Mnuchin Says Hard Brexit a ‘Realistic Outcome,’ Urges Agreement

Treasury Secretary Steve Mnuchin said the U.S. financial system is preparing for the U.K. to crash out of the European Union without a deal, and warned it would cause global disruptions. “We need to be prepared for a hard Brexit as a very realistic outcome,” Mnuchin said Tuesday during a hearing before the House Financial Services Committee, adding that the U.S. has encouraged the U.K. and the union to find a suitable resolution. Yet Britain’s exit from the EU looks set to be delayed by as long as a year in a blow for Theresa May that risks a destabilizing backlash at home.