'The Fed has gone crazy': Trump points finger for Wall Street tumble

The Dow Jones Industrial Average plummeted 832 points on Wednesday, recording its largest single-day point drop since February. "They're so tight." He noted of today's market, "It's a correction that we've been waiting for, for a long time". "But I really disagree with what the Fed is doing, OK?"

Trump has often pointed to stock market records set during his time in office as a measure of his success.

They include the United States trade war with China and the 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.

"I believe this selling is an overdone panic", Feinseth said.

The turmoil came a day after the International Monetary Fund slashed its global growth forecast on worries about trade wars and weakness in emerging markets. The IMF projections don't take into account Trump's threat to expand the tariffs to effectively all of the more than $500 billion in goods the USA bought from China previous year. By convention presidents rarely comment on central bank policy because the Fed is meant to be independent of politics. President Trump blamed the Federal Reserve - and his appointee Jerome H. Powell - for the big drop Wednesday.

Fed spokeswoman Michelle Smith declined to comment on Trump's remarks.

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Dow Jones Industrial Average plummets 831 points on Wednesday trading
Facebook fell 4.1 percent while Netflix and Google parent Alphabet were down 8.4 percent and 5.1 percent, respectively. The CAC 40 in France dropped 2.1 percent, Germany's DAX lost 2.2 percent and the FTSE 100 in London fell 1.3 percent.

Powell's goal is to extend the second-longest USA 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.

In fact it is his policies that are behind the changes: tax cuts and spending policies are expected to juice the economy, adding to the Fed's justification to raise interest rates, while trade conflicts raise costs for companies, which could hit the bottom line in quarterly earnings - something analysts said helped prompt Wednesday's sell-off.

White House Press Secretary Sarah Sanders said in a statement following the close of markets that the US economy is "incredibly strong" despite the selloff, which analysts attributed in part to trade tensions with China.

The markets have been on a historic climb - with the Dow and S&P each notching dozens of new highs since 2016 - buoyed by a strong USA economy and solid corporate earnings.

President Trump, who has claimed much of the credit for the strong economy, has criticized the Fed's pace of raising interest rates, saying going too fast could slow growth and job creation.

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