Board of governors of the Federal Reserve system. We will receive testimony from the secretary of the treasury and the chairman of the Federal Reserve as required under title four of the cares act. Congress has appropriated 3 trillion to protect and support americans to fight the pandemic and also to stabilize the infrastructure of our economic system. Fundingportion of this is authorized under title iv of the cares act which provides resources to loans, guarantees, and other investments from treasury and the Federal Reserve 13. 3 emergency Lending Facility and support of eligible businesses, municipalities, and tribes. Title iv of the cares act anvided 454 billion as infusion into the Exchange Stabilization fund to support the Federal Reserves emergency lending facilities that facilitate liquidity in the marketplace and support eligible businesses, states, governments, and tribes. This unique authority known as 13 three authority is authorized under section 13 of the Federal Reserve act and plays a Critical Role in stabilizing markets. Both prior to and after the enactment of the cares act the Federal Reserve announced the establishment of or its intent to establish several emergency lending facilities to support Financial Markets and businesses including some that are supported and funded by the cares act. Thisweek other members of committee and i had a robust discussion with the vice chairman on these facilities and stressed the importance of getting facilities like the main Street Lending programs and the Municipal Liquidity facility up and running quickly to provide a lifeline to struggling businesses, states, and local governments. I stress the apartments of setting these up quickly and allowing broad access importance. There is also a discussion about whether it is acceptable for the treasury to take any losses on investments put into special purpose vehicles that the fed will lend to various programs. Are a three facilities critical component of a strong economic recovery which reinforces the need to have them quickly operational, broadly available, and as flexible as possible. Title iv contains a robust oversight provision, especially the one that brought us here today. Section 402. 6. It is critical that each federal agency follow all requirements in the cares act. Other steps are already being taken to ensure appropriate oversight. Last week this committee voted to special Inspector General for Pandemic Recovery favorably. Yesterday the Oversight Committee published its initial report on oversight of title iv. The cares act is the biggest rescue package in the history of congress and we need to make sure the dollars quickly find their mark. During this hearing i look forward to hearing more on an update of the status of the treasury loan programs, 13 three emergency facilities and the Paycheck Protection Program. Steps the fed and treasury have taken to provide a transparency into the loans and loan guarantees under the cares act and how they use funds and how they will be prioritized to provide liquidity to the economy. While not part of title iv of the cares act, sba and treasury worked aroundtheclock to ramp up the Paycheck Protection Program and has approved over 4. 3 million loans to Small Businesses that amount to about 513 billion. According to the sba the loan hundred the ppp is 18,000. During the second round of funding the average loan size has been around 70,000. On april 28 the treasurer announced that it would review all loans in excess of 2 million to make sure that the certification for the loans was appropriate. Last week sba eight treasury provided a safe harbor for loans under 2 million. On may 8, 2020 Congress Committee chair sent a letter to secretary mnuchin requesting a detail report on the status of the program on on may 12 treasury announced a new transparency measure with regard to the psp. I encourage you to continue your work and update information as additional funds are disbursed. I commend each of you and your staff for hard work and if ordinary actions you have taken to stabilize the economy and provide support to americans during this time. Thank you for joining us today to share your agencys activities in response to covid19. Senator brown. Thank you, chairman. I want to thank these four following the best advice. I will welcome secretary mnuchin and chairman powell to the Senate Banking and housing committee. Thank you for joining us. I am still outraged by leader mcconnells decision to keep the senate in session putting capitol hill workers including Capitol Police officers, custodial staff, floor staff, cafeteria workers, putting all workers at risk. Leader mcconnell has forced workers to go against Public Health authorities advice for three weeks now. He still has no plan to get additional help for families in communities. The house passed a bill that incorporates many plants. The American People arriving to the challenge, their leaders are failing them. Leader mcconnell says he sees no urgency. Those are his words, no urgency. I would like to recognize all of the workers who have lost their lives on the job during this pandemic. Coronavirus has been the great revealer. It has brought out the best in our communities. We remember the solidarity that created our social safety net during the new deal that inspired world war ii Victory Gardens and empower the civil rights movement. That solidarity reveals itself in fire escape applause for hospital workers and videoconference play dates as millions of americans pull together to do their part to flatten the curve. This pandemic also lays bare how corporations that now claim their workers are essential have for too long treated them as more of a cost to be minimalized. Many of us have been concerned about how our country rewards wall street and ignores the people who make our country work. Whenever we are asked why wages for these essential workers are stagnant, we are told we cannot afford it. Companies would have to raise rises if they pay people more. Never mind that ceos were getting huge raises. Vermont that low prices do not do good if wages stay low never mind. Our economy has been paying the price with a shrinking middle class, rising inequality and lower economic growth. Now it is clear when millions of americans and workers are laid off or have hours cut or making low wages to begin with are now worried about their future, our economy grinds to a halt. The only thing keeping our society running in the middle of this crisis is american workers. Those who stock the shelves and deliver packages and fill prescriptions and prepare food and care for loved ones. A Grocery Store worker in ohio told me, i dont feel safe at work and they dont pay me much. I do not feel essential. I feel expendable. We are asking people to show up for work and risk their health and family safety. Perhaps we are finally realizing the words of dr. King ringing true that one day our society will come to respect the sanitation worker or the person who picks up the garbage. If he does not do his job, disease is rampant. All labor has dignity. Yes, all labor has dignity. You might think at a time when we are demanding more from essential workers than ever before that people who punch a clock or swipe a batch, people who take care of our families, mostly women, often lack and round workers, you might think they will all be getting a huge raise. Our economy is supposed to reward people whose talents are in high demand. That is what we are taught. But that is not happening. Workers are getting left behind again. As essential workers go home to their families, after a long stressful day, they are wondering how they will pay their rent, afford another week of groceries, and how they wil might infect their families. Those are the ones working. How about the americans that have been laid off because of this crisis . When we passed the cares act we try to address this. We try to make sure that the money would not just go to wall street like it usually does. We wanted to make sure the fed and treasury. This money directly into workers pockets. We did not want it to see it to go to gas and oil companies. Those activities pose an existential threat to essential workers in our economy. Chairman powell i appreciate your comments about how Congress Needs to do more to put money directly to workers. If congress does not act to put money in the hands of people who actually power the economy and anders and their families mainstream businesses and struggling communities, we risk making the crisis worse. Leader mcconnell needs to let the senate take up the house bill immediately. They that negotiate and argue with us, do something. Congress has an important responsibility to make sure that the money we have already approved for the fed and treasury is actually getting to workers. And from what we know so far, it does not appear that this administration or the Federal Reserve are making workers their priority. Today i look forward to looking hearing from both of you. Not only about what you are doing for big banks or corporations, we already know that and how you expect the money to trickle down, but how you are making sure the money and Authority Congress gave you actually helps the people who make this country work. I want to hear how it will be different this time and i want you to explain what you will do to transform our economy so that it works for everyone, not just the wealthy and the powerful. I want to hear about your plans to make our economy work for essential workers now and in the future and how to safely get those who have lost their jobs back to work. Thank you, chairman. Thank you, senator brown. We will now move to testimony. Secretary mnuchin and senator powell, your statements will be part of the record. We will go to your oral testimony and we will start with you, secretary mnuchin. Thank you, members of the committee. Thank you for this opportunity to highlight how the treasury and Federal Reserve are working together to provide liquidity to the financial system. Our programs support the flow of credit to american workers, families, business, states, and municipalities. I am testifying on camera at the request of the committee. I look forward to testifying in person Going Forward in a safe way with proper social distancing according to medical guidelines. I want to begin by acknowledging the unprecedented challenges the American People are experiencing due to the covid19 pandemic. This disease is impacting families and communities across the nation. Through no fault of their own, the American People are also enduring economic challenges. sam inspired by our nation medical professionals and First Responders on the front lines taking care of our fellow citizens. Thank to their efforts and commitment to their communities, i am confident that our nation will emerge from this pandemic stronger than ever before. President trump and the entire administration are provided to committing necessary relief to help people get through this time. The treasury is working hard to implement the cares act. We appreciate Congress Working with us to enact the statue which is the single largest Economic Relief effort in the history of our country. We also appreciate the feedback we have received from members of congress on both sides of the aisle as we implement a number of the critical programs established by the cares act. We have worked closely with the Small Business administration on the Paycheck Protection Program to ensure processing of over 4 million loans for over 500 billion to keep tens of millions of hardworking americans on the payroll. Developmentommunity Financial Institutions and minority depository institutions and many small banks are participating in this program. We have issued more than hundred and 40 million Economic Impact billion tor over 240 provide direct relief to millions of americans. The typical family of four received approximately 3400. Billion toted 150 states, local and tribal governments through the Coronavirus Relief fund for essential services. Nearly 25o approved billion in payroll support to the Airline Industry to protect this sector of our economy. Turning to the central focus of the hearing, the cares act also provided authority to 454 billion in support for the Federal Reserve lending facilities to provide liquidity to the system. Since march 17 i have approved the following, the commercial paper funding facility, the primary dealer credit facility, the money market the liquidity facility, the assetbacked securities loan facility, the primary market Corporate Credit facility, the secondary market Corporate Credit facility, the main street in this business lending program, the municipally facility and the ppe Lending Facility. 200 billiontted in credit support under the cares act. We have the remaining money to create or expand these programs as needed and we continue to monitor a variety of economic sectors closely and we are prepared to support these programs with the Federal Reserve as we need to move forward. We are sympathetic to hardworking americans and businesses during and during tremendous challenges due to covid19. We have taken unprecedented steps to shut down our economy in the interest of Public Health. As a result in the Second Quarter of this year we are continuing to see large unemployment and other negative indicators. It is important to realize that the large number represents real people. Thats why it is important to begin bringing people back to work in a safe way. As we listen to medical experts, we are optimistic about the progress being made on vaccines, antiviral earpiece, and testing. Therapies. We will begin to open the economy in a way that minimizes risk to customers. We expect conditions to improve in the third and Fourth Quarter and into next year. I will conclude by thanking the hardworking people at the treasury, the Federal Reserve, and throughout the administration. Under the leadership of president trump, i am proud to have worked with all of you on a bipartisan basis to get relief into the hands of hardworking americans and businesses as quickly as possible. Though these are unprecedented and difficult times, these programs are making a major positive impact on peoples lives. Together we will destroyed covid19 virus and our country will emerge from this stronger than ever. Thank you for the opportunity to discuss these efforts today and i look forward to questions. Thank you, secretary mnuchin. Chairman powell. Ranking member brown and other members of the committee, thank you for the opportunity to testify today at the first quarterly hearing on the cares act. This is a worldwide Public Health crisis in healthcare workers have been the First Responders. They are showing courage and determination and earning our lasting gratitude. So have the legions of other workers who put themselves at risk every day on our behalf. As a nation we have temporarily withdrawn from many Economic Activity to slowly spread of the virus. Some sectors of the economy have been effectively closed since mid march. People have put their lives and livelihoods on hold making enormous sacrifices to protect not just their own health and their loved ones, but also there neighbors and the broader community. While we are all effective, the burden falls heavily on those least able to bear it. Anrifices represent investment in our collective health. As policymakers we should do what we can to help cushion the blow. The scope and speed of the downturn are without modern president , worse than any recession since world war ii. We have seen a decline in Economic Activity and employment and the job gains for the last decade have reversed. Millions have lost their jobs and recent Research Shows that people earning less are the ones being hardest hit. This reversal of economic fortune has caused a level of pain that is hard to capture in words as lies are appended amid uncertainty about the future. Those committed to use a full range of tools to support the economy in this challenging time. Our actions fall under four categories. First, purchases of treasuries and agency mortgagebacked security to establish function in these markets. Second, the liquidity and funding measures including discount window measures, swap lines with the central banks, and several treasury back facilities to support smooth money market function. With additional treasury backing, facilities to more directly support the flow of credit to households, businesses, and state and local governments. Regulatoryporary adjustments to allow banks to expand their Balance She