Global stocks tumble after Trump 'crazy' Fed comment

Global stocks tumble after Trump 'crazy' Fed comment

Asian markets plunged on Thursday following the worst session on Wall Street for months, as US President Donald Trump said the Federal Reserve had "gone crazy" with plans for higher interest rates.

"I don't like it", Trump said Tuesday at the White House, referring to the Fed's rate hikes, the most recent of which was September 26. "They're so tight. I think the Fed has gone insane". A stock market correction is defined as a decline of at least 10 percent from the high point of the past 52 weeks, suggesting that major US indices have further to fall.

"I think. the Fed is making a mistake".

And while stocks could get a boost from strong corporate earnings, there are concerns the U.S. trade conflicts will start to undermine profits. "I think we don't have to go as fast".

The broad US stock market sell-off Wednesday took the S&P 500 to the lowest in three months, the Dow Jones Industrial Average plunged as much as 836 points and the Nasdaq 100 Index tumbled more than 4 percent for its worst day in seven years.

The 10-year yield is now 3.20 percent, the highest in than seven years and up sharply form 2.82 percent in late August. Officials expect to hike rates another quarter percentage-point by the end of this year and gradually continue to raise rates at least through 2019. "It's all about investors rethinking their exposure to stocks".

The markets have been on a historic climb - with the Dow and S&P each notching dozens of new highs since 2016 - buoyed by a strong US economy and solid corporate earnings. The criticism is also unusual given that Jerome Powell, the Fed chairman, was appointed by Mr...

The US slump, which amounted to a market value loss of over £800bn, had followed falls across much of Europe.

Stocks have been under pressure since the yield on 10-year US Treasury bonds jumped above 3% last week, a sudden move that raised fears of an overheating economy, speeding inflation and more aggressive Federal Reserve interest rate increases.

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.

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 Nasdaq fell 315 points, or 4.1 percent, to 7,422.

Bourses in Paris and Frankfurt both lost more than two percent, while London fell 1.3 percent. Tiffany plunged 10.2 percent to $110.38 and Ralph Lauren fell 8.4 percent to $116.96.

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