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

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

Dow Jones plunges 800 points as tech stocks tumble

"I don't think it's that at all", he said.

The Federal Reserve can likely stop raising USA interest rates once they reach about 3 per cent, as long as inflation remains around 2 per cent and the economy is doing well, Chicago Federal Reserve President Charles Evans suggested on Wednesday.

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

"I'm not thrilled because we go up", he explained, "and every time we go up they want to raise rates again, and I don't really - I am not happy about it, but at the same time I'm letting them do what they feel is best".

The central bank's preferred measure of inflation is roughly at policy makers' 2 percent objective, and Powell said last week that "the outlook of forecasters inside and outside the Fed is for more of the same".

Trump's comments echo his previous criticisms of recent months, which broke more than two decades of White House tradition of avoiding comments on monetary policy out of respect for the independence of the US central bank. The Fed's main interest rate, the federal funds rate, now stands between 2 and 2.25 per cent.

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A spike in Treasury yields and solid U.S. economic data have sparked concerns that the Federal Reserve may pick up the pace of its interest rate hikes.

"It seems like the Fed is continuing on the course that markets expect, to raise interest rates given the tight labour market", said Phillip Swagel, who was a top Treasury official during the George W. Bush administration.

The International Monetary Fund chief Christine Lagarde said on Thursday that she "would not associate" US Federal Reserve Chairman Jerome Powell "with craziness". "The fundamentals and future of the US 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.

Some of his former advisers said they believed Trump's criticisms of the central bank were warranted. "No, I think the Fed is making a mistake". "Where is the inflation that they are fighting?"

And while stocks could get a boost from strong corporate earnings, there are concerns the United States trade conflicts will start to undermine profits. Economic growth has improved, and Republicans have taken steps to cut taxes and regulations. "It is doing well", Trump said. Economic experts are split on how long the strong economy will continue, and some investors are convinced that a number of stocks - particularly technology companies - are overpriced and were due for a slide.

Central bankers from around the world jumped to the U.S. Federal Reserve's defense after President Donald Trump accused the central bank of going "loco".

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