Economy

Trump takes aim at 'crazy' Fed as markets sink following United States slump

Trump takes aim at 'crazy' Fed as markets sink following United States slump”

President Donald Trump says the Federal Reserve "has gone crazy" after a major drop in stock prices Wednesday. "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".

"I think the Fed has gone insane", President Donald Trump said.

"It's a correction that we've been waiting for for a long time", Trump said. "But I really disagree with what the Fed is doing, okay?"

In Europe this week, the closely-watched spread between the rates on 10-year bonds in Italy compared with those offered by Germany, which is a measure of the added risk perceived by investors to holding onto Italian debt, hit the highest level since April 2013. "But I think the fed has gone insane".

US stocks took their worst loss in eight months Wednesday, with the Dow Jones Industrial Average sinking 831 points and the Nasdaq composite logging its biggest loss in more than two years. The Dow Jones Industrial average fell 3.15 percent; the tech-heavy Nasdaq index dropped 4.08 percent.

"Our course is clear: Resolutely conduct policy consistent with the FOMC's symmetric 2 percent inflation objective, and stand ready to act with authority if expectations drift materially up or down", Powell said last week, referring to the policy-making Federal Open Market Committee. "It's all about investors rethinking their exposure to stocks".

United States long-dated Treasury yields rose again in extension of a trend over the last few weeks fuelled by solid USA economic data that reinforced expectations of multiple interest rate hikes over the next 12 months.

"The fundamentals and future of the USA economy remain incredibly strong", Sanders said in a statement. The S&P 500 lost 94 points, or 3.3 percent, to 2,785.

"I like low interest rates".

The selloff came a day after the International Monetary Fund said the world economy is plateauing and cut its growth forecast for the first time in more than two years, blaming escalating trade tensions and stresses in emerging markets.

The Fed last raised interest rates in September and left intact its plans to steadily tighten monetary policy, as it forecast that the United States economy would enjoy at least three more years of economic growth.

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". Tiffany plunged 10.2 percent to $110.38 and Ralph Lauren fell 8.4 percent to $116.96.



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