Global stocks tumble after Trump 'crazy' Fed comment

  • Global stocks tumble after Trump 'crazy' Fed comment

Global stocks tumble after Trump 'crazy' Fed comment

President Donald Trump said the Federal Reserve is moving too fast with interest-rate increases and dismissed concerns about inflation, extending his run of criticism that central bankers have largely disregarded as they push ahead with higher borrowing costs.

"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", President Donald Trump said. Of the stock market, he said, "Actually, it's a correction that we've been waiting for, for a long time".

He has frequently criticised the USA central bank for gradually raising interest rates, and on Wednesday reiterated his position: "I really disagree with what the Fed is doing". And tech stocks got hit particularly hard.

The 10-year Treasury yield rose to 3.22 percent from 3.20 percent late Tuesday after earlier touching 3.24 percent. The International Monetary Fund chief Christine Lagarde said on Thursday that she "would not associate" US Federal Reserve Chairman Jerome Powell "with craziness".

The broad US stock market sell-off Wednesday 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.

As of 10:00 am GMT, Dow futures plunged 238 points, futures on the S&P 500 sank 22.5 points, while Nasdaq futures were down 49.5 points.

He has frequently criticised the U.S. central bank for gradually raising interest rates.

"The fundamentals and future of the US economy remain incredibly strong", Sanders said in a statement.

Bourses in Paris and Frankfurt both lost more than two%, while London fell 1.3%.

The biggest driver for the market over the last week has been interest rates, which began spurting higher following several encouraging reports on the economy.

Currency investors took shelter in the safe-haven yen, resulting in steep losses for Japanese exporters, with electronics giant Sony down almost five percent as blue-chip firms flashed red across the trading board.

Those financial crisis-inspired programmes - such as quantitative easing - are now ending and the Fed has raised U.S. interest rates three times already this year - raising borrowing costs - and could add a fourth hike by the end of 2018. Berkshire Hathaway dipped 4.7 percent to $213.10 and reinsurer Everest Re slid 5.1 percent to $217.73. In Paris, shares in Kering fell almost 10 percent, LVMH over seven percent and Hermes around five percent.