Trump says he's confident in Mnuchin, but Fed is raising rates too fast

President Donald Trump said Tuesday he remains confident in his treasury secretary, a day after markets tank...

Posted: Dec 26, 2018 4:19 PM
Updated: Dec 26, 2018 4:19 PM

President Donald Trump said Tuesday he remains confident in his treasury secretary, a day after markets tanked on fears about the Federal Reserve and a peculiar call between Treasury Secretary Steve Mnuchin and bank CEOs.

"Yes I do," Trump said when asked whether he had confidence in Mnuchin. "Very talented, very smart person."

Banking, finance and investments

Business figures

Business, economy and trade

Donald Trump

Economic policy

Economy and economic indicators

Government organizations - US

Interest rates

Monetary policy

Political Figures - US

Steven Mnuchin

The Fed

US federal departments and agencies

US government independent agencies

Still, Trump repeated his belief the Federal Reserve is raising interest rates too quickly, blaming the decision on a booming economy.

"They're raising interest rates too fast," he said in the Oval Office after a Christmas Day phone call with US troops. "They think the economy is so good but I think that they will get it pretty soon, I really do."

"The fact is the economy is doing so well they're raising interest rates," he said.

Trump said he remained confident in American firms, and indicated investors should not fear the markets.

"I have great confidence in our companies. They're doing very well," he said. "I think its a tremendous opportunity to buy. Really a great opportunity to buy."

Trump's comments come as Wall Street ended a brutal week on Friday and remained on track for the worst month since the 2008 financial crisis.

Mnuchin held a call with big bank CEOs on Sunday following the turbulent week on Wall Street.

After the call, the secretary issued a statement publicly declaring that the markets have enough liquidity for lending.

The six CEOs who spoke individually by phone with Mnuchin were "totally baffled" and found the encounters puzzling and largely unnecessary, a person familiar with the calls told CNN.

Investors have also been concerned that Federal Reserve Chairman Jerome Powell may be fired by Trump, who has begun asking advisers whether he has the legal authority to fire the Fed chair. Part of Trump's frustration with Powell has been the Fed chair's announcement last week of another hike in the benchmark interest rate, which caused markets to tumble.

Mnuchin tweeted on Saturday that he spoke with the President, relaying that Trump said, "I never suggested firing Chairman Jay Powell, nor do I believe I have the right to do so."

But on Monday, the President tweeted that the "only problem our economy has is the Fed," after which the market took a sharp drop.

Mnuchin's attempts over the weekend to assure investors only seemed to make matters worse as the confusing signals from Washington sent the markets plunging.

The markets closed Christmas Eve down sharply, with the Dow dropping 653 points and the S&P 500 nearing a bear market.

This story has been updated.

West Lafayette
Clear
67° wxIcon
Hi: 85° Lo: 61°
Feels Like: 67°
Kokomo
Clear
65° wxIcon
Hi: 83° Lo: 58°
Feels Like: 65°
Rensselaer
Clear
64° wxIcon
Hi: 80° Lo: 54°
Feels Like: 64°
Fowler
Clear
64° wxIcon
Hi: 81° Lo: 57°
Feels Like: 64°
Williamsport
Scattered Clouds
66° wxIcon
Hi: 84° Lo: 60°
Feels Like: 66°
Crawfordsville
Broken Clouds
64° wxIcon
Hi: 84° Lo: 62°
Feels Like: 64°
Frankfort
Clear
65° wxIcon
Hi: 83° Lo: 59°
Feels Like: 65°
Delphi
Clear
67° wxIcon
Hi: 84° Lo: 57°
Feels Like: 67°
Monticello
Clear
64° wxIcon
Hi: 82° Lo: 55°
Feels Like: 64°
Logansport
Clear
64° wxIcon
Hi: 83° Lo: 55°
Feels Like: 64°
Active Weather Pattern for the Work Week.
WLFI Radar
WLFI Temps
WLFI Planner

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 74992

Reported Deaths: 3044
CountyConfirmedDeaths
Marion15963725
Lake7632275
Elkhart488385
Allen3937163
St. Joseph354682
Hamilton2803104
Vanderburgh199713
Hendricks1901108
Cass17969
Johnson1767118
Porter133839
Clark124447
Tippecanoe122111
Madison98765
LaPorte92130
Howard90565
Kosciusko86212
Bartholomew80147
Floyd79146
Marshall79022
Monroe75930
Delaware73852
Dubois70012
Noble68429
Boone68346
Hancock67038
Vigo66810
Jackson5885
Warrick58630
LaGrange55910
Shelby55827
Grant52830
Dearborn50828
Morgan48334
Clinton4403
Henry38520
Wayne37710
White37210
Montgomery35421
Lawrence35027
Harrison34123
Decatur33832
Putnam2908
Miami2742
Daviess27320
Scott26810
Greene25134
Jasper2452
Franklin24314
DeKalb2354
Gibson2284
Jennings22612
Steuben2113
Ripley2087
Carroll1932
Fayette1907
Perry18612
Starke1787
Posey1770
Orange17324
Wells1712
Wabash1703
Fulton1692
Jefferson1652
Knox1590
Whitley1546
Tipton14311
Washington1421
Spencer1363
Sullivan1341
Clay1245
Huntington1243
Randolph1234
Newton11810
Adams1022
Jay920
Owen911
Pulaski831
Rush804
Brown741
Fountain742
Blackford652
Ohio655
Benton620
Pike560
Vermillion550
Parke521
Switzerland520
Crawford450
Martin450
Union410
Warren231
Unassigned0206

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events