United States President Donald Trump showered confidence in Treasury Secretary Steven Mnuchin who has been troubled by a crisis that is a first for him. Trump’s comments were however unable to reaffirm confidence of Wall Street investors unnerved by the issues ongoing in the economy of the country and the feud between Trump and the US Federal Reserve.
Mnuchin is a “very talented guy, very smart person”, said Trump while talking to reporters at the White House on Christmas morning.
The president was however again critical of the polices and measures taken by Fed and that of its chairman, Jerome Powell, and said that the “they’re raising interest rates too fast” while referring to the actions of the Fed.
On Monday, an emergency meeting with top U.S. financial regulators was called by Mnuchin on Monday after US stock market dropped continuously for weeks. That meeting was preceded by a over the phone conversation with bosses of six major banks in the US and Mnuchin on Sunday. In a statement issued by the Treasury Department following the discussions with the banks, where it said that the banks have assured the department of possessing adequate liquidity which would be enough for lending.
These moves however had a counter effect on investors as there was confusion over the economic policies of the Trump administration among concerns about reports that Trump was considering firing Powell as the Fed Chairman.
The Fed is raising rates “because they think the economy is so good”, said Trump on Tuesday when he was asked whether he also had confidence on Powell.
It is also being rumoured that since Mnuchin had recommended Powell’s nomination and given the level of frustration that Trump has developed over the Fed and its policies related to raising rates – which had been expressed by him multiple times in tweets and interviews, the heat may turn to Trump’s Treasury secretary. There have also been reports speculating the possibility of Mnuchin being removed from his position while there were other reports that estimated that the length of time Mnuchin remains in office is dependent on the speed at which market continue its slide.
The stock market has been looked at as a benchmark for his presidency by Trump since he assumed office. But much of the gain that the markets had made since he was elected have been lost because of months of turmoil because of growing concerns among investors of the fallout on the domestic and global economy because of the trade war with China and trade spat with Europe.
Us stocks continued to slide even after Mnuchin’s call on Monday with the benchmark S&P 500 hitting its lowest level in 20 months. There have also been rising concerns after Trump commented that he cannot fire Powell which means that Mnuchin could be targeted.
“There are plenty of people inside the White House who are not fans of Mnuchin who are happy to throw him under the bus,” said Stephen Myrow, managing partner at Beacon Policy Advisors in Washington and a former Treasury official. “Up ’til now, he’s been protected by the fact that Trump liked him and he’s been a loyalist.”
(Source:www.time.com)
Mnuchin is a “very talented guy, very smart person”, said Trump while talking to reporters at the White House on Christmas morning.
The president was however again critical of the polices and measures taken by Fed and that of its chairman, Jerome Powell, and said that the “they’re raising interest rates too fast” while referring to the actions of the Fed.
On Monday, an emergency meeting with top U.S. financial regulators was called by Mnuchin on Monday after US stock market dropped continuously for weeks. That meeting was preceded by a over the phone conversation with bosses of six major banks in the US and Mnuchin on Sunday. In a statement issued by the Treasury Department following the discussions with the banks, where it said that the banks have assured the department of possessing adequate liquidity which would be enough for lending.
These moves however had a counter effect on investors as there was confusion over the economic policies of the Trump administration among concerns about reports that Trump was considering firing Powell as the Fed Chairman.
The Fed is raising rates “because they think the economy is so good”, said Trump on Tuesday when he was asked whether he also had confidence on Powell.
It is also being rumoured that since Mnuchin had recommended Powell’s nomination and given the level of frustration that Trump has developed over the Fed and its policies related to raising rates – which had been expressed by him multiple times in tweets and interviews, the heat may turn to Trump’s Treasury secretary. There have also been reports speculating the possibility of Mnuchin being removed from his position while there were other reports that estimated that the length of time Mnuchin remains in office is dependent on the speed at which market continue its slide.
The stock market has been looked at as a benchmark for his presidency by Trump since he assumed office. But much of the gain that the markets had made since he was elected have been lost because of months of turmoil because of growing concerns among investors of the fallout on the domestic and global economy because of the trade war with China and trade spat with Europe.
Us stocks continued to slide even after Mnuchin’s call on Monday with the benchmark S&P 500 hitting its lowest level in 20 months. There have also been rising concerns after Trump commented that he cannot fire Powell which means that Mnuchin could be targeted.
“There are plenty of people inside the White House who are not fans of Mnuchin who are happy to throw him under the bus,” said Stephen Myrow, managing partner at Beacon Policy Advisors in Washington and a former Treasury official. “Up ’til now, he’s been protected by the fact that Trump liked him and he’s been a loyalist.”
(Source:www.time.com)
