowns that her production there in china for apple and the geopolitical tensions, but you

treasury yields take forward. plus, a chinese diplomat stokes theory in europe by questioning the sovereignty of x soviet states. big outflows from credit suisse but now we have phillips earnings raking across the terminal just now, seeing just under 600 million euros in provisions from their sleep apnea recall compensation. that's the headline figure. 575 million euros. this is just one of three different legal provisions they might face. this one is over the economic recall. it also says it is confident in its plan for 2023. we saw some big job cuts from phillips last earnings. it is that litigation and compensation that will have investor attention. 575 million euros. what will the timeline be? it also said restructuring is on track. for the figures, sales coming in just above estimates, 4.1 7 billion euros. sales also higher by 5.7%. we will dig into those numbers in a bit with the phillips ceo at 6:40 a.m. london time. the big earnings that have grabbed our attention this morning have been the big outflows fr

treasuries staged an impressive rally. equities tanked. what was most notable was what happened at the front end. aura may hike, that is just next wednesday for the fed. the probability is down to 80%. we have the most cuts priced ever for the fed if you look at june 2 this year to june next year. the market is pricing at 170 basis points worth of cuts, more than in the march banking turmoil. i think the conclusion the market had from yesterday is that a hawkish fed next week is off the table. dani: standard charter writing that maybe they should be holding in may considering the week survey data. thank you, valerie. one thing helping lift markets after a tough day yesterday are the tech earnings. microsoft third-quarter profit and sales coming in better than expected. they mentioned ai nonstop on their earnings call as well as cloud demand, helping those shares out. alphabet result beat, its cloud unit turned a profit for the first time. maybe it didn't get as much of a boost considering all the ai hype around microsoft. alex, is it just

actually treasurys.ut interest rate spectrum or any kind of credit risk spectrum to earn, four, four 1/2, 5%. stay in treasuries, stay in very front end of treasurys? liz: not 10 years. >> not 10 years. liz: put up three month. you're talking about three month. >> three months bill, sgov. liz: not 30 year either? >> not 30 year. i will say, if we do, today is incredible day for fixed income markets given the fear that is percolating in the market i think if we get back up to 3.50, 3.75 i think you can be in a pretty good place in the 10-year too something like the ag which gives us access to high quality treasurys and other parts of the fixed income market. liz: talk to me about opportunities where if you're looking at, for example, these etfs, i-shares is known for, when you look at the opportunities, you see ones that give you growth at a reasonable price. people still want growth. >> thank you for asking that question. we just talked about this concept of growth at a reasonable price. so companies wit

treasury department. two positions at treasury, the international monetary fund and harvard university, he held countries in the dominican republic to former soviet states modernize their tax systems to promote efficiency, fairness and growth. his deep knowledge and integrity earned respect and admiration of his colleagues at treasury and white house and hill across both sides of the aisle. throughout the tax community. he was widely viewed as a teacher, mentor and friend and is greatly missed. since 2016 attacks elicited a has been proud to host the symposium in trenton auditor today we continue that tradition and welcome don's many friends and family members especially susan come his wife of more than 60 years. we are grateful to all of you with us today. if i get started a few housekeeping notes. we are broadcasting and recording this event. the recording slides and additional content will be shared after the event. we've enabled life captions and they can be turned on by clicking the cc button on the

my wife, who was in the treasury department, used to have lunch there as well. and harry dexter writes it, okay, i'll meet you. and they met for lunch and victor pavlov had a copy of the new yorker his hand. that's how harry dexter knew who this guy was. they sat down at the table and victor pablo passed a sheet of paper across table to harry dexter and said, i want you to memorize what's on this sheet and i want you to remember what's there. and he looked at it and he read it and he nodded and nodded know i said yes, yes. i agree with all of this. and he folded up the paper he's going to put it in his jacket pocket. and victor powell says, no, no, no, you pass, me, that bag. and he took the paper back and. harry dexter white said, yes, i do exactly what written down here, that plan. that was a secret of soviet intelligence by the name of operation snow white, as in harry dexter, a white. and the plan was for harry dexter. white and his colleagues in treasury which was honeycombed with soviet the state department to ratchet up the pressure on the japanese at tha

treasury and fbi see. on the one hand, they were doing all these things to help out the banking system and then they are raising interest rates which of course hurt the banking system. that isn't quite congruent to me. i would probably be focused on making sure the banking system is on sound ground and making sure that everybody believe the banking system is on very sound ground, and when that is established, turning back to inflation again as necessary. host: do you think we are done with bank failures? do you think what happened has shaken loose the banks that were worse-condition, or are there more to come? caller: i'd be surprised if there was another failure or two or three, but i think they will be small, i don't think they will be a big deal. given all the support that the government has been providing for the system, most significantly with the failed banks, silicon valley bank, signature bank, they stepped up and they said regardless of whether your deposit amount is below the guaranteed deposit o

short-term treasuries, you get another opportunity to put money in short treasuries.r than three years. you have the opportunity to put money into gold. there is still interest-bearing cash accounts like money market funds. utilities are still an ok place to be something that will pay a dividend so you can get paid while we wait out this uncertainty. jonathan: thank you. some kind of landing. lisa: soft crash, crash lightly. jonathan: liz mention gold, is clinging to 2000. lisa: people have talked about the divergence of gold and bitcoin. interesting to see my other commodity sectors that should get a boom from china's reopening. oil prices have declined on the heels of an expected decline in activity in the united states even though you have that reopening and there are some shoots in europe. jonathan: tesla is down more than 7%, earnings after the close with margins lower than anticipated. expected directionally to head this way, the magnitude of the move lower is bigger than anticipated. i will catch up with dan ives with no rose-colored glasses, margins are a deli

that's what i have had with the treasury secretary, as i have had as fed chair.lso have irregular lunches with the head of the nec. we also have regularly scheduled lunches with the council of economic advisors. that is the institutional structure of our context within the administration. david: does the president of the united states ever call you with any advice? did president trump or president biden ever call you? chair powell: i think it is a matter of public record that president trump did used to call me from time to time. david: what did he call you? [laughter] chair powell: i haven't gotten any calls from president biden. david: when you're dealing with your colleagues on the fed board, and you say, "look, i am the chairman of the fed, and i have to make the final decision, and this is what we should do?" chair powell: we are blessed, we have 19 people, but there is one thing that unites all of us, and that is a strong commitment to getting inflation down. ♪ david: for people who are not familiar with the fomc, who is on the fomc? chair powell: it consis

the 6, the straight mother decline in us. treasury is lois. it's $29859000000.00 china rounds of of frontline us debt. how careful do they be? have to be and how easy this is straight years of decline in us debt buying by the chinese government. they can just pull the rug. can they no, no, we have to remember, we have to remember that for china, they're huge, new s dollar reserves, which are fundamentally in us that are one of the principles of the strength of the central bank. it provides stability to the un now and how easy is it to recover from the euro dollar? it's very difficult. and the reason why it's very difficult is that when countries like china, russia, india, so many other countries think of the company. the problem is that none of them think of. busy what makes the u. s. t r? we're reserve currency, and that is that there is in a fire, or it is the house largest number of windows and doors. it's liquidity. so the problem that one finds, when do you see alternatives to the u. s. data, they may be non state owned, but stayed fee of

so i think that and so you would you sympathize with the home us treasury? neural rubini saying, look us banking sectors. on the verge of catastrophe had unrealized losses on security. the money, $620000000.00, which together with a higher interest rates, point 2 and realized $1.00 trillion dollars loss. the banking system is gone, is gone. i wouldn't say that the u. s. banking system in its entirety, but certainly that there's going to be more episodes like silicon valley bank for more worried about the european banking system because the european banking system did not get out of the 2011 crisis and with a clean up of nonperforming loans with the clean out of the, of the balance sheet, at least in the united states. you get a shock in the united states, you have mark to market on a monthly basis on a quarterly basis of all of the assets. and therefore you can immediately see whether. ready there is a big financial hole in a, in a bank or not, in the case of european union, you have now just a challenges that were built up throughout the 2011 crisis and a d

so essentially the banks have to adjust down the value of their treasury assets, leading to panic amongts customers because the banks suddenly have a decrease in the overall value so people are scared and withdrawing their deposits. kristen: has this happened historically every time that interest rates got really high? >> this happened to a certain degree in many different occasions. realistically, any bank at any time can be brought to its knees, if a large portion of its depositors withdraw the money at the same time. kristen: what is the solution then? what has to be done right now to prevent another banking crisis which a lot of people are talking about? >> everybody, just stay calm, realistically, however i'm fully aware that's not necessarily going to happen. everybody with less than $250,000 has nothing to worry about. it -- and should not withdraw your money at all. but anybody with more than $250,000 deposited in their accounts is obviously risking everything above the $250,000 to be lost in the case of a bank going under. for that reason, it is completely understandable that p

the portfolio was in the treasuries being devalued why wasn't there more enforcement taken place? >> we are aware and focused at the supervisory level of interest rate risk and the farm and liquidity. i don't think the supervisors expect or anybody expected a devastating bank run of the kind they were expected in a 24 hour period. there's a high concentration of commercial real estate loans going by small banks potentially whose loans will be a follow-up. >> the gentleman from new york, you are recognized. when interest rates rise, the deposits become more valuable. a stable deposit base from the long-term securities but if you have an unstable deposit bank there's no built in offset. silicon valley bank had an unstable bank singularly susceptible. should a bank with an unstable uninsured deposit base be subject to a higher standard of regulation van a bank with a stable insured deposit base? it's the truth i wish i had decided that way but there are unique risks to this heavy uninsured deposit to banks and for most in the country as you describe that handle the interest properly

he probably not a buyer of us treasury bills and debt got you. i mean the you on is kind of pegged to the dollar, isn't it? yeah, yeah, in a way, absolutely. we run if you and it's fully back to the us thought. and if you think about it, the way that the p, b o c, the central bank of china managers fixing on the un is fully aligned. ready ready what you just mentioned, which is the variability of the reserve until the dollar starts declining massively, whereupon the communist party would surely say no, we're not buying anymore us treasury. exactly which, which could happen. but the reason why it doesn't happen or is not happening is because the other, at the end of the day in b as in bond speed in currencies, you always have to think of the, the us dollar versus something, or the us treasury versus cents. and the problem is right now, the old tentative, the alternatives are not feasible to offset the kingdom of the us dollar. to start with, the euro is the only word reserve currency that has a re denomination risk. so, you know, we never know, bu

so volatility in treasuries not so muching equities, but more so treasuries and bonds was at, you knowlking about -- [inaudible] numbers. so a lot of that's going to show up in the earnings data for the banks. that's probably not going to make some people happy. and then the rolling problem with the can credit crisis impacting earnings and inflation kind of lingering around, so the street's looking for $200, $205 of earnings this year. it's probably going to come in at 190, 185. you throw a 15 multiple on that, you probably belong somewhere below 3,000 on the s&p. maria: all right, we'll leave it there and we'll be watching. it's going to be important. larry, thanks very much for joining us. >> thanks, maria. all the best. maria: republicans fired off the first subpoena in the probe of the trump indictment this week. will d.a. alvin bragg be the next speak that? don peebles is here on and i remember kind of thinking like, "oh my gosh, i think we could be sisters." because i think we looked... yes. right. yeah. and i don't think at that time- i think you're the one to tell me that we ha

we are looking at the 10-year treasury yield hovering around 3.5%. that yield as we discussed his hanging tight at about just over 4%, but from new york, that doesn't it for us. same time, same place. this was bloomberg real yield, and this is bloomberg. i screwed up. -mhm. i got us t-mobile home internet. ah! now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house. i was trying to work. we're workin' it too. yeah! work it girl! -woo! i want to hear you say it out loud. well, i could switch us to xfinity. those smiles. that's why i do what i do. that and the paycheck. e counting, carb cutting, diet fatigue, and stress. st taking one golo release capsule with three balanced meals a day has been clinically proven to repair metabolism, optimize insulin levels, and balance the hormones that make weight loss easy. release works with your body, not against it, so y

equity and treasury moves are muted, the dollar edges lower.c officials signal divisions over the next policy decisions. plus concerns and europe, warning the euro zone faces a risk of inflation becoming entrenched. i really like what our last guest already said, is not a matter of whether a credit crunch will happen it's a matter of how deep and how scoring it is. something that treasury secretary janet yellen perhaps does not agree with. manus: maybe she just didn't get the data on the credit squeeze we had on households late last week. a quick sweep across the board's because we have a guest waiting in the wings. you've got rates inching higher, i wonder will equity volatility ratchet relative to bond volatility. it's never a good sign in terms of the health of the demand-side in china. dani: goleman's talk about the fact that we could see big equity swings either way depending on how the cpi data comes out. that is the key point, we have to wait for the data. wells fargo says we could see a 10% correction. meanwhile european stocks are soft

>> we had the rally today with the treasuries ticked up with ism.re still back off the highs from today i think they'll wait and see what happens the momentum is higher but we have a jobs number that throws people for a loop. >> reporter: one number. one number can make so much difference since it is really quite unbelievable everybody better tune in friday morning. i'll be here for that jobs report tyler, contessa, back to you. >> i'm just setting the alarm. i want to see the traders dancing in between the rain drops. that is going to be great television rick santelli, thank you so much let's get a cnbc news update >> this is your cnbc news update at this hour russian authorities have accused ukrainian intelligence agencies for a st. petersburg bombing that killed russian military blogger vlad len tartarsky investigators say the bomb was hidden in a statue given him shortly before the explosion: there could be a reprieve to many of the 1300 prisoners on death row. under the new law, now prison sentences of 30 to 40 years can be given for crimes tha