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

Lloyd Doyle
October 12, 2018

The president has been publicly criticizing the central bank since July for interest-rate increases and declared he was "not happy" in September after the third rate hike of the year. That is a good thing.

Tiger 21 Chairman Michael Sonnenfeldt told FOX Business' Maria Bartiromo on "Mornings with Maria" Thursday that Trump's "jawboning" of the central bank is "new territory".

"The Fed is getting a little too cute", he told Fox & Friends.

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

The Fed has said strong economic performance in the United States means that the ultra-low rates put in place to spur economic activity after the 2008 financial crisis are no longer necessary.

"I'm paying interest at a high rate because of our Fed", he added, referring to the cost of servicing the United States deficit.

"The rally since early February may be stalling out on confusion about Trump's policies", Ed Yardeni, president and chief investment strategist, and his analysts wrote in a research note.

He has frequently criticised the U.S. central bank for gradually raising interest rates, and on Wednesday reiterated his position: "I really disagree with what the Fed is doing".


The White House said Wednesday that the "fundamentals and future" of the US economy are "incredibly strong" despite the big losses in the stock market.

"The problem that I have is with the Fed".

White House officials, including Mr Trump, have dismissed the declines as standard corrections after a long run of rising share prices. "I think the Fed has gone insane", he said.

International Monetary Fund (IMF) managing director Christine Lagarde. The index fell by more than 3%. "I like to stay uninvolved", Trump said.

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

Trump named Powell to lead the central bank but can only fire him for cause.

U.S. consumer price inflation is now above 2% and the unemployment rate is the lowest in about 40 years. Investors worry the Fed might now raise rates faster to head off increases in inflation that could come from rising wages.

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. Higher interest rates makes it more expensive to borrow money, giving consumers or businesses pause before taking out a loan.

Other reports by Iphone Fresh

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