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.

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