The headline number, 57. 5, down from 59. 3. This is a very elevated number by historical standards still, but there are signs of some weakness creeping into those figures. It was unlikely they would remain as high as they did. The survey number was 58. We come through with a headline number of 57. 5. Prices paid a little light as well. The employment number has dropped quite significantly. This may be something you want to Pay Attention to. Remember, we are waiting for the payrolls number friday. 48. 4 is where we are coming through their. Construction spending month on month, 1. 3 . Lets break it all down. Lets get some details. Mike mckee come over to you. Michael you gave us most of the details there that matter, especially that employment number. That has been concerning people in the markets. We have seen a slowdown in the economy reflected in the topdown numbers, although manufacturing has been the source of strength in most economies around the world since the depth of the covid recession started. But the idea that we are seeing weakness in the labor markets is concerning. It is something jay powell is going to talk about in his testimony. There are still people being left behind in the labor markets, and we cant take anything for granted at this point. A drop like this down into contraction is going to make some people perhaps take another look at their forecasts for friday. Another thing we want to look at is the new export orders. That one goes up, 57. 8 from 55. 7, which is interesting because of the rest of the world is still seeing slowing in their economies as well, but we are seeing more interest in buying american stuff. You are going to take some good news away from that. I do want to mention that a few minutes ago, i said the Market Manufacturing pmi was unchanged. It was unchanged from its flash number, not from the prior month. It is up significantly from the prior month. So we are seeing ongoing strength in many fracturing, but not in the labor part of it. Alix we have the testimony, like you mentioned, with jay powell and steven mnuchin. Nguyen Encouraging Congress to use the 455 billion dollars in unused funds to pass an additional bill. Now,rday, powell said for significant challenges and uncertainties remain. The rise in new covid19 cases here and abroad is concerning and could prove challenging for the next few months. As we get into the testimony, how is this debate between powell, mnuchin, and the senate going to unfold . Michael it is clear that jay powell wants to shift the blame to the treasury secretary for getting rid of the lending programs that the fed would like to see continued. Whether or not they are necessary is an open question, and this is a senate hearing, and the republicans run the senate, so you can probably expect a little more sympathy for the treasury secretarys position. Theas i said earlier today, treasury secretary is losing his job, while jay powell is keeping be moreit will probably important to listen to what powell says about what happens in the future than mnuchin. Alix thank you very much. Joining us for an exclusive , sullivan rodge Cohen Cromwell chairman, and sonali basak, bloomberg wall street correspondent. Expect out of a mnuchin treasury over the next few weeks, and then a janet yellen treasury starting whenever she is confirmed . Rodgin i think we are going to see the debate play out which you were just highlighting, and that is where will the stimulus come from. Is it going to be just those unused funds . Billion, that is the equity piece. There is no reason that the Federal Reserve could not leverage that through main Street Lending or other programs , so we could be talking about potentially trillions. But i just dont see it as either or. That money could be available. There could also be additional stimulus money. , as somebody mentioned earlier, the battle lines may be drawn. It may be time to put down the weapons and get into negotiations because weve got a significant problem. Yout comment about just commented about it a few moments ago. The labor market is not strong. Who knows how covid19 is going to wreak havoc potentially on the economy even further. So not drawing the battle lines, but getting in and negotiating as quickly as possible, and hopefully that would occur whether the treasury secretary is secretary mnuchin or incoming secretary yellen. Sonali sonali you mentioned that some of this comes from the fed, but some of it comes from the treasury. How is this crisis fundamentally changing the relationship between the two bodies . Rodge i dont think there is a fundamental change. Each is an independent agency. Each has its own use its own views, and there is frequently disagreement on some aspects. But i think in the longer run, if you look at what i think was the extraordinary degree of cooperation in the spring when the market in the economy were most at risk, this has really been the trend. 2008, whereck to secretary paulson and fed chairman bernanke, same degree of cooperation. So there is disagreement now, but over the longer term, i think one would want to conclude that there was substantial cooperation and collaboration between those two agencies. Guy good morning. It is guy in london. I look at what is happening in the u. S. Economy right now and see an incredibly high savings rate. I see the consumer in the states willing to spend. That was my take away from the black friday event. Why do we need more stimulus when there is this huge pool of money in the consumers pocket that is probably going to be spent next year that has the potential to drive the u. S. Economy really to bounceback quite strongly . Rodge it is a great question, and i think the answer has to be the unevenness of the available spending power. Of, there are a large number consumers and others who have that spending power, but there is a large number, an increasingly large number of individuals and Small Businesses who do not have that power. It is really a question of getting the money, helping these people survive, helping these Small Businesses survive, so the stimulus would need to be directed to those individuals and those businesses. This has been a very uneven recovery from the depths of covid19, and as we have a threat of going downhill again on the economy, it will be uneven once more. Alix if we broaden it out to what we are going to expect in a biden adminstration, front and center is what is going to happen to Financial Regulation in all kinds of forms, from the fiduciary rule to how etfs are structured, to backing instruction. What do you feel like is a top priority, and what realistically do you think we are going to see . The focusont think will at least initially be on safety and soundness. Based on Bank Performance since the beginning of this year, they do not seem to be significant weaknesses there. So i assume the priorities, at least immediately, will be those which are the Overall Administration priorities, and how does banking regulation fit into that. So we start with the impact of covid19 on the economy as a whole. A second would be racial and social injustice. How can we bring more people into the Banking System . And for those who are under banked, how can we make the more fully banked . One thing you pointed out was climate change. There will clearly be focus on all financialy institutions because they play a dual role. They not only have their carbon footprint, as every company does , but they are also a determiner of who obtains loans and investment, and what criteria are to be applied. So i see those three Administration Priorities as working their way into the regulation of the Banking System. Sonali what is the simplest way to get that done . If you look at a lot of bidens economic pix, there are a lot of people focused on race, on gender equality. Is it as simple as focusing on the Community Reinvestment act . Are there going to be Greater Regulatory demands on banks to increase their numbers inside of their firms . How does a new administration get this done . Rodge i think those are all the right notes, and i would say all of the above. Specific, the Community Reinvestment act has managed to develop a total consensus that it needs to be improved. It is an old statute. It was built on an old framework of Bank Delivery of products and services, and it needs to be revamped. All three agencies have their ideas, but they need to be coordinated. Unbankedct to the and under banked, there i think we need to get the agencies and the banks together. I think all of them want to do more that is in the countrys interest. The under banked and unbanked does split to a far to great and ifon racial lines, all races, all creeds, all colors have access to the Banking System equally, we are going to have a better Banking System, and really a greater country. So i think there will be focus their, but so much of this will be exposure. Companies being obligated to make improved disclosure on climate and on gender and racial equality. Privilege ofe asking the last question. Weve got bitcoin at a record high. Equity markets at a record high. Credit at record highs. Bothorried do you think the administration and the fed Going Forward are going to be about Financial Stability . And if they arent going to tackle the challenge of Financial Stability given what is happening with some of these asset classes, how do you think they go about it . Rodge i think they probably are worried, and should be worried. They should be in the business. Any administration should be in the business of worrying, particularly about some of these asset classes. My own view is it is time to revitalize the Financial Stability oversight council. That is their responsibility. It was developed in response to 20082009, and it shouldnt just be cleaning up after the fact. It should be anticipating what cracks could develop. Revitalization of the fsoc would be a very help. Guy on that note we will leave it. Very much thank you very much indeed for your time today. And of course, our thanks to bloombergs sonali basak. Lets turn back to the vaccine, the rays to get into peoples arms. Pfizer and ioan tech have asked for regulatory clearance for their vaccine in europe now, putting be shot on track for potential approval before the end of the year. Speaking earlier to u. K. Prime minister boris johnson, the Pfizer Vaccine could be rolled out before christmas. Pm johnson weve ordered 100 milli weve ordered 100 million doses of the astrazeneca vaccine, and ordered from the Pfizer Vaccine, 40 million ses which, if approved by the regulator, could start being administered before christmas. Ring, Bloomberg Health care reporter, joining us now to discuss all of this. If we get approval, and i am curious to know when that might come, what is the go date for these vaccines . The Prime Minister is talking about before christmas. Can we get more specific than that . Suzi it is an interesting situation. Biontechy, pfizer and applied for approval in the u. K. Today, but we may see approval, and the u. K. First. The u. K. Has given itself the ability to approve a vaccine, even though it technically falls under the eu regulator until the end of the year, when we have the transition period for brexit over. It has given itself the ability to improve before the end of the itr, so we might see approved before the u. S. We dont have an exact go date, but if things go ahead and the coming days as discussed, we could see this being rolled out in the next couple of weeks. Alix how is the infrastructure set up to handle all of that right now . Nationaly have got a program. They have been briefing in hs. Obviously we got a tiered o rder of who would receive the vaccines first. You and i would not be on the immediate list. ,e would be more to the spring march and april being the time that the average person who is not so exposed would be getting this vaccine. So it will be limited at first, but they do seem to be on track to rollout this as soon as they get the green light from regulators. Alix bloombergs suzi ring, thank you. Lets get an inside read on how the vaccine will actually be transported industry beaded. Joining us now is Gerald Shelton come up cryoport is Gerald Shelton, is jarrell cryoport chairman and ceo. We make a lot of hay about the fact that it needs to be supercold if you are dealing with the pfizer or moderna vaccine. Walk us through the logistics. Jerrell it will be challenging, and we look forward to the opportunity to participate. The distribution of these vaccines is going to stress the supply chain worldwide. We are ready to participate. It is a complex problem. This starts off with packaging and transportation, and then storage and redistribution, and then replenishment. It is very complex. Participateeady to in to help get the vaccine to market. Guy where are the weak links in the supply chain . Jerrell there are many weak links in the supply chain. First of all, we dont have an improved vaccine, so we dont dont have an approved vaccine, so we dont know what the pathway is going to be. Are everywhere until we get vaccines into the marketplace, until we know exactly how the handoffs are going to take place, with the storage requirements are, and what the distribution will be. What medium is going to be used, what temperature, what protocol is going to be used. But we are prepared to answer those links for our part, and we are sure our colleagues are also prepared to enter their part is that demand comes up. Alix when we talked to the ceo of modernity yesterday, who said once it is approved, 24 hours they can have a vaccine out the door. Then that kind of goes to you, in essence. How does that work, from the door of moderna to the doctors office, cvs, or a hospital . What is the process like, and can you get it there in 24 hours . Jerrell we will be a participant. We were ready to go at any time. As you know, we are still a gene therapy company. We are not built specifically for pandemics, but we are still a gene therapy company. We have 27 locations worldwide. We have a competent staff. We manufacture dry ice. We are very familiar with dry ice and he replenishment requirements related to it. So we will play an important role, but you have to be moderna oruntil the pfizer is approved and released. Logistics, what is the difference and difficulty between cold and ultracold . Jerrell cold is anything that is 68 degrees fahrenheit, 20 degrees celsius, and warmer. There is a capacity in that refrigerated temperature range. Ultracold is anything that is 70, and that is dry ice, all the way down to cryogenic temperatures. So ultracold is more problematic in some ways than the cold, but in some ways it is also advantageous. Ultracold, we can actually shipped in containers that can hold up to 10 days. The one thing that gets overlooked here is the data that is required to make sure theres no temperature excursion that would affect efficacy. That is another aspect we provide. We provide the data that proves that theres been no temperature isursion and that efficacy not compromised. , we can provide those services. Ultracold is below 70 degrees centigrade. Alix alix what is your capacity like . How quickly can you provide the service, and if moderna ramps up its production, can you meet it . Jerrell we quadrupled our market size with the two recent acquisitions we made, and we are constantly working on our infrastructure and preparing for the onslaught of gene therapy, so we have capacity, and we can expand capacity because the manufacturing process will take time as well. First of all, we have the capacity, we have the response capability, and secondly, we do have the ability to expand to build in continuous spaces. Guy good luck. Thank you for your time today. We look forward to this being rolled out from pfizer and moderna and everybody else has quickly as possible. Thank you very much, indeed. We are certainly keeping an eye on capitol hill. We have just been hearing from the treasury secretary. Now we are hearing from jay powell, delivering prepared remarks. We got these remarks last night. We will delve into the queue and day when that begins in a few the q a when that begins in a few minutes. This is bloomberg. The overall rebound in Household Spending is due to expanding unemployment benefits, which provided essential support committee families and individuals. Ttee families and individuals. Guy repaired testimony is being delivered at the Senate Banking committee hearing. Jay powell talking at the moment. After that we are going to move through into the q a phase, and at that point, we will dip in and hear what they have to say. One thing that is certainly big in the market today is what is happening with tesla. It is going to go into the s p on december 21. There was some suggestion it may chunks, but Money Managers seem pretty happy we are going to see this going in one go. It is going to go in as the seventh Largest Company on the s p, so it is going to have massive portfolio effects. It is going to be fascinating to see how this one works. Ive read a number of reports suggesting the market is looking to be long in and short out. Ultimately when it happens, you get a fade. Alix part of the rally we have seen, some are attribute into the fact that they have been front running this, but there are still about 11 trillion in funds tied to the s p, so there is still a lot of money to be turned out here. What i find really interesting is that you are dealing with a company that sells 98 less vehicles and books 97 less profit then the major automakers, but is worth more than that. Wonder how that is eventually going to wind up playing out within the s p. Guy are you suggesting that the valuations may be pushing on the elevated end of the spectrum . Comparisons are being made between what is happening with tesla and what is happening is bitcoin right now. As i mentioned, we are waiting for the q a to start within the Senate Banking committee. That is now commencing. Lets take a listen. You and we were accused of creating a big slush fund, and now when we have terminated these funds as required by the law so that we can utilize them more effectively in the next act, the criticism is that this fund should not have been terminated. I just find that kind of confusing. Thats also confusing in the context of the fact that we have tried to get the very kind of relief in followup legislation that we have now been criticized for not doing. Just a few months ago, extending things like the paycheck addiction program, which would help those restaurant workers that senator brown mentioned, extending and improving it, by the way. Redirecting some of these funds so we get to some of those industries and sectors of our economy that have not yet been reached by the facilities, and need to have a different kind of direct support system put into place for them. Assistance that we need to have, in my opinion, which i have been working very hard on to try to get. As we tried to get these things, they were rejected by the other side. So it is just confusing to me, or a little bit surprising, to see these kinds of attacks leveled today in this hearing. Secretary mnuchin, could you help make a little sense from your point of view as to why the decision to make the return of 133 funds away from the facilities at this time is the best thing, and what the intent you had was in making that termination . Sec. Mnuchin thank you, mr. Chairman. Let me first say i want to thank the senate for passing the 0,a. R. E. S. Act, which was 96 in an unprecedented response. I lived in the lbj room for over two weeks, so i am very familiar. I personally negotiated many of these provisions. Matter of fact, i brought the c. A. R. E. S. Act with me because i reference it and keep it next to my desk. Mr. Chairman, i would just ask you to recall, you and i were sitting outside senator ,chumers office with his staff after 1 00 a. M. In the morning on the night that we finally finished this, and i asked you to come sign off on behalf of the leader and others the final redlines. So i would direct you to section 4029, which is very clear, which says, except as provided in subsection b, the authority provided under the subtitle shall terminate. It was very clear. So my decision first of all, i want to thank chair powell because he has been a terrific partner in everything we have done, and i really want to thank him and the people at the fed. He and i have been speaking constantly. In deference to him, i did extend the four of the facilities that use noncares money. My decision not to extend these facilities was not an economic decision. I am surprised to hear senator brown use words like sabotage, delusional, malpractice. I would be more than happy to come see your staff and walk you through the legal analysis, but this is perfectly clear. The senate provided Unprecedented Authority to the secretary of the treasury in give me 500 billion dollars. The statute was very clear. Matter of fact, i find it impossible that any member of this committee believe that in voting for the c. A. R. E. S. Act, you were authorizing me to invest 500 billion to make loans in gratuity in perpetuity. So if you dont read there is a next nation, you must there expiration, you must read that there is a loophole in the law. I would also conclude, i echo what senator brown said about restaurants. The president and i believe that restaurants have been unfairly targeted, and i would urge congress to support another 300 billion for pvp. This what for ppp. This is what they need. These restaurants need grants. They dont need loan. Sen. Crapo as you can tell by the bell, chairman powell, i dont have time to ask you my questions, but i will ask you to respond to them later in the hearing or send them to you in writing. Senator brown. Sen. Brown thank you, mr. Chairman. Secretary mnuchin, i see by your testimony today you really dont understand what is happening in families across our country, almost celebrating your marvelous work of you on the president when the country so decisively rejected. One of my favorite Abraham Lincoln quotes, he used to go out and talk about getting his Public Opinion bath. I hear what you say about restaurants, but it is clear that you and the adminstration have left behind the precedent, and is only concerned about seeing some thing that is not there, fraud in election, as so Many Republican judges and a few courageous republican officeholders have spoken out against. At our last hearing, i asked you and secretary powell to read a piece by propublic about a Small Business owner in cleveland whose business couldnt get up, while the giant corporation occupying the same building has gotten plenty of taxpayer support, while laying off its workers. I am hoping you would have read it and made a more serious effort to understand what is happening in places like cleveland and mansfield and shelby and springfield, ohio. Millions of American Workers are still struggling. Millions more are out of work. All of the numbers are going in the wrong direction. That fromt determine your comments today. It is clear you were never serious about fighting. I said it in that room, too, in the lbj room, you were never serious about fighting for the people who make this country work instead of making a deal that would have done more to help them. You pushed to make life just a little bit easier for the nations biggest banks. Now youve killed the c. A. R. E. S. Act loans that were supposed to be a tool to help smaller businesses and their workers, and. The money and buried the money. It looks like you and others in the current and others in the current had adminstration are trying to spend your final days in office amp of lee sabotaging the next administrations efforts to clean up your mess, but you still work for the american people, even though i dont think you are acting like it, secretary mnuchin. I wish you and your administration would stop crowing about the stock market and stop passing the buck instead of doing the hard work. President elect biden will have to fix the mess you are leaving behind. My question is for chairman powell. You will be around at the beginning of the next administration. You will be part of the cleanup crew. I appreciate the conversations weve had, where youve made clear that Congress Needs to do more fiscal support. You have also committed recently that even if we take bold action, we are not going back to the same economy, and that it will be more difficult for workers Going Forward. We have seen how the fed and treasury actions supported the thek market and benefited wealthiest people in this country. What can the fed do to make sure that workers dont get left behind again . Chair powell thank you. I would say this. We have provided and will continue to provide very strong support for the economy and for workers in particular through the use of our tools, and we remain committed to using all of our tools to their fullest extent for as long as is necessary to get us through this difficult period. Collectiveabout this effort, this governmentwide effort, is one that involves getting the people in the businesses that constitute the createdacross the chasm by the pandemic, getting them safely to the other side, to a post pandemic economy. Think, frankly, that the fiscal policy, particularly the c. A. R. E. S. Act, deserves the lions share of the credit in creating that bridge so far. It may be that we need more on that front, but from the standpoint of the fed, you can be sure we will continue to use our tools, and those would include section 13 three facilities which remain available to us under the law, and as the secretary pointed out in his letter, they can be backed up by Exchange Stabilization funds should the legal requirements for such funds be met. Fed have andoes the obligation to address the problems of inequality that many argue fed actions have amplified, especially in addressing inequality in communities of color . Chairwn i think powell i think these persistent disparities along racial, gender, and other lines really hold our economy back. I think that the fed has a contribution to make. It is not the principal contribution. I think that really, fiscal policy and congress and the private sector, too, have very important roles there. What we can do is a lot of what we are doing, which is to focus on maximum employment, which is your order to us. That is the goal you have set for us. To really take that idea seriously, i think you have seen with the most recent modifications to our operating framework we are taking it seriously and focusing on these issues more as holding the whole economy back. Sen. Brown thank you, mr. Chairman. Sen. Crapo thank you. Before we go to senator toomey, i have to say, senator, nguyen, you have secretary mnuchin, you have been accused of killing the c. A. R. E. S. Act loans. I think that is mostly the ppp program, which we have tried to extend on the floor of the senate, only to have it killed on the other side. But we will continue to have these debates. We will turn next to senator toomey. Sen. Toomey mr. Chairman, as this might be the last Banking Committee hearing of your chairmanship, i really want to thank you for the outstanding work you have done. A pleasure working with you. What i want to do is first of all, i want to applaud secretary mnuchin for closing the workingthree facilities by year end exactly as the law requires and as congress clearly intended. I want to thank chairman powell for returning the unused cares treasury. To the fact is, Congress Interested both of you with some extremely powerful, unprecedented emergency, and yet temporary tools. I commend you for working together to deploy those tools for their intended purposes, and then putting them away now that that specific purpose has been achieved. I thicket is important to review what was happening and why we designed the c. A. R. E. S. Act as we did. The fact is in march, we had unprecedented turmoil in our capital markets, threatening the ability of businesses, municipalities, and states to Access Capital and credit. Credit markets were on the verge of completely freezing up. There was a massive flight to cash. In many cases there were no buyers on there were no buyers inside. Credit wasnt flowing to any institutions that needed it. This freezing of our Financial System was a very serious threat that it could precipitate a fullblown depression. The deputy associate director for Financial Stability at the fed noted in a congressional oversight testimony, and i want to quote because he summarizes this very well, the conditions that prevailed in march were unprecedented, far worse than during the onset of the financial crisis in late 2008 or even in the days after 9 11, when the Municipal Market was briefly closed. Interest rates soared. Mutual Fund Investors reported 40 billion out of the market in less than three weeks. Market function deteriorated to the point that buyers and sellers had difficult determining prices. Ultimately this meant that state and local governments were effectively unable to borrow, with most new issues canceled for lack of investor demand. Mr. Chairman, that was the problem that congress was seeking to address, to solve by providing the c. A. R. E. S. Act funding for temporary emergency facilities. Congresss intent was clear. The facilities designed to create a facility backstop until the crisis passed, and then cease operations no later than the end of 2020 in any case. Last week, i would point out that every republican on this committee signed a letter sent to secretary mnuchin and chairman powell affirming that this is in fact our interpretation of the law, and the intent of congress. I also think it is important to underscore how remarkably successful these facilities were in achieving that intended purpose of stabilizing credit markets and restoring the flow of private credit. In fact, they work better than i think most of us thought even possible. Markets didnt just improve. They didnt just restore liquidity. We reached record volumes of debt issuance. We did so at low spreads, low yields, affordable interest rates, regional banks extend credit to their customers, and according to business surveys, unmet demand for credit among credit worthy borrowers is almost nonexistent. Let me go through some of the arguments have heard for why we should not have closed down these facilities, and why i mistaken. Are all one is that the viability of the credit markets depends on these backstops. Well, that has clearly been disproven by the fact that the announcement of their end brought absolutely no disruption to any Financial Markets that i can tell at all. A second suggestion by some is that we need to keep these facilities around because some vaccine might happen someday in the future. It has always been the case that you could imagine some bad thing happening in the future. If some terrible thing were to happen that threatens the viability of our Financial Markets, the treasury and the fed should come back to congress and ask for appropriate facilities at that time. Others point out that there are whole industries in big trouble. That is a true fact, especially travel and hospitality, entertainment work. Consumer demand has basically disappeared. It is up to congress to decide what to do about that. It is not up to the fed to lend money to what are probably insolvent companies. So lets be clear, these facilities were designed for a very specific purpose. They achieved that purpose more successfully than we could have reasonably hoped, and we not just morph into some other purpose like as a supplement and or complement to fiscal policy. I want to thank the chairman and the treasury secretary for the outstanding work they did in helping to ensure the viability of our Financial Markets, and therefore avoid a prolonged depression. Sen. Brown thank you. Senator reid. Sen. Reed thank you. Let me think secretary mnuchin and chairman powell for being here today. Chairman powell, and your november 5 chris conference, you said that the fiscal policy actions taken thus far have made a critical difference to families and businesses across the country. Even so, the current economic downturn is the most severe in our lifetime. It will take a wild to get back to the levels of economic and employment that prepared at the beginning of the year that prevailed at the beginning of the year. It will take support from monetary and fiscal policy to achieve that. How long will it take us to get back to the precovid levels of Economic Activity and employment without any further fiscal furtherm congress fiscal release from congress . Chair powell it would be very difficult to say how that would play out in terms of time. I would say that first of all, the economy hasnt actually performed better than expected. It has been more resilient to spikes in cases than expected. Nonetheless, we have had a recovery that has been faster than most forecasters have expected so far. Nonetheless, we do have a long way to go. Weve got on the order of 10 Million People who lost their jobs because of the pandemic, and for reference, that is more the lost their jobs during financial crisis in the united states. So theres a long way to go. I think we can both acknowledge the progress, and also point out just how far we have left to go. As i said earlier, the lions share of the credit really should go to fiscal policy. Of course, the timing and the scope and the size and components of that are entirely up to you. I would just point out that we will use our tools until the danger is well and truly passed, and it may require help from other parts of government as well, including congress. Thank you. Thealso pointed out to collective idea to keep this short, and avoiding unnecessary business bankruptcies, unnecessary household bankruptcy, annette desa seri bankruptcy, unnecessary unemployment. We are beginning to see that right now. Several of my colleagues have alluded to the fact that as these eviction in foreclosures moratoriums expire, there could be thousands of people thrown out of their homes, which will affect the Financial Markets, and in that case, it might good to have a facility backed by the c. A. R. E. S. Act. Some of these issues arent hypothetical. They are not a crisis in the future that we dont see. They are very real. In fact, they are coming unless , andke appropriate action i would think that would be fiscal action. I do think these threats that , and it istial incumbent upon us. Chair powell as i mentioned in my testimony, i think there is a real distinction between the nearterm in the mediumterm. In the near term, we see the spread of the disease. What we are hearing from businesses and Community Bankers we meet with, what we are hearing is that there are a lot of Small Businesses that are at risk of going out of business during this winter, which could be a tough few months. At the same time, we are getting this news about the vaccines, which are more effective, and they have come sooner. So there really is in the mediumterm upside risk here. The other thing i will say is that the fact that the economy was in very good shape at the beginning of the pandemic a be one of the reasons why it has recovered faster than we thought, and continued to defy expectations of problems. I do think those are real risks, though. I think the risk of Small Business is going out of business, the risk of people at the lower end of the income spectrum, where at the bottom quartile the unlemon trait is still 20 . The Unemployment Rate is still 20 . There are not a lot of opportunities right now, so i think there are parts of the economy that will really need help or might need help to get that last span of the bridge in place to get to the other side of the pandemic. Sen. Lee i think one of the points you are making is that the impact of this crisis sen. Reed i think one of the points you are making is that the impact of this crisis is not shared equally. There are groups on the edge of even worse disasters. We willnt act, then have two separate but unequal groups of americans, and that is not a recipe for a country that can move forward. Thank you very much. Sen. Crapo thank you, senator reid. Before we move to senator scott, i would indicate that we are moving a few minutes into a series of votes on the senate floor. I am going to leave right now to vote early on the first vote, and return as quickly as i can. Ive asked senator tillis, who is present here in the room, to chair for me why i am gone for me while i am gone. Senator scott. Sen. Scott for you leave, i would like to set you, thank you for your leadership on our committee. You have done a fantastic job. You have listened to both sides. Youve led in a bipartisan in a nation desperate to see their congress, there Senate Working well and working and disagreeing is part of what we signed up for, but looking for opportunities to bring the committee together and bring this nation together, i think you have been a shining example of that, mike. I want to say thank you for your leadership. Into chairman powell, as well as secretary mnuchin, you have both done a pretty good job under incredibly negative circumstances, and the situation continues to change. Thank you, chair powell, for your leadership for our nation under these challenging times. Secretary mnuchin, you have stepped up to the plate and have provided programs and resources in a way that we have never seen in the history of the country from my perspective, and i thank you for your strong leadership. One of the things i have noticed as we have worked their way through this pandemic, Small Businesses have been struggling, and frankly, as a former Small Business owner myself, i understand the pain and the misery of being in Small Business. I also read, the thrill of victory more than i do the agony of defeat. I remember the blessing of employing members from my neighborhood where i grew up, and having folks join the team as customers, and seeing the revenues increase and the opportunities for my employees increase. One of the things that is often missing when we are talking to Small Business owners is the important ingredient that, for most of us, our Small Business employees are an extension of our family. So when you Start Talking about environmentsiness being decimated by this pandemic, you are talking about the fragile nature of Small Businesses and the absolute implosion of the foundation for so many employees around the country. I think sometimes we miss the fact that when you are talking about Small Business, you are actually talking about employees who work at the Small Business is more than you are the Small Business owner. ,o that end, secretary mnuchin you have watched as i have that 20 plus of all Small Businesses have failed. That number is even higher for hispanic business owners. They are in the 30s, and that is devastating to the community and to the employees of those Small Businesses, who now no longer have a job to go to. And frankly, in the africanamerican community, smallbusiness numbers are in the 40s. My question to secretary mnuchin , minority owned businesses have been the hardest hit in this covid19 economic slowdown. Do you agree with the assessment that direct assistance tailored for those in similar situated wide,sses would have a rippling benefit to the economy . Senator,hin i do, absolutely. Despite the success of project warp speed and the fact that we will have vaccines distributed in large mass, the problem is now these Small Businesses cant wait two or three months. So i would urge congress again to reallocate unused money and more money to ppp. Do a set aside as we did last time, particularly for the underserved areas. I know that you and senator warner and others have worked on a possibility of 10 billion to be invested into cdf eyes into cdfis, so i think there is a lot that can be done and should be done very quickly. Scott thank you. I would say in addition to what we have already done and what we can do, if i am correct, but we are referring to is that the Paycheck Protection Program still has unused resources sitting there, over 100 billion that could be available for Small Businesses right now if congress would get their act together and make those Funds Available to the market. That could have a significant positive impact on the employees of these Small Businesses who today cannot find a way forward. With my last few seconds, i think another opportunity we have before us is to look at the Paycheck Protection Program forgiveness, making it simple, and it may take congressional action for us to simply hide the process. Do you see to simply find the process. Do you see any ability to streamline the process for banks , therefore making it easier for Small Businesses to find a little comfort in knowing that their Small Business loan is going to become a grant . Sec. Mnuchin i will be quite brief in responding, but i would say we have created three separate forms, so we have done everything we can on administrative action, including a separate form, but i would urge congress to make changes to the legislation to allow for would urged i congress to reallocate the 140 billion that is sitting there that can have enormous impact for Small Businesses immediately. Sen. Scott thank you, and that can be done today. We could do that today we decided to. So i am supportive of that concept. Thank you so much. Tillis senator menendez. Sen. Menendez thank you very much. National chaire 441,000mic research, black and Small Businesses have closed, and 650,000 latino owned businesses. 1. 1 million state and local employees have lost their jobs, according to the bureau of labor to to sticks. You dont dispute those figures. Is that fair to say . Sec. Mnuchin i dont have them in front of me, but i have no reason to dispute them. Sen. Menendez how many more Small Businesses do you project will permanently shut her after you end the c. A. R. E. S. Act Lending Facility . Sec. Mnuchin let me be clear, mr. Senator, my decision is a legal decision, not an economic decision. Congress can reauthorize this money if you want to extend it, but i think those Small Businesses need grants. They dont need loans. They cant qualify for main street. That is why main street only did two and billion dollars, and did need ppp money only 10 billion, and they need ppp money. Sen. Menendez you cited earlier sec. 4029 of the c. A. R. E. S. Act as a reason that you had to close down these facilities. What is wrong with that recitation is that this provision applied to treasury authorities to invest in new fed facilities, not the ability of those facilities to make loans to companies in the real economy. So while i agree with you on grants, and the interim we need to use every tool we have. No one will be better off after you into the c. A. R. E. S. Act facilities, as we enter a third wave of covid. I think any of these facilities is not mandated by law. It is important, and it is an economic backstrap an economic backstop. It will have real consequences on our recovery come on American Workers. During your previous appearances before the committee, not a single member, we went through the records, even suggested that you should close the facilities. In fact, most of us on both have beenhe aisle urging you to make changes to the facilities so that they can provide more relief to businesses for state and local governments. As a matter of fact, in october, and response to questions from the congressional oversight commission, you didnt say that the c. A. R. E. S. Act legally required you to end the facilities. You just said you didnt think they were needed. So mr. Chairman, i asked the Treasury Departments Response Commission be entered into the record. Sen. Tillis . Without objection sen. Tillis . Sen. Tillis without objection. Last tuesday, a Treasury Department spokesman said you planned to put the 429 billion dollars youre withdrawing from the fed lending facilities into the treasurys general fund. Is that a correct statement . Sec. Mnuchin let me comment on the first part. I dont agree with your reading. I believe that the section applied to direct and indirect, and had you thought it applied otherwise, there would be a loophole and there would be no point of having the date. I was never asked about the december 31 date. I always assumed that if congress wanted to extend that, they can. With regards to the proceeds proceeds, to the section 4003 talks about the proceeds. It is my intent to completely follow the law, and the law requires the amounts transferred to go to the financing account and then to repay any money lent to treasury, so again, we will completely follow the law. This is not discretionary. If you want to extend this, bring back legislation would authorize me to do it. Keepmenendez you can putting the onus on congress. Let me read to you section 4027 of the c. A. R. E. S. Act come that provides treasury with the toropriation of these funds january 1, 2026, any funds that a remaining shall then be transferred to the federal funds of the treasury. It doesnt say by or no later than january 1, 2026. So these funds being moved ultimately undermines i hope chairman powell, that you will commit to not return any funds to the treasury until we are those can remain in the fund for the c. A. R. E. S. Act. Sec. Mnuchin reporter just for sec. Mnuchin just for the record, they do not go back into the fund, as i stated. Sen. Tillis senator cotton. To. Cotton first, i want join my colleagues in thinking in terry crap crapong senator for leading this committee. The economy is recovering more strongly than i think anyone predicted in march. I think that is important because of the response to the c. A. R. E. S. Act at first and the way the Trump Administration particular, the department of the treasury, and the federal it e has directed has directed it, so i want to thank you for your stewardship. The economy could continue to recover more strongly, especially for those people still struggling the most. The waitresses and the busboys, the bartenders, the karate instructors, music teachers, people who work and build in industries that have a lot of in person, continual close contact. Theres two things we can do to help solve that problem immediately. One is to tell these democratic governors and mayors to stop with their irrational lockdowns. Tell the governor of california gavin newsom not to lockdown small momandpop restaurants while he goes off with all of his lobbyist buddies to one of the worlds most expensive and exclusive restaurants come up paying 300 for caviar and truffles. Second, for congress to pass a new Coronavirus Relief bill. We all have bipartisan agreement to support those people who are still in need, yet Chuck Schumer and nancy pelosi will not relent on their 3. 5 trillion wishlist. They want to hold up funding for Small Businesses and for restaurants and for Industries Like airlines, money to help schools reopen in some states, or stay open, as the case is in arkansas, so they can get things