Steven Mnuchin calls bank CEOs after Fed interest hike

Stock markets sell off as Mnuchin move to soothe investor fears backfires

Stock markets sell off as Mnuchin move to soothe investor fears backfires

With financial markets rattled by the partial government shutdown and the stock market's worst week in a decade, Mnuchin also plans to convene the president's working group on financial markets, better known as the "plunge protection team", the Guardian reports.

Asian stocks fell in early trade Monday despite a weekend call by Treasury Secretary Steven Mnuchin to top United States banking executives aimed at stemming market panic which saw Wall Street experienced its worst week in a decade.

"We continue to see strong economic growth in the USA economy with robust activity from consumers and business", Mnuchin said in a statement. The Working Group dates to March 1988 when Washington was still trying to figure out what was behind the "Black Monday" stock market crash of October 1987. The Nasdaq was down 0.69 per cent.

And Japan's markets were closed.

Mnuchin on Sunday released an unusual statement to say he had called the CEOs of the country's biggest banks. Many fear the shutdown may not be ended until January.

Mr Trump has criticised the USA central bank for raising interest rates this year, which could further dampen economic growth.

On Monday, the market recovered by late morning, but then slid even lower after President Donald Trump tweeted: "The only problem our economy has is the Fed". "The Fed is like a powerful golfer who can't score because he has no touch - he can't putt!" "Markets continue to function properly", he said.

Sunday's statement came a day after Mnuchin attempted late Saturday to reassure financial markets that Jerome Powell's job is safe, following a Bloomberg News story on Friday that Trump has discussed firing the Federal Reserve chairman. Mnuchin said on Saturday Trump told him he had "never suggested firing" Powell.

Mnuchin also addressed fears about the impact of the partial government shutdown.

Members include the Secretary of the Treasury, the Chairman of the Board of Governors of the Federal Reserve, the Chairman of the Securities and Exchange Commission and the Chairman of the Commodity Futures Trading Commission.

Financial markets are not in crisis but lately they have had a very bad run.

After Mnuchin asked on his calls whether their banks were seeing any liquidity issues, the executives all replied they were not.

The series of events amplified the anxiety emanating from the White House over shaky markets - and the effect they could have on Trump's political standing. "Trump needs a political win, a PR that looks like he's on top of the situation, and that's what the weekend strikes me as". USA stocks are on track for their worst month in a decade.

Keeping an eye on the financial systems is an appropriate role for the Treasury Department, to be sure. Eastern Time. The Dow Jones Industrial Average lost 444 points, or 2 percent, to 22,000.

"Personally I take it as a huge negative", Scot Lance, managing director at California-based Titus Wealth Management, said of Mnuchin's statement. Liquidity is the term used to refer to the ability of banks to lend money to clients. "That's turned into an economic crisis". That doesn't make me feel all warm and fuzzy.

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