Virus. This is two and a half hours. This hearing will come to order. This thing is another remote hearing by video. A few Video Conferencing for minors youre probably health used to these. Once you start speaking, there will be a slight delay before years displayed on screen. To minimize the background noise, please click the mute button until it is your turn to speak or ask questions. Theres a Technology Issue we will move to the next senator until resolved. I remind all senators there is a five minute clock that still applies and should be on your screen. At 30 remaining i will gently tap the gavel sometimes i forget to do that but i will try to do that better today. And remind you that your time is almost expired. To signify the process well get it rated to go by seniority for this hearing. Today Federal Reserve chairman Jerome Powell will update the committee on Monetary Policy development. In the state of the u. S. Economy. Its only been four months since the last hearing bursting is significantly different economy today. If one has been hard for the physical and Economic Impact of the covid19 pandemic. An ensuing shut down. Chairman powell, has stated that the Federal Reserve the strongly committed to using our tools to do whatever we can and for as long as it takes to provide some relief and stability to ensure the recovery is as strong as possible. Additionally the fed has purchased more than 2 trillion in treasury and mortgage securities. And assets in the midmarch. Because of this, the feds Balance Sheet and expanded more than 7 trillion. Congress the administration and regulatory agencies can take an extreme action to protect and stabilize infrastructure of our Economic System. The cares act is essential to that effort with the recent statistics indicate that our efforts are working. The bureau of labor statistics announced on june 5, encouraging sensor jobs and the economy. The non farm payrolls limit rest like to have million in may and the unappointed rate declined to 15. 3 percent. According to the report, these improvements in the labor market reflected the limited Economic Activity that have been curtailed in march and april due to the coronavirus pandemic and efforts to contain it. Title iv of the act provided a 500 billiondollar infusion to this exchange is stable and efficient fund up to 454 million of which can be used for support Federal Reserve emergency facility. Such as the main street living facilities in the municipal lending facility. The fed has set up funded by under and outside of the cares act. There is evidence that the mere announcement of some of those facilities has had a positive and stabilizing effect on markets. Even before they had become fully operational. A rarity positive effect is welcomed getting them fully operational ensures that they achieve their full effect. The Federal Reserve recently announced positive changes to the term sheets in the main street facility. That will allow additional is to access the facilities and announced that the facilities open for registration and have encouraged lenders to start lending as soon as possible. These are important first steps and then becoming fully operational. In addition to emergency lending facilities the fed continued to right size relations to increaset in the economy. In response to a letter that i sent to the federal making regulators unemployed, vice chairman noted that congress should continue modifying. The following was the regulators to provide flexibility under tier one leverage requirements as banks demand. There also several proposed rules of the agencies have been working on since before covid19. I encourage the agencies to finalize these rules as soon as possible. The recovered funds this hearing i look forward to hearing more on the state of the economy including its response to the cares act an update on the state of the 133 emergency lending facilities and how the facilities have provided necessary credit to households, businesses state and localments. An additional regulatory and legislat and increase credit and liquidity in the the economy. Chairman powell, i think you for joining us today. Senatorin brown. Thank you y mr. Chairman for holding this hearing. Thanks to chair howell for participating in this meeting remotely. We know theus the lives of hundreds of americans every single day. Across the country in big cities and small towns alike higher americans are calling for the government to respond to the Economic Impact of the pandemic. Their outrage over the killings of breanna and Breonna TaylorAhmaud Arbery and george floyd and thehe demanding justice ann into the systemic racism. It pervades every aspect of American Society including our economy. Your job at our job in this committee is to oversee our Economic System and to be good stewards of our economy. The requires economy since it actually is. Were not overseen academic model of a perfect marketm has been woven into the fabric of our nations history since its very beginning. The details and we see how it works from jim crow to redlining to todays an important civil rights laws. You cant rely o to sort itself out. It never has. And it nl. We know black workers are less than their white peers into the same jobs have the same education levels. We know that black h families are far less likely to own their own homes and white families. One of the black students borrow more and pay more for college. We know black retirees have less money for retirement endless wealth to pass on to the children. Many mr. Chairman including Seven Members of the house andnd senate, suggest both in their statements and in their policies the black americans are uneducated and dont work hard to start businesses or invest. There is a false racist narrative. The real reason behind it disparities, is that we have for centuries have the systemic president denies black americans theri opportunity to fully participate in our economy and the peopn the market to save corporations and the white men who run them saint bono we cannot have government governments always. It is only been a question of who is intervening on behalf of corporations the privileged f to make this country work. And it is today. This economy run. It is of the ceos and other top executives. The people the soccer shelves deliver packages and care for our health. We finally started calling these workers, mostly women disproportionately bck and Brown Workers. We finally started calling these workers, what they are neutral. Them that way. Even before the pandemic, this economy was not working for working americans. Artisans workers face barriers, the housing and t healthcare, wealth equality and inequality continued to rise. Corporations making record profits, rewarded their increase evidence Stock Holdings and buybacks, they werent using those record profits to pay their essentialrepairs what they are actually worth. La seems in aligning the pockets of their investors and executives at the expense of theut of the government to push in the lending during this crisis. And c and the Federal Reserve to service life to supporter our economy but treasury help Financial Markets and corporations in a holding of the other end of the deal. We ask you to make sure the working americans remain employed and safe. They c ayafloat just look at the stock market. Number of americans out of job into the tens of millions. With all this out in the 2008 financial crisis, governmentn intejened. D they were all too happy t government handouts and in fact was considered patriotic. Millions of americans were left behind losing their jobs and homes. Eating paid less but many of them fought for more help the stimulus for the people who make the economy work in street interference. History repeats itself. As covid19 spread across the country earlier this year, many workers, most of black and brown themselves thrown from one crisis into the next. As it currently stands with no steps taken to actually ensure the money in the lending goes to workers, treasuring the d federally reinforcing inequities between workers andre wall street in between black and bro americans and white americans. Needs to do more to help t our state and local governments. For money directly in peoples pockets and i agree. Democrats have a plan to get more help directly to worker working americans, but Mitch Mcconnell is in no rush to help people he said he sees no words no urgency. La to pretend like where not in an economic recession to go to work without real safety precautions at the same low wages while they feel are wall street friends from liability if any of their workers get sick on the job. We want people to go back to work too of course they want us to return to business as usual. We know what that is. Government intervention to put some skilled corporations and the wealthy shareholders in the free mar else. We can know its return to that business as usual. The economy and justice are not separate issues. The americans who protest across the country and they want tenant tonm Police Violence and takes black lives and want to know their places. In the post will be sup Economic Security is a place to live. The want the president to ask it is citizens interest on his own party they want to again have faith in their government. How was it an offense are now the white house is not going to. The congress and the federal alike both taking action notice for the workers to make this economy run. That means providing help for immediate needs, means addressing the systemic racism and economic justice. It will hurt many people and make inequality worse of a a failed act. Anded companies can get bailed out, keeping their workers and companies can stop stop by back and difdence have wall street and actually adopt policy that combat inequality rather than supercharge it. This gives itead or lead to big businesses and link we during the last crisis. We need to be better stewards of the economy. Thank you for youryour leadership radar due to freedom of t your sure that you and the thousands of talented men and women who work with you are dedicated to taking steps to ensure this economy works for all americans. Thank you. Thank you senator brown pretty. Th you. The members of this Federal Reserves annual Monetary Policy. Our country continues to face the difficult and challenging times as epidemic is causing trem hardship here in the United States and around thes world. The coronavirus outbreak is first a foremost a Public Health crisis. The most important response has come from a Health Care Workers on behalf of the Federal Reserve, on express her security gratitude, the dedicated individuals who put themselves at risk, day after day in service to others ao her nation. Beginning in mid march economic fell on an unprecedented to thehe outbreak of the virus and the measures taken to control it spread. If after the unexpectedly positive may employment report, nearly 20 million jobs have lost since february. Recorded on the planet rate risen about ten percentageth points since decline in this corner, it is likely to be the most severe and record. In the burden the downturn is awful and us, instead the ones least to withstand the downturn. As discussed in the june policy households have experienced b sharpest drop covenant limits while job losses his hispanics and the downturn for the white and gaps while being long expansion had made some process and progr closing. Recently, some indicators that point to a civilization, and in some areasatmic activity. Easing of restrictions on mobility and commerce. In the extension of federal loans andsome businesses a up. While stimulus checks and Unemployment Benefits are supporting Household Incomes and spending. As a resgher in may. That said, the levels of output and implement remain below their pandemic levels pre pandemic levels. In the timings and recovery, ndmuch of been uncertainty about the disease andnc the effects. Until the public is confident that this diseases contain him a full recovery is unlikely. Moreover the longer down ts last of the greater potential for longerterm damage. From a job j loss, and business closures. Long periods of an appointment can erode workers skills and her their future jobs. An appointment can also negate gains made by many disadvantaged americans during the long expansion. Describe to us in our meetings. The pandemic is presenting acute risk to Small Businesses as discussed in the Monetary Policy report. On page 24. The smaller mediumsize business becomes insolvent because the economy recovers to slowly, what is more than just that business. These businesses are the heart of our economy and the work ofdi generations. With weak demand and lbrge decline for some goods and services such as apparel gasoline and hotels, Consumer Price inflation has dropped noticeably. But indicators of longerterm Inflation Expectations have remainednd steady. As output stabilizes the recovery moves ahead inflations should stabilize they gradually move back upze over time to her symmetric 2 percent objective. Inflation is nonetheless written likely to remain below it. The feds response to this to both maximum and employment and stable pricing along withnsibility toty. We are committed to using our fall ranging tools to support the economy. In march we put the policy near effects of covid19, employment and inflation buried in the heightened risk to the output. We expect to maintain Interest Rates at this level until we are confident that the economy has weathered recent events and is on track to achieve maximum stability goals. Weve also been taking forceful support the flow of credit in the economy. Since march we have been focusing sizable quantities of treasury securities. In orderor to support the smooth functioning ofts these markets. They areal to the flow of economy. As described in the military posse, these purchases have helped restore orderly Market Conditions in aitr more financial accommodations. As market functions has improved since the they experience in march about the reduced the purchases. This estate is smooth markefunction is there by foster theon effect of the transmission of Monetary Policy. We would increase our treasury securities that agency over coming months and at least at the current pace. Will closely monitor development and are prepared to adjust our plans as appropriate. To provide stability to the Financial System and is for flow of credit to household businesses and state and local governments. W secretary of the treasury established 11 Credit Facilities under 133. The report provides details on these stabilizing short and funding markets and providing more direct credit across the economy. Jim stabilized shortterm funding markets the fed set up the funding facility and the money market liquidity facility to help out close fund markets. Fed also established the pri deal of Credit Facility which provides loan and collateral to primary dealers that are critical in the immediate race shortime shortterm findings pretty directly support the credit to the households. They established a number of facilities to support the Small Business sector thatup we establish the Patient Protection program. The owner to bolster the effectiveness of the cares act. Program is launched this week to both small them inside businesses. Keloan facility support funding to both businesses and consumers. To support employment and spending weablish to corporate Credit Facilities help u. S. State and local governments ourommunities we set these up. The tools that were using under section 133 are appropriately reserved for times of emergency. This crisis is behind us, we will put them away. The agenda for w many of these facilities have been supported by funds from the cares act. We will be disclosing our monthly basis names and details of each facility. Revenues. Embrace our responsibility to the market people. And be as transparent as possible. We appreciate the need for heightened when we are called use our emers actions were only broader link sector response. Ngress passage of the cares act is critical enabling the Treasury Department to establish many of the lending programs. The cares act and other legislation provide direct help to the people and businesses. Mr. Export support can make critical differences not just with families and busin time of need but also limiting the longlasting damage to our ec acknowledging the tragic events that a spotlight on the Racial Injustice in this country. The feds and serve the entire nation pretty we operated in part of the communities across the country were americans are grappling. With issues of racial equality. I speak for this note place for racism. Everyone deserves the opportunity to participate fully in our in our econ understand there work throughout these communities families and businesses across the nation everything that we do is inservice or Public Mission pretty were c last week the fed announced posi