Mnuchin Warns Market Watchers Who Misread Fed May Be Wrong Again

Former US Treasury secretary says risks being overestimated
Mnuchin sees US inflation in check, Europe in longer recession

Steven Mnuchin speaks during a panel at the Future Investment Initiative conference in Riyadh, Saudi Arabia, on Oct. 26.Photographer: Fayez Nureldine/AFP/Getty Images

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By Abeer Abu Omar and Zainab Fattah

October 26, 2022 at 10:27 AM UTC

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Former US Treasury Secretary Steven Mnuchin said market watchers who were too sanguine about risks to the economy a year ago are now being too alarmist about the threats presented by inflation and the Federal Reserve’s monetary tightening.

Speaking at Saudi Arabia’s Future Investment Initiative in Riyadh, Mnuchin predicted a significant slowdown in China and a recession in the US, but expects inflation to come under control thanks in part to higher US interest rates.