Top Trump official calls US bank CEOs in bid to calm markets

New York City. Following another down day and one of the worst trading months in recent history investors are nervously looking for

New York City. Following another down day and one of the worst trading months in recent history investors are nervously looking for

US Treasury Secretary Steven Mnuchin has made calls to the heads of the country's six largest banks, a move to reassure investors after huge falls in US stocks.

The broader S&P 500 index was down 1.5 per cent in the first five minutes of trading Monday, when markets were set to close at 1 pm for Christmas Eve.

US stocks have fallen sharply in recent weeks on concerns over slowing economic growth, with the S&P 500 index.SPX on pace for its biggest percentage decline in December since the Great Depression.

Treasury Secretary Steven Mnuchin phoned the heads of the largest USA banks on Sunday to make sure they had enough cash in expectation of a jittery market opening on Wall Street. With financial markets rattled by the partial government shutdown and the stock market's worst week in a decade, Mnuchin also plans to convene the president's working group on financial markets, better known as the "plunge protection team", the Guardian reports.

The group, which includes the Fed board of governors, the head of the SEC, and the Commodities Futures Trading Commission, also convened during the 2009 financial crisis - although Mnuchin provided weekend assurances that the USA maintains 'strong economic growth'.

LSU Football Players Involved in Shooting Revealed as Incident Ruled Self-Defense
The footballers are scheduled to attend the American college football Playstation Fiesta Bowl in Arizona on January 1. The person spoke to the AP on condition of anonymity because LSU and police have not released the players' names.

"The [bank's chief executives] confirmed that they have ample liquidity available for lending to consumer, business markets, and all other market operations", the Treasury said in a statement attached to a tweet from Mr Mnuchin.

Trump has periodically railed against Federal Reserve chair Jerome Powell, but that did not prevent a Fed committee from raising the government's key borrowing rate by 0.25 per cent last week.

Dysfunction in Washington isn't helping the situation, with a budget impasse between President Donald Trump and Congress triggering a partial US government shutdown that could last into the new year. Mnuchin said on Saturday Trump told him he had "never suggested firing" Powell. The Fed's independence is seen as a pillar of the US financial system.

In December alone, the S&P 500 is down almost 12.5 per cent, while the Nasdaq Composite has slumped 13.6 per cent.

The high-yield bond market, where companies with the weakest credit profiles raise capital, has not seen a deal all month. This article is strictly for informational purposes only.

Recommended News

  • S&P hits 16-month low as Wall St slides

    S&P hits 16-month low as Wall St slides

    Declining issues outnumbered advancing ones on the NYSE by a 3.97-to-1 ratio; on Nasdaq, a 3.41-to-1 ratio favored decliners. The S&P index recorded no new 52-week highs and 61 new lows, while the Nasdaq recorded four new highs and 445 new lows.
    Inter Suspend Nainggolan For Disciplinary Reasons

    Inter Suspend Nainggolan For Disciplinary Reasons

    In a brief statement on Sunday, Inter says it "can confirm Nainggolan has been temporarily suspended from football activity". He missed Inter's first two league matches of the season through injury but scored on his debut in a 3-0 win over Bologna .
    Trump moves up defense chief's exit to January 1

    Trump moves up defense chief's exit to January 1

    The move comes just three days after Mattis resigned in protest over Trump's decision to pull all US troops out of Syria. Mattis delivered his letter of resignation to the president on Thursday amid disagreements over Syria and Afghanistan.
  • Dhoni returns to T20 squad for New Zealand series

    Dhoni returns to T20 squad for New Zealand series

    Meanwhile, the selector's left out Dhoni for the series against Windies and T20I series against Australia owing to poor form. Pandey was on the bench for all five ODIs against West Indies, and didn't get a chance in the T20I series in Australia.
    Yemen's United Nations  cease-fire monitors on their way to Hodeida

    Yemen's United Nations cease-fire monitors on their way to Hodeida

    The text approved by the Security Council "insists on the full respect by all parties of the ceasefire agreed" for Hodeidah.
    Xiaomi Mi Play with Waterdrop Notch & Helio P35 SoC Launched

    Xiaomi Mi Play with Waterdrop Notch & Helio P35 SoC Launched

    The Mi Play will come with a 5.84-inch FHD+ display with a teardrop notch at the top to house the front-facing camera and sensors. As of now, the Mi Play has been launched only in China and there's no word if Xiaomi will bring the phone to India or not.
  • Nawaz Sharif sentenced to seven years in prison in controversial corruption case

    Nawaz Sharif sentenced to seven years in prison in controversial corruption case

    The judge on Dec 21 rejected an application by Sharif's lawyer Khawaja Haris to defer the judgment. Not long after, the top court also barred him from holding the leadership of his party.
    The 50th anniversary of Apollo 8: Humanity’s first trip to the Moon

    The 50th anniversary of Apollo 8: Humanity’s first trip to the Moon

    But without Apollo 8, noted George Washington's Logsdon, NASA likely would not have met President John F. The Apollo 8 presentation will also be streamed live on Griffith Observatory's YouTube channel.
    Knicks interested in trading for Bulls forward Parker

    Knicks interested in trading for Bulls forward Parker

    He would be a great fit for them and he would give them a lot of help since they are still without Kristaps Porzingis . It's obvious that the Knicks don't want Lee anymore so he should be the player that they trade to get Parker.
  • A new Banksy has been attacked by a ‘drunk halfwit’

    A new Banksy has been attacked by a ‘drunk halfwit’

    According to the BBC , a man in Port Talbot actually asked Banksy to paint a mural there - and the artist stunningly obliged. The father of one said he has not decided what to do with the artwork , and denied receiving any offers to sell it.
    Tsunami Kills 3 Members of Indonesian Rock Band

    Tsunami Kills 3 Members of Indonesian Rock Band

    Indonesian seismologists initially speculated that a landslide - possibly undersea - may have generated the tsunami late Saturday. But, he added, with 13% of the world's volcanoes in Indonesia alone, it was crucial for the country to develop such system.
    Installing iOS 12.1.2 might break cellular data, calling, and messaging

    Installing iOS 12.1.2 might break cellular data, calling, and messaging

    The main fixes of iOS 12.1.2 are meant to solve problems associated with eSIM support on the iPhone XR, XS, and XS Max . For those who have yet to update, it is advisable to stay put with your current iOS version until the next update.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.