Fed chairman Powell's job '100 pct' safe: Trump adviser

Trump once boasted of market gains, now tweets cause drops

Trump once boasted of market gains, now tweets cause drops

The conversations confirmed that "ample liquidity is available for lending to consumer and business markets", he said.

"It is unusual for the USA president to dictate the Federal Reserve and it is harmful for Trump to look into the ways of firing the chairman of the Fed".

Trump said he remained confident in American firms, and indicated investors should not fear the markets.

Jake Dollarhide, CEO of Longbow Asset Management, said the Treasury and the Fed do not want to be caught off guard as they were during the 2008 housing crisis and financial crisis. Trump again lashed out at the Fed in his Christmas message Tuesday, saying the Fed is raising rates because "they think the economy is so good".

Mnuchin aimed to allay investor anxiety, recounting on Twitter on Sunday a conference call with major bank CEOs, who confirmed that they had ample liquidity and believe the USA economy remains on solid footing. "And so I think that the momentum that we saw this year is carrying forward to next year".

Despite the recent stock market plunge, the U.S. economy is experiencing good numbers, overall, with unemployment at 3.7 per cent, the lowest in half a century, and inflation near the annual goal of 2 per cent.

After a weekend of market-rattling statements by President Donald Trump and Treasury Secretary Steven Mnuchin and the beginning of a federal government shutdown, the S&P 500 ended an abbreviated Christmas Eve trading session in bear market territory.

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"Yes, of course, 100 percent", Hassett told reporters when asked whether his job was safe, Reuters noted.

Investors have been anxious for months about the potential impact of the US-China trade conflict on the broader economy, which poses risks to the world's two biggest economies, which are highly interdependent.

In a sign Trump may have lost some faith in Mnuchin, the president has asked whether one or more of his advisers could meet with Powell, according to a person familiar with the matter.

The United States treasury secretary has on Monday, called the chief executive officers (CEOs) of six biggest banks of the U.S. and organized plans to summon a "plunge protection team", amid the USA government partial shutdown.

"We should feel comfort that there's a system in place now to say, "Hey, we may be going through another recession".

Earlier this month, the Fed followed through on expectations that it would increase interest rates by 0.25 to a range of 2.25 percent 2.5 percent - the highest level in a decade. CNN has previously reported that Trump was frustrated with Mnuchin because he pushed for Federal Reserve Chairman Jerome Powell's appointment.

Before that quarter-point rate rise, Trump had complained in a tweet that it was "incredible" for the Fed to consider "yet another interest rate hike".

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