Trump takes aim at 'crazy' Fed as markets sink following U.S. slump

Global stocks tumble after Trump 'crazy' Fed comment

Asian markets plunged Thursday morning following the worst session on Wall Street for months, as US President Donald Trump said the Federal Reserve had "gone crazy" with plans for higher interest rates.

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

"I think it's good", Trump said of the stock decline.

US President Donald Trump speaks during a briefing on Hurricane Michael in the Oval Office of the White House in Washington, DC, October 10, 2018.

Trump has said he likes low interest rates, in part because of his background in real estate. The central bank has hiked interest rates three times this year and expects to do so again in December.

U.S. presidents have rarely criticised the Fed in recent decades because its independence has been seen as important for economic stability. "The Fed is going loco and there is no reason for them to do it and I'm not happy about it".

He has frequently criticised the USA central bank for gradually raising interest rates. Higher interest rates makes it more expensive to borrow money, giving consumers or businesses pause before taking out a loan. "We can do other things with the money", the president said at a September press conference in NY.

Hurricane may bring winds, rain to Lowndes County
Tropical storm force winds , which extend 175 miles from Michael's center, could reach Florida as early as Tuesday night. We'll be tracking Michael closely as it churns toward the northern Gulf Coast, so stick with ABC7 for updates .

"The Fed continues to flood the market with U.S. dollars", he said in one tweet.

Trump's latest attack on the USA central bank appeared to blame the Federal Reserve for a stock rout that market analysts mostly attributed to fresh concern about his trade war with China.

Federal Reserve officials also sounded relaxed with Atlanta Fed President Raphael Bostic and Charles Evans, the Chicago Fed president, on Wednesday down playing the economic effects of the market decline.

"I'm paying interest at a high rate because of our Fed".

Some of his former advisers said they believed Trump's criticisms of the central bank were warranted.

"He is an individual that really understands the plumbing of the US and global financial systems and one example is the reforms that are going underway on Libor for which he is one of the main sponsors", said Carney. "I just don't think it's necessary to go as fast". Economic experts are split on how long the strong economy will continue, and some investors are convinced that a number of stocks - particularly technology companies - are overpriced and were due for a slide.

It was his second broadside against the U.S. central bank in the last 24 hours, following a sell-off on Wall Street partly attributed to investors fully adjusting to the central bank's steady rate increases, and an uptick in particular in yields on long-term U.S. Treasury bonds that are an important, more secure alternative to stock investments.

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