Global stocks tumble after Trump 'crazy' Fed comment

U.S. markets drop sharply as investors are spooked by rising rates

U.S. markets drop sharply as investors are spooked by rising rates

Mr Trump has voiced concerns about the pace of tightening in the past but stepped up the rhetoric yesterday when he told reporters: "I think the Fed is making a mistake".

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

Though the Fed has been raising its overnight target policy rate, a benchmark for lending costs overall, the current level of between 2 and 2.25 per cent remains just half the average set by the Fed between 1990 and the start of the 2007 to 2009 recession.

Lagarde's comments came as a global market sell-off rolled on following Trump's comments, underscoring rising financial volatility that the International Monetary Fund will address at its annual meetings this week in Bali.

"The US equity bloodbath is taking no prisoners in Asia as a sea of red greets investors at the open, as equity deleveraging and liquidation intensifies", he said.

"I wonder today whether Trump really has some buyer's remorse with respect to selecting Powell as his Fed chairman, because that was a odd pick", Moore said. Higher interest rates could increase his debt payments considerably.

Trump on Thursday also indicated that the Fed's policies were harming him personally. The Fed has "gone insane", he said.

He added later, "The problem, in my opinion, is Treasury's and the Fed".

More news: Bloomberg re-registers as Democrat amid rumors of 2020 presidential run
More news: Pakistan seeks largest loan package from IMF
More news: Nokia 7 Plus serves first slice of Androin 9 Pie

"The Fed has gone insane", Mr. Trump told reporters while traveling to Erie, Pennsylvania, for a campaign rally. "The Fed is going loco and there is no reason for them to do it and I'm not happy about it".

Mr. Trump said earlier this week that he thought the central bank was moving too quickly with a series of planned interest rate hikes.

Fed Chairman Jerome Powell is aiming to extend the second-longest US economic expansion on record by moving interest rates up just quickly enough to prevent overheating, but not so rapidly that the central bank chokes off growth.

"Later, White House Press Secretary Sarah Sanders said the fundamentals and the future of the United States economy remain incredibly strong".

"The Fed's more-restrictive stance has joined with other signals to unsettle investors even as major USA indexes rose to new highs", the financial daily said. Along with Dow, the S&P 500 tumbled 3.3 percent and the Nasdaq composite fell by four percent.

But one unintended outcome is that raising interest rates can scare off investors and precipitate a sell off in equities.

The S&P 500 posted its fifth straight decline, plummeting almost 3.3%. Francis Tan, an investment strategist at UOB Private Bank, said "the valuation of US stocks, especially tech stocks, is still pretty high", suggesting markets could further to fall.

On Wednesday, the Dow fell 831 points, or 3.1 percent, to 25,598.

Recommended News

  • U.S., Russian astronauts make emergency landing after booster rocket fails

    NASA has not provided much detail about the failure, but confirmed in a tweet that there was a problem with booster separation. Last month, the current ISS crew discovered a hole in the vessel that Russian Federation claims was drilled deliberately.
    Malaysia to abolish death penalty; Bill may be tabled soon

    Malaysia to abolish death penalty; Bill may be tabled soon

    Surendran claimed there were now "hundreds of Malaysians" on death row in foreign countries, particularly for being drug mules. The UN envoy noted the majority of executions today are carried out in China, Pakistan, Iraq, Iran and Saudi Arabia.
    STORM CALLUM: Met Eireann extend five weather warnings

    STORM CALLUM: Met Eireann extend five weather warnings

    Met Éireann has warned that strong winds associated with Storm Callum could reach speeds of between 110 and 130km/h. The warning for Cork and Kerry is valid from Thursday 11 October 2018 22:00 to Friday 12 October 2018 09:00.
  • LeBron James: ‘My 14 and 11 year olds drink wine’

    LeBron James: ‘My 14 and 11 year olds drink wine’

    James said he hopes the team takes care of one thing before the season starts. For more sports coverage, visit the ABS-CBN Sports website .
    Introducing the Nokia 7.1 in Qatar

    Introducing the Nokia 7.1 in Qatar

    Powering the Nokia 3.1 Plus is an octa-core MediaTek Helio P22 chipset paired with 2GB/3GB RAM and 16/32GB internal storage. The Nokia 3.1 Plus is packed with an impressive battery of 3,500mAh capacity which carries support for 5V/2A charging.
    Kourtney Kardashian says Yeezy designs \

    Kourtney Kardashian says Yeezy designs \"f*cking suck\"

    I'm not fucking kidding. "This is not like a tourist thing where 'it's Halloween " and dress up like a Japanese Geisha". She thinks Kourtney is trying too hard to stay fashionable but wants to her to more "cool" about it.
  • Trump welcomes Kanye West to the Oval Office

    Trump welcomes Kanye West to the Oval Office

    In a almost 10-minute long speech in the Oval Office, West says he was pressured not to wear his red "Make America Great Again". Capehart also indicated that the president's rhetoric had poisoned whatever good employment news he had to offer.
    Paul Casey's highlights | Round 1 | CIMB 2018 2018

    Paul Casey's highlights | Round 1 | CIMB 2018 2018

    Sharma, a two-time Asian Tour victor , now leads the Habitat for Humanity Standings with a season's haul of $608,494. I think I've done that in the past month. "Not having my best stuff and getting around here in 6-under is huge".
    Channing Tatum Is Dating Jessie J After Jenna Dewan Split

    Channing Tatum Is Dating Jessie J After Jenna Dewan Split

    When someone asked for more info on the date, he replied: "They were hella nice". Another source told the out "it's new, casual and they're having fun together".
  • Users, shutting down social network

    Users, shutting down social network

    Google is also following from its limiting of Gmail scans by limiting which applications - namely, down to email apps - can do so. Google said it would continue to offer private Google +-powered networks for businesses now using the software.
    Microsoft open-sources 60,000 patents to help Linux avoid lawsuits

    Microsoft open-sources 60,000 patents to help Linux avoid lawsuits

    As well, the community has worked over time to acquire patents directly beneficial to protecting the open source community. It's also worth noting that the members of OIN can cross-license their patents to other members.

    Selena Gomez is Seeking Treatment at Mental Health Facility

    She apparently was despondent and emotional over an alarmingly low white blood cell count in the wake of her kidney transplant. As of now, Selena is currently at an East Coast psychiatric facility and is receiving dialectical behavior therapy, aka DBT.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.