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Treasury Secretary Steven Mnuchin said Tuesday the White House is closely following the turmoil in financial markets, but administration officials are not that concerned.
"We're monitoring the situation," Mnuchin told CNBC while on his way to his testimony before the House Financial Services Committee on financial stability. "The markets look like they're functioning normally in terms of liquidity and other things."
"The fundamental economics are very strong. The economy is doing very well. Tax reform is clearly helping earnings a lot," Mnuchin added.
The Dow Jones industrial average seesawed Tuesday after losing more than 1,800 points on Friday and Monday. Shortly after 11 am, the market was off fractionally.
"I think you've seen a normal market correction, although large," Mnuchin said during the hearing. "There's just a disconnect in the short term. Markets move in both directions."
He said he was assured that even through the extreme dips and recoveries the market saw, there was no malfunctioning in market structure.
"I don't think these types of moves, given how much the market has rallied, do have financial stability concerns," he said.