Trump calls stock selloff 'a correction,' says Federal Reserve is 'crazy'

After a long stretch of relative calm the stock market has suffered sharp losses over the last week

"Actually it's a correction that we've been waiting for a long time, but I really disagree with what the Fed is doing", Trump told reporters before a political rally in Pennsylvania.

And while he acknowledged higher rates helped savers, he criticized the Federal Reserve's tactics as 'too aggressive'. "But I think it's far too stringent far too fast".

Trump's blunt public criticism of the Fed, which began this summer, is without precedent.

The central bank had raised the benchmark lending rate, which affects everything from mortgages to auto loans to bond yields, just twice before Mr Trump took office in January 2017, after a campaign in which he criticized the institution for allegedly keeping rates near zero in a bid to help his opponent.

For example, inflation of 2.16 percent a year over the coming decade is implied by the current price gap between the two types of bonds, up only a smidgen since August and below its level in May.

During panel discussions at the International Monetary Fund's (IMF) annual meetings in Bali, Indonesia, yesterday, South African Reserve Bank governor Lesetja Kganyago stressed the importance of central bank independence when he was asked whether Trump's comments demean the integrity of the institutions.

The Federal Reserve is very loud and clear with its rhetoric. That issue has never arisen in regard to an individual Fed official. Remember, trade wars can last a long time. Over the past year, the Fed has been raising rates once every quarter, or a pace of four times in a year. That gave Carter an opening to make Paul Volcker the new Fed chairman, someone the Carter administration regarded as better equipped to combat high inflation.

Google exposed personal data of nearly 500,000 and didn't disclose it
We believe it occurred after launch as a result of the API's interaction with a subsequent Google + code change. Google has chose to shut down the consumer version of its failed social network Google +.

How could the interest rate hikes cause an economic crisis? Increased borrowing demand by Uncle Sam would lead to rising rates, all things being equal. One way is the "discount rate" that the Fed charges member banks.

The yuan has fallen in recent days on trade concerns, raising questions about whether the People's Bank of China (PBOC) would allow it to fall below the psychologically important level of seven to the dollar, a level the PBOC has defended previously.

"It's all about investors rethinking their exposure to stocks."Many of the biggest U.S. names fell hard in Wednesday's session, with Apple, Boeing and Facebook all slumping more than four percent and Amazon, Nike and Microsoft shedding more than five percent".

Further interest-rate increases are "not unreasonable" given the strength of the expansion, said James Knightley, chief worldwide economist at ING Groep NV in London.

"We know the Fed is independent".

The breach of norms is not surprising for a real-estate-developer and reality-star-turned-president who has cheered as Wall Street has soared to new heights this year, hitting repeated records, and used that as proof his economic policies were working. Trump added, "The Fed is going loco".

Mr. Williams' prepared remarks closely followed recent speeches of his, which expressed optimism for the economy and an appetite for more rate increases. Rather, he has stressed that the central bank handles its job without regard to politics. Fed officials including Powell, Trump's handpicked chair, have said pointedly that they will not be influenced by comments from elected officials, and will make decisions based on economic data.

Related News:

  • Chicago's Third Women's March Focuses On The Polls

    Chicago's Third Women's March Focuses On The Polls

    In court, Kavanaugh asked questions of both sides in arguments over increased prison sentences for repeat offenders. And the president is now using the hard feelings stemming from the Kavanaugh battle to rally Republican voters.
    Nokia unveils slider phone

    Nokia unveils slider phone

    The Nokia 3.1 Plus also gets big upgrade in the camera department where it now comes with dual modules at the back. Nokia 3 .1 Plus will be available in India starting October 19 via offline stores and Nokia's e-store online.
    Essential's Next Phone Will Be A Wildly Different, AI-Powered Companion

    Essential's Next Phone Will Be A Wildly Different, AI-Powered Companion

    Rubin has already achieved one of the biggest feats by the laying the foundation of the modern smartphone business with Android. Previously we heard that the next project for the company would be a smart speaker rather than the next Essential Phone .
  • Gathering strength, Hurricane Michael heads for Florida

    Gathering strength, Hurricane Michael heads for Florida

    The National Weather Center called Michael a "worst case scenario" for Northwest Florida. "It's a massive storm", Florida Gov. The governor activated 750 National Guardsmen for storm response on Monday, on top of the 500 activated the day before.
    Flight with 133 on board grazes wall at Trichy airport

    Flight with 133 on board grazes wall at Trichy airport

    Officials said the DGCA was probing the matter and the damage to the aircraft's belly, including the wheels, is being assessed. The plane was then diverted to Mumbai, where it landed safely - although the aircraft sustained some damage.
    Selena Gomez reportedly admitted to mental health facility

    Selena Gomez reportedly admitted to mental health facility

    While Momina Mustehsan has previously spoken of her panic attacks, model Kendall Jenner described her "debilitating anxiety". Selena Gomez is seeking treatment after suffering an emotional breakdown while in the hospital, according to reports .
  • Conor McGregor was suspended from fighting

    Conor McGregor was suspended from fighting

    Nurmagomedov was hustled out surrounded by security officers as a pro-McGregor crowd jeered and threw drinks at him. McGregor then landed a punch on a member of Nurmagomedov's team who had made his way into the octagon.
    Prince William, Kate Middleton and Prince Harry’s most powerful mental health quotes

    Prince William, Kate Middleton and Prince Harry’s most powerful mental health quotes

    Kate only returned to royal duties last week after taking maternity leave for the birth of the couple's third child Prince Louis. Prince William joked Duchess Catherine had "ruined" a painting when they met with an artist on Tuesday (09.10.18).
    Soyuz rocket carrying astronauts forced into emergency landing after malfunction

    Soyuz rocket carrying astronauts forced into emergency landing after malfunction

    Just over a minute after the launch, the spacecraft's booster failed and the launch was aborted. Manned space launches have been suspended pending an investigation.
  • Lewis Hamilton says F1 media needs to show Sebastian Vettel more respect

    Lewis Hamilton says F1 media needs to show Sebastian Vettel more respect

    Hamilton stands on the brink of a fifth world championship after a remarkable run of six victories from the past seven races. It means the championship could be decided as early as the United States Grand Prix in a fortnight's time.
    Ministers in revolt over May’s Brexit concessions

    Ministers in revolt over May’s Brexit concessions

    The document stated that the UK Government "expects" this arrangement to remain in place no later than the end of December 2021. The BBC understands concerns centred around plans to ensure no hard border between Ireland and Northern Ireland .
    Pope accepts Washington cardinal's resignation amid scandal

    Pope accepts Washington cardinal's resignation amid scandal

    Wuerl had originally resigned on his 75th birthday, November 12, 2015, as is the custom among Catholic bishops. Wuerl, who is 77, may have resigned, but he won't be disappearing from church leadership just yet.


Most liked

India wins seat at United Nations Human Rights Council
The Council is made up of 47 United Nations member states which are elected for three years, with a new cohort joining every year. Countries can be elected to only two consecutive terms and India had taken a year's break when its term ended in 2017.

Palestinian woman dies after West Bank stonethrowing
Settlements Israel has built in the West Bank, where Palestinians have limited self-rule, are deemed illegal by most countries. Israel accuses Hamas of orchestrating the weekly border riots that have taken place since March to provide cover for attacks.

China trade surplus with US widens to record $34.1B
Trump and Xi have agreed to meet next month at the G-20 summit in Buenos Aires to discuss the escalating U.S. That's significantly higher than the $196 billion recorded between January and September past year .

Hurricane Michael Devastates Florida, Two Dead
An 80-mile stretch of Interstate 10 was reopened Thursday after it was shut down to clear debris form Hurricane Michael. So far, no counties along the devastated northwest Florida coast have reported deaths related to the storm.

WhatsApp security bug enabled hackers to take over phones with video call
And now as the WhatsApp bug has been patched, you need to update to the latest version available for Android and iOS. Last month, Brian Acton went on record to say that he sold users' privacy when Facebook acquired WhatsApp.

Bloomberg Rejoins Democrats, Signals Interest in Presidential Bid
He has said he will "take a look" at a presidential campaign after the midterm elections, The Washington Post reported Wednesday. Last month Bloomberg told the New York Times that, if he were to run for president, he would "have to run as a Democrat".

Couple killed in Majorca floods
Soldiers used shovels to clear the thick mud from the streets of the town, 60 kilometres east of the island's capital of Palma . Heavy rains have fallen last night on the very touristic island of the Balearic islands, causing a sudden rise of the waters.

Odell Beckham Catches 1st Touchdown of 2018
The last time they failed to convert a single third down was December 24, 2006, against the Saints. New York Giants coach Pat Shurmur is in charge of a bad team and a generally unproductive offense.

Melania Trump Says Rumors of Donald Trump Cheating Are Just Gossip
The first lady's communications director fired back at Giuliani at the time, telling CNN in a statement, "I don't believe Mrs. Watch a clip of her interview (below) and tune in to the full special Being Melania - The First Lady tonight at 10 p.m.

Trial of USA pastor Brunson resumes in western Turkey
Hopes are rising that American pastor Andrew Brunson may be freed, more than two years after he was first detained in Turkey . Norine Brunson , wife of USA pastor Andrew Brunson, departs for her husband's court hearing in Izmir, Turkey October 12, 2018.

It's not right! Saha hits out at Pogba's Mourinho comments
France face Iceland in a friendly in Guingamp on Thursday and resume their Nations League campaign with a return clash at home to Germany on October 16, following a 0-0 draw in Munich last month.

Trump blames Fed for stock rout, says central bank ‘ridiculous’
Now, explaining market actions through psychology is probably as much a mug's game as psychoanalyzing a Fed chair from afar. Efforts to cool down the market generally accompany rises in inflation, but there are few signs of that at the moment.

#MeToo movement explodes: Sajid Khan steps down as 'Housefull 4' director
She added that she had to work with him again while she was working with a music channel. Dia made an appearance in a song from Sajid Khan's 2007 comedy film, Heyy Babyy .

Asian markets close lower amid IMF’s global growth forecast downgrade
The FTSE 100, which closed at 7,233.33, is forecast to open 10 points higher when trading begins shortly. The IMF has, therefore, not changed its estimate for the US' growth in 2018 keeping it as is at 2.9%.

British PM May briefed inner cabinet 'Brexit deal close'
Speaking to reporters in Brussels, Margaritis Schinas said: "We are not there yet". Another summit in November is planned to close the deal.