Trump calls stock sell-off 'a correction,' says Federal Reserve is 'crazy'

11 October, 2018, 10:04 | Author: Regina Silva
  • President Trump speaks to reporters while departing for travel to Iowa from the White House in Washington

On Wednesday US President Donald Trump lambasted the US Federal Reserve once again, complaining that the Fed has gone "crazy", but the president also reversed tack and called the current stock market sell-off a "correction", one that the administration has been "waiting for". "No, I think the Fed is making a mistake".

Ahead of a campaign rally for the U.S. mid-term elections, Trump told reporters: "I think the Fed is making a mistake". A stock market correction is defined as a fall of at least 10 per cent from the high point of the last 52 weeks. "The Fed has gone insane", Trump said. USA consumer price inflation is now above 2 percent annually and the unemployment rate is the lowest in about 40 years.

Wall Street extended its losses Wednesday afternoon as markets continued to skid, with the Nasdaq leading the losses.

White House Press Secretary Sarah Huckabee Sanders said in a statement following the close of markets that the US economy is "incredibly strong" despite the sell-off.

As Hurricane Michael pummeled Florida, Wall Street was battered by storms as well, with the Dow shedding about 830 points, in the biggest fall since February, to close the day at 25,498.74.

"The selling is not panicking but it's persistent", Briefing.com analyst Patrick O'Hare said of the proceedings.

FortisBC asks customers across province to reduce gas use after pipeline rupture
Tostenson noted that most commercial kitchens use natural gas, and 58 per cent of the fuel is used in food preparation. The company will update its customers as soon as it is in a position to offer something new, said Stout.


U.S. Stocks Fall Sharply, Tech Sector Leads Declines
The move particularly affects high-growth tech companies which have been a source of huge returns in recent months. She said they also fear that company profit margins will be squeezed by rising costs, including the price of oil.


Melania Trump Wants #MeToo Accusers to Show "Hard Evidence"
President Trump is pushing the conspiracy theory that Kavanaugh protesters were paid actors, financed by George Soros. The special is called "Being Melania - The First Lady". "And also, you know, also men".


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 programmes.

President Trump, who has claimed much of the credit for the strong economy, has criticized the Fed's pace of raising interest rates, saying going too fast could slow growth and job creation.

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 sell-off came a day after the International Monetary Fund said the world economy is plateauing and cut its growth forecast for the first time in more than two years, blaming escalating trade tensions and stresses in emerging markets. The Dow lost more than 550 points in afternoon trading. In Paris, shares in Kering fell almost 10 percent, LVMH over seven percent and Hermes around five percent.

In other markets, oil prices fell sharply on worries that Hurricane Michael, which is battering the U.S. state of Florida, will dent demand for gasoline and other petroleum products.

Recommended:



Popular

China Trade War to Hurt Global Economic Growth
The report said that aggregate growth in the emerging market and developing economy group stabilised in the first half of 2018. Further threats to global economy include "unsettled" politics and the escalating trade tensions between the USA and China.

Google pulls out of competition for $10B Pentagon cloud contract
JEDI is the Pentagon's attempt to create a common cloud infrastructure and platform capable of supporting its 3.4 million users. Among the guidelines: Google won't create AI for weapons, but it will still work with the military.

For Kavanaugh, a collegial start to U.S. Supreme Court career
Garland had been nominated to the Supreme Court by President Barack Obama , but Senate Republicans never acted on the nomination. Lisa Murkowski of Alaska despite her opposition to Brett Kavanaugh's Supreme Court nomination.

Sears On Brink Of Bankruptcy, Report Says
Lampert's hedge fund, ESL Investments, offered to buy Kenmore and certain other assets earlier this year. Sears and Kmart had 89,000 employees as of February 3 of this year, according to a company filing.

Golf, keys and dodge ball! New games arrive for Nintendo Entertainment System
Once people beat the game one time, a more hard version called Second Quest unlocks. " Solomon's Key " is a puzzle game released by Tecmo in 1986.

William and Kate to attend mental health summit
The Duke and Duchess had a chance to speak to young delegates at the summit about the challenges and issues they face. William and Kate have always been involved in mental health initiatives through their Heads Together campaign.

Google Chromecast Gets an Upgrade, Google Home Support
The Slate has a custom "molecular display ", which is an LCD with a resolution of 3000 x 2000 and 400 nits of brightness. Broad carrier availability: The Samsung Galaxy Note 9 is available on all USA wireless carriers and various retailers.

Lady Gaga mental health essay calls for funding and awareness
One such discussion was held on Twitter earlier this year during May, which is considered as Mental Health Month. This plea was made on Wednesday at the commemoration of the World Mental Health Day .

30-year-old doorstop turns out to be a rare meteorite
A man in MI will soon be richer by thousands of dollars - thanks to a meteorite he had been using as a doorstop for 30 years. The estimated $US100,000 ($141,700) price tag puts the MI man's 10kg rock at $US10 ($14) per gram.

DUP may vote against budget if red lines are breached
But the DUP could abandon this deal if Brexit means new barriers between Northern Ireland and Great Britain, Newsnight's Nick Watt said.