Stock swoon has Mnuchin, Powell talking daily
Trump's money men are in close contact amid stock 2020 market swings
Two of President Trump's top money men are working in tandem to monitor the financial fallout of the coronavirus.
Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell continue to "speak daily" amid the extreme market swoons, which continued this week.
DOW ADDS 1,167.14 POINTS AS TRUMP TALKS ECONOMIC BONUS PLAN
Separately, the two participated in a call for the President's Working Group on Financial Markets, which also included Vice Chair Randal Quarles, Federal Reserve Bank of New York President John Williams, SEC Chairman Jay Clayton, CFTC Chairman Heath Tarbert, Comptroller of the Currency Joseph Otting and FDIC Chairman Jelena McWilliams. The group is expected to reconvene on March 23.
According to the Treasury Department, the group discussed the recent extreme market volatility and the resiliency of the financial markets. On Tuesday the Dow tacked on more than 1,167 points in what was a choppy session, at one point driving the Dow into negative territory. The markets responded favorably to Trump's plan for a potential payroll tax, which ultimately could become permanent putting more money in the pockets of consumers.
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The rebound follows the 2,013.76 point drop on Monday, the worst session since the financial crisis which tripped circuit breakers on the New York Stock Exchange designed to pause trading and calm panic in the market place.
Coronavirus has been the primary catalyst for the swings, but Monday's selloff was driven by a steep decline in oil — more than 30 percent — as Saudi Arabia and Russia engaged in a price war.
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Trump blasted both countries on Twitter.
|ICE||INTERCONTINENTAL EXCHANGE INC.||104.28||+1.55||+1.51%|
|CME||CME GROUP INC.||191.52||+2.59||+1.37%|
|CBOE||CBOE GLOBAL MARKETS INC.||133.97||+1.66||+1.25%|
Despite the swings and above-average trading volume, financial stock, options and commodity exchanges have absorbed the action without incident thus far.
Speaking to FOX Business on Monday New York Stock Exchange President Stacey Cunningham assured investors the precautions such as circuit breakers designed to handle extreme days work.
"It's important for investors to keep in mind markets are here for the long term and they shouldn't react to these momentary disruptions" she advised.