Trump says market drop is 'correction that we've been waiting for'

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

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

Asian markets plunged Thursday morning 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 has gone insane", Trump said.

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.

After a long stretch of relative calm, the stock market has suffered sharp losses over the last week as bond yields surged.

The 10-year Treasury yield rose to 3.22 percent from 3.20 percent late Tuesday after earlier touching 3.24 percent.

He has frequently criticised the USA central bank for gradually raising interest rates, and on Wednesday reiterated his position: "I really disagree with what the Fed is doing".

The steep drop in Asia followed Wednesday's plunge in NY, with the Dow Jones dropping almost 830 points - the biggest fall since February - after Trump's latest criticism of the Federal Reserve. "But I think the fed has gone insane".

Hurricane slams Florida panhandle, Georgia — WHAT'S HAPPENING
Cameras outside the International Space Station captured video of Michael as the storm continued churning over the Gulf of Mexico. After daylight Thursday residents of north Florida would just be beginning to take stock of the enormity of the disaster.

"Our course is clear: Resolutely conduct policy consistent with the FOMC's symmetric 2 percent inflation objective, and stand ready to act with authority if expectations drift materially up or down", Powell said last week, referring to the policy-making Federal Open Market Committee.

In July, the president complained about the Federal Reserve raising interest rates.

"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". He has repeatedly criticised the central bank for raising interest rates this year, decisions aimed at preventing the economy from overheating.

"The fundamentals and future of the US economy remain incredibly strong", Sanders said in a statement.

Ivan Feinseth, Chief Investment Officer at Tigress Financial Partners, said that although the sell-off caught him off-guard, he thought many investors were unduly frightened by the prospect of rising rates.

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

"I stood on the floor in the crash of '87, so this is nothing", Benedict said. The Nasdaq fell 315 points, or 4.1 percent, to 7,422. In Paris, shares in Kering fell almost 10 percent, LVMH over seven percent and Hermes around five percent.

Latest News