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BE A FASCINATING HEARING TO WATCH YOU WILL HAVE TWO PEOPLE TESTIFYING WHO PLAYED CRITICAL ECONOMIC ROLES IN THIS COUNTRY AND WHO HAVE DIFFERENT VIEWS ABOUT WHICH STEPS CONGRESS SHOULD TAKE NEXT TO HELP MITIGATE THE PAIN, THE ECONOMIC PAIN IN THIS COUNTRY DUE TO CORONAVIRUS CLOSURES TREASURY SECRETARY STEVEN MNUCHIN WALKING HAND-IN-HAND WITH THE PRESIDENT HERE WILL TALK ABOUT HOW WELL THE TREASURY DEPARTMENT HAS DONE AT DISPERSING ALL OF THE LOANS THAT THEY HAVE HAD THE FUNDS TO DO SO FAR HE WILL SAY THAT THEY HAVE PROCESSED MORE THAN 4.2 MILLION LOANS FOR MORE THAN $530 BILLION TO KEEP PEOPLE IN THEIR JOBS AS YOU POINTED OUT, TRYING TO, HE WILL BE ASKED WHY THIS OTHER $500 BILLION FUND FOR LARGE BUSINESSES THAT HAVE BEEN PARTICULARLY IMPACTED BY THIS CRISIS LIKE AIRLINES, WHY THAT MONEY HAS BEEN SO SLOW TO GO OUT THE DOOR THEN YOU WILL HAVE THE FED CHAIR, JEROME POWELL, WHO HAS REALLY GONE IN A DIFFERENT DIRECTION THAN THE PRESIDENT HERE. HE HAS BEEN SAYING THAT CONGRESS NEEDS TO ACT RIGHT AWAY TO PASS ANOTHER HUGE STIMULUS PACKAGE IF IT WANTS TO SAVE THE ECONOMY THE PRESIDENT HAS KIND OF BEEN MORE CAUTIOUS ON THAT FRONT, ALONG WITH MOST SENATE REPUBLICANS WILL BE IN THIS COMMITTEE TODAY THEY ARE SAYING LET’S WAIT AND SEE, IT’S FIGURE OUT WHAT THE NEEDS ARE WE DON’T WANT TO ADD TO THE THAT IF WE DON’T HAVE TO WHAT JEROME POWELL HAS BEEN ARGUING AND HAS FRUSTRATED THE PRESIDENT, HE HAS BEEN ARGUING THAT IF CONGRESS DOES NOT ACT, THE PAIN CAUSED BY ADDITIONAL DEBT IS REALLY GOING TO PALE IN COMPARISON TO THE LONG-TERM PAIN CAUSED BY THE DESTRUCTION OF THE ECONOMY IT IS REALLY GOING TO BE INTERESTING TO WATCH THE BACK- AND-FORTH YEAR AS DEMOCRATS PUSH FOR A HUGE STIMULUS PACKAGE AND REPUBLICANS PUMP THE BRAKES >> IN FACT, CHAIRMAN POWELL DID A RARE INTERVIEW WITH SCOTT PELLEY FOR 60 MINUTES SCOTT ASKED HIM ABOUT THE FUTURE OF THE ECONOMY ITS PLACE, THAT >> Reporter: CAN THEIR BULLY — CAN THERE BE A RECOVERY WITHOUT A VACCINE? >> I THINK YOU WILL SEE THE ECONOMY RECOVER STEADILY THROUGH THE SECOND HALF OF THIS YEAR FOR THE ECONOMY TO FULLY RECOVER, PEOPLE WILL HAVE TO BE FULLY CONFIDENT THAT MAY HAVE TO AWAIT THE ARRIVAL OF A VACCINE >> CAN WE EXPECT SENATORS TO GRILL THESE TWO MEN ON THAT VERY ISSUE, THAT THE ECONOMY WORKS HAND-IN-HAND, THE HEALTH AND THE ECONOMY WORKS HAND-IN- HAND WITH THE HEALTH OF THE PEOPLE WHO MAKE UP THE ECONOMY, THE INDIVIDUALS WORKING AND THE NEED FOR A VACCINE? >> Reporter: ABSOLUTELY TAKE A LOOK AT THE MICROCOSM OF THE CONCERN ABOUT REOPENING WITHOUT A VACCINE LOOK AT SCHOOLS AROUND THE COUNTRY AND THE DEBATES THAT ARE TAKING PLACE OVER WHETHER IT IS SAFE TO REOPEN SCHOOLS IN THE FALL, BRING CHILDREN BACK IN IF, AS WE ANTICIPATE, THERE IS STILL NO VACCINE WHAT DO YOU DO INSTEAD TO MAKE THOSE CHILDREN, THOSE PARENTS FEEL SAFE? THAT IS THE DEBATE THAT IS GOING ON ALL ACROSS THE ECONOMY I DON’T THINK YOU WILL GET ANY DISAGREEMENT FROM THE TWO ON THAT FRONT, THE PEOPLE ARE GOING TO BE NERVOUS, THAT THE ECONOMY IS NOT GOING TO BE BACK UP TO FULL SPEED BY THE FALL, THOUGH THEY ARE GOING TO ARGUE THAT THEY WILL START TO SEE SOME RECOVERY IN THE THIRD AND FOURTH QUARTERS OF THIS YEAR DOES THAT MEAN THAT WE WILL BE BACK WHERE WE STARTED? NO IN FACT, THERE ARE SOME PREDICTIONS THAT IN NEW YORK, FOR EXAMPLE, IT WILL TAKE FOUR YEARS TO GET BACK TO THE LEVEL OF EMPLOYMENT THAT THEY HAD BEFORE THE LOCKDOWNS STARTED THIS IS A LONG-TERM PROBLEM WHAT YOU ARE GOING TO SEE TODAY ARE SENATORS FROM TWO DIFFERENT SIDES WITH VERY DIFFERENT VIEWS ON HOW TO TACKLE THAT LONG-TERM PROBLEM AND PUSHING THESE TWO LEADERS, REALLY FOR THE FIRST TIME, KIND OF TRYING TO SEE IF THERE IS A WEDGE THEY ARE BETWEEN THEM AND THE PRESIDENT AND REPUBLICANS YOU HAVE SEEN WHAT HAPPENS WHEN THE PRESIDENT AND SOME OF HIS ADVISORS AND UP ON THE OPPOSITE SIDES OF AN ISSUE IT IS NOT FUN FOR THE ADVISOR OR THE TOP OFFICIAL WE WILL SEE HOW THEY TRY TO CIRCLE THAT SQUARE WHEN IT COMES UP TO AREAS OF DIVERGENCE WITH THIS PRESIDENT >> I HAVE TO ASK YOU ABOUT CONGRESSIONAL REACTION TO PRESIDENT TRUMP’S CLAIMS THAT HE HAS BEEN TAKING HYDROXYCHLOROQUINE NANCY PELOSI WAS ASKED ABOUT THIS LAST NIGHT DURING AN INTERVIEW LET’S HEAR SOME OF HER RESPONSE >> AS FAR AS THE PRESIDENT IS

CONCERNED, HE IS OUR PRESIDENT I WOULD RATHER HE NOT BE TAKING SOMETHING THAT HAS NOT BEEN APPROVED BY THE SCIENTISTS, ESPECIALLY IN HIS AGE GROUP AND HIS, SHALL WE SAY, WAIT GROUP, BEING MORBIDLY OBESE I THINK THAT IS NOT A GOOD IDEA >> SO THAT IS THE HOUSE BEAKER — SPEAKER >> Reporter: THAT SEEMED DESIGNED TO GET UNDER THE SKIN OF THE PRESIDENT EVERYONE IS WAITING TO SEE IF HE REACTS THEY GOT WASHINGTON TALKING ABOUT IT MORE BROADLY, SETTING THE MORBIDLY OBESE PART OF HER COMMENT ASIDE, THERE ARE CONCERNS HERE ON CAPITOL HILL — AND WE HAVE HEARD THEM VOICED BY SEVERAL LAWMAKERS NOW — THAT THE PRESIDENT IS BASICALLY TOUTING A DRUG THAT HAS NOT BEEN SHOWN TO BE VERY EFFECTIVE IN THE TREATMENT OF CORONAVIRUS AND HAS BEEN SHOWN TO BE HARMFUL WHEN TAKEN NOT UNDER THE WATCHFUL EYE OF A PHYSICIAN FOR SEVERE COVID-19 MOREOVER, IT DOES NOT PREVENT YOU FROM GETTING CORONAVIRUS THEY ARE WORRIED THAT IT SENDS THE WRONG MESSAGE TO AMERICANS AROUND THE COUNTRY ABOUT WHAT THEY SHOULD BE DOING TO STAY HEALTHY AND SAFE BEYOND THAT, THERE WAS A GREAT DEAL OF CONFUSION ABOUT THIS LETTER AROUND THE TIME THAT SPEAKER PELOSI WAS SPEAKING THE PRESIDENT’S DOCTOR RELEASED A LETTER WITH A LOT OF WORDS IN IT, BUT NO REAL CLARITY ON WHETHER HE HAD ACTUALLY AGREED TO LET THE PRESIDENT TAKE HYDROXYCHLOROQUINE AND WHETHER THE PRESENT PRESIDENT IS TAKING A NOW IT TOOK SEVERAL MORE CALLS TO THE WHITE HOUSE TO STRAIGHTEN OUT THAT THE PRESIDENT IS INDEED TAKING HYDROXYCHLOROQUINE , SOMETHING THAT MEDICAL OFFICIALS, EVEN SOME OF HIS OWN TOP MEDICAL ADVISORS HAVE BEEN VERY WARY ABOUT ADVISINGTO THE REST OF THE COUNTRY >> ALL RIGHT THANK YOU SO MUCH.’S >>> WE WANT TO BRING IN CBSN POLITICAL CONTRIBUTOR MOLLY HUBER TO TALK ABOUT THIS UPCOMING HEARING LISTEN, WE SAID AT THE TOP OF THE HALF HOUR THAT THERE IS A SIGNIFICANT AMOUNT OF THE MONEY THAT HAD BEEN SET ASIDE THAT STILL HAS NOT BEEN DISTRIBUTED YET TO ASSIST BUSINESSES AS THEY GET OVER THIS HUMP. THE EXPECTATION IS THAT STEVE MNUCHIN AND JEROME POWELL WILL BE ASKED ABOUT THIS I AM WONDERING, WILL REPUBLICANS AND DEMOCRATS LEAN DIFFERENTLY WHEN THEY ASK THOSE QUESTIONS? >> Reporter: I THINK SOME REPUBLICANS WILL LEAN DIFFERENTLY THAN DEMOCRATS THERE ARE A NUMBER OF REPUBLICANS ON THIS COMMITTEE THAT ARE REALLY CONCERNED ABOUT THE WAY THE MONEY HAS NOT BEEN SPENT ONE ITEM THAT I AM PRETTY SURE ELIZABETH WARREN WILL PUSH ON IS THIS MAIN STREET LENDING FACILITIES PROGRAM I HAVE ALL THE ACRONYMS AROUND HERE SOMEWHERE THIS PROGRAM WOULD CREATE LOANS AND GIVE LOANS FROM THE FEDERAL RESERVE TO SMALLER COMPANIES, BETWEEN 100 TO 10,000 EMPLOYEES IN SIZE OVER THE PAST MONTH, THE FED AND THE TREASURY DEPARTMENT SPECIFICALLY DECIDED TO INCREASE THAT NUMBER TO ALLOW COMPANIES WITH AS MANY AS 15,000 EMPLOYEES TO QUALIFY FOR THESE LOANS, WHICH SORT OF, WHICH IS A WAY OF ALLOWING — AND THIS IS A CRITIQUE FROM DEMOCRATS — ENERGY COMPANIES AND OIL COMPANIES TO QUALIFY FOR THESE LOANS THAT WILL BE AN ISSUE I AM SURE ELIZABETH WARREN WILL BRING UP REPUBLICANS IN GENERAL ON THIS MAIN STREET LENDING INITIATIVE GEARED AT GETTING LOANS TO SMALL, SMALL BUSINESSES THAT ARE NOT ABLE TO OPERATE RIGHT NOW, THAT MONEY HAS NOT BEEN REALLY DOLED OUT IN A MANNER THAT REPUBLICANS AND DEMOCRATS HAVE ANTICIPATED WHEN THEY PASSED THE CARES ACT BACK ON MARCH 27 I LOOKED AT SECRETARY MNUCHIN’S PREPARED TESTIMONY AND I WAS ADDING UP LONGHAND THE AMOUNT OF MONEY THAT HAS BEEN SPENT OUT OF THIS MORE THAN $2 TRILLION MEASURE INITIALLY ONLY ABOUT $1 TRILLION HAS BEEN SENT OUT THE WHOLE IDEA OF THE CARES ACT WAS TO REALLY THEY LOSE THE MARKET WITH MONEY FOR INDIVIDUALS AND FOR COMPANIES THAT ARE NOT ABLE TO WORK AS WELL BECAUSE THEY HAVE BEEN SHUT DOWN AS WELL THAT HAS NOT MOVED FAST ENOUGH >> YESTERDAY I DID AN INTERVIEW WITH A SMALL BUSINESS OWNER, A CHEF IN NEW YORK CITY HE TOLD ME THAT HE DID RECEIVE

SOME FUNDS FROM THE FEDERAL GOVERNMENT BUT HE HAS NOT USED THEM YET BECAUSE HE SAID THERE HAVE BEEN NO GUIDELINES THAT HAVE BEEN ISSUED TO HIM HE KNOWS THAT THERE ARE SOME THINGS HE CAN USE IT FOR, BUT HE IS NOT EVEN SURE WHAT THE FULL GUIDELINES ARE MULTIPLE SMALL BUSINESS OWNERS HAVE REPORTED MULTIPLE ISSUES WITH THE PROGRAM THE ADMINISTRATION SAYS IT IS WORKING ON AN EXTENSION THAT WILL GIVE COMPANIES MORE TIME TO USE THE FUNDS úHOW WILL THA PROTECTION PROGRAM BE DISCUSSED TODAY? >> Reporter: THAT IS A VERY IMPORTANT POINT IT GOES BACK TO THE PAYCHECK PROTECTION PROGRAM AS WELL AS THIS MAIN STREET LENDING INITIATIVE AGAIN, BUSINESSES HAVE NOT RECEIVED A LOT OF GUIDANCE ON HOW TO USE THESE FUNDS WHEN YOU HAVE SOMEBODY LIKE TIM SCOTT, A REPUBLICAN FROM SOUTH CAROLINA ON THIS COMMITTEE, IT IS AN ISSUE THAT HE IS HEARING ABOUT IN SOUTH CAROLINA AND AN ISSUE THAT OTHER REPUBLICANS LIKE PAT TOOMEY ARE ZOOMING IN ON THESE ARE ISSUES THAT THESE SENATORS ARE HEARING DIRECTLY FROM THEIR CONSTITUENTS THEY NEED ANSWERS SO THIS IS SOMETHING THAT WILL BE PURSUED IF YOU TAKE A LOOK AT THIS CONGRESSIONAL OVERSIGHT COMMISSION, THE INITIAL REPORT THAT THEY PUT OUT YESTERDAY, IT GOES THROUGH HOW THE FED AND TREASURY HAVE CHANGED THE GUIDELINES AND HOW THEY NEEDED TO MASSAGE THEM TO NOT HAVE SUCH RESTRICTIVE CONTINGENCIES ON CERTIFYING THAT THEY DON’T HAVE MONEY BECAUSE OF THE PANDEMIC EVERY DAY ITEMS LIKE THAT AS YOU SAY, VLAD, THERE HAS NOT BEEN A LOT OF GUIDANCE WITHOUT THAT GUIDANCE, WHY WOULD SMALL BUSINESSES WANT TO TAKE A RISK IN SOMETHING THAT THEY MAY NOT BE ABLE TO PAY BACK LATER? SOME OF THE PAYCHECK PROTECTION MONEY IS SUPPOSED TO BE FOR SMALL BUSINESSES AS GRANTS AS LONG AS THEY ARE PAYING THEIR EMPLOYEES THEIR CURRENT WAGES, EVEN THOUGH THE BUSINESS MAY NOT BE OPERATING HOW DOES THAT WORK WITH EMPLOYEES WHO HAVE BEEN FURLOUGHED AND ARE GOING TO BE REHIRED? THERE ARE A LOT OF QUESTIONS THAT IS SOMETHING I BELIEVE BOTH PARTIES WILL BE ASKING ABOUT >> THROUGHOUT THIS WHOLE PANDEMIC, WALL STREET HAS BEEN ON THIS WILD RIDE AT TIMES, IT SEEMS ALMOST DISCONNECTED FROM WHAT IS HAPPENING ON MAIN STREET VLAD AND I WILL REPORT ON THESE OUTRAGEOUS UNEMPLOYMENT NUMBERS AND THE STOCK MARKET WILL BE OUT THE PRESIDENT HAS CERTAINLY VOICED HIS DESIRE FOR THE FEDERAL RESERVE TO DO MORE, AND THE FEDERAL RESERVE HAS SAID WE ONLY HAVE SO MANY TOOLS IN OUR TOOLBOX DO YOU EXPECT THAT JEROME POWELL WILL BE QUESTION ABOUT THAT, THE STEPS THAT THE FED HAS TAKEN THUS FAR TO HELP STABILIZE THINGS AND WHETHER OR NOT THE FEDERAL RESERVE IS DOING ENOUGH? >> Reporter: ABSOLUTELY THIS IS PART OF THAT MAIN STREET LENDING INITIATIVE THERE ARE OTHER INITIATIVES THAT THE FED NOW HAS AS A TOOL TO USE IN THESE EXTRAORDINARY CIRCUMSTANCES WHEREBY THEY ACTUALLY BACK THANKS AND ESSENTIALLY LEND MONEY IN ORDER TO GET IT OUT TO SMALLER BUSINESSES THERE ARE SEVEN OF THESE PROGRAMS THAT HAVE NOT BEEN USED AS MUCH AS CONGRESS HAD ANTICIPATED I THINK IT IS MAYBE $450 BILLION WORTH OF AUTHORITY THAT THE FEDERAL RESERVE HAS TO GET THIS MONEY OUT TO BANKS SO THAT BANKS CAN LEND IT, SMALL BANKS CAN LEND IT TO BUSINESSES IN THEIR COMMUNITY THAT HAS NOT BEEN USED AS MUCH THERE IS A LOT OF MONEY THAT WAS SPENT IN THIS CARES ACT THERE IS ONLY SO MUCH TIME WHERE YOU CAN HIRE PEOPLE TO WORK AT THE FEDERAL RESERVE TO MANAGE THESE PROGRAMS IN FACT, THE TREASURY DEPARTMENT HAS ITS OWN SPECIAL INSPECTOR GENERAL TO OVERSEE HOW THIS CARES ACT MONEY IS SPENT, I THINK ABOUT $500 BILLION THAT INDIVIDUAL IS GOING TO BE UP FOR A VOTE IN COMMITTEE IN THE HOMELAND SECURITY COMMITTEE TOMORROW THAT PERSON HAS NOT EVEN BEEN CONFIRMED BY THE SENATE, WHICH MAKES IT THAT MUCH MORE DIFFICULT FOR EVEN THE TREASURY DEPARTMENT TO SEND THIS MONEY OUT AND TO MAKE SURE THEY ARE DOING SO THE WAY THAT CONGRESS WANTED THEM TO WITHOUT HAVING THESE LINE BY LINE GUIDELINES, IT MAKES IT VERY DIFFICULT TO OVERSEE HOW THIS MONEY IS BEEN SPENT AND IF IT IS BEING DONE SO IN THE WAY THAT CONGRESS HAD ANTICIPATED >> AS ALWAYS, WE THANK YOU APPRECIATE IT >> THANK YOU >>> PRESIDENT TRUMP INTENSIFIED HIS PUSH FOR BUSINESSES TO REOPEN IN A MEETING WITH RESTAURANT EXECUTIVES ON MONDAY COMPANIES ACROSS THE COUNTRY ARE CONTINUE TO WAIT ON THOSE DISPERSEMENT BAILOUT FUNDS PAULA REID IS AT THE WHITE HOUSE AND JOINS US WITH MORE ON THIS PAULA, YOU HAVE BEEN LISTENING TO OUR DISCUSSION

AS YOU KNOW, LAST WEEK THE HOUSE APPROVED $3 TRILLION IN ADDITIONAL CORONAVIRUS RELIEF REPUBLICANS HAVE SUGGESTED WAITING ON PASSING ANOTHER RELIEF PACKAGE WHERE DOES THE WHITE HOUSE STAND ON INCREASING THIS MONEY? >> Reporter: THE WHITE HOUSE IS WAITING TO REOPEN BEFORE COMING OUT WITH ANY IDEAS FOR ECONOMIC RELIEF FOR THE NEARLY 36 MILLION PEOPLE WHO ARE UNEMPLOYED RECENT STUDIES SUGGEST THAT 42% OF THOSE JOBS ARE NOT COMING BACK MOMENTS AGO, I PRESSED ONE OF THE TOP ECONOMIC ADVISERS IN THE WHITE HOUSE, LARRY KUDLOW, ON WHAT SPECIFIC ECONOMIC RELIEF MEASURES THEY WERE CONSIDERING HE NAMED PAYROLL TAX CUTS, CAPITAL GAINS TAX CUTS — THAT WOULD ONLY REALLY BENEFIT YOU IF YOU HAVE INVESTMENTS OR PROPERTY, AND POSSIBLE RELIEF FOR RESTAURANT TOURS I ASKED WHAT KIND OF RELIEF YOU ARE OFFERING FOR LOW INCOME AMERICANS A PAYROLL TAX CUT ONLY HELPS IF YOU HAVE A JOB THOSE ARE TAXES PAID BY EMPLOYERS AND EMPLOYEES YOU PAY CAPITAL GAINS TAXES AFTER SELLING OFF THE PROPERTY OR INVESTMENT AND THEN GIVING MONEY TO RESTAURANT TOURS AND NOT THEIR WORKERS? IT SEEMS THEIR FOCUS IS ON THE UPPER END OF THE INCOME SPECTRUM AND HELPING THEM WITH RELIEF IT HAS BEEN THE LOWER END THAT HAS BEEN MORE AGGRESSIVELY IMPACTED BY CORONAVIRUS I WAS PRETTY SURPRISED THAT LARRY KUDLOW DID NOT HAVE ANY SPECIFIC MEASURES, ANY SPECIFIC POLICY IDEAS TO HELP LOWER INCOME AMERICANS HE SEEMED TO INFER THAT THESE POLICIES THAT HELP MORLEY PEOPLE WOULD TRICKLE DOWN TO HELP OTHER FOLKS SO FAR, IT DOES NOT APPEAR THEY HAVE A PLAN TO ADDRESS THESE 36 MILLION AMERICANS WHO ARE UNEMPLOYED AND WHOSE JOBS MAY NOT COME BACK >> EARLIER WE’RE TALKING TO NANCY ABOUT THE SURPRISE ANNOUNCEMENT THAT THE PRESIDENT IS TAKING HYDROXYCHLOROQUINE HE IS TRYING TO PROTECT HIMSELF FROM THE CORONAVIRUS EVERYONE KNOWS HE HAS BEEN TOUTING THIS DRUG FOR A WHILE NOW THERE ARE NO STUDIES TO INDICATE THAT THE DRUG IS HELPFUL ONCE YOU HAVE THE ILLNESS THERE ARE DEFINITELY NO STUDIES INDICATING THAT IT CAN PREVENT YOU FROM GETTING THE CORONAVIRUS DO WE KNOW ANYTHING ABOUT HOW THE PRESIDENT CAME TO THIS DECISION AND WHY HE IS TAKING THE DRUG? >> Reporter: AS YOU NOTED, THE PRESIDENT HAS EMBRACED THIS DRUG PUBLICLY AS A RESULT, IT HAS BECOME A POLITICAL FLASHPOINT SCIENTISTS CONTINUE TO STUDY IT AS RIGHT NOW, THERE IS NO EVIDENCE PUBLICLY AVAILABLE THAT IT CAN PROTECT YOU AND SOME WARNINGS THAT IT COULD BE DEADLY THE PRESIDENT’S PHYSICIAN RELEASED A VERY CAREFULLY WORDED LETTER LAST NIGHT IT DOES OT SAY ANYTHING ABOUT THE SPECIFICS OF THIS REGIMEN THE TWO MEN DISCUSSED HYDROXYCHLOROQUINE AND THEY DECIDED THE BENEFITS OUTWEIGHED THE RISKS THERE WERE QUESTIONS ABOUT WHY THIS MEMO WAS SO VAGUE AND DID NOT TALK ABOUT AZITHROMYCIN OR ZINC REMEMBER, HE BROUGHT THIS UP AS HE WAS BEING PRESSED BY REPORTERS ABOUT A SERIES OF UNFAVORABLE STORIES THERE WERE SOME QUESTIONS ABOUT IF THIS WAS MEANT TO BE A DISTRACTION THE PRESS SECRETARY HERE AT THE WHITE HOUSE CAME OUT AND SHE CONFIRMED THE PRESIDENT IS INDEED TAKING THIS WHEN PRESSED ON WHY SO MANY STATEMENTS HAD BEEN VAGUE, WHEN NO ONE HAD BEEN ABLE TO COME OUT AND OUT RIGHT CONFIRM THE STATEMENTS, SHE JUST SAID THAT THE PHYSICIANS MEMO, IT WAS JUST MEANT TO CONCUR ON THE ANALYSIS TO SHOW THAT THE DOCTOR AGREED WITH THE ANALYSIS FOR THE PRESIDENT TO TAKE THIS CONTROVERSIAL DRUG >> ARE YOU HEARING, AND I SAW THAT, THE LETTER THAT WAS RELEASED YOU POINTED OUT IN AN EMAIL TO CORRESPONDENCE INTO OUR EDITORIAL STAFF THAT IT DID NOT INDICATE THAT THE DOCTOR HAD PRESCRIBED HYDROXYCHLOROQUINE ANY OTHER DOCTORS HAVE SAID, LOOK, THAT WOULD BE PRESCRIBING A DRUG LIKE THAT FOR THE PURPOSES OF WHICH THE PRESIDENT SAYS HE IS TAKING IT WOULD NOT BE IDEAL I AM WONDERING, ARE YOU HEARING THAT THERE ARE OTHER PREVENTATIVE PRACTICES THAT THE PRESIDENT OR OTHERS AROUND HIM ARE TAKING? >> Reporter: THE ONES THAT WE CAN SEE MOST EASILY ARE PERSONAL PROTECTIVE EQUIPMENT AND SOCIAL DISTANCING THE PRESIDENT STILL DOES NOT ENGAGE IN THOSE HE DOES NOT WEAR A MASK OR CONSISTENTLY SOCIALLY DISTANCE HIS CLOSEST STAFF HAS ONLY BEEN PRACTICING ANY OF THESE OVER THE PAST 10 DAYS HERE AT THE WHITE HOUSE, THEY ARE NOT TAKING A LOT OF PREVENTATIVE MEASURES TO STEM THE SPREAD OF THIS VIRUS, WHICH WE HAVE AT LEAST TWO POSITIVE CASES IN THE WEST WING IF YOU HAVE EVER BEEN IN THERE, IT IS VERY TIGHT QUARTERS THE PRESIDENT IS IN AND OUT OF MEETINGS WITH HIS STAFF ALL DAY LONG FROM WHAT WE CAN SEE, THE PRESIDENT DOES NOT APPEAR TO BE USING ANY PROVEN PROTECTIVE METHODS >> BEFORE HE LET YOU GO, I WANT TO ASK YOU ABOUT THE THREAT OF THE PRESIDENT TO PERMANENTLY

CUT FUNDING TO THE WORLD HEALTH ORGANIZATION THE TIMING ASIDE, BECAUSE WE ARE IN THE MIDDLE OF A PANDEMIC , DO WE KNOW WHY SHE HAS COME TO THAT CONCLUSION? DID SOMETHING ELSE HAPPEN RECENTLY THAT SORT OF PROMPTED HIM TO UP THE ANTE HERE? >> Reporter: THAT IS RIGHT SO FAR, THE PRESIDENT HAS SENT OUT MIXED MESSAGES ABOUT THE RESPONSIBILITY THAT CHINA HOLDS FOR THIS PANDEMIC AT FIRST, HE SUPPORTED THEM AND SAID THEY WERE DOING A GREAT JOB MORE RECENTLY, HE IS TRYING TO PIN MORE BLAME ON CHINA AND THE WORLD HEALTH ORGANIZATION FOR ITS RELIANCE ON INFORMATION COMING OUT OF CHINA THIS IS PRETTY MUCH RED MEAT FOR THE PRESIDENT SPACE, SUGGESTING THAT A LARGE INTERNATIONAL ORGANIZATION WHERE WE GIVE AN ENORMOUS AMOUNT OF MONEY SHOULD BE CUT OFF FROM FUNDING THAT IS SOMETHING THAT MAY SELL WELL WITH A LOT OF HIS SUPPORTERS HE THREATENED TO PERMANENTLY HALT U.S. FUNDING IN EITHER RECONSIDER OUR COUNTRY’S MEMBERSHIP IF THE WORLD HEALTH ORGANIZATION DID NOT ENACT CERTAIN REFORMS AT THIS POINT, IT IS NOT CLEAR IF THE PRESIDENT IS POSTURING HERE TO EARN SOME POINTS WITH HIS BASE TO DEFLECT RESPONSIBILITY FOR HOW THIS HAS SPREAD WITHIN THE U.S., OR IF HE IS SERIOUS ABOUT THIS >> PAULA REID, THANK YOU SO MUCH >>> AS FED CHAIR JEROME POWELL PREPARES TO FACE LAWMAKERS TODAY, HE IS EXPLORING THE FURTHER ACTION THAT THE FEDERAL RESERVE CAN TAKE TO HELP THE AMERICAN ECONOMY AS WE TOLD YOU EARLIER, HE SPOKE TO SCOTT PELLEY FOR 60 MINUTES AND TALKED ABOUT INTEREST RATES >> Reporter: IN THE EARLY DAYS OF THE CRISIS IN THIS BOARDROOM, YOU AND THE COMMITTEE LOWERED INTEREST RATES ESSENTIALLY TO 0% WOULD YOU LOWER THEM FURTHER INTO NEGATIVE TERRITORY, WHICH THE PRESIDENT HAS SUGGESTED IS A GOOD IDEA? >> DURING THE LAST CRISIS AND DURING THE RECOVERY, WE LOOKED AT NEGATIVE INTEREST RATES IT IS SOMETHING WE DECIDED NOT TO DO WE USED OTHER TOOLS AND SAID THOSE TOOLS INSTALLED FORWARD WIDENS GUIDANCE AND QUANTITATIVE EASING. I CONTINUE TO THINK AND MY COLLEAGUES CONTINUE TO THINK THAT NEGATIVE INTEREST RATES IS PROBABLY NOT AN APPROPRIATE OR USEFUL POLICY FOR US IN THE UNITED STATES >> Reporter: WHY NOT? THE PRESIDENT SEEMS TO THINK IT WOULD HELP >> THE EVIDENCE ON IF IT HELPS IS QUITE MIXED THE ISSUE IS, PEOPLE WOULD BE DEPOSITING MONEY IN THE BANK AND THAT MONEY WOULD BE SHRINKING THEY WOULD BE PAYING INTEREST TO PUT THEIR MONEY IN THE BANK IT IS NOT A POPULAR POLICY, AS YOU CAN IMAGINE IN ADDITION, IT CAN ALSO TEND TO DEPRESS THE PROFITABILITY OF BANKS, WHICH MAKES THEM LIKELY TO LEND LESS, WHICH WEIGHS ON ECONOMIC GROWTH IT IS NOT AT ALL SETTLED IN ECONOMIC ANALYSIS THAT NEGATIVE RATES REALLY ADD MUCH VALUE >> Reporter: I THINK THE IDEA OF NEGATIVE INTEREST RATES IS SOMETHING THAT A LOT OF PEOPLE HAVE DIFFICULTY HITTING THEIR HEAD AROUND WHICH YOU EXPLAIN IT TO ME? >> RATHER THAN BEING PAID INTEREST ON YOUR CASH, YOU PAY INTEREST TO THE BANK. IF YOU BORROW MONEY, THEY PAY YOU TO BORROW MONEY IF YOU LEND THE MONEY BY PUTTING IT IN A BANK, THEY PAY YOU MONEY >> Reporter: SO THE BANKS WOULD PAY PEOPLE TO BORROW MONEY ESSENTIALLY? >> YES >> Reporter: AND THAT WOULD CONCEIVABLY CAUSE MORE BUSINESS AND COMMERCE TO HAPPEN? >> IT WOULD THIS HAS BEEN TRIED WE HAVE NEGATIVE POLICY RATES IN MANY COUNTRIES AROUND THE WORLD AS A RESULT OF THE FINANCIAL CRISIS THERE IS NO CLEAR FINDING THAT IT ACTUALLY DOES SUPPORT ECONOMIC ACTIVITY IT INTRODUCES DISTORTIONS INTO THE FINANCIAL SYSTEM WHICH I THINK OFFSET THAT THERE ARE PLENTY OF PEOPLE WHO THINK NEGATIVE INTEREST RATES ARE A GOOD POLICY BUT WE DON’T REALLY THINK SO AT THE FEDERAL RESERVE IT IS AN AREA OF REAL UNCERTAINTY IN THE CENTRAL BANKING WORLD >> JILL SCHLESINGER IS JOINING US NOW TO TALK MORE ABOUT WHAT WE JUST HEARD JEROME POWELL IS EXPECTED TO SPEAK ON A NUMBER OF DIFFERENT TOPICS HE HAS SAID RECENTLY THERE ARE ONLY SO MANY TOOLS THAT WE HAVE AT THE FEDERAL RESERVE INTEREST RATES ARE ONE OF THEM BUT IT IS TIME FOR CONGRESS TO STEP UP IF THE ECONOMY NEEDS TO BE SAVED WHAT ARE YOU LOOKING TO HEAR FROM JEROME POWELL? >> Reporter: WE ALREADY KNOW HE WILL REITERATE THE COMMENTS HE MADE ON 60 MINUTES AND IN THE SPEECH HE HAD CONDUCTED LAST WEEK, WHICH IS ESSENTIALLY THAT THE FEDERAL RESERVE HAS LENDING AUTHORITY IT DOES NOT HAVE SPENDING AUTHORITY THE CONCERN AMONG THE FEDERAL RESERVE OFFICIALS IS THAT THIS RECESSION THAT WE ARE IN IS SO DEEP AND COULD CONTINUE TO PERSIST FOR THE NEXT FEW MONTHS

ORDINARY AMERICANS ARE GOING TO NEED FINANCIAL LIFELINES THAT MUST COME IN THE FORM >> JILL, AS CONGRESS GRAPPLES OVER ANOTHER SPENDING PRACTICE, WHAT SHOULD IT PRIORITIZE TO GET AMERICANS SUFFERING DURING THIS PANDEMIC ON THE ROAD TO RECOVERY >> WHEN I SPEAK TO ECONOMISTS, LEFT AND RIGHT AND CENTER ECONOMISTS, WHAT THEY ARE TALKING ABOUT IS CONSISTENT HELP TO THOSE WHO ARE ACTUALLY IMPACTED THAT MEANS INSTEAD OF A $1,200 OR $2,400 ONE-TIME-ONLY CHECK THAT, IS SOMETHING THAT CONSISTENTLY APPEARS IN PEOPLE’S BANK ACCOUNTS MAYBE FOR THE NEXT THREE, FOUR, FIVE MONTHS CLEARLY WE KNOW THAT UNEMPLOYMENT INSURANCE IS IMPORTANT WE KNOW THAT EXTRA $600 A MONTH THAT THE FEDERAL GOVERNMENT IS PROVIDING — SORRY $600 A WEEK IS REALLY IMPORTANT BUT THERE NEEDS TO BE SOME CONSISTENCY SOME ECONOMISTS ARE CALLING THESE AUTOMATIC STABILIZERS HAVE THE CHECKS COME FOR THE NEXT FEW MONTHS WHAT WE KNOW FROM THE FEDERAL RESERVE, THOSE WHO ARE NEW ENTRANTS INTO THE LABOR FORCE, THOSE WHO MAKE LESS THAN $40,000, BLACK AND HISPANIC AMERICANS, THEY ARE BEING BARING THE BRUNT OF THE FINANCIAL FALLOUT FROM THE PANDEMIC >> IN HIS OPENING STATEMENTS, STEVE MNUCHIN SAYS HE EXPECTS THE ECONOMY TO IMPROVE IN THE THIRD AND FOURTH QUARTER WHAT NEEDS TO HAPPEN THOUGH TO ENSURE THAT THAT HAPPENS? IS IT WHAT YOU’RE TALKING ABOUT, SOME SORT OF MONEY COMING IN THAT REGULAR AMERICANS CAN FEEL SOME LEVEL OF STABILITY WHEN IT COMES TO PAYING THEIR BILLS OVER THE NEXT FEW MONTHS >> I THINK THE IMPORTANT PART OF THIS IS MNUCHIN IS CORRECT OF COURSE IT WILL IMPROVE WE ARE ABOUT TO SEE A 30% CONTRACTION IN THE ECONOMY ON AN ANNUALIZED BASIS SO IT WILL GET BETTER THAN THAT HOW LONG IT TAKES TO GET TO THE PRE-PANDEMIC LEVEL IS REALLY UNKNOWN WHAT IS REALLY IMPORTANT HERE IS THAT WHAT YOU MENTIONED, THAT CONSISTENCY, THAT IS IMPORTANT AND ALSO THE IDEA THAT IF WE DON’T GET AHEAD OF THIS, IF THE ECONOMY CAN’T STEADY, WE ARE LIKELY TO LOSE SOME OF THESE PEOPLE FROM THE LABOR FORCE LAST WEEK, THE NATIONAL BUREAU OF ECONOMIC RESEARCH SAID THAT OF THESE LAYOFFS, A FULL 42% COULD BECOME PERMANENT AND IF THAT IS THE CASE, THOSE PEOPLE, BUT THROUGH NO FAULT OF THEIR OWN, WILL LOSE THEIR INCOMES AND WE’VE GOT TO SEE THE FEDERAL GOVERNMENT ACT OR ELSE AS POWELL SAID, THIS RECESSION COULD GO ON LONGER AND COULD HAVE LASTING IMPACT THAT IS THE FEAR RIGHT NOW >> ALL RIGHT JILL, ALWAYS GREAT TO TALK TO YOU THANK YOU VERY MUCH WE APPRECIATE IT >> GREAT TO BE WITH YOU THANK YOU >>> ALL RIGHT LET’S TAKE YOU NOW TO CAPITOL HILL WHERE THE SENATE COMMITTEE HEARING ON THE U.S GOVERNMENT’S HANDLING OF ITS MASSIVE ECONOMICS RESPONSE TO THE CORONAVIRUS PANDEMIC IS JUST UNDERWAY >> A LARGE PORTION OF THE FUNDING IS AUTHORIZED UNDER TITLE 4 OF THE CARES ACT THAT PROVIDES SIGNIFICANT RESOURCES FOR LOANS, LOAN GUARANTEES AND TREASURY FROM THE FEDERAL RESERVE 133 EMERGENCY LENDING FACILITIES AND PROGRAMS IN SUPPORT OF ELIGIBLE BUSINESSES, STATES, MUNICIPALITIES AND TRIBES TITLE 4 OF THE CARES ACT PROVIDED $454 BILLION AS AN INFUSION INTO THE EXCHANGE STABILIZATION FUND TO SUPPORT THE FEDERAL RESERVES EMERGENCY LENDING FACILITIES THAT FACILITATE LIQUIDITY IN THE MARKETPLACE AND ELIGIBLE BUSINESS, STATES, LOCAL GOVERNMENTS AND TRIBES THIS UNIQUE LENDING AUTHORITY KNOWN AS 133 IS AUTHORIZED IS AUTHORIZED UNDER SECTION 13 OF THE FEDERAL RESERVE ACT AND PLAYS A CRITICAL ROLE IN STABILIZING MARKETS 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 LAST WEEK, OTHER MEMBERS OF THIS COMMITTEE AND I HAD A ROBUST DISCUSSION WITH VICE CHAIRMAN ON THESE FACILITIES AND STRESSED THE IMPORTANCE OF GETTING FACILITIES LIKE THE MAIN STREET LENDING PROGRAMS AND MUNICIPAL LIQUIDITY FACILITY UP AND RUNNING QUICKLY TO PROVIDE A LIVE LONG TO STRUGGLING BUSINESSES, STATES AND LOCAL GOVERNMENTS INSTEAD PROVIDE BROAD ACCESS

THERE IS A QUESTION WHETHER IT IS ACCEPTABLE FOR ANY TREASURY TO TAKE ANY LOSSES ON THE INVESTMENTS PUT INTO THE VEHICLES THAT THE FED WILL LEND FOR VARIOUS PROGRAMS THE 133 FACILITIES ARE A CRITICAL COMPONENT OF ATROPINE ECONOMY RECOVERY THAT HAS THEM QUICKLY OPERATIONAL, BROADLY FLEXIBLE AS POSSIBLE TITLE 4 CONTAINS ROBUST OVERSIGHT PROVISIONS, ESPECIALLY THE ONE THAT BROUGHT US HERE TODAY SECTION 402.6 IT IS CRITICAL THAT EACH FEDERAL AGENCY FOLLOW ALL REPORTs AND OVERSIGHT REQUIREMENTS IN THE CARES ACT OTHER STEPS ARE ALREADY BEING TAKEN TO ENSURE APPROPRIATE OVERSIGHT LAST WEEK, THIS COMMITTEE VOTED THE SPECIAL INSPECTOR GENERAL FOR PANDEMIC RECOVERY FAVORABLY OUT OF COMMITTEE YESTERDAY THE CONGRESSIONAL OVERSIGHT COMMITTEE PUBLISHED ITS INITIAL REPORT ON OVERSIGHT OF TITLE 4. THE CARES ACT IS THE BIGGEST RESCUE PACKAGE IN THE HISTORY OF CONGRESS AND WE NEED TO MAKE SURE THAT THE DOLLARS AND PROGRAMS QUICKLY FIND THEIR MARK DURING THIS HEARING I LOOK FORWARD TO HEARING MORE ON AN UPDATE ON THE TREASURY LOAN PROGRAMS, 133 EMERGENCY FACILITIES AND THE PAYCHECK PROTECTION PROGRAM STEPS THE FED AND TREASURY HAVE TAKEN AND WILL CONTINUE TO TAKE TO PROVIDE TRANSPARENCIES IN THE LOANS AND LOANS GUARANTEES UNDER THE CARES ACT AND HOW THE UNUSED FORMS WILL BE PRIORITIZED AND LEVERAGES TO PROVIDE LIQUIDITY TO THE ECONOMY NOT PART OF TITLE 4 OF THE CARES ACT, SBA AND TREASURY HAVE WORKED AROUND THE CLOCK TO RAMP UP THE PAYCHECK PROTECTION PROGRAM THAT HAS APPROVED 4.3 MILLION LOANS TO SMALL BUSINESS THAT’S AMOUNT TO ABOUT $513 BILLION ACCORDING TO THE SBA, THE OVERALL LOAN SIZE FOR THE PPP IS, THE AVERAGE LOAN SIZE HAS BEEN AROUND $70,000 ON APRIL 28th, TREASURY AND SBA ANNOUNCED THAT SBA WOULD REVIEW ALL PPP LOANS NEXT SHE IS OF $2 MILLION TO MAKE SURE THAT THE BORROWER’S SELF CERTIFICATION WAS APPROPRIATE FINALLY ON MAY 8th, 2020, COMMERCE COMMITTEE CHAIRMAN WICKER AND I SEPTEMBER A LETTER TO SECRETARY MNUCHIN ON THE PAYROLL SUPPORT PROGRAM REQUESTING A DETAILED REPORT ON THE STATUS OF THE PROGRAM AND ON MAY 12th, TREASURY ANNOUNCED A NEW TRANSPARENCY MEASURES WITH REGARDING TO THE PSP I ENCOURAGE TO YOU CONTINUE YOUR WORK WITH THE APPLICANTS AND UPDATE THE APPLICATION AS ADDITIONAL FUNDS ARE DISBURSED EXTRAORDINARY ACTION THAT’S YOU’VE TAKE TONE STABILIZE THE ECONOMY AND PROVIDE SUPPORT TO AMERICANS DURING THIS TRYING TIME THANK YOU FOR JOINING US TO SHARE YOUR ACTIVITY PLANS IN RESPONSE TO COVID-19 SENATOR BROWN >> THANK YOU, MR. CHAIRMAN I WOULD LIKE TO THANK YOU THE CHAIRMAN FOR FOLLOWING THE BEST ADVICE OF HEALTH EXPERTS AND HOLDING A VIRTUAL HEARING TO PREVENT THE SPREAD OF CORONAVIRUS I WELCOME SECRETARY MNUCHIN AND CHAIRMAN POWELL TO THE SENATE BANKING AND HOUSING COMMITTEE THANK YOU FOR JOINING US I WILL STILL OUTRAGED BY LEADER MCCONNELL’S RECKLESS DECISION TO KEEP THE SENATE IN SESSION PUTTING CAPITOL HILL WORKERS AND 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 AND COMMUNITIES THE HOUSE PASSED A BILL THAT INCORPORATES MANY OF OUR PLANS THE AMERICAN PEOPLE ARE RISING TO THE CHALLENGE THEIR LEADERS ARE FAILING THEM LEADER MCCONNELL SAYS HE SEES NO URGENCY THOSE ARE HIS WORDS, NO URGENCY BEFORE WE BEGIN I WOULD LIKE TO PAUSE TO RECOGNIZE ALL OF THE WORKERS WHO HAVE LOST THEIR LIVES ON THE JOB DURING THIS PANDEMIC >> THE CORONAVIRUS HAS BROUGHT OUT IN THE BEST IN OUR COMMUNITIES WE REMEMBER THE SOLIDARITY THAT CREATED OUR SOCIAL SAFETY NET DURING THE NEW DEAL AND VICTORY GARDENS AND POWERED THE CIVIL RIGHTS MOVEMENT TODAY THAT SPIRIT OF SOLIDARITY REVEALS ITSELF IN HANDS SO MASS AND FIRE ESCAPE APPLAUSE FOR HOSPITAL WORKERS AND VIDEO CONFERENCE PLAY DATES AS MILLIONS OF INDIVIDUAL AMERICANS PULL TOGETHER TO DO THEIR PART TO FLATTEN THE CURVE BUT THIS PANDEMIC ALSO LAYS BEAR HOW CORPORATIONS NOW CLAIM THEIR WORKERS ARE ESSENTIAL HAVE FOR TOO LONG CREATED THEM AS A COST TO BE MINIMIZED SINCE THE BAILOUTS OF THE FINANCIAL CRISIS, MANY OF US HAVE BEEN CONCERNED ABOUT HOW OUR COUNTRY REWARDS WALL STREET AND TOO OFTEN IGNORES THE PEOPLE THAT MAKES OUR COUNTRY WORK WHENEVER WE’RE ASKED WHY WAGES FOR THESE ESSENTIAL WORKERS ARE

STAGNANT, WE’RE TOLD WE CAN’T AFFORD IT COMPANIES WOULD HAVE TO RISE PRICES IF THEY PAY PEOPLE MORE NEVER MIND THAT CEOS WERE GETTING HUGE RAISES, WALL STREET INVESTORS HUGE PAYOUTS NEVER MIND YOU THAT LOW PRICES DON’T DO YOU ANY GOOD IF WAGES ARE LOW THE ECONOMY HAS A SHRINKING MIDDLE CLASS, WITH RISING INEQUALITY, WITH RISING ECONOMIC GROWTH IT IS CLEAR WHEN MILLIONS OF AMERICANS, MILLIONS OF WORKERS ARE LAID OFF OR HAVE THEIR HOURS CUT OR MAKING LOW WAGES TO BEGIN WITH ARE NOW WORRIED ABOUT THEIR FUTURE ECONOMY GRINDS TO A HALT THE ONLY THING KEEPING OUR SOCIETY RUNNING DURING THIS CRISIS IS AMERICAN WORKERS THOSE WHO STOCK OUR SHELFS AND DELIVER OUR PACKAGES AND FILL OUR PRESCRIPTIONS AND PREPARE FOOD AND CARE FOR LOVED ONES A GROCERY STORE WORKER IN OHIO TOLD ME RECENTLY, I DON’T FEEL SAFE AT WORK AND THEY DON’T PAY ME MUCH I DON’T FEEL ESSENTIAL I FEEL EXPENDABLE WE’RE ASKING PEOPLE TO SHOW UP FOR WORK AND RISK THEIR HEALTH AND RISK THEIR FAMILY’S SAFETY PERHAPS WE’RE FINALLY REALIZING THE WORDS OF DR. KING RINGING TRUE THAT ONE DAY OUR SOCIETY WILL COME TO RESPECT THE SANITATION WORKER, FOR THE PERSON WHO PICKS UP THE GARBAGE IN THE FINAL ANALYSIS IS AS SIGNIFICANT AS THE PHYSICIAN IF HE DOESN’T DO HIS JOB, DISEASES ARE RAMPANT ALL LABOR HAS DIGNITY YES, ALL LABOR HAS DIGNITY YOU MIGHT THINK AT A TIME WHEN WE’RE DEMANDING MORE FROM ESSENTIAL WORERS THAN EVER BEFORE, PEOPLE THAT TAKE CARE OF OUR FAMILIES AND ELDERLY, MOSTLY WOMEN, OFTEN BLACK AND BROWN WORKERS, YOU WOULD THINK THEY WOULD BE GETTING A HUGE RAISE OUR ECONOMY IS SUPPOSED TO REWARD PEOPLE WHOSE TALENTS ARE IN HIGH DEMAND THAT’S WHAT WE’RE TAUGHT THAT’S WHAT CEOS TELL US, RIGHT THAT IS NOT HAPPENING WORKERS ARE GETTING LEFT BEHIND AGAIN AS ESSENTIAL WORKERS GO HOME TO FAMILIES, THINK ABOUT THIS, AFTER A LONG STRESSFUL DAY, THEY’RE WONDERING HOW THEY WILL PAY THEIR RENT, THEY’RE WONDERING HOW TO AFFORD ANOTHER WEEK OF GROCERIES AND THEY WONDER WHETHER THEY’RE GOING TO INFECT THEIR FAMILIES AFTER GOING TO WORK HOW ABOUT THE 35 MILLION AMERICANS WHO HAVE BEEN LAID OFF FROM THEIR JOBS BECAUSE OF THIS CRISIS WHEN WE PASSED THE CARES ACT, WE TRIED TO ADDRESS THIS HE WE TRIED TO MAKE SURE THAT THE TRILLIONS OF DOLLARS IN SPENDING WOULDN’T JUST GO TO WALL STREET LIKE IT USUALLY DOES WE WANTED TO MAKE SURE THAT THE FED AND THE TREASURY GOT THIS MONEY DIRECTLY INTO WORKS’ POCKETS WE DIDN’T WANT IT TO GO TO OIL AND GAS COMPANIES WHOSE ACTIVITIES POST AN EX AT THE SENSUAL THREAT TO WORKERS IN THE ECONOMY CHAIRMAN POWELL, I APPRECIATE YOUR RECENT COMMENTS ON HOW úCO PUT MONEY DIRECTLY IN WORKERS POCKETS I AGREE WITH THAT IF CONGRESS DOES NOT ACT NOW TO PUT MONEY IN THE HANDS OF PEOPLE WHO POWER OUR ECONOMY AND MAIN STREET BUSINESSES IN STRUGGLING COMMUNITIES, WE RISK MAKING THE ECONOMIC CRISIS WORSE LEADER MCCONNELL NEEDS TO LET THE SENATE TAKE UP THE HOUSE BILL IMMEDIATELY DEBATE IT, NEGOTIATE IT, ARGUE WITH US, FIGHT OVER IT BUT DO SOMETHING CONGRESS HAS AN IMPORTANT RESPONSIBILITY ALSO TO MAKE SURE THAT THE $500 BILLION WE’VE 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 HEARING FROM BOTH OF YOU, MR. SECRETARY AND CHAIR POWELL, NOT ONLY ABOUT WHAT YOU’RE DOING FOR BIG BANKS OR BIG CORPORATIONS WE ALREADY KNOW THAT AND HOW YOU EXPECT THE MONEY TO TRICKLE DOWN BUT HOW YOU’RE MAKING SURE THAT THE MONEY AND THE AUTHORITY THAT CONGRESS GAVE YOU ACTUALLY HELPED THE PEOPLE WHO MAKE THIS COUNTRY WORK I WANT TO HEAR HOW IT WILL BE DIFFERENT THIS TIME 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, MR. CHAIRMAN >> THANK YOU SENATOR BROWN WE WILL NOW MOVE TO THE TESTIMONY SECRETARY MNUCHIN AND CHAIRMAN POWELL, YOUR FULL WRITTEN STATEMENTS WILL BE MADE A PART OF THE RECORD WE WILL NOW GO TO YOUR ORAL TESTIMONY AND WE WILL START WITH SECRETARY MNUCHIN >> THANK YOU THANK YOU FOR THIS OPPORTUNITY TO HIGHLIGHT HOW THE DEPARTMENT OF TREASURY AND THE FEDERAL RESERVE ARE WORKING TOGETHER TO PROVIDE LIQUIDITY TO THE FINANCIAL SYSTEM OUR PROGRAM SUPPORTS THE FLOW OF MUCH NEEDED CREDIT TO AMERICAN WORKERS, FAMILIES, BUSINESS, STATES AND MUNICIPALITIES I AM TESTIFYING TODAY 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 COVID-19 PANDEMIC THIS DISEASE IS IMPACTING FAMILIES IN COMMUNITIES ACROSS THE NATION THROUGH NO FAULT OF THEIR OWN, THE AMERICAN PEOPLE ARE ALSO ENDURING ECONOMIC CHALLENGES I’M INSPIRED BY OUR NATION’S MEDICAL PROFESSIONAL AND FIRST RESPONDERS ON THE FRONT LINES TAKING CARE OF OUR FELLOW CITIZENS THANKS TO THEIR EFFORTS AND UNWAVERING COMMITMENT TO THEIR COMMUNITIES, I AM CONFIDENT THAT OUR NATION WILL REMERGE 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 DEPARTMENT IS WORKING HARD TO IMPLEMENT THE CARES ACT WE APPRECIATE CONGRESS WORKING WITH US TO ENACT THE STATUTE WHICH IS THE SINGLE LARGEST ECONOMIC RELIEF EFFORT IN THE HISTORY OF OUR COUNTRY WE ALSO APPRECIATE THE FEEDBACK THAT 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 TO KEEP TENS OF MILLIONS OF HARDWORKING AMERICANS ON THE PAYROLL MANY SMALL BANKS AND NONBANKS ARE PARTICIPATING IN THIS PROGRAM WE HAVE ISSUED MORE THAN 140 MILLION ECONOMIC IMPACT PAYMENTS FOR EVERY 240 BILLION TO PROVIDE DIRECTORY LEAVE TO MILLIONS OF AMERICANS THE TYPICAL FAMILY OF FOUR RECEIVED APPROXIMATELY $3,400 WE HAVE DISTRIBUTED ABOUT $150 BILLION TO STATES, LOCAL AND TRIBAL GOVERNMENTS THROUGH THE CORONAVIRUS RELIEF FUND FOR ESSENTIAL SERVICES WE HAVE ALSO APPROVED NEARLY 25 BILLION IN PAYROLL SUPPORT TO THE AIRLINE INDUSTRY TO PROTECT THIS CRITICAL SECTOR OF OUR ECONOMY TURNING TO THE CENTRAL FOCUS OF THE HEARING TODAY, THE CARES ACT ALSO PROVIDED AUTHORITY FOR 454 BILLION IN SUPPORT FOR THE FEDERAL RESERVE LENDING FACILITIES TO PROVIDE LIQUIDITY TO THE SYSTEM SINCE MARCH 17th, I HAVE APPROVED THE FOLLOWING FACILITIES THE COMMERCIAL PAPER FUNDING FACILITY, THE PRIMARY DEALER CREDIT FACILITY, THE MONEY MARKET LIQUIDITY FACILITY, THE TERM ASSET BACK SECURITIES LOAN FACILITIES, THE PRIMARY MARKET CORPORATE FACILITY, THE SECONDARY MARKET CORPORATE FACILITY, THE MAIN STREET BUSINESS LENDING PROGRAM, THE MUNICIPAL LIQUIDITY FACILITY AND THE PPE LENDING FACILITY WE HAVE COMMITTED APPROXIMATELY 200 BILLION 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 ARE PREPARED TO SUPPORT THESE PROGRAMS WITH THE FEDERAL RESERVE AS WE NEED TO MOVE FORWARD WE ARE SYMPATHETIC TO THE HARDWORKING AMERICANS AND BUSINESSES DURING TREMENDOUS CHALLENGES DUE TO COVID-19 WE HAVE HAD TO TAKE UNPRECEDENTED STEPS TO SHUT DOWN SIGNIFICANT PARTS OF 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 THIS IS WHY IT IS SO 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 THERAPIES AND TESTING WORKING CLOSELY WITH THE GOVERNORS, WE ARE BEGINNING TO OPEN THE ECONOMY IN A WAY THAT MINIMIZES RISK TO WORKERS AND CUSTOMERS WE EXPECT ECONOMIC CONDITIONS TO IMPROVE IN THE THIRD AND FOURTH QUARTER AND INTO NEXT YEAR I WANT TO CONCLUDE BY THANKING PEOPLE THROUGHOUT THE ADMINISTRATION UNDER THE LEADERSHIP OF PRESIDENT TRUMP I’M PROUD TO HAVE WORKED WITH YOU ON A BIPARTISAN BASIS TO HELP GET RELIEF INTO THE HANDS OF HARDWORKING AMERICANS AND BUSINESSES AS SOON AS POSSIBLE WHILE THESE ARE UNPRECEDENTED AND DIFFICULT TIMES, THESE PROGRAMS ARE MAKING A MAJOR POSITIVE IMPACT ON PEOPLE’S LIVES TOGETHER WE WILL DESTROYED COVID-19 VIRUS AND OUR COMPANY WILL EMERGE FROM THIS PANDEMIC STRONGER THAN EVER THANK YOU FOR THE COMMUNITY TO DISCUSS THESE EFFORTS TODAY AND I LOOK FORWARD TO YOUR QUESTIONS >> THANK YOU, SECRETARY MNUCHIN CHAIRMAN POWELL >> CHAIRMAN, RANKING MEMBER BROWN AND OTHER MEMBERS OF THE COMMITTEE, THANK YOU FOR THE OPPORTUNITY TO TESTIFY TODAY ON

THE FIRST QUARTERLY OF THE CARES ACT THIS IS A WORLDWIDE PUBLIC HEALTH CRISIS AND HEALTH CARE WORKERS HAVE BEEN THE FIRST RESPONDERS SHOWING DETERMINATION AND HAVE OUR LASTING GRATITUDE SO HAVE THE ALLEGIANCE OF OTHER ESSENTIAL WORKERS WORKING EVERY DAY ON OUR BEHALF AS A NATION, WE HAVE TEMPORARILY WITHDRAWN FROM MANY ECONOMIC AND SOCIAL ACTIVITY TO HELP SLOW THE 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 SO PROTECT THEIR OWN HEALTH AND THEIR NEIGHBORS AND THE BROADER COMMUNITY WHILE WE ARE ALL AFFECTED, THE BURDEN HAS FALLEN MOST HEAVILY ON THOSE LEAST ABLE TO BEAR IT THE SACRIFICES WE’RE ALL MAKING REPRESENT AN INVEST N OUR INDIVIDUAL AND COLLECTIVE HELP AS POLICY MAKERS WE SHOULD CONTINUE TO DO WHAT WE CAN TO HELP CUSHION THE BLOW THE SCOPE AND SPEED OF THIS DOWNTURN ARE SIGNIFICANTLY WORSE THAN ANY RECESSION SINCE WORLD WAR II A SEVERE DECLINE IN ECONOMIC ACTIVITY AND EMPLOYMENT AND THE JOB GAINS FROM THE LAST DECADE HAVE BEEN REVERSED MORE THAN 20 MILLION PEOPLE HAVE LOST THEIR JOBS AND RECENT RESEARCH SHOWS THAT PEOPLE EARNING LESS ARE THE ONES HARDEST HIT THIS REVERSAL OF ECONOMIC FORTUNE HAS CAUSED A LEVEL OF PAIN THAT IS HARD TO CAPTURE IN WORDS AS LIVES ARE UPENDED FEDERAL RESERVE IS COMMIT TODAY USE OUR FULL RANGE OF TOOLS TO SUPPORT THE ECONOMY IN THIS CHALLENGING TIME OUR ACTIONS SO FAR FALL INTO FOUR CATEGORIES FIRST, OUTRIGHT PURCHASES OF TREASURIES AND AGENCY MORTGAGE BACKED SECURITIES IN THESE CRITICAL MARKETS SECOND, LIQUIDITY AND FUNDING MEASURE, SWAP LINES WITH FOR ENBANKS AND SEVERAL TREASURY BACKED FACILITIES TO SUPPORT SMOOTH MONEY MARKET FUNCTIONING THIRD, WITH ADDITIONAL TREASURY BACKING, FACILITIES TO MORE DIRECTLY SUPPORT THE FLOW OF CREDIT TO HOUSEHOLDS, BUSINESSES AND STATE AND LOCAL GOVERNMENTS FOURTH, TEMPORARY REGULATORY ADJUSTMENTS TO ENCOURAGE AND ALLOW BANKS TO EXPAND BALANCE SHEETS TO SUPPORT HOUSEHOLD AND BUSINESS CUSTOMERS SO FAR WE HAVE CREATED 11 FACILITIES UNDER SECTION 133 OF THE FEDERAL RESERVES ACT, LIQUIDITY FUNDING ALL OF THESE FACILITIES HAVE BEEN UNDERTAKEN BY THE APPROVAL OF THE TREASURY SECRETARY AND MANY SUPPORTED BY FUNDING FROM THE CARES ACT I HAVE DISCUSSED THESE FACILITIES IN GREATER LENGTH IN MY WRITTEN STATEMENT WHICH I PROVIDED TO THE COMMITTEE AT THE FED, WE’RE COMMITTED TO TRANSPARENCY PUBLIC FAITH IN OUR OPERATIONS DEPENDS ON THAT TRANSPARENCY THANK YOU AND I’LL BE HAPPY TO ANSWER YOUR QUESTIONS >> THANK YOU, CHAIRMAN POWELL I’LL BEGIN WITH — WELL, I’LL BEGIN BUT, MR. CHAIRMAN AS YOU KNOW WITH REGARD TO THE MUNICIPAL FACILITY, THE THRESHOLDS FOR CITIES AND COUNTIES ARE ESTABLISHED BUT THEY ARE ESTABLISHED AT SUCH A LEVEL THAT MANY OF THE SMALL CITIES AND COUNTIES ACROSS THE UNITED STATES CANNOT APPLY FOR INDIVIDUAL LOANS YOU HAVE INDICATED THAT IT WOULD BE CONTEMPLATED THAT THE STATES BE ABLE TO APPLY FOR LOANS FOR THESE SMALLER CITIES AND COUNTIES AND THERE’S A LOT OF CONCERN OUT THERE ABOUT THIS I WOULD LIKE YOU TO ASK YOU TO CLARIFY THAT IT IS INTENDED THAT THESE DOLLARS REACH THESE SMALL CITIES AND COUNTIES AND TELL US THE PROCESS BY WHICH THAT CAN BE ACCOMPLISHED >> THANK YOU THANK YOU, MR. CHAIRMAN WE — AS YOU HAVE SEEN, WE HAVE BEEN GRADUALLY EXPANDING THE SCOPE OF POTENTIAL BORROWERS IN THIS ELDERLY WOULD THERE ARE 50,000 ENTITIES CAPABLE OF BORROWING WE NEED TO DRAW SOME LINES TO HANDLE THIS IN THE FIRST INSTANCE, WE HAVE SAID THAT WE WILL ALWAYS BE WILLING TO LEND TO A STATE AND ALLOW IT — WITH THE PURPOSE OF DOWNSTREAMING TO COUNTIES, CITIES, OTHER SUBDIVISIONS OF GOVERNMENTAL AUTHORITY WITHIN THAT STATE THAT IS ONE THING WE ALSO LOWERED THE SIZE OF THE CITY AND I WOULD TELL YOU, WE’RE CONTINUING TO LOOK AT WAYS TO ACCOMMODATE FURTHER BORROWERS, INCLUDING PERHAPS IN THE CASE OF STATES WITH RELATIVELY LOW POPULATIONS, WHERE THE ONLY BORROWER WITH ACCESS IS THE STATE GOVERNMENT IT ELF IS WE’RE LOOKING AT WAYS TO MAKE SURE THAT IN THOSE STATES THAT WE ADDRESS THE NEEDS OF POTENTIALLY ANOTHER BORROWER OR TWO AND THAT’S SOMETHING THAT WE WILL BE WORKING ONGOING FORWARD >> TO BE UTILIZED THROUGH THE

EXCHANGE STABILIZATION FUND TO HELP FACILITATE THE IMPLEMENTATION OF THESE SECTION 133 FACILITIES BY THE FEDERAL RESERVE MOST OF THAT HAS NOT YET PLAYED OUT, CORRECT? AM I CORRECT? >> SO THERE’S — OF THE 500 BILLION APPROXIMATELY 50 BILLION WAS IN DIRECT LENDING PROGRAMS FROM THE TREASURY AND 450 BILLION WAS AVAILABLE FOR THE 133 FACILITIES I HAVE ALLOCATED ABOUT HALF OF THAT LET ME BE CLEAR, I AM PREPARED TO ALLOCATE THE REST OF THAT THE ONLY REASON I HAVEN’T ALLOCATE TOUCHDOWN FULLY IS WE ARE JUST STARTING TO GET THESE FACILITIES UP AND RUNNING WE WANT TO HAVE A BETTER IDEA WHICH ONE OF THE FACILITIES NEEDS MORE CAPITAL, AS WELL AS THE POTENTIAL FOR ADDING ADDITIONAL FACILITIES I EXPECT TO ALLOCATE ALL OF THE CAPITAL GIVEN TO US >> SO THE LISTENING PUBLIC CAN BE CLEAR ABOUT THIS, THE WAY THAT THE FACILITIES WORK IS ONCE THE MONEY IS ALLOCATED AS YOU HAVE JUST INDICATED TO A PARTICULAR FACILITY AND THE FED IMPLEMENTS THAT FACILITY, THEN THAT MONEY CAN ACTUALLY BE LEVERAGED INTO MUCH GREATER AMOUNTS OF LIQUIDITY FOR WHATEVER MARKET OR SITUATION THAT IS ADDRESSED IS THAT CORRECT >> THAT IS CORRECT, DEPENDING UPON THE CREDIT RISK IT DEPENDS ON THE LEVERAGE WE HAVE ALLOCATED WITH THE EXISTING CAPITAL UP TO ABOUT 2.3 TRILLION IN EXISTING FACILITIES AND MR. CHAIRMAN, LET ME JUST MAKE A COMMENT THERE’S BEEN A LOT OF QUESTIONS WHETHER THE TREASURY IS WILLING TO TAKE RISK WITH THAT I WOULD SAY THE ANSWER IS ABSOLUTELY YES THE WAY THESE FACILITIES WORK IS IN THE FACILITIES THAT DON’T HAVE ANY CREDIT RISK, SUCH AS THE PPE, I APPROVE THOSE WITHOUT CAPITAL ALLOCATED WE DEFINITION, ANY FACILITY THAT THE FED BELIEVES PUTS THEM AT RISK, I DO PUT UP CAPITAL BY DEFINITION, THAT CAPITAL IS AT RISK AND WE ARE FULLY PREPARED TO TAKE LOSSES IN CERTAIN SCENARIOS ON THAT CAPITAL >> THANK YOU AND I HAVE JUST ABOUT 50 SECONDS LEFT AND I WANT TO STAY WITH THE TIME BUT COULD YOU — THERE HAVE BEEN SOME ALLEGATIONS THAT JUST BIG COMPANIES ARE BEING BENEFITED BY THESE FACILITIES COULD YOU QUICKLY ADDRESS THAT, SECRETARY MNUCHIN >> WELL, LET ME JUST COMMENT THE ANNOUNCEMENT OF THE CORPORATE BOND FACILITY, WITHOUT PUTTING UP ONE DOLLAR OF TAXPAYER MONEY UNLOCKED THE ENTIRE PRY MARRY AND SECOND REMARKET FOR CORPORATE BOPPEDS COMPANIES SUCH AS BOEING THAT I EXPECTED WOULD NEED TO BORROW FROM US ON A DIRECT BASIS WERE ABLE TO BORROW $25 BILLION IN THE PRIMARY MARKETS SO I WOULD SAY IN THE BEST CASE SCENARIO, THE MARKETS OPEN UP AND WE DON’T NEED TO USE THESE FACILITIES IN THE CASE OF THE MAIN STREET FACILITY, WE EXPECT IT TO HAVE A BIG IMPACT ON BOTH OF THE MARKETS >> THANK YOU VERY MUCH ACCEPT TORESENATOR BROWN >> KEPT THE COUNTRY RUNNING, THE ESSENTIAL WORKERS THAT WE PAY LIP SERVICE TO ARE OFTEN THE LOWEST WORKERS IN OUR ECONOMY WOMEN, DISPROPORTIONATELY BLACK AND BROWN WORKERS THEY PUT THEIR LIVES ON THE LINE TO KEEP OUR COUNTRY RUNNING THEY’RE STILL WORRIED ABOUT PAYING THE BILLS, STAYING AFLOAT AND STAYING HEALTHY MR. SECRETARY, DO YOU THINK THAT IS FAIR? >> MR. SENATOR, I APOLOGIZE DUE TO THE TECHNICAL ISSUES I DIDN’T HEAR THE BEGINNING OF YOUR QUESTION SO I HEARD DO I THINK THAT IS FAIR >> THE PEOPLE THAT WE CALL THE ESSENTIAL AND WE CALL OUT AND THANK, THOSE ESSENTIAL WORKERS ARE OFTEN THE LOWEST PAID WORKS THEY DO THE LAUNDRY, THEY’RE THE CUSTODIANS, THE SECURITY PEOPLE THEY PREPARE OUR FOOD THEY PUT THEIR LIVES ON THE LINE FOR VERY LOW WAGES AND THEY’RE STILL WORRIED ABOUT PAYING THE BILLS IS THAT FAIR? >> WELL, MR. SENATOR, I JUST WANT TO THANK ALL OF THE ESSENTIAL WORKERS, WHETHER IT BE THE HEALTH CARE PEOPLE >> THE THANKING — THANKING IS GREAT BUT THESE ARE PEOPLE — IS IT FAIR THAT OUR ECONOMY PAYS THE ESSENTIAL WORKERS SO LITTLE IN SUCH WORK CONDITIONS? >> MR. SENATOR, SOME OF THOSE PEOPLE ARE PAID LESS THAN OTHERS AGAIN, I — >> MY QUESTION IS, IS THAT FAIR? >> AGAIN, MR. SENATOR, I DON’T KNOW WHAT SPECIFIC WORKERS YOU’RE REFERRING TO >> I CAN LAY THEM ALL OUT I’LL TRY CHAIRMAN OF THE FEDERAL RESERVE CHAIRMAN, IS IT FAIR THAT THE WORKERS THAT ARE EXPOSING THEMSELVES TO THIS VIRUS, MAKING LOW WAGES, WE CALL THEM ESSENTIAL BY ALL OF OUR DEFINITIONS IS THAT FAIR? >> YOU KNOW, THOSE ARE WORKERS

WHO ARE IN BASICALLY IN THE SERVICE SECTOR THAT IS WHAT IS UNUSUAL ABOUT THIS IT IS ALL ABOUT THE SERVICE SECTOR PARTICULARLY THOSE PARTS OF THE SERVICE SECTOR WHERE THERE ARE LOTS AND LOTS OF IN-PERSON CONTACT THOSE TEND TO BE LOWER PAID WORKERS AND THE MOST AFFECTED I WOULD SAY ALL OF OUR EFFORTS ARE TO DO WHAT WE CAN TO HELP THOSE PEOPLE AND CREATE CONDITIONS SO THAT THEY WILL HAVE THE BEST POSSIBLE CHANCE TO GET BACK TO WORK >> SOME OF THE BEST THINGS YOU BOTH COULD DO IS TO SUPPORT PANDEMIC PAY FOR THESE WORKERS AND SUPPORT ANOTHER RECOVERY ACT THAT INCLUDES MORE DOLLARS FOR THESE LOW-PAID WORKERS WHO WE CONTINUE TO CELEBRATE AS ESSENTIAL MR. SECRETARY, WE PASSED THE CARES ACT TO HELP MILLIONS OF WORK HES WHO MAKE OUR COUNTRY WORK YOU SET UP CARES ACT PROGRAMS TO LEND TRILLIONS OF DOLLARS TO NOT CANS AM I RIGHT THAT YOU’RE NOT REQUIRING THE COMPANIES TO USE THE MONEY THEY BORROW TO KEEP THE WORKS ON THE PAYROLL >> MR. SENATOR, I AM FOLLOWING WHAT WAS THE EXACT LETTER AND SPIRIT OF THE LAW THAT WE NEGOTIATED WITH YOU AND OTHERS ON A BIPARTISAN BASIS IN SOME OF THESE FACILITIES, THERE ARE SPECIFIC REQUIREMENTS AND I ASSURE YOU THAT THE CHAIR AND I ARE ABSOLUTELY ENFORCING THOSE REQUIREMENTS AS REQUIRED IN BOTH THE LITERAL AND SPIRIT OF THE NEGOTIATIONS >> WELL, THAT WAS NICE SOUNDING WORDS BUT THE ADMINISTRATION IS WILLING TO SEND PEOPLE TO WORK WITHOUT REGARD FOR THEIR SAFETY BUT THE ADMINISTRATION IS UNWILLING TO MAKE SURE THAT THESE TRILLIONS OF DOLLARS IN TAXPAYER MONEY WILL HELP THESE WORKERS DIRECTLY SECRETARY MNUCHIN, LET ME GO SOMEWHERE ELSE PUBLIC HEALTH EXPERTS HAVE TOLD US IT IS NOT SAFE TO REOPEN THE ECONOMY UNTIL WE HAVE WORKER PROTECTIONS IN PLACE THAT WILL CONTROL THE SPREAD OF COVID THINGS LIKE TESTING, CONTRACT TRACING, PROTECTIVE EQUIPMENT, EFFORTS THAT THE PRESIDENT IS CLEARLY FAILED TO LEAD TO HELP OUR COUNTRY SECRETARY MNUCHIN, YOU SAID THERE IS CONSIDERABLE RISK OF NOT REOPENING KEEPING SOME BUSINESSES CLOSED COULD CAUSE PERMANENT ECONOMIC DAMAGE HOW MANY WORKERS WILL DIE IF WE SEND PEOPLE BACK TO WORK WITHOUT THE PROTECTION THAT THEY NEED, MR. SECRETARY >> SENATOR, WE DON’T INTEND TO SEND ANYONE BACK TO WORK WITHOUT THE PROTECTIONS I WAS PREPARED TO COME THERE TODAY I THOUGHT IT WAS SAFE TO TESTIFY AS A MATTER OF FACT I WAS ALREADY AT THE SENATE THIS MORNING WEARING A MASK AND I ASSURE YOU BOTH MYSELF AND EVERYBODY ON THE TASK FORCE, THE VICE PRESIDENT AND OTHERS ARE FOLLOWING THE BEST MEDICAL ADVICE AND I COULDN’T BE MORE PROUD OF THE MEDICAL ADVICE THAT WE’RE GETTING AND THE WAY THAT THE ECONOMY IS OPENING UP IN A SAFE WAY >> SO HOW MANY WORKERS SHOULD GIVE THEIR LIVES TO INCREASE OUR GDP BY HALF A PERCENT, THAT YOU’RE PUSHING PEOPLE BACK INTO THE WORKPLACE THERE’S BEEN NO NATIONAL PROGRAM TO PROVIDE WORKERS SAFETY THE PRESIDENT SAYS REOPEN SLAUGHTER HOUSES NOTHING ABOUT SLOWING THE LINE DOWN, NOTHING ABOUT GETTING PROTECTIVE EQUIPMENT IS — HOW MANY WORKERS SHOULD GIVE THEIR LIVES TO INCREASE THE GDP OR THE DOW JONES BY A THOUSAND POINTS >> NO WORKER SHOULD GIVE THEIR LIVES TO DO THAT I THINK YOUR CHARACTERIZATION IS UNFAIR WE HAVE PROVIDED ENORMOUS AMOUNT OF EQUIPMENTS WE HAVE WORKED WITH THE GOVERNORS AND DONE A TERRIFIC JOB — >> I’M NOT GOING TO LET YOU MAKE A POLITICAL SPEECH WHAT A GREAT JOB WE HEAR THAT FROM THE PRESIDENT IN THE NEWS CONFERENCES WHEN IN FACT THE COUNTRY OWE OAT PRESIDENT IS STILL NOT LED AN EFFORT TO SCALE UP TESTING HE HAS PLAYED STATE AGAINST STATE, HOSPITAL AGAINST HOSPITAL TO GET PROTECTIVE EQUIPMENT EVERYBODY IN THE COUNTRY, YOUR COMMENTS NOTWITHSTANDING KNOWS THAT CHAIR POWELL, YOU SAID LAST WEEK THE ADDITIONAL FISCAL SUPPORT COULD BE COSTLY BUT COULD HELP AVOID LONG-TERM ECONOMIC DAMAGE TO LEAD TO A STRONGER ECONOMY SO CONGRESS NEEDS TO THINK MORE ABOUT THE NATIONAL DEBT RIGHT NOW IT IS COSTLY TO PAY FOR OUR FAILURE TO ACT IN THE FUTURE IS THAT RIGHT, MR. CHAIRMAN >> AND IF YOU WOULD ANSWER QUICKLY, MR. CHAIRMAN >> THAT IS WHAT I SAID I SAID IT COULD BE THIS IS REALLY A QUESTION FOR CONGRESS TO WEIGH I WANTED TO CALLING OUT A RISK THERE WHICH WAS LONGER TERM DAMAGE TO THE ECONOMY THAT’S WHAT I WAS DOING I SAID WE MAY NEED TO DO MORE AND CONGRESS MAY AS WELL >> THANK YOU MR. CHAIRMAN, ONE BRIEF COMMENT THE ADMINISTRATION THINKS WE SHOULD PUT MORE WORKERS AT RISK TO JUICE THE STOCK MARKET THEY HAVEN’T COME UP WITH A BASIC PLAN FOR HOW TO PROTECT WORKERS WHEN THEY GO BACK TO WORK WHEN PRESIDENT TRUMP AND LEADER MCCONNELL WANT TO GIVE AWAY TRILLIONS IN TAX BREAKS TO BILLIONAIRES, THE PRICE TAG DIDN’T MATTER WHEN THAT HAPPENED A COUPLE YEARS AGO NOW WE NEED TO SPEND MONEY TO KEEP WORKERS SAFE IN SPITE OF THE COMMENTS OF SOME IN THE ADMINISTRATION AND SOME IN LEADERSHIP THANK YOU, MR. CHAIRMAN >> THANK YOU I THINK I WOULD DISAGREE WITH THAT CHARACTERIZATION AS WELL LET’S MOVE ON TO SENATOR TOOMEY >> MR. CHAIRMAN, THANKS FOR JOINING US THIS WAY

I JUST WANT TO FOLLOW UP ON THIS DISCUSSION ABOUT ADDITIONAL SPENDING AND REMIND EVERYBODY WHILE WE AUTHORIZED SOMETHING ON THE SCALE OF THREE TRILLION DOLLARS TO ROUND THINGS OFF OF DIRECT SPENDING AND LENDING AND THEN AUTHORIZED ANOTHER ROUGHLY THREE TRILLION DOLLARS, THAT COULD BE SIX TRILLION DOLLARS THAT IS LIKE 30% OF OUR ENTIRE ANNUAL ECONOMIC OUTPUT IN FACT ACTUALLY MORE THAN HALF OF IT HAS NOT ACTUALLY BEEN SPENT OR LENT SO I THINK YOU COULD MAKE A PRETTY STRONG CASE THAT BEFORE WE RUSH OUT AND DO ANOTHER SPENDING BILL, WE ACTUALLY LET SOME OF THIS STUFF GO TO WORK AND UNDERFAN THE CONSEQUENCES OF WHAT WE HAVE ALREADY DONE I APPRECIATE THE CHAIRMAN OBSERVING THAT HIS COMMENT, WHILE I THINK IT WAS OFTEN MISCHARACTERIZED CALLING ON CONGRESS TO PASS A NEW BILL, IT ACKNOWLEDGED AMONG OTHER THINGS THE POTENTIAL COST OF NEW SPENDING THE COMMENT YOU THAT MADE AT THE PETERSON INSTITUTE, MR CHAIRMAN, DO YOU STILL STAND BY THAT COMMENT? >> I DO I DO WOULD YOU LIKE ME TO EXPAND ON THAT, SENATOR? >> YOU KNOW, I THINK WE COVERED IT I APPRECIATE THAT LET ME MOVE ON TO FOLLOW UP ON SOMETHING THE SECRETARY SAID ABOUT ROPENING I THINK IT IS WORTH REMEMBERING WHY WE SHUT DOWN THE ECONOMY IN THE FIRST PLACE IT WAS A VERY SPECIFIC REASON THAT WAS TO PREVENT THE VIRUS FROM SPREADING SO RAPIDLY THAT SO MANY PEOPLE WOULD GET SICK SO QUICKLY THAT WE WOULD OVERWHELM OUR HOSPITALS IT HAS BEEN CLEAR FOR WEEKS THAT WE’RE NOT GOING TO OVERWHELM OR HOSPITALS CERTAIN NOT IN PENNSYLVANIA AND I KNOW NOT IN MOST OF THE COUNTRY AND SO I THINK IT IS ESSENTIAL THAT WE BEGIN THE PROCESS OF CAREFULLY, THOUGHTFULLY AND SAFELY REOPENING THE ECONOMY SECRETARY MNUCHIN, THE LONGER THAT WE CONTINUE A SHUTDOWN, WHEN WEEKS TURN INTO MONTHS, DOESN’T THAT NECESSARILY INCREASE THE RISK THAT SOME BUSINESSES WILL FAIL, SOME JOBS WON’T BE THERE TO GO BACK TO IF A LOCKDOWN AND A SHUTDOWN CONTINUES INDEFINITELY? >> THAT IS ABSOLUTELY THE CASE, MR. SENATOR THERE IS THE RISK OF PERMANENT DAMAGE AS I HAVE SAID BEFORE, WE’RE CONSCIOUS OF THE HEALTH ISSUES AND WANT TO DO IT IN A BALANCED AND SAFE WAY >> THANK YOU SO FOR — I GUESS FOR EITHER OF YOU ON THIS ONE, I WANT TO TALK ABOUT THE MAIN STREET PROGRAMS FIRST, GIVE US YOUR BEST ESTIMATE OF WHEN WE CAN EXPECT BORROWERS TO ACTUALLY BE ABLE TO ACCESS FUNDS FROM THESE PROGRAMS >> GO AHEAD SO ON MAIN STREET AND FRANKLY ON ALL OF THE OTHER FACILITIES WE EXPECT ALL OF THEM TO BE STOOD UP AND READY TO GO BY THE END OF THIS MONTH I DON’T SAY THAT IT WON’T BE A DAY OR TWO INTO JUNE, BUT THAT’S OUR EXPECTATION AND THE FUNDS SHOULD BE FLOWING DIRECTLY AFTER THAT >> AND VERY LEAVE BRIEFLY, WOULD IT BE POSSIBLE TO CHARACTERIZE THE REMAINING HURDLES THAT YOU HAVE TO GET OVER TO ACTUALLY BE OPERATIONAL >> SURE SO IT’S — ALL OF THEM ARE COMPLEX AND CHALLENGING MAIN STREET IS IN A CLASS BY ITSELF REALLY IT IS — IT IS NOT THE BOND MARKET, RIGHT THESE ARE SMALL AND MEDIUM SIZED COMPANIES THEY LIVE IN A WORLD OF BANK LENDING THAT IS A WORLD OF NEGOTIATED DOCUMENTS WE’RE TRYING TO ENTER THAT WORLD AND MAKE — MAKE LOANS TO QUALIFYING BUYERS SO WE SET UP, YOU KNOW, BIG OPERATIONS AT THE FEDERAL RESERVE BANK OF BOSTON AND HIRED SERVICE PROVIDERS AND DOING ALL OF THAT TO BE READY TO FACE OFF AGAINST ITS VERY DIVERSE SMALL, MEDIUM AND LARGE COMPANIES, ADMINISTRATORS WITH DIFFERENT CREDIT NEEDS SOME OF THEM ASSET BASED SOME CASH FLOW BASED PEOPLE ARE WORKING LITERALLY AROUND THE CLOCK AND HAVE BEEN FOR WEEKS TO GET IT READY BY THE END OF THIS MONTH >> THANK YOU FOR THAT I ALSO OBSERVED THAT ONE OF THE TERMS, ONE OF THE CONDITIONS OF THESE FACILITIES IS THAT THE BANKS WHO ARE ACTING AS LENDERS — BY THE WAY, I’M HOPING THAT NON-BANKS CAN PARTICIPATE AS WELL, BUSINESS DEVELOPMENT COMPANIES AND OTHERS I THINK WOULD BE EFFECTIVE CONDUITS FOR THE FUNDS BUT THE LENDER WILL BE REQUIRED TO KEEP SOME OF THE RISKS ON THEIR OWN BOOKS I’M WONDERING WHAT KIND OF REACTION YOU HAVE GET ENFROM LENDERS AND POTENTIAL BORROWERS WHAT KIND OF PARTICIPATION ARE YOU ANTICIPATING GIVEN THE WAY THAT THEY HAVE BEEN STRUCTURED >> THERE ARE THREE FACILITIES WE’VE HAD A LOT, A LOT OF OUTREACH TO BORROWERS, LENDERS, EVERYBODY GOING BACK OVER THE LAST COUPLE OF MONTHS AND FACILITIES WILL ATTRACT DIFFERENT LEVELS OF DEMAND WE’RE GETTING A GOOD DEAL OF INTEREST AND INQUIRY ON THEM WE WILL FIND OUT FAIRLY

QUICKLY YOU WILL KNOW THAT WE WILL BE CONTINUE TO ADAPT IF THE UPTICK IS NOT WHAT WE HAD HOPED, WE WILL TRY TO FIND WAYS TO ADDRESS THE NEEDS OF THIS AREA OF THE ECONOMY >> THANK YOU VERY MUCH THANKS, MR. CHAIRMAN >> THANK YOU SENATOR REID >> CHAIRMAN POWELL, THANK YOU FOR YOUR GREAT LEADERSHIP ALSO TO YOU’RE ECONOMY IT HAS BEEN ESTIMATED, FOR EXAMPLE, THERE ARE 20 MILLION JOBS IN THE STATE AND LOCAL GOVERNMENT THAT THEY ATTRIBUTE 8.5% OF THE NATIONAL GDP WE KNOW THEY ARE FACING DIRE ECONOMIC CIRCUMSTANCES 10% BUDGET LOSSES THIS YEAR 25% NEXT YEAR HOW LIKELY WILL IT BE FOR US TO HAVE ROBUST RECOVERY IF OUR STATES DO NOT RECEIVE ADDITIONAL AND FLEXIBLE FISCAL RELIEF NOT A LOAN FROM THE FED WHICH INCREASES THE LEVERAGE, BUT FISCAL GRANTS TO THE STATES? HOW ROBUST CAN OUR RECOVERY BE IF THIS IS OUT OF PLAY >> SENATOR, I DON’T WANT TO GET TOO INTO INDIVIDUAL FISCAL PROPOSALS I WILL ECHO THAT SOMETHING LIKE 13% OF THE WORKFORCE IS IN STATE AND LOCAL GOVERNMENT A LOT OF THE CRITICAL SERVICES THAT PEOPLE RELY ON DAY-TO-DAY ARE, YOU KNOW, PROVIDED AT THE STATE AND LOCAL LEVEL WITH BALANCED BUDGET AMENDMENTS THAT MEANS THE BALANCED BUDGET PROVISIONS AND STATE CONSTITUTIONS, THAT MEANS WHEN REVENUE GOES DOWN SHARPLY, IT CAN MEAN JOB CUTS AND SERVICE CUTS THOSE ARE IMPORTANT THINGS TO CONSIDER GOING FORWARD >> SECRETARY MNUCHIN, I WANT TO MAKE A COMMENT BECAUSE I MADE THIS COMMENT TO YOU REPEATEDLY THAT IS I DO BELIEVE THAT THE CORONAVIRUS RELIEF FUND THAT WE PASSED YOU DO HAVE THE FLEXIBILITY TO PROVIDE SUPPORT TO THE STATES WHEN IT COMES TO LOST REVENUE THIS LOST REVENUE WAS NOT ANTICIPATED IN THEIR BUDGETS FAR FROM THAT AND SECOND, IT IS DIRECTLY RELATED TO COVID VIRUS IF YOU GO TO MOST STATES, IT IS DIRECTLY RELATED I WOULD URGE YOU TO LOOK AS YOU HAVE DONE WITH PPE AND YOU HAVE TAILORED THAT SEVERAL TIMES, LOOK BACK AGAIN AND RECONSIDER THE ABILITY TO USE FLEXIBILITY IN THIS CORONAVIRUS RELIEF FUND SO THAT’S JUST A COMMENT, MR SECRETARY LET ME RETURN BACK TO CHAIRMAN POWELL CHAIRMAN POWELL, WE KNOW THAT OUR UNEMPLOYMENT WILL BE SOMETHING THAT WILL BE WITH US FOR A WHILE IT IS ABOUT 15% I HAVE SEEN ESTIMATES OF 20 TO 25% NEXT YEAR YET OUR UNEMPLOYMENT INSURANCE PROGRAMS ARE KEY TO A DATE THEY WILL END AT A CERTAIN TIME DO YOU THINK IT IS IMPORTANT FOR US TO HAVE THE CONFIDENCE AND GIVE CONFIDENCE TO PEOPLE THAT THEY CAN STILL RECEIVE FUNDS LIKE THIS EVEN IF THE DATA, THE ECONOMY IS IN DISARRAY, DON’T THEY NEED THAT CERTAINTY SO WE WOULD HAVE TO BUILD IN SOME TYPE OF TEST — NOT A DATE BUT A TEST FOR UNEMPLOYMENT COMPETITION >> SENAOR, AGAIN, THAT’S A QUESTION ABOUT A SPECIFIC FISCAL POLICY AND THAT REALLY FALLS TO YOU YOU KNOW, WE TRY NOT TO GET INTO TOO MANY SPECIFICS I WILL SAY THOUGH THAT THE RISK THAT I CALLED OUT LAST WEEK AND I’VE BEEN CONCERNED ABOUT AND OTHERS HAVE IS THAT LONG PERIODS OF UNEMPLOYMENT CAN REALLY AFFECT PEOPLE’S ABILITY TO GO BACK TO WORK BECAUSE THEY LOSE THEIR NETWORKS, THEIR SKILLS, THEY LOSE CONTACT WITH JOBS MARKETS ANYTHING THAT KEEPS PEOPLE IN TACT IS PROBABLY — HOPEFULLY IN THEIR JOB IN THE MEANTIME KEEP THEM OUT OF SOLVENCY THOSE ARE APPROPRIATE THINGS FOR YOU TO LOOK AT >> THANK YOU JUST A FINAL POINT, CHAIRMAN POWELL I THINK WE’RE MISSING THE BOAT ONCE AGAIN THIS IS SORT OF LIKE DEJA VU I WAS HERE IN 2008, 2009, 2010 WE LEAPED IN TO HELP THE MORTGAGE MARKET WITH BOTH FEET BUT WE DIDN’T HELP PEOPLE AVOID FORECLOSURE IT SEEMS TO ME THAT THAT IS WHAT WE WILL DO AGAIN UNLESS WE HAVE A FISCAL PROGRAM THAT PROVIDES RESOURCES TO KEEP PEOPLE IN THEIR HOMES WHEN THEY CAN’T PAY THEIR RENT, WHEN THEY MISS THEIR MORTGAGE PAYMENTS, THAT WILL PUT PRESSURE ON THE MORTGAGE COMMUNITY AND YOU AND THE FED AND THE TREASURY WILL RUSH TO HELP WALL STREET WILL GET THE HELP MAIN STREET WILL BE LEFT BEHIND IT WILL BE AS IT WAS IN 2008, 2009, 2010 THOUSANDS AND THOUSANDS OF PEOPLE WITHOUT HOMES AND ANY ECONOMIC RECOVERY WILL

BE SLOWED BY PEOPLE IN THOSE CONDITIONS SO I WOULD JUST ASK WHETHER YOU CONSIDER THIS FISCAL RESPONSE TO THE CORE PROBLEM, PEOPLE CAN’T PAY THEIR RENT, THEY CAN’T PAY THE MORTGAGE IS PROBABLY THE BEST RESPONSE RATHER THAN FILLING IN LATER >> I THINK YOU’RE RIGHT FORECLOSURE — WAVES OF FORECLOSURE CAN UNDERMINE HOUSEHOLD FINANCES OBVIOUSLY AS A RESULT, BAD HOUSEHOLD FINANCES ARE TROUBLED SO — OF COURSE IN THIS CASE, THERE HAS BEEN SOME SIGNIFICANT FORBEARANCE ON THAT AND I THINK, YOU KNOW, THAT’S SOMETHING TO CONTINUE TO CONSIDER >> THANK YOU VERY MUCH, MR CHAIRMAN THANK YOU CHAIRMAN PAUL AND CHAIRMAN >> SENATOR SCOTT >> THANK YOU TO THE CHAIRMAN AND THE PANEL FOR BEING WITH US THIS MORNING REALLY IMPORTANT TIME IN OUR COUNTRY THERE IS NO DOUBT THAT THE GLOBAL PANDEMIC HAS REALLY SHOCKED THE WORLD AND FRANKLY SHUTTERED A LOT OF BUSINESSES BECAUSE OF THE PAYCHECK PROTECTION PROGRAM, I THINK THE TWO TRANCHES OF THE PAYCHECK PROTECTION PROGRAM HAS SAVED, FROM MY UNDERSTANDING, SOMEWHERE NEAR $50 MILLION THE FIRST $30 MILLION THE SECOND 20 MILLION JOBS AND WE STILL HAVE ABOUT $100 BILLION LEFT THAT WE CAN DEPLOY INTO OUR COMMUNITIES WITH THAT SAID, THINKING ABOUT THE BACK DROP OF $100 BILLION LEFT IN THE TRIPLE P, MR SECRETARY I THINK YOU KNOW I FEEL REALLY PASSIONATE ABOUT HELPING THE UNDERSERVED COMMUNITIES, IN SOUTH CAROLINA OR WEST VIRGINIA IN SOME OF THE RURAL PARTS OF WEST VIRGINIA VERY OFTEN SMALL AND MINORITY BUSINESSES ARE THE LIFE BLOOD IN THOSE SMALL RURAL COMMUNITIES AND FRANKLY WE HAVE THE MINORITY BUSINESS DEVELOPMENT AGENCY THAT HAS DONE A REALLY GOOD JOB OF HELPING TO DEPLOY SOME OF THE RESOURCES FROM THE TRIPLE P INTO THOSE UNDERSERVED COMMUNITIES MY QUESTION IS HOW CAN WE USE THE MBDA OR SOME OTHER MECHANISM TO GET MORE OF THOSE RESOURCES IN OUR RURAL COMMUNITIES OR FRANKLY IN OUR INNER CITY COMMUNITIES WHERE PERHAPS THE PAYCHECK PROTECTION PROGRAM HAS BEEN MORE INTIMIDATING FOR SMALLER BUSINESSES LIKE BARBERSHOPS AND BEAUTY SALONS, SOME OF THE RURAL GAS STATIONS THAT MAY NOT HAVE THE BANKING RELATIONSHIP THAT WAS NECESSARY AT THE BEGINNING OF THE PROGRAM OR THEY’RE 1099 WHICH MEANT THAT THEY HAD TO WAIT A WEEK TO GET INTO CYCLE? HOW CAN WE HELP THOSE ORGANIZATIONS AND AGENCIES LIKE THE MBDA ACTUALLY PROVIDE THE MARKETING SO THAT MORE PEOPLE UNDERSTAND THE BENEFITS AND THEY UNDERSTAND THE PROGRAM OF THE TRIPLE P? MR. SECRETARY >> WELL, SENATOR SCOTT, FIRST OF ALL THANK YOU BECAUSE WE APPRECIATE THE WORK THAT YOU HAVE DONE WITH US ON THIS ISSUE ALREADY AND WE WILL CONTINUE TO WORK WITH YOU AND OTHERS ONE OF THE THINGS THAT WE ARE REPLEASED ABOUT THE ADDITIONAL MONEY IS THAT THE AVERAGE LOAN SIZE HAS COME DOWN CONSIDERABLY I THINK WE ALL HAD CERTAIN CONCERNS HOW LARGER COMPANIES WERE PRIORITIZED I I BELIEVE THAT HAS BEEN CORRECTED NOW I HAVE PLEASED THAT WE GOT SOLE PROPRIETOR OTHERS AND OTHERS INTO THE PROGRAM WE STILL HAVE A SIGNIFICANT AMOUNT OF MONEY LEFT WE ARE VERY MUCH WILLING TO CONSIDER THE BIPARTISAN REQUEST OF RESERVING MONEY FOR CDFIs AT THE END TO MAKE SURE THAT THE UNDERSERVED COMMUNITIES ARE PROPERLY SERVED IN THIS PROGRAM THANK YOU >> THANK YOU, MR. SECRETARY ONCE AGAIN, LET ME JUST SAY TO YOU SINCE I CAN SEE YOU ON THE SCREEN, YOU HAVE DONE A FABULOUS JOB UNDER INTENSE PRESSURE AND WITHOUT ANY QUESTION AMERICA RECOGNIZES THE VALUABLE SERVICE THAT YOU HAVE PROVIDED TO OUR COUNTRY I AM PERSONALLY THANKFUL FOR YOUR ACCESSIBILITY UNDER PRESSURE YOU STILL HAVE BEEN VERY RECEPTIVE AND RESPONSIVE AND THAT IS TO SAY A LOT UNDER THE CURRENT CONDITIONS SO THANK YOU VERY MUCH ON THAT AND I HEARD CHAIR POWELL TALK ABOUT FORBEARANCE QUICKLY THERE THIS IS AN ISSUE THAT CONTINUES TO GROW IN IMPORTANCE AND REALLY IN URGENCY, WHETHER IT IS A SMALL BUSINESS, WHETHER IT IS THE RESIDENTIAL MARKET OR COMMERCIAL MARKET ONE CONCERN THAT I HAVE IS COMMERCIAL MORTGAGE BACKED SECURITIES THERE ARE A NUMBER OF SHOPPING CENTERS IN SOUTH CAROLINA AND FRANKLY THROUGHOUT THE COUNTRY, HAVING SPOKEN TO SOME OF THE FOLKS WHO LOVE THOSE SHOPPING CENTERS, LIKE 20% TO 22% OF THE FOLKS ARE ABLE TO PAY THEIR REPRESENT, WHICH MEANS THAT WE’RE LOOKING AT A DOMINO EFFECT IN THE MORTGAGE MARKET, WHETHER IT IS COMMERCIAL AND FRANKLY RESIDENTIAL THE SAME — THE SAME CONCERN I’M NOT IF SURE WHAT THE ANSWERS ARE

CERTAINLY IT IS EITHER FORBEARANCE OR FRANKLY BANKRUPTCY FOR MANY FIRMS WHAT SHOULD WE EXPECT FROM THE FED AND THE TREASURY WHEN IT COMES TO MORE LIQUIDITY IN THE MARKET? I DON’T KNOW THERE IS A SILVER BULLET I DON’T SIGH A PANACIA WHAT DO YOU RECOGNIZE I SHOULD TELL MY CONSTITUENTS ON THIS VERY IMPORTANT ISSUE >> THAT DID HELP KEEP THE MARKET FUNCTIONING IN ADDITION LEGACY SMBS ARE ELIGIBLE FOR OUR ASSET BACKED SECURITY IT IS AN IMPORTANT MARKET WE CONTINUE TO MONITOR IT YOU KNOW, THE 133 FACILITY IS A LENDING FACILITY AND THAT’S THE TOOL WE HAVE NOT EVERY PROBLEM CAN BE SUCCESSFULLY ADDRESSED WITH SUCH A FACILITY BUT WHERE IT CAN BE, WE’RE WILLING TO TAKE A HARD LOOK >> OKAY THANK YOU MR. SECRETARY, ANYTHING TO ADD TO THAT, SIR? >> QUICKLY, PLEASE >> AGAIN, I WOULD ADD WORKING WITH THE FANNIE MAY AND WORKING WITH THE FED ON THE SECURITIZATION SIDE UNFORTUNATELY THEY HAVE CERTAIN LIMITATIONS WE CONTINUE TO DO THIS THANK YOU >> THANK YOU, MR. CHAIRMAN I MAY BE OVER MY TIME I CAN’T SEE THE CLOCK I ASSUME THAT I HAVE FIVE MORE MINUTES LEFT >> I’VE BEEN TRYING TO TAP I’M NOT SURE THAT EVERYBODY IS HEARING THE TAPS I’LL DO SOMETHING LOUDER >> THANK YOU, SIR >> THANK YOU SENATOR MENENDEZ >> STATE AND LOCAL GOVERNMENTS ARE FACING UNPRECEDENTED BUDGET CHALLENGES WE’RE LOOKING AT AN ENORMOUS WAVE OF SHORTFALLS ABOUT TO CREST THAT WILL LEAD TO A DEVIL’S COCKTAIL OF DEVASTATING LAYOFFS, DANGEROUS CUTS TO PUBLIC SAFETY, AND ESSENTIAL SERVICES AND MASSIVE LOCAL TAX INCREASES ANY ONE OF THOSE INGREDIENTS ALONE THREATENS TO MAKE THIS ECONOMIC CRISIS EVEN WORSE AND THE COMBINATION OF ALL THREE IS ALMOST UNTHINKABLE THE BUREAU OF LABOR STATISTICS JUST REPORTED THAT STATE AND LOCAL GOVERNMENTS LAID OFF NEARLY ONE MILLION WORKERS IN THE MONTH OF APRIL THAT’S ONLY ONE MILLION FIREFIGHTERS, POLICE OFFICERS, TEACHERS, EMERGENCY HEALTH PERSONNEL THAT SHOULD BE ON THE FRONT LINES OF THE PUBLIC HEALTH CRISIS BUT ARE SIDE LINED INSTEAD SO CHAIRMAN POWELL, LET ME JUST START BY ASKING, DO YOU AGREE THAT OUR ECONOMY WILL GET WORSE IF STATE AND LOCAL GOVERNMENTS ARE FORCED TO LAY OFF EVEN MORE FIREFIGHTERS, POLICE OFFICERS, TEACHERS, AND EMERGENCY HEALTH PERSONNEL? >> WE HAVE A LIQUIDITY FACILITY THERE TO ADDRESS THE SHORT TERM NEEDS THAT THESE ENTITIES HAVE BECAUSE OF THEIR LOSS OF REVENUE DUE TO THE EFFECTS OF THE PANDEMIC THAT IS REALLY TH TOOL THAT WE HAVE TO — >> I APPRECIATE THAT I APPRECIATE THAT THAT’S NOT MY QUESTION MY QUESTION IS, IF STATES, COUNTIES, MUNICIPALITIES CONTINUE ON THE PATH TO LAY OFF — YOU KNOW, WE HAVE A MILLION LAID OFF, EVEN MORE JUST FROM A FISCAL — FROM AN ECONOMIC SITUATION, DOESN’T THAT MAKE THE ECONOMIC RECOVERY EVEN WORSE? >> ESSENTIALLY YES, SENATOR WE HAVE THE EVIDENCE OF THE GLOBAL FINANCIAL CRISIS IN THE YEARS AFTERWARDS WHERE STATE AND LOCAL GOVERNMENT LAYOFFS AND LACK OF HIRING DID WEIGH ON ECONOMIC GROWTH >> WELL, ONE OF THE TOOLS THAT WE HAVE TO ALLEVIATE THIS PROBLEM IS BY USING THE MONEY CONGRESS PROVIDED IN THE CARES ACT TO BRING DOWN BORROWING COSTS FOR THE STATE AND LOCAL GOVERNMENTS TO SET THE STAGE FOR A STRONG RECOVERY I WAS GLAD TO SEE THE FEDERAL RESERVE SUPPORT LOCAL GOVERNMENTS THROUGH THE LENDING FACILITY FRANKLY I DON’T THINK IT IS ENOUGH IN A LETTER THAT I, SENATORS TILLIS, BROWN AND NEVER KAWASAKI SENT TO YOU AND SECRETARY MNUCHIN LAST WEEK WE CALLED ON THE FED TO ESTABLISH ANOTHER FACILITY, ONE THAT WOULD PURCHASE MEDIUM AND LONG- TERM MUNICIPAL BONDS FROM ISSUERS AS WELL AS ON THE SECONDARY MARKET AND THEREBY ENSURE THE STATE AND LOCAL GOVERNMENTS CAN CONTINUE TO FINANCE KEY PUBLIC SERVICES AND INVEST IN INFRASTRUCTURE IN OTHER AREAS TO JUMP START OUR ECONOMY AND GET AMERICANS BACK TO WORK WILL YOU COMMIT TO WORK ON THAT PROPOSAL THAT THE SENATORS SENT TO YOU? >> YES WE WILL TAKE A LOOK AT THAT, SENATOR I WILL SAY, THOUGH, THAT OUR GENERALLY WITH 133, WHAT WE’RE TRYING TO DO IS ADDRESS LIQUIDITY NEEDS THOSE ARE LONGER TERM FUNDING NEEDS NOTWITHSTANDING THAT, WE ARE TAKING A LOOK >> I APPRECIATE THAT

IN A SPEECH LAST WEEK, MR CHAIRMAN, YOU SAID, QUOTE, ADDITIONAL FISCAL SUPPORT COULD BE COSTLY, BUT WORTH IT IF IT HELPS AVOID LONG-TERM ECONOMIC DAMAGE AND LEAFS US WITH A STRONGER RECOVERY THE TRADEOFF IS OUR FOR ELECTED REPRESENTATIVES AND I AGREE THE HIT TO OUR STATES, CITIES AND COUNTIES IS TREMENDOUS NOT JUST SPECIFIC TO MY STATE OF NEW JERSEY PROJECTIONS RELEASED REVEALED THAT EVERY STATE IN THE NATION IS ALREADY OR WILL SOON FACE HISTORIC BUDGET SHORTFALLS JUST TO PICK A FEW EXAMPLES THEY FOUND THAT OHIO AND ARIZONA ARE EACH FACING A FISCAL SHOCK TOTALING ABOUT 20% OF THEIR ENTIRE STATE BUDGET WEST VIRGINIA IS EVEN WORSE FACING A 40% FISCAL SHOCK LIKE YOU SAID, THE FED CAN’T BE EXPECTED TO SOLVE ALL OF OUR PROBLEMS YESTERDAY I INTRODUCED SMART ACT WHICH IS A BIPARTISAN THREE REPUBLICANS THREE DEMOCRATS TO PROVIDE $500 BILLION IN DIRECT SUPPORT TO OUR STATE AND LOCAL GOVERNMENTS IT IS THE FIRST BIPARTISAN BILL OF ITS KIND IN THE SENATE AND I THINK WHEN WE HAVE COLLEAGUES FROM MISSISSIPPI, LOUISIANA, AND MAINE ON THE REPUBLICAN SIDE, IT IS NOT A PARTISAN ISSUE WOULD THAT BE THE TYPE OF SOLUTION THAT CAN GET US BACK IN TERMS OF THE STATES INTO FISCAL RECOVERY >> SENATOR, I — WE TRY TO STICK TO OUR KNITTING OVER HERE WE HAVE DONE WHAT WE CAN WITH THE FACILITY THOSE ARE FOR ELECTED REPRESENTATIVES >> A LOT OF MY HJORTH OWNED BUSINESSES ARE NOT GETTING ACCESS TO THE PAYCHECK PROTECTION PROGRAM AS WE IN CONGRESS HAS INTEND I HOPE YOU WILL BE RECEPTIVE TO GIVE GREATER ACCESS TO THESE PROGRAMS AND TO THE LENDING FACILITIES SUCH UP ON THE CARES ACTS SO THESE FUNDS CAN REACH BUSINESSES AND LOW INCOME AND UNDERSERVED AREAS OF OUR OUNTRY IT IS JUST STILL NOT HAPPENING AND I URGE, SECRETARY HAS BEEN RECEPTIVE ABOUT THIS I WOULD URGE YOU, MR. CHAIRMAN, TO BE RECEPTIVE AS WELL >> YOU IT WE WILL MOVE TO SENATOR SASS WHO WILL BE WITH US BY TELEPHONE I WILL TAP AT 30 SECONDS LEFT OF YOUR FIVE MINUTES YOU CAN PROCEED >> THANK YOU, CHAIRMAN AND GENTLEMEN I’M IN THE HALL WAVE A JUDICIARY COMMITTEE MEETING I DON’T HAVE THE ZOOM CAPABILITY HERE I WANT TO ASK ABOUT THE RECENT CYBER ATTACKS WE HAVE OBVIOUSLY SEEN AN INCREASE IN SCHEMES DIRECTED AT FINANCIAL INSTITUTIONS THAT HAVE BEEN ACTIVE IN TRYING TO HELP WITH CORONA RESPONSE I’M JUST CURIOUS IF YOU HAVE ANY UPDATE FOR US ON THE CYBER SECURITY ACTS THAT WE SEE IN THE SPACE? >> WELL, I WOULD JUST COMMENT ON THAT THAT WE HAVE A DEPARTMENT WITHIN TREASURY THAT IS ACTIVELY WORKING ON ALL OF THESE ISSUES AND COORDINATES AND MAKES SURE THAT OUR INFRASTRUCTURE I WILL JUST GIVE A PITCH FOR OU’RE SECRET SERVICE BILL OF MOVING THE SECRET SERVICE BACK TO THE TREASURY THE ISSUES I THINK THEY CAN HELP WITH ARE ON THE CYBER RELATED ISSUES I CAN ASSURE YOU THAT WE HAVE ALL OF THE RESOURCES WORKING ON THIS JOINTLY AND TAKE IT VERY SERIOUSLY >> THE INSTITUTIONS THAT DON’T HAVE THE SCALE TO HAVE HUGE CYBER DEFENSES ON THEIR OWN WHEN WE SEE FOR ENACTORS DOING STUFF LIKE THIS, IT IS OBVIOUSLY CRITICAL THAT WE VIEW THIS AS A WHOLE OF SOCIETY PROBLEM NOT JUST THE INSTITUTIONS ALONE THANK YOU FOR YOUR PLEDGE TO KEEP LOOKING ATHE THAT CHAIRMAN POWELL, THE FED HAS DONE A SERIES OF ANNOUNCEMENTS OVER THE LAST TWO MONTHS OVER THE 133 LENDING FACILITIES THE ANNOUNCEMENT OF APRIL 9th, THE FED ANNOUNCED THAT THE TERM ASSET BACKED LOAN FACILITY WOULD BE EXPANDED TO INCLUDE COMMERCIAL BACKED SECURITY AS WELL AS LOAN OBLIGATIONS THE WALL STREET JOURNAL DESCRIBED THAT EXPANSION AS, QUOTE, THE FED WILL IN EFFECT BE BUYING THE WORST SHOPPING MALLS IN THE COUNTRY AND SOME OF THE MOST INDEBTED COMPANIES, CLOSED QUOTE CAN YOU GIVE US YOUR CHARACTERIZATION OF THIS EXPANSION AND ARE THEY RIGHT ABOUT THE RISK LEVELS WITH SOME OF THE COMMERCIAL PROPERTIES OBVIOUSLY AS AMERICA GOES THROUGH THIS EXPERIENCE OF CORONA TIME, LOTS AND LOTS OF PEOPLE ARE NOT JUST DOING TELECOMMUTING AND DISTANCING FOR THE PRESENT, BUT WE SEE IN SILICON VALLEY LOTS OF COMPANIES PLANNING TO MIGRATE THE LONG-TERM STRATEGY I IMAGINE THAT IS WHAT WE WILL SEE FOR COMMERCIAL PROPERTY ACROSS AMERICA THE TAXPAYER SHOULD NOT BE ON THE HOOK FOR FLOODING INTO THAT SPACE

CAN YOU HELP US UNDERSTAND HOW YOU WOULD RESPOND TO THE WALL STREET JOURNAL’S ARGUMENT >> WE ARE SUPPORTING ASSET BACKED SECURITIES BROADLY WHICH THAT IS CONSUMERS THAT, IS CAR LOANS, THAT IS CREDIT CARD LOANS, THINGS LIKE THAT IN ADDITION TO THE CMPS THAT YOU MENTIONED, WE ARE ONLY BUYING THE TRIPLE-A RATED PIECE AND ONLY WITH A GOOD SIZE HAIRCUT SO THE CREDIT RISK IS ACTUALLY VERY, VERY LOW ON THIS — ON THIS TO US THE SAME IS TRUE OF THE CLOs >> THAT’S HELP L. THE TRIPLE-A POINT THANKS, CHAIRMAN SECOND MNUCHIN, I WANT TO GO BACK TO SOME CHINA IP ISSUES THAT WE HAVE DISCUSSED BEFORE OBVIOUSLY THE CHINESE GOVERNMENT HAS BEEN STEALING AMERICAN INTELLECTUAL PROPERTY FOR DECADES WHILE WE HAVE INDICTED COMPANIES AND INDIVIDUALS FOR CYBER ESPIONAGE AND SOME OF THE THEFT OF THE INTELLECTUAL PROPERTY, WE RARELY SEE FOR THE CRIMES THE CFO FOR A LONG LIST OF CRIMES FROM MONEY LAUNDERING BUT WE HAVEN’T PLACED ANY SANCTIONS ON HUAWEI THAT IS FELT HOW DO YOU AND THE TREASURY DEPARTMENT ASSESS THE COST AND AND OBVIOUSLY ARE NOT REALLY PRIVATE SECTOR COMPANIES THEY BUILT THE BUSINESS SIDE, SORT OF OSTENSIBLY, PRIVATE SECTOR SIDE OF THEIR ORGANIZATION BY STEALING IP, BUT THE BACK END OF HUAWEI IS OBVIOUSLY HOOKED IN, NOT JUST TO THE COMMUNIST PARTY, BUT TO MILITARY INTELLIGENCE WHY DO WE CONTINUE TO TREAT THESE, QUOTE/UNQUOTE COMPANIES AS IF THEY’RE REALLY PRIVATE SECTOR? WHERE DO YOU COME IN ON THE COST BENEFIT ANALYSIS ON UTILIZING SANCTIONS? >> WELL, I THINK AS A MATTER OF POLICY, YOU KNOW, AND I’VE SAID THIS BEFORE, I DON’T COMMENT ON FUTURE SANCTIONS ACTIONS, NOR DO I COMMENT ON SPECIFIC SANCTIONS ON SPECIFIC COMPANIES, ALTHOUGH I WILL TELL YOU THAT THE ISSUES RELDED TO HUAWEI, WE DO DISCUSS ON AN INTERAGENCY BASIS AND DO COORDINATE I WOULD ALSO JUST COMMENT THAT I’VE WORKED VERY CLOSELY WITH AMBASSADOR LIGHTHIZER OBVIOUSLY ON THE CHINA AGREEMENTS AND FORCED TECHNOLOGY TRANSFER IS A MAJOR ISSUE THAT WE’VE BEEN COMBATING >> WE’VE HEARD GOVERNMENT ADMINISTRATIONS FOR TWO DECADES TALK ABOUT AGREEMENTS THAT ARE EVENTUALLY GOING TO HAVE TEETH, AND THEY ALMOST NEVER DO AMBASSADOR LIGHTHIZER HAS BEEN A BIT OF A PIT BULL ON THIS PIECE OF IT, BUT DISCUSSING IT IN THE INTERAGENCY PROCESS ISN’T REALLY THE SAME AS US PUSHING TO HELP HUAWEI AND THEIR STATE-BASED BACKERS UNDERSTAND THAT IP THEFT HAS REAL CONSEQUENCES, NOT JUST PRESS RELEASES SO I’M GLAD THAT IT’S A TOPIC FOR INTERAGENCY DISCUSSION, BUT I WOULD JUST SAY, AND I KNOW THAT THE CHAIRMAN’S GAVEL THERE IMPLIES I’M AT TIME, BUT I WOULD JUST SAY IN THE INTELLIGENCE COMMUNITY OVERSIGHT COMMITTEE OF THE COMMUNITY IN THE LEGISLATURE, THIS IS AN INCREASINGLY BIPARTISAN ISSUE THAT REPUBLICANS AND DEMOCRATS BELIEVE THAT IT’S IMPORTANT FOR US TO BE HOLDING THESE FAUX PRIVATE SECTOR COMPANIES IN CHINA TO MORE ACCOUNT AND THAT THE GOVERNMENT MEANS IT, YOU KNOW, NOT EVENTUALLY SOMEBODY IS GOING TO COME UP THE STAIRS IF YOU KEEP STEALING IP, AND THEY CONTINUE TO DO IT FOR WHAT IT’S WORTH, I THINK THE ARTICLE I PERSPECTIVE HERE ON AN INCREASINGLY BIPARTISAN BASIS IS SERIOUS CHAIRMAN >> THANK YOU, SENATOR TESTER >> THANK YOU, CHAIRMAN RANKING MEMBER BROWN I WANT TO THANK BOTH SECRETARY MNUCHIN AND CHAIRMAN POWELL FOR BEING ON THE CALL TODAY WE’VE ALL SEEN WHAT’S TRANSPIRED OVER THE LAST COUPLE OF MONTHS AS FAR AS INSPECTORS GENERAL GOES MY QUESTION QUITE SIMPLE CAN I GET BOTH OF YOUR COMMITMENTS THAT IF AN IG SUBMIT AS REQUEST TO YOU THAT YOU WOULD PROVIDE ANY INFORMATION TO THEM AND DO SO IN A TIMELY MANNER? >> YES >> YEAH >>GOOD SO SECRETARY MNUCHIN, CAN YOU TELL ME HOW FROM YOUR PERSPECTIVE, HOW ACTIVE IS THE CONGRESSIONAL OVERSIGHT COMMISSION BEEN? >> I’VE SEEN THE RECENT REPORT I CAN’T COMMENT ON WHAT MEETINGS THEY’VE HAD OR WHAT THEY HAVE DONE ON THAT >> OKAY OKAY AND YOU GUYS, I WOULD ASSUME, COMPLY WITH ANY REQUESTS THEY MAKE, CORRECT? >> I SEE NO REASON WHY WE WOULDN’T >> OKAY WELL, JUST — IT’S JUST — I MEAN, I VALUE THAT, AND I APPRECIATE THAT FROM BOTH OF YOU I THINK THE PRESIDENT HAS A BIT OF A DIFFERENT OPINION, AND I SAY THAT BY WHAT HE’S SAID, NOT BY WHAT I THINK ABOUT THE VALUES OF THE INSPECTORS GENERAL SECRETARY MNUCHIN, DO YOU THINK IT IS RIGHT TO BE ABLE TO

REMOVE PUBLIC SERVANTS THAT THEIR JOB IS INDEPENDENCE OF HOLDING THE GOVERNMENT ACCOUNT? >> I THINK THAT IF YOU’RE REFERRING TO THE REMOVAL OF THE IG, AGAIN, WHICH I ONLY KNOW FROM — >> YEAH >> — I’VE HEARD THE PRESIDENT SAY, YES, THAT’S WITHIN HIS AUTHORITY >> EVEN IF THEY’RE DOING THEIR JOB? >> AGAIN, THAT’S AN APPOINTED POSITION HE HAS THE RIGHT TO WITHDRAW IT, JUST AS HE’S NOMINATED A NEW SPECIAL INSPECTOR GENERAL TO WORK WITH THE CARES ACT WHICH WE LOOK FORWARD TO THE SENATE CONFIRMING SO WE CAN WORK WITH THAT PERSON >> I HAVE A TOTALLY DIFFERENT PERSPECTIVE ON THAT I WILL TELL YOU WHY I KNOW HE HAS THE ABILITY TO REMOVE ANYBODY, INCLUDING YOURSELF, AND I WOULD SAY THAT IF YOU’RE DOING YOUR JOB, IN THIS CASE THE INSPECTORS GENERAL DOING ON AN INDEPENDENT BASIS, I THINK IT’S JUST — I THINK IT’S A CLEAR MISUNDERSTANDING OF THE THREE BRANCHES OF GOVERNMENT SO I TALKED TO YOU A LITTLE BIT ABOUT REPORTING TO THE IGs, AND I WILL TELL YOU I LEARNED SOMETHING ON TODAY’S CALL I DIDN’T KNOW BEFORE THAT ALMOST — NEARLY HALF, THIS IS BY SENATOR TOOMEY OF THE DOLLARS THAT WE’VE ALLOCATED, THE $3 TRILLION HAS NEITHER BEEN SPENT NOR LENT SO CAN YOU GUYS — WE NEED MORE TRANSPARENCY ON THESE PROGRAMS, AND I THINK YOU WOULD AGREE WITH THAT WHEN CAN WE SEE FULL INFORMATION ABOUT WHO’S GETTING THE DOLLARS? >> WELL, LET ME JUST COMMENT, WHEN WE NEGOTIATED THIS BIPARTISAN DEAL, WE AGREED TO UNPRECEDENTED TRANSPARENCY SO WE AGREED TO RELEASE THINGS THAT ARE NOT REQUIRED BY 13-3, SO I DON’T KNOW WHY YOU EVEN SEEN THAT EVERYTHING IS POSTED ON OUR WEBSITE OR THE FED’S WEBSITE WE TAKE GREAT PRIDE IN THE TRANSPARENCY THAT WE’VE PROVIDED, AND WE’VE AGREED TO AS PART OF THE CARES ACT >> SECRETARY, YOU’RE SAYING THAT THE INFORMATION ABOUT WHO’S GETTING THE DOLLARS AND WHO’S GETTING THE MONEY IS ALREADY POSTED ON YOUR WEBSITE? >> AGAIN, WHAT OFFENSIVE’S SAID IS THAT EVERY SINGLE COMMITMENT WE’VE MADE IS LISTED ON THE WE, EVERY TERM SHEET, AND — >> EVERY DOLLAR IS ON YOUR WEBSITE, THAT’S WHAT YOU SAID, THAT’S WHAT I HEARD >> AGAIN, WITHIN THE CARES ACT FACILITIES WITH THE FED, WHEN WE DO INDIVIDUAL TRANSACTIONS THROUGH THEM, THEY ARE LISTED >> CHAIRMAN POWELL, I LOOK FORWARD TO SEEING THAT LIST, BY THE WAY, SECRETARY MNUCHIN, AND I’M GOING TO GO ONLINE AND I’M GOING TO SEARCH IT BECAUSE I’M GOING TO TELL YOU THAT AS MUCH TRANSPARENCY AS YOU SAID ARE WITH THIS PROGRAM, AS A SENATOR FROM MONTANA, AS A MEMBER OF THE BANKING COMMITTEE, I’M NOT SEEING ANY OF IT, QUITE FRANKLY I’M SEEING GENERAL NUMBERS I AM NOT SEEING ANY OF IT WE WILL DEAL THAT AT A LATER DATE CHAIRMAN POWELL, I HAVE A QUESTION FOR YOU THERE’S BEEN $3 TRILLION BEEN PUT OUT CAN YOU GIVE ME AN IDEA HOW MANY DOLLARS BECAUSE OF THE LEVERAGING THE FED USED HAS ACTUALLY BEEN INFUSED INTO THE ECONOMY? >> WELL, SENATOR, OUR FACILITIES, THE BIG FACILITIES TO WHICH THE EQUITY HAS BEEN COMMITTED ARE REALLY JUST COMING ONLINE SO IT’S ALL AHEAD OF US YOU KNOW, WE’VE TAKEN SOME TIME TO SET THESE FACILITIES UP SO THE AMOUNT THAT’S GONE OUT SO FAR IS IN THE CONTEXT OF THE U.S. ECONOMY FAIRLY MODEST WE HAVE COMMITTED, THOUGH, TO DISCLOSE ALL OF THE BORROWERS AND THE AMOUNTS IN A TIMELY WAY >> I APPRECIATE THAT THERE’S $200 BILLION THAT I BELIEVE SECRETARY MNUCHIN SAID WOULD BE LEVERAGED AT $2.3 TRILLION DO YOU AGREE WITH THAT? >> YES, POTENTIALLY WE CAN’T BE PRECISE ABOUT THESE NUMBERS, BUT WE CAN LEVERAGE THEIR EQUITY AT ABOUT THAT RATE >> WHAT’S $100 BILLION AMONG FRIENDS? HEY, THANK YOU VERY, VERY MUCH I APPRECIATE YOU BEING HERE I LOOK FORWARD TO SEEING THE INFORMATION THAT SECRETARY MNUCHIN SAID WAS ONLINE TAKE CARE, GOD BLESS >> SENATOR >> THANK YOU, MR. CHAIRMAN SECRETARY MNUCHIN, CHAIRMAN POWELL, THANK YOU, BOTH, FOR BEING HERE I WANT TO SPEAK ABOUT THE PRIMARY AND SECONDARY CORPORATE CREDIT FACILITIES AS OF TODAY THOSE FACILITIES ARE AVAILABLE TO COMPANIES THAT HAVE RATINGS FROM PUBLIC RATING AGENCIES LIKE S&P AND MOODY’S AS YOU KNOW, THAT CAN BE A VERY EXPENSIVE PROCESS SOME COMPANIES DON’T WANT TO GO THROUGH THE COST OR THE RIGAMAROLE OF GETTING THOSE RATINGS THESE COMPANIES OFTEN TEND TO BE PRIVATELY OWNED, SOMETIMES FAMILY OWNED THEY CAN HAVE VERY LARGE EMPLOYEE BASES WE HAVE SOME IN ARKANSAS, AN AGGREGATE, THEY’RE EMPLOYING THOUSANDS OF WORKERS, I THINK PROBABLY ALL THE SENATORS ON THIS COMMITTEE, MAYBE ALL 50 STATES HAVE COMPANIES THAT ARE IN THIS CATEGORY OFTENTIMES THEY SELL LOANS

DIRECTLY TO INSURANCE COMPANIES LIKE LIFE INSURERS THAT ARE RATED BY THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS THOSE WRITINGS ARE HIGH QUALITY, THEY ARE THE FUNCTIONAL EQUIVALENT OF A PUBLIC RATINGS AGENCY LIKE AN S&P OR A MOODY’S SECRETARY MNUCHIN, WHAT IS THE POSSIBILITY OF OPENING UP THOSE FACILITIES TO COMPANIES THAT ARE SELLING THOSE KIND OF LOANS WITH THOSE KIND OF CREDIT WORTHINESS RATINGS FROM THE NAIC? >> SENATOR COTTON, I HAVE APPRECIATED THE OPPORTUNITY THAT YOU’VE BROUGHT THIS TO OUR ATTENTION, AND AS I’VE SUGGESTED, I’M WORKING WITH THE FED VERY CLOSELY TO SEE IF WE CAN ACCOMMODATE USING THOSE NAIC RATINGS, AND IF IN NEED, THERE IS SOME PRIVATE RATINGS THAT CAN BE DONE ON A LEVEL THAT IS NOT COSTLY TO THE COMPANIES BUT WE ARE COMMITTED TO MAKING SURE THAT THESE COMPANIES CAN USE THE FACILITIES AS WELL >> CHAIRMAN POWELL, CAN I GET YOUR PERSPECTIVE ON THAT QUESTION? >> YES IF I UNDERSTOOD YOUR DESCRIPTION OF THE COMPANIES, THEY SOUND MORE LIKE MAIN STREET COMPANIES THAN PRIMARY OR SECONDARY CREDIT MARKET, THOSE ARE TO INVEST-GRADE ISSUES WHO ISSUE PUBLIC BONDS IF I MISUNDERSTOOD, I’M SORRY >> ON THE MAIN STREET FACILITY, MR. CHAIRMAN, I THINK THE LIMITATION THAT SOME COMPANIES MIGHT FACE IS THAT THEY EXCEED THE EXWHEE CAP WHICH I UNDERSTAND TO BE $10,000, BUT IT WOULD BE SIMILAR TO THE MAIN STREET LENDING FACILITY >> WELL, I JUST ECHO WHAT SECRETARY MNUCHIN SAID WE’RE WORKING ON THIS PROBLEM >> THANK YOU FOR THAT AND, MR. SECRETARY, ANY THOUGHTS ON WHEN THAT DECISION MIGHT BE MADE, SOME OF THESE COMPANIES CAN GET THE CERTAINTY ON WHETHER THEY’LL HAVE ACCESS TO THAT FACILITY OR ANOTHER FACILITY OR PERHAPS A BRAND NEW FACILITY? >> I UNDERSTAND THE IMPORTANCE OF THIS, AND I’LL COMMIT TO TRY TO GET BACK TO YOU WITHIN THE NEXT WEEK AND WE WANT TO MAKE SURE THAT IF THERE ARE COMPANIES THAT SLIPPED THROUGH THESE TWO FACILITIES, THE CHAIR AND I WILL WORK TOGETHER TO MAKE SURE THAT WE DEAL WITH THOSE ISSUES SO THAT THEY HAVE FUNDING >> OKAY THANK YOU, BOTH, FOR THAT, AND THANK YOU FOR YOUR WORK ON THIS QUESTION OVER THE LAST COUPLE WEEKS SECRETARY MNUCHIN, I WANT TO TURN TO A QUESTION ABOUT THE PAY CHECK PROTECTION PROGRAM IT’S A VERY SPECIFIC QUESTIO, BUT I GOT IT COMING IN MY OFFICE THIS MORNING FROM ONE OF OUR SMALL COMMUNITY LENDERS IN ARKANSAS I SUSPECT MANY OTHER OF OUR LENDERS HAVE THE SAME QUESTION, I SUSPECT ALL OF OUR STATES HAVE THIS QUESTION THE NOTE WE RECEIVED SAID WE ARE REQUIRED TO FOLLOW PPE VERSION OF SBA FORM 1502 BY FRIDAY FOR ALL THE LOANS REFUNDED, YET THE GUIDANCE AND FORMAT OF THE REPORTING REQUIREMENTS HAVE NOT BEEN SLUD WE ARE REACHING A CRITICAL POINT IN TIME AS YOU KNOW, BANKS HAVE TO EXTRACT THIS INFORMATION FROM OUR CORE, AND THAT CAN BE BOTH TIME CONSUMING AND TEDIOUS WE ASKED FOR A LITTLE MORE DETAIL THAT DETAIL IS AS FOLLOWS, BANKS WILL HAVE TO EXTRACT THESE DATA POINT FROM OUR PRIMARY CORE SOFTWARE SYSTEM THIS WILL REQUIRE PROGRAMMING TO MINE THESE DATA POINTS IN MERGING INTO THE REQUIRED FORMATS, THEN WE HAVE TO INSPECT FOR ACCURACY THIS WILL REQUIRE SEVERAL DAYS TO ACCOMPLISH IT IS NOT A — IT IS NOT AS SIMPLE AS PUSHING A BUTTON AND THE DATA IS POPULATED MR. SECRETARY, GIVEN THAT THIS IS TUESDAY, THE DEADLINE FOR THIS IS FRIDAY WHAT’S THE PROSPECT OF GETTING MORE DETAILED GUIDANCE FROM SBA AS SOON AS POSSIBLE OR PERHAPS PUSHING THAT DEADLINE BACK A LITTLE BIT SO ALL OUR LENDING INSTITUTIONS CAN COMPLY WITH WHAT YOU NEED? >> MR. SENATOR, I BELIEVE WE’VE ALREADY PUSHED THAT DATE BACK BUT I WILL CHECK ON THAT AND CONFIRM IT AND IF THERE IS A SPECIFIC INSTITUTION THAT HAS A PROBLEM, PLEASE LET ME KNOW THE NAME, AND WE’LL FIGURE OUT HOW TO ACCOMMODATE THAT WE WANT TO MAKE SURE THAT WE GET THE INFORMATION, BUT WHERE THERE ARE SMALL AND MEDIUM- SIZED BANKS THAT HAVE ISSUES, WE’LL OBVIOUSLY TRY TO FIGURE OUT HOW TO ACCOMMODATE THEM >> THANK YOU VERY MUCH, AND THANK YOU, AGAIN, FOR THE TREASURY AND THE SBA’S WILLINGNESS TO WORK WITH ALL OF US OVER THESE LAST TWO MONTHS TO IRON OUT ALL OF THESE WRINKLES AS THE CARES ACT IS APPLIED IN SO MANY DIFFERENT SITUATIONS THANK YOU, GENTLEMEN I YIELD BACK MY TIME, MR CHAIRMAN >> THANK YOU SENATOR WARNER >> CAN YOU HEAR ME? >> YES >> OKAY, GREAT, THANK YOU AND THANK YOU, GENTLEMEN I WANT TO START, CHAIRMAN POWELL, WITH — FROM THE COMMENTS I THINK YOU’VE MADE AND I WANT TO REINFORCE THAT I THINK WE ALL REALIZE AND UNDERSTAND THAT LOSING A JOB ANYTIME IN YOUR LIFETIME IS AN ENORMOUS CHALLENGE LOSING A JOB IN THE MIDST OF A RECESSION OR DEPRESSION COULD BE DEVASTATING I POINT TO THE SURVEY THAT THE FED PUT OUT LAST WEEK THAT LITERALLY SAID 40% OF OUR FELLOW AMERICANS WHO MAKE LESS THAN $40,000, 40% OF THOSE FOLKS HAD THEIR JOBS DISAPPEAR BETWEEN FEBRUARY AND MARCH WE ALL KNOW AS WELL THAT 36

MILLION AMERICANS WERE UNEMPLOYED, WE’RE AT DEPRESSION LEVELS OF UNEMPLOYMENT, AND I THINK STATISTICS HAVE ALREADY SHOWN, THAT PARTICULARLY LOSING A JOB DURING A RECESSION COULD ACTUALLY INCUR LONG-TIME INCOME LOSSES, UP TO 19% OVER THE COMING DECADE SOME OF THE STATISTICS THAT I’VE SEEN SO, I’D LIKE YOU TO TAKE A MOMENT TO SAY WE HAVE TO MEASURE OVERDOING VERSUS UNDERDOING, BUT WITH THIS TYPE OF DEVASTATION, WITH THIS TYPE OF PAIN DISPROPORTIONATELY HITTING LOW AND MODERATE INCOME AMERICAN, CAN YOU SPEAK TO US OF THE RESULTS AND THE LONG- TERM SCARS THIS WOULD PRESENT IF WE DON’T TAKE AGGRESSIVE ACTION? >> THANK YOU I’D BE GLAD TO SO THERE IS CLEAR EVIDENCE THAT WHEN YOU HAVE A SITUATION WHERE PEOPLE ARE UNEMPLOYED FOR LONG PERIODS OF TIME THAT CAN PERMANENTLY WEIGH ON BOTH THEIR CAREERS AND THEIR ABILITY TO GO BACK TO WORK AND ALSO WEIGH ON THE ECONOMY FOR YEARS EQUALLY SO, WITH SMALL AND MEDIUM-SIZED BUSINESSES WHICH ARE THE JOBS MACHINE OF OUR GREAT ECONOMY IF WE ALLOW UNNECESSARY, AVOIDABLE INSOLVENCIES IN EFFECT BECAUSE OF A NATURAL DISASTER, THAT TOO WILL DESTROY THE WORK OF MANY FAMILIES AND GENERATIONS, BUT IT’LL WEIGH ON THE ECONOMY SO THOSE ARE THINGS TO KEEP IN MIND AS I SAID EARLIER, THIS IS THE BIGGEST RESPONSE BY CONGRESS EVER AND THE FASTEST AND THE BIGGEST FROM US, AND STILL THIS IS THE BIGGEST SHOCK WE’VE SEEN IN LIVING MEMORY AND THE QUESTION LOOMS IN THE AIR IS IT ENOUGH? AND WE’LL HAVE TO — >> I WOULD ARGUE THAT HISTORICALLY WHETHER IT’S OUR COUNTRY OR OUR NATIONS THAT GOVERNMENTS TEND TO UNDERSHOOT DURING THESE PERIODS, AND WE NOW HAVE 36 MILLION AMERICANS WITHOUT WORK AND 40% OF THE FOLKS UNDER $40,000 A YEAR LOSING THEIR WORK THAT THIS SCAR COULD BE DEEP AND WIDE ONE OF THE REASONS I WANT TO TURN TO YOU, SECRETARY MNUCHIN, AND WE’VE DISCUSSED THIS, AND I THINK A NUMBER OF OUR COLLEAGUES ON BOTH SIDES OF THE AISLE UNDERSTAND THIS, YOU KNOW, WE DID SOME AGGRESSIVE THINGS FOR FOLKS IN THE AIRLINE INDUSTRIES, WE DID SOME AGGRESSIVE THINGS FOR FOLKS UNDER $500,000, BUT THAT MIDDLE MARKET THAT THE MAIN STREET FACILITY IS SUPPOSED TO ADDRESS, I AM GRAVELY CONCERNED THAT WE BOTH NEED TO GET THAT OUT AND WE NEED TO BE VERY AGGRESSIVE WITH IT I GET A LETTER TO YOU ALL, TO YOU, SECRETARY, YESTERDAY, OUTLINING SOME OF THE IDEAS THAT I HOPE YOU’D BE WILLING TO LEAN INTO BUT I WANT TO — AND YOU MADE MENTION EARLIER THAT YOU WERE WILLING TO HAVE SOME OF THAT $75 BILLION AT RISK IN THIS FACILITY, BUT I’D LIKE YOU TO SPEAK TO THAT A LITTLE BIT MORE, SPECIFICALLY IN TERMS OF WHICH — AS YOU BUILT OUT THE BASELINE OF THIS FACILITY, HOW MUCH RISK, AND HOW MUCH OF THAT CAPITAL DID YOU EXPECT TO POTENTIALLY LOSE, AND I’D LOVE TO HAVE THEN THE FED CHAIRMAN VERY QUICKLY ECHO WHETHER HE’S WILLING TO RELOOK AT SOME OF THE PENALTY FEES THAT ARE — MY UNDERSTANDING FED REGULATIONS BUT NOT LEGISLATIVELY MANDATED SECRETARY MNUCHIN, YOU FIRST, PLEASE >> THANK YOU WELL, SENATOR WARNER, FIRST OF ALL, I WANT TO PERSONALLY THANK YOU FOR THE TIME YOU SPENT WITH US DURING THE LEGISLATIVE PROCESS IN HELPING TO CRAFT THESE DIFFERENT PIECES AND YOUR AVAILABILITY SINCE THEN TO WORK WITH US SO WE APPRECIATE YOUR THOUGHTS, AND WE’LL CONTINUE TO WORK WITH YOU AS IT RELATES TO RISKING CAPITAL, AS I SAID, BY DEFINITION, ALMOST ANY R ANYTIME THE FED THINKS THEY NEED CAPITAL, THERE’S A RISK TO US WE OBVIOUSLY MODEL OUR VARIOUS DIFFERENT SCENARIOS, WE’VE OBVIOUSLY CONTINUED TO ADAPT THE MAIN STREET PROGRAM TO LET MORE AND MORE COMPANIES INTO IT, AND ALTHOUGH WE REFER TO IT AS ONE PROGRAM, IT EFFECTIVELY HAS THREE SUBPROGRAMS SO WE RUN DIFFERENT SCENARIO ANALYSIS THERE ARE SCENARIOS WITHIN MAIN STREET WHERE WE COULD LOSE ALL OF OUR CAPITAL, AND WE’RE PREPARED TO DO THAT THERE’S WHERE THE WORLD GETS BETTER AND WE COULD ACTUALLY MAKE A SMALL AMOUNT OF MONEY BUT, AS I’VE SAID, NO DIFFERENT THAN SECRETARY PAULSON DURING THE T.A.R.P PERIOD, THEY DIDN’T THINK THEY WERE GOING TO MAKE MONEY OUR INTENTION IS THAT WE EXPECT TO TAKE SOME LOSSES ON THESE FACILITIES, THAT’S OUR BASE CASE SCENARIO >> AND, MR. CHAIRMAN, DO YOU WANT TO ADDRESS IN TERMS OF THE PENALTY RATE? >> I’D BE GLAD TO SO WHAT WE’RE DOING HERE WITH THESE PROGRAMS IS WE’RE MAKING LOANS IN TIMES OF SEVERE STRESS WHERE MARKETS ARE NOT WORKING AND NOT PROVIDING CREDIT ON REASONABLE TERMS , THE ORIGINAL PURPOSE OF CENTRAL BANKS SO WHAT RATE SHOULD WE CHARGE? SO WHAT WE DO IS WE CHARGE A RATE THAT IS A LITTLE BIT HIGHER THAN THE NORMAL RATE, BUT IN MOST CASES MUCH BELOW WHAT THE MARKET IS CURRENTLY PROVIDING THAT ENCOURAGING PAYMENT IT HELPS THOSE WHO CAN’T GET CREDIT, BUT NOT FROM CREDIT WHO CAN SAVE A FEW BASIS POINTS AND IF THE MARKET IS FUNCTIONALLY REASONABLY WELL, WE CAN’T REPLACE THEM

WE WANT TO BE A BACKSTOP TO THOSE MARKETS >> MR. CHAIRMAN, MY TIME IS UP BUT THESE ARE EXTRAORDINARY TIMES, AND I HOPE YOU WILL LEAN INTO THIS AS MUCH AS POSSIBLE THANK YOU, MR. CHAIRMAN >> THANK YOU SENATOR ROUNDS >> THANK YOU, MR. CHAIRMAN GENTLEMEN, FIRST OF ALL, THANKS, AND I APPRECIATE THE WORK THAT YOU HAVE DONE AND YOUR ORGANIZATIONS HAVE DONE IN MAKING THIS WHOLE THING WORK, AS WELL AS IT HAS IN A VERY SHORT PERIOD OF TIME I WOULD ASK, FIRST OF ALL, TO SECRETARY MNUCHIN, IN DISCUSSING WHETHER LOCAL LENDERS, THEY’VE GOT A NUMBER OF QUESTIONS COMING IN WITH REGARD TO PPP, AND SPECIFICALLY TWO DIFFERENT SECTIONS, A PORTION, NUMBER ONE WAS THE RULE IN WHICH WE ASKED THAT THESE LOANS BE LITERALLY DIVVIED OUT AND ACCEPTED WITHIN 10 DAYS OF THE TIME OF APPROVAL AND SECOND OF ALL, HOW THAT RELATES TO A JUNE 30th DATE FOR THE EXECUTION OR COMPLETION OF THE USE OF THOSE LOANS AND, MR. SECRETARY, I DON’T FIND WHERE THERE’S ACTUALLY A JUNE 30th END DATE WHERE THAT HAS TO HAPPEN IN ORDER TO DO FACILITATE FORGIVENESS OF THAT LOAN CAN YOU TALK A LITTLE BIT ABOUT YOUR OPTIONS OR THE FLEXIBILITY YOU HAVE WITH REGARD TO THE PPP AND THE FORGIVENESS OF LOANS AND THAT JUNE 30th DATE THAT SO MANY PEOPLE HAVE CONCERNS ABOUT? >> WELL, LET ME JUST COMMENT, I THINK THE CONCERN THAT PEOPLE HAVE THAT’S EVEN BIGGER THAT WE’D LIKE TO GET A BIPARTISAN TECHNICAL FIX AS YOU SAID, THERE’S THE 10 DAYS TO GERS IT WE’VE THEN GIVEN PEOPLE ANOTHER 10 DAYS IF THEY HAVEN’T SENT BACK THE DOCUMENTS THEN THERE’S THE EIGHT-WEEK PERIOD SO COMPANIES ARE REALLY HAVING ISSUES WITH NOT NECESSARILY BEING ABLE TO USE IT DURING THAT EIGHT WEEKS THEY DON’T WANT MORE MONEY, BUT WANT FLEXIBILITY THAT THEY CAN USE IT IN LONGER THAN AN EIGHT- WEEK PERIOD AND AS IT RELATES TO THE JUNE 30th ISSUE, WE’RE HAPPY TO FOLLOW UP WITH YOUR STAFF AND TALK ABOUT WHERE THAT FITS INTO THE BILL >> CHAIRMAN POWELL, I NOTED A LETTER RECOMMENDING THAT CONGRESS GIVE REGULATORS DISCRETION TO LOOSEN CERTAIN CAPITAL REQUIREMENTS PRESCRIBED BY SECTION 1, 71 OF DODD-FRANK DO YOU CHAIR — WHAT ADDITIONAL MEASURES DO YOU THINK CONGRESS AND THE FEDERAL RESERVE SHOULD CONSIDER? >> I DO SHARE THAT SO THE IDEA IS TEMPORARILY DURING THIS UNUSUAL, UNIQUE PERIOD IN OUR HISTORY, THE BANKS HAVE BEEN STRONG, THEY’VE BEEN MAKING LOANS, THEY’VE BEEN TAKING IN DEPOSITS, AND BECAUSE OF THE GROWTH IN THEIR BALANCE SHEET, THEY’RE CONSTRAINED BY SOME OF THESE REGULATIONS BECAUSE THEY’RE TAKING ON VERY LOW RISK ASSETS, SO WE’VE TRIED TO PROVIDE RELIEF SO THAT THEY CAN DO WHAT THEY’RE DOING SO I DO SUPPORT THAT, AND WE’VE DONE A NUMBER OF AND, YOU KNOW, WE’LL LET YOU KNOW AS WE SEE THE NEED FOR OTHER ADJUSTMENTS >> THANK YOU SECRETARY MUST HAVE MUST HAVE, ONE THOUGHT WITH REGARD, IN THE MIDDLE OF THIS COVID-19 PANDEMIC, WE STILL HAVE A DISCUSSION ABOUT ON A REGULAR BASIS GET QUESTIONS FROM TRAIRS HERE ABOUT THE AMOUNT OF MONEY WE’VE BORROWED AND WHAT WE’RE GOING TO DO ABOUT IT YOU’RE GOING TO PLAY A KEY ROLE IN HOW WE LAY OUT THAT REPAYMENT PLAN CAN YOU TALK A LITTLE BIT ABOUT THE TOOLS AVAILABLE TO YOU, SPECIFICALLY WITH REGARD TO LONG OR ULTRA LONG TREASURY BOND? I KNOW IT’S BEEN A HOT TOPIC AND I KNOW MOST RECENTLY YOU LAUNCHED A 20-YEAR BOND CAN YOU TALK ABOUT THE MATURITY, HOW YOU PLAN ON LAYING THAT OUT, THE STRATEGY THAT YOU’RE USING TO BEST ACCOMMODATE OUR NEEDS FOR THE IMMEDIATE LIQUIDITY, BUT ALSO RECOGNIZING THAT YOU’VE GOT SOME TOOLS AVAILABLE, AND WITH THESE ULTRA LOW INTEREST RATES THAT WE’RE AT RIGHT NOW, IT MAY VERY WELL WORK TO OUR BENEFIT TO FEATHER THIS OUT OVER AN EXTENDED PERIOD OF TIME >> WELL, THANK YOU I’M GLAD YOU ASKED THAT QUESTION BECAUSE I THINK IT’S VERY IMPORTANT SO THE FIRST I WOULD JUST ANSWER, PRIOR TO THIS WE SPENT A LOT OF LOOKING AT 50 AND 100- YEAR BONDS AND DETERMINED THAT THERE JUST WASN’T ENOUGH DEMAND TO MAKE IT WORTH IT GIVING OUR BORROWING SIZES WE DID GET ADVICE ON A 20-YEAR, SO WE’VE ADDED THE 20 YEAR THAT GIVES US BOTH THE ABILITY TO EXTEND THE DURATION AS WELL AS RAISE SIGNIFICANT AMOUNT OF FUNDS SO IT IS MY INTENTION, AS YOU’VE DESCRIBED, TO BORROW A LOT OF MONEY IN THE SHORT TERM, TO HAVE THE FUNDING, BUT THEN TO EXPAND OUR FINANCING WHAT I’D LIKE TO DO IS LOCK IN AT SIGNIFICANT LOW INTEREST RATES SO THE MONEY CAN BE PAID BACK AND DEALT WITH OVER A LONG

PERIOD OF TIME >> TODAY’S HEARING TAKES PLACE IN THE WORST ECONOMIC CRISIS IN OUR LIFETIMES UNEMPLOYMENT IS NOW AT GREAT DEPRESSION LEVELS, NEARLY 40% OF PEOPLE MAKING LESS THAN $40,000 LOST THEIR JOBS IN MARCH ALONE BUSINESSES ARE SHUTTERED, AND THEY MAY NEVER REOPEN CONGRESS PASSED THE CARES ACT AND PUT NEARLY HALF A TRILLION DOLLARS WORTH OF TAXPAYER MONEY AROUND CORPORATE BAILOUT MONEY IN YOUR HANDS THIS IS NOT THE PPE OR THE SMALL BUSINESS FUND, BUT HALF A TRILLION DOLLARS FOR MID-SIZED AND GIANT CORPORATIONS SO I WANT TO TALK A LITTLE BIT ABOUT WHERE THAT MONEY IS GOING THE LAW GIVES TREASURY AND FEDERAL RESERVE THE AUTHORITY TO WRITE DETAILED RULES DETERMINING WHICH COMPANIES GET TAXPAYER RELIEF AND HOW THEY CAN SPEND THAT MONEY AND OVER THE PAST FEW WEEKS THE FED HAS BEEN PUTTING OUT THESE RULES IN THE FORM OF WHAT YOU CALL TERM SHEETS SO, SECRETARY MNUCHIN, YOU HAVE SAID THAT THE JOBS NUMBERS WILL IMPROVE IN FACT, ON FOX NEWS YOU SAID, QUOTE, WE WILL HAVE A BETTER THIRD QUARTER, WE WILL HAVE A BETTER FOURTH QUARTER, AND NEXT YEAR IS GOING TO BE A GREAT YEAR NOW, TO MAKE THAT HAPPEN PEOPLE ARE GOING TO NEED JOBS SO DOES THIS MEAN THAT YOU’LL REQUIRE COMPANIES THAT RECEIVE THE BAILOUT MONEY FROM THE TAXPAYERS TO KEEP THEIR WORKERS ON PAYROLL? >> SO LET ME JUST COMMENT, I HAVE SAID PUBLICLY AND I’LL SAY AGAIN, I THINK THE JOB NUMBERS WILL GET WORSE BEFORE THEY GET BETTER SO I JUST WANT TO BE VERY CLEAR THAT I THINK JUNE WILL BE A VERY DIFFICULT QUARTER AS IT RELATES TO THE CARES ACT, I TAKE GREAT PRIDE IN THE BIPARTISAN SUPPORT ON THESE BILLS, AND THESE SPECIFICS WERE DWOASHTED ON A — NEGOTIATED ON A BIPARTISAN BASIS VERY CLEARLY IN EACH ONE OF THESE PROGRAMS, AND IT IS OUR INTENT IN THE 13.3 FACILITIES TO FULFILL BOTH THE SPIRIT AND THE DETAILS OF THE LAW SO DIFFERENT FACILITIES HAVE DIFFERENT REQUIREMENTS >> SO, I’M SORRY, SECRETARY MNUCHIN THAT’S NOT QUITE RIGHT WHAT THE LAW SPECIFICALLY DOES IS GIVES YOU THE SPECIFIC AUTHORITY TO DETERMINE THE TERMS ON WHICH THESE LOANS WERE MADE AND WHO’S GOING TO BE ABLE TO GET THEM FOR THESE MID-SIZED AND GIANT CORPORATIONS AND SO A VERY SIMPLE QUESTION FOR YOU YOU SAY THE ECONOMY IS GOING TO RECOVER IT’S GOING TO TAKE JOBS IN ORDER FOR THAT TO HAPPEN SO WHAT I WANT TO KNOW IS ARE YOU GOING TO REQUIRE COMPANIES THAT RECEIVE MONEY FROM THIS HALF A TRILLION DOLLAR SLUSH FUND TO HAVE TO KEEP PEOPLE ON PAYROLL? IT’S A SIMPLE QUESTION YES OR NO, ARE YOU GOING TO REQUIRE THAT? >> FIRST LET ME SAY OUR NUMBER ONE OBJECTIVE IS KEEPING PEOPLE EMPLOYED >> GOOD >> SO I WANT TO BE CLEAR ON THAT >> WHO ARE GETTING TAXPAYER MONEY, THAT’S MY QUESTION? >> AGAIN, WE NEGOTIATED VERY SIGNIFICANT RESTRICTIONS ON EMPLOYEE COMPENSATION, ON DIVIDENDS, ON BUYBACKS, AND IN THE MAIN STREET FACILITY WE HAVE PUT IN A PROVISION THAT WE EXPECT PEOPLE TO USE THEIR BEST EFFORTS TO SUPPORT JOBS — >> BUT — I’M SORRY I HAVE VERY LIMITED TIME HERE, MR. SECRETARY LET ME UNDERSTAND WHAT YOU’RE SAYING IN ALL THE FACILITIES THAT ARE NOT THE MAIN STREET FACILITIES, YOU’RE NOT PUTTING ANY ANY REQUIREMENT FOR PAYROLL, AND THE MAIN STREET FACILITY IS SOMETHING ABOUT COMMERCIAL REASONABLE EFFORT TO BE ABLE TO MAINTAIN JOBS IN OTHER WORDS, IF SOMEBODY FIRES, IF A CORPORATION FIRES A BUNCH OF PEOPLE AND THEN GETS FEDERAL TAXPAYER MONEY, YOU’RE FINE WITH THAT, OR IF THEY TAKE A BUNCH OF FEDERAL TAXPAYER MONEY, AND THEY SAY, WELL, IT DIDN’T WORK OUT COMMERCIALLY FOR US, THEN THEY CAN FIRE PEOPLE SO I TAKE IT YOUR ANSWER TO MY QUESTION THAT WHETHER OR NOT YOU’RE GOING TO REQUIRE AS PART OF THE TERMS OF THE LOAN THAT PEOPLE BE KEPT ON THE PAYROLL IS NO? IS THAT RIGHT, SECRETARY MNUCHIN? >> THAT WAS DISCUSSED WITH PEOPLE ON BOTH SIDES OF THE AISLE >> I’M SORRY, SECRETARY MNUCHIN I’M TALKING ABOUT YOUR TERM SHEETS THAT YOU’RE PUTTING OUT, AND YOU’RE TELLING ME YOU’RE NOT GOING TO REQUIRE ANY PAYROLL — LET ME ASK YOU ONE MORE QUESTION TAXPAYERS ARE ON THE HOOK HERE FOR NEARLY HALF A TRILLION DOLLARS YOU’RE NOT GOING TO REQUIRE THAT THEY KEEP A SINGLE PERSON ON PAYROLL THERE ARE SOME RULES, THOUGH, IN THE TERM SHEETS, AS YOU IDENTIFIED EARLIER, LIKE PROHIBITING COMPANIES FROM

GETTING BAILOUT MONEY FROM DOUBLE DIPPING IN OTHER CARES PROGRAMS AND BY LAW COMPANIES THAT GET THIS MONEY ARE GOING TO HAVE TO SIGN AGREEMENTS CERTIFYING THAT THEY’RE IN COMPLIANCE SO, SECRETARY MNUCHIN, HERE’S WHAT I WANT TO KNOW, WILL YOU CREATE A CERTIFICATION PROCESS THAT ENSURES THAT EXECUTIVES ARE HELD PERSONALL LINEABLE AND SUBJECT TO PENALTIES IF THEY PROVIDE FALSE OR MISUSE OF BAILOUT FUNDS >> IF YOU COULD BE BRIEF, MR SECRETARY >> I WILL REVIEW THAT AND I WILL COMMENT THAT PROGRAMS LIKE THE AIRLINES PROGRAMS HAD VERY SPECIFIC REQUIREMENTS TO KEEP JOBS WHICH WAS THE INTENT TO CONGRESS >> THAT’S RIGHT THE REST WAS LEFT UP TO YOU AND WHAT YOU’RE SAYING IS YOU WON’T DO IT YOU KNOW, WE’RE IN A SITUATION WHERE 35 MILLION AMERICANS HAVE FILED FOR UNEMPLOYMENT YOU’RE IN CHARGE OF NEARLY HALF A TRILLION DOLLARS YOU’RE BOOSTING YOUR WALL STREET BUDDIES, AND YOU ARE LEAVING AMERICA BEHIND >> SO, SENATOR WARREN, I THINK THAT’S A VERY UNFAIR CHARACTERIZATION AND THESE ISSUES WERE DISCUSSED WITH BOTH REPUBLICANS AND DEMOCRATS AT THE TIME YOU WERE NOT NECESSARILY PART OF THOSE DISCUSSIONS, BUT THESE WERE COMPLETELY DISCUSSED >> YOU WERE GIVEN THE AUTHORITY TO DETERMINE THE TERMS, YOU’VE SAID IT YOURSELF, YOU’RE PUTTING OUT TERM SHEETS, AND THOSE TERM SHEETS DO NOT REQUIRE THAT A SINGLE CORPORATION GETTING BILLIONS OF DLLARS IN TAXPAYER MONEY RETAIN ONE JOB? >> SENATOR PURDUE >> THANK YOU, MR. CHAIRMAN THANK YOU, BOTH, FOR BEING HERE TODAY I LOOK FORWARD TO THESE QUARTERLY UPDATES CHAIRMAN POWELL, WHEN YOU TOOK THIS RESPONSIBILITY, THE FED HAD ABOUT A $5 TRILLION BALANCE SHEET YOU WORKED IT DOWN TO ABOUT $3.8 IT’S WHEN THE COVID-19 CRISIS HIT THE MONEY SUPPLY INCREASING FROM $3.8 TO $5 TRILLION RECENTLY WITH THE DEBT BEING AT $23 TRILLION AND WITH ABOUT 2/3 OF WHAT WE HAVE DONE SO FAR IN THE $3 TRILLION RELIEF PACKAGE LOOKS LIKE GOES TO DEBT, AND WITH THE POTENTIAL FOR MORE MOVEMENT BY THE FED THAT WOULD TAKE THE BALANCE SHEET TO $4 TRILLION TO THE FIVE MOVES YOU’VE MADE TAKES UP TO POTENTIALLY $13 1/2 TRILLION IT’S AROUND $7 TRILLION TODAY AND IT COULD GO NORTH OF $14 WHEN IN FACT THE MAIN STREET PROGRAM IS FULLY LEISURED UP HELP US UNDERSTAND HOW DO YOU PUT THIS GENIE BACK IN THE BOTTLE HELP US HOW YOU’RE THINKING ON THIS DEMAND FOR CAPITAL AND EXWHA IT MIGHT DO TO INTEREST RATES IN THE SHORT TERM AND THE LONG-TERM IMPLICATIONS OF WHAT WE’VE JUST DONE? THIS IS NOT A CRITICISM AT ALL, IT’S JUST I’D LOVE TO GET YOUR THOUGHTS ABOUT HOW WE SHOULD BE THINKING ABOUT THAT BALANCE SHEET GIVEN THAT CHINA, JAPAN, E.U., ALL THE BIG CENTRAL BANKS ARE DOING FAIRLY SIMILAR MOVE, JUST NOT AS SILICON VALLEY AS WE HAVE DONE >> WE EXPAND OUR BALANCE SHEET WHEN WE LOST SECURITIES, AS YOU KNOW, SENATOR, SO WE BOUGHT A LOT OF TREASURY AND MBS SECURITIES TO GET THOSE MARKETS WORKING, AS THESE FACILITIES GROW, WE’LL ALSO EXPAND OUR BALANCE SHEET, AND THOSE ALSO — YOU KNOW, THAT EXPANDS THE MONEY SUPPLY I WOULD EXPECT OVER TIME, AND THAT TIME PROBABLY WILL NOT BE VERY SOON, BUT OVER TIME, THE ASSETS WE HAVE ON OUR BALANCE SHEET FROM THIS ERA WILL COME TO MATURITY, THEY’LL ROLL OFF AND THE BALANCE SHEET WILL AGAIN VERY GRADUALLY RETURN THIS WILL BE SOME YEARS DOWN THE ROAD, I WOULD THINK >> SORRY TO INTERRUPT I’VE WATCHED HOW HARD IT WAS TO GET US DOWN FROM JUST $4.1 TO $3.8 IN THE LATTER STAGES OF THAT AND THE CONSTERNATION IT HAD BOTH POLITICALLY AND ECONOMICALLY SO YOU’RE CONFIDENT THAT OVER TIME WE’LL BE ABLE TO MANAGE THAT SIZE BALANCE SHEET? >> SO WHAT REALLY MATTERS IS THE SIZE OF THE BALANCE SHEET RELATIVE TO THE SIZE OF THE ECONOMY AND WE ACTUALLY — THAT CAME DOWN QUITE SIGNIFICANTLY FROM THE END OF 2014 UNTIL 2017 JUST BY HOLDING THE BALANCE SHEET CONSTANT SO IT CAN BE DONE IN A WAY THAT IS SORT OF PASSIVE AND GRADUALLY, AND IT WAS FOR ABOUT THREE YEARS THEN, AND WE CAME DOWN FROM, WHAT, 25% OF GDP TO 16% OR 17% OF GDP SO IT CAN BE DONE OVER TIME IN THE MEANTIME, I WOULD SAY IT DOESN’T HAVE IMPLICATIONS FOR INFLATION, IT DOESN’T HAVE IMPLICATIONS PARTICULARLY FOR PROBLEMATIC IMPLICATIONS I’M NOT SAYING THERE ARE NO LIMITS TO THIS, BUT IT’S NOT SOMETHING THAT RAISES FINANCIAL STABILITY OR INFLATION CONCERNS TODAY >> SECRETARY MNUCHIN, I JUST WANT TO THANK YOU AND ECHO WHAT SENATOR SCOTT SAID EARLIER AND THAT IS ABOUT YOUR AVAILABILITY THROUGH THIS CRISIS I KNOW YOU WERE RECENTLY MARRIED, AND I DON’T KNOW WHERE YOUR WIFE IS THESE DAYS SHELTERING IN PLACE, BUT I’M SURE YOU HAVEN’T SEEN MUCH OF HER

THANK YOU FOR MAKING THESE THINGS HAPPEN I WANT TO CORRECT THE RECORD WE’VE BEEN TOLD IN THIS MEETING THAT THERE’S NO DATA OUT THERE BUT I WANT TO HIGHLIGHT SOME NUMBERS FOR US HERE FIRST OF ALL, THE DODD-FRANK BILL KILLED ABOUT 4,000 COMMUNITY BANKS IN ABOUT SIX YEARS THERE WAS A BIPARTISAN BILL DONE IN JANUARY OF 2018 THAT MODIFIED THE MOST ONEROUS PARTS OF THAT AND SAVED OUR COMMUNITY BANKS AND THEY ARE THE ROCK STARS IN THIS PROCESS IN THE PPP PROGRAM ANYWAY AND I HAVE A QUESTION, SECRETARY WE WENT AND HAD 800SBA BANKS APPROVED UNDER THE SBA SYSTEM PRIOR TO THIS, SOME 5,000 — ALMOST 5,000 BANKS MADE $4.3 MILLION LOANS, AND SO FAR HAVE PUT OUT $520 BILLION TO COMPANIES UNDER 500 EMPLOYEES AND, BY THE WAY, 99.8% OF THAT $520 BILLION WENT TO COMPANIES WITH FEWER THAN 500 EMPLOYEES IT DID WHAT WE WANTED IT TO DO AND 93% OF THOSE LOANS ARE $350,000 OR LESS MY PROBLEM IS THIS, SECRETARY, IS THAT I THINK WE HAVE ON TWO LEVELS, ONE IN THE BILL ITSELF AND ONE THAT IS HAPPENING NOW AND WHAT WE’VE DONE HERE IS THAT WE HAVE DISINCENTIVED PEOPLE TO COME BACK TO WORK MY STATE IS BEGINNING TO OPEN, AND, BY THE WAY, SAFELY WE HAVE TWO CONSTITUENTS OUT THERE, THE THERE ARE EMPLOYERS IN MY STATE WHO REALLY WANT PEOPLE COME BACK TO WORK THEY SAY, NO, WHY WOULD I DO THAT? I WANT TO ENJOY THIS PREMIUM RIGHT NOW AND CALL ME BACK IN A COUPLE OF MONTHS THE SECOND THING IS A LOT OF SMALL EMPLOYERS ACTUALLY ENCOURAGED A FEW WEEKS AGO THEIR EMPLOYEES TO GO ON UNEMPLOYMENT, EVEN THOUGH THEY WERE GETTING MONEY AND THEY WERE HOPING WHEN THE REVENUES STARTED WHEN THEY HOPED UP, THEY WOULD THEN BEGIN TO BRING PEOPLE BACK AND THEN USE THE LOAN TO PAY SALARIES HOW WOULD YOU HELP US THINK ABOUT — HELP US THINK ABOUT HOW TO DEAL WITH THAT? THE LABOR DEPARTMENT AT ONE POINT SAID THEY WERE GOING TO PUT SOME RULES OUT ABOUT THIS PREMIUM, AND THE SECOND THING IS THE ENFORCEMENT BEHIND — IF AN EMPLOYER WANTS AN EMPLOYEE TO COME BACK TO WORK, THE EMPLOYEE SHOULD NO LONGER BE QUALIFIED FOR EMPLOYMENT INSURANCE WOULD YOU ADDRESS THOSE CONCERNS, PLEASE? >> IF YOU COULD BE BRIEF, PLEASE >> AND LET ME JUST SAY WE ARE AWARE OF THE TECHNICAL PROBLEM HERE, AND WE WANT TO HAVE A TECHNICAL FIX ON THE UNEMPLOYMENT INSURANCE BUT SPECIFICALLY LET ME JUST COMMENT ON THE PPP IF YOU OFFER BACK A WORKER, AND THEY DON’T TAKE THAT JOB, THEY WILL BE REQUIRED TO NOTIFY THE LOCAL UNEMPLOYMENT INSURANCE AGENCY BECAUSE THAT PERSON WILL NO LONGER BE ELIGIBLE FOR UNEMPLOYMENT >> THANK YOU >> SENATOR >> THANK YOU TO ALL OF THE TESTIFIERS AND PANELISTS CHAIRMAN POWELL, I WANT YOU TO TAKE US THROUGH TWO VERY SIMPLE SCENARIOS THE FIRST IS IF CONGRESS TAKES NO ADDITIONAL ACTION IN THE NEXT COUPLE OF MONTHS, AND THE OTHER IS IF CONGRESS STEPS INTO THE BREACH AND PASSES ANOTHER FISCAL POLICY TALK IN TERMS OF ECONOMY ABOUT THE IMPACT ON QUARTERS THREE AND FOUR SHOULD WE DECIDE TO SAY THAT THE BILLS WE HAVE PASSED ARE ENOUGH >> I THINK IT REALLY DEPENDS ON THE PATH OF THE ECONOMY, HONESTLY AS I SAID, MY CONCERN HAS BEEN THE RISK AND POSSIBILITY OF LONGER-RUN DAMAGE TO THE ECONOMY THROUGH UNNECESSARY INSOLVENCIES ON THE PARTS OF HOUSEHOLDS AND BUSINESSES AND LONG-TERM UNEMPLOYMENT, AND THAT IF WE FIND OURSELVES IN THAT PLACE, WE MAY HAVE TO DO MORE, AND IT COULD ALSO BE SOMETHING THAT CONGRESS WOULD WANT TO DO I THINK — GO AHEAD >> SO ACCORDING TO CENSUS DATA, ABOUT HALF OF SMALL BUSINESSES ARE GOING TO RUN OUT OF CASH WITHIN A MONTH STATES ARE SLOWLY REOPENING THE ECONOMIES, BUT CONSUMER BEHAVIOR IS NOT GOING TO REBOUND TO NORMAL WITHIN A MONTH DO YOU THINK THAT THERE’S GOING TO BE A STRONG ENOUGH REBOUND IN ECONOMIC ACTIVITY IN THE NEXT ONE TO THREE MONTHS FOR THAT ALONE FROM WHAT WE’VE ALREADY DONE ALONE TO PREVENT THOUSANDS OF SMALL BUSINESSES FROM GOING UNDER, OR DO YOU THINK THERE IS A NEED FOR ADDITIONAL FISCAL POLICY? >> I THINK WE ARE GOING TO SEE HERE FAIRLY QUICKLY HOW THE REOPENING GOES AND IT’S VERY HARD TO KNOW WE HAVEN’T DONE THIS THING BEFORE, NO ONE HAS DONE THIS SORT OF THING SO I THINK YOU ARE GOING TO BE GETTING A LOT OF INFORMATION FAIRLY QUICKLY HERE IN TERMS OF WHAT MAY BE NEEDED I AM RELUCTANT TO — I MAKE MY COMMENTS ON FISCAL POLICY AT A GENERAL LEVEL I AM RELUCTANT TO TALK ABOUT TIMING AND SPECIFIC PROVISIONS IT’S REALLY NOT THE FED’S ROLE WE DO TRY TO STICK TO OUR — >> SO WHY DON’T YOU GO AHEAD? I’LL GIVE YOU AN OPEN-ENDED QUESTION PLEASE PROVIDE THE PANEL WITH SOME COMMENTS ABOUT THE IMPORTANCE OF FISCAL POLICY

OVER THE NEXT SIX TO NINE MONTHS >> IT’S A COMBINATION OF A COUPLE THINGS FIRST, JUST, AS I MENTIONED, THE RISK OF LASTING DAMAGE TO THE PRODUCTIVE CAPACITY OF THE ECONOMY BECAUSE OF THE LABOR FORCE, BECAUSE OF LONGER-TERM UNEMPLOYMENT, AND THROUGH UNNECESSARY AVOIDABLE INSOLVENCIES ON THE PART OF SMALL AND MEDIUM-SIZED BUSINESSES, THOSE TWO THINGS CREATE A REAL RISK THE OTHER THING I’LL POINT TO IS WHAT WE DO IS WE ADDRESS LIQUIDITY PROBLEMS, NOT SOLVENCY PROBLEMS WE HAVE LENDING POWERS, NOT SPENDING POWERS SO OVER TIME — AND THIS IS NOT A CERTAINTY, THIS IS A POSSIBILITY OVER TIME SOLVENCY PROBLEMS EMERGE FROM LIQUIDITY PROBLEMS LIQUIDITY CAN DEVELOP INTO INSOLVENCY WITH THE PASSAGE OF TIME THAT ALL DEPENDS ON THE PATH OF THE ECONOMY, HOW WELL THE REOPENING GOES, AND, YOU KNOW, WHICH PATH WE FIND OURSELVES ON SO I THINK — LOOK, I THINK WHAT CONGRESS HAS DONE TO DATE HAS BEEN REMARKABLY TIMELY AND FORCEFUL I THINK YOU COULD SAY THE SAME ABOUT WHAT WE’VE DONE I DO THINK WE NEED TO TAKE A STEP BACK AND ASK OVER TIME IS IT ENOUGH AND WE NEED TO BE PREPARED TO ACT FURTHER, AND I WOULD SAY WE ARE IF THE NEED IS THERE >> SEEMS TO ME THAT THE DISTINCTION BETWEEN A SOLVENCY PROBLEM AND A LIQUIDITY PROBLEM APPLIES TO BIG INSTITUTIONS, BIG CORPORATIONS, EVEN GOVERNMENTS, BUT WHEN YOU’RE TALKING ABOUT A SMALL BUSINESS OR A FAMILY, THERE’S NOT MUCH OF A DIFFERENCE BETWEEN HAVING A CASH FLOW PROBLEM AND SIMPLY BEING FLAT BROKE, AND IT SEEMS TO ME THAT THAT DISTINCTION WHICH YOU ARE ABLE TO MAKE AND RIGHTLY DO AS THE HEAD OF THE FEDERAL RESERVE IS A RATHER ABSTRACT ONE FOR THE COMPANIES THAT ARE EIGHT PERSONS AND THE FAMILIES THAT ARE SORT OF AT ECONOMIC’S DEATH DOOR, THEY DON’T DISTINGUISH BETWEEN A SOLVENCY PROBLEM AND A LIQUIDITY PROBLEM, THEY’VE RUN OUT OF MONEY >> GO AHEAD >> SECRETARY MNUCHIN, SECTION 4114 OF THE CARES ACT STATES THAT CARRIERS RECEIVING PAYROLL GRANTS SHALL, QUOTE, REFRAIN FROM CONDUCTING INVOLUNTARY FURLOUGHS OR REDUCING PAY RATES AND BENEFITS UNTIL SEPTEMBER 30th, 2020, BUT ON APRIL 21st, UNITED AIRLINES RECEIVED $4.9 BILLION, AND ON MAY 1st, UNITED ANNOUNCED THAT IT WOULD REDUCE 28,000 WORKERS FROM FULL TIME TO PART TIME WITHIN TWO WEEKS WAS THAT ANNOUNCEMENT A VIOLATION OF THE TERMS OF THE PAYROLL SUPPORT PROGRAM? >> AND, AGAIN, PLEASE BE BRIEF >> WE BELIEVE RIGHT NOW THAT THEY’RE IN COMPLIANCE WITH THE PROGRAM >> RIGHT NOW WERE THEY VIOLATING THIS WHEN THEY FIRST ANNOUNCED IT? >> AGAIN, I DON’T WANT TO GO THROUGH SPECIFIC SITUATIONS WITH SPECIFIC COMPANIES I WILL SAY RIGHT NOW WE BELIEVE THEY ARE IN COMPLIANCE WITH THE AGREEMENT >> THANK YOU >> SENATOR TILLIS >> THANK YOU, MR. CHAIRMAN AND CHAIRMAN POWELL AND SECRETARY MNUCHIN THANK YOU FOR YOUR I THINK HEROIC WORK YOUR TEAM HAS DONE A GREAT JOB UNDER IMMENSE PRESSURE, AND I APPRECIATE IT ONE THING I WANT TO GO BACK TO AS MENTIONED BY TWO OF MY COLLEAGUES ABOUT THE — I LIKE THE FACT THAT THE ADMINISTRATION — COVER LEGACY — I THINK THAT’S A GOOD STEP I PERSONALLY BELIEVE THAT COMMERCIAL REAL ESTATE IS UNDER SEVERE STRESS AND IT’S LIKELY TO GET WORSE BEFORE WE START SEEING A TURN AT A MORE POSITIVE GROWTH OR MORE POSITIVE INDICATORS FROM THE ECONOMY ONE THING THAT I AM CONCERNED WITH, SECRETARY MNUCHIN, IS RIGHT NOW IT LOOKS LIKE WE’VE ONLY GOT ABOUT 15% OF THE — FROM THE AMERICAN HOTEL LODGING ASSOCIATION ABOUT 15% OF FORBEARANCES FROM THE SERVICE PROVIDERS THAT SEEMS LIKE A LOW NUMBER TO ME ONE I’D BE CURIOUS IF YOU THINK THAT’S LOW GIVEN THE CIRCUMSTANCES RIGHT NOW AND THEN WHAT MORE WE MAY NEED TO DO CONGRESSIONALLY TO GET THE SERVICERS AND THE — TO THE TABLE? >> IT DOES SEEM A BIT LOW TO ME AS WELL WE DO HAVE A STRUCTURAL PROBLEM OF LOANS THAT ARE INSECURITIATIONS AND HOW THEY HAVE TO BE DEALT WITH WITH THE SPECIAL SERVICERS SO AS IT RELATES TO THE BANKS, THE BANKS HAVE MUCH MORE FLEXIBILITY, BUT THIS IS A TECHNICAL ISSUE, AND WE MAY NEED TO COME BACK TO CONGRESS TO WORK WITH YOU ON A TECHNICAL FIX >> THANK YOU I’D LIKE TO HEAR ABOUT THAT I THINK THAT WE NEED TO DO IT BECAUSE I’M GRAVELY CONCERNED WITH THE RETAIL SHOPPING, THE HOTEL LODGING INDUSTRY AND THOSE ARE INDUSTRIES THAT ARE LARGELY GOING TO LAG BEHIND SOME OF THE BUSINESS STARTUPS THAT WE’RE SEEING IN SOME STATES SO I’D BE INTERESTED IN YOUR FEEDBACK I WAS ALSO KIND OF CURIOUS

ABOUT THE PROGRAM AND POTENTIALLY OTHER AREAS WHERE WE SHOULD EXPAND I’M THINKING ABOUT NEW ISSUES TO OUR MBS LOANS HAVE YOU THOUGHT ABOUT THAT AND HAVE YOU ALSO THOUGHT ABOUT — >> WE’VE THOUGHT ABOUT — WE’VE THOUGHT ABOUT ALL OF THOSE, AND I WOULD JUST SAY, YOU KNOW, I WANT TO THANK THE PEOPLE AT THE FED AND THE TREASURY WHO HAVE WORKED ROUND THE CLOCK TO GET THESE FACILITIES UP AND RUNNING WE’VE PRIORITIZED THESE, BUT I ASSURE YOU AS THE FED CHAIR AND I HAVE SAID, WE WILL LOOK AT ALL OF OUR OPTIONS TO MAKE SURE WE SUPPORT JOBS ACROSS THE SPECTRUM >> I’D PARTICULAR BE INTERESTED YOU DON’T HAVE TO EXPAND ON IT HERE, BUT ON NEW ISSUES, I’M VERY INTERESTED IN THAT, SEE WHAT YOU’RE GAMING OUT, WHAT YOU THINK IS IN THE REALM OF POSSIBILITIES CHAIRMAN POWELL, DO YOU HAVE ANYTHING TO ADD TO THAT? >> NO JUST AS OUR COMMITMENT AS THE SECRETARY SUGGESTED TO KEEP OUR MINDS OPEN AND LOOKING AT EVOLVING THOSE FACILITIES AS WE BURN MORE >> SECRETARY MNUCHIN, I HAVE ONE QUESTION FOR YOU, THEN A FINAL QUESTION FOR THE BOTH OF YOU I’M THINKING MORE ABOUT THE TAX BURDEN RIGHT NOW ON MIDDLE CLASS HOUSEHOLDS DO YOU THINK ANY OF OUR FUTURE WORK HERE SHOULD INCLUDE A TREATMENT OR MAYBE A REDUCTION IN TAX — THE TAX BURDEN FOR MIDDLE CLASS HOUSEHOLDS AND WHETHER OR NOT THAT WOULD BE HELPFUL? >> I THINK THAT’S SOMETHING THAT SHOULD BE SERIOUSLY CONSIDERED >> NOW, THE FINAL ONE THAT I HAVE, CHAIRMAN, I’M GOING TO KEEP — I HAVE A GROWING SENSE THAT WE HAVE A BIT OF A DOUGHNUT HOLE, SOME BUSINESSES THAT ARE NOT QUITE RIGHT FOR THE PAY CHECK PROTECTION PROGRAM BECAUSE OF THEIR SIZE, NOT QUITE BIG ENOUGH OR THE NATURE OF THEIR BUSINESS TO BE ELIGIBLE FOR THE UPCOMING MAIN STREET LENDING FACILITY, SO HAVE YOU ALL LOOKED AT, AND SECRETARY MNUCHIN, I APPRECIATE WHAT YOU SAID ABOUT THE EIGHT- WEEK COVER PERIOD I THINK THERE ARE A LOT OF MECHANICS IN THERE TO BE INCLUDED AS A FORGIVABLE PORTION OF THE PROCEEDS, ALL OF THAT WE NEED TO LOOK AT, WE NEED TO KNOW FAIRLY QUICKLY, WE KNOW THE COVER PERIOD IS GOING TO TAKE CONGRESSIONAL ACTION, BUT WHEN WE — THAT MAY FIX THE PROBLEM FOR SOME OF THESE PEOPLE AS I DESCRIBE AS BEING IN THE DOUGHNUT HOLE, BUT ARE YOU SEEING THAT RIGHT NOW? WE DON’T HAVE THE FULL INFORMATION ON THE MAIN STREET LENDING ACT, BUT I HAVE A FEELING THERE’S GOING TO BE SOME PEOPLE CAUGHT IN BETWEEN WHAT ARE YOUR THOUGHTS WE NEED TO DO THERE? THAT QUESTION IS FOR BOTH YOU AND SECRETARY POWELL >> I WOULD SAY OUR OBJECTIVE IS TO MAKE SURE THERE ARE PEOPLE THAT DON’T FALL OUT AND IN BETWEEN SO THE PPP, THE IDLE LOANS AND THE MAIN STREET PROGRAM, IT IS OUR OBJECTIVE TO TRY TO COVER AS MANY OF THOSE COMPANIES AS POSSIBLE >> IN FACT, THAT’S ONE OF THE REASONS WHY WE WENT TO A SMALLER MINIMUM LOAN LEVEL ON THE MAIN STREET FACILITY IN THE LAST TERM OF THE TERM SHEET >> THANK YOU, CHAIRMAN POWELL AND SECRETARY MNUCHIN I ALSO LOOK FORWARD TO SEEING THE MAIN STREET LENDING ACT MOBILIZED IN THE COMING COUPLE WEEKS THANK YOU THANK YOU, MR. CHAIR >> THANK YOU SENATOR VAN HOLLEN >> THANK YOU, MR. CHAIRMAN SECRETARY MNUCHIN, CHAIRMAN POWELL RECENTLY ACKNOWLEDGED THE NEED FOR ADDITIONAL FISCAL RELIEF AND JUST IN THIS HEARING ACKNOWLEDGED IN RESPONSE TO SENATOR MENENDEZ THAT STATE AND LOCAL LAYOFFS OF POLICE AND FIREFIGHTERS, FIRST RESPONDERS, TEACHERS WILL MAKE A BAD ECONOMIC SITUATION EVEN WORSE DO YOU AGREE WITH THAT ASSESSMENT? >> WELL, I’VE RECENTLY PROVIDED GUIDANCE ON THE $150 BILLION WE SENT TO THE STATES THAT THEY CAN USE THAT MONEY FOR POLICE, FIRE AND FIRST RESPONDERS WITHOUT RESTRICTIONS SO I HOPE THERE WOULD BE NO LAYOFFS AS A RESULT OF THAT RELIEF THAT WAS OUR OBJECTIVE >> RIGHT BUT IN ADDITION TO THEM — SO THAT JUST MOVES THE BURDEN ONTO OTHER PUBLIC SERVICE PROVIDERS, INCLUDING TEACHERS, HEALTHCARE WORKERS, PUBLIC HEALTHCARE WORKERS WOULDN’T YOU AGREE THAT LAYOFFS OF THOSE WORKERS OR ANY WORKERS JUST TAKES A BAD SITUATION AND MAKES IT WORSE? >> I THINK IT DOES, BUT I THINK THE QUESTION THAT CONGRESS AND THE SENATE NEEDS TO ADDRESS IS WHO SHOULD PAY FOR THAT, WHICH TAXING AUTHORITY, WHETHER IT’S THE STATES OR THE FEDERAL GOVERNMENT, AND I LOOK FORWARD TO WORKING WITH THE SENATE ON A BIPARTISAN BASIS TO ADDRESS THESE ISSUES >> WELL, SECRETARY MNUCHIN, YOU SAID WHICH TAXING AUTHORITY AS YOU KNOW, STATES THAT HAVE BALANCE BUDGET REQUIREMENTS THE FEDERAL GOVERNMENT DOESN’T, $3 TRILLION, IT SEEMS TO ME WE NEED TO TAKE ACTION HERE TO PREVENT A BAD SITUATION FROM GETTING WORSE LET ME ASK YOU ABOUT THE PPP PROGRAM, BIPARTISAN GROUP OF SENATORS HAVE WRITTEN AND SPOKEN TO YOU ABOUT SOME OF THE UNILATERAL AND UNNECESSARY CONDITIONS THE TREASURY REGULATION HAS IMPOSED ON PPP

IN FACT, THE SMALL BUSINESS ADMINISTRATION IG RECENTLY SAID THAT THE 25% LIMIT ON FORGIVENESS FOR FIXED COSTS DID, QUOTE, NOT ALIGN WITH THE LANGUAGE IN THE STATUTE THE SENATOR JUST RAISED ANOTHER ISSUE WHICH ISN’T A DESIGN FLAW IN THE STATUTE, IN MY VIEW, REGARDING THE JUNE 30th DEADLINE FOR QUALIFYING FOR BOTH FORGIVENESS THE HOUSE IN THE HEROS ACT PERFORMED BOTH OF THESE PROVISIONS DO YOU AGREE WITH THE CHANGES THAT THE HOUSE MADE IN THE HEROS ACT WITH RESPECT TO PPP? >> I’M NOT FAMILIAR WITH THEIR SPECIFIC LANGUAGE, BUT I’M HAPPY TO LOOK AT IT BUT I DO WANT TO COMMENT ON THE 75% ISSUE SBA WROTE BACK TO THE IG TO DISAGREE WITH THAT AND I’VE SPOKEN TO BOTH CARDIN AND MARCO RUBIO ON THIS THE PROGRAM WAS DESIGNED FOR EIGHT WEEKS PLUS OVERHEAD >> MR. SECRETARY, I KNOW WHAT YOUR POSITION IS I JUST WANTED TO HIGHLIGHT THE POSITION OF THE INSPECTOR GENERAL OF THE SBA, AND IN MY VIEW, YOU CAN’T FIND THAT 25% LIMITATION ANYWHERE IN THE STATUTE I CHALLENGE ANYONE TO TAKE A LOOK AND FIND IT THERE I WOULD ASK YOU TO TAKE A LOOK AT THE REBUILDING MAIN STREET INITIATIVE THAT A NUMBER OF US HAVE PUT FORWARD I DO THINK IT CAN GET BIPARTISAN SUPPORT AND LOOK FORWARD TO YOUR RESPONSES THERE LET ME TURN TO CHAIRMAN POWELL AND JUST SAY THAT I BELIEVE THAT OVERALL THE FED HAS ACTED QUICKLY AND FOR THE MOST PART NECESSARILY AND APPROPRIATELY BUT I HAVE SERIOUS CONCERNS ABOUT THE ACTIONS YOU’VE TAKEN WITH RESPECT TO THE SECONDARY MARKET FACILITY WITH RESPECT TO JUNK BONDS IN RESPONSE TO SENATOR SASSE, YOU EMPHASIZED THAT AT LEAST WITH THE HEALTH PROGRAM, YOU WERE ESSENTIALLY HELPING THOSE WITH AAA RATINGS BUT WHEN YOU LOOK AT THE SECONDARY MARKET FACILITY, YOU HAVE PURCHASED JUNK BONDS, AND WE HAVE THIS STRANGE SITUATION WHERE THE SAME DAY WE HAD UNPRECEDENTED DAMAGE IN TERMS OF UNEMPLOYMENT NUMBERS, THE STOCK MARKET WAS IN FACT GOING UP, AND YOU POINTED OUT THAT, YOU KNOW, MOST OF THE PEOPLE BEING HURT ARE THOSE EARNING LESS THAN $40,000 A YEAR, IN FACT, 40% OF THEM HAVE LOST JOBS AND IT’S NOT CLEAR TO ME WHY PUTTING MONEY INTO JUNK BONDS IS HELPING FOLKS ON MAIN STREET IN FACT, IT PUTS THE PUBLIC IN A FIRST LOSS POSITION BEHIND EVEN THE MOST SUBORDINATED BOND HOLDER AND REQUIRES THE FUNDS TO TAKE ON YEARS, EVEN DECADES OF CASH FLOWS WITH THE PRICE RISK CAN YOU RESPOND TO THAT CONCERN? >> I’D BE GLAD TO SO THE ONLY HIGH-YIELD BONDS WE CAN BUY IS OF THOSE COMPANIES THAT WERE INVESTMENT GRADE ON MARCH 22 BUT HAVE BEEN DOWNGRADED, SO-CALLED FALLEN ANGELS THESE ARE VERY MUCH U.S COMPANIES WITH MANY, MANY THOUSANDS OF EMPLOYEES, AND WE MADE THEM ELIGIBLE FOR THE INVESTMENT GRADE FOR THE PRIMARY MARKET CREDIT FACILITY, AND WE DON’T WANT TO HAVE, YOU KNOW, A CLIFF THERE WHERE THE INVESTMENT-GRADE MARKETS ARE WORKING WELL, BUT THE LEVERAGE MARKETS ARE NOT SO WE MADE A VERY LIMITED NARROW SET OF ACTIONS TO SUPPORT MARKET FUNCTION IN THOSE MARKETS, INCLUDING BUYING ETFs, EXCHANGE FUNDS THAT’S A PORTFOLIO AND THAT’S HAD AN EFFECT TO IMPROVE MARKET FUNCTION THERE WE MAY HAVE TO BE LENDING MONEY TO THOSE COMPANIES, BUT EVEN BETTER, THEY CAN BORROW THEMSELVES NOW, AND A LOT OF THAT HAS BEEN HAPPENING, AND THAT’S A REALLY GOOD THING THAT’S KIND OF WHY WE DID IT AND IT’S A FAIRLY NARROW INTERVENTION WE’RE NOT BUYING JUNK BONDS GENERALLY ACROSS THE BOARD AT ALL >> MR. CHAIRMAN, IF I COULD JUST FOLLOW UP BRIEFLY I THINK A LOT OF THOSE BONDS WERE ALREADY IN TROUBLE BEFORE THE INTERVENTION, AND THEIR TROUBLE WAS NOT DIRECTLY RELATED TO THE PANDEMIC AND IF YOU COULD GET BACK TO ME AND JUST SHOW ME WHERE THE FED HAS THE AUTHORITY TO PURCHASE THIS KIND OF LOWER, BELOW INVESTMENT-GRADE INSTRUMENTS, I’D APPRECIATE IT THANK YOU >> SENATOR KENNEDY >> CHAIRMAN POWELL, DO YOU BELIEVE THAT STATES AND CITIES ARE GOING TO EXPERIENCE REVENUE SHORTFALLS AS A RESULT OF THE ECONOMIC LOCKDOWN TO TRY TO CONTAIN THE SPREAD OF THE CORONAVIRUS? >> YES, SENATOR, I DO THINK THAT’S WHAT WE’RE SEEING >> DO YOU THINK THEY’RE GOING TO BE SUBSTANTIAL? >> YES, I DO

>> IS YOUR MUNICIPAL LIQUIDITY FACILITY SET UP? >> YES, IT IS WELL, WE’RE PROBABLY 10 DAYS AWAY, TWO WEEKS AWAY FROM IT ACTUALLY BEING OPERATIONAL NOT QUITE YET THEN IS THE ANSWER >> AND AS I UNDERSTAND IT, YOU BASICALLY WILL BUY SHORT-TERM PAPER LIKE REVENUE ANTICIPATION NOTES FROM THE STATES WHICH WILL ALLOW THOSE STATES TO ISSUE THAT SHORT-TERM PAPER AT A LOWER INTEREST RATE, AM I CORRECT? >> WELL, THEY WILL BE ABLE TO ISSUE IT AT ALL IN MANY CASES SO, YES, WE’RE SUPPORTING MARKET FUNCTION THERE AND, BY THE WAY, THAT SHOULD SUPPORT MARKET FUNCTION ACROSS THE MUNICIPAL MARKETS IN LONG- TERM MATURITIES TOO >> DO YOU KNOW HOW MANY STATES ARE PROHIBITED BY THEIR CONSTITUTION FROM BORROWING MONEY TO PAY FOR OPERATING EXPENSES? >> I THINK 49 STATES HAVE A BALANCED BUDGET AMENDMENT, OR BALANCED BUDGET REQUIREMENT >> YES, SIR BUT A LOT OF STATES HAVE IN THEIR STATE CONSTITUTIONS, THEY’RE PROHIBITED FROM BORROWING MONEY TO OPERATE GOVERNMENT THEY CAN BORROW MONEY TO BUILD THINGS, BUT NOT TO OPERATE GOVERNMENT, ARE YOU YEAR OF THAT? >> WELL, I THOUGHT MOST STATES COULD BORROW DURING THE COURSE OF A YEAR FOR MATURITIES OF LESS THAN A YEAR TO SMOOTH OUT THE INFLOW OF CASH, REVENUE ANTICIPATION NOTES, TAX ANTICIPATION NOTES >> RIGHT HAVE YOU HAD A LOT OF INQUIRIES ABOUT THE MUNICIPAL LIQUIDITY FACILITY? >> YES, SENATOR, WE SURE HAVE >> OKAY SECRETARY MNUCHIN, DO YOU AGREE WITH WHAT THE CHAIRMAN SAID? >> YES >> OKAY LET ME OFFER YOU AN OBSERVATION, MR. SECRETARY I’M NOT EXPECTING YOU TO COMMENT ON IT IT LOOKS TO ME LIKE THE GAME PLAN IS TO HAVE SENATOR McCONNELL, SENATOR SCHUMER, LEADER McCARTHY, SPEAKER PELOSI AND YOU GO OFF AND NEGOTIATE A DEAL ON THE NEXT PACKAGE IF THERE IS ONE, AND THEN YOU WILL BRING THAT DEAL BACK TO THE REPUBLICANS AND DEMOCRATS IN BOTH HOUSES AND IF THE PAST IS ANY INDICATION, THE REPUBLICANS AND DEMOCRATS IN BOTH HOUSES WHO DON’T GET TO ANTICIPATE IN THE NEGOTIATIONS WILL MOAN AND GROAN AND COMPLAIN AND THEN MOO AND FOLLOW THEIR LEADERS I’M NOT SURE THAT’S GOING TO WORK THIS TIME I THINK THAT WHATEVER DEAL YA’LL COME UP WITH IS GOING TO RECEIVE SERIOUS PUSHBACK FROM BOTH REPUBLICANS AND DEMOCRATS IN BOTH HOUSES FOR A VARIETY OF REASONS I COULD, OF COURSE, BE WRONG, BUT I DOUBT IT WHY WOULD WE NOT AGREE TO ALLOW THE STATES TO USE THE $150 BILLION THAT WE HAVE ALREADY APPROPRIATED TO THEM TO ADDRESS SHORTFALLS IN THEIR REVENUE BASE AS A RESULT OF THE CORONAVIRUS? >> WELL, SENATOR KENNEDY, I JUST WANT TO COMMENT ON THE FIRST THING I HAVE NO INTENTION OF DOING WHAT YOU’VE JUST DESCRIBED, NOR DO I — >> IT’S BEEN DONE IN THE PAST IT WAS DONE LAST TIME I’M NOT BEING CRITICAL OF YOU >> IN ALL FAIRNESS, SENATOR KENNEDY, THERE WERE AT LEAST 20 OR 30 SENATORS OF BOTH REPUBLICANS AND DEMOCRATS THAT PARTICIPATED IN THE DETAILED ANALYSIS OF THE LAST BILL >> WELL, I UNDERSTAND BUT THERE ARE A LOT MORE MEMBERS OF THE HOUSE AND THE SENATE AND I’M NOT BEING CRITICAL I’M JUST TELLING YOU, THAT’S THE WAY IT WORKS AROUND HERE, AND WE ALL KNOW IT WHY WOULD YOU BE SUPPORTED — WE’VE ALREADY SPENT $150 BILLION IN THE CARES ACT THE STATES HAVE IT WE KNOW THEY’RE GOING TO HAVE SHORTFALLS WE MAY NOT BE ABLE TO PASS ANOTHER BILL I THINK IT’S LESS THAN 50% CHANCE WE’RE PASSING ANOTHER BILL WHY WOULD WE NOT ALLOW STATES WITHOUT APPROPRIATING ANY NEW MONEY TO USE THAT MONEY TO ADDRESS REVENUE SHORTFALLS THAT YOU AND THE CHAIRMAN OF THE FED BOTH AGREE ARE GOING TO EXIST AND BE SUBSTANTIAL, AND WHY WOULD WE NOT DO THAT TODAY? >> WELL, SENATOR KENNEDY, I APPRECIATE YOUR BILL, AND I KNOW I HAD THE OPPORTUNITY TO MEET WITH YOU AND OTHER SENATORS WITH THE PRESIDENT, AND IF THERE’S BIPARTISAN SUPPORT FOR THAT, I’M SURE THAT THE PRESIDENT AND I WOULD LOOK FORWARD TO THAT

>> WHAT WOULD — WHAT WOULD IT TAKE FOR YOU TO AGREE TO SUPPORT IT? HOW DO I DEMONSTRATE BIPARTISAN SUPPORT? >> AGAIN, I THINK I HAVE A CALL SCHEDULED WITH YOU LATER TODAY SO I’M HAPPY TO TALK TO YOU MORE ABOUT IT BUT, AGAIN, I THINK THE PRESIDENT AND I HAVE SAID IF THERE IS BIPARTISAN SUPPORT FOR THIS AND THE MONEY HAS ALREADY BEEN ALLOCATED, THAT IS SOMETHING THAT I ASSUME WE’D VERY SERIOUSLY GO ALONG WITH BUT, AGAIN, THERE HAS TO BE BROAD BIPARTISAN SUPPORT >> RIGHT HOW ABOUT IF THERE WERE — HOW ABOUT IF THERE WERE 60 VOTES IN THE SENATE, WOULD YOU CONSIDER THAT BIPARTISAN SUPPORT? >> WOULD YOU PLEASE BE BRIEF? >> AGAIN, I WOULD JUST SAY — >> HOW MUCH TIME DO I HAVE? >> YOU’RE A MINUTE AND 15 SECONDS OVER >> I’M SORRY I CAN’T SEE MY CLOCK >> WE’RE GONNA HAVE TO FIGURE THAT OUT SEVERAL HAVE HAD THAT PROBLEM >>AGAIN, I LEAVE THE DETAILS UP TO YOU AND THE SENATORS THERE I APPRECIATE THE UNANIMOUS SUPPORT WE HAD PREVIOUSLY BUT I LEAVE THAT TO YOU >> I’M SORRY I WENT OVER, MR CHAIRMAN >> NO PROBLEM SENATOR CORTEZ CAN YOU SEE YOUR CLOCK? >> THANKS FOR JOINING US LET ME START WITH CHAIRMAN POWELL CHAIRMAN POWELL, INTERESTING CONVERSATION YOU WERE HAVING WITH SENATOR SCHAATZ ON THE LIQUIDITY PROBLEMS VERSUS THE INSOLVENCY PROBLEMS I KNOW THAT YOU NOTED SOME OF THE HOSPITALITY SECTOR AND AIRLINES ARE IN ROUGH FINANCIAL SHAPE BECAUSE I COME FROM NEVADA AND IT IS A HOSPITALITY-GENERATED STATE WHERE WE GET MOST OF OUR REVENUE CAN YOU SPEAK TO THE CHALLENGES THAT HOSPITALITIES AND TOURISM SECTORS FACE RIGHT NOW? >> SURE SO I THINK SECTORS OF THE ECONOMY LIKE THAT WHERE THE BUSINESS MODEL IS TO GATHER PEOPLE IN ONE PLACE AND ENTERTAIN THEM, FEED THEM, FLY THEM AROUND, WHATEVER YOU’RE GOING TO DO, THOSE ARE SECTORS WHERE IT WILL TAKE SOME TIME FOR I THINK THE PUBLIC TO RETURN THAT’LL HAPPEN, BUT IT’LL TAKE SOME TIME FOR THE PUBLIC TO REGAIN CONFIDENCE AND, YOU KNOW, ADAPT TO THE NEW WORLD AND START TRAVELING, TAKING VACATIONS, GOING TO RESTAURANTS, THINGS LIKE THAT >> AND I’M GLAD YOU BROUGHT THAT UP BECAUSE THAT’S ONE THING WE HAVEN’T TALKED ABOUT IS THIS NOTION THAT WHEN WE LOOK TO OPEN OUR BUSINESSES, AND I THINK WE ALL — IN A BIPARTISAN WAY, THAT’S WHAT WE WANT, WE GOTTA FIND THIS BALANCE ABOUT OPENING OUR BUSINESSES IN GENERAL BUT THERE ARE ONLY GOING TO BE AS SUCCESSFUL AS THE CUSTOMER CONFIDENCE THAT IS THERE TO PATRONIZE THOSE BUSINESSES, AND THAT’S NOT JUST TRUE FOR THE HOSPITALITY INDUSTRY THAT IS TRUE FOR ALL BUSINESSES I DO KNOW THAT THE SERVICE AND RETAIL HAS BEEN HARDEST HIT MY UNDERSTANDING FROM SOME OF THE DATA I’VE SEEN, PERCENT OF THOSE BUSINESSES HAVE CLOSED PERMANENTLY ALREADY AND SO HOW HAVE — HOW ARE WE TO ADDRESS THIS CONSUMER CONFIDENCE ISSUE? BECAUSE I KNOW THAT IS SOMETHING THAT YOU’VE THOUGHT ABOUT AND TALKED ABOUT PUBLICLY, WHAT SHOULD THEY BE DOING? >> ONE THING I’LL SAY IS THAT IT AFFECTS DIFFERENT SECTORS OF THE ECONOMY DIFFERENTLY OTHER SECTORS OF THE ECONOMY MAY BE ABLE TO RECOVER MUCH MORE QUICKLY, AND WE CERTAINLY HOPE SO BUT, YOU KNOW, THE NUMBER ONE THING OF COURSE IS PEOPLE BELIEVING THAT IT’S SAFE TO GO BACK TO WORK SO THEY CAN GO OUT, AND THAT’S ABOUT HAVING A SENSIBLE, THOUGHTFUL REOPENING OF THE COUNTRY, SOMETHING WE ALL WANT AND SOMETHING THAT WE’RE IN THE EARLY STAGES OF NOW THAT’S WHAT IT WILL TAKE FOR PEOPLE TO REGAIN CONFIDENCE I THINK AND RESUME THEIR ACTIVITIES, AGAIN, AT A DIFFERENT PACE DEPENDING ON THE NATURE OF THE BUSINESS, THE NATURE OF THE ACTIVITY >> RIGHT AND THE HEALTHCARE PIECE OF IT, RIGHT? IF HEY FEEL SAFE GOING BACK OUT, IF THEY FEEL SAFE THAT THEY’RE GOING TO BE HEALTHY AND SAFE WHEN THEY GO INTO THOSE ESTABLISHMENTS, ISN’T THAT TRUE? >> IT’LL BE A COMBINATION OF GETTING THE VIRUS UNDER CONTROL, DEVELOPMENT OF THERAPEUTICS, DEVELOPMENT OF A VACCINE, ALL OF THOSE THINGS AND ALSO I THINK JUST, YOU KNOW, SEEING WHAT YOUR EYES ARE TELLING YOU PEOPLE — YOU CAN FEEL IT ALREADY THAT PEOPLE ARE DOING THINGS THAT THEY WOULDN’T HAVE BEEN DOING TWO MONTHS AGO, A LITTLE BIT AT A TIME, AND I THINK THAT PROCESS WILL TAKE TIME >> UNTIL THAT HAPPENS, AND THEN MANY PEOPLE ARE RELYING ON THEIR LOCAL GOVERNMENTS AND STATE GOVERNMENT AS THEIR SOCIAL SAFETY NET, RIGHT? THEY’RE TELLING THEM LOOKING TO LOCAL GOVERNMENT, STATE GOVERNMENT TO TELL THEM HOW THEY CAN STAY SAFE OPENING BUSINESSES WHERE THE HEALTHCARE FACILITIES ARE, HOW THEY CAN GET TESTING THAT IS NEEDED AND CONTACT TRACING, ISN’T IT TRUE THAT THAT’S WHERE THEY RELY WOULD BE ON THEIR LOCAL GOVERNMENTS? >> YES I THINK THAT’S WHERE THE DECISIONS WILL BE MADE IS AT STATE AND LOCAL GOVERNMENT ALSO BUSINESSES, INDIVIDUAL BUSINESSES WE TALK TO A LOT OF BUSINESSES AND NOP PROFITS AND LEADERS IN ALL THOSE AREAS, WHAT I FEEL

LIKE IS CERTAINLY FOR THE LARGER ONES, THERE’S A VERY THOUGHTFUL PROCESS GOING ON ABOUT THIS BUT ULTIMATELY PEOPLE WILL MAKE THEIR OWN MINDS UP YOU KNOW, YOU CAN CHANGE THE FORMAL SOCIAL DISTANCING MEASURES BUT ULTIMATELY PEOPLE ARE GOING TO DECIDE WHAT THEY SHOULD AND SHOULDN’T DO WITH THEMSELVES AND WITH THEIR FAMILIES AND I THINK THAT WILL BOIL DOWN TO HAVING PRETTY GOOD CONFIDENCE THAT IT’S SAFE TO GO OUT >> YEAH AND I AGREE WITH YOU AND I ALSO KNOW AT LEAST IN MY STATE THAT MANY ARE WAITING AND RELYING ON THEIR STATE AND LOCAL GOVERNMENTS TO WEIGH IN AND HELP THEM MAKE THOSE DETERMINATIONS AND SET THOSE GUIDELINES AND MAKE SURE THEIR COMMUNITIES ARE SAFE THAT’S WHY FUNDING FOR OUR STATE AND LOCAL GOVERNMENTS ARE SO IMPORTANT, AND I CANNOT STRESS THAT ENOUGH, NOT ONLY IN THE NEXT FISCAL PACKAGE THAT NEEDS TO COME INTO STATE AND LOCAL GOVERNMENTS, BUT YOU ALSO TOUCHED ON IT, THE MUNICIPAL LENDING FACILITY I WOULD LIKE TO SEE MORE OF THAT AVAILABLE TO SMALLER POPULATED STATES AND LOCAL GOVERNMENTS NEVADA HAS 3 MILLION POPULATION THERE HAS TO BE A WAY TO ALSO GIVE THEM THE OPPORTUNITY TO GET THE LIQUIDITY OR THE FUNDS THAT THEY NEED TO ENSURE THAT THEY ARE PROVIDING THAT SAFETY NET, SOCIAL SAFETY NET TO CONSUMERS IN GENERAL I KNOW MY TIME IS UP SECOND MNUCHIN, I HAVE QUESTIONS FOR YOU AS WELL I WILL SUBMIT THOSE FOR THE RECORD THANK YOU, BOTH, FOR JOINING US TODAY >> THANK YOU BEFORE I MOVE TO SENATOR McSALLY, I’LL ANNOUNCE TO THOSE REMAINING THAT A VOTE STARTED ABOUT 10 MINUTES AGO, AND WE STILL HAVE A NUMBER LEFT TO GO SO I ASK YOU TO PLEASE PAY ATTENTION TO THE CLOCK SORRY IT JUST TURNS OUT THIS WAY AT THE END OF THESE HEARINGS SENATOR McSALLY >> THANK YOU, MR. CHAIRMAN CHAIRMAN POWELL, SECRETARY MNUCHIN, GOOD TO SEE YOU VIRTUALLY I WANT TO TALK ABOUT CHINA AS WE KNOW, THEY UNLEASHED THIS VIRUS ON AMERICA AND THE WORLD WITH THEIR CLASSIC COMMUNIST COVERUP, DECEPTION, CONTINUED PROPAGANDA CAMPAIGN, COSTING NOW OVER 90,000 AMERICAN LIVES, 35,000 MILLION AMERICANS LOSING THEIR JOBS SO FAR WE DON’T KNOW WHO PATIENT ZERO IS THEY DESTROYED SAMPLES, THEY SILENCED DOCTORS, KICKED OUT JOURNALISTS, IMPACTED TRAVEL, INTERNATIONAL TRAVEL TO CEDE THIS AND THEIR RECKLESS BEHAVIOR CONTINUES TO BE THE ROOT OF ALL THIS AS YOU KNOW, THIS IS WHY WE’RE HERE TODAY WE’RE TALKING ABOUT THE ECONOMY WHICH WAS VERY STRONG, NOW REALLY STRUGGLING PEOPLE ALL OVER ARIZONA ARE REALLY STRUGGLING BECAUSE OF THE CALAMITY THAT’S COME FROM THIS VIRUS SO I WANT TO — I DON’T THINK ANYBODY, I SHOULD SAY, ACTUALLY, LET ME JUST ASK, I DON’T THINK EITHER OF YOU THINK THERE’S ANY REASON WE SHOULD SHALL REWARDING CHINA OR CHINESE STATE-OWN ENTERPRISES OR ENTITIES THAT WANT CHINA TO PROSPER AS WE IMPLEMENT THAT’S MASSIVE INITIATIVES TO SUPPORT THE ECONOMY IS IT FAIR TO SAY THAT NEITHER OF YOU WANT THAT TO HAPPEN? >> THAT’S CORRECT >> CHAIRMAN POWELL? >> SENATOR McSALLY, THAT’S REALLY NOT A QUESTION FOR ME WE’RE IN THE ECONOMIC RESPONSE TO THIS >> I KNOW BUT NONE OF US AS AMERICANS WANT TO SEE CHINA OR CHINESE- OWNED ENTERPRISES PROSPERING SO I WANT TO TALK ABOUT A COMPANY CALLED BLACK ROCK ON MARCH 24th, THE FEDERAL RESERVE BANK OF NEW YORK RETAINED BLACK ROCK AS THE FINANCIAL AGENT TO OPERATIONALIZE AND TRANSACT WITH PRIMARY DEALERS IN THE PRIMARY MARKET CORPORATE CREDIT FACILITY AND THE SECOND MARKET CORPORATE CREDIT FACILITY AS YOU KNOW, THESE FACILITIES SERVE AS MARKETS FOR COMPANIES TO APPLY FOR BONDS AND OBTAIN LOANS DURING THIS DOWNTURN TYPICALLY THERE’S A COMPETITION, A COMPETITIVE BIDDING PROCESS, BUT BLACK ROCK WAS SELECTED FOR THIS ONE AS YOU PROBABLY KNOW, BLACK ROCK IS ONE OF THE LEADING INVESTMENT BANKS IN CHINESE FUNDS, INCLUDING HELPING CHINESE COMPANIES LIST AND GO PUBLIC ON AMERICAN STOCK EXCHANGES CHINESE COMPANIES LISTED ON AMERICAN EXCHANGES ARE PROHIBITED — OR PROHIBIT THE PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD OR THE PCAOB FROM REVIEWING THEIR AUDIT REPORTS BLACK ROCK’S WEBSITE, THEY HAVE A PAGE TITLED FIVE MYTHS AND REALITIES ABOUT INVESTING IN CHINA ACCORDING TO BLACK ROCK, ONE OF THE BIGGEST MYTHS ABOUT CHINA IS THAT CHINESE STATE-OWNED ENTERPRISES DON’T CONTROL THEIR ECONOMY BLACK ROCK EVEN TRIES TO BACK THAT UP WITH DATA I I WON’T GO INTO ALL OF IT, BUT IT’S RIDICULOUS BLACK ROCK OWED TO CHINA, DOESN’T MENTION ANYTHING ABOUT HUMAN RIGHTS ABUSES, RESPONSE TO THE HONG KONG DEMOCRACY PROTEST OR EVEN THAT THE COUNTRY IS RULED BY A ECONOMIST PARTY IRONIC THAT ONE OF THE WORLD’S LARGEST INVESTMENT BANKS AND ALLEGEDLY A STAPLE OF FREE MARKETS NEGLECTS TO MENTION THE FACT THAT COMMUNISTS ACTUALLY RUN CHINA, AND ALL WHILE REFUSING TO INVEST IN A NUMBER OF LEGITIMATE AND LEGAL INDUSTRIES HERE IN AMERICA, BUT THAT’S A SEPARATE ISSUE SO MY QUESTION IS HOW AND WHY DID BLACK ROCK GET SELECTED AS A FINANCIAL AGENT FOR THESE FACILITIES? HOW MUCH MONEY DO THEY STAND TO MAKE AS THE AGENT, AND WHAT, IF ANYTHING, WILL PREVENT BLACK ROCK FROM TAKING THEIR PROFITS THAT THEY EARNED TO INVEST IN THEIR INTEREST IN CHINA AND CHINESE STATE-OWNED ENTERPRISES?

>> SO I GUESS I’LL TAKE THAT WE HIRED BLACK ROCK FOR THEIR EXPERTISE IN THESE MARKETS THEY’RE ACTUALLY AN ASSET MANAGER THEY ARE A VERY LARGE ASSET MANAGER WHICH IS ACTIVE IN THE MARKETS THAT WE’RE CONCERNED WITH WITH THE PRIMARY MARKET AND SECONDARY MARKET AND CREDIT FACILITIES IT WAS DONE VERY QUICKLY DUE TO THE URGENCY AND THE NEED FOR THEIR EXPERTISE WE WILL REBID THE CONTRACT AS WE IN PRACTICE DO GOING FORWARD >> YEAH >> AND SO THAT’S WHERE THAT IS THE FEES ARE A MATTER OF PUBLIC RECORD AND WE’LL BE HAPPY TO SUPPLY THOSE TO YOU >> BUT WHAT, IF ANYTHING, CAN WE DO TO PREVENT ANY OF THEIR PROFIT FROM THIS TO ACTUALLY BENEFIT CHINA AND CHINESE STATE- OWNED COMPANIES WHICH THEY’RE SEVERELY INVESTED IN? >> I WOULD JUST SAY THIS, ALL LARGE ASSET MANAGERS BY CHINESE SECURITIES THESE ARE GLOBAL ASSET MANAGERS I’M NOT HERE TO DEFEND OR CRITICIZE THEM FOR THAT IT’S JUST IT’S NOT REALLY RELEVANT TO THE WORK WE WANT THEM TO DO WHAT WE’RE TRYING TO DO IS CREATE CONDITIONS IN WHICH U.S WORKERS CAN KEEP THEIR JOBS OR RETURN TO THEM AND THAT’S WHAT OUR SOLE FOCUS IS WE’RE NOT TRYING TO REACH OUT FOR OTHER PUBLIC POLICY OBJECTIVES OR DEVIATE FROM THAT WE HAVE REALLY A LASER FOCUS ON THAT, AND WE CONCLUDED THAT THIS COMPANY WAS THE RIGHT ONE TO BE OUR FISCAL AGENT IN THIS PLACE THEIR VIEWS ON ANYTHING ELSE ARE REALLY NOT IMPORTANT úWHAT EVERYTHING WE CAN TO SUPPORT THE UNITED STATES >> LET ME JUST SAY, IT’S IMPORTANT TO ALL OF US AND THANK YOU FOR YOUR LEADERSHIP ON THIS TO SUPPORT OUR ECONOMY, TO SUPPORT JOBS, TO GET OUR ECONOMY BACK ON TRACK BUT IT’S ALSO IMPORTANT THAT WE WAKE UP AS AMERICANS, THAT WE HOLD CHINA ACCOUNTABLE, AND THAT THEY DON’T — THEY’RE NOT ALLOWED TO PROFIT BECAUSE OF THESE INVESTMENTS TAXPAYERS HAVE MADE SO I’M GOING TO FOLLOW UP WITH YOU ON THESE ISSUES I REALLY THINK BLACK ROCK AND OTHERS NEED TO ALSO WAKE UP AND DO THEIR PATRIOTIC DUTY, SEE WHAT’S GOING ON HERE CHINA, COMMUNIST CHINA SHOULD NOT BE PROFITING OFF OF UNLEASHING THIS CALAMITY ON THE WORLD, AND THAT SHOULD BE SOMETHING THAT SHOULD UNITE ALL AMERICANS, EVEN IF THEY WORK AT BLACK ROCK >> THANK YOU SENATOR JONES >> THANK YOU, MR. CHAIRMAN QUICKLY I’LL FOLLOW UP I AGREE THAT WE NEED TO HOLD ALL PEOPLE ACCOUNTABLE, CHINA, THE W.H.O., FOLKS IN THIS ADMINISTRATION, EVERYBODY NEEDS TO BE HELD ACCOUNTABLE IF THEY HAD DEFICIENCIES IN WHAT WAS GOING ON IN THIS PANDEMIC SO, SECRETARY MNUCHIN, LET ME SAY I SAW RECENTLY THAT THE TREASURY IS GOING TO BEGIN ISSUING DEBIT CARDS FOR AMERICANS FOR THEIR DIRECT PAYMENTS YOU WILL RECALL THAT SENATOR COTTON AND I SENT A LETTER SHORTLY AFTER THE PASSAGE OF THE CARES ACT ENCOURAGING THAT SO I APPRECIATE YOUR WILLINGNESS TO DO THAT I THINK IT’S GOING TO QUICKLY GET MONEY TO MILLIONS OF AMERICANS THAT HAVEN’T RECEIVED THOSE DIRECT PAYMENTS AS OF YET I ALSO WANTED TO ASK YOU ABOUT THE PAYROLL PROTECTION PROGRAM AS WE’VE TALKED ABOUT A LITTLE BIT EARLY ON IN THE FIRST ROUND OF FUNDING, THERE WERE SOME PROBLEMS WITH THE BANKS, AND THERE WERE UNDERSERVED COMMUNITIES THAT ARE NOT GETTING THEIR FUNDS AND I THINK WE’VE TRIED TO CORRECT THAT AND DOING MUCH BETTER BUT THE SBA INSPECTOR GENERAL ISSUED A REPORT IN THE WAKE OF THAT THAT RECOMMENDED THAT THE AGENCY START COLLECTING DEMOGRAPHIC INFORMATION ON WHO GOT THOSE LOANS CAN YOU COMMIT TO WORK WITH THE SBA ADMINISTRATOR TO MAKE COLLECTING DEMOGRAPHIC INFORMATION MANDATORY FOR THESE PPP LOANS SO THAT THERE IS THAT MUCH NEEDED TRANSPARENCY? >> WELL, I CAN TELL YOU IN THE FORMS THAT THE LENDERS ARE REQUIRED, THERE IS DEMOGRAPHIC INFORMATION WE’VE BEEN ADVISED TO MAKE THAT OPTIONAL AND NOT MANDATORY BUT WE VERY MUCH HOPE THAT PEOPLE PROVIDE THAT AND LET ME JUST SAY WE’RE VERY MUCH COMMITTED TO MAKE SURE THAT WE SERVE THE UNDERSERVED COMMUNITIES WITH THE MONEY WE HAVE LEFT >> GREAT THANK YOU CHAIRMAN POWELL, YOU KNOW, I ALSO SAW YOUR SPEECH AND READ YOUR COMMENTS, SAW THE “60 MINUTES” PIECE, AND IT KIND OF REMINDS ME OF LISTENING TO SOME OF THE COMMENTS ABOUT THIS, IT’S WHA JUDGE TAYLOR IN “TO KILL A MOCKINGBIRD” SAID, THEY’RE GONNA HEAR WHAT THEY WANT TO HEAR AND SEE WHAT THEY WANT TO SEE WHAT I HEARD WAS A CALL TO ACTION FOR THAT AND WHAT I SEE IS THAT 40% OF AMERICANS WHO HAVE LOST THEIR JOBS AND HOW IT’S AFFECTING OUR MINORITY COMMUNITIES, NOT ONLY IN THEIR HEALTH AND THE DISPARITIES, WHAT IS BEING SHOWN A SPOTLIGHT IS THE DISPARITIES ON SO MANY THINGS AND YOU MENTIONED HOW THIS PANDEMIC CAN EXACERBATE THE EXISTING GAP OF WEALTH AND ASSETS AND OWNERSHIP BETWEEN MINORITIES AND EVEN JUST POOR PEOPLE IN GENERAL WE STARTED THIS PANDEMIC WITH ABOUT 40 MILLION POOR PEOPLE IT’S GOING TO GET MUCH BETTER THAN THAT, AND IT’S GOING TO BE A CALL FOR RACIAL LINES WHAT CAN WE DO TO TRY TO NARROW THAT GAP, TO MAKE SURE THAT THE WEALTH GAP DOES NOT EVEN GET

GREATER AS WE OPEN BACK UP THIS ECONOMY? >> >> WELL, THE JOB LOSSES THAT HAVE BEEN HAPPENING IS HAPPENING PARTICULARLY IN THE SERVICE INDUSTRY WHERE YOU’RE DEALING DIRECTLY WITH PEOPLE THAT MEANS A LOT OF LESS WELL PAYING JOB I RECOMMEND, BY THE WAY, THAT REPORT, SURVEY OF HOUSEHOLD ECONOMIC DECISION MAKING WHICH RELEASED IT AND THAT’S WHERE THE STATISTICS COME FROM THERE’S A LOT IN THERE AND IT’S STUNNING HOW QUICKLY HOUSEHOLDS GET INTO FINANCIAL TROUBLE, HOW MANY LOWER INCOME HOUSEHOLDS HAVE IN THE WAY OF FINANCIAL RESOURCES THESE ARE LONGER TERM PROBLEMS TO DEAL WITH I THINK FOR NOW THIS VERY MUCH CALLS ON US TO DO WHAT WE CAN TO SUPPORT THE ECONOMY AND, AS I MENTIONED EARLIER, WE HAVE 20 SOME MILLION PEOPLE OUT OF WORK WE WANT TO DO EVERYTHING WE CAN TO CREATE A WORLD WHERE THEY CAN GO BACK TO THEIR JOBS OR FIND NEW JOBS, AND I THINK THAT’S SOMETHING ALL OF US AS POLICY MAKERS SHOULD BE STRONGLY FOCUSED ON >> WELL, THANK YOU FOR THAT AND IT SEEMS TO BE CONNECTED TO YOUR COMMENTS OF ALSO MAKING SURE THAT WE KEEP PEOPLE IN THEIR LIVELIHOODS, TO KEEP THE UNEMPLOYMENT NUMBERS DOWN YOU KNOW, I THINK FROM OUR STANDPOINT WE HAVE BEEN FOCUSED ON BOTH SAVING LIVES AND SAVING LIVELIHOODS AND WHILE WE DON’T WANT TO GIVE UNEMPLOYMENT, WE CERTAINLY DO WANT TO GIVE INCENTIVES TO BUSINESSES TO OPEN CAREFULLY I WOULD ENCOURAGE YOU IF YOU HAVEN’T TO LOOK AT THE PAY CHECK SECURITY PROGRAM THAT SENATOR WARNER AND OTHERS ARE GOING TO BE FILING THIS WEEK SO THAT WE CAN GIVE THESE OPPORTUNITIES BECAUSE I’M ASSUMING THAT THE MORE OPPORTUNITIES WE CAN GIVE EMPLOYERS TO KEEP PEOPLE ON THEIR PAYROLL WITH BENEFITS THAT WOULD AID IN OPENING UP THE ECONOMY SAFELY AND TRYING TO KEEP US FROM GETTING INTO THAT LONG-TERM RECESSION WOULD THAT BE FAIR? >> I’LL BE HAPPY TO TAKE A LOOK AT YOUR LEGISLATION PROPOSAL >> GREAT THANK YOU, MR. CHAIRMAN, I APPRECIATE THE OPPORTUNITY THANK YOU FOR COMING, MR SECRETARY AND MR. CHAIRMAN >> THANK YOU SENATOR MORAN >> SENATOR, THANK YOU HAD I HAD MORE TIME, I WOULD EXTOL THE VIRTUES OF BOTH THE SECRETARY, THE CHAIRMAN AND THEIR TEAM IN THE ABSENCE OF THAT TIME, I HOPE YOU UNDERSTAND THE SENTIMENTS THAT THAT SENTENCE EXPRESSES BUT I WANT TO FOCUS I GUESS SECRETARY MNUCHIN, WE’VE TALKED ABOUT PPP AND WE’VE SEEN THE CONSEQUENCES, THE POSITIVE CONSEQUENCES THAT HAVE COME FROM THE PROGRAM THERE ARE LARGE BUSINESSES, MAIN STREET IN WHICH THE FACILITIES ARE BEING DEVELOPED TO ASSIST — IN KANSAS IS YELLOW ROADWAY TRUCKING COMPANY, EMPLOYS ALMOST 30,000 PEOPLE IT IS NOT INVESTMENT GRADE IT HAS LEVERAGE, AND IT IS A COMPANY THAT IN THE ABSENCE OF ASSISTANCE THE JEOPARDY OF ITS EMPLOYEES ARE SIGNIFICANT I THINK THERE’S A LOT OF COMPANIES OUT LIKE THAT I THINK THERE’S A NUMBER OF OTHER COMPANIES IN KANSAS LIKE THAT, AND I WANT TO MAKE CERTAIN THAT WE ARE DOING THE THINGS THAT ARE NECESSARY TO PREPARE TO BE OF ASSISTANCE TO THEM I THINK SENATOR TOOMEY AND SENATOR WARNER EARLIER INDICATED THAT VERY FEW OF US EXPECT TREASURY NOT TO HAVE TO TAKE LOSSES THAT THERE NEEDS TO BE SOME RISK TAKING HERE AND I WANT SOME KIND OF ASSURANCE THAT UNDER THE B4 PROGRAM, B4 FACILITIES THAT THESE KIND OF COMPANIES THAT ARE HUGELY IMPORTANT TO THE ECONOMY CAN RECEIVE SOME ASSISTANCE WITH THE FACILITIES AT TREASURY AND THE FED, SECRETARY MNUCHIN, IS THERE A SUM LEVEL OF COMFORT I CAN HAVE? >> YOU HAVE MY ASSURANCE THAT WE’LLGO BACK AND LOOK AT THAT SPECIFIC COMPANY AND SEE WHAT WE CAN DO AND GET BACK TO YOU >> I HOPE IT’S MORE THAN THAT BECAUSE IT’S NOT JUST THAT COMPANY THERE’S A NUMBER OF COMPANIES ACROSS THE COUNTRY, NOT JUST IN KANSAS, BUT THIS IS HUGELY IMPORTANT FOR >> JUST TO BE CLEAR, COMPANIES LIKE THAT, AND AS I SAID BEFORE, WE WANT TO MAKE SURE THAT THERE ARE FACILITIES THAT COMPANIES DON’T FALL THROUGH THE CRACKS SO BETWEEN ALL THE DIFFERENT FACILITIES WE’RE TRYING TO DO AS MUCH AS WE CAN WITHIN OUR POWERS >> LET ME SUGGEST TO YOU THAT TIMING IS OF THE ESSENCE, JUST AS IT WAS IN PPP, THE CIRCUMSTANCES COMPANIES FACE TODAY AND LAY OFF AND FURLOUGHING EMPLOYEES ARE PRESENT AND AROUND THE CORNER

SO I ENCOURAGE THE PRESIPTOUS BUT THOUGHTFUL ACTION IN ADDRESSING THESE CIRCUMSTANCES LET ME SEE IF I CAN GET TWO OTHER QUESTIONS IN ONE, DO WE HAVE A TIME FRAME, MR. SECRETARY, FOR FURTHER GUIDANCE REGARDING PPP LOAN úFO >> THERE’S SOME GUIDANCE THAT JUST CAME OUT ON LOAN FORGIVENESS THAT WE THINK DEALS WITH MOST OF THE ISSUES >> SECOND QUESTION, MR. MUST HAVE MUST HAVE, DOES TREASURY AND SBA PLAN TO ALLOW GUIDANCE THAT ALLOW 501C3 ORGANIZATIONS TO USE THE ALTERNATIVE SIZE STANDARDS FOR PPP ELIGIBILITY? >> WE’RE REVIEWING THAT SPECIFIC REQUEST SO WE’VE HAD THAT REQUEST, AND WE’RE REVIEWING IT CAREFULLY >> IS THAT SOMETHING THAT A DECISION IS CLOSE TO BEING IMMINENT? >> WE’RE GOING TO DECIDE ONE WAY OR ANOTHER WHETHER WE CAN DO THAT, SO, YES >> OKAY THANK YOU VERY MUCH THANK YOU, MR. SECRETARY THANK YOU, MR. CHAIRMAN >> THANK YOU >> THANK YOU AND YOU GET A GOLD STAR, SENATOR MORAN, FOR YIELDING BACK A MINUTE OR SO OUR FINAL SENATOR FOR QUESTIONING IS SENATOR SMITH >> THANK YOU, MR. CHAIR, AND THANK YOU, RANKING MEMBER BROWN, AND THANKS TO BOTH OF YOU FOR BEING HERE TODAY CHAIR POWELL, YOU’VE TALKED ABOUT HOW WE WON’T BE ABLE TO SOLVE THE ECONOMIC CRISIS WITHOUT SOLVING THE PUBLIC HEALTH CRISIS WHICH I AGREE WITH AND SECRETARY MNUCHIN, YOU’VE SAID THAT WE NEED TO REOPEN THE ECONOMY, AND I WOAT, IN A THOUGHTFUL WAY, WHICH I ALSO AGREE WITH SO IT SEEMS TO ME THAT A REALLY IMPORTANT PART OF BEING THOUGHTFUL IS TO MAKE SURE THAT AMERICANS HAVE ACCURATE INFORMATION ABOUT WHAT’S GOING ON SO I HAVE NO DOUBT THAT YOU’LL BE SURPRISED TO HEAR THAT A LOT OF US WERE TAKEN BACK WHEN A COUPLE OF OF — I DON’T KNOW, A COUPLE OF DAY AGO OR SO WE HEARD PRESIDENT TRUMP FROM ERIC TRUMP, ACTING AS A SURROGATE FOR HIS FATHER SAY THIS, HE SAID THEY THINK, MEANING THEY THE DEMOCRATS, THAT THEY’RE TAKING AWAY DONALD TRUMP’S GREATEST TOOL WHICH IS TO BE ABLE TO GO INTO AN ARENA FILLED WITH 50,000 PEOPLE EVERY SINGLE TIME, RIGHT, SO THAT THEY WILL, YOU WATCH, THEY’LL MILK IT EVERY SINGLE DAY BETWEEN NOW AND NOVEMBER 3rd, AND GUESS WHAT, AFTER NOVEMBER 3rd, CORONAVIRUS WILL MAGICALLYALL OF A SUDDEN GO AWAY AND DISAPPEAR, AND EVERYBODY WILL BE ABLE TO REOPEN SO THIS IS THE KIND OF MISINFORMATION THAT CONCERNS ME GREATLY SECRETARY MNUCHIN, ARE YOU AWARE OF ANY EVIDENCE THAT WHAT ERIC TRUMP SAID THAT HIS ASSESSMENT IS ACCURATE? >> I DIDN’T SEE ERIC’S COMMENTS, NOR DO I THINK IN THIS SETTING IT’S APPROPRIATE FOR ME TO COMMENT ON IT ONE WAY OR ANOTHER >> WELL, I DON’T THINK IT’S ACCURATE, AND I THINK IT’S EXACTLY THE KIND OF MISINFORMATION THAT IS SO DAMAGING TO OUR — AND UNDERMINING OF BOTH OUR ECONOMIC APPROACHES AND OUR POLICY APPROACHES HERE BUT LET ME ASK YOU, SECRETARY POWELL, YOU KNOW, EVEN BEFORE THE COVID-19 CRISIS, MANY MINNESOTANS WERE STRUGGLING TO FIND AN AFFORDABLE PLACE TO LIVE AND LAST YEAR I SPOKE WITH HUNDREDS AND HUNDREDS OF MINNESOTANS AND FAMILY, COMMUNITY LEADERS ABOUT THIS CHALLENGE, HOUSING DEVELOPERS AS WELL, AND THEY ALL TOLD US THAT AT EVERY PART OF THE HOUSING CONTINUUM FROM HOUSING FOR HOMELESS PEOPLE AND SUPPORTIVE HOUSING ALL THE WAY UP TO WORK FORCE HOUSING THAT THIS IS A SIGNIFICANT PROBLEM AND A SIGNIFICANT AFFORDABILITY CHALLENGE AND SO NOW WE HAVE THIS, THIS CORONAVIRUS CHALLENGE SO I ALONG WITH MANY OF MY COLLEAGUES ON THIS COMMITTEE HAVE BEEN PUSHING FOR SUPPORT FOR HOUSING, $11.5 BILLION FOR HOMELESS ASSISTANCE, $100 BILLION FOR RENTAL ASSISTANCE, AND $75 BILLION TO STABILIZE HOMEOWNERS CHAIR POWELL, COULD YOU TALK A LITTLE BIT ABOUT THE IMPORTANCE OF THE HOUSING SECTOR IN OUR ECONOMY RIGHT NOW AND WHAT CHALLENGES YOU SEE AHEAD FOR US AS WE ARE LIVING THROUGH THIS CRISIS? AND I APPRECIATE WHAT YOU SAID THAT THE MOST IMPORTANT POLICY OBJECTIVES SHOULD BE TO KEEP PEOPLE IN THEIR HOMES AND KEEP THEM PAYING THE BILLS >> SO THESE ARE LONGER-RUNNING PROBLEMS WHICH ARE OF COURSE, YOU KNOW, UNDER PARTICULAR PRESSURE RIGHT NOW BUT AS AN EXAMPLE, A LOT OF THE JOBS ARE IN BIG URBAN AREAS MORE AND MORE, THAT’S WHERE THE JOB CREATION IS, YET THE COST OF LIVING IN THOSE PLACES IS HIGHER AND HIGHER, VERY HIGH, OFTEN PEOPLE WHO ARE IN THE SERVICE INDUSTRIES PROVIDING THEIR SERVICES HAVE TO COMMUTE VERY LONG TIMES TO BE ABLE TO AFFORD TO LIVE IN A PLACE AND SO IT’S — YOU KNOW, IT’S AN ISSUE THAT’S BEEN WITH US FOR A WHILE IT’S NOT ONE REALLY THAT THE FED CAN AFFECT MUCH OTHER THAN, YOU KNOW, AFFORDING FAIR LENDER LAWS AND THINGS LIKE THAT, BUT WE CAN’T DIRECTLY AFFECT THOSE BUT THEY ARE IMPORTANT TO OUR ECONOMY >> AND I REALIZE THAT YOU DON’T WANT TO COMMENT SPECIFICALLY ON THE SPECIFIC POLICY ISSUES THAT WE HAVE CONFRONTING US HERE IN CONGRESS BUT IN GENERAL DO YOU SEE A

RISK TO THE HOUSING MARKET AS THE ECONOMY CONTINUES TO TAKE A DOWNTURN IN THE MONTHS AHEAD? >> WELL, I THINK THERE ARE MULTIPLE RISKS ONE IS JUST TO THE EXTENT FOREBEARANCE DOESN’T DO THE JOB, YOU MAY HAVE PEOPLE LOSING THEIR HOMES THAT’S SOMETHING — GIVEN THAT THIS IS A NATURAL DISASTER IN A WAY, THAT’S SOMETHING THAT WOULD BE GREAT TO AVOID YOU ALSO SEE THE HOUSING INDUSTRY, I WOULDN’T SAY COMING TO A HALT, BUT UNDER GREAT PRESSURE, ACTIVITY SLOWED THAT’S A LOT OF JOBS RIGHT THERE I THINK, REALLY, IT COMES DOWN TO SENSIBLY, THOUGHTFULLY OPENING UP THE ECONOMY IN A WAY THAT BUILDS CONFIDENCE AND KEEPS PEOPLE SAFE I THINK THAT’S REALLY IMPORTANT THAT WE DO THAT WELL, AND IF WE DO, THESE THINGS WILL TAKE CARE OF THEMSELVES OVER TIME >> THIS IS A THING WE NEED TO CONTINUE TO WORK ON AND THE CHALLENGES THAT IF PEOPLE DO LOSE THEIR HOME, THE RIPPLE EFFECT OF PEOPLE NOT BEING ABLE TO PAY THEIR RENT OR THEIR MORTGAGE AND THE IMPACT THAT HAS ALL THE WAY UP THROUGH THE HOUSING CONTINUUM, I THINK, IS A GREAT CONCERN AN IF YOU DON’T HAVE A SAFE PLACE TO LIVE, THEN NOTHING ELSE IN YOUR LIFE WORKS I BELIEVE THIS IS SOMETHING THAT IS REALLY IMPORTANT FOR US TO ADDRESS IN THE NEXT PACKAGE THANK YOU VERY MUCH, MR. CHAIR >> THANK YOU, SENATOR SMITH AND WE HAVE ALSO BEEN JOINED NOW BY SENATOR SINEMA SO SHE WILL BE THE LAST QUESTIONER >> WELL, THANK YOU >> SHE WILL BE WITH US ON AUDIO ONLY AND THANK YOU, SENATOR SINEMA IF YOU FINISH IN YOUR FIVE MINUTE, I MAY MAKE IT TO THE VOTE >> WELL, THANK YOU, MR CHAIRMAN AND THANK YOU TO OUR WITNESSES FOR BEING HERE TODAY EVERYDAY ARIZONAN FROM EVERY CORNER OF MY STATE ARE WORRIED ABOUT THEIR HEALTH AND THEIR FUTURE AND THAT’S WHY MY OFFICE HAS DOUBLED OUR STATE TEAM TO BETTER SERVE ARIZONANS DURING THIS DIFFICULT TIME OUR GOAL IS TO OFFER TOP-NOTCH CONSTITUENT SERVICES CONNECTING ARIZONANS WITH RESOURCES AND GOING THE EXTRA MILE TO MAKE SURE THEY GET THE ASSISTANCE THEY NEED I’M GLAD WE’RE HAVING AN OVERSIGHT HEARING TODAY BECAUSE ROBUST CONGRESSIONAL OVERSIGHT IS CRITICAL TO ENSURING WE KNOW WHERE THE CARES ACT MONEY IS GOING AND HOW IT’S GOING TO BE SPENT IT’S ALSO VITAL TO ENSURING THAT ARIZONANS ARE NOT STUCK IN GOVERNMENT BUREAUCRACY I’M FOCUSED ON CUTTING THROUGH THAT RED TAPE TO HELP ARIZONANS MY FIRST QUESTION IS FOR SECRETARY MNUCHIN LET’S START WITH THE ECONOMIC INJURY DISASTER LOANS I SENT YOU AND ADMINISTRATOR CARRANZA A LETTER ON APRIL 17th OUTLINING MY CONCERNS WITH HOW THE ADMINISTRATION HAS RUN THIS PROGRAM I HAVE NOT RECEIVED A RESPONSE THE CARES ACT PROMISES SMALL BUSINESSES A $10,000 LOAN ADVANCE WITHIN THREE DAYS OF THEIR APPLICATION I KNOW ARIZONANS WHO WENT THROUGH THIS PROCESS NONE OF THEM GOT THEIR LOAN ADVANCED WITHIN THREE DAYS, AND NO ONE RECEIVED THE FULL $10,000 WHY AREN’T THEY GETTING THAT FULL AMOUNT, AND WHY AREN’T THEY GETTING IT ON TIME? >> WELL, FIRST OF ALL, LET ME JUST APOLOGIZE THAT YOU HAVEN’T RECEIVED A RESPONSE I WILL LOOK INTO THAT AFTER THIS AND GET BACK TO YOU AS IT RELATES TO THE IDLE PROGRAM, AGAIN, THAT’S WITHIN THE SBA, BUT LET ME JUST COMMENT THAT THE SBA HAD SIGNIFICANT SYSTEMS ISSUES GETTING THE IDLE PROGRAM UP AND RUNNING I THOUGHT THE GRANTS WERE DOING MUCH BETTER THAN THE LOANS, SO I’LL FOLLOW UP AND LOOK AT THAT ON THE LOANS, THEY’RE REBUILDING THE ENTIRE SYSTEM BECAUSE I THINK, AS YOU KNOW, WE HAVE OVER 5 MILLION LOANS TO PROCESS BUT WE WILL FOLLOW UP WITH YOU >> AS YOU KNOW, THE SBA INTERNALLY CHANGED THE POLICY OF IDLE TO ISSUE $1,000 LOAN ADVANCES PER EMPLOYEE UP TO $10,000 THE ORIGINAL PLAN WAS $10,000 PER COMPANY WHO AUTHORIZED THE CHANGE, AND WHY WAS IT MADE? >> I BELIEVE THE SBA ADMINISTRATOR MADE THAT CHANGE, AND I BELIEVE HER THOUGHT ON THAT WAS THAT THERE WAS LIMITED MONEY AND TRY TO SPREAD IT OUT AMONGST AS MANY COMPANIES AS POSSIBLE >> AND SHE DID NOT THINK TO HERSELF LET’S GO BACK AND ASK CONGRESS TO AUTHORIZIZE MORE FUNDING TO PAY FOR THAT WHICH THEY APPROPRIATED AND CALLED FOR IN THE LEGISLATION? >> WELL, THERE WAS ADDITIONAL MONEY IN THE SECOND PHASE, AND WE APPRECIATE THAT CONGRESS REACTED TO THAT >> OKAY BUT, SECRETARY, MY QUESTION IS THAT THE SBA MADE THIS INTERNAL CHANGE WITHOUT GETTING AUTHORIZATION FROM CONGRESS, AND IF THEY’RE SAYING THEY DID IT BECAUSE THEY DIDN’T HAVE ENOUGH MONEY, WE THEN GAVE MORE MONEY, AND THEY STILL HAVEN’T SED IT TO GIVE THAT MON PEOPLE AS PROMISED AS THE $10,000 IN THE ORIGINAL LEGISLATION? >>S AS I SAID, I’M MORE THAN HAPPY TO FOLLOW UP WITH YOU I’M A HE NOT INVOLVED IN SOME OF THE DIRECT SPECIFICS OF THAT, SO LET ME FOLLOW UP WITH YOUR OFFICE >> I APPRECIATE THAT, SECRETARY THE LAST THING I’LL SAY ABOUT THE IDLE LOAN IS THAT MY OFFICE RIGHT NOW IS WORKING OVER 300 OUTSTANDING IDLE CASES SOME OF THEM ARE DATING ALL THE WAY BACK TO EARLY AND MID- MARCH CAN YOUR TEAM — MOVED THROUGH QUICKLY? >> I COMMIT WE WILL WORK WITH THE SBA TO FOLLOW UP

THAT’S NOT ACCEPTABLE, SO WE’LL FOLLOW UP WITH THE SBA WITH YOU >> I APPRECIATE THAT I HAVE SOME QUESTIONS ABOUT THE PAY CHECK PROTECTION PROGRAM AS WELL SMALL BUSINESS OWNERS IN ARIZONA ARE ASKING FOR GUIDANCE ON HOW THE LOAN FORGIVENESS WORKS, AND THE LACK OF GUIDANCE HAS MADE IT DIFFICULT FOR SMALL BUSINESSES TO PLAN WE RECEIVED SOME GUIDANCE LAST FRIDAY, AND THERE’S MORE STILL TO COME COULD YOU TELL ME WHY IT’S TAKING SO LONG TO GET GUIDANCE FOR SMALL BUSINESSES ON THE LOAN FORGIVENESS ASPECT OF PPP? >> I THINK YOU KNOW THIS, IT’S A VERY COMPLICATED PROGRAM THAT WE SET UP IN A SHORT PERIOD OF TIME I THOUGHT THAT THE GUIDANCE WE PUT OUT DEALT WITH ALL THE ISSUES BUT IF THERE ARE SPECIFIC ISSUES THAT YOU’RE HEARING FROM, WE WILL FOLLOW UP WITH YOU AND PROVIDE THAT CLARITY >> I APPRECIATE THAT WE WOULD LIKE TO FOLLOW UP SPECIFICALLY AS YOU KNOW, THE APPLICATION TO GET YOUR PPP LOAN WAS ONLY ONE PAGE LONG, BUT THE FORGIVENESS APPLICATION IS 11 PAGES LONG, AND ACCORDING TO MY STAFF, REQUIRES A MINIMUM OF THREE HOURS TO COMPLETE THIS IS A REAL PROBLEM FOR MOM AND POP SHOPS IN ARIZONA WHAT EFFORTS CAN WE OFFER TO ASSIST SMALL BUSINESSES IN FILLING OUT THE COMPLEX FORM? >> I CAN ASSURE YOU I SPENT A LOT OF TIME ON THE COMPLEXITY OF THAT WE TRIED TO GET IT AS SHORT AS WE COULD UNDER THE LAW I HOPE IT DOESN’T TAKE THREE HOURS FOR SMALL BUSINESS AGAIN, WE TRIED TO MAKE IT AS SHORT AS POSSIBLE >> I APPRECIATE THAT MR. CHAIRMAN, I SEE THAT MY TIME HAS EXPIRED I WOULD LIKE YOU TO MAKE IT TO THE VOTE I HAVE MANY MORE QUESTIONS I’LL SUBMIT SOME OF THEM IN WRITING THANK YOU VERY MUCH, MR CHAIRMAN >> THANK YOU, KRISTEN, I REALLY APPRECIATE THAT AND I UNDERSTAND SENATOR BROWN WANTS A 60-SECOND STATEMENT YOU CAN DO SO, PLEASE >> I WILL DO 60 SECONDS THANK YOU, MR. CHAIRMAN ANOTHER SUCCESSFUL HEARING, THANK YOU, CHAIR POWELL AND SECRETARY MNUCHIN I WEAR ON MY LAPEL, AS I SAID BEFORE A PIN DEPICTING A CANARY IN THE BIRD CAGE INSTEAD OF THE OFFICIAL SENATE PIN YOU KNOW THE CANARY WENT TO THE MINE TO WARN OF THE POISONOUS GAS THEY DIDN’T HAVE A UNION STRONG ENOUGH TO PROTECT THEM IN THOSE DAYS NOR A GOVERNMENT CENTURIES LATER IT’S STARTING TO FEEL LIKE WE’RE BACK IN THE MINES MILLIONS OF AMERICAN WORKERS DON’T HAVE A UNION TO PROTECT THEM AFTER DECADES OF CORPORATE ATTACKS, AND BASED ON THE RESPONSES WE’VE HEARD TODAY AND WHAT WE’VE HEARD ESPECIALLY FROM THE PRESIDENT OVER THE PAST FEW MONTHS, IT SEEMS ONCE AGAIN WORKERS DON’T HAVE A GOVERNMENT THAT CARES ENOUGH TO PROTECT THEM WE LOOK AT HOW THE ADMINISTRATION TREATS ESSENTIAL WORKERS, WOMEN ESPECIALLY, AFRICAN-AMERICAN, LATINO WORKERS PUTTING THEIR LIVES ON THE LINE, LOOK AT WHO THEY’RE WILLING TO SPEND MONEY ON THIS ADMINISTRATION TELLS US EVERYTHING WE NEED TO KNOW THAT’S WHY CONGRESS NEEDS TO STAND UP FOR WORKERS THAT’S WHY WORKERS NEED UNIONS SO WE CAN FIGHT BACK FOR ECONOMIC SECURITY AND SAFETY PROTECTIONS AND THE DIGNITY THEY DESERVE AND FOR AMERICAN VALUES SO, MR. CHAIRMAN, THANK YOU FOR ALLOWING ME THE LAST MINUTE OR SO >> WELL, THANK YOU AND I ALSO WANT TO THANK YOU, SENATOR BROWN, FOR YOUR COOPERATION IN WORKING WITH US TO HAVE THIS HEARING AND HELP IT TO WORK OUT I APPRECIATE THE COOPERATIVE WAY IN WHICH WE HAVE BEEN ABLE TO WORK ON THESE HEARINGS I DO DISAGREE WITH THE NOTION THAT OUR SECRETARY AND OUR CHAIRMAN HERE ARE NOT WORKING VERY HARD TO MAKE SURE THAT THEIR SUPPORT WE HAVE VOTED ON GETS OUT TO THOSE VERY PEOPLE, THOSE WHO HAVE THESE LOWER PAYING JOBS, THOSE WHO ARE IN THE SERVICE INDUSTRY, THE SMALL BUSINESSES, THE MEDIUM-SIZED BUSINESSES AND THOSE PLACES THAT WILL BE NEEDED TO STAND UP OUR ECONOMY AS WE HAVE THE OPPORTUNITY TO DO SO SO WE MAY HAVE A DIFFERENT POINT OF VIEW ON THAT BUT I DO APPRECIATE YOUR SUPPORT IN HELPING ME GET THIS HEARING SET UP AND WORKING AND TO OUR WITNESSES, SECRETARY MNUCHIN, CHAIRMA POWELL, I AGAIN APPRECIATE YOUR COOPERATION AND WORK WITH ME AS WE’VE PUT TOGETHER THIS HEARING WE ARE PLOWING NEW GROUND HERE IN THE SENATE, AS IS HAPPENING ACROSS THIS NATION WHEN WE DEAL — WHILE WE DEAL WITH COVID-19, AND YOUR CORPORATION AND WORKING TO GET US THROUGH THIS HEARING AND GET YOUR REPORT TO US IS DEEPLY APPRECIATED WITH THAT, I WILL SAY THAT FOR SENATORS WHO WISH TO SUBMIT QUESTIONS FOR THE RECORD, THOSE QUESTIONS ARE DUE ON TUESDAY, MAY 26th >>> HI, EVERYONE I’M REENA NINAN THANKS F JOINING US HERE ON CBSN I’M COMING TO YOU FROM MY HOME STUDIO YOU WERE JUST WATCHING TWO OF PRESIDENT TRUMP’S TOP FINANCIAL ADVISERS TALKING AT THE SENATE BANKING COMMITTEE HE WAS QUESTIONED BY TREASURY SECRETARY STEVE MNUCHIN AND ALSO FEDERAL RESERVE CHAIRMAN JEROME POWELL THEY WERE TALKING ABOUT THE

EFFECTIVENESS OF THE GOVERNMENT IN FUNDING CORONAVIRUS NEEDS ACROSS THE COUNTRY MEMBERS OF THE SENATE BANKING COMMITTEE QUESTIONED THEM, AND NOW LAWMAKERS PRESSED THEM ON HOW AND WHEN TO REOPEN THE ECONOMY THAT’S REALLY THE BIG FOCUS RIGHT NOW, AND WHETHER OR NOT BILLS SUCH AS THE PAY CHECK PROTECTION PROGRAM ARE HELPING EVERYDAY AMERICANS >> WE EXPECT ECONOMIC CONDITIONS TO IMPROVE IN THE THIRD AND FOURTH QUARTER AND INTO NEXT YEAR >> THE SCOPE AND SPEED OF THIS DOWNTURN ARE WITHOUT MODERN PRECEDENT, SIGNIFICANTLY WORSE THAN ANY RECESSION SINCE “JURASSIC WORLD WAR II AND MORE THAN 20 MILLION PEOPLE HAVE LOST THEIR JOBS AND RECENT FED RESEARCH SHOWS THAT WHAT OTHERS HAVE ALSO FOUND THAT PEOPLE EARNING LESS ARE THE ONES BEING HARDEST HIT >> SECRETARY MNUCHIN, YOU SAID THERE’S CONSIDERABLE RISK OF NOT REOPENING, THAT KEEPING SOME BUSINESSES CLOSED COULD CAUSE PERMANENT ECONOMIC DAMAGE HOW MANY WORKER ALSO DIE IF WE SEND PEOPLE BACK TO WORK WITHOUT THE PROTECTIONS THEY NEED, MR. SECRETARY? >> SENATOR, WE DON’T INTEND TO SEND ANYBODY BACK TO WORK WITHOUT THE PROTECTIONS, AND I WOULD SAY I WAS PREPARED TO COME THERE TODAY I THOUGHT IT WAS SAFE TO TESTIFY AS A MATTER OF FACT, I ALREADY WAS AT THE SENATE THIS MORNING, WEARING A MASK, AND I ASSURE YOU, BOTH MYSELF AND EVERYBODY ON THE TASK FORCE, THE VICE PRESIDENT AND OTHERS ARE FOLLOWING THE BEST MEDICAL ADVICE, AND I COULDN’T BE MORE PROUD OF THE MEDICAL ADVICE THAT WE’RE GETTING AND THE WAY THE ECONOMY IS OPENING UP IN A SAFE WAY >> THE LONGER THAT WE CONTINUE A SHUTDOWN WHEN WEEKS TURN INTO MONTHS, DOESN’T THAT NECESSARILY INCREASE THE RISK THAT SOME BUSINESSES WILL FAIL, SOME JOBS WON’T BE THERE TO GO BACK TO IF A LOCKDOWN AND A SHUTDOWN CONTINUES INDEFINITELY? >> THAT’S ABSOLUTELY THE CASE, MR. SENATOR THERE IS THE RISK OF PERMANENT DAMAGE AND AS I’VE SAID BEFORE, WE’RE CONSCIOUS OF THE HEALTH ISSUES, AND WE WANT TO DO THIS IN A BALANCED AND SAFE WAY >> CBS NEWS CHIEF CONGRESSIONAL CORRESPONDENT NANCY CORDES IS ON CAPITOL HILL I ALSO WANT TO BRING IN CBSN POLITICAL CONTRIBUTOR MOLLY HOOPER WHO ALSO JOINS US FROM WASHINGTON NANCY, I WANT TO START WITH YOU, DID MNUCHIN OR POWELL SIGNAL WHETHER OR NOT THEY’RE OPEN TO MORE SPENDING BY CONGRESS, AND WHAT ARE THE SPECIFIC — WERE THERE SPECIFIC STATES THEY CHOSE TO FOCUS ON? Reporter: WELL, JEROME POWELL THE FED CHAIR WAS PUT ON THE SPOT MORE ABOUT THIS THAN MNUCHIN WAS BECAUSE I THINK DEMOCRATS KNOW THERE’S SOME DAYLIGHT BETWEEN POWELL AND THE PRESIDENT AND SENATE REPUBLICANS ON THIS ISSUE AND SO HE WAS ASKED BY MULTIPLE SENATE DEMOCRATS WHETHER INDEED HE DOES BELIEVE THAT CONGRESS SHOULD PASS ANOTHER MAJOR STIMULUS BILL, ANOTHER BIG SPENDING BILL TO PROP UP INDIVIDUALS AND BUSINESSES AND STATE AND LOCAL GOVERNMENTS AND POWELL HAD TO BE PRETTY CAREFUL HERE, PARTLY BECAUSE IT’S NOT REALLY THE FED’S ROLE, AS HE SAID, TO WADE INTO POLICY HE TRIES TO KIND OF FLOAT ABOVE IT, AND ALSO BECAUSE HE’S AWARE THAT THAT COULD CREATE FRICTION WITH THE ADMINISTRATION AND THE PRESIDENT IN PARTICULAR HOWEVER, HE DID SAY OVER AND OVER AGAIN, REENA, THAT HE DOES WORRY ABOUT THE LONG-TERM IMPACT ON THE ECONOMY IF TOO MANY SMALL BUSINESSES, LARGE BUSINESSES ARE ALLOWED TO FAIL HE TALKED OVER AND OVER AGAIN ABOUT HOW DIFFICULT IT CAN BE FOR PEOPLE TO RE-ENTER THE WORK FORCE IF THEY’RE UNEMPLOYED FOR LONG PERIODS OF TIME THEY LOSE THEIR CONTACTS, THEIR NETWORKS, IT GETS DIFFICULT FOR THEM TO BREAK BACK IN HE EVEN POINTED OUT AT ONE POINT THAT SOMETHING LIKE 13% OF THE WORK FORCE IS IN STATE AND LOCAL GOVERNMENT, HINT, HINT, STATE AND LOCAL GOVERNMENTS MAY NEED MORE MONEY AS WELL TO KEEP THOSE PEOPLE IN THEIR JOBS SO HE CERTAINLY APPEARED TO BE LEANING ON THE SIDE OF MORE STIMULUS, BUT REPUBLICANS HEARD HIS WORDS AND SAID, HEY, LOOK, THE BEST WAY TO KEEP PEOPLE FROM STAYING UNEMPLOYED FOR LONG PERIODS OF TIME IS TO ALLOW THEIR BUSINESSES TO OPEN BACK UP MORE QUICKLY THAT’S THE WAY TO GET PEOPLE BACK TO WORK, THAT’S THE WAY TO KEEP SMALL BUSINESSES FROM RUNNING OUT OF CASH AND FOLDING >> YEAH YOU KNOW, THE FOCUS ALSO, MOLLY, SO MUCH OF THIS ON THE PAY CHECK PROTECTION PROGRAM, DEMOCRATS REALLY PUSHED, PRESSED BOTH MNUCHIN AND POWELL ON THIS TOPIC DID EITHER OF THEM EXPRESS CONFIDENCE IN THE EFFECTIVENESS OF THOSE PROGRAMS IN PARTICULAR, AND ALSO, WHAT’S THE OVERALL TAKEAWAY ABOUT PROTECTING FAMILIES AND THESE SMALL BUSINESSES? >> WELL, I THINK — TO UNPACK THAT, IT SEEMS LIKE A SIMPLE QUESTION, BUT THIS IS A LONG HEARING WITH A LOT OF ANSWERS AND I THINK, YOU KNOW, WHAT THEY DID SAY, A LOT OF SENATORS WERE REALLY PRESSING ON THIS ISSUE OF THE FACT THAT THE FEDERAL RESERVE HAS A HUGE TRAUNCH OF MONEY, ALMOST $450 BILLION THAT THEY HAVE AVAILABLE TO LEND TO BANKS THAT WILL BACK THOSE PPP LOANS AND EVERYTHING BUT THAT MONEY REALLY HASN’T GOTTEN INTO THE HANDS OF BANKS, LENDING INSTITUTIONS AND THE MUNICIPALITIES, LOCAL GOVERNMENTS THAT COULD BE BENEFITING FROM THAT MONEY,

HAVEN’T BEEN ABLE TO QUALIFY BECAUSE SOME OF THEM ARE TOO SMALL AND THAT’S ACTUALLY WHAT WE HEARD FROM THE MORE RURAL STATE SENATORS LIKE MIKE ROUNDS, A REPUBLICAN OF SOUTH DAKOTA — SOUTH DAKOTA, YEAH, WHO WAS PRESSING, SAYING, LISTEN, A LOT OF OUR CITIES CAN’T EVEN QUALIFY FOR SOME OF THESE FACILITIES AS THEY’RE CALLED BECAUSE THEY ARE TOO SMALL AND HAVE TO GO THROUGH THE STATE GOVERNMENTS AND, REALLY, THE ISSUE HAS BEEN IS IT’S BEEN VERY DIFFICULT TO GET ALL THESE PROGRAMS UP AND RUNNING IN SUCH A SHORT PERIOD OF TIME, AND BECAUSE IF YOU DO QUALIFY FOR THE PPP, THERE ARE DIRECTIVES THAT SAY YOU HAVE TO SPEND THAT MONEY BY A CERTAIN DATE AND SO THE SENATE AND MEMBERS OF THE HOUSE WANT TO INCREASE THOSE TIMELINES SO THAT THESE SMALL BUSINESSES CAN STILL BENEFIT FROM THAT BECAUSE REALLY WE AREN’T BACK TO WORK YET FULLY >> YOU KNOW, NANCY, JUST OVER THE WEEKEND CHAIRMAN POWELL APPEARED ON “60 MINUTES REQUESTS, AND SCOTT PELLEY PRESSED HIM ON THE ISSUE OF THE ECONOMY AND A VACCINE HERE’S WHAT HE TOLD SCOTT Reporter: CAN THERE BE A RECOVERY WITHOUT A REASONABLY EFFECTIVE VACCINE? >> ASSUMING THERE’S NOT A SECOND WAVE OF THE CORONAVIRUS, I THINK YOU’LL SEE THE ECONOMY RECOVER STEADILY THROUGH THE SECOND HALF OF THIS YEAR SO FOR THE ECONOMY TO FULLY RECOVER, PEOPLE WILL HAVE TO BE FULLY CONFIDENT, AND THAT MAY HAVE TO AWAIT THE ARRIVAL OF A VACCINE >> NANCY, I’M CURIOUS, DID POWELL AGAIN TODAY ALONG WITH MNUCHIN EXPRESS THE IMPORTANCE OF FINDING A VACCINE FOR THEIR ECONOMY TO FULLY RECOVER? Reporter: YOU KNOW, THE ISSUE OF A VACCINEDIDN’T REALLY COME UP IN THIS HEARING, AND THAT’S PARTLY BECAUSE THAT’S NOT WHERE MOST OF THESE SENATORS’ MINDS WERE AT THEY’RE MEMBERS OF THE BANKING COMMITTEE THEY WANTED TO KNOW, YOU KNOW, ABOUT HOW THESE PROGRAMS ARE WORKING, WHETHER THE MONEY IS GETTING OUT THE DOOR, WHETHER IT’S GETTING TO THE RIGHT PEOPLE, WHETHER THEY NEED — WHETHER CONGRESS NEEDS TO ALLOCATE MORE MONEY, SO THE QUESTION OF A VACCINE DIDN’T REALLY COME INTO IT IF YOU TALK TO MOST SENATORS, THEY ARE VERY SKEPTICAL THAT A VACCINE WILL BE READY IN TIME FOR THE FALL THEY REALIZE THAT IT’S KIND OF A MOON SHOT EVEN TO HAVE A VACCINE BY THE WINTER SO MOST OF THEM APPEAR TO BE PROCEEDING AS IF THEY BELIEVE THAT THAT’S NOT REALLY ON THE NEAR-TERM HORIZON AND THEIR QUESTIONS DIDN’T AT ALL SUGGEST THAT THERE WOULD BE SOME KIND OF WHITE KNIGHT VACCINE RIDING IN TO SAVE THE DAY ANYTIME SOON >> MOLLY, I WANT TO ASK YOU ABOUT REPUBLICANS ON CAPITOL HILL ARE THEY EXPRESSING CONFIDENCE ABOUT SPENDING MORE MONEY OR EXPANDING ANY OF THE PROGRAMS THAT ARE ALREADY IN PLACE? >> WELL, I THINK ONE TELLING BACK AND FORTH DURING THIS HEARING IS SENATOR KENNEDY FROM LOUISIANA AND OFF QUOTED, REQUOTED SENATOR — HE HAS VERY COLORFUL QUOTES, AGAIN, FROM LOUISIANA, HE SAID THAT HE THINKS THERE’S LESS THAN A 50% CHANCE THAT ANOTHER BILL WILL ACTUALLY PASS THE CONGRESS THAT DEALS SPECIFICALLY WITH CORONAVIRUS STIMULUS FUNDING AND SO THAT SORT OF GIVES YOU AN INDICATION AS TO WHERE THIS COULD BE GOING SENATOR KENNEDY IS A BIG PROPONENT AND SUPPORTER OF PRESIDENT TRUMP, AND HE REPRESENTS — HE REPRESENTS QUITE A BIT OF THE IDEOLOGY OF THE SENATE REPUBLICANS, AND SO I THINK THAT IF YOU LISTEN TO WHAT HE IS SAYING, I’M NOT QUITE SURE BUT TODAY PRESIDENT TRUMP IS HEADING TO CAPITOL HILL IN FACT, HE MIGHT BE THERE NOW MEETING WITH THE REPUBLICAN CONFERENCE TO FIGURE OUT HOW DO THEY MOVE FORWARD BECAUSE THERE ARE SENATORS IN SOME OF THESE STATES THAT ARE MORE RURAL AND WHATNOT, AND THEY AREN’T SEEING THE FUNDING THEY NEED, AND THEY NEED MORE STIMULUS TO GET THEIR OWN RESPECTIVE ECONOMIES GOING IT’S JUST A MATTER OF HOW YOU DO THAT >> NANCY, DEMOCRATIC SENATOR ELIZABETH WARREN PRESSED MNUCHIN ON WHETHER HE’LL REQUIRE BUSINESSES TO ACTUALLY SPEND GOVERNMENT MONEY ON PAYROLL I WANT TO PLAY FOR YOU THAT EXCHANGE >> ARE YOU GOING TO REQUIRE COMPANIES THAT RECEIVE MONEY FROM THIS HALF A TRILLION DOLLAR SLUSH FUND THAT HAVE TO KEEP PEOPLE ON PAYROLL? IT’S A SIMPLE QUESTION YES OR NO ARE YOU GOING TO REQUIRE THAT? >> FIRST LET ME SAY THAT OUR NUMBER ONE OBJECTIVE IS KEEPING PEOPLE EMPLOYED >> GOOD, SO ARE YOU — >> I WANT TO BE CLEAR ON THAT >> PEOPLE WHO ARE GETTING TAXPAYER MONEY, THAT’S MY QUESTION >> AGAIN, WE NEGOTIATED VERY SIGNIFICANT RESTRICTIONS ON EMPLOYEE COMPENSATION, ON DIVIDENDS, ON BUYBACKS, AND IN THE MAIN STREET FACILITY WE HAVE PUT IN A PROVISION THAT WE EXPECT PEOPLE TO USE THEIR BEST EFFORTS TO SUPPORT JOBS >> NANCY, SO WHAT DO THE LAWS ACTUALLY SAY, THE LAWS THAT SENATOR WARREN IS REFERRING TO THERE? DOES IT REQUIRE COMPANIES TO SPEND MONEY ON PAYROLL? Reporter: IT DOES NOT

SO WHAT WARREN WAS TALKING ABOUT THERE WAS THIS $500 BILLION FUND FOR MID-SIZE AND LARGE COMPANY, LOANS THAT GO TO THOSE COMPANIES TO HELP KEEP THEM AFLOAT THIS IS NOT THE SAME AS THE PPP PROGRAM WHICH ARE LOANS THAT ARE STRUCTURED TO CONVERT TO GRANTS IF COMPANIES, SMALL BUSINESSES DO CERTAIN THINGS WITH THE MONEY, INCLUDING PAYING THEIR WORKERS BUT WHEN IT COMES TO THESE LARGE BUSINESS LOANS THAT DON’T CONVERT INTO GRANTS, THERE WERE SOME STRINGS ATTACHED YOU COULDN’T USE THE MONEY, FOR EXAMPLE, TO PAD EXECUTIVE PAY, YOU COULDN’T USE THE MONEY FOR STOCK BUYBACKS BUT IT DOESN’T REALLY SAY ANYTHING ABOUT NOT BEING ABLE TO LAY OFF WORKERS THAT’S NOT SOMETHING THAT WAS SOMETHING THAT WAS DISCUSSED BY DEMOCRATS AND REPUBLICANS WHEN THEY WERE CRAFTING THIS BILL, BUT IT’S NOT PART OF THE BILL AND WHAT WARREN IS SAYING THERE IS THAT MNUCHIN HAS THE POWER, HAS THE ABILITY TO ATTACH THOSE STRINGS IF HE WANTS TO, TO REQUIRE THAT BIG COMPANIES DON’T TAKE THE MONEY AND THEN LAY OFF WORKERS, OR TO SAY YOU CAN’T LAY OFF A BUNCH OF WORKERS AND THEN COME AND APPLY FOR THE MONEY AND TAKE IT YOU SAW MNUCHIN THERE BASICALLY SAYING HE WANTS TO KEEP HIS OPTIONS OPEN, AND THE REALITY IS THAT BECAUSE THESE ARE LOANS, THEY ARE NOT GRANTS, THERE IS A LIMIT MANY REPUBLICANS BELIEVE IN PARTICULAR INTO WHAT KINDS OF CRITERIA YOU CAN ATTACH TO THAT MONEY THESE BUSINESSES ARE GETTING LOW INTEREST RATES, BUT THEY DO HAVE TO PAY THE MONEY BACK, AND MNUCHIN DOESN’T WANT TO TIE THEIR HANDS AND SAY, YOU KNOW, YOU GOTTA USE THIS MONEY IN A CERTAIN WAY, EVEN IF IT CAUSES YOU TO GO UNDER HE WANTS BUSINESSES TO HAVE THE FLEXIBILITY TO USE THE MONEY IN THE WAY THAT THEY SEE FIT >> NANCY, BEFORE WE GO, I ALSO WANT TO ASK YOU, I KNOW CONGRESSMAN JOHN RADCLIFFE, THE SENATE APPROVED HIM AS THE TOP INTEL CHIEF IS HE LIKELY TO BE CONFIRMED BY THE ENTIRE CHAMBER? Reporter: YES I THINK THAT THE VOTE IN THE SENATE INTELLIGENCE COMMITTEE IS A SIGNAL OF WHICH WAY THINGS ARE GOING TO GO IN THE SENATE HE GOT THE SUPPORT OF ALL THE REPUBLICANS ON THAT COMMITTEE, NONE OF THE DEMOCRATS, THAT IS HARDLY A SURPRISE ONE THING THAT IS A SURPRISE IS THAT HE WAS ABLE TO KEEP ALL REPUBLICANS TOGETHER THAT WAS INITIALLY A QUESTION MARK HE WASN’T THE FAVORED NOMINEE FOR SOME OF THESE SENATE REPUBLICANS BUT IN THE END, THEY ALL STOOD BEHIND THE PRESIDENT’S PICK, AND I ANTICIPATE THAT YOU WILL SEE THE SAME THING ON THE SENATE FLOOR WHEN THIS COMES UP FOR A VOTE MOST LIKELY SOMETIME IN JUNE >> NANCY CORDES, MOLLY HOOPER, I WANT TO THANK YOU BOTH FOR JOINING US >> THANK YOU Reporter: YOU’RE WELCOME >>> WELL, THE PRESIDENT SENT A LETTER TO THE ORGANIZATION LATE MONDAY NIGHT THREATENING TO PERMANENTLY CUT FUNDING AND, QUOTE, RECONSIDER U.S MEMBERSHIP IN THE ORGANIZATION I’M REFERRING TO THE WORLD HEALTH ORGANIZATION THAT BATTLE HAS INTENSIFIED THE PRESIDENT HAS REPEATEDLY CLAIMED THAT THE U.N. AGENCY WAS NEGLIGENT IN ITS CORONAVIRUS RESPONSE HE ALSO CLAIMS THAT THE GROUP IS BIASED AGAINST CHINA RAMY INOCENCIO IS IN TOKYO WITH MORE Reporter: IN HIS SCATHING FOUR- PAGE LETTER, PRESIDENT TRUMP SLAMMED THE WORLD HEALTH ORGANIZATION FOR WHAT HE CALLED A FAILED RESPONSE TO COVID-19, AN ALARMING LACK OF INDEPENDENCE FROM CHINA AND FOR IGNORING CREDIBLE REPORT FROM WUHAN THE PRESIDENT’S HEALTH AND HUMAN SERVICES SECRETARY ADDRESSED THE W.H.O DIRECTLY AS IT CONVENED ITS ANNUAL ASSEMBLY VIRTUALLY FOR THE FIRST TIME >> THERE WAS A FAILURE BY THIS ORGANIZATION TO OBTAIN THE INFORMATION THAT THE WORLD NEEDED, AND THAT FAILURE COST MANY LIVES Reporter: THE PRESIDENT’S CAME AFTER CHINA’S PRESIDENT XI JINPING MADE A U-TURN PLEDGING TO SUPPORT AN INDEPENDENT PROBE INTO THE ORIGINS OF THE CORONAVIRUS AND WITH THE PLEDGE OF $2 BILLION IN AID BUT WASHINGTON CALLED THE STATEMENTS A EXTRACTION FROM WHAT THE WHITE HOUSE CLAIMS TO BE CHINA’S FAILURE TO ALERT THE WORLD AND SAID BEIJING SHOULD PAY MORE THAT PAYMENT MIGHT COME IN THE FORM OF A VACCINE CHINA SAYS IT NOW HAS FIVE CANDIDATES IN CLINICAL TRIAL WITH CANSINO BIOLOGICS, THE PEOPLE’S LIBERATION ARMY THE SECOND IN THE WORLD TO GO THROUGH THE CLINICAL TRIALS PRESIDENT TRUMP’S LETTER HE THREATENED TO WITHDRAW ALL FUNDING TO THE U.S. HEALTH ORGANIZATION FOR GOOD THAT WAS $400 MILLION IN 2019 UNLESS MAJOR CHANGES ARE MADE IN THE NEXT 30 DAYS RAMY INOCENCIO TOKYO >>> WELL, MEANWHILE THE PRESIDENT ALSO REVEALED MONDAY THAT HE’S TAKING THE ANTIMALARIA DRUG, HYDROXYCHLOROQUINE TO PROTECT HIMSELF FROM COVID-19 THE DRUG IS UNPROVEN AS A TREATMENT FOR THE VIRUS THE FDA HAS WARNED THAT IT COULD HAVE DANGEROUS SIDE EFFECTS PAULA REID IS AT THE WHITE HOUSE WITH MORE Reporter: THE FRONT LINE

WORKER, MANY, MANY ARE TAKING IT I HAPPEN TO BE TAKING IT I HAPPEN TO BE TAKING IT Reporter: HYDROXYCHLOROQUINE? >> I’M TAKING IT HYDROXYCHLOROQUINE RIGHT NOW, YEAH Reporter: PRESIDENT TRUMP SAYS HE’S TAKING HYDROXYCHLOROQUINE AND ZINC, AN UNPROVEN COMBINATION AFTER HEARING ANECDOTAL EVIDENCE >> I SAID, SIR, I HAVE HUNDREDS OF PATIENTS, AND I GAVE THEM HYDROXYCHLOROQUINE I GIVE THEM THE Z-PACK WHICH IS AZITHROMYCIN, AND I GIVE THEM ZINC, AND OUT OF THE HUNDREDS OF PATIENTS, MANY HUNDREDS, OVER 300 PATIENTS, I HAVEN’T LOST ONE Reporter: HE CLAIMS HE REQUESTED THE REGIMEN FROM THE WHITE HOUSE DOCTOR ABOUT TWO WEEKS AGO AFTER A SUPPORT STAFFER TESTED POSITIVE FOR COVID-19 >> HE SAID, WELL, IF YOU’D LIKE IT I SAID, YEAH, I’D LIKE IT Reporter: THE FDA WARNED LAST MONTH THAT HYDROXYCHLOROQUINE SHOULD NOT BE USED OUTSIDE OF A HOSPITAL SETTING, WARNING OF SERIOUS HEART RHYTHM PROBLEMS IN PATIENTS WA COVID-19 SO FAR THE PRESIDENT’S TESTS FOR THE VIRUS HAVE ALL BEEN NEGATIVE AS SCIENTISTS CONTINUE TO STUDY THE DRUG’S EFFECTIVENESS, THE PRESIDENT’S ENDORSEMENT HAS MADE IT A POLITICAL FLASH POINT >> WE’VE HAD TREMENDOUS RESPONSE TO THE HIDROXY >> SO IT’S A VERY, STRONG POWERFUL MEDICINE Reporter: SPEAKING TO CBS NEWS IN MARCH, DR. ANTHONY FAUCI EXPRESSED SKEPTICISM ABOUT ITS BENEFITS >> THERE IS NOT A PROVEN, AND THAT’S THE UNDERLYING WORD, A PROVEN TREATMENT OR PREVENTION Reporter: AND THE PRESIDENT’S CRITICS SAY HE’S ONCE AGAIN GIVING THE PUBLIC BAD MEDICAL INFORMATION >> EVERY EXPERT WHO HAS LOOKED AT IT SAYS IT DOESN’T HELP YOU AGAINST COVID SO HE’S GIVING PEOPLE FALSE HOPE >> WELL, ALMOST EVERY STATE IN THE COUNTRY HAS AT LEAST PARTIALLY REOPENED AMID THE CORONAVIRUS 3BG 45 OUT OF THE 50 STATES HAVE PARTIALLY EASED SOCIAL DISTANCING REGULATIONS THAT WERE PUT IN PLACE TO STOP THE COVID-19 SPREAD CONNECTICUT REMAINS THE ONLY STATE THAT HAS NOT BEGUN TO REOPEN ACCORDING TO JOHNS HOPKINS UNIVERSITY, THE U.S. CURRENTLY HAS MORE THAN 1.5 MILLION CASES OF CORONAVIRUS AND OVER 90,000 PEOPLE HAVE DIED OUR DAVID BEGNAUD REPORTS ON HOW BUSINESSES ARE LOOKING FOR WAYS TO SAFELY REOPEN Reporter: 48 AUTO MANUFACTURING PLANTS ACROSS EIGHT STATES ARE BACK OPEN NOW THAT MEANS TENS OF THOUSANDS OF EMPLOYEES AT FORD, GM AND FIAT CHRYSLER ARE BACK AT WORK >> MY WIFE IS A NURSE I’M READY LET’S GO LET’S GET THIS DONE WE GOTTA DO IT SOONER OR LATER Reporter: VIDEO FROM THIS CHRYSLER PLANT IN WARREN, MICHIGAN SHOWS THEIR NEW NORMAL, TEMPERATURE CHECKS UPON ENTRY TO THE BUILDING, TWO MASKS ARE GIVEN TO EACH EMPLOYEE PLASTIC COVERINGS KEEP EMPLOYEES SEPARATED WORKERS CONSISTENTLY SANITIZING THEIR WORK STATIONS EVEN WITH ALL OF THAT, SOME PEOPLE WERE A LITTLE UNEASY ABOUT GOING BACK TO WORK >> I KNOW PERSONALLY FIVE PEOPLE THAT PASSED AWAY FROM THIS, FOUR OF THEM WORKED HERE, ONE WORKED NEXT DOOR SO WE’RE SCARED Reporter: THE AUTO INDUSTRY IS PART OF AMERICA’S ECONOMIC ENGINE TRYING TO GET BACK ON TRACK AS GOVERNORS AROUND THE COUNTRY CONTINUE TO SLOWLY REOPEN IN TEXAS YESTERDAY GOVERNOR GREG ABBOTT REOPENED GYMS, OFFICE BUILDINGS AND CHILD CARE CENTERS WITH SOME RESTRICTIONS THERE ARE PLANS TO REOPEN BARS AND BOWLING ALLEYS ON FRIDAY WASHINGTON STATE ANNOUNCED THE REOPENING OF ALL MEDICAL SERVICES, AND MASSACHUSETTS WILL BE THE SECOND TO LAST STATE IN THE COUNTRY TO EASE RESTRICTIONS THAT STATE’S GOVERNOR, CHARLIE BAKER, ANNOUNCED HIS STATE’S STRICT FOUR-PHASE PLAN >> THESE TWO WILL BE INSEPARABLE, GETTING BACK TO WORK AND FIGHTING COVID UNTIL THERE IS A MEDICAL BREAKTHROUGH WITH TREATMENTS OR A VACCINE Reporter: 21 STATES ARE STILL SEEING AN INCREASE IN NEW POSITIVE CASES THAT’S WHY SOME GOVERNORS ARE A LITTLE HESITANT TO OPEN TOO MUCH TOO SOON [ CHANTING ] >> OPEN NEW JERSEY NOW! Reporter: AMONG THOSE UNHAPPY WITH THEIR STATE’S SLOWER PACE, THE OWNERS OF THIS GYM IN NEW JERSEY WHO BELIEVE THE GOVERNOR’S STAY-AT-HOME ORDER VIOLATES THEIR CONSTITUTIONAL RIGHTS >> IF BIG BOX RETAILERS, LIQUOR AND GROCERY CAN OPERATE WITH THE PROPER HEALTH PROTOCOL IN PLACE, SO CAN EVERY SINGLE BUSINESS IN AMERICA >>> NYPD

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