Trump says Fed ‘making a big mistake’ by being too aggressive

US stocks have plunged to their worst loss in eight months

The Federal Reserve has been gradually raising interest rates to less stimulative levels in response to strong growth in the US economy and historically low unemployment levels. That is a good thing.

Earlier in the day, Trump told the Fox & Friends television broadcast that the central bank was "making a big mistake".

The Fed last raised interest rates in September and left intact its plans to steadily tighten monetary policy, as it forecast that the United States economy would enjoy at least three more years of economic growth.

"My assumption for the policy rate is that we can achieve our objective of keeping inflation to the 2 percent symmetric objective and the unemployment rate slowly rising back towards its sustainable rate with that stance of funds rate - but if we need more, we'll do more", he said. "But I really disagree with what the Fed is doing, okay?"

As well as criticising the Fed, Mr Trump said his trade policies had hurt China's economy.

Trump had blamed "crazy" Fed policies for contributing to current financial market turmoil as a global sell-off continued amid stronger signs of rising financial volatility which the International Monetary Fund and the World Bank were scheduled to address during their annual meetings.

Trump, who departed for Erie just before markets closed on Wednesday, was briefed by officials about the sell-off.

In a sign of how much animosity Trump now holds toward the central bank, Moore said he believes Trump regrets appointing Powell to the position.

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Trump began imposing tariffs on hundreds of billions of dollars worth of Chinese imports in January 2018, with Beijing retaliating by slapping tariffs on USA goods in response.

Trump said Tuesday that the economy is enjoying "record-setting" numbers and "I don't want to slow it down even a little bit, especially when we don't have the problem of inflation".

White House economic adviser Larry Kudlow on Thursday said Trump's opinions had no weight on the Fed's actions.

The Federal Reserve sets baseline interest rates for lending standards, which can have a massive effect on whether businesses expand or contract.

The gradually rising rates, Fed officials say, are meant to guard against any quick run-up in inflation, while remaining low enough so far for the recovery and a strong run of job growth to continue.

"It's had a big impact", Trump said in a Fox News interview.

Stocks have been under pressure since the yield on 10-year US Treasury bonds jumped above three percent last week, a sudden move that raised fears of an overheating economy, speeding inflation and more aggressive Federal Reserve rate hikes.

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