the economist claudia some worked with janet yellen at the federal reserve. janet yellen is memorable. i worked with her when she was the vice chair at the federal reserve and when she was at the chair and i work very closely with her as she has been the president of the american economics association. she is absolutely the most qualified person to be secretary of the treasury. i'm really excited that she is going to be taking on that

the council of economic advisers, the federal reserve , economic advisers, the federal reserve, and now she will be at treasury. that speaks volumes about the skills she has is a policy maker, the good decisions she has made. she is not perfect, she does not have a crystal ball, i know no—one who works hard and is more diligent and more thoughtful. she wants people to she listens and she adds. she is very much and she adds. she is very much a leader and one of the things that made it such an honour to work for her at the federal reserve in addition to learning so reserve in addition to learning so much macro policy was that she truly inspired her staff, including myself, to bring everything that they could, and a leader cannot do it all out if they have everyone working in the same direction doing the best they can, you can accomplish a lot in this administration is going to need to really bring its a game. administration is going to need to really bring its a gamelj to really bring its a game.|j knew that she moved the policy at the fed away from inflation to maximise employment was

federal reserve. a majority of americans don't have a lot of their wealth in equities we see right now record equity markets and 28 times forward earnings in the s&p 500 so this income divide is only being exacerbated by national lockdowns which really disenfranchise the poorer segments of the population. many students in the poorer segments are absolutely disappearing from the education system, exacerbated by the federal reserve policies which are doing nothing but enriching the major corporations while small mom-and-pop shops are going out of business. charles: people are seeing it. kathryn, steve, danielle, see you a little later. fantastic insight. i really appreciate it. i know the audience does as well. >>> you know, could it be, folks, lawmakers, white house everyone involved finally getting together with a second round of stimulus? this to help americans right before christmas? i will ask florida senator rick scott about that next. restaurants and other businesses have had enough of lockdowns.

the federal reserve said, we want to have a target of 2% inflation. a tax.ly inflation is what they are saying is we are going to tax americans next year at 2%, wink, wink. you won't see it. we will adjust it. it is benefiting, the stock market is at an all-time high and people on the lower rungs are getting squeezed out. rather than the fed shooting for 2% inflation target, how about we go back to the constitution at a 2% excise tax that will allow congress to distribute the funds and it would be in line with our constitution. how about we get back to the constitution? host: this is allie from rochester, minnesota. caller: good morning. host: go ahead, sir. $600 would definitely help my family .ousehold gone withinbably be a day. folks,s listening to most of the people it looks like don't need the check, or will save it or pay debt. that shows that people are not in the same situation. it would be better if they surveyed the people before they theyhe checks, or maybe if would only send stimulus checks to the people who were unemployed at this time. g

reserve that we are the independent policymaking and monetary policy decisions of the federal reserve and i want to thank you for your leadership and i will yield back. >> thank you very much. the gene man from guam who is also the vice chair of the financial services is recognized for five minutes. >> thank you, madam chair and secretary, thank you for making time to be with us here tod. i wanted to open with some questions regaing the main street ldingrogram, mr. chair man. are you filiar with howuch has been authorized? we made about 5 billion. >> so those programs are administered by participating [inaudible] we work through the banking system and access borrowers through the banking system. we administer the overall programut the banks are facing against the actual borrowers. >> so these that are receiving the funds, are they required to be investment grade borrowers? >> no. >> that brings me full circle because the liquidity facility and the ability to allow the municipalities below investment grade to be able to access that liidity and it was mentioned in the heang that the fed

reserve does not provide funding to the non- investment entities and yet indirectly the federal reserve as you mentioned -- >> the territories there are no investment grade overall sovereign investment grade but we work with you andour office to work with the facilities and the name of it doesn't come to mind. we als work with you to get in touch with of the treasury department under various programs that might be useful. the overwhelming mority of the municipal borrowers are investment grade and we did limit the facility to that. >> the reason i'm reading this point mr. chair man is because i want to highlight the interest because if it is the requirement for the federal reserve to be providing financial support as a lender of last resort and it's not opposing the same requirement on the private sector entities accessing why are we doing so for those trying to access i appreciate your staff trying to work with us for workarounds but it's so glaring that these private companies are not investment grade and able to access the support. i'm glad they are. i want them to but we are not allo

an economist worked with her at the federal reserve. janet yellen is absolutely memorable. i worked for her when she was the vice federal chair and when she was the chair. i have worked very closely with her as she was president of the american economics association. she is the most qualified person to be secretary of the treasury. i am very excited she will be taking on that role. it is true when you are heading the fed, but true in her current job, the fed, but true in her currentjob, it is notjust economics, it is politics. the decisions you take in these jobs can have a big impact on the president? absolutely. janet yellen was the chair of the economic adviser decades ago, so she is not foreign to the political sphere and some may not believe it, but the federal reserve, when they are making big policy decisions, which is exactly what she was overseeing as chair, there is a lot of politics going on with inside the board and a lot of working with congress, testifying and pounding the pavement on the hill. this is absolutely a more political position and she brings experi

us economist claudia sahm previously worked with janet yellen at the federal reserve. janet yellen is absolutely memorable. i worked for her when she was the vice federal chair and when she was the chair. i have worked very closely with her as she was president of the american economics association. she is the most qualified person to be secretary of the treasury. i am very excited she will be taking on that role. it is true when you are heading the fed, but true in her currentjob, it is notjust economics, it is politics. the decisions you take in these jobs can have a big impact on the president? absolutely. janet yellen was the chair of the economic adviser decades ago, so she is not foreign to the political sphere and some may not believe it, but the federal reserve, when they are making big policy decisions, which is exactly what she was overseeing as chair, there is a lot of politics going on with inside the board and a lot of working with congress, testifying and pounding the pavement on the hill. this is absolutely a more political position and she brings experi

i hope the american people get reassurance the federal reserve will be part of that. it's time for us to use every tool available to rise to meet this challenge. sec. mnuchin: we will now -- sen. crapo: we will now introduce our witnesses. secretary mnuchin, you may proceed. sec. mnuchin: thank you. ranking member brown and members of the discusse i'm pleased to the unprecedented response to support the coronavirus pandemic. we continue to work to implement the historic cares act with speed, efficiency and transparency. our job not be complete until every american gets back to work. when i last testified for you in september, i stated america was in the midst of the fastest economic recovery from any crisis in u.s. history. i'm proud to say while there are still more work to be done, that statement is even more true today. in the third quarter, gdp grew by 33 percent, beating expectations and nearly doubling the previous record set in 1950. americans are getting back to work, the october jobs report showed the economy has got back 12 million jobs since april. more tha

this is someone who ran the federal reserve. she is going to work very, very hard and knows every trick in the book to make sure that the federal reserve is doing its work. where we see really bad transparency problems, on one hand the federal reserve didn't spend the money. that's a problem, i agree with you, chris. but where we start with the paycheck protection program is in some ways worse. we have been crying out, my office has been pushing for transparency for this program from day one. we finally got that data yesterday, and what did we learn? we learned that paycheck protection program money designed to support and hold up the smallest businesses in our economy went to trump and kushner properties. and 600 billion of it went to just ten -- sorry -- i want to get this right -- 600 businesses, each got $10 million. 600 businesses, each got $10 million, and yet we can't get the senate majority leader to give people to put food on the table and keep a roof over their head. >> how do you stop that from happening again in term

can the federal reserve do anything about individual groups or are they paying them lipservice? >> it's definitely difficult for the fed because the fed's mandate is macro economic policy, make sure the whole of the u.s. is doing well. in recent years and through much of the pandemic, there have been calls starting with janet yellen and many federal reserve bank officials saying that we need to pay more attention to demographics and looking at measures on unemployment and labor force participation among different slices of the population. it starts off with looking at the data and paying attention and recognizing that there are these issues. in essence, the fed has moved forward in doing so. i would also say that the fed mandate, its new way of looking at inflation, looking at inflation targeting involves more people with respect to rising inflation. withlows greater patience allowing reese to fall but not the overall unemployment rate but on employment rates for persons of color and women and indigenous groups. vonnie: the latest data this morning showed retail sales negative.

secretary steven mnuchin and federal reserve chair jerome powell testified before the federal reserve oversight committee. at 2:00 p.m., the house is back for legislative work on a bill requiring the securities and exchange commission to prohibit and delist any foreign company whose public accounting firm does not adhere to u.s. auditing standards. on c-span two, the senate is back at 10:00 a.m. eastern to consider judicial and executive nominations. 9:15 am, a senate armed services subcommittee hears from the navy and marine corps leaders about military readiness. that is followed by a homeland security subcommittee hearing on the government's response to cyber threats during the coronavirus pandemic. treasury secretary steven mnuchin and federal reserve chaired room powell encouraged congress to take action on additional coronavirus relief while testifying before the senate committee. secretary mnuchin also faced questions about his recent decision to end several federal reserve emergency loan programs. this hearing is almost 2.5 hours. >> 3, 2, 1. this hearing will now come to orde

these are all things that she has thought about and dealt with at the federal reserve and as and i can to make for many years. i think she will have a very six .ctive and constructive tenure lisa: there's been some concern about whether she will continue the strong dollar being a good thing narrative, or whether she will piggyback with what president trump was saying and what a lot of economists say, which is that a weaker dollar will give a tailwind to the u.s. economy. nathan: i think this is one of the key issues on the international side of the treasury. on one hand, i think there might be a case that the strong dollar alicy has been around for long time. can we still say that a strong dollar is in the u.s. interest, and particularly in the interest of u.s. workers? i think for some time, organized labor has challenged that. on the other hand, the strong dollar did a lot of positive and constructive things that policy in the international realm, where the united states' moral standing said we will play by the rules, and we expect others to play by the rules as well. it,hey want to

the federal reserve has nine facilities. what they have been doing is they have been underwriting much of the economy through giving loans to these facilities. the only reason we got out of the great recession was because of the federal reserve. congress putn barriers on everything the democrats wanted to do, that obama wanted to do. proposingse, to me is a, kazi pilot aimed -- a at thee pilot aimed stimulus bill. one of the things you need to understand about the reason wall street has been doing as well as it has is because of the federal reserve. the federal reserve has been propping up many of these major industries that would ordinarily have gone under. that is don in new mexico giving us his thoughts on the federal reserve portion. those issues reportedly getting resolved. today is the day a move could take place on the senate side when it comes to the coronavirus relief side. bill would keep the federal 12:01ment funded past tomorrow. the house in the senate expected both. you can follow those on c-span 1 and 2. themf

reserve that we honor the independent policymaking, monetary policy decisions of the federal reserve. i want to thank you for your leadership. i yield back. rep. waters: thank you very much. mr. sanleman from quan, nicolas -- the gentleman from guam, mr. san nicolas, is recognized. reppo san nicolas -- >> thank you for taking time to be with us here today. i want to open with questions regarding the main street lending program, mr. chairman. are you familiar with how much has been authorized for the mslp at this time? chair powell: i am. we made about $5 billion in loans, a little over 5 billion in loans. about 5 billion. those programs are administered by banks, correct? well, let me yes, put it this way. we work through the banking system. we administer the overall program, but the banks are facing up against the actual borrowers. del. san nicolas: these borrowers receiving the mslp funds, are they required to be investment grade borrowers? chair powell: no. del. san nicolas: that just brings me full circle, mr. chairman, because when last we spoke, i was discussing the municipal l

the federal reserve will work with the treasury department to control any rise. markets will be fine if we see a rise in treasury yields, just as long as it is not a rapid rise. to me that would really help small economies, those cyclicals, and probably less helpful for the big, large companies? jonathan: peter tchir, academy securities, have a fantastic christmas if we don't talk again. on this market. lisa abramowicz, wednesday, the fed, you asked about the question of yields going through 1%, do they give it the green light or suggest they are ready to step back in? lisa: a survey of economists talked about how they expect them to tie their increase in longer rated bond purchases to financial conditions. but everyone is expecting them to increase the length of the bond maturities again. you have to wonder, what you're hoping to achieve at a point and you don't necessarily see financial conditions exactly tight? jonathan: i think there's a big difference between hoping to achieve something and hoping to prevent something, and i think at this point for the ecb a

this is somebody who ran the federal reserve. she is going to work very, very hard, and knows every trick in the book to make sure that the federal reserve is doing its work. where we see really bad transparency problems. on the one hand, the federal reserve, it didn't spend the money. and that's a problem, i agree with you, chris. but, what we saw with the paycheck protection program is, in some ways, worse. we have been crying out. my office has been pushing for transparency for this program, from day one. and we finally got that data, yesterday, and what did we learn? we learned that paycheck protection program money, designed to support and hold up the smallest businesses in our economy, went to trump and kushner properties. and 600 billion of it went to just ten -- sorry, 600 -- i want to get this right -- 600 businesses -- 600 businesses, each, got $10 million. 600 business, each, got $10 million. and yet, we can't get the senate-majority leader to give people money to put food on the table, and keep a roof over their head.

that brings in line the guidance that the federal reserve has provided for interest rates. brings in line the asset purchase guidance, which is pretty much what was expected. and then a whole bunch of stuff that reads exactly like it did last time. the reason is because it's the same they are committed to using their full range of tools, economic recovery remains well below beginning of the year, weak demand holding down inflation, weak oil prices, the path of the economy the fed has said depends on the course of the virus and the health crisis will continue to weigh on economic activity. it continues to aim for inflation above 2%, quote, for some time. and is maintaining zero rates until maximum employment and price stability of 2% inflation is achieved. finally, one little note, or major note, the fed is extending the emergency dollar swap lines it put in place with nine foreign central banks. back to you. >> most of them think no changes in interest rates into 2023. only one saying rates might go up in 2022 did i hear you say that the prediction of economic growth for 20

have a greate will working relationship with the federal reserve. we don't have to worry about that. vonnie: we saw her come out and sit at the table beside the podium alongside neera tanden, who will be nominated to the office of management and budget. do you think that will go tanden willt neera be enough to satisfy both wings of both parties? kathy: that is a tougher call. yellen has a lot smoother sailing. whindinds arelitical right now, it may be difficult, especially if republicans pushback. we know that lindsey graham has already expressed some concern that perhaps she is too liberal in some of her thinking. we will see. it is hard to handicap these things ahead of time. let's get to the president-elect for these announcements. --sident-elect biden: ebita even if it was away from the traditional gatherings of family and friends, from those that we love, but i hope you had a great thanksgiving. times are tough but i want you to know help is on the way. last week i announce the nominations and staff or critical foreign policy in national securi

it's the business west still living in a very uncertain world thanks to the coronavirus federal reserve chief to run pal made that clear in a speech on wednesday the fed keeping rates near 0 and promising to continue buying government bonds until the economy makes substantial progress steps designed to reassure financial markets and keep long term borrowing rates low as we have emphasized throughout the pandemic the outlook for the economy is extraordinarily uncertain and will depend in large part on the course of the virus the recent news on vaccines has been very positive however significant challenges and uncertainties remain with regard to the timing production and distribution of vaccines as well as their efficacy across different groups it remains difficult to assess the timing and scope of the economic implications of these developments and what is the role that pain let's check in with you in scoring york is that a thumbs up for another big stimulus package. overall it is the only thing it's not drone policy decision but republicans sent to democrats have to get together and we

one reason you see bitcoin and gold starting to rise is that the federal reserve is going to blow it. the big word is if if they continued on the present course, no doubt next year will be again buster year that we have the three obstacles, georgia, the federal reserve and regulation coming back again. connell: good stuff, steve forbes, have a great weekend, always good to talk to you. meantime it's about to shake things up, tesla early in the day hit an all-time high into the s&p 500 on monday, then it turned lower and closed higher, with heavy volume investors are tracking the index and had to buy the stock by the end of the day and people selling in the trading volume, 180 million shares of stock settling at the end of the session, a turnover of $122 billion for tesla. the former investment banker, we talked about tesla as a stock story, an amazing story and now with the big boys in the s&p 500 as a monday, i thought maybe would start today but it starts on monday and the people say let's take a breather and take some profits if i own tesla. >> this is the absolute perfect 2020 st

out of theking federal reserve bank of new york. richmond, atlanta, they have all done some really interesting research collaborations. john: as the new administration begins to rebuild the scientific enterprise around climate change , which has suffered a lot of blows over the last four years, and restore scientific integrity, i think your insights into those data gaps will be very valuable to cross over as they are thinking about what investments to make in terms of that scientific enterprise more generally. -- thationed that you just has a network on a greening the financial system. there was some blowback by members of capitol hill. they suggested the fed was succumbing to outside political pressure and that the intention of this was really just to target unfavored industries rather than assess risk. how do you answer the critics? gov. brainard: yeah, so i would actually say that we -- this was one of the recommendations that was made in the cftc report. in fact, we saw a statement from a number of u.s. banks supporting our memb

the federal reserve projections showing unemployment ending at 4.2% in 2022. connell. connell: seem, edward powell would basically agree what fuhrman was talking about there the need for fiscal stimulus as he mentioned it himself but what about the state and local money as blake talked about a few minutes ago looks like it will be cut out of the new package? reporter: federal reserve chairman said the concern is he said state and local government are very large employers. they have been laying off large numbers, people mainly in education. powell said he can't understand why that is happening. specifically they're looking into it but what to do rests with congress. back to you. connell: all right. edward, edward lawrence reporting live for us from washington. we have a "fox business alert" now with the new antitrust case. charges against google, the texas attorney general ken paxton announcing a multi-state suit saying quote in internet goliath used its power to manipulate the market, destroy competition, harm you the consumer. texas joining up with the justice departm

chairman powell, the federal reserve is the largest investor in mortgage securities. would you share your thoughts about the impact to the housing market if an end to conservatorship were to occur prior to the time when pandemic impact has been eased? chair powell: i would just echo the secretary's point that i like towould certainly the housing finance sector and system standing on its own two feet, with a lot of private capital behind it. thatthink it is something time needs to be taken on, and i would applaud the new capital standards that have been put in place, but that capital still has to be raised. i do think it is something to do carefully, and i know that is consistent with what the secretary is thinking. sen. rounds: thank you. i appreciate also the flux ability that are banking regulators have given financial institutions. we have wanted to work with experienced with the covered related hardships. no one thought that the end of it would last as long as it has, and sectors like the airline industry, travel, hospitality all still face challenges. what do we

reserve system. he's served on the board of directors of governors since 2012 and as the chair since 2018. chair powell has previously testified before the committee and i believe he does not need any further introduction. without objection your written statements will be made a part of the record. each of you will have five minutes to summarize your testimony. when you have one minute remaining, the yellow light will appear and at that time i would ask you to wrap up your testimony so we can be respectful of the committee members time. you are now recognized for five mites to present your oral testimony. >> ranking mbers of the committee, i am pleased to join you today to discuss the

federal reserve pays interest to public on reserve that goes outside of federal government, notic counting first asking the second, you get the fed's remittances that lowers net interest payments. this third issue. is you want to be forward looking. the latest cbobeys line said over next decade, the debt is jumping up but then relatively stable as a share of the economy, you don't over next decade see debt spiraling, you see it being spai stable. over 30 years you see is rising about after about a decade. if you use proper definition of ourfcurrent law. that stithat -- is stable, realt interest payments are low, compared to where they were historically. they rise up still comfortably within the historic range. we'll talk on the panel more about uncertainty, i want show if you are trying to forecast basketbalbudget deficit 4 yearsn advance it will be plus or minus about 6%age points of gdp to get a 90% confidence. deficit 4 years from now might balance budget, with a 10% of gdp deficit, if you add that and look at debt, debt in 20 50th be from 150 to lowest it has been. how we respond uncer

reserve, that we allow the independent policymaking and monetary policy decisions of the federal reserve. i yield back. rep. waters: thank you very much. the gentleman from guam, mr. san nicolas, who is also the vice chair on the committee of financial services, is working on for heisman its. ok. serrano: us -- guy: you have been listening to treasury secretary steven mnuchin and the fed chair jerome powell testifying before the house financial services committee. if you would like to continue watching or listening to the testimony, you can certainly do so on your bloomberg terminal go>.g the function live < what will be be talking about next? we will speak to craig fuller, ceo of freightwaves, on the supply chain and logistics challenges. this is bloomberg. ♪ guy: -- ritika: this is "bloomberg markets." coming up later today, we will speak with nobel laureate paul krugman. that is at 4:00 p.m. in new york. this is bloomberg. ♪ let's check in on the bloomberg first word news now. for the first time, a coronavirus vaccine will be available in a western country. regulators in the u.k.

the federal government pays some interest to the federal reserve. that is just within the government. the federal reserve pays some interest to the public on its reserve. that goes outside the federal government, not counting the first, at any second, you basically get the fed's remittances, and that lowers net aninterest payments. an ideal measure would take this into account. the third issue with debt to gdp is you want to be forward-looking. the latest cbo baseline says that over the next decade,. debt is jumping up. . but then it is relatively stable as a share of the economy. over the next decade you don't see that spiraling. you see debt being relatively stable. you can look out over 30 years. in the cbo baseline you see the debt rising after about a decade. if you use a proper definition of current law that includes the fact that social security needs to be reformed because it cannot pay benefits among the amount it takes in, that is also relatively stable. real net interest payments, same story. they are quite low compared to where they were

that is not only due to what we have done here but what the federal reserve has done. and over the past several months the unemployment rate has gradually kicked down in november. we will rebuild economy and put more people back to work who are eager toli get back to work. the reality is it's going to take a n while. unless we take action, they're sure to face it even more dire economic strain ahead. the day after christmas which will leave millions of americans without the jobless benefits that they and their families need to survive. that would be a shame, it would be embarrassing and will be flat negligent on our part. we did not intervene to make sure we established a theseuum of support for folks who through no fault of own find themselves without work. these are the same people who again through no fault of their own had the rug pulled out from under them this year, earlier this year. we cannot leave them hanging weea have to help thirdly have to support her small businesses. every time it's a number like that of $3 trillion i have to pinch myself that we are spe

[sneezes] the sanrked for francisco federal reserve bank, she has served as chair of the federal reserve. she will be the first person, the second person, actually, to serve both as fed chair and are treasury secretary. she comes with eminent qualifications. i had a very straightforward relationship with her at the fed and i think she will do a fine job. texas,onie, grand, republican line, go ahead. representative, someone spoke about the immigration system moments ago. i have a comment about that. mr. biden needs to know that there is already more illegal immigrants crossing our borders. there were 70,000 last week. there is a caravan on their way up from honduras and two more behind them. mouth ando shut his stop talking about what he's going to give away. he is dangerous. he needs to just stop talking about it. what he is promising them that half of the americans don't get. host: sorry, caller. representative, go ahead. guest: this is an important issue. president trump worked with the president of mexico and they did a good job forestalling those caravans, coming up with a processing

treasury secretary steven mnuchin and federal reserve chairman jerome powell encouraged congress to take action on additional coronavirus relief while testifying before the senate banking committee. secretary mnuchin also faced questions about his recent decision to end several federal reserve emergency loan programs. this hearing is almost 2.5 hours.

and we're going to stop and debate at length a policy of the federal reserve. give me a break. let's do the right thing for the people across america, save this debate for another day. >> this is just one republican that has this concern. are other republicans holding it as well? is he getting backing? is that why there is this signal? >> the senate is designed for one person to stop the train. and he knows it. i hope that -- i've spoken to some of the republican senator who's disagree with him privately trying to urge him to save this fight for another day. here is the bottom line. we don't know what the future holds. we hope we've turned the corner. but with this terrible numbers coming in with covid-19, with the economy still having almost 900,000 new applications for unemployment insurance, we want to give the federal reserve an emergency fund which they can use if situations require it under the new president. mr. toomey is suggesting we shouldn't give that to the federal reserve, take it away from them. >> are you confident that something's going to get passed? i know nan

the federal reserve were withdrawing gold in exchange. there was a massive withdraw from private banks, the federal reserve system and the whole financial system was on the brink of some kind of catastrophe. there was an outcry even among conservative people for the president, so herbert hoover to close in the banks. do that again to that it was in the nature of capitalism that you kept the banks open so the bad ones could go under and this was a regrettable process, and hoover refused repeatedly right through the inauguration to allow the banks to be closed even when the federal reserve assured that he was ordered to do so in the wee hours of the morning of the inauguration. hoover knew by this point roosevelt would close banks immediately upon taking office, that he would take the nation off the gold standard to prevent that aspect of the panic and to pursue a policy of inflation. hoover knew what roosevelt was going to do and he could have prevented roosevelt by placing his own restrictions. he refused to do this. there was increasing

the federal reserve has nine facilities. what they have been doing is they have been underwriting much of the economy through giving loans to these facilities. the only reason we got out of the great recession was because of the federal reserve. congress putn barriers on everything the democrats wanted to do, that obama wanted to do. proposingse, to me is a, kazi pilot aimed -- a at thee pilot aimed stimulus bill. one of the things you need to understand about the reason wall street has been doing as well as it has is because of the federal reserve. the federal reserve has been propping up many of these major industries that would ordinarily have gone under. that is don in new mexico giving us his thoughts on the federal reserve portion. those issues reportedly getting resolved. today is the day a move could take place on the senate side when it comes to the coronavirus relief side. bill would keep the federal 12:01ment funded past tomorrow. the house in the senate expected both. you can follow those on c-span 1 and 2. themf

on wednesday the last federal reserve meeting under the trumpeter ministration took place while fed chairman jerome powell reiterated his promise to help the economy until it reaches a full recovery with regard to interest rates we continue to expect it will be appropriate to maintain the current 0 to one quarter percent target range for the federal funds rate until labor market conditions to reach levels consistent. the committee's assessment of maximum of climate and inflation has risen to 2 percent and is on track to moderately exceed 2 percent for some time. in addition as we noted in today's policy statement we will continue to increase our holdings of treasury securities by at least $80000000000.00 per month and of agency mortgage backed securities by at least $40000000000.00 per month until substantial further progress has been made toward our maximum point and price stability goals powell is also urging lawmakers to pass more fiscal stimulus so for more on this let's turn to boom bust co-host christy i and. insider danielle de martino both danielle let's start with you as expected th

of the federal reserve bank of san francisco, mary daly, good morning to you. >> good morning, margar. thank you so much for having me. >> brennan: i would love for you to just give us the bottom line here. we know congress has pumped in $4 trillion into the economy to help with the pandemic. they're about to possibly pass $900 billion in aid. arwill all of this make a specific difference in propping up the economy? >> absolutely. this support is absolutely beneficial. when e think about where we started in march and where we are now, it is remarkable that the me has done so well. that speaks to the resiliency of the american people, and the significant support that the federal reserve and congress has taken to ensure that the bridge over coronavirus is both strong enough and long enough to get americans through this. >> brennan: in this $900 billion emerging deal, it looks like congress are not provide help to state and local governments in terms of financial support. what impact do you think that will have on the job market going into 2021? >> when i think of state and local governm

the federal reserve reaction function is so powerful it does not matter how good things cap. they will not do anything with rates. , the spread about 71 to 72 basis points. a well behaved bond market even with all of this happy talk about vaccinations, 2021 getting a lot better. n.sa: i love exacerbated jo exacerbated with a fear of 2020. jonathan: i will tell you what i'm really upset about. i will back away from the camera. i'm getting a lot of feedback and insults about the length of my trousers or pants. leg,is a tapered trouser for the americans. in europe what we do is we take the suit and we tailor it and we take the pants and we taper it. so it cuts down into the lake from the waist. does that make sense? lisa: i notice you are not wearing purple socks. jonathan: these are blue because i took so much criticism in the last 24 hours. you know the story. how many americans do know that by suits five sizes too big and they never get tailored? you know exactly what i'm talking about. lisa: i know exactly what you're talking about. jonathan: look around wall street. i know

taking paper money to the federal reserve and trying gold to exchange as you could do. massive withdrawal from private banks and federal reserve system and the old financial system was on the brink of some kind of catastrophe. there was an outcry even among conservative people, federal reserve bankers and lawyers for the president, still herbert hoover, to close the bank. hoover refused to do that on the principal it was in the nature of capitalism that you kept the banks open so the bad ones could go under and this was incredible but necessary process. hoover refused repeatedly right through until the inauguration to allow the banks to be closed even when the federal reserve ensured he was delivered an order to do so in the wee hours of the morning on inauguration day. hoover knew by this point franklin roosevelt was going to close the banks immediately upon taking office, he would take the nation off of the goaltender to prevent that aspect of the pandemic and allow them to pursue policy of inflation. hoover knew what roosevelt was going to do, he could have pre- empt

federal reserve and withdrawing gold and exchange as you could do. there was a massive withdrawal from private banks and also from the federal reserve system. the whole financial system was on the brink of some kind of catastrophe. as i say, there was an outcry even among very conservative people, federal reserve bankers and lawyers for the president, still herbert hoover, to close the banks. herbert refused to do that beyond the principle that it was in the nature of capitalism that you kept the banks open so that the bad ones could go under. this was a regrettable but necessary process. so, hoover refused repeatedly right through to the inauguration to allow the banks to be closed. even when the federal reserve ensured that he was delivered an order to do so in the wee hours of the morning on inauguration day. hoover knew by this point that franklin roosevelt was going to close the banks immediately upon taking office, that he was going to take the nation off the gold standard to prevent that aspect of the panic and allow him to influence a policy

there was a massive withdrawal from private banks and also from the federal reserve system. the whole financial system was on the brink of some kind of catastrophe. as i say, there was an outcry even among very conservative people, federal reserve bankers and lawyers for the president, still herbert hoover, to close the banks. herbert refused to do that beyond the principle that it was in the nature of capitalism that you kept the banks open so that the bad ones could go under. this was a regrettable but necessary process. so, hoover refused repeatedly right through to the inauguration to allow the banks to be closed. even when the federal reserve ensured that he was delivered an order to do so in the wee hours of the morning on inauguration day. hoover knew by this point that franklin roosevelt was going to close the banks immediately upon taking office, that he was going to take the nation off the gold standard to prevent that aspect of of the panic and allow him to influence a policy of -- he could have preempted hoover by placing his own restrictions on banking activity

some people think for the federal reserve. what you expect on the forward guidance front in 24 hours? something thatk qualitatively ties how long the fed will be buying assets to achieving the dual mandate. they have anchored rate hikes around threshold of achieving maximum employment, getting inflation to two, expecting and overshoot of inflation. all they are saying is we will keep buying until we are confident we are on the path to that outcome. right now they are saying we are buying assets over the coming months. that is not long enough of a time horizon. something qualitative in nature about confidence the economy is on a recovery path and we expect to be meeting our dual mandate. to me this is not a big change. this is about aligning the language with where markets are already priced in with what fed members are already saying. i do not envision this is any big change forthcoming from the fed in terms of guidance. ,isa: to tie this all together the consensus is looking past the pain and looking towards a post-pandemic w

federal reserve chair jay powell sees light at the end of the tunnel. after the last policymaking meeting of the year, powell is the most optimistic he has been since the pandemic began. at the same time he pledge the central bank will keep providing the economy with plenty of future.well into the france's president, emmanuel macron has tested positive for covid-19. he says he took a test as soon as symptoms appeared. he did not say what the symptoms were. he will self-isolate for seven days and continue to work. the u.k. and european union are heading for a final battle over rights. that is the one major issue in the way of the brexit trade deal. they are cautiously projecting an agreement within days. largelysides have settled their differences over majorther -- over another point. for thetouched 23,000 first time. analyst say the digital currency -- bitcoin and the larger bloomberg crypto index have more than tripled this year. global news 24 hours a day on air and on bloombergquint take powered by 2700 journalists in 120 countries. this is bloomberg

reserve stimulus has just been pumped into increasing asses that the wealthy already have. and really it just goes directly into wall some of it's a few crumbs $1000.00 or $2000.00 maybe was given to the people as a check the most of it is going into increasing asset vices prices of the wealthy causing so much dissatisfaction globally as the disparity between the haves and have seen all well this federal reserve money comes in but also they have no choice but to do that so what we're going to see i believe in 2021 is a shift in monetary policy whereby they recognize that we're moving towards negative interest rates we've you know done as much q.e. as can be effective the stall kids are all time highs while the economy is an all time lays so that for we need to start looking at different forms of monetary policy which is where in step the central bank digital currency that we've talked about in previous episodes not doubt by debt not crates of by banks but injected into the economy and to really disrupting banks and using nice central bank digital currencies to bypass the fi

reserve stimulus has just been pumped into increasing ass's that the wealthy already have. and really it just goes directly into the wall some of it's a few crumbs $1000.00 or $2000.00 maybe was given to the people as a check the most of it is going into increasing asset vices prices of the wealthy causing so much dissatisfaction globally as the disparity between the haves and have seen all well this federal reserve money comes in but also they have no choice but to do that say well we're going to see i believe in 2021 is a shift in monetary policy whereby they recognize that we're moving towards negative interest rates we've you know done as much q.e. as can be effective the stall kids are all time highs while the economy is an all time lays some death for we need to start looking at different forms of monetary policy which is where in step the central bank digital currency that we've talked about in previous episodes not doubt by debt not crates of by banks but injected into the economy and to really disrupting banks and using nice central bank digital currencies to bypas

well it seems like everybody is just begging for another stimulus package to get done federal reserve officials have actually indicated they see little urgency to provide more stimulus by increasing the pace or changing the count the composition of their asset purchases at their next meeting what do you make of this and is it detrimental for them to actually be tightening policy when we are in the middle of this latest wave of the pandemic. well you know i think that the last thing in the world that jay powell wants to be doing right now is tightening anything the reason that the federal reserve is so dependent on the fiscal authorities is that the more uncle sam spends the larger the stimulus package the more product there is for the federal reserve to effectively monetize the more quantitative easing the fed is able to do and i think that that is why it has been why jay powell and other fed officials have been so insistent and saying to their their fiscal counterparts it is completely incumbent upon you to please please please pass more stimulus legislation because again the fed is

the federal reserve and were withdrawing gold in exchange. there was a massive withdraw from private banks, the federal reserve system and the whole financial system was on the brink of some kind of catastrophe. there was an outcry even among conservative people for the president, so herbert hoover to close in the banks. hoover refused to do that again that it was in the nature of capitalism that you kept the banks open so the bad ones could go under. and this was a regrettable but necessary process, and hoover refused repeatedly right through the inauguration to allow the banks to be closed even when the federal reserve assured that he was ordered to do so in the wee hours of the morning of the inauguration. hoover knew by this point roosevelt would close banks immediately upon taking office, that he would take the nation off the gold standard to prevent that aspect of the panic and to pursue a policy of inflation. hoover knew what roosevelt was going to do and he could have preempted roosevelt by placing his own restrictions. again, as a ma