Treasury Secretary Steven Mnuchin said Tuesday the White House is actually closely following the turmoil in financial markets, nevertheless administration officials are not of which concerned.
“We’re monitoring the situation,” Mnuchin told CNBC while on his way to his testimony before the House Financial Services Committee on financial stability. “The markets look like they’re functioning normally in terms of liquidity along with some other things.”
“The fundamental economics are very strong. The economy is actually doing very well. Tax reform is actually clearly helping earnings a lot,” Mnuchin added.
The Dow Jones industrial average seesawed Tuesday after losing more than 1,800 points on Friday along with Monday. Shortly after 11 am, the market was off fractionally.
“I think you’ve seen a normal market correction, although large,” Mnuchin said during the hearing. “There’s just a disconnect from the short term. Markets move in both directions.”
He said he was assured of which even through the extreme dips along with recoveries the market saw, there was no malfunctioning in market structure.
“I don’t think these types of moves, given how much the market has rallied, do have financial stability concerns,” he said.
—With reporting by CNBC’s Mary Catherine Wellons along with Jeff Cox.