Wall Street banks reassure US Treasury amid big market falls

Wall Street banks reassure US Treasury amid big market falls

Wall Street banks reassure US Treasury amid big market falls

An official from the White House has assured that the head of the US Federal Reserve is not at any risk of being dismissed from his position, amid the jitters that have been observed on Wall Street throughout the month that was partly caused by Trump's criticism of the Fed.

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

Two sources previously told CNN that Trump had begun polling advisers on whether he has the legal authority to fire Powell. "That's correct", reports Efe.

Trump blasted the Fed on Monday as the US economy's "only problem", and investors have closely followed reports the president had privately discussed the possibility of firing Powell. The S&P and Dow Jones Industrial Average .DJI are also not far off those levels, having sunk 17.5 percent and 16.3 percent, respectively, from their closing highs.

Trump's comments come as Wall Street ended a brutal week on Friday and remained on track for the worst month since the 2008 financial crisis.

But the comments were widely criticized by market watchers for raising new doubts, fears that were already brewing because of a partial USA government shutdown over Trump's battle with congressional Democrats to finance a wall on the border with Mexico.

According to news reports, in recent weeks, the United States shares have fallen down sharply over the concerns on slowing economic growth including the S&P 500 index on a track for its huge percentage decline since the great depression in December.

‘White Christmas’ is still a possibility for Whatcom County lowlands
Chris Wattie / Reuters A worker clears a sidewalk as light snow falls on Parliament Hill in on November 20, 2018. Meanwhile, it'll be mostly dry through the Christmas holiday with highs around 30 on Monday and Tuesday.

Global stocks have swooned in December amid a swirl of controversial statements from President Donald Trump and growing unease over the global economy.

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 drop in markets picked up last week after the Federal Reserve raised rates for the fourth time this year and said it would largely continue with its rate hike path and slim down its vast holdings of bonds, draining the easy money that has helped power the stock market's decade-long bull run.

"He raised the specter of concern in one of the most solid areas of the USA financial system, the solvency of the banks", said Washington, D.C., investor Michael Farr.

But on Monday, the President tweeted that the "only problem our economy has is the Fed," after which the market took a sharp drop.

Over the weekend, Treasury Secretary Steven Mnuchin set off market anxiety after he sought to reassure investors about the partial shutdown with a statement saying that major banks have "ample liquidity".

Mnuchin made the statement on Twitter after calling the leaders of the six banks, seeking to address an issue that had attracted little concern ahead of the treasury secretary's tweet.

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