President Donald Trump says the Federal Reserve "has gone crazy" after a major drop in stock prices Wednesday.
"A lot of people were concerned when the QEs were done whether the Fed would ever be able to downsize and I think the market has handled the supply very well, ' Mnuchin said. They're so tight. I think the Fed has gone insane", Trump told reporters on his way to a rally in Pennsylvania.
A stock market correction is defined as a decline of at least 10% from the high point of the past 52 weeks, suggesting that major United States indices have further to fall.
He has frequently criticized the United States central bank for gradually raising interest rates, and on Wednesday reiterated his position: "I really disagree with what the Fed is doing".
A spike in Treasury yields and solid US economic data have sparked concerns that the Federal Reserve may pick up the pace of its interest rate hikes.
Trump has previously voiced his displeasure with the Fed's rate hikes, saying he would rather shift his focus to the continued growth of the US economy and creating more jobs.
The benchmark Nikkei 225, the Hang Seng in Hong Kong and the Shanghai Composite all plummeted more than three% in early morning trade, as investors fretted about surging interest rates and an ongoing trade war.
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"Clearly stocks are spooked by higher rates and maybe some inflation that seems to be creeping in", said Michael Farr, CEO of Farr, Miller & Washington. The Fed has predicted that unemployment will remain below 4 percent through 2020 and inflation is expected to track around 2 percent, conditions that Federal Reserve chief Jerome H. Powell called "remarkably positive".
Larry Benedict, founder of the Opportunistic Trader, said that even while some of the largest names in tech - including Netflix, Amazon, Google and Facebook - saw some of the steepest dips, they are all up significantly for the year. An additional 1.5-percentage-point fall would confirm a correction for that index.
Economists generally agree that in order to prevent runaway inflation, the Federal Reserve can raise interest rates to restrain the money supply.
Adams said investors have concerns about their future profitability, too, making technology stocks more volatile in the last few months.
Wall Street extended its losses Wednesday afternoon as markets continued to skid, with the Nasdaq leading the losses.
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.