Trump Criticizes Central Bank for Raising Rates

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President Trump placed the blame on the Federal Reserve's interest rate hikes for driving a selloff in the stock market Wednesday, saying the central bank "has gone insane".

"The Fed is making a mistake", he told reporters on Wednesday as he arrived in Pennsylvania for a campaign rally.

He adds, "I think the Fed has gone insane".

"It's a correction that we've been waiting for for a long time", Trump said.

He has frequently criticised the USA central bank for gradually raising interest rates, and on Wednesday reiterated his position: "I really disagree with what the Fed is doing".

The US stock market sell-off last night saw the S&P 500 and the Dow marking their biggest daily declines since February 8 with technology stocks at the centre of the falls.

Last week's jump in yields followed strong U.S. data but many analysts have been anticipating dynamics in the bond market to change due to expectations that central banks in Europe and Japan will soon phase out bond-buying programs.

Those financial crisis-inspired programmes - such as quantitative easing - are now ending and the Fed has raised U.S. interest rates three times already this year - raising borrowing costs - and could add a fourth hike by the end of 2018.

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

The benchmark Nikkei 225 dropped almost two percent at the open and extended losses to below the three-percent mark, as traders fretted about surging interest rates and an ongoing trade spat.

Shares on London's FTSE 100 index were down 1.4% in opening trade, while the Frankfurt DAX dropped 1.3% and the Paris CAC shed 1.5%. As stocks go down, tech goes down more than the stock market, ' she said.

One reason why the Fed has been raising interest rates even with little sign of an inflation breakout is because the unemployment rate, which fell to 3.7 percent in September, is at a level that many officials expect will cause wage and price gains to accelerate over time. Many observers expected that would trigger a sell-off in the stock market as investors flooded their cash into Treasurys.

The markets suffered steep losses Wednesday.

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 came a day after the International Monetary Fund slashed its global growth forecast on worries about trade wars and weakness in emerging markets. The Nasdaq fell 315 points, or 4.1 percent, to 7,422.

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