Fed chair’s job is not in jeopardy, White House economic adviser says

Trump once boasted of market gains, now tweets cause drops

Wall Street banks reassure US Treasury amid big market falls

In a tweet, Donald Trump's treasury secretary Steven Mnuchin wrote: "Today I convened individual calls with the CEOs of the nation's six largest banks".

The White House did not respond to a request for comment on reports that Trump is planning to meet with the Fed's Powell in the near future.

According to news reports, in recent weeks, the USA 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.

The President - answering reporters' questions at the White House after addressing U.S. armed forces members on a Christmas Day video conference call - said the Fed was hiking borrowing costs because the "economy is doing so well", adding that USA companies were having "record kinds of numbers" and it is a "tremendous opportunity to buy".

All 11 S&P 500 sectors finished down on the day on Monday, and all were in negative territory for the year. 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.

"Treasury's readout is unusual, in our view, given that bank liquidity is not a risk or concern that has been raised by regulators, economists or analysts", analysts at Height Securities said in a note.

He added: "I am not anxious [about Trump] because I know we are always going to do our jobs as we have always done them".

The news appeared to accelerate equities' decline Monday, marking the stock market's worst Christmas Eve performance on record. Mnuchin also tweeted that he had checked with the heads of the six largest US banks to ensure they had enough liquidity to operate in a stock market that has tumbled sharply since October.

In addition, Mnuchin said he will host a call Monday with the President's Working Group on Financial Markets, known unofficially as the "Plunge Protection Team".

"When the Dow is down 600 points, it's hard to say it was a positive", said J.J. Kinahan, chief market strategist at TD Ameritrade in Chicago. "So I think it's a tremendous opportunity to buy".

Trading volumes are expected to remain muted, with markets closing at 1:00 p.m. ET ahead of Christmas holiday on Tuesday, and that could exaggerate market movements.

President Donald Trump on Christmas Day hailed US companies as "the greatest in the world", adding that they present a "tremendous opportunity to buy" for investors.

About 5.9 billion shares changed hands in USA exchanges, compared with the 8.9 billion-share daily average over the last 20 sessions. It was the worst week for the S&P 500 since 2011.

Latest News