Mnuchin: Tax reform failure would hurt stock market

Here Come the Threats


Treasury Secretary Steven Mnuchin said if Congress fails to pass a bill overhauling the tax code, Wall Street will suffer.

“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 in an interview with a Politico podcast released Wednesday. “It also has baked into it optimism on regulatory relief which they’ve begun to see and there’s expectations [of continuing].”

“So I think to the extent we get the tax deal done, the stock market will go up higher. But there’s no question in my mind if we don’t get it done, you’re going to see a reversal of a significant amount of these gains,” he added.

The stock market has shown gains since President Trump was elected, with the Dow Jones Industrial Average reaching above 23,000 for a time on Tuesday.

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