Steve Mnuchin’s Attempt To Calm Investors About The Economy Totally Backfired

Image by Getty Images
An attempt by Treasury Secretary Steven Mnuchin to calm fears of a nose-diving economy backfired Sunday after his statements prompted worry from the very people he was speaking to, Bloomberg reported.
In a statement released Sunday afternoon, Mnuchin said he called the CEOs of the country’s six largest banks, and that the CEOs reassured him that they have “ample liquidity,” or plenty of cash reserves. But, as Bloomberg put it, many are questioning “why Mnuchin answered a question that no one was asking.” Despite the recent economic downturn, few analysts have expressed concerns about a broader lack of liquiity.
“My initial instinct is this [Mnuchin’s statement] isn’t necessarily a positive thing, because it portrays that there’s worries that there is a bigger, broader issue,” Nathan Thooft, head of global asset allocation Manulife Asset Management, told Bloomberg.
This is amazing. It’s as if Mnuchin was trying to create a panic over something nobody was worried about until this release 1/ https://t.co/YJsGnEyOQD
— Paul Krugman (@paulkrugman) December 23, 2018
The Atlantic suggested that Mnuchin’s statements could have three meanings: One, it was meant to reassure President Trump about the market; two, to reassure investors; or three, it is evidence that Mnuchin has “troubling insider knowledge” about the immediate future of the economy.
Mnuchin: Just wanna let everyone know there’s *not* a liquidity crisis.
General public: Wait, what? Who was talking about a liquidity crisis?
Mnuchin: No one! No need to talk about a liquidity crisis! Probably not an issue!
Public: Probably?
Mnuchin: I’m sure it’ll be fine… https://t.co/wsEaKExMJ2
— Matt Fuller (@MEPFuller) December 23, 2018
Mnuchin has not issued any statements on his calls since Sunday.
Ari Feldman is a staff writer at the Forward. Contact him at [email protected] or follow him on Twitter @aefeldman
The Forward is free to read, but it isn’t free to produce

I hope you appreciated this article. Before you go, I’d like to ask you to please support the Forward.
At a time when other newsrooms are closing or cutting back, the Forward has removed its paywall and invested additional resources to report on the ground from Israel and around the U.S. on the impact of the war, rising antisemitism and polarized discourse.
Readers like you make it all possible. We’ve started our Passover Fundraising Drive, and we need 1,800 readers like you to step up to support the Forward by April 21. Members of the Forward board are even matching the first 1,000 gifts, up to $70,000.
This is a great time to support independent Jewish journalism, because every dollar goes twice as far.
— Rachel Fishman Feddersen, Publisher and CEO
2X match on all Passover gifts!
Most Popular
- 1
Film & TV What Gal Gadot has said about the Israeli-Palestinian conflict
- 2
News A Jewish Republican and Muslim Democrat are suddenly in a tight race for a special seat in Congress
- 3
Opinion Is this new documentary giving voice to American Jewish anguish — or simply stoking fear?
- 4
Opinion Mike Huckabee said there’s ‘no such thing as a Palestinian.’ It’s worth thinking about what that means
In Case You Missed It
-
Opinion Think every Palestinian in Gaza is Hamas? This week’s protests prove you’re wrong
-
Opinion A Palestinian Oscar-winner’s arrest shocked the world. For these Jewish activists, it was terrifyingly normal
-
Opinion In the Trump administration and Israel, a grotesque display of virility coupled with a loss of humanity
-
Fast Forward Cornell’s new Jewish president says he is ‘very comfortable with where Cornell is currently’
-
Shop the Forward Store
100% of profits support our journalism
Republish This Story
Please read before republishing
We’re happy to make this story available to republish for free, unless it originated with JTA, Haaretz or another publication (as indicated on the article) and as long as you follow our guidelines.
You must comply with the following:
- Credit the Forward
- Retain our pixel
- Preserve our canonical link in Google search
- Add a noindex tag in Google search
See our full guidelines for more information, and this guide for detail about canonical URLs.
To republish, copy the HTML by clicking on the yellow button to the right; it includes our tracking pixel, all paragraph styles and hyperlinks, the author byline and credit to the Forward. It does not include images; to avoid copyright violations, you must add them manually, following our guidelines. Please email us at [email protected], subject line “republish,” with any questions or to let us know what stories you’re picking up.