Secretary of the treasurys oversight. Mr. Secretary this is your first appearance before the house after the tax cut and jobs act has been signed into law. On behalf of the majority we are grateful to you and the president for your leadership and to help make this act signed into law that is historic. After eight years of failed policy that led to the slowest and weakest recovery the economy is starting to take off and wages are growing. Consumer optimism abounds. Its ironic but predictable that equity markets would swoon over the prospects of highest Interest Rates and inflation associated with Economic Growth. Low Interest Rates may have benefited some on wall street but not helpful to main street. We knew the fed would face challenges when the economy took off. If youre listening, good luck chairman, you volunteer for the job. Today the economy is getting stronger due to policies of the Trump Administration. Averaging 3 growth unemployment is a 17 year low. Wages grew at the fastest in a decade. All of this and President Trumps first year in office and were now on the leading area. J. P. Morgan chase recently announced it would be making a 20 billiondollar investment across its business lines. They plan to boost Small Business lending by 20 . In dallas another is boosted minimum wage to 15 giving a 1000dollar bonus to 4500 employees. Nationwide is giving a bonus and ink creasing its 4o1k match bb t is raising its minimum wage from 12 to make 15 an hour and giving employees a onetime bonus of 1200. These are just a few of the companies that have announced benefits to two tax cuts. Again, thank you tax reform alone will not unleash our nations full potential. The last eight years our economy has been drowning in a sea of complex the Trump Administration has cut red tape that work remains including at the Financial StabilityOversight Council. We need to monitor Market Development facilitate sharing and make policy recommendations to congress. Unfortunately can harm our economy through its designation. It is eviscerated ge capital, a Great Company that had capitalized millions of small and Midsize Companies in a dangerous and unlawful effort and attempted to designate metlife and the decision was arbitrary and overturned. Encouraged by what i read in the annual report i look forward to hearing more about it. I recognize the Ranking Member for four minutes. Thank you and welcome back. I look forward to your testimony today on the annual report of the Financial StabilityOversight Council. Im concerned the Trump Administration is determined to removed all nonbank important institutions regardless of whats left or what threat they post our economy. As we know, one institution, aig nearly brought down the economy in 2008 and had to be bailed out to the tune of 182 billion. They play key role in the stability of the economy. It cannot be weekend by doing with threats of risky Financial Institutions. Its also important that the secretary address several outstanding inquiries on vital matters with National Security implications. As a general matter, secretary mnuchins handling of inquiries from democrats have been unacceptable. Serious questions have been raised about the finances of President Trump his family members and associates and their involvement with russian officials financial Crimes Enforcement Networks i and other democrats on the committee have requested information from the secretary several times. At the last appearance i asked about a letter that we wrote regarding President Trumps financial ties to russia as well as those of his family members and associates. He did not answer the letter nor was he forthcoming in his testimony. Since then weve sent to followup letters pertaining to the finances of President Trump and his associates as well as his own handling of lawenforcement and regulatory matters that may involve those individuals. The reply re received from his staff did not provide answers to our inquiries and instead encouraged us to get the information from other committees with which the treasury provided documents. Despite the fact that we have clear jurisdiction over this matter the secretary thinks referring us to other committees is a satisfactory answer, it is not. Im also concerned about the Trump Administration and action on the sanctions packed with broad bipartisan support by congress in 2017 to punish russia by interfering with our democracy. The Trump Administration has missed several deadlines related to the sanctions which is on acceptable. His inaction serves to advance the interest of putin, the kremlin and the russian oligarchs to the detriment of the American People. My january 21 letter has gone on answered as of yet. Since he is here today, its my hope he will provide answers to the questions we have on these matters. With the i will yield back the balance my time. We now recognize the gentleman from missouri. For 45 seconds. Thank you for being here today. Last year we made progress on tax and regulatory reform. We must improve the efficiency of the Regulatory Regime that is left consumers and Small Businesses on the sidelines. Regulation needs to be responsible and taylor. With regard to risk, for too many years the federal government has been trying to purge all risk from the system. I urge you to use your authority to reregulate and promote Financial Stability through analytical processes. I look forward to your chest money and i yield back. Recognize the gentleman from michigan, the vice Ranking Member for one minute. Thank you i appreciate you being here. My hometown is flint, michigan. What happened in flint it is an example of what happens when we fail to invest in older industrial cities. The town struggling to make that transition. The water crisis is a tragedy that is ongoing. It should be a wakeup call for every american about what happens when we put Balance Sheets ahead of the interest people. Yet weve attempted to justify changes in our tax code by implication that will hurt these communities. The republican tax bill, certainly there are winners and losers and we could litigate that, one thing for sure the changes in the tax code are already being used by the administration and congress to justify cuts to programs necessary to the revitalization these already struggling places. That is not acceptable. There is no way to justify that. We need a plan to reinvest to reinvigorate. The implications cannot be overlooked. We cant focus on the people on the top for winning. Your time has expired. My fellow michigans were a guest at the state of the union address. Barber describes himself as a young hungry for success and continues to strive for growth. He is said because of the tax cuts and jobs act he is saying that our goals can be extended. Im increasing wages and trying to hire more people and broaden our reach to serve more customers. Were trying to buy buildings instead of rent buildings. Its a common story. Its not just about providing crumbs to the American People, its helping young entrepreneurs grow our economy and achieve the american dream. We must do more to make sure that we have a better future. He also knows whats happening on wall street is a technical correction here wall street. Far too long weve been ignoring main street. Its time to turn it around. Appreciate you being here. Time has expired. Today we welcome the testimony of stephen the nation, United States secretary of treasury. As previously testified before committee so i believe he needs no further introduction. Without objection your written statement will be made part of the record. I wish to inform members that we do expect a vote to interfere with her here in midmorning. The secretary has agreed to stay until 130, the customer three hours. Youre now recognize for five minutes to give an oral presentation. Thank you. Thank you for inviting me today. One of my Top Priorities is sustained Economic Growth of the American People. Im happy to report the growth of the economy over the pasture was higher than the average over the prior 20 years and included three straight quarters of 2 higher gdp. The president promised robust growth and hes delivering. How to talk about the Financial Stability 2013 annual report. Its important vehicle to provide you with the recommendations relating to regulatory developments and potential risks. The report emphasizes Economic Growth to maintain enough Financial System. Since the crisis will come to assess the effectiveness of regulatory reforms and consider their unintended consequences. We need to modernize outdated regulations and taylor regulations based on the size and complexity of Financial Institutions. It discusses a number of risks like to emphasize the Cyber Security. The Financial Systems increases the risk that significant Cyber Security incidents can disrupt the Financial Sector a potentially impact u. S. Financial stability. Gains have been made but we need to emphasize the need for sustained attention. We make recommendations including the creation of a privatesector counsel Senior Executives to collaborate with regulators to mitigate Cyber Security. Turning to growth, the jobs act last year was the top priority. Its already having a positive impact. The tax reform, over 3 million americans have received bonuses or other benefits and over 300 companiesnotes decreases the workforce. This can be greater spending on the play training, infrastructure and research and development. Will lead to longterm prosperity and companies to bring cash from overseas. Let me turn to specific priorities. I want to commend the house in congress for their work on financial regulatory reform. I appreciate your work by passing hr tank, the financial choice act in dozens of bipartisan bills. It reflects many of our recommendations release last year. Encourage you to Work Together to move the legislation as quickly as possible. Last week i wrote providing notification my determination that a debt suspension. Last until february 28. I urge congress to act as soon as possible to protect the full faith and credit by increasing the statutory debt limit as soon as possible. I support the Foreign Investment risk review modernization act and applaud senators and representatives for their leadership on this issue. It will enable us to protect our National Security. I look forward to working with congress on this. One of the core mission is to safeguard using powerful economic tools. Well take frequent risks. These include terrorist groups, human right abusers, cyber criminals, and rogue regimes like north korea, iran, and venezuela. We continue to review intelligence to identify targets with maximum impact and deny access to the u. S. And Financial System, disrupt Revenue Streams and pressure for a change in behavior. Last week the Treasury Department submitted reports in compliance with sanction legislation. They report another chapter in our efforts to use our economic authorities to counter the threats we face. The Current Situation for fannie mae and freddie mac is neither a sustainable nor lasting solution. The administration looks forward to working with congress in a manner that helps consumers obtain the best housing suited for their own personal financial situation. At the same time protecting taxpayers. Part of what weve accomplished so far. Americans expect their government to policies that allow them to succeed and prosper. I relationship is vital to that mission. We look forward to working with you. Thank you. I look forward to answering your questions. The chair youll strum sells for five minutes. If you could draw that microphone closer to. On her way out the door chair allison that equity values are quite high and there potential dangers there. I dont disagree, i just thought it was curious that they would say such things. Economists have predicted that once it the economy took off there be pressures on equity markets. Clearly markets are still up in the administration but huge volatility over the last few days. Can you give us your view on whats going on. First, were focused on the longterm Economic Growth and believe the policies weve enacted are positive for longterm Economic Growth. Receive that in regards to investments back in the United States. The stock market is up significantly since President Trump was elected. For monitoring the stock markets we continue to believe in the long term impact of the stock market. On page six you call on congress to create a more Sustainable Housing system for Financial Stability. We know its been ten years since the financial crisis in congress has failed to act. If we fail to act in some of us are trying to work on bipartisan reform. Such true that roughly year from now the president gets to the point a new fhfa director to serve for a fiveyear term . Is that correct. Thats correct. Is it true that the directors not just the regulator but also the conservatory . Thats correct. As conservatory the director has broad sweeping powers. For example, i believe if Congress Fails to act the director could just continue the harbor Home Affordable Refinance Program . Thats correct. Is it true that the fhfa director could suspend these to the trust fund if they found it would contribute to the financial instability . Thats correct. Under 12 usc 4566 the fhfa director can choose not to enforce the statutory housing goals of the gses if he finds the achievement of the housing goal was or is not feasible. Thats correct. I hope all have listen carefully what might happen if we choose not to engage in gse reform. And again, we look forward to working with you in the administration my friends in hopes that we can find america a truly Sustainable Housing system. One that puts peoples in homes that they can keep. Different question, today theyve designated for Nonbank Financial Companies but today only prudential remains designated. Have sock is it supposed to evaluate these designations annually. When was the last time it was reevaluated . I believe its coming up but it has not been evaluated recently. Is there a specific timeframe . It will be this year. We know a few weeks ago the administration chose to drop the government appeal of the net life litigation. We know an Article Three Court found the designated process to be fatally flawed. Was that the same process that led to prudentials designation . I wont make the comments on prudential but the majority of the members recommended to the Justice Department to drop the case. Will be working with the committee on revise guidelines. I think theyll include a cost benefit analysis to the economy and its impact on jobs. I now recognize the Ranking Member for five minutes. Thank you. Pursuant to clause d4 of committee row three, a request recognition to question the witness for an additional five minutes upon the conclusion of the time allotted to me under the five minutes. You are recognize for ten minutes. I want to ask about the subject of my most recent letter which is your departments role in section 231 of the counting americas adversary act. Congress passed the law on a bipartisan basis with the objective of punishing russia on its attack on our democracy. Do you believe our intelligence agencies as they have said to us that russia did hack into our dnc and undermined our democracy. You believe that to be true . I believe in the intelligence assessment. I want to refrain from specifics that are classified. Even the finding sections references the findings that russian president , Vladimir Putin ordered and influence campaign aimed at the election. They also recognize the warning that moscow will apply Lessons Learned from its putin Audit Campaign aimed at the u. S. President ial election to influence efforts real worldwide including