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

The Dow took a beating Wednesday

U.S. markets drop sharply as investors are spooked by rising rates

"I think the Fed is making a mistake", Trump told reporters as he arrived for a campaign rally ahead of the USA mid-term elections. "The Fed is going wild". "The trade war with China, we're taking in billions of dollars in tariffs from China, from Chinese goods, and it hasn't hurt us at all".

The president told reporters Wednesday that he believed the drop was a correction, and that the Federal Reserve Bank was to blame for raising interest rates.

Trump's comments Wednesday triggered a sell-off on Wall Street, with Asian markets opening sharply lower on Thursday in response.

"I'm assuming that there might be a programme request on their part, but that has not been discussed and we will explore that this afternoon", she said.

"But I really disagree with what the Fed is doing", Trump added.

The Federal Reserve sets baseline interest rates for lending standards, which can have a massive effect on whether businesses expand or contract.

Trump on Thursday also indicated that the Fed's policies were harming him personally. "I think the Fed has gone insane", he said.

"I think it's good", Trump said of the stock decline.

"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.

A spike in Treasury yields and solid U.S. economic data have sparked concerns that the Federal Reserve may pick up the pace of its interest rate hikes.

Gradual rate increases - moving the overnight federal funds rate over the next year and a half or so from between 2 and 2.5 percent now to around 3.4 percent - would slow the economy a bit, but keep inflation in check during a record-setting era of recession-free growth spanning the Obama years and Trump's first term.

Fed Chairman Jerome Powell is aiming to extend the second-longest US economic expansion on record by moving interest rates up just quickly enough to prevent overheating, but not so rapidly that the central bank chokes off growth.

"The fundamentals and future of the US economy remain incredibly strong", Sanders said in a statement.

Seoul fell more than 4% and Sydney and Singapore both dropped more than 2.5%.

The sell-off began on Wednesday when the Dow plunged 832 points, or 3.1 percent.

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

Even the sharp rise in long-term bond yields that has spooked equity investors this week is a sign of an economy working more normally than it has since the financial crisis. And tech stocks got hit particularly hard.

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