Gold Price Hits 6-month High as Hits Continue for US Markets

Stocks open lower after Treasury secretary's call to bank CEOs

Just prior to this CNBC report being released, CNN published an article citing people familiar with Mnuchin's call to the banks, and it painted a picture of complete confusion on all sides. Asked regarding Fed Chairman Jerome H. Powell, Trump aforementioned that the financial organization was "raising interest rates too fast" however that he had "confidence" that the Fed would "get it pretty presently". The Nasdaq's bear market fall continues as well, sitting over 20 percent under August's record highs.

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

"The concern now in the market is actually that Treasury's out of touch with what's going on", he said. The Treasury Department issued a statement Sunday saying banks have adequate liquidity for lending, surprising investors who didn't know that might be an issue.

Troise said the Treasury call begs the question of whether Mnuchin has "no idea what he's doing" or if "there actually is a liquidity crisis". One of the executives said that the reasons for the market jitters include escalating trade tensions between the USA and China as well as the sudden departure of the well-revered Secretary of Defense, James Mattis.

By the thinnest of margins, the S&P 500 was spared its first 20 percent decline since 2009, a period that spans two presidential administrations and three Federal Reserve chairs.

Still, just the public suggestion that Trump might try to interfere so deeply with the Fed was unsettling to financial markets that have long operated on the presumption of the USA central bank's independence from political meddling.

The stock market is trying to rebound from a disastrous Christmas Eve, but a morning rally quickly ran out of steam.

However a source told Bloomberg that Mnuchin had done so without the advice of POTUS.

Trump expressed displeasure with the Fed after Mnuchin tweeted that Powell's job was safe.

As the turmoil ran rampant in the days leading up to Christmas, Treasury Secretary Steven Mnuchin made calls to the CEOs of the six largest banks in the United States to touch base on the country's economic status - a move that has been widely derided by market watchers. He cited 5-year-old restrictions on banks using their own capital to make speculative market bets, known as the Volcker Rule.

Mnuchin also tweeted on Sunday that he had checked with the heads of the six largest US banks to ensure they had enough liquidity to operate in a stock market that has tumbled sharply since October.

"There's simply no buyers out there", said Manulife AM senior portfolio manager Nate Thooft.

Among many other tweets about the market and economy, Trump has directly attacked the Federal Reserve, a practice avoided by other recent presidents in order to keep the Fed walled-off from politics.

A crisis call on Monday between US financial regulators and the Treasury Department did more to rattle markets than to assure them.

Traders have a shortened day on Monday for Christmas Eve, and markets will close early on Tuesday for the Christmas holiday.

A statement from the treasury divulged details of Mr Mnuchin's discussions with the top USA banks - a rare step for the department.

Related News:



Most liked

Daniel Cormier And Jon Jones Exchanged Heated Words On Social Media
Jones twice beat Daniel Cormier at light-heavyweight, including at UFC 214 to reclaim the title. Jones had been sidelined for an anti-doping violation for the past year and a half.

Third Canadian detained for working illegally: FM
Secretary of State Mike Pompeo directly asked China to release the Canadians, calling their detention unlawful and unacceptable. The show of support from allies is significant for Canada , which has felt relatively isolated in recent months.

Weather map snow forecast: Europe set for blast of ‘significant’ snow
The last time the city had snow on Christmas Day was back in 2010 and it's unlikely the long wait will end tomorrow. Thursday should bring us mostly rain as well, before we see the transition over to snow once the sun sets.

GoFundMe for Pres. Trump's wall raises $2 million in 2 days
Brian Kolfage started a GoFundMe page that has raised over $12 million since Sunday with a final goal of $1 billion. A crowdfunding campaign to build a wall on the southern border has raised almost $2.2 million in just three days.

Alex Ferguson Back In A Job At Man United
The 76-year-old suffered a brain haemorrhage earlier in the year - which left him having to go through an emergency operation.

USA shutdown could extend into new year, says official
But when an interviewer asked whether Democrats weren't going to provide any wall money, Merkley responded: "That's correct". Few things anger him more than anonymously sourced stories that paint a picture of dysfunction inside the White House.

National Christmas Tree goes dark, Trump fumes in United States chaos
That means Wednesday is the first day the public could begin to feel the effects of lost government services, Mulvaney said . Chris Van Hollen and Ben Cardin, who represent Maryland, where many DC-area federal employees live.

NORAD Santa 2018 Set to Go
Santa remembers, too, and as Santa and they talk through the year, they talk about some of his favorite memories of the area. The Santa-tracking website for NORAD, which is based near Colorado Springs, Colo., is noradsanta.org.

Indonesian tsunami wave crashed into stage during local band's performance
It's possible for an eruption to trigger a landslide above ground or beneath the ocean, both capable of producing waves, he said. Indonesia news websites described people running in fear from 5 metre waves after the tsunami hit on Saturday night.

Order signed for US military´s controversial Syria exit
In a separate tweet, Trump announced that his Secretary of State James Mattis will leave the post two months early. Darwish dismissed the claims as "untrue", calling them "old accusations" from the rival Syrian groups.

Missing Mom's Fiancé Arrested and Charged With First-Degree Murder
Frazee did not attend a December 10 news conference where Cheryl Berreth made a plea for information about her daughter. Berreth's mother repeatedly squashed speculation about her daughter's fiancé, as did police and his attorney.

[H]ardOCP: "Human Error" Allowed an Alexa User to Hear a Neighbor's History
But the research program is fraught with privacy data collecting pitfalls, of the kind that have recently roiled Facebook . And yet, how personal recordings of a man ended up being with a total stranger is a tale that can be turned into a movie.

Tsunami hits Indonesia after Krakatoa volcano erupts
Indonesia news websites described people running in fear from 5 metre waves after the tsunami hit on Saturday night. At least 20 people have been killed after a tsunami caused by a volcanic eruption hit beaches in Indonesia.

Jose Mourinho blames Paul Scholes, Rio Ferdinand for Manchester United sack
Scholes in particular has been scathing of Mourinho in recent months and said the coach was 'embarrassing' the club . I can't wait to help the team. "We're in a results business and we want to win games".

Liverpool's Christmas lead in Premier League no title guarantee - Jurgen Klopp
Liverpool have dropped just six points so far this season, but Klopp says his side can not afford to start getting carried away. The landscape got even better for the Reds on Saturday when Crystal Palace stunned their title rivals Manchester City 3-2.