On Friday, the Turkish lira snapped a three-day rebound, sliding more than 5 percent against the dollar on worries about the threat of more American economic sanctions unless Turkey hands over detained us evangelical pastor Andrew Brunson.
Brunson, an Evangelical pastor residing in the coastal province of Izmir, is standing trial in Turkey over terrorism charges.
The diplomatic spat is also taking a toll on Turkey's currency, the lira.
The lira has lost almost 40 percent of its value against the dollar this year as investors fret about President Tayyip Erdogan's influence over monetary policy.
"We've put sanctions on several of their Cabinet members", Mnuchin said during a Cabinet meeting with Trump.
"We have more that we're planning to do if they don't release him quickly", Mnuchin said during a White House cabinet meeting on Thursday, according to pool reporters.
"They want to hold our wonderful pastor", Trump added. The Qatari government already felt the need to pledge $15 billion in funding to prevent the collapse of the Turkish lira and try to stabilize them in this time of crisis.
Albayrak's ministry said they had discussed US sanctions against Turkey and agreed to act together in responding to such moves and to boost cooperation between their countries.
Turkey has taken advantage of the United States for many years.
Turkish President Recep Tayyip Erdogan has accused the United States of trying to "bring Turkey to its knees". He has ordered that assets of the U.S. Justice and Interior ministers be frozen, though it's unclear how much U.S. Attorney General Jeff Sessions and Interior Secretary Ryan Zinke might have invested in Turkey. Many financial experts say Turkey should raise interest rates to reduce inflation and attract investment, but Erdogan has so far opposed a move he says would curb growth.
The conflict between North Atlantic Treaty Organisation allies is even more personalized because of U.S. President Donald Trump and Turkish President Recep Tayyip Erdogan, whose uncompromising statements contribute to a sense that the tension will ratchet up before any possibility of a climbdown.
According to the Middle East Eye, officials in Ankara are willing to concede to U.S. demands for the freedom of Andrew Brunson, an evangelical preacher accused of playing a role in the attempted coup there in 2016. But when Russian Federation imposed sanctions on Turkey's tourism, construction and food sectors, Erdogan quickly backed down.
Ratings agency Fitch said the absence of an orthodox monetary policy response to the lira's fall, and the rhetoric of Turkish authorities have "increased the difficulty of restoring economic stability and sustainability".
He says the USA will pay nothing for his return, because he is innocent and indicated the pressure on Turkey will continue.