US Secretary of Treasury Says He is Closely Following Financial Markets

Treasury Secretary Steven Mnuchin said Tuesday the White House is closely following the turmoil in financial markets, but administration officials are not that concerned.

“We’re monitoring the situation,” Mnuchin told CNBC while on his way to his testimony before the House Financial Services Committee on financial stability. “The markets look like they’re functioning normally in terms of liquidity and other things.”

“The fundamental economics are very strong. The economy is doing very well. Tax reform is clearly helping earnings a lot,” Mnuchin added.

The Dow Jones industrial average seesawed Tuesday after losing more than 1,800 points on Friday and Monday. Shortly after 11 am, the market was off fractionally.

“I think you’ve seen a normal market correction, although large,” Mnuchin said during the hearing. “There’s just a disconnect in the short term. Markets move in both directions.”

He said he was assured that even through the extreme dips and recoveries the market saw, there was no malfunctioning in market structure.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza