Mnuchin said on Sunday that he conducted a series of calls with CEOs of the country's six largest banks, namely Brian Moynihan, Bank of America; Michael Corbat, Citi; David Solomon, Goldman Sachs; Jamie Dimon, JP Morgan Chase; James Gorman, Morgan Stanley and Tim Sloan, Wells Fargo.
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"The CEOs confirmed that they have ample liquidity for lending to consumer, business markets, and all other market operations," the statement published on Twitter said.
On December 19, the US Federal Reserve’s policy-setting Federal Open Market Committee (FOMC) said that the US benchmark interest rate would increase by 25 basis points to a range of 2.25 to 2.5 percent. The Fed also indicated that it would press ahead with its plans for more rate hikes next year, despite signs that global economic growth could be slowing. The increase in rate in the banking system increases the cost of lending and thus has a negative effect on stock turnover. The announcement triggered a sharp sell-off in the US stock market.
