The record collapse of the US stock indices on the eve of Christmas and New Year holidays can have sad consequences for the US Treasury Secretary Steven Mnuchin. According to CNN, citing an informed source in the White House, President Donald Trump is increasingly disappointed in his Minister and blames him for the situation in the securities market.
This crisis is the first serious stress test for the head of the financial Department. Last week he tried to stop the decline of indices. However, his statements following negotiations with key bankers, financiers and Industrialists failed to stabilize the markets. Mnuchin also attempted to select and submit to the President a positive data for economic statistics of the United States. But there is not succeeded.
Exchange fever in the US continues. The recent attempt by the country’s financial authorities to reassure investors has only harmed the cause. Meanwhile, independent experts emphasize that there is no real reason to panic.
The New York stock exchange opened after the Christmas break, first with a rise and then a new fall in prices. “The problem is that the US President Donald Trump is still creating a lot of uncertainty, and we can’t focus on the fact that many prices are tempting,” Spartan Capital Securities senior market economist Peter Cardillo told reporters.
On the pre-holiday Monday, the working session at the exchange was shortened. Nevertheless, in just half a day the key indicator – the Dow Jones index – then collapsed by 2.9%, breaking the anti-record of 1918 for trading on Christmas eve.
Other stock indices also collapsed that day. In General, As noted by the public radio of the United States (NPR), for us securities, the final year promises to be the worst since 2008, that is, since the great recession, and December – the worst since 1931, that is, with the great depression.
“The team for the prevention of recessions”
The Us Treasury Secretary Steven Mnuchin is trying to take action. On December 23, he spoke with the heads of the six largest banks in the country and made sure that they have enough liquidity, and on Monday convened a teleconference meeting of the working group on financial markets.
But official reports on this subject only added fuel to the fire. All at once drew attention to the fact that before the Sunday initiative of the Ministry of Finance in the creditworthiness of American banks, no one particularly doubted. And the mentioned working group, created after the stock market crash in 1987, informally referred in the United States Plunge Protection Team, that is, “the team to prevent sharp declines.”