Wall Street stocks plummeted Wednesday amid worries about surging U.S. interest rates and the impact of trade disputes, as President Donald Trump blamed the Federal Reserve, saying it had "gone insane". "It's so tight. I think the Fed has gone insane", Trump told reporters shortly after markets closed, as he arrived in Erie, Pennsylvania for a rally.
"The Fed has gone insane", he told reporters on Wednesday as he arrived in Pennsylvania for a campaign rally.
After the Nasdaq Composite index and the Dow Jones dropped more than 4% and 800 points respectively on Wednesday, Trump said "it's a correction that we've been waiting for for a long time".
"I think. the Fed is making a mistake".
Numerous biggest U.S. names fell hard in Wednesday's session, with Apple, Boeing and Facebook all slumping more than 4% and Amazon, Nike and Microsoft shedding more than 5%. "But I think the fed has gone insane". The IMF projections don't take into account Trump's threat to expand the tariffs to effectively all of the more than $500 billion in goods the USA bought from China previous year.
"I like low interest rates", Trump said.
It was at least the third time that the president has criticised Fed policy since taking office.
Fed spokeswoman Michelle Smith declined to comment on Trump's remarks.
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Trump was briefed on the market turmoil earlier in the day, a White House official said.
The benchmark Nikkei 225 dropped almost two percent at the open and extended losses to below the three-percent mark, as traders fretted about surging interest rates and an ongoing trade spat.
"Clearly stocks are spooked by higher rates and maybe some inflation that seems to be creeping in", said Michael Farr, CEO of Farr, Miller & Washington.
White House Press Secretary Sarah Sanders issued a statement on the drop as well.
The markets have been on a historic climb - with the Dow and S&P each notching dozens of new highs since 2016 - buoyed by a strong US economy and solid corporate earnings.
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. "President Trump's economic policies are the reasons for these historic successes and they have created a solid base for continued 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".