Published: Thu, October 11, 2018
Economy | By

Trump calls stock sell-off 'a correction,' says Federal Reserve is 'crazy'

Trump calls stock sell-off 'a correction,' says Federal Reserve is 'crazy'

President Trump placed the blame on the Federal Reserve's interest rate hikes for driving a selloff in the stock market Wednesday, saying the central bank "has gone insane".

"I think the Fed has gone insane", Trump said. "They are so tight".

"The Fed has gone insane", he told reporters on Wednesday as he arrived in Pennsylvania for a campaign rally.

Trump reportedly made the remarks after stepping off Air Force One in Erie, Pennsylvania, where he is due to hold a "Make America Great Again" rally. "They're so tight. I think the Fed has gone insane", Mr. Trump told reporters after landing in Erie, Pa., for a political rally.

A stock market correction is defined as a fall of at least 10 per cent from the high point of the last 52 weeks.

Evans said he estimates neutral to be around 2.75 percent, so "something a little bit above that would be slightly restrictive" and would allow the unemployment rate to rise gradually to a more sustainable level.

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 US economy and creating more jobs.

Trump's comments echo his previous criticisms of recent months, which broke more than two decades of White House tradition of avoiding comments on monetary policy out of respect for the independence of the USA central bank.

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