"We have more that we're planning to do if they don't release him quickly", Mnuchin said.
The two countries also remain at odds over an American pastor who is now under house arrest in Turkey facing terrorism charges.
Turkey 'will emerge stronger from crisis'
It could merely be a way for the foreign president to gather support for his regime among Turkish nationalists. Earlier on Wednesday, Erdogan spoke on the phone with German Chancellor Angela Merkel, the Turkish presidency.
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The former reality star also said even if the president had used the slur, it wouldn't impact his base. She recorded the conversation when she was sacked and subsequently released that audio recording .
Turkey crisis risks souring military ties with US
Some would like to see Turkey's central bank increase interest rates. "I'm not there yet and I don't think the market is there". BBVA is the most exposed, followed by UCG, ING, BNPP and HSBC , whose share price was down 0.8 per cent in afternoon trading.
Despite the rise, Turkey's currency has lost nearly a third of its value against the dollar since January, pushing up the price of everyday items and raising fears that its weakness could infect other emerging market currencies.
'I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar!' Trump said in an early morning post on Twitter.
But the United States insists Andrew Brunson, a long-time Turkish resident who ran the tiny Izmir Resurrection Church, is "a victim of unfair and unjust detention".
If the Turkish lira keeps dropping though, it could start to have an impact for next season.
The Turkish lira hit an all-time low of 7.24 to the dollar on Monday, Aug. 13, driven down by concerns over Erdogan's calls for the central bank to loosen monetary policy, and by deteriorating ties with the United States.
When asked about the impact of the United States spat with Turkey on the country's currency, the spokeswoman said Washington was "monitoring the situation".