We saw a push higher in the session when the governor of the bank of england toned down the speeches we have seen as of late when it comes to negative rates. We will see whether ultimately he has to deliver on negative rates. Apparently the mood music has improved on that for today. Politics when it comes to the btp markets, today we have seen a significant pushback for the Prime Minister against mr. Salvini in local elections. The market has taken that positively. Alix just to pipit off what i said earlier. The eu Leaders Summit is postponed as the eu councile president was quarantined. You had a Security Guard test positive. That Leaders Summit will be postponed. Movement in the market, the dollar jumping higher. Charlie evans says the fed could raise rates before inflation gets to its 2 target. Interesting to see we get that reaction before we get fed chair powell. You are all seeing Maxine Waters speak right there. Lets break down what to expect. Emily wilkins joins us now. Will the passing of ruth bader ginsburg, as well as the fight for the Supreme Court play into these to conversations today. Emily the senate has really been taken over by filling this new Supreme Court vacancy. It is something they want to have done before november 3, that is something we heard from the white house. Types ofhese nominations take about 70 days. This senate will have to buckle down to get this done. We expect it to be extremely contentious. A lot of democrats feel they were cheated out of not having mayor garland sat because Mitch Mcconnell said we need to leave it to voters tenmonth before an election and now they are saying this is in fair, republicans are saying they control the senate and president , why wouldnt they get this nominee through. Is the treasury secretary now a lameduck treasury secretary . Taking the Supreme Court precedent over stimulus it seems of than the republican party. We have an election coming up. It is by no means guaranteed they will win that. What more can the treasury secretary do at this point if his hands are tied around the politics of the Supreme Court . Emily there is the ability to continue negotiations, continue talking to mcconnell and pelosi. Speaker pelosi has gotten a bit of blowback about not doing more for negotiations. You have some members facing very difficult races and they are going back to constituents who have been really harmed by the current economy and saying we are sorry we dont have anything additional for you. Ist is something pelosi feeling pressure on. It is safe to say for the senate that all eyes are on the Supreme Court and the coronavirus stimulus is not something in the forefront of a lot of minds. Are we at risk . Of a Government Shutdown where are are we at risk of a Government Shutdown . Emily we did see a potential spending package to continue funding the government come out. There was disagreement over some agricultural funding that republicans wanted to see in there. That was not included. The house is supposed to vote on that package. We are hearing from house leadership it could be delayed. Neither party wants a shutdown. No one wants this in an election year. Both will be working hard to make sure we get something by september 30. October 1 is the deadline. Much, emilyou very wilkins. E. U. And day has started on capitol hill. The treasury secretary is speaking. Treasury debts would treasury object to removing the minimum loan threshold so that Small Businesses and minority owned businesses could access the program . I am appreciative because when we started out, when they first rolled out with the main street program, the minimum requirement for the loan was 1 million. And you did reduce that to 250,000. I am asking can you go further in the reductions so the loans can be made to smaller businesses . I would be fine lowering that to 100,000 dollars and will consult with chair powell afterwards on lowering it. Chair powell . There is very little demand in the facility below 1 million. There is not much interest at all below 1 million. It would have to be a different kind of facility. I think extending credit in those small quantities would require a facility built from the ground that would be different from main street. It would not have the same requirements, but we can talk about that. It would not look like the current main street facility. It is a different kind of thing. I am aware of how the main street facility was formulated for the midsize businesses and i am aware that they have to repay those loans. But we have so many Small Businesses still eligible for and certainly they would repay those small loans that they could get. It is not that they are absolutely looking to have those loans waived. Do you think something can be done . Chair. Powell it is possible. I think it is more appropriate for ppp loans which are in the nature of grants. I think thats a better way to approach a approach these. Trying to underwrite the credit of the hundreds of thousands of very Small Businesses would be difficult and i think ppp is a better way to approach that space in the market and i think you will are well advised to use that. I now recognize the Ranking Member for five minutes for questions. Thank you madam chair. , in the Federal Reserves data, we see there is substantial economic recovery. We see economic numbers and we have many households that are about the same as they were, a little better off in terms of savings back at the beginning of the year. But we have seen many households much worse off. So it is sort of a tale of two different recoveries if you will, or two different experiences of this pandemic. So while we see good economic , what are the areas that you see as needing further assistance . What areas of our economy do you see as needing further assistance to get us back to something more normalized given where we are with covid . Chair. Powell i guess i would point to the labor market to capture the size of the issue. We still have 11 Million People out of the 22 million who were laid off in the payroll numbers in march and april, still 11 million out there. That is good progress, we have put half of those back to work, but that is a long way to go. Thats more people who look the lost their jobs during the Global Financial crisis. Our policies will support that it will go faster for those people if we have all of the government working together. Totheres a fiscal response help support the economy for ,hose most affected by covid economically affected by covid. Chair. Powell the details of that are between congress and the administration, and not for the fed to say. I think the recovery will go faster if we have both continuing to Work Together as they have so far. There is much that has been negotiations on another cares package like we passed in march. You are the lead administrative negotiator on that package, which i think from all sources it was a very solid piece of bipartisan legislating and i want to commend you for being the administrations voice and negotiator on that project. I think we have good results from the programs you were able to set up in coordination with the fed. , what are thenes components for the next package that we need to take to support the economy to get things back going again . Sec. Mnuchin i think the next package should be much more targeted. It should be focused on kids and jobs and areas of the economy that are still hardhit. Particularly areas such as the travel business and others, restaurants. I think there is broad bipartisan support for extending ppp to businesses that have had revenue drops. I think Small Businesses are the large priority. So focused on Small Business and family support. So that would be a strong foundation. Me ask you both this. Treatment, therapeutics, massive scale testing. We are getting up to speed with some really first rate testing across the country. And getting kids back in school in a safe way. Those things are sort of foundations for us getting the economy going to the next degree. It is not going to all be fiscal or Monetary Policy that gets people back in restaurants again. Its not government regulation, it will be peoples decisions on whether or not to engage. Similar to getting on airplanes. Along those lines, do you see the capacity for us to get to a full economic recovery . Sec. Mnuchin i think it is just a question of time. I would highlight, we are extremely pleased, we have committed to 150 million points of care tests that will be delivered between now and the end of the year and we are working to deliver comparable amounts with instant results. Rep. Mchenry instant results and those are very low cost tests. Sec. Mnuchin that is correct. Rep. Mchenry thank you for your testimony and being here today. Thank you for your leadership in the midst of this. In the economic effects of covid and i want to thank you all for being there both with a Life Insurance policy and with the water to put out the flames. Thank you both. Recognize mr. Heinz of connecticut. Rep. Heinz my time in washington is bracketed by bailouts. Right before i got here we passed the tarp and a bailout of the auto industry. And now we are bailing out the airlines and businesses large and small. The government is in the business of bailouts. I would point out to my friends on the republican side that all of those were promoted and passed and promulgated by republican president s. Mnuchin, i had the opportunity to talk to chairman powell about this. I like to believe that we could do fewer rather than more. I dont like the idea of Business Managers large and small thinking every five or seven years, the government will bail them out of liquidity crises, i also like the idea as long as we are going to do these things, that the American Public be compensated for the use of their funds for private and commercial purposes. Dmire your efforts to get make sure the American Public is compensated. There is a funny hostage situation the develops. When i propose that on a caucus call i got calls saying if you make the money cost anything, they wont take it and they will fire us. It feels like a hostage situation. Give me the money for free or we will not take it and fire people. I would love to give you as much of the rest of my time. What do we need to do structurally to get out of the business of bailouts and number two, how can we get out of this hostage situation in which i think you actually worked very hard, where the american being compensated fairly for the use of their money for private purposes . I would say its a very different situation from the financial crisis. In this case, the businesses that were impacted were impacted because of covid, which was not their fault, as opposed to issues they controlled. I would say in the case of the airlines, i think we struck the right balance. I think we got proper compensation for taxpayers. It was very important, given what went on in the travel industry in the case of the National Security loan we made to the trucking company, we took a 30 equity interest in that so iroper compensation agree with you to the government should be properly compensated. I think for very Small Businesses like the ppp, the money we spent there, we saved significant money and unemployment on the others. Rep. Himes with respect to the 30 equity stake, what is your philosophy . Is your philosophy to dispose of that as soon as you can do so safely in a sound manner or is it to maximize the return to the American Public . Sec. Mnuchin i dont think it is to absolutely maximize the return, but i think the American Public should reap the benefit. My expectation is that is not something we would liquidate now , we would liquidate when the markets are more normalized and the economy is back to normal. Rep. Himes let me run an offbeat idea. I had the opportunity to talk to secretary paulson and another formers treasury secretary about it. One of the vehicles for capturing commonwealth for the citizens of the country is the Sovereign Wealth Fund. It,ka uses it, norway uses largely oil driven wealth. Should congress investigate, if we are going to be in the regular business of bailouts, should we look at establishing his Sovereign Wealth Fund in order to take the proceeds from that commonwealth and use it as an Insurance Fund or to disperse however we may choose to disperse . Is that an idea that makes sense to you . Sec. Mnuchin let me just say that most countries that have Sovereign Wealth Funds, it is typically for future generations where they are focused on, in the case of many places, energy and things like that that will not necessarily be around forever. I do not necessarily think the u. S. Should have a Sovereign Wealth Fund. On the other hand, i think taking the profits and putting them into an account that is reserved for a future emergencies is a very interesting idea i would explore with you. Rep. Himes i dont think any of us want to be in the persistent business of bailouts, but if we are going to do it, we should make sure the American Public is amply compensated. I yield back the balance of my time. I recognize the gentlelady from missouri, ms. Wagoner. Rep. Wagner thank you for being here today. I have been hearing from employers across the Second District of missouri who desperately need congress to do its job and passed Coronavirus Relief legislation so they can do their job and keep handing out paychex to their hardworking employees. Earlier this month, the senate acted to pass relief legislation that could actually be signed into law. That package would have given relief to families, schools, childcare providers, Small Businesses and those who needed most at a time when so many are struggling, we really need to put americas Families First and i am sick of the partisan politicking, the wish lists which have no place in this conversation. Congress should be laser focused on providing targeted and immediate relief. The Senate Majority supports a second round of ppp money that would keep our Small Businesses afloat. I call on my colleagues in the house to bring this to the floor. Grateful mnuchin, i am for your work in negotiating this. And what it means for the Small Businesses including restaurants, travel, a Dentist Office and so many others that keep americans employed. You talked a little bit about how passing the second round of the Paycheck Protection Program would keep america on track for a full economic recovery. How much could we repurpose from cares in order to do this and tell us again what this would mean in terms of economic recovery . Sec. Mnuchin we had approximately 450 billion dollars allocated to work with facilities. He i agreed i would reallocate 200 billion of it that is not used that needs congressional support. We would reallocate that and our priorities are kids and jobs. I think ppp, there is a strong bipartisan support. I know both committees in the house and senate have worked on revisions that are necessary revisions and we look forward to working with both parties. Could beer and that passed today and signed into law today, is that correct . Sec. Mnuchin the president would very much support signing into law ppp money immediately. Rep. Wagner it is clear that the best economic stimulus package we can give to the American People is a fully open economy. It brings people back to work, allows Economic Growth to begin and will restore our economy. Chairman powell, do you agree that reopening has increased Economic Activity and jumpstarted the process of bringing the u. S. Backed to prepandemic prosperity . Chair. Powell yes i do. We need to reopen the economy to get people back to work and we need to do it in a sustainable way. I always mentioned that a part of reopening quickly and effectively is to keep the virus under control and that takes basic measures like Wearing Masks and things like that. The two things go together. A fast reopening and maintaining these measures. Rep. Wagner absolutely. The president s plan to reopen america has enabled states to tailor their reopening plans to address the specific challenges in their state and region. Chairman powell, how does this statebystate approach ensure success, especially when it comes to states that are responding differently to the pandemic and are there any regulatory burdens you are aware of that should be removed to improve states ability to quickly and safely reopen . Ofir. Powell the question how to reopen exactly and what policies to use, that is a question that is one for elected officials at the state and local level, not for the Federal Reserve. I would not be a good judge of that. In terms of regulatory adjustments, we have made a number that have been designed to allow banks to serve their customers in we have relaxed a number of regulations temporarily and we think that has help them serve their customers in a way that does not endanger sa