US President Trump calls the US Fed 'crazy', stock declines a 'correction'

Cornelia Mascio
Ottobre 11, 2018

US stocks took their worst loss in eight months Wednesday, with the Dow Jones Industrial Average sinking 831 points and the Nasdaq composite logging its biggest loss in more than two years. Trump's remarks to reporters were in direct response to questions about the stock market drop.

On Wednesday US President Donald Trump lambasted the US Federal Reserve once again, complaining that the Fed has gone "crazy", but the president also reversed tack and called the current stock market sell-off a "correction", one that the administration has been "waiting for". "But I really disagree with what the Fed is doing, okay?" "They're so tight. I think the Fed has gone insane".

Trump has slapped tariffs on $250 billion in Chinese goods this year, and Beijing has retaliated with levies of $110 billion of American products. Presidents for more than two decades had avoided public comments on the Fed's interest-rate policies as a way of demonstrating respect for the institution's independence.

White House Press Secretary Sarah Sanders issued a statement on the drop as well.

The Fed has been raising interest rates gradually since December 2015, and last month lifted its target for short-term rates to a range of 2 percent to 2.25 percent, responding to an economy that has been growing at a pace well above what Fed officials believe is sustainable.

Trump has previously voiced his displeasure with the Fed's rate hikes, saying he would rather shift his focus to the continued growth of the USA economy and creating more jobs. "I like to stay uninvolved", Trump said.

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