Taken by the Federal Reserve the path depends of course on the virus it societies the crisis will weigh heavily in the medium term and poses keshl risk, very much a carbon copy, just a couple additions here and from the year, there was one other change that i will tell you about. It was that the path of the economy will depend significantly on the course of the virus. Kelly . We appreciate it. Were going to welcome in our fed panel. Mona hodges, david kelly and jim carron its great to have you all here. Ill go to you, dave, for what you think are the most important messages as we watch the markets so far showing little change from where we saw before the decision came out. Really whats happened since their june meeting is we have seen a surprisingly strong bounce, but then the viruses come back, and that resurgence is what theyre saying is this is not over we know its very uncertainty. The economy has a lot of recovery to do yet, and theyre going to remain very dovish while the pandemic is going on so i think its a signal that rates will remain low, very supportive, for as long as the economy is battling this pandemic. Maybe we can show gold prices, but how does todays decision a lot of the discussion over what that means well, i think in some ways it adds to it they know its low right now, but theyre going to build up government debt. We have an awful lot of fiscal stimulus, if we dont pull back on that, there is an inflation threat i think thats one of the reasons youre seeing this weaker dollar and stronger gold in recent days. So the question here is, are we facing a bubble in et cetera . And with the fed, if they can continue to assert their commitment, to not even thinking about thinking about raising wrights, will we see that assets bubble, if you will, continue to expand yeah, you know clearly what we have been seeing is a bit of a patina effect here there is no alternative. With rates this low and the feds commitment to keep rates low through 2022, investors will be looking to where can i do to get any semblance of a decent return we have seen that exhibited even in Treasury Bonds whether or not its a bubble remains to be seen i think thus far, valuations, for example in the tech land have not really mirrored or approached that of the tech bubble back in 1999. Thats because a lot of these sectors are beneficiaries of whats happening in the economy keep in mind, generally speaking, the fed will probably be on hold the next meeting is the last one so this clearly could last throughout at least 2020 and beyond watching the Market Reaction, there is something to discern, the dollar a tiny bit stronger maybe that will pose an intermediate headwind here but the largest question remains asset prices overall, and this sense that theres not going to be any movement for quite some time the tenyear was almost at a record low going into this, were still at 0. 6 . Do we keep just falling . Are we going to be pinned at these levels whats your read on these things i think the yield that keeping falling is real yields essential what is happening, the fed is essential unapologetic. Now heres where the logic sequencing logical sequencing starts to really matter. We have to talk about dollar at the same time with gold. As we have fiscal policy, we decrease we have Monetary Policy to keep rates low, theres no free lunch. The dollar reserve currency is starting to go down, so for global holders, they need to replace it with Something Else gold or silver, precious metals, that becomes some of of a store in value, so effectively what youre starting to see is an easing of financial conditions, which effect liver the feds goal the fed is managing toward the pandemic they dont think about a virus a vaccine in three months or Something Like that. What mere managing is to a worstcase scenario. Keeping rates low, the dollar weakening, all of these things help ease conditions the ultimate goal for the fed is to reduce the longterm risk of any economic damage that could potentially occur from the lockdowns that came as a result of the pandemic. Their view is if theyre too easy right now, they can take it back later without too much problem, but they better do something now in case things get worse later. Thats the motor of operations theyre in right now could there be a bit of a selfcorrection there we saul real yields go negative in march when you compare to the fiveyear yield. Thats when you saw gold prices take off should we think that bond money will start going into gold or will continue to go into gold, and therefore the price of bonds will become lower and yields will go higher, so like a little selfcorrection . Yeah, we can think of real yields as a commodity price of real assets. So tips, you know, real yield bond prices keep going up, and real yield keeps going down. Tenyear real yields are minus 94, 95 basis points. At that time, the euro was like at 1. 3 it was a so essential essential as the dollar gets weeker, you know, in the u. S. , this is a supporter for sfm so therefore as the dollar weekends so in many ways, this is almost an easing, so its very much tied together, so could there be a correction yes, i would expect more of the same i have one quick followup, and why didnt the gold price keep rising when the stocks did . Yeah, look, i mean, thats a very, very different type of, you know, type of a cycle. And it would a lot to do with banking and housing industry i blows up to doubledigit levels, and probably will stay there for a numbers of year. Just initially for a very brief moment and i dont know if were going to see that immediately as the size of the shock. Thank you all. We really appreciate it. Lets go to steve for some final thoughts. Very quickly. The the fed got a pass this time whats critical. In the next 20 minutes is the extent to which he begins to tee us up. How close they are to making, that wont be true when they reconvene in the fall. First the dollar stronger, a little bit week. Not much change in that at all were trying to get back there fairly muted, theyre Still Holding right near the highs of the day. Theyve been dramatic underperformers, i want to know the vix here as the market is believing that the Second Quarter was the bottom for corporate earnings. I think what id like to hear and what a lot of traders would like to hear is what kind of programs they can use that they have already got in a more creative manner. They certainly have a lot more money they can put into the economy. Lets check into Rick Santelli for the reaction. The reason is what weve been discussing theyre down close to the alltime low yields. The big story and covid, whether through vaccines, through other forms of medicine, or just being ability to deal with the effects in a more official way,ening that allows us to approve is going to create an issue where theres an awful lot of liquidity out there. Rick, thank you of course, we are eight waiting comments from jerome powell, but now we want to be back to the house subcommittee counter the ceos of apple, facebook, microsoft and google. This is exactly the type of anticompetitive acquisition that the antitrust laws try to prevent. It cannot happen again i yield back i would remind the witness that of course, do not alleviate the antitrust challenges that the chairman described. With that, im going to recognize the gentleman from colorado again, thank him for cohosting one of the most important hearing, sand youre recognized for five minutes i want to offer my appreciation to you for the bipartisan way you have approached the subcommittees investigation. I want to start by staying capitalism is the greatest instrument for freedom its given the United States to beat babb fascism and put a man on the moon thiseconomic our witnesses have taken ideas out of of all enjoyed the freedom to succeed in fact, big is often a source for good mr. Pichai in october 2018, google dropped out of the running for a contract for the jedi countered, valued at more than 10 billion. Googles stated reason for removing itself from the bidding process is that the u. S. Militarys project did not align with googles corporate values and principles this is the same u. S. Military that fights for our freedoms and stands as a force for good across the globe these are the same soldiers, sailors and airmen that sackries fights thats lives to ensure of the free dont and sent your corporate policies white house fear unlike in communist china i also find it interonly after months of making this decision to withdraw, marine general joseph dunford, chairman of the joint chiefs of staff warned a committee that the Chinese Military was directly benefiting from googles work it made me wonder , is it that the communist party imprisons uighur muslims in concentration camps . As shown on the chart behind me . Could it be that china forces slaves to work in sweat shops . Maybe they align on the design to suppress free speech in hong kong did google great with ccps decision to line to the world about the Global Pandemic . Then i thought about the dragonfly experiment i wonder if perhaps you agreed with the chinese governments use of platforms to spy on its own people and infers enfo enforeforce drawn conian laws. Maybe the strategy is to steal whatever cant be produced domestically they values, but not the u. S. Military help explained why google wouldnt think twice about stealing right down to the watermark without any hint of attribution. I heard a story that sound sod braz brazen, that it must have been straight from the commune ease communist party and published to say lyrics on the platform a digital wart market that fend out redhanded after google executives stated that they were investigating this problematic behavior, to determine the scope of the miss appropriation. It turns out that out 271 songs, 43 shod clear evidence of matching your company, which advertises itself as a doorway to freedom, took advantage of this small company, all but extinguishing geniuss freedom to compete. Your corporate values once stood for freedom, a platform that let capitalism flourish and helped bring countless people across the globe out of poverty my question to you, mr. Pichai, do you think google could get away with following chinas playbook if you didnt have a monopolistic advantage in the market. Congressman, i want to address the important comments you raise, first of all, we are proud to support the u. S. Government we recently signed a big project with the department of defense where we are bringing or secular approach to help protect pentagon networks. We have projects under way with the navy, with the department of Veterans Affairs happy to follow up and explain more we have a very limited presence in china we dont offer any of our services in china. With respect to music, we license content there. In fact we license content from other companies, so this is a dispute between genius and the other companies in terms of the source of the content, but again happy to engage and explain what we do here further thank you i yield back, mr. Chairman. I now recognize the gentleman from georgia, mr. Johnson, for five minutes thank you, mr. Chairman mr. Cook with over 100 million iphone users in the United States alone and with apples ownership of the app store, giving apple control of which apps can be marketed to apple users, you wield immense power over Small Businesses to grow and pros speaker apple is the sole Decision Maker as to whether an app is made available for app user through apples app store, isnt that correct . Its a feature of the iphone, much like the camera and chip is my point is im sorry to interrupt. The point is that apple is the sole Decision Maker as to whether an app is made available to app users through the apple store. Snark . Isnt that correct . If its a native app, yes, sir. If its a web app, no. Weve heard that rules governing the App Store Review process are not available to App Developers the rules are made up as you go. They are arbitrarily interprete and everyone forced and subject to change whenever apple and developers have no choice to go along with the changes or they must leave the app store thats an enormous amount of power . Also the rules get changed to benefit apple at the expense of App Developers, and the app store is said to also discriminate between App Developers with similar apps on the apple platform, and also as to small App Developers versus large App Developers. Mr. Cook, does apple not treat all App Developers equally sir, we treat every developer the same we have open and transparent rules. Because we care so deeply about privacy, we do but those rules apply evenly to anyone some developers are favored over others, though, isnt that correct . That is not correct as you can tell from going ill give you an example. Baidu has two App Store Employees assigned to help it navigate the app store bureaucracy. Is that true i dont know about that, sir. Enks we you dont have other App Developers who have that same access to we do the beta test apps, regardless of whether theyre small or large. Let me ask you this question for some a. M. By amazon prime, is that a reduced commission such as the one that amazon tries to get available to other App Developers its available to anyone meeting the conditions, yes. Will you me ask you, do they require all App Developers to use apples Payments Processing system if those Developers Want to sell their goods or services to apple users through apple as app store. Isnt that correct that is correct. And by processing payments for apps that you allow into the app store, you collect their customer today, and you use that data to inform apple as to whether apple should whether or not it will be profit appear for apple to launch a competing app. Depending on the specifics whats to stop apple toic inning its commission to 50 sir, we have never increased commissions in the store since the first day it operated in 2008. Theres nothing to stop you from doing so . I disagree strongly with that theres a competition for Developers Just like theres a competition for customers. The competition for developers, they can write their apps for android, windows, e. Box, playstation. We have fear competition at the developer side and the customer side, who went put about their frustrations with the app store . Sir, we to no retalia i or bully people its strongly against our culture. The time for the gentleman has expired. Now mr. Gates. You made the claim that facebook is an American Company with American Values do any of the rest of you take a different view project maven was a collaboration between google as the department of defense that google pulled out, citing ethical concerns you made the decision to pull out of that joint venture following receipt of a letter from thousands of your employees. My question, mr. Pichai, did you weigh the input from your employees when making the decision to abandon that project with the United States military . Congressman, thanks for your concern. As i said earlier, were deeply committed to supporting the military and the u. S. Government we have undertaken several projects since then. We do take our employees in as a company, we are new in the cloud spate at time since then. Thank you thats a sufficient answer you did take their feedback into account. In fact some of yours googlers have recently sent a letter, asking to exit other partnerships some of the asked you to stop doing business with american Law Enforcement saying police broughtly uphold White Supremacy and google should not be engaged in any services to police. As you well know, you provide some of the most basic services to police like email, but also provide services that help keep our cops safe when theyre doing their job. My question here, in front of the congress and the american people, will you take the pledge that google will not adopt the bigoted antipolice policy that is requested in the most recent letter congressman, we have a long,o working with Law Enforcement supported by due process we push back against all broad requests the we are transparent with the requests we get. I understand the history. Im asking about the future. To the Law Enforcement that are watching today, can they rest assured under your leadership google will not adopt these bigot eed antipolice policies. We have committed to working with Law Enforcement thats consistent with due process in the u. S. I know that will be very comfort able to the police who utilize your services. You mentioned earlier in the discussion about china that your engagement in china was very limit limiteded Chinese Academy of sciences haw published a paper that enhanced the targeting you collaborate with chinese universities that take mill i dont think upon millions from the Chinese Military as a matter of fact, one of your googlers, fifi lee, while under your employ, was cited in Chinese State media saying china is like a Sleeping Giant when she wakes, she will tremble the world. The former secretary of defense, mr. Shanahan, said that the lines have been blurred in china between commercial and military application, and as mr. Buck cited, general dunford says your company is directly aiding the Chinese Military, and peter teal, who surfed on the board at facebook, says googles a