US Fed chairman's job '100 pct' safe: Trump advisor

Trump once boasted of market gains, now tweets cause drops

Trump once boasted of market gains, now tweets cause drops

Trump reiterated his view that the Federal Reserve is raising interest rates too fast, but called the independent agency's rate hikes a "form of safety" for an economy doing well.

"I think the increasing of interest rates and the shrinking of the Fed portfolio is an absolute awful thing to do at this time, especially in light of my major trade negotiations which are ongoing, but I never suggested firing Chairman Jay Powell, nor do I believe I have the right to do so, '" tweeted Mnuchin on Saturday.

Speaking to reporters in the Oval Office after a Christmas video conference with US troops deployed overseas, Trump also said USA companies were "the greatest in the world" and presented a "tremendous" buying opportunity. He promised, the President plans to dismiss the Fed Chairman Jerome Powell.

All three major indexes ended down more than 2 percent the day before the Christmas holiday.

Trump, however, said on Christmas Day that he had confidence in Mnuchin, telling reporters that Mnuchin is a "very talented, very smart person". "I think it's a tremendous opportunity to buy".

U.S. President Donald Trump's budget director and chief of staff, Michael Mulvaney, said on Sunday the partial U.S. government shutdown could continue into January, when the new Congress convenes and Democrats take over the House of Representatives. -China trade dispute and interest rate hikes - has put the S&P 500 .SPX on pace for its biggest monthly percentage decline since 2008. The S&P 500 has lost about 19.8 percent from its September 20 closing high, just shy of the 20 percent threshold that commonly defines a bear market.

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"We continue to see strong economic growth in the USA economy with robust activity from consumers and business", Mnuchin said. "In the face of a large correction in the market, there seems to be disarray and disunity and people aren't speaking with one voice, which I think is discouraging to anybody in the market".

In a subsequent press conference, responding to questions about Trump's criticism, Powell said: "Political considerations play no role in our decisions about monetary policy".

The Dow on Monday fell 315 points, or 1.1 percent, to 22,123 in early trade, while the S&P 500 and Nadsaq both fell more than 1 percent.

On Monday, Trump lashed out at the central bank again in a tweet, saying, "The only problem our economy has is the Fed".

In an official statement, the treasury said he held talks with the CEOs of Wells Frago, Morgan Stanley, JP Morgan Chase, Goldman Sachs, Citi and Bank of America.

The call struck market observers as curious given that investors have expressed no concerns about the banks' financial condition.

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