powell: something like that. fact thatconsider the has been pointed out several times during this hearing that the low-wage workers are the ones that are really severely hit. i think you pointed it out in your testimony. and since we have a lot of poverty in rural america, can you give me an assessment of the programs that the fed is doing working in the areas that it is really needed? it is needed across the country with the 13.3% which might be a conservative figure, you know that. but with employment where it is at, it is needed everyone. but are we getting it for will bang america? america? powell: i like to think we are through our support of the paycheck protection program liquidity facility. we have made that easier for small banks to use because they can transfer there interest in the loan to our facility and it gives them balance sheet capacity and they still get to keep it. that should help and they get to help our words because it -- borrowers because of it. also main street and some of those would be

powell: sure. the municipal facility is up and operating. it is available to be approached by the eligible municipal entities. one andar, we have done we are open. so that facility is fully open. as you mentioned, the main street facility opened for lender registration yesterday. we expect that process to take a couple days. whowe encourage lenders have completed that process to begin immediately making loans to eligible borrowers. we hope that will happen. and then i would say in a week or so, the liquidity facility itself will be available for or to purchase 95% interest in those loans. that is effectively up and running right now. in terms of nonprofits, what we did was we put out a proposal to include nonprofits in the main street facility. and we have asked for comment on it. there are two facilities in the nonprofit part of main street that have essentially the same for profit part, but the requirements are different and more tailored to the financial characteristics of nonprofits. the ratio

chair powell: the answer is no. you know, we have very specific powers, which are lending powers, in addition to our regular monetary policy powers. we have lending powers that we have used to a completely unprecedented extent here, and i think we have been able to broadly do the things that we felt were most in need of doing, and, of course, the powers that are going to matter so much going forward have already mattered to spending, to toxic tha tax incentive dollars. rep. perlmutter: thank you so much for your testimony. i yield back to the chair. rep. waters: thank you. mr. rose, you are recognized for five minutes. mr. rose? he is not present? steil.mr.ll go you are recognized for five minutes. rep. steil: hello. can you hear me? i was talking, chairwoman, can you hear me? rep. waters: yes, you may begin. get as we: thank you move through the recovery process, i am really encouraged by the early economic results. obviously we still have much farther to go, but i am encouraged command i credit the admin attrition

chair powell: i certainly would not forecast that. just hypothetically, a second governmentsld force and people to withdraw again from economic activity. i think the worst part of it would be to undermine public confidence, which is what we ofd, to get back to lots kinds of economic activity that involves grounds -- crowds. >> thank you. i yield back. chairwoman waters: thank you. mr. lucas. powell, secretary mnuchin, thank you for attending this hearing. i want to begin by commending german power or finalizing the inter-affiliate margin rule. this may be the last time that we discussed this. while the rules may be abstract and difficult to understand, they have an impact on agricultural and oil and gas producers who manage risk and plan for the future. which as we have seen in the past months can be unpredictable. know,aid, as both of you commercial people finances a wide array of economic activity and provides liquidity for companies to meet their operational needs and with the commercial paper market under strain due to covid-19 in

powell: it can be a drag. after the financial crisis and during the great recession for a number of years, it is pretty well documented that it was a drag. >> one of the other issues and senator brown echoed this. looking at statistics, 40% of state and local employees are african-american -- 14%. once again we will see a situation institutionally, maybe not intentionally, institutionally, a significant portion of this distress will be laid on the shoulders of african-american workers because they are the state workers that will be laid off. is that pattern adequate or accurate? >> i don't know the exact number, but it is certainly right. we know that people have lost their jobs so far in the private from impacts of coronavirus and they are heavily lower income people. minorities are overrepresented and women are overrepresented. >> let me turn to the may jobs report. it was encouraging. did it represent a turning of the corner that the labor markets find? previous comments suggested that encouraging news but

chair powell: i do. absolutely. >> is urgent we use all the tools at our disposal to address that issue. i saw president trump celebrating the other day that the unemployment rate in may ended up around 15%. nothing to celebrate. in that same unemployment report, we saw black americans unemployment rate go up compared to the previous month, did we not? chair powell: we did curate over the longer term we see african-american unemployment running at upright -- we did. over the long term we see african-american employment running over white unemployment. that is in all parts of the business cycle. >> and also these ingrained issues in all aspects of our society, from schools to financial systems. let me ask you this. i saw wall street has responded favorably to some of the most recent actions that the fed took. when it comes to helping those people who are most hurt economically by this downturn, have you spoken about them, the fact that 40% of individuals with incomes under $40,000 found themselves out of

--ir powell: you, mr.: that i stump chair? chair powell: i forgot to i mute myself, sorry. i actually think the law is written to accommodate what we have learned, what i've a lot of have what a lot of us learned. when we were growing up, inflation was really a problem. people were not imagining it. they would have to watch carefully, or inflation would move up command it would hurt, you know, people on fixed incomes more than anybody else. and what we have learned is that, you know, these disinflationary forces we have seen around the world for a quarter-century, they are here to stay for a while, and that, you know, we live in an era of continued downward pressure on inflation. that gives us the ability to have very low levels of employment. i do not think it is going to be, you know, if you change the law to, you know, the situation will change. the economy is ever evolving. so i think -- i do not know that changing the law is what we need to do. i do think we get that, and i think economists broadly do get that now, and that is why we are so eager to get back to where w

chair powell: hello everybody. i'm a professor of public affairs here at princeton university and thank you for joining us for this princeton university reunion event with federal chair drum powell. just federal chair drum powell. we are especially happy to have many members of term impels class from the princeton class of 1975 on the zoom. quickly disco note, if you have a logistical note you are welcome to submit it using the q and a feature of zoom -- a quick logistical note. at the bottom of your zoom window you will find q&a and you may upload questions you would like to see answered and we will take as many of these as we can. a full recording of this should be posted on the griswold center website and that talk is being .ivestreamed right now let me briefly introduce men who needs no introduction, but we are happy to welcome today. jay powell graduated from princeton 45 years ago. 10 years after that, he married his wife. this weekend the two are celebrating the graduation of their daughter susie, as member

chairman powell, thank you for being here again. i know that you've been asked by a number of members before me about the issue with black and brown business owners being left out of the pot that we have clearly intended to help during these down times. and so i'm frustrated like a lot of people not only in congress, but a lot of people around the country. what is your philosophy, mr. secretary, maybe not philosophy, but what do you have to say to -- why rural and minority businesses equally supported in the emergency program? what do you think happened? >> well, let me just first say, we need to all do a better job at making sure that we have sources of funds for those businesses and to support those businesses and the ppp we've worked with lots of different people to make sure the cdfis and mdis get there, but across the board, we can always be doing a better job. >> thank you. i guess i'm here dealing with this minority businesses right now and if i say we all agree we need to do a better job, can you -- do you have any ideas or

secretary mnuchin, chair powell, welcome back. the pandemic continues to have a terrible impact. 126,000 people have lost their lives in the united this past sunday, there were 40,000 new cases of covid-19, the highest number of daily cases. unemployment rate in may was 13.3%, nearly four times higher than it was last may. all of the job gains of the past decade have been wiped out. beennities of color have affected disproportionately, both by the virus and its economic impact. the centers for disease control reports that as of june, black were four americans to five times more likely than whites to be hospitalized for covid-19. have of all black adults are not working. during the 2008 foreclosure crisis, we saw a similarly disproportionate impact on communities of color. this was followed by an unequal recovery where white house old gained the wealth they lost. black and brown households are still trying to catch up. we cannot endure another unequal crisis or unequal recovery. your agencies in congress must do all that we can to

and thank you for joining us today secretary mnuchin and chairman powell. i want to commend you both from the outset for your leadership here during this unprecedented time both the united states department of treasury and the federal reserve system have shown their ability to both effectively and rapidly respond to the economic crisis caused by covid-19 by providing trillions of dollars to stabilize our economy. chairman powell and secretary mnuchin, lender registration for the main street lender -- lending program went live on june 15th, i believe do either of you know how many lenders have registered so far, and do you know the average size of the lending -- lenders participating. if not, when do you think this information might be made available? i'll toss it to either >> sure. so in the range of 300 banks and it may be higher than that, that number is a few days old have entered the registration process. it takes a few days. i can't tell you exactly how many but that's how many will come out of the pipeline. >> average size of lenders participating? >>

i am mike santoli in for scott wapner yesterday chair powell said there is a lot of uncertainty about the timing and strength of the recovery and reiterated the fed will do whatever it takes to help the economy the dow and s&p have been fighting it out around the flat line today the nasdaq is the clear outperformer, up 0.6 of 1% small caps pulling back. our investment committee today, joe terranova, stephanie link, jon najarian joe, let's get your top line read of the markets right here we had an 8% pullback into monday's open. we've rebounded a little more than half of that over three days, so was that it for the near-term pullback or are we still in a choppy phase? >> well, we still have more fight to encloses the gap from last wednesday into thursday's decline for the s&p, mike. that gap sits at 3153 to 3181. the composition of today's tape shows weakness in what had been kind of those dash-for-trash leaders. if i look at the dow, i see exxon, boeing and chevron. they are underperforming today within the s&p you have the cruise ships underperforming and then for the nasdaq, it's th

that's the message from fed chairman jerome powell. it's a sign to central bank will keep pumping stimulus into the economy until the labor market has healed. >> we're not thinking about raising rates. we're not even thinking about thinking about raising rates. so what we're thinking about is providing support for this economy. we do think this is going to take some time. i think most forecasters believe that. manus: asian stocks and u.s. and european equity futures are slipping this morning. we digest the comments. here's some of our top guests reacting. >> they are prepared to do what it takes and to stay the course with a very, very expansionry accommodative policy stance. >> if miraculously there's a much better outcome in the economy, they will reconsider. so there's no guarantee that the policy rate will be at zero for 2 1/2 years. >> pretty clear they don't see any need to pull back for any of those financial stability concerns. and so that's just reinforcing the zero rate policy. >> basically we're not going to let companies fa

how does powell see fed's role in this? kathleen: i would like to remand everybody that he has been clear that the pandemic has hurt those who can least afford it the most. low-wage workers and proportionately, that has affected women, african-americans, hispanic most.s the it is interesting that he went out of his way to put something in his prepared remarks. i think this is clear that the fed wants to make it obvious that yes, we too are concerned about racism. i speak for my colleagues when i say, there's no place at the federal reserve for racism. there should be no place for it in our society. i think jay powell talked about wealth inequality, income inequality, and talked about if you get caught on the wrong side skills,ng technological if you get caught on the wrong side of globalization and having the right kind of job to keep yours even as other people find they are falling behind, then you are in a tough place. black and employment at 16. .8% in may white unemployment at 12.4%. still a big gap. staying withen is u

colin powell saying he will vote for biden. former president george bush and his brother jeb not planning to vote for president trump either. we'll get to all of that in a moment. but first, in washington today, democrats unveiling a new plan to reform america's policing. >> in the 1950s, news cameras exposed the brutal horror of legalized racism in the form of segregation. 70 years later, it is the cell phone camera that has exposed the continuation of violence directed at african-americans by the police. >> empathy and sympathy and words of caring for those who have died and suffered are necessary but it's not enough. we must change laws and systems of accountability. >> joining me now to discuss, elisia garza, from the national domestic workers alliance and co-founder of the black lives matter movement. kristen clark, executive director of the lawyers committee for civil rights. and jonathan kay part. is this a genuine inflection point, and how important is it that this is a broad multiracial coalition from around the world

secretary, chairman powell. you taking the time to be able to be here do appreciate all of the efforts that you've made to be able to stimulate the economy and to be able to help our folks at home did want to bring up an issue that we heard back from our desk under the cares act the government did provide for communities, 500,000 or more people to be able to apply directly to treasury for assistance colorado that translated into 59 of the 64 counties in colorado were unable to sever direct assistance full recognition obviously the additional dollars went in over and above the direct assistance able to be applied for i guess what i would like to be able to see it from you as there been any oversight to be able to do what i believe was the congressional intent to get those dollars back into small communities like those that i represent and we had any sort of examination of how those dollars being spent by the states >> we agree with you the reason we didn't do it to less was purely administrative we put out guidan

thank you, chair powell. nick timmeros at "the wall street journal" i want to ask about the economic projections. i realize these are more educated guest at this point. suggests that the committee sees quite a large out put gap over the next two years yet the committee did not take any steps today to reinforce your forward guidance. so my questions are first, what are you hoping to learn by waiting? second how might that change your response? and third, how close is the committee to reaching a decision on more concrete forward guidance and whether yield caps might reinforce that guidance? >> so, first i would say we think that monetary policy today is currently well-positioned to support the economy in this challenging time. if we didn't think that of course we would change our policy now. as you know we lowered our policy rate very quickly, quickly than others to effective lower bound and we said we'll keep it there until the economy as weathered the effects of the virus and is on track to achieve our goals.

jay powell says rates will remain near zero through 2022. global virus cases continue to rise as u.s. infections alone nearing 2 million. texas records its highest jump since the death -- since the disease emerged. the causing severe damage to the global economy. it also says australia is leading developed nations through the economy. shery: let's get a check of how markets are trading. we are seeing u.s. futures under continuous pressure. the futures session right now. this after stocks fluctuated throughout the day. we had the risk on tone fading. this is economic projections pointed to the long road back to normal. we had the s&p 500 falling half a percent. finishing lobar display chair powell suggesting the pandemic could inflict permit damage on the american economy and despite the fact treasury secretary mission says the u.s. definitely needs additional fiscal stimulus so we could see more measures from the u.s. government. the nasdaq composite was higher by seven tencent 1%. a similar mixed picture we saw with tech stocks rallying. th

where is jay powell going wrong? >> well, let me just say that i completely agree with the president. we're going to have a fantastic third quarter and fourth quarter and going right into 2021 could be tremendous, tremendous comeback year. you know, i don't know why the market has sold off whatever it is, 1,000 points. i admit i'm not having that much fun this morning coming on your show. we've had better news. but regarding jay powell, okay, i think chairman powell is giving us zero interest rates for two years. that's really quite good. you can't get more dovish than that. the balance sheet's going to rise by about $10 trillion by year end. the money supply is growing by 23% year on year. now, i do think mr. powell could lighten up a little when he has these press offerings. you know, a smile now and then, a little bit of optimism, okay. i'll talk with him and we'll have some media training at some point. but basically, i don't see the fed as an obstacle here and the unemployment claims, the unemployment claims aga

something jerome powell picked up on. >> jerome powell talked about this because he talked about the fact we are seeing unemployment in america disproportionately affect black communities, disproportionately affect hispanics, as well as women have borne a notable share of the burden. you can see in this chart we see black unemployment rise faster than for white americans. before the u.s. economy shut down, black unemployment rate was close to a record low relative to white on employment. the ratio typically widens when we have recoveries as white americans are hired back quicker. this is going to get a lot of attention because the u.s. is having this discussion about racial injustice, inequality, as we still continue to see protests take place around the world. britain's top scientist mounting a very public challenge to the prime minister. what is the story? >> frank commentary. it was live on television. you saw boris johnson under pressure from one of his top medical chiefs, saying -- basically kind of calling out boris johnson or the government for their long list of potentially f

chair powell: hello everybody. i'm a professor

his powell missing a trick? the announcement factor, the ability to do something but not need to do anything is a powerful tool for central banks. why is powell not being smarter about this? ther powell: -- kevin: markets have reacted favorably to the announcements that have been made. there are almost a dozen facilities that the fed has dug up over the course of the last couple months. there is still an enormous amount of uncertainty. it is the hope the economy can come back and i think it is the base case for the fed that things start to improve going forward. i think the fed is very conservative. they are also quite cognizant that this could potentially see lockdownsave, and could go into a quarantine again. i think they are just being extra cautious right now in making sure the tools they have intact andmain fully that financial markets can rely on them for a sense of stability and confidence. that is the important thing, instilling confidence. right now it seems like that ultimately will be the determining

>>general powell also added that he will not be voting for the president and we'll be supporting joe biden in response to the extensive interview that also touched on the us's relationship with china with respect to the coronavirus mister powell said that he believes china did try and communicate the severity of the virus. but that the president chose to ignore intelligence reports. president trump fired back in a tweet the president said quote colin powell, a real stiff who was very responsible for getting us into the disastrous middle east wars. just announce said he wi be voting for another stiff sleepy joe biden didn't pow say that iraq had weapons of mass destruction. they didn't but off we went to war. >>when asked whether he would campaign for mister biden general powell said probably not but he would be supporting the presumptive democratic candidate in other ways. theresa kron 4 news. >>there's no amount of credentials is not to the congressman's there's no amount of money. >>they can change the fact that we literally all our doors. coming up next the mayor of saint paul min

how does powell see the feds role in this? lotleen: he talked a broadly about wealth inequality, income inequality, saying how the pandemics impact has been , hardest on african-americans, on hispanic workers, on women broadly. think it's interesting that the fed even went out of their way to put a powerful statement about racism in his prepared remarks. here is what jay said. there is no place in the fed for racism, and there should be no place for it in our society. everybody deserves the opportunity to serve -- to participate in our society and economy. he mentioned this is the divide that we see. globalization, technology, if you don't end up with the kind of education that gets you there, that's a problem. but let's note that the unemployment rate in may was at 15.8% for black people. it is still a historically wide gap. do powell says what they can is make sure this economy right now grows as fast as it possibly can and creates as many jobs as it possibly can and gets unemployment down because that's what helps the load

not enjoying fed chair powell's commitment to lower rates. down 0.4, dxy below 96 with 95 for the first time in a while. all is flat but golden joining a nice rally during press conference and since up 1.5% for obvious reason at the close down a full percent on the dow, half a percent on s&p, up 0.7%. >> that will make another record closing high for the nasdaq. welcome back, everyone if you are just joining us to closing bell i'm sara eisen with wilfred frost and mike santoli, senior markets commentator. take a look how we finished up the day on wall street lower for major averages like dow and s&p, dow closing down 282 points those squiggly lines going positive at one point. that was all around found federl reserve. first a pots tiff response to the statement, they promised to keep interest rates low through 2022, then lost momentum lost half a percent. technology was the only sector that was higher on the day and that helped the nasdaq go to another record close the nasdaq its eighth positive day in the last nine it is now up 12% for the y

but i think powell is doing a very good job. he has also learned to stay on message a little bit more than maybe in the past. what i think the most important message he has been imparting is not that this is an uncertain time, but we've got the ammunition. i think the most important messaging is that some of these tools will go back in the .oolbox but also, he has repeatedly emphasized that there's is a difference in the fed's mind and there should be in investors minds between system sims ability -- system stability and financial market capability. volatility in the financial markets in and of itself shouldn't trigger fade action unless it becomes a risk to the financial system more broadly. that to me is the most resonant message he has been putting out there , not just in this recent period,- this recent but over the past year. is dead on.z ann whatever you think of chair powell's policies, i know it is divisive right now. i will get the messages. but i think we can all agree that the chairman's communication has improved dra

jerome powell giving a cautious assessment of the u.s. recovery. more on that next and retail sales data is the bloomberg. ♪ nejra: this is "bloomberg daybreak: europe." weakerdrifting in asia, on european futures as investors try to assess where to go after the big risk on we saw yesterday off the back of u.s. stimulus. monetary and fiscal. the 10 year yield slipping. we are generally seeing the dollar flat across g10 today. in terms of dollar-yen, looking at a 107 handle, not moving much . oil pushing back on concerns about the second wave. demand being hit in china with a lockdown in beijing. have yous, great to with us for the hour. let's pick up on the conversation we began earlier in terms of where we go for the u.s. economy from here. we saw optimism come into the markets with what the fed announced around buying individual corporate bonds. themuch more do you expect prospect of stimulus in the u.s., fiscal and monetary, to some -- provide support for equities? how much is already priced in? we are pressing a v-shaped recovery. a lot of su

jonathan: fed chair jay powell. we are not even thinking about thinking about raising interest rates. that is a line you will hear repeatedly for months, and maybe even years to come. alongside tom keene, i'm jonathan ferro, together with lisa abramowicz. this is "bloomberg surveillance ," live on bloomberg tv and radio. the open, two hours and about 12 minutes away, with equity futures at session lows, down 2% and change on the s&p 500. -67 points. the outperformance over the last three days comes from tech, the nasdaq against the small caps. in the bond market, treasuries bid, yields lower. we are down about 20 basis points on the 10 year. treasuries have been really firm this week. the curve is tighter. in foreign exchange, the story of dollar weakness through much of the last several weeks, and for a fourth straight week, we get a little more dollar weakness yet again. for today's session, the euro just slightly negative. the euro coming back with a little bit of strength on the session. tom: dollar came back. i

let me ask you chair powell. i know you don't want to comment on specific proposals but what would be the impact on the housing market, especially the rental market if congress doesn't provide some sort of long term rental assistance to people what would be the impact to people >> i think if if people get evicted or closed on things like that, there even their abilities to get back in the labor market becomes very challenged. just from a human -- it's a moral issue and an economic issue at this particular time because of the likelihood that we'll have fairly large population of people who are not able to go back to their old jobs or find a new job in their old industry i think those are things we're worth considering as as you think about what's worked to provide. >> yeah. chair powell, would you expect if that were to happen, that would also put incredible pressure on the landlord sometimes public, private partnerships that own these affordable housing units because they lose their revenue stream in order to kee

that's what powell just said. so the fed wants to be absolutely certain that the economy comes back and that things go steady. otherwise it just becomes a real problem for the fed, the government, so on and so forth. i think it is a fair assessment. the fed is going to be all in, going to stay all in, and again, i think, you know, we talked about yield curve control. i know the other guest just talked about it. effectively, the fed is controlling the short end of the interest rates. two years, three years, maybe even five years are fully under the thumb of the fed. the question is, will the long bond be under the thumb of the fed. i don't think that's necessary right now. again, we look at corporate issuance as the game here, as to whether the fed should do more or less. right now, we would like to see how it plays out. ashley: very good. got literally 20 seconds but i wanted to, mark, listen, what we heard from the fed, should this spark on the fiscal side, from the administration, maybe round four of direct paym

powell should lighten up a little. tale of two messages today one from the cabinet secretary looking ahead. >> prepapered testimony. you have chair powell talk about the outlook for the u.s. economy being extraordinarily mentioneds by the virus the prepared system from the treasury secretary focuses on the better than expected may jobs number. better than expected retail numbers. 80% of private businesses have reopened focusing on the positives in the economy the one thing you'll hear both of them say is there will be more stimulus needed they will talk about it in a different way. expect powell to say that the fed stands ready to do anything that congress and the administration needed to do because the fed doesn't necessarily have negotiating power in the role of what this new stimulus should look like. chair powell said the fed will act with whatever authority it is given it will stand ready to put wide ranging fire power behind this economic recovery. on the flip side, you've had hear mnuchin saying targeted stimulu

jay powell warning to pull too quickly. despite taking aim at big tech today, those stocks ar

congratulations to you chairman powell. after princeton, jay powell attended law school, but he opted instead for successful career in investment banking and us treasury among others. in 2012 president obama appointed the federal reserve board and in 2018 donald trump elevated him to the chairmanship of the board. trump as you no doubt know has complained many times that this was a terrible choice but almost everyone else on the planet sees it as a fabulous choice. we are deeply grateful for having him here right now. and spending time with us. thank you very much for being here. i want to start, are you sleeping well? >> thanks for having me here, welcome. i would like to say hello to my fellow classmates from 1975. if you permit me i want to start this by noting this is a difficult time for many americans. people have lost loved ones. many millions of lost their jobs. there's a great deal of uncertainty about the future and i think we are to start by acknowledging that fact. the fed is strongly committed to using our tool

jay powell is not on that island, no >> no, jay powell is buying bonds today. actually -- >> by the way -- you got to buy the bonds but you want to get through everything, including financing understa water which t back to retailers and how many retailers are actually paying their rent we'll talk about that when we come back. we got to head off >> we solved it in the first ten minutes. >> right if you'd gone to medical school. >> how many people died because they thought it was -- they didn't know it was swelling. >> you just scare the heck out of all of your patients. scare them into life >> i took the drug it didn't work for me but it worked for maybe 200,000 others. >> well, thankfully, you're healthy. that's what we can be thankful for. all right. we've got to take a break. we'll be back, big rally in store when we start trading 18 minutes from now a lot more "squawk on the street" coming right back. because it's the right thing to do. we're also giving payment relief options to eligible members so they can take care of things like groceries before they wor

they don't have the optionality that jay powell has. jonathan: if the federal reserve hadn't stepped in the way they had back in march and into to april, can you imagine how much worse things would be globally? remember how big demand was for the u.s. dollar in march? can you imagine the state e.m. would be if the federal reserve hadn't addressed those issues? tom: no question about it. absolutely. question for jay powell a little bit later from the senate banking committee. we will take that full come alive on bloomberg tv in bloom or radio. that in full, live on bloomberg tv and bloomberg radio. also onounting you down u.s. retail sales. we will bring them to you at 8:30 eastern, in a roundabout 49 minutes. from new york, this is bloomberg. the first word news, i'm ritika gupta. today, president trump will sign an executive order on police conduct and reforms. it is in response to nationwide protests over george floyd at the hands of the police. it urges police to adopt stricter use of force policies. there will be more federal grants

somethink powell knocked sense into the market. losing,ownturn, the s&p that was about liquidity and fears. liquidity, plenty of things were opening up, and now we are talking about second waves, risk on-risk off. we have gone risk off because of -shaped.ity of the u american banks are trying to tell me it is a v-shaped. it is a world out there. u-shape and it will be slow and patchy, the recovery. if what is pushing the dollar around is risk on-risk off rather than anything else much here, what is your actual outlook for the dollar toward the end of 2020? bearishbullish, are you ? david: mildly bearish but actually both. d pickup, whathape the government will need is buying power to keep pushing the economy. have buyingke nokia power and they have to keep going. sterlings will struggle. the dollar squeezed in between. we can talk about emerging markets. if you have fiscal firepower. central banks doing crazy stuff. have not got fiscal power and your fiscal -- your central bank will have to pick up the slack. that is your euros and

economy,erds of this secretary mnuchin, chairman powell on capitol hill. tom: it has been a six months that has been totally unpredictable and has led to this word going on forward, which is uncertainty. uncertainty and economics, uncertainty across investment. says it isnuchin across finance as well. to me, the hard question here, forget about hong kong, about boris johnson talking about the fdr new deal for your united kingdom. windows thehing is next round of fiscal stimulus appear. jonathan: there will be huge pressure to deploy yet. the message from chairman powell is we will not fully recover until we control this virus in this country. and the radical uncertainty being expressed by policymakers -- by fed chair jay powell as well as steven mnuchin gives people certainty that we are going to get more stimulus both on the fiscal and monetary policy front. among the things i am watching today, we are getting a further read on the housing market after the pending home sounds data -- pending home sales data. we are taking a look at where prices are increa

i love powell but it's the other two js we need you can listen to jay powell and him saying he will do his part to get everything back it is not a problem for the fed or for mnuchin it's a problem for phrma home builders can't solve it no only the pharmaceutical companies can boat this pandemic until then we can see stocks rally, but only so high they can go without a vaccine and now you can see they are being repelled. this is as high as we can get absent a vaccine until then you are looking at it stick with the cramer covid index, especially on days we get way too optimistic about a recovery kevin in illinois. >> caller: love your show. have been watching since the first day. two things i love politics and trading. 22 years chicago board of trade and worked on a presidential campaign i want to know your thoughts on snap chat and social media and what your thoughts are on civil unrest >> civil protest in the name of innate race in this country is good i don't know how to rate it with the stocks snap chat is doing well because they agree there is no free speech for racism. if facebook

powell, that i'm in favor of a lifetime appointment to you. i wouldn't do that i wouldn't shorten your life like that. you're too good of a guy that wouldn't be fair at all but i do have to commend you i think you're one of those what i would call those republicans of old, stable, dignified, intelligent, fair, charitable. i think everyone has been looking to you for guidance and i think you've been the right person at the right time, and again, i do want to commend you. i also want to commend you for highlighting the disproportionate impact that this pandemic has had on communities of color, latinos, african-americans and especially the poor my district is composed of all of imperial county, which is a border county here, to mexico, and part of sandio county. 70% of my district is latino, and unemployment was a striking 70% in april that's what we had in the great recession, 20 to 25%, and the bureau of statistics says the rate in sandio county also extended to 7% chula vista, the next city up, and then the city of san diego the unemployment h

john hendel, go ahead. >> thank you, peter bread thank you chairman powell. to keep with the coronavirus pandemic a little bit i also wanted to turn to the fcc to keep american connected pledge and this is something that chairman pai put forward back in march and essentially asked isps do not cut off consumers who might be suffering financial hardship due to the pandemic and there are a couple different pieces to that. he has extended that now a bit through the end of june and that is coming up relatively soon. i am wondering how is your membership be doing that and is there concern about extending beyond june and does congress have funding for that? what are you hearing right now and consume helping consumers and the cost to do it? i know most don't want to cut off when one might have a rough time right now but, you know, what about the past, is it feasible to keep going and if so, how long? >> guest: real commendation to chairman piper he jumped on this quickly. as were all the companies were rapidly going to in acceleration to deal with these changes and h

that from fed chair jay powell. chair powell: the extent of the downturn and the pace of recovery remain expert merrily uncertain and will depend in large part on the virus. using ourmitted to full range of tools to support the economy in this challenging time. discussedes we include explicit for guidance and asset purchases. we also reviewed the historical and foreign experience with targeting interest rates along the yield curve. whether such an approach would complement our main tools remains an open question. we are not even thinking about thinking about raising rates. after the crisis has passed, we will put these tools back in the toolbox. the report was surprising. we are pleased. we hope we get many more like it. but we have to be honest, it is a long road. the rising joblessness has been worse for lower wage workers and women, african-americans, and hispanics. there is no place at the federal reserve for racism, and there should be no place for it in our society. francine: let's get to our big interview. sc

we saw powell yesterday suggest in the u.s. it would be 9.3% by the end of the year. we have seen extremely high unemployment numbers forecast throughout the developed world and beyond. against that backdrop, it is inevitable we will have a demand-side crisis. if you think about fiscal measures, we have seen measures for very different cap -- from various different countries that a lot of the different stimulus is going into people's bank accounts. is normal to save more when people think they will lose their jobs. they will not be spending either. we have only seen the beginnings of a demand-side shock, that suggests there is very little risk of a v-shaped recovery. i think that has been the case all the time. francine: what does it mean for where you see the dollar by year end? jane: i think there is at some point in the coming months the in safell of another haven, so another move of the dollar and the end, the swiss franc. we are seeing concerns about a second wave emerging in the u.s. , texas, california, or whether or not we will see this later in the year when

as you can see, we are actively at work on that. >>> next, gina -- >> hi, achieve powell. thank you for taking my question i'm -- the forecasts are pretty low and cross the forecast horizon -- do you think -- inflation -- coming years, why is policy appropriate now -- and why not -- you know at it currently, and as we talk a bit about what urgency we're returning back to the 2% target? >> the policy stance is appropriate. remember, we are using our emergency lending tools to an unprecedented extent we have asset purchases, and we've now said we won't go lower than this, but prepared to adjust as appropriate. so all of our tools are in use in a strong way. so what we're waiting for is to learn more i think actually, if you look at the may employment report, it's a pretty good -- probably the biggest data surprise that anybody can remember it's a pretty good illustration of just how uncertain these times are. the economy is reopening we're going to learn a whole lot about the path of the economy in the next incoming months, so that's what we're looking for. in terms of infla

we wait for day to of chairman powell -- for day two of chairman powell on capitol hill. tom: we've got someone here right now, wonderful to speak to. i want to take you back 14 years to january of 2006, where president bush made a brilliant set of two appointments. one was randall kroszner, a great financial economist. the other guy was out of newman "butch cassidyd and the sundance kid." who is that guy? he was the youngest guy appointed ever at 35 years old, and there was a lot of grumbling about kevin warsh. i will tell you this, kevin warsh had a distinguished term at the fed as everybody was saying when he was leaving, why does that guy have to leave? jonathan: we all know him now. kevin, always great to catch up with you. i just want to go back to february. the fed can't wait to respond to the coronavirus. that was you in "the wall street journal." i think everyone on this program agreed with you. now the conversation has switched almost 180. has the fed stepped in too far? has the fed done too much? how do you respond to that now? kevin: it is a great question. to

jay powell at 10:00. in moments, we are honored to bring you the secretary of labor of the united states after the history made yesterday at the supreme court. jonathan, that was remarkable to see what the supreme court announced yesterday, the immediate impact of those for and those against. jonathan: making some serious progress on a whole range of issues in this labor market, particularly on discrimination. we've heard about the social injustice of the last couple of weeks. but we are making progress, and i think that is key. equity futures are positive 43 points on the s&p 500. treasury yields, the curve is steeper. chairfederal reserve navigates that with the senate banking committee and how things progress on infrastructure, as we report this administration is looking at a $1 trillion plan. tom: lisa, i thought of you this morning when we figured out another $1 trillion for infrastructure, and kevin cirilli making it clear we may not see that, but we begin to buy corporate bonds today. investmentg l

that he owns jay powell and the stock prices go up and he makes money with the money that he printed oh that's interesting so is and better than the guy at the end of the block is counterfeiting money in their basement and then buying lots of gold jewelry and cars and boats and then say wow that guy's got a lot of wealth yeah he's spending the money just printed is it any different no it's not any different not at all different now let's follow up on that that story that you've created of a neighborhood where one guy gets a print all this money and he buys up all the wealth producing assets of the town the still pretty production company in the steel manufacture he buys the auto manufacture and he buys the actual underlying land to most of the property so has to innovate everybody has to pay rent and then people realized then he gets found guilty of like counterfeiting but he just has to stop doing ok like it but he still gets own the wealth his family gets inherit the wealth and they get to go forward obviously they're going to be deceived everybody else in the entire economy is dis

powell says he will be voting for joe biden this november. powell is a republican, although this is now the fourth consecutive election in which he endorsed a democrat for president. barack obama twice, hillary clinton in 2016 before this. powell also is the fourth former chairman of the joint chiefs to publicly rebuke the president in the past week. all four have taken issue with trump's use of the military to clear peaceful protesters from lafayette park last monday. >> we have a military to fight our enemies, not our own people. and our military should never be called to fight our own people as enemies of the state. >> as i understand, it was a peaceful protest disturbed by force, and that's not right. that should not happen in america. >> the idea that the president would overwhelm, take charge of the situation using the military was troubling to me. >> amid public criticism, trump said he ordered withdrawal of the national guard troops from washington, d.c. that's where they had been a ubiquitous presence around the white house. he respo

the program will entail mostly individual company debt rather than exchange traded funds well powell told the house financial services committee on wednesday over time will gradually move away from e.t.s. and move to buying bonds powell said it's a better tool for supporting the quiddity and market functioning well joining us now to discuss the best co-host investigative journalist and michael pentode but let's start with you explain this corporate bond buying program to us and exactly how it works you know a lot to talk about here but essentially back in late march the fed announced they were going to embark on really 2 facilities which they said would jump start this $9.00 trillion dollar corporate debt market and what they said they were going to do was essentially go about buying bonds directly from the issuers in one case and in the other case they would then purchase them on the open market now as you just said the german drum powell on wednesday came back and said that rather than doing that through e.t.s. they would now kind of focus on buying them directly from the issuers t

longer yours right well let's keep in mind that your own powell is the big shareholder in stocks and he's the guy gave blackrock the job of buying stocks for his back the central bank and he gave the money to do so so he prints a lot of money he gives it to blackrock and then they buy stock in these e.t.f. that he owns jay powell and the stock prices go up and he makes money with the money that he printed oh that's interesting so is and better than the guy at the end of the block is counterfeiting money in their basement and then buying lots of gold jewelry and cars and boats and then say wow that guy's got a lot of wealth you know he's just spending the money just printed is it any different no it's not any different not at all different now let's follow up on that that story that you've created of a neighborhood where one guy gets a print all this money and he buys up all the wealth producing assets of the town the still pretty production company in the steel manufacture he buys the auto manufacture and he buys the actual underlying land to most of the property so has to innovate e

general powell's endorsement does not matter. we respect him as an individual. let's be honest about his track record. he has a track record of not supporting republicans. so i just ask general powell to look at the record of joe biden and ask him were you standing by him socially and politically when he was locking up black americans for his support of the 1994 crime bill? do you support him in the racist things that he has said as the 44 year politician talking about black people and talking about indian americans? do you support him when he tried to segregate, called for the segregation of iraq. on a policy matter, general powell cannot say that president trump has not been there for the community which colin powell represents, the black community, in the sense of the economic achievements, historically black colleges and universities, criminal justice reform. there are a whole host of things that the president has done to impact the black community and i'd ask general powell how has joe biden stepped up. we know that i guess general powell is more concerned