President Donald Trump slammed the Federal Reserve as "crazy" for its interest-rate increases this year in comments hours after the worst USA stock market sell-off since February. He has repeatedly criticized the central bank for raising interest rates this year, decisions aimed at preventing the economy from overheating.
During a rally in Pennsylvania on Wednesday night, Trump said he didn't believe the Fed was accurately adjusting its interest rate policy in line with USA economic data.
"The Fed is out of control", Trump said.
However, asked about Powell's future, Trump said, "I'm not going to fire him". They have reached out to the Fed leader to ensure there hasn't been improper political interference. The 10 year U.S. Treasury, a key benchmark for rates, has been spiking and is now at 3.2 percent, one of its highest levels since just after the Great Recession.
The declines come on the heels of an eye-watering Wednesday session that saw the Dow plunge 831.83 points or 3.2 per cent, to 25,598.74.
The rout caused a domino effect worldwide, with losses spreading to Asia and Europe as investors remained concerned about rising rates - which would send more buyers out of equities and into bonds - as well as the impact of Trump's trade conflict with China on corporate profits.
Numerous biggest U.S. 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.
The S&P 500 index sank 94.66 points, or 3.3 per cent, to 2,785.68.More news: Cyclone weakens; nine dead in Andhra Pradesh, Odisha
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Trump previously criticized the Fed for allowing too much money into the economy in several tweets from 2011, before he became the president.
"The Fed has an independence that it needs to pursue, it's concerned about inflation - and right now we have tariffs, which are wreaking havoc, we're not sure to what extent, and an exploding deficit ..."
Trump himself later told reporters he would not try to oust Powell, Trump's handpicked successor to former Fed chair Janet Yellen, and a well-regarded insider in moderate Republican circles. "He didn't say anything remotely like that", he said on CNBC. Evans said he wasn't aware of "anything happening in the last couple of weeks that alter my basic take that financial stability conditions are reasonably moderate, and that we're in reasonable shape at the moment".
"We have interest rates going up at a clip that's much faster than certainly a lot of people, including myself, would have anticipated". Nifty fell below 10,200 mark losing 2.69 per cent in the opening trade.
U.S. presidents have rarely criticised the Fed in recent decades because its independence has been seen as important for economic stability.
Powell has brushed off the comments, saying officials do not pay attention to politics. "It is doing well", Trump said.
At the meetings in Bali, IMF managing director Christine Lagarde said she "would not associate" Jerome Powell "with craziness".
Raising interest rates was justified "for those economies that are showing much improved growth, inflation that is picking up... unemployment that is extremely low", Lagarde told a press briefing in Bali, Indonesia where the International Monetary Fund is holding its annual meeting.