In a precautionary move, Treasury Secretary Steven Mnuchin spent Sunday on the phone speaking with the chief executives of some of the country’s largest banks to avoid yet another market whiplash when Wall Street opens Monday, according to a person familiar with the matter.
The secretary, who has been visiting his children in Cabo San Lucas, Mexico, tried to get ahead of further market jitters following reports that President Donald Trump was consulting advisers about whether he had the legal authority to fire Federal Reserve Chairman Jay Powell.
“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.”
Wall Street ended a brutal week on Friday on track for the worst month since the 2008 financial crisis, marking the a rout that has threatened to stop the longest-ever bull market.
In his conversations with executives, 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.”
It was the second time over the weekend Trump’s top finance chief tried to send a reassuring message to investors over alleged plans to oust Powell.
Mnuchin is so hot right now.