Global stocks tumble after Trump's 'crazy' Federal Reserve comment

Global stocks tumble after Trump's 'crazy' Federal Reserve comment

Trump on Wednesday slammed the Fed as "going loco" for its interest-rate increases this year in comments hours after the worst USA stock market sell-off since February.

"The Fed has gone insane", he told reporters on Wednesday as he arrived in Pennsylvania for a campaign rally.

President Donald Trump said he believes "the Fed has gone crazy" amid recent interest rate hikes.

But he's also calling the drop "a correction we've been waiting for for a long time".

The Dow Jones Industrial Average sank 831 points Wednesday, an approximately 3.15 percent drop.

Trump, who has frequently invoked rising stock prices as an affirmation of his economic policies, downplayed the significance of the market drop even as he pointed the finger at the Fed.

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. "It's all about investors rethinking their exposure to stocks."Many of the biggest U.S. names fell hard in Wednesday's session, with Apple, Boeing and Facebook all slumping more than four percent and Amazon, Nike and Microsoft shedding more than five percent".

At least 5 killed in heavy rains in Spain’s Mallorca
Spain's meteorological office warned that rainfall and storms were set to get worse in the archipelago "in the coming hours". Witnesses said a dry creek overflowed, creating a strong current of water and mud that buried cars and tore down trees.

But Mnuchin said in media interviews on the Indonesia resort island of Bali, where the World Bank and International Monetary Fund are meeting, that "this is not a systemic issue".

But in August, Trump said he was "not thrilled" with Powell, though he took his criticism much further on Wednesday when he said the Fed was "crazy".

Trump has slapped tariffs on $250 billion in Chinese goods this year, and Beijing has retaliated with levies $110 billion of American products.

The central bank's preferred measure of inflation is roughly at policy makers' 2 percent objective, and Powell said last week that "the outlook of forecasters inside and outside the Fed is for more of the same". By convention presidents rarely comment on central bank policy because the Fed is meant to be independent of politics. The central bank has hiked interest rates three times this year and expects to do so again in December.

The White House said Wednesday that the "fundamentals and future" of the USA economy are "incredibly strong" despite the big losses in the stock market. Fed officials including Powell, Trump's handpicked chair, have said pointedly that they will not be influenced by comments from elected officials, and will make decisions based on economic data.

"The fundamentals and future of the USA economy remain incredibly strong", Sanders said in a statement. "It is doing well", Trump said. "I like to stay uninvolved", Trump said.

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