Trump 'very happy' with Treasury chief Mnuchin: White House adviser

Trump 'very happy' with Treasury chief Mnuchin: White House adviser

The lagged effects of the Federal Reserve's interest rate hikes are beginning to weigh on the stock market.

According to Mnuchin, however, Trump said, "I totally disagree with Fed policy. Very smart person", he said.

But the source painted a different picture of Mnuchin's standing behind the scenes. They added: 'Mnuchin is under the gun'.

Stock prices have plunged in recent weeks on concerns about the economy.

"I am highly confident that the president is very happy with Secretary Mnuchin", Hassett told Fox Business host Charles Payne.

An administration source dismissed the latest round of rumors that the secretary's continued tenure was on the line. "They're doing very well", he said. The Dow Jones Industrial Average (DJIA) fell more than 650 points or 2.9%, more than twice the 100 year record set back in 1918 when it fell 1.1%. The two men spoke on a variety of issues, including the government shutdown and an update on the status of trade talks. He has been working to calm the markets over that time.

An insider had previously claimed Trump was upset over Mnuchin's recommendation to hire Federal Reserve Chairman Jerome Powell. The slide started in earnest with the President's own tweets following his announcement of a trade deal with Beijing, in which he suggested he may yet impose radically higher tariffs if he's not happy with negotiations.

The United States treasury secretary has on Monday, called the chief executive officers (CEOs) of six biggest banks of the USA and organized plans to summon a "plunge protection team", amid the U.S. government partial shutdown. In a recent tweet, Trump had been quoted saying, "The only problem our economy has is the Fed".

Bloomberg reported that Trump has asked one or more of his advisers to meet with Powell, a possible sign that he doesn't trust Mnuchin.

On Sunday, Mnuchin asked the heads of major financial institutions during a conference call whether they had enough liquid cash on hand to endure the coming rate hike. The benchmark S&P 500's e-mini futures contracts were dropped about a quarter of percentage. That same day, Trump fired off a series of tweets, including one attacking the Federal Reserve.

Hassett said that the ongoing budget impasse in which swaths of the federal government are going without funding, due to Congress' refusal to authorise Trump's demand for more money on a US-Mexico border barrier, would not harm the economy.

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