Transcripts For BLOOMBERG Bloomberg 20240704

Withdrawing the proposal with michael barr or the other governors . I do not want to get into our internal doings, but i understand it is a live option. We are not at this stage to have that discussion yet because we do not has we have to decide what changes we think are appropriate. Then the question will be when we get to that point, if a proposal is the right thing to do, we will not hesitate at all. In the current environment that we have and politics, there is not a lot that you find bipartisan agreement on, but you could find some agreement in withdrawing that proposal. Can you explain the importance of consensus . Are you concerned with recent trends of disagreement among Board Members . I say think we will get to broad consensus in the fed. This has been our culture. We try to find common ground, and we have been able to do that in the regulatory space. I expect we will hear as well. Could we be seeing this level of disagreement because of extreme measures being taken now that may not have been taken in the past . A difference of opinion and philosophy regarding freemarket economy . I will not speculate, but i will point out that four of the seven governors during the open Board Meeting expressed real concerns, specific concerns about the proposal and we said we would look at the comments when they came in, and that is what we are doing. D think they have validity in their concerns . I was one of the four, so yes. There was a recent report of working with Financial Institutions to query purchases made by american citizens. Has the Federal Reserve been instructed by treasury or anyone else to search americans legal transactions . No, not that i know of. Thank you for being here, mr. Chairman. There is a nearterm emergency to get the military assistance to ukraine. Separate from that, there remains a need for reconstruction assistance. North of 400 billion. At the start of the russian invasion, the free democracies of the world froze roughly 300 billion in russian currency assets. The Biden Administration and many of our allies have recently taken the stance that those assets should be leveraged to provide reconstruction resources to ukraine. I support this concept and believe additional action should be taken to make sure that we hold russia accountable, but there are view concerns on the impact this could have on the central Banking System and the primacy of the dollar. Have you seen, just the act of freezing these assets, not seizing them but simply freezing then, have you seen deleterious effects on the dollar and the confidence of the Banking System . Is there any visible downside that is visible so far in the two years that we have done it . I cannot chr. Powell i cannot point to any. That is interesting. At least so far. Its my mind, having them frozen is as violent as seizing them outright, so it is interesting that so far we have not seen that. In terms, there is a frustration i have had over the fact that directionally, the effects of these are clear that the magnitude is not. You talk about the effect on the prices seen by derivative and users. Directionally, it is clear. If you raise requirements, banks will withdraw from the markets to some extent. Other players will step in and take up part of the slack. Is the data that you have collected enough for you to actually estimate the magnitude of these effects . Is that simply the direction . Chr. Powell it is hard to get to the micro level and assess that. There would be multiple effects. You do know what the sign is. That is right, but if you can avoid financial crisis with a microscopic change, if it is a very large difference in the price, the magnitude matters a lot balancing things. A lot of it depends on modeling for how the different Market Players will react. Is that not going to be in the scope of the analysis that you anticipate . Chr. Powell i believe we have done some work on that and i think the banks and other participants have done work on that as well and come up with a range of answers, but there are in awful lot of variables in these equations, so it is hard to say with any confidence. It is hired, the job of deciding the precise level is a hard one. Not only we have had two major crises with fiscal and monetary response. Are there lessons that you can learn . Rv approaching back to normal now . We have seen in the crisis 15 years ago, we saw what many people thought was in at an inadequate fiscal response. We were limited by the political will to do things. We were limited in what we could do. The comparison to the Covid Recovery has been very sharp and it has put us back on that track. Are there any lessons we have drawn from the importance of having the right balance of fiscal and monetary response . Chr. Powell we think about that a lot. I think, i have to start by saying it is too early to tell. The picture looks very different than what it looked like a year ago. A year from now, we will be looking back and saying, we have learned so much more. The pandemic is still writing the story of our economy and we should be prepared to be surprised with the next chapter, as we ran with 2023. A sharp decline in inflation while the market remained very strong. Youve few forecasters have that. The gentle men from ohio for five minutes. Chairman powell, thank you for being here today. I would like to start out by completely echoing congressman bart. I think congressman bart nailed the thought process. I hope you will withdraw that and take the comments you have heard from here and from so many others about the hazards with the current approach. I would also like to address one of the other practices by the Federal Reserve. It is the practice of paying interest with the fed accounts. It is my strong belief that rewarding banks with returns for taking no market risk actually harms our economy and disturbs Financial Institutions from lending money into the economy. This has little to no impact on large corporations, but it can have a crippling impact on small and midmarket terms. Doddfrank was implemented. We changed some of that mindset with a lot of other policies, but he saw a strong, surging economy. It would pay in two ways. They are unable to obtain loans at competitive rates. A lot of them do not have access to lending except through bank capital. The ultimate they ultimately pay higher rates whenever they have these alternative means of capital. Today i have introduced a prohibition on the act, that would prohibit the Federal Reserve from paying interest on excess reserves by limiting. We can return our economy to the undistorted economy it is supposed to have. The alternative is you could raise requirements. We could do it across the board with an approach. What is your case for why we should keep paying interest on excess reserves . Chr. Powell as you know, we do not see the downsides that you are talking about. Banks have a cost of funds and what they can earn. That is what matters is the spread. They do not even have to put it on their own Balance Sheets. I do not see how that is different than what they can already do. Chr. Powell banks can earn a much bigger thread. The incentive is the same that it always was. This does not affect that. They have the ability to have reserves, but they are not earning a profit on that. They can earn a much bigger profit by lending smaller. You are supposed to pay for your operating costs off of cash flow. The fed has negative cash flow right now, so it is not entirely unrelated that the Federal Reserve operated at a loss in 2023 and is currently carrying 130 3 billion loss on its Balance Sheet this year. It is not the right approach, i think, to be paying that much out in excess reserves to banks that are Holding Capital in the fed, when they could be deploying it into the market. The interest you are paying banks exceeds the income that you are getting on the Balance Sheet assets that you have to the tune of 133 billion asset effectively become the fed is operating at an operating loss. What is the cash flow positivity for the fed . Chr. Powell for many years during the Balance Sheet period, we have contributed to the bank, to the treasury department. You cannot look at a loss without mentioning that. We have been giving billions of dollars a year every year to the treasury department. When we raise rates to do the job you have assigned us, when we do that, we absorb payroll losses. Has no effect on the way we operate the fed. If we retained all the earnings we had, it would not be a problem, but we get that money to treasury. The last thing is, i would encourage you to halt any effort to develop a digital currency. It does not need to be established. I healed. The gentle the gentleman from ohio is recognized. Thank you to our Ranking Member and thank you, director powell for being here. We start by saying, thank you for the monetary report. I have had a chance to try to peruse it. There is something in there that says that the labor market remains strong. He would probably agree to that. It talks about unemployment rates being low by historical standards. It also states that the Global Pandemic played a huge with inflation and inflation rates are on the decline. It has been reported in several charts here and also instantiated by the Federal Reserve of your and surveys that have been met. It also talks about job gains and uses a certain word. I want to thank you for educating us on that. Mr. Chairman, i would like the record to show that all of this resulted during the biden hairs administration, making sure. So often we hear in this committee and other committees about what the administration is not doing and what area economy and jobs look like. Now let me move on to something that is very dear to me. I want to thank our Ranking Member for bringing it up. The lack of Affordable Housing. That is one of the primary things that i hear about when i am back home. To try to explain what you do, what we do. Oftentimes what we do not do and why we have this. I know the Interest Rate hikes have successfully brought down the inflation but rising rates have also had an adverse effect on the cost and the case of Housing Construction and costs. Are you concerned about the effects that Interest Rate hikes are having on the cost of financing new construction . The second part, how do you expect to control longterm housing inflation that might have a potential rate cut . Chr. Powell our policy to bring inflation down is to raise Interest Rate. It works through several channels. The most important is housing, durable goods and sent that. During the early days of the pandemic, the housing industry was about to go bankrupt. All of the facilities we did really supported that industry through that critical time. When we are raising rates, housing is definitely affected. It is not something we want to have happen, it is just the reality that housing will slow a lot you raise Interest Rate. We are doing it for the longer run benefit to restore price stability, which is beyond value. We get that in the near term that is higher rates and fewer sales. We get on that, but we have to do this because it will benefit the country in the long run. I had a great appreciation for that, but also, when i go back home to the district, but i hear a lot from agencies and individuals who work with advocacy groups with the effects of Interest Rate hikes, they are not going equally to all american households. There is no doubt that they were hit the highest or the hardest by these Monetary Policy changes. Black households and this is owners have historically faced challenges with homeownership and access to capital. They are disproportionately impacted. The fed, do you have anything that you can help me with, but this did them a and how we can better achieve economic and more precise and equitable manner . I think it is working. I think it is likely that sometime this year, if the economy proceeds, we will begin to reduce weight. That is really the path that we are on. I do hope it works out that way. When you say economy, what does that mean . Are they going to get more jobs or money . Chr. Powell our forecast is for continued strong growth with wages going up and also with inflation coming down, so that kind of economy. My time is up. I yield back. Thank you, chairman mchenry for holding this hearing and thank you, chair powell for being with us today. I would like to discuss the automated teller machine owners section of the Bank Secrecy Act examination manual. I want to ensure that Financial Institutions will not be discouraged from providing Banking Services to the independently owned atm industry. In 2021, you made it clear that the industry does not automatically present a higher risk for illicit finance. I would like to know what efforts have been made by the Federal Reserve to communicate that position to Financial Institutions across the country. Chr. Powell i will have to get back to you on that one. I might just add that listening to the atm operators over the time i have served in congress, unfortunately, it was in the Bank Examiners manual until a couple years ago, but these operators were identified as being extraordinarily risky, which was causing them to be debate in many cases. I want to make sure that your community communicating that the Financial Institutions and regulators. Tennessee is home to many businesses that have chosen to invest in our state and create more than 160,000 jobs. They are reliant on crossborder financing provided by global banks. The Federal Reserve has long maintained the principles of National Treatment and equality of competitive opportunity, assessing them based on their u. S. Operations. Are you still committed to these principles . Chr. Powell yes. How will they be reflected as you move to finalize the in game proposal . Chr. Powell we have received a separate set of comments from the foreign banks, and we will look at those very much in that spirit. And we will make appropriate changes. The endgame will incentivize. One avenue is the framework of which must be approved by the Federal Reserve. It is my understanding that there is a substantial backlog of reviews and approvals of these frameworks. It is concerning that the Federal Reserve is directing the transfer, yet also impeding it, in my view. Can you commit to reviewing this approval process and taking steps to reduce the backlog of applications . Chr. Powell these transactions are becoming popular right now. There is a lot of appetite to do them. Were are just being careful. There are similar things that happened about credit Risk Transfer during the financial crisis that did not work out. We want to make sure that they durably transfer, and we think that they do, but we have to be careful because the last experience with these was difficult. It is just something that we are not intending to slow these down. We will try to get through it. Is a lack of resources or is it intentional slow walking to make sure that every eye is dotted and every ts crossed. Chr. Powell but i have been told is that we are not stopping the use, but we will be careful with them, so that they really do transfer credit risk in a sustained way. That is the thing. I do not think it is an intention to go slower or have a backlog. We will check. As the Federal Reserve continues to look at proposals, has the Federal Reserve committee had any discussions regarding the adoption of risks and Capital Requirements . Chr. Powell i do not know. Has there been discussion in other committees about the risks and Capital Requirements . Chr. Powell any discussion, i really do not know. If you ask me, any discussion, i do not know. It is not a priority . Chr. Powell to put it mildly. Thank you. I appreciate your answers and any other light you can shed on those matters. I yield back. Recognized for five minutes. Thank you, mr. Chairman for being here today. Following that exchange, i wrote a letter with my colleagues about the Clean Energy Tax provisions. I appreciate your commitment to look at that. I wonder if i could put a sharper point on it. Can you look at it before the rule is finalized . The concern i have is the number of banks waiting for some clarity on that. I prefer we not slow down, if we do not have to. Chr. Powell i think there is a proposal, and we are well aware of the commentary. We will react appropriately. I genetically can pool one thing out of line and deal with it. We are making Good Progress and i think we will be back to resolve it soon with some answers. Time is of the essence. The good thing about going later, you get to followup. I want to followup on your discussion. I appreciated your comments when you mentioned that immigration is a big part of the story in the labor market. Generally, more immigration is generally going to ease inflationary pressure. Is that a safe characterization . Chr. Powell it is probably closer to neutral. People come in and they also spend. They add to gdp. So we get Economic Growth or more workers . Chr. Powell wages might go up a little less, but at the same time, they are spending. It depends on what you assume. Maybe you answered the second question, but given you are all using this data that is more conservative, obviously we are all making investments in the future, can you speak on whether your views on Economic Growth and inflation how sensitive are they to your assumptions on what the actual level of immigration is . Chr. Powell i think the cbo are meaningfully higher and would impact growth. It would be a reason not the main reason, but it would definitely add to growth this year. I would not say that we accept one version or the other. We study the numbers carefully. We are just trying to get to the right answer. They show stronger growth, higher growth, more people. The absolute level of growth goes up. Last question. I think there is a lot of good news in the monetary report that you issued around wage growth. They are starting to close some of those gaps. What i did not see and i do not know if this is because you have not done it, have we seen any gaps, regionally within the u. S. . Are there parts of the country seeing stronger wage growth than others . Chr. Powell when i talked about immigration, i think the immigrations toy for last year was part of the reason why inflation came down. I was asking a question over the longer run. Fair enough. I appreciate that. I want to close on this piece. The atlanta fed, which is the best i could find, as i look through, you look at what regions are consistently running above and new england and the west are showing wage increase above average. The west southcentral are consistently going back to july 2022. Consistently seeing wage growth below average. I appreciate you will not lead into a political question, they are all work right to work states. Without asking you about policy, have you done any analysis that says, as we look at when there are gains in productivity, is it more likely to accrue with workers in states where there is a Stronger Union presence . Chr. Powell my guess is that there is plenty of research in that area. Thank you. I yield back. Mr. Timmons for five minutes. Thank you. We continue to appreciate your work on the behalf of the american people. In august 2023, they released the issuance of banks. I offered a letter to each agency expressing concerns about the lack of tailoring and the proposal and shortcomings of estimating the actual costs. Im concerned that they will impact lending in my district and that it could cause further consolidation of the banking industry. It has primarily deferred. Can you shed light on the role within the process and have you provided input for the interplay . Chr. Powell right now, we are looking at the comments. I believe that has closed. We are very much reading those comments. And worried about the Consumer Protection act. Instead of applying tailoring principles, is identically in terms of long that issuances. The proposal requires them to issue longterm debt at the Parent Holding company, which could be viewed as reverse tailoring. Do you believe that this represents . Category four banks were not involved in the advance notice released in the fall of 2022. Is that your understanding as well . Did the advance notice and 2022 include category four banks . It is my understanding that it did not. Chr. Powell i cannot confirm that. That is something that you should take into account. Category four banks are really behind the eight ball. My next question is, do you believe regulatory agencies should provide smaller regional banks longer in the period to meet longterm debt requirements . Chr. Powell we will be looking at that. If we are going to impose these new regulations if they had been in effect prior to the fall, d believe the outcome would have been different . I do not think anything would have changed. Chr. Powell it is hypothetical, but i am tempted to say that if there had been more longterm debt, it was specifically there to absorb losses. They were nowhere near solvent. The question is if they would have caused them to have a different outcome. It just seems that my colle across the aisle are letting it go to waste. These are changes that would not have prevented the calamity that they are justifying the changes based on. Thank you for being here today. I yield back. Ms. Presley is now recognized. Rising to twentyyear year highest, leaving many homebuyers without a path to homeownership. This is a problem for everyone. It is a rule issue. I welcome the decision of the fed to pause rates. Across the country, that is not enough. We need the fed to start cutting because like the rents, Interest Rates are too high. You previously indicated that the fed may cut rates this year. What would you expect the impact of lowering Interest Rates to be on Housing Market specifically, including the rental, purchase and Construction Market . Chr. Powell they have slowed down the rate of activity. At such a time when we start to lower Interest Rates when the Housing Market will pick up around the across construction and sales. The number, many households are in very low rate mortgages and cannot really sell because they have to refinance into a high rate mortgage. That will go away over time. Ideally, it will go back into a more normal phase, but one with lower inflation and the broader economy. To reiterate, Interest Rates would have a great benefit. I met with a number of representatives from agencies throughout the country and they were talking about the barriers to Affordable Housing projects given the current invite environment. Many of them have chosen to slow down or halt construction entirely. It means fewer people are being housed. When he would be . Given that we have already had a massive shortage prior to the pandemic, when Interest Rates were below 2 , the current rate, five. 5 rate has been devastating in the price of homes have remained stubbornly high. It is clear that the current state of the market is impacting everyone and disproportionately hurting those who need stability the most. Does this concern you . Chr. Powell our job we do not target the Housing Market. We are doing our jobs. It is not something that we want to see. But does it concern you . Chr. Powell does it concern me . Fewer people are being housed. Chr. Powell this is the job that we have taken on. It concerns me greatly. Do you agree that we need a more robust, physical response to increased supply before Affordable Housing . Chr. Powell we do not express opinions on that. There is a structural housing shortage. That is the longer run problem. The longer run problem is a lack of supply. It is critical that Congress Pass appropriation bills that will make those necessary investments in housing for all. Even the way that Ranking Member waters fought for 150 billion investment in housing in build back better, i know that this i have the aisle, my colleagues and i are waiting for the public majority to take housing inflation seriously. Housing affordability is the number one issue that i am hearing about. We need relief now. I truly hope the fed will listen to them and cut Interest Rate. Thank you. I yield. The gentleman from South Carolina is recognized. Thank you. I think other people have noted about the crisis and the Office Building market across the country. That is the kind of line of work we are in. The buildings that are effectively vacant. It is going to have an effect on the taxes paid and on rent. The rates are one thing, but my good friends on the other side of the aisle do not realize that housing has over 200 components to it and one of the biggest is gas prices. As long as we are buying gas from countries, i do not know how you define affordable anyways. It will continue a downward slide. It is we are not going to have the Housing Starts we should have. It is backing the entire economy. Guard rails for credit card fees, how do you answer . How do you answer the charge that this is it should not be in the way of charging fees . From my record, the Federal Reserve finalized a routing that proposed tighter. Is not is that not right . Chr. Powell it may well be right. All the Credit Unions and banks have concerns. Do you need a letter from us . Thank you. The cra, for those of us who have been involved for a long time, the regulations, have a set of standards. When should we have regulations out that we can read what will be acceptable and what will not . The changes and regulations for cra. When will the regulations be out where the banks will know what is acceptable for cra and what is not acceptable . Chr. Powell the final rule is out. There is a lot of work to do. Requirements do not take in for a few years at least. I think we are working on the followup regulations. That is important for all the banks. They need to make sure it is going in the right spot. The credits will not be applied unless that is a. The fed now, where the Federal Reserve is operating this now, what has the Participation Rate as to do with that . Chr. Powell really slow. They go slow until they do not. It was the same way back in the day. If you are than 500 banks in there now. We expect it will take some time. But it is there and we think it will be beneficial. Is the pricing below cost . Chr. Powell i do not believe so. That is all the questions i had. Thank you for being here. The gentleman from nevada is now wrecking eyes. Thank you to the chairman and Ranking Member for appearing before the committee to discuss the recently published Monetary Policy report, as we continue on behalf of the american people, we had to keep in mind that our mission is to grow the economy on the bottom up. It seems that there have been a constant series of shocks domestic reenter globally. We can all see how resilient it has been as they maintain their strength. The january numbers are a continuation of the trend that democrats in congress delivered through investments in our workforce, putting people over politics. In light of this economic strength, i want to implore the Federal Reserve to take stock of the economic picture before making decisions on Monetary Policy and to pay particular attention to those communities that have been historically left behind during times of accelerated recovery. I want to add to the comments. At a time when it has become increasingly difficult for working people and people of color to purchase a home, i worry that rising Mortgage Rates will put families even further behind on accessing the wealth and equity that a home provides. What actions, if any are the Federal Reserve considering to better understand and mitigate the impacts that your proposal might have on minority borrowers , who disproportionately rely on high mortgages, due to the generational wealth gap that persists . Chr. Powell we have received comments, including many of the changes. We are looking very carefully. We have not made any decisions, but we will announcement. I you concerned that they will reinforce the decades long retreat and push more to nonbank institutions . Chr. Powell that is something that we are taking very serious. Could you discuss why you feel it is necessary to requirements around Operational Risk and might of recent claims that it will significantly increase or prevent banks from offering necessary services, such as underwriting, advisory insurance . Chr. Powell that is one of the concerns that has been voiced. We take those concerns seriously. We are in the middle of looking at these things. In the process of turning to these. I would underscore the sense of urgency. It creates negative effects to endusers, all of our constituents looking to see these costs come down. I have made it a focus. On the farreaching benefits of increased diversity. Despite the efforts to take away the very tools of economic opportunity, there has been a misguided assault for equity and inclusion. As you know, your office and it has as we anticipate the upcoming release of the report on inclusion, would he be able to speak to collecting this data that womenowned minority businesses are included in the acquisition opportunities . Chr. Powell i do believe we collect that data. Why is it important . Chr. Powell i think diversity in the workplace is an important thing. He will not noah lesslie measure it. Companies that have more diverse management teams actually outperform companies that do not. That goes to the bottom line of our economy. I wish our colleagues would stop their assault and actually work with us to grow the economy. Not recognized for five minutes. Thank you for being here. You are navigating a difficult situation, where we have had stimulative policies, excessive government spending, specific tax credits, at the same time seeing a Regulatory Environment that is restricting Economic Growth. You have heard a lot. We noted that Interest Rates are impacting investment in a negative way. As we look at the endgame, i have heard from a wide array, from those commenting on the negative impact that would have on the Housing Market, the impact that would have on the ability to invest on infrastructure. Does the broad diversity of voices hold concerns for you . Chr. Powell i have articulated concerns. We have reading those comments and we are assessing what we need to do to address them. I appreciate your time on that. Should gears, there was a meeting today to improve the final Climate Change rule. It is a significant regulation. Can you talk about how it impacts inflation and unemployment . We do not chr. Powell we do not comment on other agencies. We are just not in the business of scoring. They will make an assessment. I will shift gears again. One of your mandates is maximizing employment to maintaining price stability. Government hiring is accounted for a large share of job creation. Many jobs were created last year. Nearly 3 million workers. How does the fed view the impact of employment growth relative to private sector Economic Growth . How do the data points factor into your assessment of how the economy is performing . Chr. Powell jobs are jobs, but we will look at private sector jobs for a better indicator of privatesector momentum in the economy. But they both count. Doesnt give you pause for concern cause for concern . Chr. Powell the truth is, the Public Sector was unable to hire at the beginning. There is some catch up hiring going on. Im not sure it is an issue that we are concerned about. I will shift gears in my final minute. Things that are having an impact on Monetary Policy. From antimoberg at home, to other factors. It is probably too early to tell if we have a true productivity view. How do you view the adoption of these particular things . Chr. Powell everyone is looking at a for that question. We have had really nice productivity the last year. It is very much impacted by what we are seeing. Ai certainly has the capacity to augment labor or replace labor. That is a key question. Tons of money being invested. I would say right now, technology but also higher labor mobility. Also, the rise in start. Those are the kind of things that add up to higher productivity over time. Thank you for your comments today. I healed back. We will go to the last question of the day, mr. Torres for five minutes. Mr. Chair, i have several questions about common complaints that i have heard about. I have an open mind on the subject, but i want to hear your response to some of the arguments. The fed has repeatedly reassured the public the Banking System is undercapitalized. How do you reconcile the Banking System . Second question, if the purpose is to align u. S. Banks with peers elsewhere in the world, why is the fed imposing requirements more stringent . Why is the fed goldplated . The third question, how do you reconcile the recommendation for standardization with congress requirement for tailoring . The fourth and final question, do you think that it could have the unintended consequence of reinforcing the trend towards shadow banking . Is there a sense where we are transferring risk from the regulated sector to the deregulated sector . I will give you the time you need to answer. Chr. Powell i will start with a yes to the fourth one. That is clearly a risk. We have seen mediation activity moving out of the territory system. In a word or two, what was it again . You testified. Chr. Powell i address this in my opening remarks. It will always add safety incentives. But there is a cost. It is very difficult. I have said for years that i thought it was about right. I voted for all these increases. The second one was about gold plating. I said this in public remarks, that we are exceeding the minimum and what the other jurisdictions are doing. That is a good question. I agree. The third is, more or less on standardization. Chr. Powell standardization of . You are right. We need to take on the lessons as it relates. But we do not need to throw away the tailoring. It was largely a story about liquidity risk. What is your response to the criticism that the fed should focus its energies on addressing the forms of risk that were responsible . Chr. Powell we are working on a package of liquidity measures that directly address the Silicon Valley situation. We have taken a lot of supervisory actions with other medium and small sized banks and things like that. We have been doing a lot on the supervisory section. As you know, the crippling cost of housing accounts for the a third of inflation. It has financed nearly 4 million. The Banking System accounts for 85 of investments. There is a concern that they would diminish the availability and amount of 41 housing development. Is that on your radar . Is that something you are willing to examine . Chr. Powell yes. The gentleman yields back and that is the final question of the day. We committed to the chair that we would stop by 1 00. It is nice when we can honor our commitments. Thank you for your testimony today. For the witness to the chair, the questions will be forwarded for his response. Please respond as promptly as he possibly can. With that, this hearing is adjourned. Lisa finishing up the first of two days of his testimony on capitol hill. Good afternoon and welcome to an extended version of bloombergs week. On this bed wednesday, a lot going on. Welcome, everyone. I think it is safe to say, breathing a little bit of a sigh of relief. A similar one from jay powell. A Strong Economy will keep things on hold for now. Meantime, as this was all happening, were watching shares and they were tumbling. Lisa that is front and center. We are waiting a few minutes. In the meantime, lets get a headline from charlie pellett. Charlie a lot of moving part. Stocks in the green. Close to the session highs. We are looking at a gain. Industrials are up. The nasdaq composite index is up. 10year, yielding with a twoyear at 4. 53 . 21,000 on gold. 2. 4 right now. Up by 6. 2 . Trying to raise equity capital. Down by 42 . Deutsche bank has cut by more than 10 after a slump in deals. A gain of. 1 . Lisa thank you so much. We are live in our bloomberg studio. The main event is what we just heard from. Charlie is breaking down some of those key points. We iterating that the central bank is in no rush. A little bit of everything. The fed chair pointing out the importance of not going to sue or too late. Tim he repeated would use that his last