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

I don't like Fed raising interest rates so quickly, says Trump

President Donald 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.

United States shares suffered a broad-based selloff that slashed more than three percent from major indices. "So you can say that well that's a lot of safety actually, and it is a lot of safety, and it gives you a lot of margins, but I think the Fed has gone insane". "They're so tight. I think the Fed has gone insane", Mr. Trump told reporters after landing in Erie, Pa., for a political rally.

Trump has repeatedly touted Wall Street records as proof of the success of his economic program, including his confrontational trade strategy.

After a long stretch of relative calm, the stock market has suffered sharp losses over the last week as bond yields surged. "I just don't think it's necessary to go as fast".

Higher interest rates tend to moderate economic growth and makes borrowing more expensive for the US government as well as businesses and consumers.

The rout in USA shares followed substantial losses on European bourses, due in part to tensions between Brussels and Rome over Italian budget plans that have revived fears about the eurozone.

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.

Numerous biggest United States names fell hard, with Apple, Boeing and Facebook all slumping more than four percent and Amazon, Nike and Microsoft dumping more than five percent.

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On Wednesday, the Dow fell 831 points, or 3.1 percent, to 25,598. The Dow Jones Industrial average fell 3.15 percent; the tech-heavy Nasdaq index dropped 4.08 percent.

"The selling is not panicking but it's persistent", Briefing.com analyst Patrick O'Hare said of the proceedings. Many observers expected that would trigger a sell-off in the stock market as investors flooded their cash into Treasurys.

There are a slew of worries for investors which have been building in recent weeks.

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.

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 US economy and solid corporate earnings.

Ivan Feinseth, Chief Investment Officer at Tigress Financial Partners, said that although the sell-off caught him off-guard, he thought many investors were unduly frightened by the prospect of rising rates.

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.

Bourses in Paris and Frankfurt both lost more than two%, while London fell 1.3%.

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