President Trump told reporters on Air Force One that the Federal Reserve had raised rates too quickly after being asked his reaction to the massive stock sell-off, according to pool reports.
The Dow Jones industrial average crashed 831 points Wednesday afternoon, losing 3.2% percent in a single day.
The Nasdaq composite cratered 4% in one day and the S&P 500 lost 3.3% as investors sought safe havens from rising interest rates.
“No, I think the Fed is making a mistake. They’re so tight,” Trump said. “I think the Fed has gone crazy. So you can say that, ‘Well that’s a lot of safety actually.' And it is a lot of safety, and it gives you a lot of margin. But I think the Fed has gone crazy.”
“No, I think the Fed is making a mistake. ..”
“I think the Fed has gone crazy.
So you can say that, ‘Well that’s a lot of safety actually.' And it is a lot of safety, and it gives you a lot of margin. But I think the Fed has gone crazy.”
“I really disagree with what the FED is doing,” Trump said.
Investor fears over rising interest rates drove much of Wednesday’s sell-off as investors sought to park their money in cash and safe haven asset classes.
The sell-off came a day after the International Monetary Fund said the world economy is plateauing and cut its growth forecast for the first time in more than two years, blaming escalating trade tensions with China.
The IMF warned that a severe recession would slash US public wealth by about $5 trillion, causing vastly more damage than reported previously.
IMF Economists now say the chances of a recession in the United States are growing due to rising interest rates by an out of control FED.
Using a hypothetical "stress test" scenario developed by the US Federal Reserve for banking regulation, the IMF found a severe recession would cut the value of America's publicly held assets by an amount equal to about USD 5 trillion.
‘I think the Fed is making a mistake," said President Donald Trump in the wake of a virtual bloodbath on Wall Street.