US President Donald Trump said that last night's stock market sell-off was in fact along-awaited "correction", and that the Federal Reserve, which has been raising US interest rates, had gone "crazy".
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".
A stock market correction is defined as a decline of at least 10% from the high point of the past 52 weeks, suggesting that major USA indices have further to fall.
The Dow Jones dropped by more than 800 points on Wednesday in one of the worst days for the stock market since February, and President Donald Trump had an explanation ready when asked by reporters.
Trump, who has frequently invoked rising stock prices as an affirmation of his economic policies, downplayed the significance of the market drop even as he pointed the finger at the Fed.
Mnuchin declined to comment on Trump's latest attack on the US central bank, though he repeated that the Fed has independence.
Money Map Press chief strategist Keith Fitz-Gerald, Fox Business correspondent Kristina Partsinevelos and Capital Wave forecast editor Shah Gilani discuss President Trump's criticism of the Federal Reserve.
Trump has publicly stated his concerns before, but on Tuesday said he had not discussed them personally with Federal Reserve Chair Jerome Powell, explaining that "I like to stay uninvolved".
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Fed spokeswoman Michelle Smith declined to comment on Trump's remarks.
"I'd rather pay down debt or do other things, create more jobs, so I'm anxious about the fact that they seem to like raising interest rates".
He said he didn't think the current rate of U.S inflation merits higher borrowing costs.
On Friday, federal data showed that the US jobless rate fell to 3.7 percent in September, it's lowest point since 1969.
White House Press Secretary Sarah Huckabee Sanders said in a statement following the close of markets that the USA economy is "incredibly strong" despite the sell-off.
"Markets are not efficient and markets move in both directions and at times they overshoot in both directions", Mnuchin said early Thursday in an interview on the sidelines of the International Monetary Fund annual meetings in Bali, Indonesia.
A spike in Treasury yields and solid USA economic data have sparked concerns that the Federal Reserve may pick up the pace of its interest rate hikes.
Fed Chairman Jerome Powell is aiming to extend the second-longest US economic expansion on record by moving interest rates up just quickly enough to prevent overheating, but not so rapidly that the central bank chokes off growth.