Donald Trump blames 'crazy' Fed for major stock market drop

USA TODAY

Published 6:12 PM EDT Oct 10, 2018

Donald Trump blames 'crazy' Fed for major stock market drop

WASHINGTON – President Donald Trump blamed the central bank for a stock market selloff Wednesday that was among the worst of his presidency. 

"The Fed has gone crazy,” Trump told reporters in Pennsylvania, where he is holding a campaign rally.  

“No, I think the Fed is making a mistake," Trump said. "They’re so tight.”

The Dow fell more than 800 points Wednesday, the worst single-day decline since a 1,000-point drop on Feb. 8.

Trump frequently touts growth in the stock market as a measure of the economy. But as markets tumbled, the White House embraced a broader view of growth.  

More: Dow drops 800 points as stock market investors fear higher rates

“The fundamentals and future of the U.S. economy remain incredibly strong," White House press secretary Sarah Sanders said in a statement. "President Trump’s economic policies are the reasons for these historic successes and they have created a solid base for continued growth.”

The Federal Reserve has raised interest rates relatively slowly over the past year as the economy has picked up, an effort intended to head off inflation. The Fed increased its benchmark interest rate a quarter-point in September.

More: Fed raises rate to range of 2% to 2.25%, keeps forecast for 4 hikes in 2018

Trump has repeatedly criticized the Federal Reserve, including earlier this week. The president said he believed that inflation was already in check.

“I like to see low interest rates,” Trump said. “The Fed is doing what they think is necessary, but I don’t like what they're doing.” 

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