US President Trump calls the US Fed 'crazy', stock declines a 'correction'

US President Trump calls the US Fed 'crazy', stock declines a 'correction'

The Dow Jones Industrial Average plummeted 832 points on Wednesday, recording its largest single-day point drop since February.

Ahead of a campaign rally for the U.S. mid-term elections, Trump told reporters: "I think the Fed is making a mistake".

U.S. President Donald Trump said that Wednesday's stock market sell-off was in fact a long-awaited "correction", and that the Federal Reserve, which has been raising U.S. interest rates, had gone "crazy". "But I think the fed has gone insane".

Trump, who has frequently invoked rising stock prices as an affirmation of his economic policies, downplayed the significance of the market drop even as he pointed the finger at the Fed.

"Actually, it's a correction that we've been waiting for, for a long time", Trump said about the market selloff. "But I really disagree with what the fed is doing. OK?"

Trump was briefed on the market turmoil earlier in the day, a White House official said. The IMF projections don't take into account Trump's threat to expand the tariffs to effectively all of the more than $500 billion in goods the US bought from China a year ago.

Trump's public criticism of the Federal Reserve, whose chairman, Jerome Powell, Trump appointed, is a sharp departure from his recent predecessors. By convention presidents rarely comment on central bank policy because the Fed is meant to be independent of politics.

Pipeline explosion expected to increase prices at the pump
The Pembina line was shut down at points on both sides of the incident, and the company is draining down the line. Enbridge says the explosion happened after one of its natural gas pipelines suffered a rupture around 5:45 p.m.

Higher interest rates tend to moderate economic growth and makes borrowing more expensive for the USA government as well as businesses and consumers.

The steep drop in Japan followed a decline on Wall Street of almost 830 points, the biggest fall since February, amid Trump's latest criticism of the Federal Reserve, the United States central bank.

"There are a number of worries for investors right now, from the pace of rising bond yields and the impact on investor sentiment, to Italy's populist coalition playing a game of chicken with the European Commission, stalling Brexit negotiations and the ongoing trade conflict between the United States and China", said Craig Erlam, senior market analyst at Oanda trading group.

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 US central bank.

The Fed last raised interest rates in September and left intact its plans to steadily tighten monetary policy, as it forecast that the US economy would enjoy at least three more years of economic growth.

"I like low interest rates", Trump said.

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