Trump on 831 Stock Market Drop: Fed Has Gone Crazy

The Dow took a beating Wednesday

Asian markets plunged on 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. "So you can say that well that's a lot of safety actually, and it is a lot of safety, and it gives you a lot of margins, but I think the Fed has gone insane".

He adds, "I think the Fed has gone insane".

The president said of the market losses, "Actually, it's a correction that we've been waiting for a long time".

The broad USA stock market sell-off Wednesday took the S&P 500 to the lowest in three months, the Dow Jones Industrial Average plunged as much as 836 points and the Nasdaq 100 Index tumbled more than 4 percent for its worst day in seven years.

At market close Wednesday, the Dow Jones average was still up more than 5,000 points since President Trump took office.

"I believe this selling is an overdone panic", Feinseth said.

USA shares suffered a broad-based selloff that slashed more than three percent from major indices. "I think we don't have to go as fast".

The steep drop in Asia 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 U.S. central bank.

United States presidents have rarely criticised the Fed in recent decades because its independence has been seen as important for economic stability.

Fed spokeswoman Michelle Smith declined to comment on Trump's remarks.

He said he didn't think the current rate of U.S inflation merits higher borrowing costs. The problem I have is with the Fed.

The turmoil on stock markets came a day after the International Monetary Fund slashed its global growth forecast on worries about trade wars and weakness in emerging markets.

White House Press Secretary Sarah Sanders issued a statement on the drop as well.

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

Stocks have been under pressure since the yield on 10-year US Treasury bonds jumped above 3% last week, a sudden move that raised fears of an overheating economy, speeding inflation and more aggressive Federal Reserve interest rate increases.

During an event earlier Wednesday amid the sell-off, Trump and his top economic adviser, Larry Kudlow, said they believed the USA economy was strong.

Trump said Tuesday that the economy is enjoying "record-setting" numbers and "I don't want to slow it down even a little bit, especially when we don't have the problem of inflation".

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