Our Treasury Secretary

Larry Summers on Treasury Secretary Mnuchin (via WP), to put it mildly:

Last week I suggested that I felt sorry for Treasury Secretary Steven Mnuchin. He found himself forced by circumstance and his president to say and do things that undermined his and Treasury’s credibility.

I wish there was an external force that could be blamed for the secretary’s comments on Monday, but they look from the outside like unforced errors.

At Michael Milken’s annual conference for investment professionals, he crowed to the bankers present that “you should all thank me for your bank stocks doing better.” I cannot conceive of any of the 11 other secretaries I have known making such a statement. Leave aside the question of whether whatever credit is to be claimed should be claimed on behalf of the president. Since when is the stock price of banks the objective or the standard of success for economic policy? And when, as will inevitably occur, bank stock prices decline, will the secretary accept the blame?

It was quite a day.

(Dan here…More in the article.)

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