Having quickly tried to stymie any panic yesterday about rumors that Trump wants to fire Jay Powell:
“I never suggested firing Chairman Jay Powell, nor do I believe I have the right to do so.”
Treasury Secretary Mnuchin reported ly interrupted his time in Cabo San Lucas, Mexico, to call the chief executives of some of the country’s largest banks in an effort to calm any further collapse in the market when Wall Street opens Monday.
“It’s being pre-emptive,” a person familiar with the matter told CNN.
“It’s sending the proper message to the market so they can calculate the real picture into their Monday opening. They don’t have to wait until something happens to be reassured.”
We suspect Mr. Mnuchin is calling the wrong guys – does he not think they have been pulling every lever to try and stop the utter carnage in their own stock prices (which are down 12 of the last 13 days in the biggest crash since Aug 2011’s USA downgrade)…
In his conversations with executives, CNN reports that the person said, Mnuchin sought to convey the strength of the US economy despite recent market turbulence.
“The market volatility is not changing the strong fundamentals of the economy,” said the person.
“Systems remain normal.”
If systems remain normal, why are the stocks of the world’s largest and most systemic financial companies also collapsing?
And if systems are normal, why is the Treasury Secretary unterrupting his Mexican riviera time with Mrs. Mnuchin to beg the banks to do something?
Given the drop in USDJPY early indications already, we suspect Sunday night futures may not obey the Treasury Secretary’s wishes.
via RSS http://bit.ly/2rSEdP3 Tyler Durden