Mnuchin says market’s negative reaction to Fed ‘overblown’

WASHINGTON – Treasury Secretary Steven Mnuchin says that the negative market reaction following the Federal Reserve’s rate hike this week was “completely overblown.”

Mnuchin says the market overreacted, with computerized program trading taking over and driving stock prices down further. In a Fox Business interview Thursday, Mnuchin says that he believed markets were disappointed in Powell’s comments at a news conference following the meeting.

The Fed boosted its key policy rate for a fourth time this year but lowered its projections for further rate hikes from three to just two. However, this failed to calm investors’ concerns that the central bank is not taking into account warning signs that the economy is slowing.