Home Economy Trump Says Fed ‘Has Gone Crazy’ Following Stock Market Selloff

Trump Says Fed ‘Has Gone Crazy’ Following Stock Market Selloff

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WASHINGTON, DC - OCTOBER 10: U.S. President Donald Trump discusses the potential impact of Hurricane Michael during a meeting with Homeland Security Secretary Kirstjen Nielsen and FEMA Administrator Brock Long in the Oval Office of the White House on October 10, 2018 in Washington, DC. Hurricane Michael has recently been upgraded to a category 4 storm. (Photo by Win McNamee/Getty Images)

President Donald Trump again criticized the Federal Reserve for raising interest rates following the worst market sell-off since February.

“The Fed has gone crazy,” he told reporters on Wednesday as he arrived in Pennsylvania for a campaign rally. The central bank “is too tight,” he added.

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White House Press Secretary Sarah Sanders said in a statement following the close of markets that the U.S. economy is “incredibly strong” despite the selloff, which analysts attributed in part to trade tensions with China.

“It’s a correction we have been waiting for a long time,” Trump said.

The president frequently celebrates publicly when the stock market reaches new highs, pointing to the gains as affirmation for his economic policies.

Trump was briefed on the market turmoil earlier in the day, a White House official said. He has repeatedly criticized the central bank for raising interest rates this year, decisions aimed at preventing the economy from overheating.

“The fundamentals and future of the U.S. economy remain incredibly strong,” Sanders said in a statement. “President Trump’s economic policies are the reasons for these historic successes and they have created a solid base for continued growth.”

U.S. stocks tumbled Wednesday, the most since February, as fresh concern about the impact of the trade war with China roiled technology and industrial shares. The broad selloff took the S&P 500 to the lowest in three months, the Dow Jones Industrial Average plunged as much as 836 points and the Nasdaq 100 Index tumbled more than 4 percent for its worst day in seven 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.

Trump has slapped tariffs on $250 billion in Chinese goods this year, and Beijing has retaliated with levies of $110 billion of American products. 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 U.S. bought from China last year.

Fast forward just 1 week when things are decidedly less glowing, and on a day in which the VIX exploded, the Nasdaq tumbled 4%, the S&P slumped below all key support levels, and the Dow plunged more than 800 points, its worst day since February in a Black Wednesday for tech stocks, there is far less cause for celebration.

In fact, according to CNBC’s Eamon Javers, Trump was briefed on the market sell off this afternoon. And while Trump will most likely not tweet any celebratory message today, a senior White House official give Javers the following comment: “This is a bull market correction. It’s probably healthy. This will pass and the US economy remains strong.”

So who was behind the selloff: deleveraging risk parity funds? Selling CTAs? A wholesale derisking into a higher interest rate environment. Or… could it be China, with its $1.5 trillion in reserves sending Trump a clear message what could happen if Trump continues to unleash hell in Beijing’s general direction?

While it is unlikely that the culprit will be revealed, there is nothing that would prevent Trump from pushing the former narrative and blaming Beijing for today’s rout.

That said, there is one more person who should be rather nervous after the plunge: recall that exactly 24 hours ago Trump said that he doesn’t “like what the Fed is doing.” What better justification could Trump have to “push” Powell than to accuse him of the second worst selloff of 2018?

Indeed, as one notable fintwit member said, a little more downside in the S&P, “and Powell can start putting his coffee cups and pencils in a cardboard box.”

via www.newsmax.com

13 COMMENTS

  1. When there is a selloff it is because the players want the money that is in the pockets of non-players. If you don’t know by now that ‘markets’ are misnomered you like under a rock. They are casinos.

  2. Interest rates and THE FEDERAL RESERVE are the last bullet in Washington’s gun to hurt Trump. After the Kavanaugh debacle he is up to 51% approval on the Rasmussen poll, and Rep’s are up in congressional/Senate polls, so they have to do SOMETHING to get back at him…….ah, yes, the one thing he cannot control, interest rates/federal reserve. Everything happens for a reason.

  3. The Federal Reserve needs to be audited and monitored more closely as it now is not happening. The Fed thinks it can do anything it wants. And the 1913 Banking Act that created the Fed and the IRS needs to be reversed and both need to be eliminated.

    • What the SO-CALLED “Federal Reserve”, which is very well known as being NEITHER federal NOR possessing any “reserves” REALLY needs is to be IMMEDIATELY ABOLISHED. Gold standard FOREVER!!!!!!!!!
      .
      SO-CALLED “Federal Reserve”, International Monetary Fund, and rothschilD KLAN: three mutually-committed ARCH-ENEMIES of our Constitutional Republic!
      .

  4. even fox business new,s won,t let them tell the truth-mr.murdock has control & won,t allow-even varney or maria-won,t tell the truth-think big tech-& who own,s them??

  5. TRUE. The “Federal Rewserve” is neither Federal OR Reserve. It is the world Bank, skimming off of us as they have for so long. They print all the money that THE UNITED STATES want, but then charge i8nterest on all of that unbacked money as soon as it is printed, so that we owe more than we receive — QUITE A NASTY SCAM. Of course, this is more CORPORATE DEBT, as THE UNITED STATES is owned by the European bankers that use the “Fed” to suck us dry. The money that Lincoln had printed, for examp0le, called “greenbacks”, was retired in 1997, $10,000,000 that had NEVER had interest on it because WE PRINTED IT. Naturally it was rep0laced with Federal Reserve Notes, so we DO pay interest on it. It made the Fe3d look bad, for anyone who saw the difference.

  6. The Federal Reserve needs to be ended. Trump could do that with his signature. He needs to do that without telling anyone first. It was one of the reasons Kennedy was assassinated. Our country is through and through greedy and corrupt.

  7. Noting all the comments above which are pretty intelligent I would only add it was a dem wit president that created the Feds back in the days of WWI. 1913 and Woodrow Wilson did it with the backing of his party in congress. And maybe it is time to reverse this little bank of the NWO. Again, we can thank the dem wits for another stupid move even back that long ago. But then they were trying to form the league of nations, move away from the KKK, and get the NWO really rolling. And the dem wits are still trying.

    Also better to make less profit and keep your gains. As noted the stock markets today are run by finance guys who habitually spend you money unwisely as in gamblers then get bailed out by none other than the investors like us!

    And congress after 2008 under Bozo and the dem wit congress did not tell the gamblers with a law that the public would no longer be bailing them out because they were too big to fail. A law to that effect was KILLED in congress never to rear it’s head again since that SECOND GREAT DEPRESSION. It was NOT a RECESSION and anyone who believes it was is too stupid to have a discussion with!

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