Mnuchin tweeted on Saturday that he spoke with the President, relaying that Trump said, "I never suggested firing Chairman Jay Powell, nor do I believe I have the right to do so".
Earlier this month the Fed followed through on expectations it would hike interest rates by 0.25 to a range of 2.25 per cent 2.5 per cent - the highest level in a decade.
The remarks represent Mr Trump's first expression of public support for Mr Mnuchin and Mr Powell since people familiar with the matter told Bloomberg News last week that the President had discussed dismissing the Fed chief, who was recommended by Mr Mnuchin.
The US president Donald Trump sputtered on Federal Reserve on Monday, the 24th of December, indicating it as the "only problem" for the US economy, as top officials from Trump Administration had been trying to arrange a Plunge protection team in the wake of an unfathomable faltering in the Wall St.
Hassett later told reporters Powell wasn't at risk of being fired. The benchmark S&P 500's e-mini futures contracts were dropped about a quarter of percentage. "They don't have a feel for the Market, they don't understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders".
On Christmas Day, Trump said he remained confident in Mnuchin but was still unhappy with the Fed.
POTUS has largely laid the blame for economic headwinds on the Fed, openly criticizing its chairman, Powell, whom he appointed.
At the same time in Washington, Mnuchin aides have been scrambling to find economic data to help their boss calm Trump down, but Trump was said to be unhappy with what Mnuchin was telling him, this source said.
Mr Hassett also said Mr Trump was happy with Treasury Secretary Steven Mnuchin, who in recent days has talked with top U.S. bankers and convened a call with a working group of regulators who aim to keep financial markets running smoothly. "I've met with them together in the Oval (Office) many, many times and they have a very collegial and productive working relationship".
"The fact is the economy is doing so well they're raising interest rates", he said.
"They're raising interest rates too fast", Trump said of the central bank.