'The Fed has gone crazy': Trump points finger for Wall Street tumble

BP_Donald

President Donald Trump signaled his anxiety about the Federal Reserve's plan to keep raising interest rates into 2019 after stocks plunged on Wednesday.

Trump, who has been critical of the central bank's interest rate increases, tells reporters after landing in Erie, Pennsylvania, that he thinks "the Fed is making a mistake".

"The Fed has gone insane", Mr. Trump told reporters while traveling to Erie, Pennsylvania, for a campaign rally. A stock market correction is defined as a decline of at least 10 percent from the high point of the past 52 weeks, suggesting that major USA indices have further to fall. "But I really disagree with what the Fed is doing, okay?"

Money Map Press chief strategist Keith Fitz-Gerald, Fox Business correspondent Kristina Partsinevelos and Capital Wave forecast editor Shah Gilani discuss President Trump's criticism of the Federal Reserve.

Later on Wednesday in an interview on Fox News, Trump dismissed the idea that trade tensions with China caused the dive. "I just don't think it's necessary to go as fast".

Trump has slapped tariffs on $250 billion in Chinese goods this year, and Beijing has retaliated with levies of $110 billion of American products. No, that wasn't it. "I mean, I don't know what their problem is but they're raising interest rates and it's ridiculous".

He added later, "The problem, in my opinion, is Treasury's and the Fed. The Fed is going loco and there's no reason for them to do it and I'm not happy about it".

US President Donald Trump speaks during a briefing on Hurricane Michael in the Oval Office of the White House in Washington, DC, October 10, 2018.

White House Press Secretary Sarah Sanders said in a statement following the close of markets that the USA economy is "incredibly strong" despite the selloff, which analysts attributed in part to trade tensions with China.

The Dow plunged almost 832 points on Wednesday, the third-worst point decline in history.

All 30 Dow stocks were in the red, sending the index below 26,000 points for the first time in a month.

Bourses in Paris and Frankfurt both lost more than two percent, while London fell 1.3 percent.

The S&P 500 posted its fifth straight decline, plummeting almost 3.3%.

And while stocks could get a boost from strong corporate earnings, there are concerns the U.S. trade conflicts will start to undermine profits.

The tech-rich Nasdaq Composite Index plummeted 4.1 percent to finish the session at 7,422.05, its worst fall in percentage terms since the surprise Brexit vote in June 2016.

Related:

Comments


Other news