Disaster. Monetary policy works through emulating aggregate demand and that is important now. Ultimately, there is a job to replace lost income. Our congress stepped in and there has not been a faster or stronger response from congress to an economic emergency since the great depression. The cares act and other laws have been passed to more than offset lost income in the aggregate. There will be people for whom that is not true. You see high levels of savings on the Balance Sheets of households. Not experienced the downward cases we were worried about of mass insolvencies of businesses so far. So far, so good, i would say. There are no full recoveries without confidence. Do, which ipart to think we have done. The path forward will be challenging for a number of reasons, and i am sure we will get into some of them. Congresso do more and might need to do more with fiscal policy. The particulars of that are up to congress and not up to us. It is likely more will need to be done in time. Our response has been quite strong. Lagarde, i want to talk to you about coordination and cooperation. During the financial crisis, there was coordination on Monetary Policy. How would you describe the coordination and response to the pandemic . Lagarde if you are talking about the coordination between the National Central banks, i would say it has been spectacular. Both jay and andrew would remember vividly the days and nights when we had to respond and put in place the Global Financial safety net we can offer, which has to do with the swap of currencies. That was particularly the case in the early days of the crisis, in midmarch, when there was andrly a dash for cash shortterm dollar needs on the part of many participants in the markets. The three of us and three other large Central Banks reactivated we have between us to make sure there would be plenty of supply of currency that was most in demand. We did that. As far as the ecb is concerned, we reached out to other National Central banks in eastern europe, Central Europe and various places, and reactivated previous linesines, reopened repo with other banks and a new instrument that is a european repo. Amongst us, we have been extremely engaged, active. Faced theated, we storm together and we really closed ranks. If what you are talking about is coordination between monetary authorities and fiscal thereities, certainly was, contrary to what i saw myself during the great financial crisis when i was on the others in the fiscal front, we saw a much more prompt response on part of the fiscal authorities, and we were very quick and big in order to respond to the situation. On both accounts, amongst theral banks and here in area between the central bank in the national and european authorities, much improved coordination and cooperation. We asked the audience before hand questions and several of them have raised the issue of cooperation. One question is whether Central Banks should be coordinating their actions during more normal times, rather than during crises . What would you say to that . Say theree i would is a lot of cooperation, exchange of views, where we try to coordinate as much as possible and deliver on our respective mandates. We have different mandates. We have a lot in common. Within the Financial Stability , we dowithin the bis talk to each other a lot and we compared notes and try to cooperate as is appropriate in accordance to our respective mandate. That is the way i see it. To there i turn longerterm consequences, let me ask you, governor bailey, but also chair powell, to comment on this. There is quite a bit of criticism that policies are creating unhealthy asset bubbles and there is a question about whether they need to be accompanied by tougher financial regulations. Governor . Bailey it is important to understand the channels. I do not think we should be surprised at the general movement of asset prices in response. It is part of the transmission effect. What we have to watch is the Financial Stability consequences. There has been an enormous amount of work over the last under themore stability board to tackle these issues. When you look at the questions, what have we learned from the last eight or nine months . I would divide it into two parts. This will sound complacent, it is not intended, what i will say is on the banking side, this is the first major test of the post financial crisis reforms and i think so far, the Banking System has stood up to the task. Although it sounds cliche, i will say it what we wanted is we have seen that. Placeforms we have put in , the policy approach has stood up. In the nonbanking world, if you go back to march, it was referred to as a dash for cash, we saw things that caused us concern. Required major interventions domestically, internationally. Areas whereed to there are concerns. The fsb is leading the very important work on nonbanking financial institutions. They are asking two big questions. What did we learn about systemic fragilitys given the nonbank world is so much bigger . Given that Central Banks had to intervene so substantially back in march, in the context of the stresses in financial markets, what do we conclude from that in terms of the improvements we can make, both in the regulations and also in terms of the way in which Central Banks operate . It took us into new areas and gave us new challenges in terms of the nonbank financial world. Chair powell . Powell i would like to say that if you look back over the last 30 years, what you have seen is since inflation cam more instead, the, buildup of financial imbalances and financial instability. We finally internalized that lesson as a result of the Global Financial crisis and went to work to dramatically strengthen it and make more resilient the Banking System and more aspects of the Financial System. You asked about low rates, we are now in an era of low rates but that trend was in place before hand. We have been at that for a decade. I would agree with everything andrew said. Our banks have done well in this crisis so far. Would emphasize so far. It is not the time for complacency. As andrew said, what we do now nonbankacross the Financial Sector where there were some issues. We are looking carefully at what we might learn from that. I do think we took away from the last crisis a very strong focus on Financial Stability. We have a division, a public framework for assessing Financial Stability, we published a Financial Stability report earlier this week. Complete change from the way we approached these from before the crisis. President lagarde, how vulnerable are companies Balance Sheets and bank Balance Sheets to a prolonged downturn . A lot of bankers i speak to are relieved the first wave was not as dramatic. We have yet to see a lot of bankruptcies, a lot of job losses. Do you think they might be complacent . Things i two think it is critically important that we can maintain the financing conditions that have been operating well in order to sustain the economy so far, and to stabilize it and make sure companies can borrow and benefit from almost the lowest Interest Rates ever at the moment, that households can get mortgages at the lowest ever Interest Rates at the moment. Continuing to provide the financing terms at that level over a sufficiently long period of time. The level is important, but the majority of which the terms will be available is also of critical importance. As this crisis is continuing from one wave to another, as lockdown measures are hammering the economy from one set of lockdowns to the other, it is really, really important that the maturity be sufficiently long so the refinancing by the corporate beat with terms that can be expected and that will support the economy. As far as the banks are concerned, i would completely subscribe to what andrew and jay have said. Through the last 13 years, the great efforts undertaken by the Financial Stability board, the regulatory authorities around the world, the banks are much more solid, capitalized, the leverage is much more under control, Liquidity Ratios are supposing sufficient caution on the banks. They havet of that, operated as facilitators, as solution finders as opposed to being at the core of the problem, as was the case 12, 13 years ago. Under the current circumstances, and i would completely second what jay said, i think it is also necessary banks be very attentive to their current Balance Sheets and particularly the health of the Corporate Accounts they finance. It is clear that in some sectors in particular, there will be difficulties, bankruptcies, there will be exit from certain sectors and it will take time for those who exit to reenter in a different area of business. In the meantime, some impairments will have to be nonperformingsome loans will have to be provisions. It is in the interest of the Banking Sector and the Financial Stability at large to do that in a reasonable transitional way so npl shock thato we would fear if it was to happen all of the sudden. I have to say the measures that were taken from a fiscal point of view to provide moratorium, to provide those particular the hardship of the crisis have been a great shield, but that shield will eventually be lifted at some stage and i hope that happens gradually as the provisioning takes place gradually, as well. Governor bailey, i wonder if you could answer the same question but put it more in word brexit. How comfortable are you that the financial world is ready for brexit . How worried are you about a no deal brexit . Bailey we have done a substantial amount of work with the Financial Sector over the years. We have published an assessment of the data regularly. It is being taken very seriously, an enormous amount of preparation has gone on. Calibrate our view on that, i would think the Financial Sector has been able to do a lot more preparation. There are further decisions on equivalents or not, i think the Financial Sector is ready for what will come. I think it has been harder for a large part of the nonfinancial there is the uncertainty about the question of the trade agreements, and that uncertainty remains outstanding. That is much more of a material issue in terms of preparation. It is quite binary for many firms in that sense. We do a lot of work. Our ability to assess preparedness. Obviously, a lot of work has gone on, notwithstanding the uncertainty. We said in a report we published last week, this is a broad 70 hadation, around done a lot of preparations. When you ask them, they have a tendency to say the following we are as ready as we can be. [laughter] i have heard that one. Bailey that leaves you wondering, what do they mean by can be . The best outcome is there is a trade agreement. Outcome all around is a trade agreement and i really hope there will be one. I am encouraged those discussions are going on. That would of course help. Any trade agreement now is a change from what we have had up until now because the u. K. Is leaving the customs union. There will be an adjustment process. I would hope that if there is a trade agreement, there will be some goodwill around some of the inevitable changes that will disrupt things in terms of adjustments and they can be managed more smoothly. I would be more concerned if there is not a trade agreement, we default on terms because the goodwill might not be there, frankly. I think there is every reason to hope and encourage the trade agreement to happen, but it is obviously not for us to determine. Expeld you use the word ct . Are you expecting it . Gov. Bailey i am not going to prejudge where it is going. I will stick to hope. Powell, the fed will now treat the employment mandate is a broadbased and inclusive goal that recognizes macro policy has to work for the margins of the labor market. Could you tell us what led to this change and what the likely impact will be . Powell a couple of things. The longstanding disparities in income within groups and between groups in our economy inequality between groups and within groups has been increasing. We have noted that is something that holds that the u. S. Economy as a general matter. We have focused more on those than we have in the past and called those things out as ways for the u. S. Economy to grow. Everyone can contribute and benefit from that prosperity. Observe very low unemployment by historical standards for extended period of time. Unemployment was between 3. 5 and 4 for two full years. We did not see high Wage Inflation or high price inflation. We did not see any notable problems of market allocation and things like that. Was, in thesee ninth year of the very long expansion, the benefits float more to people at the lower end of the income spectrum. Betweenecord low gaps white and black unemployment. Saw labor force rise. We saw great benefits. That was one of the things that motivated us. In thented to one change Monetary Policy review. We would react to shortfalls in employment rate. Meant to pull both of those thoughts and. Aspects of ourey framework. President lagarde, you have a different mandate but i want you to come in here, because one of the things we have noticed in this crisis is that the burden has not been evenly shared and there has been a disproportionate impact on minorities, women, and that is something you have talked about before. And a widening of the divide in wealth and economic mobility. Aboutrried are you lasting damage . Can Monetary Policy play a role . Lagarde you are completely correct in referring to the uneven consequences. It is becoming very clear as we are collecting numbers. It is the women who have been affected quite significantly more than men. It is young people affected significantly more than the average worker. In those two categories in particular, it is likely to actually leave longlasting scars. Why do i say that . Particularly for the young people, there has been research to show that when young people are not given access to the job market, or lose access because internship, it stays with them for another 10 or 15 years in the jobs they have 10 or 15 years later are lower paid, they are less qualified. Effect isng demonstrated. In this particular crisis, young people are more affected. For women, it has a different consequence in a way, because it is largely attributable when you look at sectors most affected, youre talking about transportation, the retail sector, sectors that employ largely more women than men and generally at the lower end of the wage scale. Those households are typically those that have a propensity to consume that is higher. If you take that out of the market, clearly the consumption will not be pushed up by those wage earners that have essentially are they employed or unemployed . They are discouraged. They know it will not pay back to go back into the labor market. I am concerned about that. Although it is not our mandate are made it is price stability. Our mandate is price stability. That fiscal can be an active agent to address the situation and maintained income for those losing their job or a period of time and provide for the training for the skill sets to help them get to the other side of the river and the ability to get a job in a different sector. Governor bailey, you have talked about the economy of the future. What are the changes that you see . Bailey i think the effects have been uneven. In a way, that is not surprising. We have seen an uneven recovery so far. That reflects the fact that those parts of the economy and those sectors evolve closely with Human Interaction are much more heavily affected. Greater a much concentration of lowpaid workers and distributions of gender and ethnicity and that is very troubling. In order to come back where we started this discussion, i think the sustained recovery from this, the less the longterm scarring will be because more firms will be able to come through, more activity will revise. That is a good thing. We tend to take the view that it will not necessarily be as large as some forecasters think it is. Some of them i suspect rely too much on history. If you go back to the 1990s, where you some much larger scarring and more sustained scarring, that was because it was very much a structural move out of heavy industry, heavy manufacturing, into Services Like coal mining where you had far more longterm unemployment. I am more optimistic on that front. These will probably be movements within sectors. It is still very seriously. I do not want to play it down at all. Clear, it is not something we can do alone or be the primary focus on. I do think the very large amount of work we all do to understand Economic Analysis and understand our economy has benefits in terms of framing thinking about how to address these issues. Know, chair pal, this crisis has accelerated certain trends. Powell, this crisis has accelerated certain trends. There are firms that will never recover from the crisis, there might be sectors that might ever recover. We will not be traveling as much. What worries you most about the longterm impact . Powell i would agree what this crisis is in the process of doing is accelerating a lot of preexisting technological change. Technological change raises productivity and over long periods of time in the short term, that may or may not be the case. Other kinds of technology, i would say it. In this particular situation, i would worry that the changes we are not going back to the same economy. We are recovering but to a different economy. One that is more leveraged to technology and i worried that will make it even more difficult than it was for many workers, as andrew just mentioned, relatively lowpaid workers in the service sector, who were bearing the brunt. Largely minorities and women skewed toward minorities and women and relatively lowpaid. Those people will struggle to get back into their old jobs or new jobs. You will see more telework, the acceleration of automation. For me, the main takeaway is, even after the Unemployment Rate goes down and the economy and there is a vaccine there will probably be a substantial group of workers google need support as they find their way into the postpandemic economy because it will be different in some fundamental ways. President lagarde, would you like to comment on this . Pres. Lagarde thank you. That has two sides. Sectors will be affected, transformed, there will be losses and liabilities, and damage. But sectors will also be transformed in a positive way. If you look at, for instance, medical services, which typically were not heavily digitalized and the personal contact was still regarded as the prevalent way of providing medical services, this is radically changing at the moment. I am sure jay has those numbers as well, but Something Like 11 of americans used telemedicine. It is now almost 50 . Of those 50 , most of them are happy with what they are getting and are likely to continue with it. Havee same way, payments also been significantly transformed, closer to home in a way, where a lot of Digital Payments are accelerating, pushing us in the direction of exploring alternative modes of payment, and there will be transformation that will be beneficial. There will be sectors, services that were not available that can now be provided from anywhere through somewhere, to use the David Goodhart analogies. That can be extremely beneficial. Plus, being a little bit from my corner here in europe, it will accelerate digitalization, an area where europe was a little lagging behind, and where progress had to be made. To the extent this is supported by the training that is necessary, resetting, however it is called now, i think that will be beneficial for productivity in europe in particular. Just to reinforce what christine has said, we had a story of low productivity growth for 10 years now, and that is part of the story about structurally low Interest Rates. I dont want to lessen the challenge of transition, but reinforce what christine has said. There are opportunities. If you look at productivity across sectors, retail is one that has had stronger productivity growth, we have had structural change. To point to right other opportunities as well. President lagarde mentioned Digital Currencies. We have a question from the audience. Several members of the audience are asking how Central Banks see the prospect for Central Bank Digital currencies, and also whether this would risk crowding out cash and noncash electronic payments. Lets start with chair powell. Here at the fed and in the United States, we are committed to carefully evaluating the benefits of a Central Bank Digital currency. For the u. S. System and International Markets implications, we have been actively participating with andrew and christine and other Central Banks at the bis. We feel that has been a productive collaboration. Decision tomade a issue a single central bank currency, and there is quite a lot of work to be done as we engage with public constituencies here in the United States and around the world. Also, the dollar is the worlds principal reserve currency. I assure you that we will approach the question with great care. From our standpoint, the main dc could on whether a cb improve a dynamic and stable payment system. We have Strong Demand for cash, which is different from some other jurisdictions. We really would need this to be done in a way that does not preempt the use of cash or the use of other private Digital Currencies or nonCentral Bank Digital currencies, such as the fed now payments that we announced. We last thing i will say is feel an obligation to be on the front tier of research on technology and policy but as the this, main reserve currency, we do feel it is critical that we get it right, as opposed to trying to be the first. In a way, we are the incumbent reserve currency, so we will be careful and gauge quite extensively on this. Lagarde, and expectation the ecb will be first. Pres. Lagarde we are not recent to be first. Euro wille a digital not be a substitute for cash but a compliment. It is not a nicety, a tantrum, it is something that if it is cheaper, faster, more secure for users, then we should explore it. If it is going to contribute to a better monetary sovereignty, better autonomy for the euro area, i think we should explore it. If it is going to facilitate crossborder payments, which are very laborious and quite a few corners of the world, then we should explore it. That is the reason why we have launched a consultation in midoctober that will be completed in midjanuary. At that point in time, we will make the decision whether or not to go forward with a digital eur o. This is a decision that will be taken collectively. My hunch is we may well go in that direction, which does not mean that a digital euro will be available right away. Dress , we have to address all of the issues of antimoney laundering, financing of terrorism, private uses and information, the appropriate technology that will carry that digital currency. Is a project that will probably take us 3, 4 years before it is launched. Just to give you an invitation, the pboc, the central bank of china, started exploring this about five years ago in the same way that facebook is exploring a private stable coin, started about four years ago. Well advancedinly but also good reason for us to be attentive to the way in which Monetary Policy can be secured, monetary transition can be safeguarded. Those are the reasons why we are notng ahead diligently, unconsciously. We will be prudent, we know it will not replace cash, but my hunch is it will come. There has been a lot of centralbank resistance which does not look to me like it will go very far. I was interested in what you said about autonomy. Is that a main driver for the ecb . The main driver is to respond to our customers. What do the people of europe want, how do they want to pay, how do they want to use payments . Euro arear in some countries, states, the use of cash is significantly declined to the benefit of Digital Payments. If you look at a country like sweden, for instance, the netherlands, it is moving extremely fast. And the pandemic has accelerated it. Pres. Lagarde the pandemic has definitely accelerated that. Instant and Digital Payments have increased over the course of the last few months. Where does the bank of england stand . Way, there by the is a paradox of cash. We all observe it. The use of cash was declined before the pandemic, certainly during the pandemic. I agree with christine, i dont think it will ever go away. Demand on Central Banks continues to rise. That is a paradox. The important thing i would add coinis, the private stable , for me, a critical Public Policy issue here is that people have a right to expect certainty of value in the instrument they used to make payments. They should not have to worry about the value of the instrument in which they are making their exchanges, making payments. I have to say that i think that means the bar is set very high for private stable coins, and i dont think they have met that view. Ave not in my it may be that the answer to that bar is Central Bank Digital currency, where you would get that certainty of value assured. That is what Central Banks provide. That question is yet to be answered but to my mind a critical one. If i could finish, there are at the set of questions heart of central banking, which is if you introduce that instrument, how does that affect Monetary Policy and Financial Stability . We will have to do a lot of hard work to think through the implications of that, and we will do. I want to turn to Climate Change. I know there have been many questions about that. The ecb is more active, of course, in the green the bond sector greenbaum sector. Bond sector. Where do you want to land . Pres. Lagarde that i will not say but it is going well. As part of the key elements we are exploring, it will not surprise you if i mentioned the level of inflation and the aim that we have, the horizon we are betweenat, the relation inflation and the economy, and the combination of tools that we will use to spur demand when it is needed. Those are the key planks of our strategy review. Looking beyond that at some other elements that are actually directly relevant to our price stability objective, and the one that im particularly key on is Climate Change. Heard many criticisms as to why we will look at that, why Central Banks cannot stick to their mag mandate and completely ignore those other issues. Fairpoint. Except that those matters affect price stability. Whetherave repeated situations catastrophic weather situations, repeated grout, that will affect us in a direct way. If we have carbon taxation, it nill impact our aim in a indirect way. If there is so much uncertainty related with Climate Change and the risks resulting from that that people change your saving behavior, it will move down the natural interest rate. That matters to us in the way that we define our policies going forward. If only for those reasons, not to mention the issue of appropriate pricing of assets given that externalities are not well taken into account, if only for those reasons i mentioned, we must look into the Climate Change issues in the way in which they are related to Monetary Policy and impact on our price stability objective. That is what we will be doing. No more detail than that . Pres. Lagarde i thought it was pretty good. [laughter] i will have to ask my correspondent. [laughter] chair powell, the fed acknowledged the Financial Risks of Climate Change and the Financial Stability report. Does that require more cooperation on Climate Change between the fed and the likely abided Administration Biden administration . Chair powell that would not be me commenting indirectly on the election, but we believe the fed and the central bank has a contribution to make. We also think Climate Change is also an issue that requires across government, across sector response. From our standpoint, we think the public will expect, and has every right to, that we will make sure the Financial System is resilient against all sorts of major risks, including Climate Change. In our Financial Stability report released earlier this , we noted the connection between Climate Change risk and Financial Stability. I do think we take those on board. We have been working with the network, attending the meetings, i think were in the process of applying for membership there now. There has been significant collaboration mostly behind the scenes. Central banks around the world are working on this. What we are really working on is how do we incorporate Climate Change risks into all that we do . As christine mentioned, potential for Monetary Policy, bank regulation, Financial Stability. I would say very early stages of trying to work through what that means for our goals. From our assigned legal mandates, we do this work. Quickly,or bailey, because i still have one more question and im running out of time. Gov. Bailey i would agree with jay and christine on this. As we rethinking about investment in the recovery from covid, thinking about how we can do that and pursue Climate Change is very important. We have been listening to a European Central bank online andrew bailey, jay powell, and christine lagarde. A wideranging discussion on a number of topics. We think they could all agree on, while the recovery is coming, it is uneven. Madame lagarde focusing on the young and women and how they are being left behind. At the same time, a consensus that this was a first real test of the Financial Systems after the financial crisis, and thus far it has gone well. To they all said, i want emphasize, so far its gone well, and there may be for regulation required. In the meantime, they had to talk about the need for coordination among them. It is not lost on anyone that the three of them came together to convey a sense of coordination among the Central Banks but also coordination with fiscal and Monetary Policy, something chairman powell was asked about. We talked about another central banker today, former governor of the Federal Reserve, and we spoke to him about what a President Biden would be doing, specifically about what some of those things that jay powell mentioned. As we have been saying for nine months now, getting a hold of the virus, getting a vaccine out is the single most important thing to continue a cyclical recovery. Will in and of itself, provide a substantial boost hopefully into 2021, into 2022. As we have all been saying, a Public Health issue is the most important economic issue in the short term. A crying need for stimulus to carry us into the period where the vaccine will take effect. But after that, you are going to get some tailwinds basically from the recovery. Longerterm, its a question of whether the now president elect will be able to get congress to go along with the Spending Priorities that he has. There is anonymous and not about that he can do with control of the executive branch but it will be important for congress to be somewhat cooperative. David when you talk congress, as a practical matter, we are talking about the senate. We will not know until january whether republicans or democrats have a majority. As of now, it is likely that the republicans will. Is it possible for President Biden to do business with Mitch Mcconnell and get business done, which we did not see last time . If it is possible for any democrat, it is probably joe biden can do it. Not only a veteran of the senate but has a longstanding relationship with senator mcconnell. If we step back from personalities, i think there may also be some motivation that at republicandful of senators may have. Consider Infrastructure Investment. That elicits raise eyebrows now everywhere because people have been talking about it as a potential bipartisan project, and it has not happened. But i think you have an administration, as we will, that has competence, coordinates its policies, and has consistent policies. The chances of working something out become much greater. If the epar example administrator and other federal agencies began to implement regulations directed toward Climate Change. What President Biden is offering packagefrastructure that can help accelerate that transition, creating jobs, and also help with the adjustment of those in sectors that will not be as vibrant going forward. I think there will be a temptation on the part of some senators from some affected buy on. O david as a member of the Federal Reserve, and before that in the obama and clinton administration, you dont with policy. We have come back some but we have a ways to come back. Particularly with jobs, over 10 Million People dont have jobs that did before the pandemic. Best,infrastructure the quickest way to ensure that . The Coronavirus Vaccine is the quickest way to do that because that will get the Service Sectors back online. I would say the Infrastructure Investment is a medium to longerterm project, one that would improve both productivity and create good jobs along the way. As we have seen again and again, no matter how many times people say that products are shovelready they are ready enough where you can walk to the truck to get the shovel but they never seem to have as much, as quick as you would like them to. David there are some things that the executive branch can do on its own without support from a divided congress. In the economic sphere, what is one thing that President Biden could get done in a reasonably short period of time . Within the Labor Department where you have got the fair labor standards act, his appointees can make different determinations as to who is covered by minimumwage laws, when you have to pay overtime, that sort of thing, which could have a big effect in the gig economy. He can do things on Student Debt Relief as well. There are any number of regulatory actions he could take. He could also use such spending powers as he has with already, soon to be appropriated funds, to redirect them. In terms of economic priorities, there is quite a bit he can do. Where he needs the cooperation of congress is obviously in increasing total spending or taxing. David should we be concerned about the effect of more regulation on Economic Growth . One of the hallmarks of president Trumps Administration was deregulation as a way to grow the economy. How do we strike that balance in a right way . That is always a question in any administration, no matter its ideological leans. In areas where the president elect has emphasized most of the regulatory agenda, which would be on Climate Change, corporate protection, and to a lesser extent financial regulation, and each of those areas, its quite possible to get a set of regulations that achieve your regulatory end but do so in a sensible way that does not create unnecessary disruption. I say in the labor area, to the degree that there will be increased purchasing power among people in the lower echelons of income brackets, that will increase aggregate demand. As we know, people in the lower levels of income tend to spend a much higher portion of their income than the upper levels. Over time, there is actually an aggregate demand reinforcing effect of some of these. David what about the area that you were responsible for at the financial reserve, the financial industry. President trump said that we are going to read deregulate some of that. Much was done under president trump, how much needs to be redone under a President Biden . Dan two separate issues there. To what degree you the large banks been deregulated over the past four years . Then where do we see bone abilities that have not been addressed . Although there have not been many headline grabbing regulatory moves, some analysis on friday afternoon, there has actually been quite a lot done to undermine supervision, to make the stress tests easier and more protectable, to remove some of the constraints of leveraged ratios. A lot of that has been done. Appointees will be focused on reclaiming that area, in particular when it comes to the Capital Position of banks. If we need any better indication of the importance of high capital levels than in march, when the banks were a source of stability, rather than vulnerability. The second thing is nonbank financing arena. That is where the problems are most apparent, in march and april. There you have a big, unfinished agenda where biden appointees more importantly in the sec than the fed will need to address what happens at hedge funds, mortgage reits, what happens in shortterm bond funds that are intermediated with the promise of immediate redemption. That area, i think, needs a lot of attention. Rolling back with the trump people have done is doing something that has been crying out for attention for some time. David that was part of my conversation with dan to real, former Federal Reserve governor. Talking about what a Biden Administration can be expected to do. Coming up, we will talk about president elect bidens tax policy. This is balance of power on Bloomberg Television and radio. You can go your own way its time you make the rules. So join the 2 Million People who have switched to xfinity mobile. You can choose from the latest phones or bring your own device and choose the amount of data thats right for you to save even more. And youll get 5g at no extra cost. All on the most reliable network. So choose a data option thats right for you. Get 5g included and save up to 400 dollars a year on the network rated 1 in customer satisfaction. Its your wireless. Your rules. Only with xfinity mobile. Mark im Mark Crumpton with bloomberg first word news. Voter turnout in november is on track to be the highest in over a century. Data compiled by the Washington Post showed turnout has reached 63. 9 , surpassing the previous high watermark in the 1960 race between john f. Kennedy and richard nixon, with ballots still being counted in several states. Turnout is projected to reach 66. 5 of the voting eligible population, which would be the 1908 race in the between William Howard taft and William Jennings bryant. The Trump Administration is stepping back on negotiations of a new stimulus package. The white house is leaving it up to Mitch Mcconnell to revive talks with nancy pelosi. The move greatly diminishes the chances of a trillion dollar forulus before the u. S. The u. S. Economy before january. President trump had committed to pursuing a largescale stimulus after the election but has since focused on attempting to overturn joe bidens victories in battleground states. The nations