US Treasury Sec. Mnuchin: Fed is ahead of issues, nobody has to pull money out of banks

Eren Sengezer FXStreet

"The US banking system can handle this after the Fed's actions," US Treasury Secretary Mnuchin told CNBC on Monday, per Reuters. "There will be a surge of demand for stocks once coronavirus threat abates."

Mnuchin further explained that the Trump administration's goal is not to bail out companies. "The administration aims to ensure businesses have liquidity. The Fed is ahead of the issues, nobody has to pull money out of the banks," Mnuchin added.

Market reaction

Despite these comments, trading in major US equities got suspended on Monday after the S&P 500 erased more than 7% at the opening.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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