Former Secretary of Treasury Steven Manuchin said on Wednesday that he believes that “people are going a little ahead” for policy changes from Trump administration.
MNUCHIN, who served in the office of President Donald Trump during the first term of Republican at the office, told CNBC’s “Squalk Box” that he does not see signs of a adjacent recession for the American economy.
“I don’t think we are going for a recession. I don’t think the approach feels that we are going for a recession. And Larry Summers said that 50% is likely, I don’t just agree with it,” MNUCININ said while referring to recent comments from another former treasury head.
The first few months of Trump’s second term have been marked by extending trade tension between Canada, Mexico and the US and its leading trading partners of China. The White House has repeatedly announced and then rolled the tariff back. The federal government is also reducing jobs. Those factors have contributed to the recent decline in the confidence surveys of consumers and small business owners.
The GDPNOW Tracker of the Federal Reserve Bank of Atlanta currently states that the US economy will contract in the first quarter. However, this launch is an exterior relative to most Wall Street Economists who are generally predicting minor development.
MNUCININ also recently addressed the pullback in the stock market, indicating that the decline came from a high level. On Tuesday, S&P 500 Close 9.4% below your record high, and tech-havi Nasdac Composite Closed 13.7% from its high-water mark.
He said, “I don’t think anyone should see what is a natural, healthy improvement of these index, shows that there is trouble in the economy.”
Former executive of Goldman Sachs, MNUCHININ was widely seen as a stable appearance in the Trump administration and was one of the main architects of the Economic Assistance Schemes during the Covid-19 epidemic.
He said on Wednesday that while he was leading the Treasury Department, he did not focus on day-to-day stock market moves, but saw him as a good “barometer”. Trump has said in recent times that he is not paying attention to the stock market.
Since leaving the post, MNUCHIN has been running the investment firm Liberty Strategic Capital.
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