After Stock Market Drop, President Trump Says Federal Reserve ‘Has Gone Crazy’

Andrew Cummings
October 11, 2018

"The Fed has gone insane", he told reporters on Wednesday as he arrived in Pennsylvania for a campaign rally.

Just two hours before, CNBC reported that an unnamed senior White House official told its correspondent that, "This is a bull market correction". "It is doing well", Trump said.

"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".

The 10-year yield is now 3.20 percent, the highest in than seven years and up sharply form 2.82 percent in late August.

Mnuchin declined to comment on Trump's latest attack on the USA central bank, though he repeated that the Fed has independence. "We don't let other things distract us".


He has frequently criticised the United States central bank for gradually raising interest rates.

One former Treasury official said while Trump's comments are unusual, they don't appear to be changing the Fed's direction.

The President said this week he prefers lower interest rates but added he would not speak directly to his Fed chairman appointee Jerome Powell, preferring instead to remain hands-off.

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.

"The Fed continues to flood the market with USA dollars", he said in one tweet.


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.

Some of his former advisers said they believed Trump's criticisms of the central bank were warranted. "It's probably healthy. This will pass and the USA economy remains strong".

"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".

The US stock market sell-off last night saw the S&P 500 and the Dow marking their biggest daily declines since February 8 with technology stocks at the centre of the falls. And tech stocks got hit particularly hard.

"I'm paying interest at a high rate because of our Fed".


Last week's jump in yields followed strong U.S. data but many analysts have been anticipating a change in the dynamics in the bond market due to expectations that central banks in Europe and Japan will soon phase out bond-buying programmes.

Other reports by iNewsToday

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