Treasury Secretary Steven Mnuchin warns savvy investors and all other Americans that the current raging bull stock market will come to a painful and sudden halt if President Donald Trump’s tax-reform strategy doesn’t become law.
"There is no question that the rally in the stock market has baked into it reasonably high expectations of us getting tax cuts and tax reform done," Mnuchin said in the "Politico Money" podcast interview.
"To the extent we get the tax deal done, the stock market will go up higher. But there's no question in my mind that if we don't get it done you're going to see a reversal of a significant amount of these gains,"
Mnuchin also gave an "absolute guarantee" that Trump will sign a tax reform bill before the end of this year.
The S&P 500 has rallied 20 percent since the Nov. 8 election through Tuesday, CNBC reported.
Trump has tweeted more than 20 times since the election extolling the market's gains, the business network added.
Early Wednesday, Trump tweeted “Stock Market hits an ALL-TIME high! Unemployment lowest in 16 years! Business and manufacturing enthusiasm at highest level in decades!”
The Dow Jones Industrial Average was poised to open above 23,000 for the first time on Wednesday following a series of upbeat earnings reports from marquee companies.
The index briefly surpassed the milestone on Tuesday but closed 3 points short of the record level. The latest 1,000-point increase was covered in roughly half the time it took the index to move from 21,000 to 22,000, Reuters reported.
Solid earnings and hopes that President Donald Trump may be able to make progress on tax cuts have helped the market rally this year.
“Looks like it’s set for a good start, largely driven by strong earnings and positive economic growth,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
“We’re in a sweet spot where the economy is growing not too strong and not too weak, the Fed’s tightening but not too rapidly and earnings continue to expand. All the news is positive.”
(Newsmax wires services contributed to this report).
© 2024 Newsmax Finance. All rights reserved.