Friday, 19 October, 2018

'The Fed has gone crazy': Trump points finger for Wall Street tumble

I don't like Fed raising interest rates so quickly, says Trump Dow Jones plunges 800 points as tech stocks tumble
Jean Garcia | 11 October, 2018, 15:58

President Trump placed the blame on the Federal Reserve's interest rate hikes for driving a selloff in the stock market Wednesday, saying the central bank "has gone insane".

Ahead of a campaign rally for the U.S. mid-term elections next month, Trump told reporters: "I think the Fed is making a mistake". "I think the Fed has gone insane".

"It's a correction that we've been waiting for for a long time", he said.

"I think the Fed is making a mistake".

But those actions have drawn scorn from Trump, who has accused the Fed of moving too fast in raising rates when inflation is minimal and government data points to a strong economy.

Trump has slapped tariffs on $250 billion in Chinese goods this year, and Beijing has retaliated with levies of $110 billion of American products. The Fed policy has been criticized by President Donald Trump. No, that wasn't it.

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". The Fed is going wild. "I mean, I don't know what their problem is but they're raising interest rates and it's ridiculous".

Global stocks tumble after Trump 'crazy' Fed comment
Trump was briefed on the market turmoil earlier in the day, a White House official said. Stocks have sold off in recent days on worries about higher borrowing costs.

Earlier, Asian markets saw sharp drops as US President Donald Trump said the US Federal Reserve had "gone crazy" with plans for higher interest rates.

"There are a number of worries for investors right now, from the pace of rising bond yields and the impact on investor sentiment, to Italy's populist coalition playing a game of chicken with the European Commission, stalling Brexit negotiations and the ongoing trade conflict between the U.S. and China", said Craig Erlam, senior market analyst at Oanda trading group.

The FTSE 100 opened 1.5% lower - hovering just above the 7000 point level - following a 1.3% decline on Wednesday.

On Friday, federal data showed that the USA jobless rate fell to 3.7 percent in September, its lowest point since 1969.

The S&P 500 posted its fifth straight decline, plummeting almost 3.3%.

Tech and luxury stocks have been among those to feel the worst pain in the sell-off. The Dow and the S&P 500, the benchmark for many index funds, both lost more than 3 per cent, and the NASDAQ fell more than 4 per cent.

O'Hare attributed the losses to worries about higher interest rates but also cited a "broad-scale deterioration in sentiment" as investors realized that the pullback on Wall Street failed to prompt bargain hunting to stabilize prices, as has been the norm in recent years.

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