Trump says Federal Reserve ‘has gone crazy’ after big stock drop

11 October, 2018, 17:58 | Author: Billie Castillo
  • Global stocks tumble after Trump 'crazy' Fed comment

Japanese stocks plunged by more than three percent Thursday following the worst session on Wall Street for months, as US President Donald Trump said the Federal Reserve had "gone crazy" with plans for higher interest rates.

Ahead of a campaign rally for the U.S. mid-term elections next month, Trump told reporters: "I think the Fed is making a mistake".

"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.

Mr. Trump said earlier this week that he thought the central bank was moving too quickly with a series of planned interest rate hikes.

Trump has said he likes low interest rates, in part because of his background in real estate. They have reached out to the Fed leader to ensure there hasn't been improper political interference.

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.

Kevin Hassett, the head of Trump's Council of Economic Advisers, said the president is expressing his views on monetary policy, but he isn't trying to "politicize" the Fed. "We can do other things with the money", the president said at a September press conference in NY.

He has frequently criticised the USA central bank for gradually raising interest rates.

NOAA: Hurricane Michael 2018 Projected Path, Spaghetti Models
A tropical storm watch was also issued from the Suwanee River to Anna Maria Island Florida, including Tampa Bay. According to NHC spokesman Dennis Feltgen, Michael is the 13th named storm of the 2018 hurricane season.

He added later, "The problem, in my opinion, is Treasury's and the Fed".

O'Hare attributed the losses to worries about higher interest rates but also cited a "broad-scale deterioration in sentiment" as investors realized that the pullback on Wall Street failed to prompt bargain hunting to stabilize prices, as has been the norm in recent years.

"It seems like the Fed is continuing on the course that markets expect, to raise interest rates given the tight labour market", said Phillip Swagel, who was a top Treasury official during the George W. Bush administration.

The steep drop in Japan followed a decline on Wall Street of almost 830 points, the biggest fall since February, amid Trump's latest criticism of the Federal Reserve, the United States central bank.

And while stocks could get a boost from strong corporate earnings, there are concerns the USA trade conflicts will start to undermine profits. "I just don't think it's necessary to go as fast".

"He is an individual that really understands the plumbing of the US and global financial systems and one example is the reforms that are going underway on Libor for which he is one of the main sponsors", said Carney. And tech stocks got hit particularly hard.

But in an interview with CNN in Bali, Mnuchin appeared to contradict Trump's suggestion that the Fed was partly to blame.

In a sign of how much animosity Trump now holds toward the central bank, Moore said he believes Trump regrets appointing Powell to the position.

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