Trump calls U.S. stock sell-off 'a correction'

Ivan Schwartz
October 14, 2018

"I think the Fed is far too stringent and they're making a mistake". "They're so tight. I think the Fed has gone insane", Trump told reporters on the tarmac in Pennsylvania.

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

"It's a correction we have been waiting for a long time", Trump said.

The broad US 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.

Earlier on Tuesday, White House economist Kevin Hassett said the administration respects the Fed's independence and pointed to Trump's nominees to the central bank as evidence of its non-partisan approach to the setting of monetary policy. During a telephone conversation with Fox News later, the President said the Fed was "going loco" and that he was not happy about it.

This week's dizzying sell-offs in the financial markets have been a rude reminder the USA economy is no longer relying on ultra-low interest rates to fuel growth.

US stocks tumbled for a second straight session on Thursday as volatility reigned on Wall Street amid worries about higher interest rates and trade wars.

President Trump criticizes the Federal Reserve for raising interest rates after the market sell-off.

"From my perspective, the most important thing we can do now is get ourselves well positioned for whatever may come", Mr. Williams said.

While he refused to make specific comments about it, he argued that there was "no mixed message" between his reticence and the sharp criticism Donald Trump levelled at the U.S. central bank last week.

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At IMF meetings in Bali, Lagarde said she "would not associate" Fed chair Jerome Powell "with craziness".

A Wall Street veteran didn't mention the Fed in his assessment of the current weakness in the stock market.

He also slammed the US Federal Reserve on down sliding of the markets for a consecutive day, and said that the central bank was "out of control". "I'm just disappointed at the clip" that rates are being raised.

And Kudlow said the Fed was managing "the transition from ultra, ultra easy something more normal", by raising rates gradually.

Trump said, "I'm not going to fire him". "But I really disagree with what the Fed is doing, okay?"

The daily charts indicate that stocks have essentially been under pressure since October 3 when U.S. Federal Reserve Chairman delivered hawkish comments about future rate hikes. "I think we don't have to go as fast". When interest rates rise, bond yields typically do as well as investors pull money out of stocks and move them into bonds to capitalize on the higher (and safer) returns.

Trump can create ways to lower interest rates on those who need to buy an automobile for work, so they can go to a job and produce income for the government to tax.

Forecasters with Macroeconomic Advisers left their outlook for annualized gross domestic product growth unchanged at 3.7 percent for the third quarter and 2.6 percent for the fourth quarter.

In Asia stock markets braced themselves for another day of losses.

United States markets look set to pick up where they left off last night in the wake of today's continuation of selling pressure with further losses looking likely with the main focus set to be on the latest CPI inflation numbers for September.

Other reports by GizPress

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