President Trump blamed the plummeting stock market Wednesday on Federal Reserve policy that has raised interest rates six times since he took office, most recently in September.
"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".
He adds, "I think the Fed has gone insane".
"It's a correction we have been waiting for a long time", Trump said. "But I really disagree with what the Fed is doing, okay?"
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 USA economy and solid corporate earnings.
Adams said investors have concerns about their future profitability, too, making technology stocks more volatile in the last few months.
"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.
Those financial crisis-inspired programmes - such as quantitative easing - are now ending and the Fed has raised USA interest rates three times already this year - raising borrowing costs - and could add a fourth hike by the end of 2018.
Hubble space telescope goes into 'safe mode' over faulty gyroscope
There are three gyros of the older generation with a history of showing signs of malfunction after 50,000 hours of service. We know that the unit has a total of six gyroscopes, because it was designed with multiple redundancy of all systems.
Jasper Lawler, head of research at London Capital Group, offered this explanation: "The bloodbath for global equities comes as investors adjust to a world of higher United States interest rates and United States treasury yields".
"It's shifting the tectonic plates", said Jack Ablin, chief investment officer at Cresset Wealth Advisors.
Trump's latest attack on the US central bank appeared to blame the Federal Reserve for a stock rout that market analysts mostly attributed to fresh concern about his trade war with China.
And while stocks could get a boost from strong corporate earnings, there are concerns the USA trade conflicts will start to undermine profits.
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. An additional 1.5-percentage-point fall would confirm a correction for that index.
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.
Shares in European luxury companies also lost much of their shine as investors feared that any slowdown in global economic growth would translate into dwindling sales for high-end firms. Berkshire Hathaway dipped 4.7 percent to $213.10 and reinsurer Everest Re slid 5.1 percent to $217.73.