Markets

"Going loco" Federal Reserve threatens to bring Trump's bull market crashing down

Trump said the Fed had "gone crazy" and was being "too aggressive in raising rates", blaming the institution for the market declines that saw the benchmark Dow Jones Industrial Average lose almost 1,400 points in two days. "No, I think the Fed is making a mistake". But he downplayed the first major drop in months, saying it was a "correction that we've been waiting for".

But Trump now sees the Fed's gradual return of rates to normal levels as disrupting the stock market and an economic boom he argues would otherwise endure for many years. As big United States companies give updates in the coming weeks on how much they earned during the summer, investors will listen as CEOs say how much of an impact they're seeing from higher rates.

Mr. Williams nodded toward some of the worldwide concerns about the spillover effects of Fed rate rises by noting that the central bank has a domestic mandate, while adding it does very much take on board how its policies affect other nations.

Trump's public criticism of the Federal Reserve, whose chairman, Jerome Powell, Trump appointed, is a sharp departure from his recent predecessors.

"That wasn't it", Trump said this week in response to the China theory for the market drop.

"It's all about investors rethinking their exposure to stocks."Many of the biggest USA names fell hard in Wednesday's session, with Apple, Boeing and Facebook all slumping more than four percent and Amazon, Nike and Microsoft shedding more than five percent".

For much of the last couple of years, short-term interest rates, which the Fed controls directly, have risen much faster than longer-term rates, which are set based on global supply and demand for bonds. But the effects of changes in interest rates are not immediate and take time to ripple through the broader economy.

Timberwolves players growing exhausted of Jimmy Butler rumors during training camp
Some in league circles have strongly suggested the drama between Butler and Towns was real and centered on a woman. Coaches and players were largely speechless at Butler's tour de force throughout the workout, league sources said.

In a brief interaction with reporters and later in comments to Fox News, Trump said the USA central bank was "too aggressive" in raising interest rates. "But I really disagree with what the Fed is doing, okay?"

At least that's the diagnosis U.S. President Donald Trump offered this week, by way of explaining a stock market plunge that shaved more than three per cent from the Dow Jones Industrial Average on Wednesday. "The Fed is going wild".

Trump has been publicly criticising the Fed - led by chairman Powell, whom he appointed - since July for interest-rate increases and declared he was "not happy" in September after the third rate hike of the year.

In the face of the repeated attacks, Mr Powell said central bankers did not pay attention and are "quite removed from the political process". The 10-year rate was below 1.4 percent as recently as July 2016. For almost a decade after the 2008 financial crisis, the Federal Reserve's policy of low interest rates kept bond yields low, which hurt savers and those looking to diversify their portfolio.

No final decision has been made whether US President Donald Trump and Chinese President Xi Jinping will meet at the gathering of G20 leaders in Buenos Aires, Argentina at the end of November, US Treasury Secretary Steven Mnuchin said on Saturday.

The president's remarks were quickly qualified by National Economic Council Director Larry Kudlow, who said the Fed was "on target" in policies that were responding to a strong economy.

And while stocks could get a boost from strong corporate earnings, there are concerns the U.S. trade conflicts will start to undermine profits.


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