After Stock Market Drop, President Trump Says Federal Reserve ‘Has Gone Crazy’

The Federal Reserve is not pleasing President Trump with its policy on interest rate increases

The Federal Reserve is not pleasing President Trump with its policy on interest rate increasesGETTY IMAGES

President Trump blamed the plummeting stock market Wednesday on Federal Reserve policy that has raised interest rates six times since he took office, most recently in September.

"I don't like it", Trump said Tuesday at the White House, referring to the Fed's rate hikes, the most recent of which was September 26. "They're so tight. I think the Fed has gone insane", Trump said.

He has frequently criticised the United States central bank for gradually raising interest rates, and on Wednesday reiterated his position: "I really disagree with what the Fed is doing".

Tech and luxury stocks have been among those to feel the worst pain in the sell-off. The 10 year U.S. Treasury, a key benchmark for rates, has been spiking and is now at 3.2 percent, one of its highest levels since just after the Great Recession.

Naeem Aslam, chief market analyst at Think Markets, said: "We have not experienced anything like this since Brexit and if you look at the Nasdaq, it becomes clear that the sell-off was actually triggered by the technology stock".

China Mobile shares fell 3.7%, insurance group Ping An dropped 4.1% and China Construction Bank lodged a slide of 3.2%.

The 10-year yield is now 3.20 percent, the highest in than seven years and up sharply form 2.82 percent in late August.

"I'm not thrilled because we go up", he explained, "and every time we go up they want to raise rates again, and I don't really - I am not happy about it, but at the same time I'm letting them do what they feel is best".

Investors are leaning into safer stocks with steady dividends - utilities and consumer staples - and pulling out of the higher-paying, higher-risk stocks as other guideposts of growth, like the communication sector, tumbled.

"The fundamentals and future of the USA economy remain incredibly strong", Sanders said in a statement. The criticism is also unusual given that Jerome Powell, the Fed chairman, was appointed by Mr...

The benchmark Nikkei 225 dropped almost two percent at the open and extended losses to below the three-percent mark, as traders fretted about surging interest rates and an ongoing trade spat.

On Friday, federal data showed that the USA jobless rate fell to 3.7 percent in September, its lowest point since 1969. The problem I have is with the Fed.

The sell-off came a day after the International Monetary Fund said the world economy is plateauing and cut its growth forecast for the first time in more than two years, blaming escalating trade tensions and stresses in emerging markets.

As Hurricane Michael pummeled Florida, Wall Street was battered by storms as well, with the Dow shedding about 830 points, in the biggest fall since February, to close the day at 25,498.74. In Paris, shares in Kering fell almost 10 percent, LVMH over seven percent and Hermes around five percent.

Latest News