Global stocks tumble after Trump 'crazy' Fed comment

Global stocks tumble after Trump 'crazy' Fed comment

President Donald Trump again criticised the Federal Reserve for raising interest rates, calling it a "mistake" hours after the worst USA stock market sell-off since February.

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

"I think we don't have to go as fast", the president said.

The turmoil on stock markets came a day after the International Monetary Fund slashed its global growth forecast on worries about trade wars and weakness in emerging markets. "I like to stay uninvolved", Trump said.

Donald Trump's use of the word correction to describe the sell-off could be significant.

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.

Both Powell and the president confirmed in recent days that they have not spoken to each other about interest rates.

"I'm not thrilled because we go up", he explained, "and every time we go up they want to raise rates again, and I don't really - I am not happy about it, but at the same time I'm letting them do what they feel is best".

U.S. consumer price inflation is now above 2% and the unemployment rate is the lowest in about 40 years. "We don't let other things distract us".

Trump has departed from that practice and has said he would not shy from future criticism should the Fed keep lifting rates.

"The Fed continues to flood the market with USA dollars", he said in one tweet.

They include the USA trade war with China and its potential impact on global growth, while rising bond yields have diverted attention from equities - stocks - which have been offering the most attractive returns for years because central bank stimulus had flooded markets with cheap money.

The criticism is also unusual given that Jerome Powell, the Fed chairman, was appointed by Mr...

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. "No, I think the Fed is making a mistake".

But in an interview with CNN in Bali, Mnuchin appeared to contradict Trump's suggestion that the Fed was partly to blame.

"The fundamentals of the United States economy continue to be extremely strong".

Tech and luxury stocks have been among those to feel the worst pain in the sell-off.

It was his second broadside against the U.S. central bank in the last 24 hours, following a sell-off on Wall Street partly attributed to investors fully adjusting to the central bank's steady rate increases, and an uptick in particular in yields on long-term U.S. Treasury bonds that are an important, more secure alternative to stock investments.