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16 Mar 2020
US Treasury Sec. Mnuchin: Fed is ahead of issues, nobody has to pull money out of banks
"The US banking system can handle this after the Fed's actions," US Treasury Secretary Mnuchin told CNBC on Monday, per Reuters. "There will be a surge of demand for stocks once coronavirus threat abates."
Mnuchin further explained that the Trump administration's goal is not to bail out companies. "The administration aims to ensure businesses have liquidity. The Fed is ahead of the issues, nobody has to pull money out of the banks," Mnuchin added.
Market reaction
Despite these comments, trading in major US equities got suspended on Monday after the S&P 500 erased more than 7% at the opening.