Trump: The Fed 'Is Going Loco'

He blames central bank for stock market drop
By Rob Quinn,  Newser Staff
Posted Oct 11, 2018 3:03 AM CDT
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A man looks at an electronic board showing Hong Kong share index outside a bank In Hong Kong, Thursday, Oct. 11, 2018. .   (AP Photo/Kin Cheung)
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(Newser) – In a move that is traditionally considered highly unusual for a president, President Trump strongly criticized the Federal Reserve on Wednesday, blaming the central bank for the Dow's 831-point drop. The Federal Reserve has raised rates three times this year, with at least one more rise expected, and the sell-off was sparked in part by fears rapidly rising rates will slow growth in the US economy, analysts say. "The Fed is making a mistake. They're so tight. I think the Fed has gone crazy," Trump told reporters in Pennsylvania, per USA Today. "It's a correction that we've been waiting for, for a long time," he said of the market's biggest drop since February. "But I really disagree with what the Fed is doing."

Trump—who appointed Jerome Powell as Fed chairman earlier this year—slammed the central bank again in a Fox interview late Wednesday, saying it has been "going wild." "I don't know what their problem is that they are raising interest rates and it's ridiculous," he said, adding: "The Fed is going loco and there's no reason for them to do it. I'm not happy about it." CNBC reports that Trump said earlier this week that he "likes to stay uninvolved" with the historically independent Fed and he hadn't spoken to Powell all year. The stock sell-off continued as markets opened in Asia Thursday, with China's benchmark index falling to a four-year low, the AP reports. (When he criticized the Fed in July, Trump said he was just saying what he would have said as a private citizen.)

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