FILE PHOTO: U.S. Treasury Secretary Steven Mnuchin at the White House in Washington, U.S., February 6, 2019. REUTERS/Jim Young/File Photo

WASHINGTON (Reuters) - U.S. Treasury Secretary Steven Mnuchin on Tuesday told lawmakers the Trump administration is preparing for the possibility of a “hard Brexit”.

“I think at this point we need to be prepared for a hard Brexit as a very realistic outcome,” Mnuchin said at a hearing of the U.S. House Committee on Financial Services.

The United States is monitoring the developments around United Kingdom’s exit from the European Union and has been working with regulators to prepare for any market or trade disruptions, he said.