That broadly speaking if we dont get that, there would certainly be Downside Risks certainly through the channel i mentioned. Thank you cnn. Thanks for taking my question chairman powell, give us an update to the policy framework and repeated calls for this and this event, is the fed open to other parts of the economy such as income inequality and Affordable Housing we monitor everything we think is important in the u. S. Economy. In a broad sense, all of it goes into thinking about Monetary Policy you mentioned inequality so disparities in income and Financial Wellbeing demographic and racial categories, something we monitor carefully, inequality, which i would point to its a multifaceted thing, stagnation of nat the lower end of the income and lower mobility those are things that hold back our economy. They are the thing is we dont really have the tools to address those. We have Interest Rates and Bank Supervision and Financial Stability policy and things like that, but we cant get a
Today. We start out of with the fed staying put. Jerome powell signaling the rates will stay near zero through 2023 stocks getting an initial pop, but reverse course as the fed share took questions from the press. Steve, what was it, do you think, that spooked the markets . You know, its always hard to know maybe one of those sell the news things there was a bit of history in the statement where the fed for the first time put in the statement that its new goal is to seek inflation above 2 that was in the longterm policy strategy but it had not yet been in the statement. This is the first statement following that change. It was a bit like there was nothing behind it in the sense that, the question that i asked, i said, well, how come your forecasts dont show you hitting the goal, not even in the fouryear horizon here the fed chair didnt really have a good answer for that you would think if you said, you know, im going to move this tanker faster, you know, youd be pushing the throttle do
A big upgrade. We will find out what makes it stick out in that big social media space. Plus, petes got a fast pitch on one medical device maker he says could be a home run. We will tell you what it is as he lays out the big case thats medical miracle mystery chart. In a special bonus hour of fast money at 6 00 p. M. Eastern time, we are taking your burning trading questions. Tweet us cbs fast money and you might get them answered here live on the show in the next hour we start with that monster rally on wall street today the s p up more than 1. 5 and the dow jumping over 400 points as you can see there the nasdaq also up nearly 2 leading those markets Higher Energy stocks, financialis and the small caps as well investors appearing hopeful a new deal for stimulus is town the pike markets still down significantly for the month. Does todays action give you a reason to perhaps be more optimistic and for that perhaps, guy, i will turn to you first. Welcome its always wonderful to have you
They have agreed to a loan of 5. 5 billion from the Treasury Department you may remember they initially had an agreement on 4. 7 billion to be borrowed they have up sized it to 5. 5 billion. They have to take a draw of at least 10 . Theyve drawn down 550 million today. What does the Treasury Department get for this . 10 of American Airlines if american borrows about 9 billion, the Treasury Department will get americ 900 million if youre keeping score, american is now sitting on more than 42 billion in debt the stocking is moving higher in the after hours session it remains to be seen if they will need to borrow but the fact that they have said we may need to borrow another 2 billion in addition to that 5. 5 billion, its clear they realize theyre in for a rough six months here you will not see a big increase in passengers. That means its going to be tougher to get back to break even. A crazy low price target on this, it was 1 or 2 price target on american it is known as the weakest Bala
Lets get straight to steve liesman. Jay powell testimony before the House Services committee will note improvement in the economy saying Household Spending has recovered three quarters of the decline and say this is in part response to federal spending and higher Unemployment Benefits which is running down he said housing has rebounded and Business Investment showing signs of improvement but overall employment and Business Activity with well below the prepandemic levels an the out light is uncertain. He makes special mention of the feds main Street Lending program, a 600 billion program with a backstop from the troo z treasury hell be speaking tomorrow before the house financial Services Committee with treasury secretary Steve Mnuchin and this is required testimony about the cares act where they have to quarterly appear before congress and discuss progress with the lending programs. The terminology, highly uncertain, is that different from what the clair has used in the past. This is t