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

The Federal Reserve is not pleasing President Trump with its policy on interest rate increases

The Federal Reserve is not pleasing President Trump with its policy on interest rate increases

President Trump placed the blame on the Federal Reserve's interest rate hikes for driving a selloff in the stock market Wednesday, saying the central bank "has gone insane". "I think we don't have to go as fast". "They're so tight. I think the Fed has gone insane", Mr. Trump told reporters after landing in Erie, Pa., for a political rally.

"I think the Fed has gone insane".

The Dow Jones Industrial Average sank 831 points Wednesday, an approximately 3.15 percent drop. "But I really disagree with what the Fed is doing".

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Trump's public criticism of the Federal Reserve, whose chairman, Jerome Powell, Trump appointed, is a sharp departure from his recent predecessors. Powell said last week he expects to stick with the current path of gradual interest-rate hikes while monitoring risks in the economy.

Earlier on Tuesday, White House economist Kevin Hassett said the administration respects the Fed's independence and pointed to Trump's nominees to the central bank as evidence of its non-partisan approach to the setting of monetary policy. By convention presidents rarely comment on central bank policy because the Fed is meant to be independent of politics. He has repeatedly criticized the central bank for raising interest rates this year, decisions aimed at preventing the economy from overheating. Officials expect to hike rates another quarter percentage-point by the end of this year and gradually continue to raise rates at least through 2019. "The fundamentals and future of the USA economy remain incredibly strong", she said, pointing to a 50-year low in unemployment, tax cuts, reduced regulatory burdens, bigger paychecks, and new trade deals that have specifically benefitted farmers, ranchers, and manufacturers. "I like to stay uninvolved", Trump said.

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