U.S. President Donald Trump said Wednesday's stock market sell-off was a correction that was long awaited, and that the Federal Reserve, which has been raising interest rates, has gone "crazy".
"I don't like it", Trump said Tuesday at the White House, referring to the Fed's rate hikes, the most recent of which was September 26. "I think the Fed has gone insane". A stock market correction is defined as a decline of at least 10 percent from the high point of the past 52 weeks, suggesting that major US indices have further to fall.
At market close Wednesday, the Dow Jones average was still up more than 5,000 points since President Trump took office.
"I think the Fed is making a mistake".
Numerous biggest U.S. names fell hard in Wednesday's session, with Apple, Boeing and Facebook all slumping more than 4% and Amazon, Nike and Microsoft shedding more than 5%. As stocks go down, tech goes down more than the stock market, ' she said.More news: Korea, Russia call for "review" of UNSC sanctions in joint communiqué
Trump has slapped tariffs on $250 billion in Chinese goods this year, and Beijing has retaliated with levies $110 billion of American products.
Trump previously criticized the Fed for allowing too much money into the economy in several tweets from 2011, before he became the president.
The Federal Reserve sets baseline interest rates for lending standards, which can have a massive effect on whether businesses expand or contract.
Fed spokeswoman Michelle Smith declined to comment on Trump's remarks.
Powell's goal is 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. "The Fed increasing rates to me was a sign that the economy was able to stand on its own two feet".More news: Meghan Markle’s Estranged Half-Sister Denies Being Turned Away After Uninvited Palace Visit
United States consumer price inflation is now above 2% and the unemployment rate is the lowest in about 40 years.
"The fundamentals and future of the USA economy remain incredibly strong", press secretary Sarah Sanders said in a statement after the close.
Trump, who departed for Erie just before markets closed on Wednesday, was briefed by officials about the sell-off.
Those financial crisis-inspired programmes - such as quantitative easing - are now ending and the Fed has raised USA interest rates three times already this year - raising borrowing costs - and could add a fourth hike by the end of 2018.
"The fundamentals and future of the USA economy remain incredibly strong", Sanders said in a statement. "It is doing well", Trump said.More news: Three strong quakes hit across the world just hours apart
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