Trump says Federal Reserve ‘has gone crazy’ after big stock drop

Trump says Federal Reserve ‘has gone crazy’ after big stock drop

The Fed last raised 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. "The fact that there's somewhat of a correction given how much the market has gone up is not particularly surprising".

FILE PHOTO: Flags fly above the Federal Reserve building in Washington, DC, U.S., August 22, 2018.

Even so, the market tumble may capture the tone of the Bali talks, where policy makers are increasingly focused on the risks to global growth amid escalating trade tensions and the Fed's embrace of higher interest rates.

Stocks have been under pressure since the yield on 10-year US Treasury bonds jumped above three percent last week, a sudden move that raised fears of an overheating economy, speeding inflation and more aggressive Federal Reserve rate hikes.

International Monetary Fund chief Christine Lagarde also defended the Fed on Thursday.

During an event earlier Wednesday amid the sell-off, Trump and his top economic adviser, Larry Kudlow, said they believed the US economy was strong.

"Of the many qualities of Jerome Powell is he's an individual who really understands the plumbing of the US and the global financial system", Carney said. Housing has already shown softness in some markets in recent months.

While defending justified rate hikes, Lagarde added on Thursday that uncoordinated rate increases in advanced economies were contributing to destabilising capital outflows from emerging markets.

Mnuchin said the correction doesn't reflect a wider systemic problem.

Oil extends losses as markets fall, inventories climb
The prices are being driven up in part because crude oil inventories continue to rise, meaning there's a plentiful supply. The facility is the only U.S. port able to fully load and unload tankers with a capacity of 2 million barrels of oil.

In A First, Healthy Mice Born From Same-sex Parents
Ilic warns that it will be a long time before similar methods could be used to produce human babies from two mums or two dads. Based at the Chinese Academy of Sciences, they wanted to understand why animals of the same sex can't have babies together.

Jimmy Butler has heated practice with Timberwolves
Richardson amassed 12.9 points, 2.9 assists and 3.5 rebounds per game previous year , and his contract is extremely team-friendly. It is unclear if Butler made his full-time return to the Timberwolves season or just proved a point of some kind in the practice.

"The markets are bringing up their expectations for growth, and have been bringing them up all year", Perli said.

The FTSE 100 opened 1.5% lower - hovering just above the 7000 point level - following a 1.3% decline on Wednesday while other main European markets dropped by similar levels.

Jasper Lawler, head of research at London Capital Group, offered this explanation: "The bloodbath for global equities comes as investors adjust to a world of higher U.S. interest rates and USA treasury yields". "The Fed is going wild".

Trump said he had no intention of firing Powell. The drop was widely attributed to concern over rising Treasury yields and Chinese spying on USA technology.

The yield on the 10-year U.S. Treasury note is a closely watched number as a signal of where the U.S. economy is headed. Trump has departed from that practice and has said he would not shy from future criticism should the Fed keep lifting rates.

The yields of inflation-protected bonds have moved mostly in lock step with traditional bonds in recent weeks, suggesting that traders haven't become more anxious about inflation.

"That's something we could see again, and such a rise in rates could accelerate", he said.

The Tel Aviv Stock Exchange was down more than two percent, Shanghai plummeted almost 5% while Tokyo and Hong Kong both shed around 4%, as investors fretted about surging interest rates and the ongoing US-China trade war. "It's never been done".

Now he expects many investors see the good times coming to an end. Instead, U.S. equity markets have kept going up.

Related Articles

  • Dow Falls 430 Points as Bond Yields Surge and China Tensions Grow

    Dow Falls 430 Points as Bond Yields Surge and China Tensions Grow

    Investors see many of these countries as being vulnerable to higher USA interest rates, which can pull away investment dollars. Some market watchers had predicted a bounce on Thursday after Wednesday's pullback, Wall Street's worst day since February.
    Magnitude-7 quake  strikes Papua New Guinea

    Magnitude-7 quake strikes Papua New Guinea

    Some tourists and residents ducked outdoors as a precaution but then went back to sleep when there was no tsunami warning. The International Monetary Fund and its sister lending organisation, the World Bank, are holding annual meetings on Bali.
    Church Leaders Must Face Truth of Abuse, Cardinal DiNardo Says

    Church Leaders Must Face Truth of Abuse, Cardinal DiNardo Says

    This isn't the first time the Pope has mentioned the scandal within the Church. It was the first time a cardinal has resigned in nearly a century.
  • Death Toll from Hurricane Michael Rises to at Least Five

    Death Toll from Hurricane Michael Rises to at Least Five

    As of Thursday morning, the storm was centered about 40 miles west-northwest of Columbia, South Carolina, and is headed northeast. They meant to sell children's toys and host family-friendly events, a need they saw in the community. "I still can't believe it".
    Red Sox Name Starters for Games 1 and 2 of ALCS

    Red Sox Name Starters for Games 1 and 2 of ALCS

    Mercifully, Kimbrel ended the game by getting Torres to ground out to third base, which became a bang-bang play at first base. Kimbrel followed that up by hitting Neil Walker with a wayward curve to force in a run, making the score 4-2.
    Hurricane Michael damage pictures: Horrifying scenes as Hurricane FLATTENS Florida homes

    Hurricane Michael damage pictures: Horrifying scenes as Hurricane FLATTENS Florida homes

    It appeared to be so powerful that it was expected to remain a hurricane as it moves into Alabama and Georgia early Thursday. The National Hurricane Center said Michael would pass through the Carolinas, dumping as much as 20cm of rain in some areas.
  • Video Shows Hurricane Michael Ripping Apart Buildings in Florida

    Video Shows Hurricane Michael Ripping Apart Buildings in Florida

    It was centred about 88.5km west northwest of Tallahassee. "A turn toward the northeast is expected this evening or tonight". CNN's John Berman and Dianne Gallagher report from Panama City Beach, Florida , as Hurricane Michael approaches landfall.
    Google, Xiaomi announce Mi Box S Android TV streaming box

    Google, Xiaomi announce Mi Box S Android TV streaming box

    Because apparently Netflix is now so very universally used, it makes sense to include a physical button for Netflix alone. Regarding connectivity, the device supports dual-band Wi-Fi (both 2.4 GHz and 5.0 GHz) with Bluetooth 4.2.
    French federation president closes door to Karim Benzema’s return

    French federation president closes door to Karim Benzema’s return

    Le Graet had said in an interview with French newspapers that the 30-year-old Benzema's time with Les Bleus "was finished". And Benzema, who has 81 caps for his country, took to Twitter to reply to Le Graet's comments.
  • Saudi squad who came for Jamal Khashoggi included soldiers, royal guards

    Saudi squad who came for Jamal Khashoggi included soldiers, royal guards

    Trump said that he and First Lady Melania Trump were in contact with her and were looking to "bring her to the White House". Prince Khalid bin Salman, the Saudi ambassador to Washington, denied reports that Riyadh had Khashoggi killed.
    Surprise 'South Park' Ending Is A Massive Troll Of 'The Simpsons'

    Surprise 'South Park' Ending Is A Massive Troll Of 'The Simpsons'

    Hankey had been fired from directing the annual holiday pageant after a series of "offensive tweets" from his past resurfaced. The documentary that really brought the issues with The Simpsons' portrayal of Apu was aptly titled " The Problem With Apu ".
    Images trickle out of Michael's vast devastation

    Images trickle out of Michael's vast devastation

    Meteorologists use central pressure readings to gauge a hurricane's strength - the lower the pressure, the stronger the storm. However, the National Hurricane Centre ( NHC ) said that winds picked up at certain points along the Georgia and SC coast.