The FETO and its USA -based leader Fetullah Gulen orchestrated the defeated coup attempt of July 15, 2016, which left 251 people martyred and almost 2,200 injured.
Foreign Minister Mevlut Cavusoglu, who is set to meet US Secretary of State Mike Pompeo in the next few days, also warned that the move "will not go without response".
Meeting with his Turkish counterpart on Friday, Secretary of State Mike Pompeo declared that "the clock had run out" on Turkey to meet U.S. demands to release an American pastor detained since 2016.
The pastor, who has lived in Turkey for more than 20 years, faces as many as 35 years in jail if found guilty.
"Of course you can't expect all issues to be resolved in a single meeting", he told Turkish television channels.
Brunson, who was arrested in 2016 and is now under house arrest pending trial, denies the allegations.
On Friday, the two leaders agreed to work together to resolve tensions between the two countries.More news: Zimbabwe's Election Commission Announces Majority Win for Ruling Party
"We are facing an economic war, but we will win it", Erdogan said, adding Turkey is issuing Chinese Yuan denominated bonds for the first time, and to overcome difficulties due to credit rating reports, Turkey is turning towards China for external borrowing.
White House spokeswoman Sarah Sanders said that Brunson was a "victim of unfair and unjust attention by the government of Turkey" as she announced sanctions. "It's pretty straightforward. Pastor Brunson is an innocent pastor and they need to let him return to the United States".
The Turkish lira, which has been in decline against the dollar for most of 2018, fell to a record low of five to the dollar on Wednesday, after dropping 1.7 percent following the sanctions announcement.
"I am instructing my friends today, we will freeze assets, if there are any, of the U.S. justice and interior secretaries in Turkey", Erdogan, speaking at a ruling Justice and Development (AK) Party meeting in Ankara, was quoted as saying by the official Anadolu news agency.
His lawyer's appeal for his release was rejected this week.
President Donald Trump and Vice President Mike Pence, who shares Brunson's evangelical Christian faith, have made his release a priority.
The American pastor was also charged with supporting outlawed Kurdish PKK fighters.