Economy

Trump calls stock sell-off a correction, says Fed ‘crazy’

Trump calls stock sell-off a correction, says Fed ‘crazy’

Wall Street stocks plummeted Wednesday amid worries about surging USA interest rates and the impact of trade disputes, as President Donald Trump blamed the Federal Reserve, saying it had "gone insane".

"I think the Fed is making a mistake", Trump said to reporters after landing in Erie, Pennsylvania, for a campaign rally on Wednesday. "I think the Fed has gone insane".

USA stocks took their worst loss in eight months Wednesday, with the Dow Jones Industrial Average sinking 831 points and the Nasdaq composite logging its biggest loss in more than two years.

The selloff 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 and stresses in emerging markets.

The 10-year Treasury yield rose to 3.22 percent from 3.20 percent late Tuesday after earlier touching 3.24 percent. The Fed is doing what it thinks is necessary, but I don't like what they're doing because we have inflation really checked and we have a lot of good things happening.

President Trump blamed the Federal Reserve - and his appointee Jerome H. Powell - for the big drop Wednesday.

More news: International Monetary Fund downgrades outlook for U.S., China as result of trade war

United States consumer price inflation is now above 2% and the unemployment rate is the lowest in about 40 years. The Nasdaq dropped more than 4% in the worst percentage decline since June 2016. Powell said last week he expects to stick with the current path of gradual interest-rate hikes while monitoring risks in the economy. "It's all about investors rethinking their exposure to stocks". "I just don't think it's necessary to go as fast".

"As concerns increase over higher interest rates dampening growth, investors are evolving their trading strategies accordingly".

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 USA economy and creating more jobs.

The markets have been on a historic climb - with the Dow and S&P each notching dozens of new highs since 2016 - buoyed by a strong US economy and solid corporate earnings.

"It's shifting the tectonic plates", said Jack Ablin, chief investment officer at Cresset Wealth Advisors.

On Friday, federal data showed that the USA jobless rate fell to 3.7 percent in September, its lowest point since 1969. "I like to stay uninvolved", Trump said. Berkshire Hathaway dipped 4.7 percent to $213.10 and reinsurer Everest Re slid 5.1 percent to $217.73.


  • Selena Gomez Has 'Emotional Breakdown' and Now Receiving Mental Health Treatment

    The 26-year-old singer and actress is said to be seeking treatment after a rumored panic attack brought on by medical setbacks. According to TMZ Selena was admitted into the treatment facility to treat ongoing issues related to anxiety and depression.
    Google pulls out of $10 billion Pentagon cloud contract over AI concerns

    Google pulls out of $10 billion Pentagon cloud contract over AI concerns

    The company later said it would entirely ban the development of AI software that can be used in weapons systems. Last week Google chief executive Sundar Pichai met with top defense officials to try to ease tensions.
    From Taylor Swift to Michael Jackson: Top 10 American Music Award winners

    From Taylor Swift to Michael Jackson: Top 10 American Music Award winners

    It takes her AMA tally to 23, beating Whitney Houston's 19 to make her the most successful female artist at the awards. Taylor Swift arrives at the American Music Awards on Tuesday, Oct. 9, 2018, at the Microsoft Theater in Los Angeles.
  • Google Home Hub - Google Assistant With A Display

    Google Home Hub - Google Assistant With A Display

    You can play YouTube videos as well, although it doesn't yet support playing content you've purchased on Google Play Movies & TV. One other pretty significant difference between the Home Hub and other Smart Displays is what's found under the hood.
    Pacific Northwest gas prices could spike after pipeline explosion

    Pacific Northwest gas prices could spike after pipeline explosion

    The blast Tuesday evening shut down the Enbridge natural gas pipeline about 600 miles northeast of Vancouver. The company will update its customers as soon as it is in a position to offer something new, said Stout.
    Red Sox play 'New York New York' in clubhouse

    Red Sox play 'New York New York' in clubhouse

    New York Yankees fans probably aren't too happy with the folks in charge of Major League Baseball's official Twitter account. For the second straight night, Yankees rookie manager Aaron Boone hesitated to remove his starting pitcher early.
  • UFC boss: Nurmagomedov won't be stripped of UFC title

    UFC boss: Nurmagomedov won't be stripped of UFC title

    White said the UFC will allow the NSAC to conduct its hearings before making a decision on Nurmagomedov's next fight. We'll see what happens with Khabib and what's next.
    Seann Walsh: Seann Walsh Speaks About Strictly Scandal

    Seann Walsh: Seann Walsh Speaks About Strictly Scandal

    The pair later apologised for a "one-off drunken mistake" , as the so-called "curse of Strictly " appeared to strike again. I am not the person I'm being portrayed as. "Despite everything, I hope he gets everything he wants from this".

    Wall Street plunges as investors seek safety

    The benchmark US stock index hadn't suffered a five-day losing streak since November 2016, just before the presidential election. The two-year yield rose to 2.89 percent from 2.87 percent, and the 30-year yield climbed to 3.39 percent from 3.37 percent.
  • Samsung launches the Galaxy A9

    Next, we have an 8MP 120-degree ultra-wide-angle lens that will provide more background in the shot that you are about to snap. What we can say is that this is a feat of engineering that other companies will likely try to mimic or are already testing.
    Manchester United's Paul Pogba

    Manchester United's Paul Pogba

    He cited former Italy midfielder Andrea Pirlo, a teammate of Pogba's at Juventus, as someone who could be relied upon to "show you the way on the pitch".
    Updates, tracking resources as storm makes landfall

    Updates, tracking resources as storm makes landfall

    It appeared to be so powerful that it was expected to remain a hurricane as it moved into Alabama and Georgia early Thursday. The Suwannee Valley is expected to experience sustained 40-50 miles per hour winds with gusts up to 75 miles per hour .