Former Treasury Secretary Steven Mnuchin discounted risks of a US recession, and played down the current selloff in equities, advising investors against overreacting to President Donald Trump’s aggressive trade tactics.
“We came in with the market being fully priced, so I think a 5% to 10% correction on the S&P or the Nasdaq actually makes sense,” Mnuchin said in an interview with Bloomberg’s Saleha Mohsin Thursday. 
He spoke as the S&P 500 Index added to its recent selloff, with the gauge heading for its lowest close since September. Thursday’s drop followed threats by Trump to impose a 200% tariff on European alcoholic beverages, in the latest escalation in a growing transatlantic trade war.