Stocks opening higher on Wall Street Wednesday

Stocks opening higher on Wall Street Wednesday

Stocks opening higher on Wall Street Wednesday

The six CEOs who spoke individually by phone with Mnuchin were "totally baffled" and found the encounters puzzling and largely unnecessary, a person familiar with the calls told CNN.

In his Christmas Day speech 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.

The S&P 500 stock index tumbled 2.7 percent on Monday in its worst-ever trading session before the Christmas holiday.

"It was totally out of left field and an odd thing to do", the person said, describing the timing of the call - on a Sunday before markets opened - as unusual.

Mnuchin shook financial analysts, bankers and economists Sunday by issuing an unusual statement declaring that the nation's six largest banks had ample credit to extend to American businesses and households.

The year started with President Donald Trump promising big growth for stocks. The president has acknowledged that he can't fire Powell, raising speculation he may target Mnuchin. "They don't have a feel for the market", Trump said on Twitter.

And there was more excitement on October 3: "The Stock Market just reached an All-Time High during my Administration for the 102nd Time, a presidential record, by far, for less than two years". Investors also were grappling with a federal government shutdown and reports that Trump privately discussed the possibility of firing the Federal Reserve chairman. "If the US economy turns south, global capital markets are in for a world of hurt". By June, the president was tweeting: "Stock Market up nearly 40% since the Election".

'This is nonsense, ' the source said about Mnuchin and who worked with Trump during his 2016 campaign.

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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.

Last week in an interview with Bloomberg News, Mnuchin pointed to longstanding phenomena to explain the stock market's recently volatility. The Fed chief has come under steady criticism by Trump, who has made no secret of his displeasure at the central bank's current policy and blamed it for Monday's sharp losses in a tweet. He cited 5-year-old restrictions on banks using their own capital to make speculative market bets, known as the Volcker Rule.

Bank stocks were among then biggest decliners Monday.

"There's simply no buyers out there", said Manulife AM senior portfolio manager Nate Thooft.

Traders have a shortened day on Monday for Christmas Eve, and markets will close early on Tuesday for the Christmas holiday.

The market shakiness comes hot on the heels of the most recent interest rate hike from the US Federal Reserve, which took place last Wednesday (December 19) and saw the target federal funds rate rise from 2.25 percent to 2.5 percent.

Mnuchin turned heads in Washington and Wall Street with his attempts to calm the markets over the weekend in an attempt to head off a plunge. Mnuchin tweeted that Trump told him he didn't he even have the authority to remove the central bank chief, a message that an administration official confirmed the president had authorized.

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