Trump adviser says jobs of Fed chair, treasury secretary safe

Trump adviser says jobs of Fed chair, treasury secretary safe

Mnuchin quoted the president as saying he disagreed with the "increasing of interest rates...especially in light of my major trade negotiations which are ongoing, but I never suggested firing Chairman Jay Powell, nor do I believe I have the right to do so".

Trump has repeatedly and publicly lambasted Powell over the central bank's raising of interest rates.

Speaking to reporters in the Oval Office after a Christmas video conference with US troops deployed overseas, Trump also said USA companies were "the greatest in the world" and presented a "tremendous" buying opportunity. Futures on the S&P 500 Index jumped 0.7 per cent as of 7.26am NY time, the first advance in two weeks and the largest climb in more than three weeks.

WASHINGTON | President Donald Trump says he has confidence in Treasury Secretary Steven Mnuchin (mih-NOO'-shin), calling him a "very talented guy" and a "very smart person".

"I am highly confident that the president is very happy with Secretary Mnuchin", White House Council of Economic Advisers Chairman Kevin Hassett told Fox Business Network.

The stock market was only open for half a day Monday, and that was more than enough time for the Dow Jones Industrial Average to drop 2.9 percent to 21,792.20.

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Among issues rattling investors are the ongoing USA trade dispute with China, the interest rate rise and the Friday's partial government shutdown, which followed Congress's failure to agree a budget over funding for Trump's border wall. We have companies, the greatest in the world, and they're doing really well. On concern of a weaker economic growth and Federal Reserve's much disputed rate hike, the United States stocks had dropped sharply and the S&P 500 plunge gathered pace. However, the Central Bank only two interest rate expected increases in the coming year, rather than three, as in September, indicated. "And so I think that the momentum that we saw this year is carrying forward to next year".

"The CEOs confirmed that they have ample liquidity available for lending", the Treasury Department said.

Monday morning's drop in US financial markets began after Trump tweeted about the Fed. The Nasdaq lost 2.2 percent to 6,192.92.

Mnuchin's attempts over the weekend to assure investors only seemed to make matters worse as the confusing signals from Washington sent the markets plunging.

The Wall Street Journal reported that stocks would likely post their single worst month since October 2008, when the market was being battered by the global financial crisis caused by a reckless lending spree that prompted a taxpayer-backed bailout of several USA banks.

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