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Trump blasts Fed for hiking interest rates, stands behind ‘talented guy’ Mnuchin

Trump blasts Fed for hiking interest rates, stands behind ‘talented guy’ Mnuchin

In a sign that Trump may have lost faith in his Treasury secretary, he has asked if another member of his staff could meet with Federal Reserve Chairman Jerome Powell, the report said. The Nasdaq's bear market fall continues as well, sitting over 20 percent under August's record highs.

Still, Trump, on Christmas Day, called the Treasury secretary a "very talented guy" and a "very smart person". Other concerns roil the market The partial shutdown of the USA government is also worrying investors.

Mnuchin tweeted Sunday that he had called the "CEOs of the nation's six largest banks" in a bid to calm any financial-industry jitters.

Or as the CNN source said, "Mnuchin is under the gun".

"The market is concerned about what is happening in D.C.", he said. Mnuchin "also confirmed that they have not experienced any clearance or margin issues and that the markets continue to function properly", according to the statement.

The slide - generated entirely by confused messaging from Donald Trump and his administration, saw the wider United States market slide into the grip of the bear.

Wall Street is closely following reports that Trump had privately discussed the possibility of firing Powell, who became the Fed chief early last February after being appointed by Trump and has continued the path of gradual rate hikes started by his predecessor, Janet Yellen. "If the U.S. economy turns south, global capital markets are in for a world of hurt".

How does a bear market differ from a correction?

The president expressed his displeasure Monday with the Fed after Mnuchin tweeted on Saturday that Powell's job was safe.

Last week in an interview with Bloomberg News, Mnuchin pointed to longstanding phenomena to explain the stock market's recently volatility. The current bull market has been going on for nearly 10 years.

Technology companies, health care stocks and banks took some of the heaviest losses in the broad sell-off, which followed news that the U.S. Treasury Secretary called the CEOs of six major banks Sunday in an apparent attempt to stabilize jittery markets.

"I don't know anybody who thought before last night that banks were suffering from lack of liquidity (i.e., a situation like the financial crisis)", Roberto Perli, a partner with Cornerstone Macro LLC, wrote in an analysis Monday.

This story has been published from a wire agency feed without modifications to the text.

The move "smacks of desperation and nervousness", said Paresh Upadhyaya, a portfolio manager at Amundi Pioneer Asset Management in Boston.

"The fact is that the economy is doing so well that they raised interest rates", the president said.

Mnuchin took to Twitter again on Sunday to say he'd spoken to heads of the biggest USA banks about liquidity and lending infrastructure, and reconvened a presidential working group established to sort out the Crash of 1987.

The stock market closed at 1 p.m. EST (1800 GMT) ahead of Tuesday's Christmas holiday.

Speaking of 2008, the United States Treasury Secretary, Steve Mnuchin, released an absolutely weird statement about banking liquidity on Christmas Eve (a bank is liquid when it can easily convert assets to cash) that should send chills up the spines of those familiar with the Great Recession.

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