US federal employees don’t need Chinese stocks in 401(k)s: Sec. Scalia

Coronavirus confirmed why America can’t be reliant on China: Eugene Scalia

Labor Secretary Eugene Scalia discusses the White House’s decision to order the Federal Retirement Fund to end investments in Chinese equities.

Get all the latest news on coronavirus and more delivered daily to your inbox. Sign up here.

Continue Reading Below

Federal employees don’t need Chinese stocks in their 401(k)s, said U.S. Labor Secretary Eugene Scalia, during an interview on FOX Business Network Tuesday.

TRUMP ORDERS FEDERAL RETIREMENT MONEY INVESTED IN CHINESE EQUITIES TO BE PULLED

Scalia's comments come one day after FOX Business exclusively reported that President Trump was moving to eliminate investments in Chinese equities by U.S. federal retirement funds.

“This concerns what we call the Thrift Savings Plan. It’s the 401(k) plan for federal employees,” he said. “It’s the largest 401(k) in the world, [including] about 1.3 million veterans. The question was whether we were going to put our military men and women, and other federal workers, in a position where if they wanted to invest in international markets, they were going to have to invest in Chinese companies,” Scalia said, adding that some of these investments could pose a threat to national security.

TRUMP ORDERS FEDERAL RETIREMENT MONEY INVESTED IN CHINESE EQUITIES TO BE PULLED

The secretary alluded to a “lack of integrity to financial statements of Chines companies,” which he also called out in letters Monday, warning the Federal Retirement Thrift Investment Board that its plan to invest federal retirement savings could place billions of dollars in “risky companies.”

5 THINGS TO DO IF YOU HAVE TO LIVE ON SOCIAL SECURITY ALONE

WH to Sec Scalia (002) by FOX Business on Scribd

In the first letter, obtained by FOX Business, National Economic Council Chair Larry Kudlow and National Security Adviser Robert O’Brien wrote to Scalia saying that the White House does not want the Thrift Savings Plan to have money invested in Chinese equities, emphasizing that the board is departing from the “Board’s established index for the International Stock Investment Fund (I Fund) to track one that maintains Chinese equities is risky and unjustified.”

CLICK HERE TO GET FOX BUSINESS ON THE GO

The letter links China’s coronavirus response as one reason investments shouldn't happen.

In a second letter, Scalia writes to Chairman of the Federal Retirement Thrift Investment Board Michael Kennedy, noting “grave concerns with the planned investment.”

Sec Scalia to Chairman Kenn… by FOX Business on Scribd

The secretary said he wants a response by Wednesday.

CLICK HERE TO READ MORE ON FOX BUSINESS

Source: Read Full Article