Trump calls stock sell-off a correction, says Fed ‘crazy’

Mnuchin Says U.S. Markets ‘Correction’ Is Not Very SurprisingMore

Mnuchin Says U.S. Markets ‘Correction’ Is Not Very SurprisingMore

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.

"I like low interest rates, " said Trump, adding that the Fed "has gone insane", and that the Fed was 'going loco' about rising rates.

"I think the Fed is making a mistake".

Trump was briefed on the market turmoil earlier in the day, a White House official said.

Trump has said he likes low interest rates, in part because of his background in real estate.

"I'm not thrilled because we go up", he explained, "and every time we go up they want to raise rates again, and I don't really - I am not happy about it, but at the same time I'm letting them do what they feel is best".

"My assumption for the policy rate is that we can achieve our objective of keeping inflation to the 2 percent symmetric objective and the unemployment rate slowly rising back towards its sustainable rate with that stance of funds rate - but if we need more, we'll do more", he said.

A Fed official said the central bank would not comment on the president's remarks.

Both Powell and the president confirmed in recent days that they have not spoken to each other about interest rates. "We can do other things with the money", the president said at a September press conference in NY.

USA 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.

It was at least the third time that the president has criticised Fed policy since taking office.

The steep drop in Japan 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 USA central bank.

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

"A lot of people were concerned when the QEs were done whether the Fed would ever be able to downsize and I think the market has handled the supply very well, ' Mnuchin said". Steve Moore, who was a Trump adviser during the 2016 campaign, said the central bank traditionally raised interest rates as a way to fight inflation, but he said there weren't strong signs that inflation was threatening to impact the economy. And tech stocks got hit particularly hard. The central bank "is too tight", he added.

"I wonder today whether Trump really has some buyer's remorse with respect to selecting Powell as his Fed chairman, because that was a odd pick", Moore said.

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