The Secretary of the Treasury of the USA contacts with the great bankers to transmit confidence | Economy

The Secretary of the Treasury of the USA contacts with the great bankers to transmit confidence | Economy



The Wall Street crash It is getting very nervous to Donald Trump, who not even three months ago scored as his own merit the longest comeback in the history of New York parquet. The president's anxiety reached the point that Treasury Secretary Steven Mnuchin made contact during the weekend with the main executives of the big banks of the United States to try to contain the negativity that has burdened the main indices. in the last sessions. The US Stock Exchange Friday closed its worst week since the Great Crisis.

"All confirmed that there is ample liquidity available to lend to the markets of consumers and companies," says the head of the Treasury portfolio in a press release. Mnuchin has spoken, in particular with Jamie Dimon, CEO of JPMorgan Chase; Brian Moynihan, of Bank of America; Michael Corbat, of Citigroup; Tim Sloan, of Wells Fargo; David Solomon, of Goldman Sachs; and Jamie Gorman, of Morgan Stanley. The main body of American finance.

They agreed, according to Mnuchin, that the economy grows with "solidity". The aim of this maneuver is to encourage investors in the final stretch of the year after the strong correction of the last few weeks. The S & P 500 has seen 18% of its value evaporate since the annual high and the Nasdaq is already in the bear market zone. The Secretary of the Treasury will speak on Monday with the heads of the agencies and agencies that regulate the financial system.

The president attributes this tension to the rise in interest rates. In full fury, Steven Mnuchin had to also come to the fore this Saturday to deny that Trump is considering firing Jerome Powell at the head of the Federal Reserve (the US central bank), as had been speculated in recent days. The Republican even said that the Fed was "crazy" and hours before starting its last meeting, on Tuesday and Wednesday of last week, he expressly asked to look at the "sentiment" of the market.

The message of confidence that Mnuchin tries to send is in contradiction with the president's rhetoric. Powell justified the withdrawal of stimuli as a necessity to avoid an overheating of the economy that forces to be more aggressive in the process of normalization. The Fed admits, in any case, that there are "opposing currents" that invite you to be vigilant and therefore act on the basis of data, not political pressure.

The markets will open on Monday, although they will operate only half a day on Christmas Eve. The futures indicated a slight drop at the time of publication of the communiqué signed by Mnuchin. The note also refers to the partial closure of the Administration for the political shock derived from the financing of the wall with Mexico, a situation that could last several days. The Secretary of the Treasury assures that the essential personnel will continue working.

.



Source link