The ongoing exchange rate losses of the us stock market make the government in Washington is increasingly nervous: President Donald Trump turned on, even on Christmas eve itself and attacked again, the guardian of the currency, the Central Bank governors Jerome Powell. “The only Problem our economy has is the Fed,” he wrote on the short message service Twitter. The decision-makers in the Central Bank had no feel for the market.
The American Minister of Finance, Steven Mnuchin consulted with a crisis Committee made up of representatives of financial supervisors, which is otherwise only used in cases of great stock market turbulence, the equity market selloff. Allegedly, the regulators have found no particular abnormalities.
On Sunday had advised Mukhin already with Bank Board members about the situation. The money houses insured that they had sufficient liquidity was available for lending.
The stock exchanges, Mnuchin and his approach was calm, however, at all, on the contrary, The Dow Jones Index fell by 2.9 per cent to less than 22,000 points. Stocks on Wall Street declined also in the condensed business before Christmas, it’s noticeably and contributed to the worst December since 1931 in the times of the then world economic crisis. As a result, have fallen on Tuesday, the rates in Japan, the Nikkei Index fell by more than 5 per cent, in the course of a day.
Mnuchins response to the stock market downturn, Bank bosses to call and the President’s working group on financial markets convened (the so-called Plunge Protection Team), caused uncertainty and was seen by professionals on Wall Street as an Overreaction. “It seems, unexpectedly, suddenly, and unnecessarily,” said Michael Purves from the financial house of Weeden & co. Mnuchin have so far always been applied as the level-headed and reliable man in the Background in the Cabinet.