WASHINGTON – US Treasury secretary Steven Mnuchin called the general managers of six large banks on Sunday, trying to calm the upset financial markets that emerged from the turbulent week in the stock market, which is currently reinforcing the potential repercussions of the US government's partial shutdown.
In an unusual move Mnuchin revealed talks with the heads of Bank of America, Citi, Goldman Sachs, JP Morgan Chase, Morgan Stanley and Wells Fargo in a tweet about private conversations.
Mnuchin said the CEOs assured him that they had enough money to fund all of their normal operations, even though there were no major liquidity problems.
Fears of a slowdown in economic growth and rising interest rates have accused the US market of the worst week for more than seven years. If you do not pay attention to it, from October 2008, the stock markets start working in the worst month when the market was hit by the global financial crisis. This crisis triggered a reckless credit crunch that prompted taxpayers to rescue several US banks.
But the situation is radically different since the US economy has been steadily increasing since 2009. Most experts believe growth will continue in the US, but there are signs that Europe and China are slowing down.
Dysfunction in Washington does not help in this situation, with the budgetary stalemate between President Donald Trump and Congress, which is launching a partial closure of the US government, which may last until the new year.