Mnuchin Warns Health Care Debacle Will Delay Tax Reforms


Last March, Mnuchin said he was aiming to have a tax bill "signed" before August in line with Trump's campaign pledges for tax reforms. "It is fair to say it is probably delayed a bit because of health care".

That helped to reverse some of the selling in the United States dollar, and buying in U.S. treasuries, that followed remarks from USA president Donald Trump last week that strength in the United States dollar was making it hard to compete with other nations with weaker currencies at present.

Within 15 minutes of this comment, the U.S. dollar index, which is a basket of the greenback against major currencies of the world, dropped 0.5 percent.

Mnuchin added that he still thinks tax legislation will be passed this year.

He did, however, say that he still expects reforms to come into place before the end of the year.

The prospects for comprehensive tax reform seem to be slipping further into an uncertain future, a dismal prospect for President Trump who promised to lower tax rates for both business and individuals during his first year in office.

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Among the key sticking points is a "border adjusted" plan that would, in effect, tax imports while exempting exports. Projected global growth is set to rise to 3.5% from 3.1%.

'Economic growth creates lots of revenues. Moreover, chances of two rate hikes in 2017 dropped below 40%, so traders betting on interest rates differentials should tweak their model assumptions. "I am just pointing out the magnitude of what economic growth does". Mr Mnuchin rebuffed suggestions that Washington may be seeking to depreciate the currency via verbal interventions following remarks from Mr Trump last week. "In my mind it's a function of the confidence in the potential of the USA economy and the current state of the U.S. economy, particularly relative to the rest of the world".

The US Dollar gained against a basket of currencies after Steven Mnuchin, The U.S. Treasury Secretary, suggested that a strong dollar would be a good thing over a longer period of time.

In an interview with the Wall Street Journal, the President said that the dollar's strength was "partially" his fault "because people have confidence in me", but he said that it was starting to hurt. "We're going to be announcing it very soon", Trump said at Snap-on headquarters in Wisconsin.

Mnuchin also said in the interview that Treasury intends to impose more sanctions on Syria and North Korea.