ira: chair yellen mentioned that once or twice about income inequality. not something congress and the president would need to work out, trying to find out how to pull back on the inequality, or lift up the bottom portions of wage earners and those with few assets. instrument. blunt i think chair powell is likely to continue to say that. would not be surprised if you mention something about it in his remarks. he would want to get in front of his question. the fed does not redistribute money, right? that is not what the fed does. that is a job for congress. i think he will have to press on that and continue to use the fed's traditional language in that area. the fed does not -- on purpose, at least. that is not what it's intention was. tunedt you to stay because we will have full coverage of that fomc decision. this is "balance of power." ♪ david: this is "balance of power." to move theirng convention from north carolina to jacksonville, florida. to take us to the significance of that, we welcome our political editor. welcome back. it is great to have you

surely the good witch in the city was a study because vick of a particular star called will allow yellen to be cured. as evidence. because even in the early. going with. what are you doing more of the border with your answer or your definitive review of what the 3 of them are. and we'll put up a log of the removal of the world war all boarded up routine with the border there for. a long while you are good. you knew you would go before you. with bottom up though. you know what do you do if you quantity of all do so and you got a got i must be vocal with. reviews or use of it you know i think you. need a hug he didn't. know but if you want your washing to for the money to your committee democrat on i know. a couple. roger and i feel good to meet you. right there with. the group i don't think i'm going to. look. good but they know what we've been able to. pull over that there would qualify a little we're going to be easy to meet you but i can tell the truth. you. suffer the vocal with a broad wink newcomb the global for them aloha and we're going to fall i'm ok i would i would he come up on

and yesterday former fed chairs bernanke, yellen and more than 130 economists wrote a letter calling for a bold congressional response, including, and i quote, continued support for the unemployed, new assistance to states and localities and investments in programs that preserve the employer/employee relationship, quote unquote. the may jobs report showed slightly better jobs numbers than the april jobs report, which was the worst in recorded history, but there's still major reasons. black unemployment rose to 16.8% and 600,000 public sector jobs were lost, yet this administration and senate republicans are not moving with any urgency. republicans seem to be more focused on a more limited response while granting a broad liability shield for major corporations question, do you agree with your predecessors, chair powell should congress take bold action as soon as possible, quote unquote? >> thank you, madam chair. so i would agree that congress has already provided significant fiscal support and that support is now having a positive effect on the economy we see it in consumer spending

pow this is janet yellen this is ben bernanke he and this is alan greenspan they cause a situation of allowing that that the pile of fraudulent debt the black hole of debt that causes the inflation that they keep on printing money to throw into they've caused these that this is the next mess this is where the risk has been transferred because remember the tyrants in the central bank that they don't want price discovery what they're trying to do is to prevent anybody from understanding the risk they're taking well the risk doesn't disappear disappears off of citadels balance sheet perhaps but it's put here in these gallant sheets of the pension funds absolutely this public pension fund cowper's long term toxic risk dump i remember when i was on wall street you know working for a big firm on wall street a lot of times firms make mistakes you take down a big order take on a big trade and somebody messed up the oyster and suddenly you know you've got a 5 $1000000000.00 loss or $20000000.00 loss or a $50000000.00 loss and so the firm is on the hook for that money now i personally have seen

inflation right now what's interesting is that chairman of the fed jay powell and before him janet yellen ben bernanke you know in a talk about their policies they make it sound like they are doing something good for the economy and doing something good for the average working person and they deny that they are causing any quality in the system jay powell once again when asked are your policies of kalak after money causing inequality and he said not at all what do you think. well it is very simple message to tell you what they want you to he they don't necessarily tell you the truth you have to go look for yourself as to what the truth this is and the truth is that could ose back and. within 6 weeks ago you could get this stuff away oh this is going to have hyper. impact and it's already starting right now james i have to pick your brain on this because you are of course an entrepreneur and a historian and or a great writer of so many great essay 70 years if the u.s. loses its exorbitant privilege what does the post post bretton woods such a. look like who'll be seated at the table what d

it is for us >> we have a letter we received this morning from ben bernanke, janet yellen and over 120 other respected economists about the urgent need to take more fiscal action given what you said about the short term and fiscal policies as a tool, do you agree with their statements that we need to do more? >> i saw the headlines i have not had a chance to read it it went across the tape. i will look at it. fiscal policy, what i would say is we're not in a position of giving you advice. congress has done the most it's ever done. as this plays out, it's likely it will be group that struggles to regain employment because they were working in those industries that are so strong. they need help in from the fed and you too. >> i take it from your proefs response especially when it comes to short term downturns that fiscal policy is the most effective instrument to deal with the short term impacts. we lost 1.5 million jobs state and local government levels over the last two months, that's a drag on the economy, isn't it? >> yes, it is. >> shouldn't all of us using the tools at our disposal

if they don't replace all the why all their sports jersey, they could change it to yellen university,lton university. but here's another idea. many people know that yale is a harvard of connecticut, harvard university of new haven has said nice ring to it. sports stadium, sports stadiums are significantly less sleazy than ivy league schools how does goldman sachs university sound? that's the chinese would be interested in buying a slice of america's dwindling legacy prestige. how about huawei university? just rename the hopeless date confucius university of new haven. yale likes to insist on community, so why not become a community college? new haven community college? to be clear, for the record, we are against doing this, renaming any schools, we are against ripping up statures, we are against stronger history. institutions have their own identities, they were separate from the founders. that's part of it. history is complicated. there's good and bad in there. look at it in the face directly in its totality, like an adult and assessed at like an adult would assess another person, wh

i want to go back to the letter senator warner referred to from chairman ben bernanke and janet yellen and many other economists that say the fiscal stimulus from congress, the next stimulus "must be large commensurate with the $16 trillion output gap our economy faces over the next decade according to the cbo estimates." without asking you to commit to a dollar amount, is there a bigger risk for our economy that we provide too little support or that we do too much? ther powell: i saw headline. i have not seen the letter. i do not know what is in the , iter the former chair wrote would say this. the fiscal response was largest and the fed response was largest. .4% of gdp it is a question we have to answer. is that enough. i would say there is a reasonable probability more will be needed, both from you and from the fed. i would also say the things you already past are having a positive effect. we should see a lot more of that going forward. , are youht of that starting to reconsider, is the fed starting to reconsider its understanding of the relationship between deficits, inflation, and

or not you saw the letter, but we have a letter we received this morning from ben bernanke, janet yellen, and over 120 other respected economists about the urgent need to take more physical action. -- more fiscal action. given what you just said, do you agree with their statement we need to do more? chair powell: i saw the headline in the first two sentences of the story. i've not had a chance to read. it went across just before i walked in. i will take a look. ascal policy, we are not in position of giving you advice, and you have reacted, congress has done the most it has ever trillion,of gdp, $3 we have done the most we have ever done. it is likely there will be a group of struggles to regain unemployment. they are working within those industries that are so strong. it is likely they will need help and they maybe help from the fed and from you. i take it from your previous response that when it comes to short-term downturns, fiscal policy is the most effective instrument to deal with the short-term impact. jobs atlost 1.5 million the state and local government levels over the last two

yesterday, former fed chair's ben bernanke and janet yellen and more than 130 economist wrote a letteralling for congressional response, including "continued support for the unemployed, assistance to states and localities, and investment in programs that preserve the employer employee relationship." the may job reports shows slightly better jobs numbers than the april jobs report, which was the worst in recorded history. there are still major reasons like unemployment growth to 16.8% and 16,000 public sector jobs lost. and senatestration republicans are not moving with any urgency. republicans seem to be more focused on a more limited response. i broad liability shield. while granting a broad shield to major corporations. question -- do you agree with your predecessors, chair powell, should congress take bold action as soon as possible? chair powell: thank you, madam chair. would agree that congress has already provided significant physical support, and that support is now having a positive effect on the economy. we see it in consumer spending, income data, we see it in payrolls. all o

yellen former fed chairs and bernanke have endorsed a proposal, an act that would tie federal unemployment to the state of the economy. for example, changes in the unemployment rate. do you agree that we should tie assistance to the condition of the economy or what are your thoughts on these processes that would have set triggers for the legislation and benefits to continue? chairman powell: i think that you have almost two months, a month and a half until the end of the program. and i think you are looking at a lot of ideas, and number of proposals coming up from bipartisan groups, and i think doubt you are thinking what should the next part of support look like. and i think those ideas are interesting. i do not want to endorse a particular idea or program that somebody has proposed, but i think that those things are worth careful consideration. >> i want to thank you for all theour transparency and programs the fed is administering, and also for having listening sessions and your willingness to make changes who might be eligible for the program, you know, in terms of the money amounts an

want to go back to the letter that senator warner referred to from chairman ben bernanke and janet yellen, and many other economists, that says that the fiscal stimulus from congress, the next stimulus, must be large, commencement with the nearly $16 trillion nominal outcome -- output gap or economy faces over the next decade, due to cbo estimates. without asking you to commit to a dollar amount, let me frame the question this way. is there a bigger risk for our economy that we provide too little support, or that we do too much? mr. powell: i saw the headline. i have not seen the letter. i don't know what is in the letter that former chair bernanke he brought. received the economy is the largest in federal -- in living memory. the fed response was the largest response. $3 trillion in these programs, it is a great deal. it is a question we will all have to answer over time -- is it enough? there is a reasonable probability that more will be needed, both from you and the fed. the things you have already passed are having a positive effect now. we should see a lot more of that. sen. schatz:

scrapped dividends which we saw in the last financial crisis it's something that is advocated by janet yellenay for banks to be prudent. do you think they should have done that? >> i think that it is important to be prudent but also to be agile in this crisis agility should affect the steps. you take data and information and then you make adjustments. but also be careful not to go too far too fast >> how often do you think the disexpect between the markets and economy resolves itself? are infestors vestors in for a pain >> let's first take a look at what we project. what we're seeing in our asisment is that we have a deeper recession than we anticipated in april and we are for a partial and uneven recovery. and, therefore, what we all have to be mindful of is that we're just not out of the woods. there has to be a degree of caution. we're also saying that there is a expectation for medical breakthrough and so let's remember the economy is not destroyed it is just putting a stand still. as growth resumes, provided that policymakers continue to be prudent, we can expect finally this alignment b

the argument, tom, why don't they just make that -- scrap the dividends like sheila bear and janet yellenthey should do just to be prudent during this crisis in i mean why cap it at these levels and not just tell them to suspend it like the buybacks >> i think it's premature to get too excited about how negative this s i think what the fed is just doing is trying to build in some flexibility because they try to run a stress test in the middle of a health crisis, an economic crisis and a social crisis. and all they came up with is wag. so i think they're just saying okay, let's go slow. if it gets worse, then we'll come back to the dif denlvidende this year. except for wells farg yoo, i dot think anyone will announce a dividend cut when they announce the plans. >> based on your answer to my question earlier, you're buying some of your favorite names, your morgue an stanleys and wells fargos tomorrow. >> yeah. i mean, the after market is very thin let's see how the things trade the they're not down nearly as much as i would have initially thought. and you can look at that positively or nega

the other side today, we have also heard in a statement from ben bernanke, janet yellen, austan goolsbee we do need more relief spending in the future, especially once the cares act expires. keep in mind, over here at the white house, negotiations will take place later next month for next step measures. stuart: i would like to be a fly on the wall and so would you. okay. it's not going to happen. blake burman, thank you, sir. see you soon. all right. grover norquist is with us. he had a hand in writing this letter. grover joins us now. grover, let me -- i'm just going to ignore the letter for a second. if we don't get more stimulus, we might not have a really solid recovery by election day. and that could hurt president trump's chances of re-election. it could mean the election of a big tax and spend liberal to the white house. have you factored that into your considerations? >> yes. you have to remember, of course, that any piece of legislation, any bailout, so-called stimulus package, spending government money doesn't stimulate anything, it just moves it around from one person to anoth

-- i'm not sure what your is as to whether you saw a letter, we had a letter we received thisrom yellenover 120 other very respected economist about the urgent need to take more given what you said about the and fiscal podee more. >> i saw the headlines in the first twoce to read, i went across to just befe i walked in here. on fiscalolicy, would say, were not in position of giving youas done the mo overdone 14% of gdp done the most we've ever done and as thisout, it is likely there wille employment those industrieshe you >> i take it from your previous response, especially when it comes to policy is the mosective instrument to deal withhÑe lost 1.5 mi localca levels overhe last two months that's a drag on the economy isn't i >> state and local government employers to our stop the loss o lx jobs of the state and local level? >> we did discuss this and i would say certainly area looking if provide the services and they have bget come very when revenue gs d go the economy. >> ar the fact that i many cases s their physicals of july 1 as to whether or not to cut back their budget and lay pe